7(a) Loan Agent Oversight Act

This bill adds oversight for people who help small businesses get SBA 7(a) loans. It requires a yearly report to Congress with key facts: how many and what types of these agents there are, how many fraud cases involved them, how often the SBA buys these loans, and how much in referral fees they were paid. It also calls for an analysis of interest rates on loans that used an agent and explains how the SBA communicates with agents. The report must review risk from the small group of agents who account for at least 1% of loan dollars or loan counts, without naming individuals. These agents are people who help fill out applications or provide consulting, broker, or referral services for 7(a) loans, on behalf of a lender or an applicant. The 7(a) program is the SBA’s main loan program for small businesses that can’t get reasonable credit elsewhere.

Key points

• Who is affected: Small Business Administration, 7(a) loan agents, small business borrowers, and lenders.
• What changes: A required annual report on agent numbers and types, fraud cases, SBA loan purchase rates, referral fees, interest rates, communication practices, and a risk review of high-volume agents (without naming them).
• When: Every year, through an annual report to Congress.