Sponsor
Nydia M. Velázquez
Representative · D-NY
Representative · D-NY
The bill increases transparency and oversight of SBA 7(a) loan performance—helping regulators, taxpayers, and borrowers make better-informed choices—at the cost of higher compliance burdens and potential privacy and reputational risks for lenders and borrowers.
Financial regulators, the SBA, and lenders will get more detailed 7(a) loan performance and risk data (by loan size, age, and lender type), enabling targeted oversight, faster fraud detection, and better remediation of problem lenders.
Small business owners will have clearer, more granular SBA reporting on loan performance by lender type and loan characteristics, helping them compare lenders and choose safer loan options.
Taxpayers and SBA stakeholders will get faster public access to the SBA annual credit-risk report (published on the SBA website within 7 days of submission to Congress), improving transparency and accountability.
Small business borrowers may have sensitive loan or fraud-related information exposed if the published data are not properly anonymized, creating privacy risks and potential harm to borrowers.
Lenders (and ultimately taxpayers) will face higher compliance and reporting costs to collect, categorize, and publish the more granular data fields, increasing administrative burden and possibly raising fees.
Smaller and non‑federally regulated lenders could face increased scrutiny and reputational harm if public data show comparatively worse outcomes by originator type.
Based on analysis of 2 sections of legislative text.
Requires more detailed SBA 7(a) program risk reporting by loan size, loan age, startup status, and originator type, with additional originator‑level fraud and performance counts and 7‑day public posting.
Official title: To amend the Small Business Act to modify the annual report of the Office of Credit Risk Management, and for other purposes.
Introduced July 14, 2026 by Nydia M. Velázquez · Last progress July 14, 2026
Expands the Small Business Administration’s annual Office of Credit Risk Management report to add detailed risk breakdowns for 7(a) loan guarantees by loan size, loan age, borrower startup status, and type of originating lender. It also requires new data on purchase/collection/charge‑offs, enforcement actions, past‑due and delinquent loans, and loans found to be made fraudulently, and requires the report be posted on the SBA website within seven days of transmittal to Congress. Also makes a minor technical wording change replacing an unspecified word with “premises.” The bill does not create new loan programs or appropriate funds; it updates reporting content and publication timing for oversight purposes.