119-HR1804

Bill is currently in: Senate
Path to Law
House Senate President

119th CONGRESS

1st Session

H. R. 1804

1. Short title
2. Report on 7(a) agents

1. Short title

This Act may be cited as the "7(a) Loan Agent Oversight Act".

2. Report on 7(a) agents

Section 47 of the Small Business Act (15 U.S.C. 657t) is amended by adding at the end the following new subsection:

(j) Annual report

(1) In general - The Director shall submit to Congress, in addition to the report required under subsection (h)(2), an annual report including, for the calendar year covered by the report—

(A) - the number of 7(a) agents assisting applicants for loans under section 7(a), disaggregated by the type of 7(a) agents consistent with information reported on the Fee Disclosure and Compensation Agreement, or any subsequent agreement forms that collect such information;

(B) - the number of fraudulent loans made for which an applicant used services of a 7(a) agent;

(C) - the purchase rate by the Administrator of loans for which an applicant used services of a 7(a) agent;

(D) - the number and aggregate dollar value of referral fees paid to 7(a) agents, disaggregated by whether the applicant or 7(a) lender paid such fees;

(E) - without identifying individual 7(a) agents by name, a consolidated analysis of the risk created by the individual 7(a) agents responsible for not less than 1 percent of—

(i) - the dollar value of loans made with the assistance of 7(a) agents; and

(ii) - the number of loans made with the assistance of 7(a) agents;

(F) - an analysis of interest rates on loans for which an applicant or 7(a) lender used services of an agent; and

(G) - a description of how the Administrator communicates with 7(a) agents.

(2) Definitions - In this subsection:

(A) 7(a) agent - The term 7(a) agent means a person who provides covered services on behalf of a lender or applicant.

(B) Covered services - The term covered services means—

(i) - assistance with completing an application for a loan under section 7(a) (including preparing a business plan, cash flow projections, financial statements, and related documents); or

(ii) - consulting, broker, or referral services with respect to a loan under section 7(a).