This bill amends section 47 of the Small Business Act to require the Director to submit an annual report to Congress about 7(a) agents. The report must include: the number of 7(a) agents helping applicants, broken down by agent type reported on the Fee Disclosure and Compensation Agreement; the number of fraudulent loans where an applicant used a 7(a) agent; the Administrator's purchase rate for loans involving a 7(a) agent; the number and total dollar value of referral fees paid to 7(a) agents, showing whether the applicant or the lender paid them; a consolidated analysis of risk from individual 7(a) agents responsible for at least 1 percent of loan dollar value or loan count (without naming agents); an analysis of interest rates on loans that used an agent; and a description of how the Administrator communicates with 7(a) agents. The bill also defines "7(a) agent" as a person who provides covered services on behalf of a lender or applicant, and defines "covered services" to include helping complete a 7(a) loan application (such as preparing a business plan, cash flow projections, and financial statements) and consulting, broker, or referral services.
If you are a borrower, a lender, or someone who helps with 7(a) loan applications, the Small Business Administration will be required to report detailed annual data to Congress about those agents, fees paid, fraud counts, and certain risk and interest-rate information. The report is meant to give Congress more information about how agents are used in the 7(a) program.
No publicly available information on costs, budget offsets, or funding is included in the bill text.
No publicly available information on proponents' statements or arguments is included in the bill text.
No publicly available information on opponents' statements or arguments is included in the bill text.