7(a) Loan Agent Oversight Act

7(a) Loan Agent Oversight Act

This bill requires the Small Business Administration (SBA) to submit an annual report containing specified information related to 7(a) loan agents. These agents provide fee-based referral and loan application services related to the SBA's 7(a) Program. Under the 7(a) Program, the SBA provides loans and loan guarantees to small business borrowers who cannot obtain credit elsewhere on reasonable terms and conditions.

The required report must include (1) the number and type of agents assisting applicants for 7(a) loans, (2) the number of fraudulent loans made for which an applicant used the services of a 7(a) agent, and (3) the number and aggregate dollar value of referral fees paid to 7(a) agents.

Bill 118 hr 1644, also known as the 7(a) Loan Agent Oversight Act, aims to increase oversight and regulation of loan agents who work with the Small Business Administration's 7(a) loan program. The 7(a) loan program provides small businesses with access to financing to help them start, grow, and expand their operations.

The bill requires loan agents to register with the Small Business Administration and comply with certain standards and regulations to ensure they are acting in the best interest of small businesses seeking loans. This includes providing accurate and transparent information to borrowers, disclosing any potential conflicts of interest, and adhering to ethical business practices.

Additionally, the bill establishes penalties for loan agents who engage in fraudulent or deceptive practices, such as charging excessive fees or misrepresenting loan terms. It also requires the Small Business Administration to regularly review and monitor loan agents to ensure compliance with the new regulations. Overall, the 7(a) Loan Agent Oversight Act seeks to protect small businesses from predatory lending practices and ensure that they have access to fair and transparent financing options through the 7(a) loan program.