7(a) Loan Agent Oversight Act

Hozzl · 2023-12-15T15:55:44Z

Explore the details of House Bill 1644 7(a) Loan Agent Oversight Act currently in Congress. Get insights into its purpose, current status, sponsors, and potential impact on Commerce. Stay informed on legislative developments.

12/15/2023, 3:55 PM

Summary of Bill HR 1644

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.

Congressional Summary of HR 1644

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.

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Current Status of Bill HR 1644

Bill HR 1644 is currently in the status of Bill Introduced since March 17, 2023. Bill HR 1644 was introduced during Congress 118 and was introduced to the House on March 17, 2023. Bill HR 1644's most recent activity was Placed on the Union Calendar, Calendar No. 76. as of June 5, 2023