I
119THCONGRESS
1
STSESSION H. R. 1804
To amend the Small Business Act to require a report on 7(a) agents, and
for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MARCH3, 2025
Mr. M
EUSER(for himself and Mrs. MCIVER) introduced the following bill;
which was referred to the Committee on Small Business
A BILL
To amend the Small Business Act to require a report on
7(a) agents, and for other purposes.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘7(a) Loan Agent Over-4
sight Act’’. 5
SEC. 2. REPORT ON 7(a) AGENTS. 6
Section 47 of the Small Business Act (15 U.S.C. 7
657t) is amended by adding at the end the following new 8
subsection: 9
‘‘(j) A
NNUALREPORT.— 10
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‘‘(1) IN GENERAL.—The Director shall submit 1
to Congress, in addition to the report required under 2
subsection (h)(2), an annual report including, for 3
the calendar year covered by the report— 4
‘‘(A) the number of 7(a) agents assisting 5
applicants for loans under section 7(a), 6
disaggregated by the type of 7(a) agents con-7
sistent with information reported on the Fee 8
Disclosure and Compensation Agreement, or 9
any subsequent agreement forms that collect 10
such information; 11
‘‘(B) the number of fraudulent loans made 12
for which an applicant used services of a 7(a) 13
agent; 14
‘‘(C) the purchase rate by the Adminis-15
trator of loans for which an applicant used 16
services of a 7(a) agent; 17
‘‘(D) the number and aggregate dollar 18
value of referral fees paid to 7(a) agents, 19
disaggregated by whether the applicant or 7(a) 20
lender paid such fees; 21
‘‘(E) without identifying individual 7(a) 22
agents by name, a consolidated analysis of the 23
risk created by the individual 7(a) agents re-24
sponsible for not less than 1 percent of— 25
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‘‘(i) the dollar value of loans made 1
with the assistance of 7(a) agents; and 2
‘‘(ii) the number of loans made with 3
the assistance of 7(a) agents; 4
‘‘(F) an analysis of interest rates on loans 5
for which an applicant or 7(a) lender used serv-6
ices of an agent; and 7
‘‘(G) a description of how the Adminis-8
trator communicates with 7(a) agents. 9
‘‘(2) D
EFINITIONS.—In this subsection: 10
‘‘(A) 7(
A) AGENT.—The term ‘7(a) agent’ 11
means a person who provides covered services 12
on behalf of a lender or applicant. 13
‘‘(B) C
OVERED SERVICES.—The term ‘cov-14
ered services’ means— 15
‘‘(i) assistance with completing an ap-16
plication for a loan under section 7(a) (in-17
cluding preparing a business plan, cash 18
flow projections, financial statements, and 19
related documents); or 20
‘‘(ii) consulting, broker, or referral 21
services with respect to a loan under sec-22
tion 7(a).’’. 23
Æ
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