H.R. 1804 — 7(a) Loan Agent Oversight Act

This section requires the Director of the Office of Credit Risk Management to submit an annual report to Congress, in addition to the report required under subsection (h)(2), on 7(a) agents (i.e., persons providing assistance with 7(a) loan applications, such as preparing business plans or providing consulting, broker, or referral services). For the prior calendar year, the report must include (1) the number of 7(a) agents assisting applicants, disaggregated by agent type; (2) the number of fraudulent 7(a) loans involving such agents; (3) the SBA purchase rate of 7(a) loans involving such agents; (4) the number and aggregate dollar value of referral fees paid to such agents, disaggregated by payer; (5) a consolidated risk analysis of individual 7(a) agents responsible for at least 1% of the dollar value or number of loans assisted by agents (without identifying agents by name); (6) an analysis of interest rates on such loans; and (7) a description of SBA communications with 7(a) agents. (As background, the Office of Credit Risk Management oversees SBA 7(a) lenders—participating in the SBA's primary guaranteed loan program for small businesses—and other lending participants.)