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HR1804FEDERALin_committee

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

Original title: 7(a) Loan Agent Oversight Act

March 3, 2025

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Where This Stands

Introduced
Committee
Floor Vote
Passed
Signed

Currently in_committee. The next step in the legislative lifecycle is Floor Vote.

Last action
Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.Jun 4, 2025

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

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The Frame

What this does

This bill mandates new federal reporting on third-party agents who assist small businesses with SBA s, which could lead to future regulatory changes regarding how these agents operate and charge fees.

Who is mentioned in the record

Potentially affected actors named in the source documents. Mention is not a position.

Small Business Administration

The agency is required to compile and submit new annual data regarding 7(a) agents.

7(a) Loan Agents

Their activities, fees, and loan outcomes will be subject to new federal reporting and risk analysis.

Small Business Loan Applicants

Applicants may see changes in how agents operate or how fees are disclosed as a result of increased federal oversight.

What changed

Current stage: in_committee.

What's next

Floor Vote.

Summary

This bill requires the Small Business Administration (SBA) to submit an annual report to Congress detailing the activities, fees, and risks associated with '7(a) agents' who assist small businesses in applying for federal loans. The goal is to increase transparency regarding the role these agents play in the loan process.

Key Facts

  • The bill mandates an annual report to Congress from the SBA regarding 7(a) loan agents.
  • The report must include the total number of 7(a) agents, categorized by type.
  • The report must track the number of fraudulent loans associated with the use of a 7(a) agent.
  • The report must track the 'purchase rate' of loans where an agent was involved.
  • The report must disclose the total number and dollar value of referral fees paid to agents, split by whether the applicant or the lender paid the fee.
  • The report must provide a consolidated risk analysis of agents responsible for at least 1% of the total dollar value or number of agent-assisted loans, without naming specific agents.
  • The report must analyze interest rates on loans involving 7(a) agents.
  • The report must describe how the SBA communicates with 7(a) agents.
  • A '7(a) agent' is defined as a person providing services on behalf of a lender or applicant.
  • 'Covered services' include application assistance (business plans, financial statements) and consulting, brokerage, or referral services.

Frequently Asked Questions

What is a 7(a) agent?
A 7(a) agent is an individual or entity that provides services to a loan applicant or lender, such as helping prepare business plans, financial statements, or providing consulting and referral services for an SBA .
Will this bill identify specific agents who are risky?
No. The bill requires a consolidated risk analysis of agents responsible for a significant portion of loans, but explicitly states that individual agents must not be identified by name.

Why It Matters

This bill mandates new federal reporting on third-party agents who assist small businesses with SBA s, which could lead to future regulatory changes regarding how these agents operate and charge fees.

News Coverage

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Voting Record

Sponsors

Discoveries

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift90% confidence

Increased Focus on Third-Party Risk

The bill signals a shift toward greater federal scrutiny of third-party intermediaries in the SBA loan process, specifically targeting fraud and fee transparency.

Connected Entities

personMrs. McIverU.S. Representative who co-sponsored the billMap →
organizationSmall Business AdministrationThe agency responsible for submitting the mandated annual reportMap →
personDan MeuserU.S. Representative who introduced the billMap →
organizationCommittee on Small BusinessThe House committee to which the bill was referredMap →

Sources

Open source document

www.congress.gov

Analysis Score

0–100
  • Significance45
    How much this matters to a regular citizen
  • Controversy10
    Intensity of disagreement among stakeholders
  • Entertainment5
    Compellingness for a non-policy-wonk reader
  • Buzz15
    Current news / social attention level

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