504 Program Risk Oversight Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5788 Introduced in House (IH)]

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119th CONGRESS
  1st Session
                                H. R. 5788

   To amend title V of the Small Business Investment Act of 1958 to
  require an annual portfolio risk analysis of loans guaranteed under
                  such title, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            October 17, 2025

Mr. Tran (for himself and Mr. Patronis) introduced the following bill;
         which was referred to the Committee on Small Business

_______________________________________________________________________

                                 A BILL

   To amend title V of the Small Business Investment Act of 1958 to
  require an annual portfolio risk analysis of loans guaranteed under
                  such title, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``504 Program Risk Oversight Act''.

SEC. 2. PORTFOLIO RISK ANALYSIS OF LOANS GUARANTEED UNDER THE 504
              PROGRAM.

    Title V of the Small Business Investment Act of 1958 (15 U.S.C. 695
et seq.) is amended by adding at the end the following:

``SEC. 511. PORTFOLIO RISK ANALYSIS.

    ``(a) In General.--The Administrator shall annually conduct a risk
analysis of the portfolio of the Administration with respect to all
loans guaranteed under this title.
    ``(b) Report to Congress.--Not later than December 1, 2025, and
annually thereafter, the Administrator shall submit to Congress a
report containing the results of each portfolio risk analysis conducted
under subsection (a) during the fiscal year preceding the submission of
the report, which shall include--
            ``(1) an analysis of the overall program risk of loans
        guaranteed under this title;
            ``(2) an analysis of the program risk, set forth separately
        by industry concentration;
            ``(3) without identifying individual development companies
        by name, a consolidated analysis of the risk created by
        development companies making loans under this title that are
        responsible for not less than 1 percent of gross loan approvals
        under this title, set forth separately by--
                    ``(A) the dollar value of the loans made by such
                development companies;
                    ``(B) the number of loans made by such development
                companies; and
                    ``(C) an analysis of the program risk for such
                loans with a dollar value--
                            ``(i) less than or equal to $500,000;
                            ``(ii) greater than $500,000 and less than
                        or equal to $1,000,000;
                            ``(iii) greater than $1,000,000 and less
                        than or equal to $2,000,000; and
                            ``(iv) greater than $2,000,000 and less
                        than or equal to $5,500,000;
            ``(4) an analysis of the program risk for loan guarantees
        made under this title for loans that were originated--
                    ``(A) less than one year before the date of
                submission of the report;
                    ``(B) at least one year, but not more than two
                years before such date; and
                    ``(C) more than two years before such date;
            ``(5) an analysis of the program risk for loan guarantees
        made under this title for loans that were originated--
                    ``(A) to a borrower that uses such loan to open a
                business;
                    ``(B) to a borrower not described in subparagraph
                (A) that is a business concern that has been in
                operation for less than or equal to two years before
                the date of origination; and
                    ``(C) to a borrower that is a business concern that
                has been in operation for more than two years on the
                date of origination;
            ``(6) an analysis of the program risk for loan guarantees
        made under this title for loans that were originated for
        limited or special purpose properties;
            ``(7) steps taken by the Administrator to mitigate the
        risks identified in paragraphs (1), (2), (3), (4), (5), and
        (6);
            ``(8) the number of development companies, the number of
        loans made, and the gross dollar amount of the loans made under
        this title;
            ``(9) the number and total dollar amount of purchases by
        the Administrator of the principal and interest of loans
        guaranteed under this title that are in default, the total
        dollar amount of collections recovered on such purchases, and
        the number and total dollar amount of charge-offs for such
        purchases;
            ``(10) the number and type of enforcement actions with
        respect to a loan made by a development company under this
        title recommended by the Administrator; and
            ``(11) the number and dollar amount of any civil monetary
        penalty assessed pursuant to an enforcement action described in
        paragraph (10).
    ``(c) Availability of Report.--The Administrator shall make
available to the public on a website of the Administration the report
required under subsection (b) not later than 7 days after the
Administrator submits such report to Congress.
    ``(d) Limited or Special Purpose Property Defined.--In this
section, the term `limited or special purpose property' has the meaning
given by the Administrator in the guidance titled `Lender and
Development Company Loan Programs' (SOP 50 10 8; as in effect on June
1, 2025).''.
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