This bill strengthens oversight of the Small Business Administration's 504 loan program, which provides financing to small businesses for real estate and equipment purchases. The legislation enhances the Office of Credit Risk Management by giving it expanded authority to supervise certified development companies that issue these loans, including conducting file reviews, issuing enforcement actions, and collecting fees to support examinations. The bill requires the SBA to complete loan file reviews and report findings within specific timeframes, allows civil penalties of up to $250,000 for violations, and permits the Office to charge certified development companies fees starting one year after enactment based on their portfolio size. Additionally, the bill requires the SBA to issue rules within 180 days clarifying how certified development companies must comply with environmental requirements under federal law. The legislation affects certified development companies, lenders, and small business borrowers who rely on the 504 program for financing.
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