This bill strengthens oversight of the Small Business Administration's 504 loan program, which helps small businesses obtain long-term financing for real estate and equipment. The legislation enhances the Office of Credit Risk Management by requiring it to conduct random reviews of loan files, supervise certified development companies (organizations that administer 504 loans), and take enforcement actions against companies that violate rules—including imposing fines up to $250,000 for serious violations. The bill also mandates that the office submit annual reports to Congress analyzing portfolio risks, industry concentrations, and enforcement activities starting December 1, 2025. Additionally, the SBA must issue new rules within 180 days clarifying how development companies should comply with environmental review requirements. The bill authorizes the office to charge development companies fees (up to one basis point of their portfolio value) to cover the costs of these oversight and examination activities, beginning one year after enactment.
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