House BillHR 5788Civil actions and liabilityGovernment studies and investigations
504 Program Risk Oversight Act
INTRO OCT 17· LAST ACTION JAN 26
READING
4MIN
COSPONSORS
3BIPARTISAN
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
One chamber only
LEGISLATIVE PROGRESS
STEP 4 / 8
Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law
WHAT THE BILL DOES
AI-written
This bill matters because it brings more transparency and accountability to a significant government program that uses taxpayer money. The 504 Program helps thousands of small businesses grow, create jobs, and stimulate local economies by helping them finance major assets like buildings and machinery. By requiring a thorough, regular risk assessment and public reporting, the bill allows Congress and the public to understand how effectively the program is managed and if taxpayer funds are being adequately protected.
If this bill becomes law, we'll get a clearer picture of potential weaknesses or strengths in the 504 loan program. This information can help policymakers make informed decisions to improve the program, ensure its long-term stability, and prevent potential financial losses. Without this law, the detailed, annual, and public risk analysis would not be mandatory, potentially leaving a gap in oversight for a program that guarantees billions in small business loans.
KEY PROVISIONS
5AI-extracted
PROVISION 01
Requires the Small Business Administration (SBA) to conduct a detailed risk analysis of its 504 loan guarantee program annually.
This creates a mandatory yearly review process for a major government loan program.
PROVISION 02
Mandates that the SBA submit a comprehensive report on its risk analysis to Congress every year.
This provides lawmakers with crucial information for oversight and decision-making regarding small business support.
PROVISION 03
Specifies that the risk analysis must break down findings by factors like industry concentration, loan size, age of the business, and type of property.
These specific breakdowns offer granular insights into where risks might be concentrated within the loan portfolio.
PROVISION 04
Requires the SBA to report on the steps it is taking to lessen identified risks.
This ensures the agency is not only identifying problems but also actively working to solve them.
PROVISION 05
Directs the SBA to make the full risk analysis report publicly available on its website.
This increases transparency, allowing taxpayers and the public to see how their money is being managed.
This bill matters because it brings more transparency and accountability to a significant government program that uses taxpayer money. The 504 Program helps thousands of small businesses grow, create jobs, and stimulate local economies by helping them finance major assets like buildings and machinery. By requiring a thorough, regular risk assessment and public reporting, the bill allows Congress and the public to understand how effectively the program is managed and if taxpayer funds are being adequately protected.
If this bill becomes law, we'll get a clearer picture of potential weaknesses or strengths in the 504 loan program. This information can help policymakers make informed decisions to improve the program, ensure its long-term stability, and prevent potential financial losses. Without this law, the detailed, annual, and public risk analysis would not be mandatory, potentially leaving a gap in oversight for a program that guarantees billions in small business loans.
KEY PROVISIONS
AI-extracted
high
Requires the Small Business Administration (SBA) to conduct a detailed risk analysis of its 504 loan guarantee program annually.
This creates a mandatory yearly review process for a major government loan program.
high
Mandates that the SBA submit a comprehensive report on its risk analysis to Congress every year.
This provides lawmakers with crucial information for oversight and decision-making regarding small business support.
med
Specifies that the risk analysis must break down findings by factors like industry concentration, loan size, age of the business, and type of property.
These specific breakdowns offer granular insights into where risks might be concentrated within the loan portfolio.
med
Requires the SBA to report on the steps it is taking to lessen identified risks.
This ensures the agency is not only identifying problems but also actively working to solve them.
high
Directs the SBA to make the full risk analysis report publicly available on its website.
This increases transparency, allowing taxpayers and the public to see how their money is being managed.
Subsequent risk analysis reports submitted to Congress.
Not later than 7 days after submission to Congress
Public availability of the risk analysis report on the SBA website.
GLOSSARY
AI-written
504 Program
A Small Business Administration (SBA) loan program that helps small businesses finance major assets like land, buildings, or large equipment, often with lower down payments and longer repayment terms.
Portfolio Risk Analysis
A detailed review of all the loans in a collection (like all the loans guaranteed by the SBA) to identify potential financial dangers or likelihood of default.
Loan Guarantees
A promise by a third party (in this case, the government through the SBA) to repay a loan if the borrower cannot, reducing the risk for the lender.
Administrator
Refers to the head of the Small Business Administration (SBA), who is responsible for running the agency.
Development Companies
Also known as Certified Development Companies (CDCs), these are non-profit organizations that work with the SBA and private lenders to provide 504 loans to small businesses.
Industry Concentration
The amount of loans or financial exposure an organization has within a specific industry, which can indicate a higher risk if that industry faces economic challenges.
Limited or Special Purpose Property
ACTION TIMELINE
13 EVENTS
JAN 26
Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.
INTROREFERRAL
JAN 20
Mr. Williams (TX) moved to suspend the rules and pass the bill.
FLOOR
JAN 20
Considered under suspension of the rules. (consideration: CR H932-934)
FLOOR
JAN 20
DEBATE - The House proceeded with forty minutes of debate on H.R. 5788.
A property that is uniquely designed for a specific business use and would be difficult to convert to another use without significant cost, like a gas station, hotel, or car wash.
