Bills · S 2659
IN COMMITTEE· 119TH CONGRESS
Senate BillS 2659Environmental assessment, monitoring, researchBusiness records
504 Credit Risk Management Improvement Act of 2025
INTRO AUG 1· LAST ACTION SEP 17
READING
8MIN
COSPONSORS
1
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
- Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8Introduced
In Committee
Reported
Passed Senate
Passed House
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenThis bill matters because it aims to reduce financial risks for taxpayers associated with government-backed small business loans. The 504 loan program provides crucial long-term financing for major assets like real estate and equipment, enabling small businesses to grow and create jobs. However, if these loans are not properly managed or if the companies handling them don't follow the rules, it can lead to defaults and significant financial losses for the Small Business Administration, which are ultimately covered by taxpayers.
By strengthening oversight, clarifying enforcement powers, and requiring annual risk assessments, the bill intends to improve the integrity and financial soundness of the 504 program. If this bill becomes law, it means a more rigorous system for identifying and correcting problems in small business lending, potentially preventing future losses and ensuring the program remains a stable resource for entrepreneurs. If it doesn't pass, the program would continue with existing oversight mechanisms, which supporters of the bill believe are insufficient to effectively address current risks.
KEY PROVISIONS
5AI-extractedPROVISION 01
The Office of Credit Risk Management (OCRM) is made responsible for supervising Certified Development Companies (CDCs) and conducting random file reviews of 504 loan closings.
This centralizes and strengthens oversight of the 504 loan program, aiming to ensure compliance and reduce risk.
PROVISION 02
OCRM can take informal and formal enforcement actions against CDCs for rule violations, including civil monetary penalties up to $250,000 and suspension from the program for up to 30 days for late reports.
This gives OCRM clear tools to address non-compliance and deter risky practices by CDCs.
PROVISION 03
The SBA Administrator must develop a timeline for reviewing CDCs and submitting reports within 90 days, with explanations for any delays.
This ensures timely feedback and accountability in the supervision process of CDCs.
PROVISION 04
The Director of OCRM must annually conduct a portfolio risk analysis of all 504 loans and report the results to Congress every December 1st.
This provides ongoing transparency and helps identify systemic risks within the 504 loan program.
PROVISION 05
The bill requires the Administrator of the Small Business Administration to issue new rules regarding the environmental obligations of Certified Development Companies.
This addresses potential environmental liabilities and ensures CDCs are held accountable for associated risks.
SPONSORSHIP
1 + 1
R· Indiana
YRS IN OFFICE
15
BILLS LED
64
COSPONSOR BREAKDOWNBIPARTISAN · 0%
DEM 1 REP 0 IND 0
ACTION TIMELINE
3 EVENTSSEP 17
Committee on Small Business and Entrepreneurship. Hearings held.
AUG 1
Introduced in Senate
AUG 1
Read twice and referred to the Committee on Small Business and Entrepreneurship.
BILL INFO
TypeSenate Bill
NumberS 2659
Congress119th
StatusIn Committee
IntroducedAug 1, 2025
Last actionSep 17, 2025
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IN COMMITTEE· 119TH CONGRESS · SMALL BUSINESS AND ENTREPRENEURSHIP COMMITTEE · INTRODUCED AUG 1, 2025
Senate BillS 2659Environmental assessment, monitoring, researchBusiness records
504 Credit Risk Management Improvement Act of 2025
INTRODUCED AUG 1, 2025· LAST ACTION SEP 17, 2025
PASSAGE CHANCES
—%
READING
8 min
COSPONSORS
1
COMPLEXITY
Moderate
