A bill authored by U.S. Representative Dan Meuser aimed at improving accountability and addressing fraud within the Small Business Administration’s 7(a) Loan Program has been approved by the U.S. House of Representatives.
The legislation, known as the 7(a) Loan Agent Oversight Act (H.R. 1804), mandates that the Office of Credit Risk Management submit an annual report to Congress detailing the performance and risks associated with loans facilitated through loan agent activities.
“Access to capital remains one of the greatest barriers to growth for entrepreneurs, and the SBA’s 7(a) Loan Program must be efficient, stable, and well-managed,” stated Meuser. He further noted concerns raised by the SBA’s Office of Inspector General regarding a need for stronger oversight due to increasing fraud risks, citing over $335 million in documented loan agent fraud.
