7(a) Loan Agent Oversight Act

What this does

The bill adds a reporting requirement about the agents who help businesses get SBA 7(a) loans. It amends Section 47 of the Small Business Act to require the SBA to submit an annual report to Congress on 7(a) agents. Each report must state the number of 7(a) agents assisting loan applicants, broken down by type of agent, and the number of fraudulent loans made where the applicant used a 7(a) agent. It must state the rate at which the SBA purchased loans where an agent was used, and the number and dollar value of referral fees paid to agents, broken down by whether the applicant or the lender paid. Without naming individual agents, the report must analyze the risk created by agents responsible for at least 1 percent of the dollar value or number of agent-assisted loans. It must also analyze interest rates on agent-assisted loans and describe how the SBA communicates with agents. A 7(a) agent is defined as a person who provides covered services, meaning help completing a 7(a) loan application or consulting, broker, or referral services for such a loan.