Annual Risk Analysis for Small Business Loans

504 Program Risk Oversight Act This bill requires the Small Business Administration (SBA) to annually conduct a risk analysis of all loans guaranteed under the 504 loan program. The 504 loan program provides long-term, fixed-rate financing to qualifying small businesses for major fixed assets, such as land, buildings, equipment, and machinery. The SBA must annually report the results of the risk analysis for each preceding fiscal year, including the steps taken by the SBA to mitigate the risks identified in the analysis.

1. This bill requires an annual risk analysis of loans guaranteed under the Small Business Investment Act. 2. The analysis will assess the overall risk of the loan program and break it down by industry. 3. It will include details about loans from development companies that make a significant number of loans. 4. The bill mandates a public report on the findings to be available within a week of submission to Congress. 5. The report will also cover enforcement actions and penalties related to these loans.

Small business owners and development companies that participate in the loan program will be directly affected.