Loan Agent Transparency Act

Floor Speech

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Mr. MEUSER. Mr. Speaker, I want to thank Ranking Member Luetkemeyer very much, as well as Chairwoman Velazquez, for working on this bill.

Mr. Speaker, I rise in support of H.R. 4481, the Small Business 7(a) Loan Agent Transparency Act, introduced by my colleague, Mr. Phillips of Minnesota.

In fiscal year 2020, the SBA's 7(a) loan program made approximately 42,000 loans, totaling over $22 billion, providing creditworthy small businesses access to capital they could not obtain elsewhere. In some cases, these loans are facilitated by third-party loan agents. These loan agents can be attorneys, accountants, consultants, or others who assist a lender or borrower with their loan.

As recent as last year, the SBA's Office of Inspector General issued reports highlighting the need for the SBA to improve its oversight of loan agents. The SBA's OIG cited at least 22 cases of confirmed loan agent fraud, totaling at least $335 million in taxpayer money.

This bill addresses bipartisan concerns with third-party loan agents involved in the SBA 7(a) loan program by creating a registration system for loan agents that can be used to track and evaluate performance of loans generated by loan agents.

I would like to thank Congressman Phillips for working with me to address the role loan agents play in this program and ensure that both Congress and the SBA remain good stewards of taxpayer dollars.

I look forward to continuing to work in a bipartisan manner to ensure the SBA has the correct procedures in place for the growing number of loan agents within its flagship 7(a) loan program.

I am pleased to be a cosponsor of this legislation, and I urge a ``yes'' vote.

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