Loan Agent Oversight Act
Floor Speech
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Mr. MEUSER. Mr. Speaker, I rise in support of my bill, H.R. 4531, the 7(a) Loan Agent Oversight Act.
First, I would like to thank Chairwoman Velazquez and Ranking Member Luetkemeyer for advancing this bill to the House floor. I would also like to thank the gentleman from Minnesota (Mr. Phillips) for working together on this important legislation.
The 7(a) loan program is considered the flagship program of the SBA. It is an important tool for helping small firms gain access to capital. Unfortunately, the SBA's Office of Inspector General has highlighted a need for improved oversight of the 7(a) loan agents due to increased risk of fraud associated with these agents.
To ensure that Congress can properly address these issues, we must have the information necessary to determine how to mitigate these risks. Without accurate information, we cannot perform the proper oversight that is needed to safeguard and protect American taxpayer dollars.
My bill will ensure that Congress receives the data it needs to conduct proper oversight of the 7(a) loan program by requiring the SBA to develop and publish an annual portfolio risk analysis for Congress on loan agents that operate within the program. Specifically, the analysis will examine the number of fraudulent loans that are associated with the loan agents as well as the default rate of the loans associated with these agents.
At the end of the day, these are government programs that were developed to assist small businesses in gaining access to capital. Given this important mission, Congress and the SBA must conduct the appropriate level of oversight.
The information that will be provided to Congress under H.R. 4531 will be paramount as we measure the effectiveness of these programs and whether the SBA has the correct oversight requirements in place to administer such a significant program.
For that reason, I urge my colleagues to support H.R. 4531, the 7(a) Loan Agent Oversight Act.
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