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Floor Speech

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Mr. MEUSER. Mr. Speaker, I thank our chairman, Chairman Williams, for his continued leadership.

Mr. Speaker, I rise today along with my colleague, Democratic Member Mrs. McIver, in support of my bill, H.R. 1804, the 7(a) Loan Agent Oversight Act, which provides the Small Business Administration with the oversight capabilities to monitor its flagship loan program responsibly. This bipartisan legislation requires the SBA Office of Credit Risk Management to report on fraudulent loans made by a loan agent as well as the overall default rate on loans issued by those agents.

Loan agents are often the middlemen between the SBA, a 7(a) lender, and a small business. This legislation is necessary due to the increased role of loan agents in facilitating 7(a) loans to American small businesses.

The SBA inspector general reported that nearly one out of every seven loans involved a loan agent. Unfortunately, the inspector general also noted that there has been over $335 million in documented loan agent fraud. This, of course, needs to be corrected and changed, Mr. Speaker.

Additionally, my legislation requires the SBA to submit their findings to Congress, which allows us to conduct proper oversight of the 7(a) loan program, ensuring it remains a successful public-private partnership that helps small businesses thrive.

Though Administrator Loeffler is bringing a lot to this office and has reined in the Biden administration's weakening, frankly, of underwriting standards in the 7(a) program, this bill advances good governance policies that will protect taxpayer dollars and uphold the program's record of success well beyond the next 4 years.

Mr. Speaker, I urge the passage of my bill.

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