House Passes SBA Loan Agent Oversight Act
June 10, 2025
Bob Coleman
Founder & Publisher
SBA Hot Topic Tuesday — House Passes SBA Loan Agent Oversight Act
Last Wednesday, the House overwhelmingly passed legislation on a bipartisan 405-3 vote to enhance transparency of SBA loan agents, addressing concerns about SBA loan fraud.
The bill mandates that the SBA submit an annual report to Congress detailing:
- The number and types of 7(a) agents assisting loan applicants
- Instances of fraudulent loans involving these agents
- The SBA’s loan purchase rates where agents were involved
- Referral fees paid to agents, specifying whether paid by applicants or lenders
- Risk analyses of agents responsible for a significant portion of loan volume
- Interest rates on loans facilitated by agents
- Communication practices between the SBA and 7(a) agents