Small Business 7(a) Loan Agent Transparency Act

IB Union Calendar No. 77 118TH CONGRESS 1ST SESSION H. R. 1651 [Report No. 118–100] To amend the Small Business Act to establish requirements for 7(a) agents, and for other purposes. IN THE HOUSE OF REPRESENTATIVES MARCH 17, 2023 Mr. PHILLIPS (for himself and Mr. MEUSER) introduced the following bill; which was referred to the Committee on Small Business JUNE 5, 2023 Reported from the Committee on Small Business; committed to the Committee of the Whole House on the State of the Union and ordered to be printed VerDate Sep 11 2014 00:26 Jun 06, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6652 E:\BILLS\H1651.RH H1651 pbinns on DSKJLVW7X2PROD with $$_JOB 2 •HR 1651 RH A BILL To amend the Small Business Act to establish requirements for 7(a) agents, and for other purposes. VerDate Sep 11 2014 00:26 Jun 06, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6652 E:\BILLS\H1651.RH H1651 pbinns on DSKJLVW7X2PROD with $$_JOB 3 •HR 1651 RH Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Small Business 7(a) 4 Loan Agent Transparency Act’’. 5 SEC. 2. REQUIREMENTS FOR 7(a) AGENTS. 6 (a) OFFICE OF CREDIT RISK MANAGEMENT DU- 7 TIES.—Section 47(b) of the Small Business Act (15 8 U.S.C. 657t(b)) is amended— 9 (1) in paragraph (2), by striking ‘‘and’’ at the 10 end; 11 (2) in paragraph (3), by striking the period and 12 inserting a semicolon; and 13 (3) by adding at the end the following new 14 paragraph: 15 ‘‘(4) any 7(a) agent.’’. 16 (b) ENFORCEMENT AUTHORITY.— 17 (1) OFFICE OF CREDIT RISK MANAGEMENT.— 18 Section 47(e) of the Small Business Act (15 U.S.C. 19 657t(e)) is amended by inserting ‘‘or 7(a) agent’’ 20 after ‘‘7(a) lender’’ each place such term appears. 21 (2) LENDER OVERSIGHT COMMITTEE.—Section 22 48(c)(2) of the Small Business Act (15 U.S.C. 23 657u(c)(2)) is amended by striking ‘‘and any Lend- 24 ing Partner or Intermediary participant’’ and insert- 25 VerDate Sep 11 2014 00:26 Jun 06, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1651.RH H1651 pbinns on DSKJLVW7X2PROD with $$_JOB 4 •HR 1651 RH ing ‘‘, any 7(a) agent (as defined in section 47), or 1 any Lending Partner or Intermediary participant’’. 2 (c) REGISTRATION SYSTEM.—Section 47 of the Small 3 Business Act (15 U.S.C. 657t) is amended by adding at 4 the end the following new subsections: 5 ‘‘(j) REGISTRATION SYSTEM FOR 7(a) AGENTS.— 6 ‘‘(1) IN GENERAL.—The Director shall establish 7 a registration system for 7(a) agents that assigns a 8 unique identifier to each 7(a) agent and collects data 9 necessary for the Director to submit the report re- 10 quired under paragraph (4). 11 ‘‘(2) REQUIREMENTS.—A 7(a) agent shall— 12 ‘‘(A) register in the system established 13 under paragraph (1) before providing covered 14 services to a lender or applicant; and 15 ‘‘(B) effective 1 year after the date of the 16 enactment of this subsection, submit an annual 17 fee for such registration to the Director. 18 ‘‘(3) DATABASE.—The Director shall establish 19 and maintain an electronic database of the types of 20 covered services provided by each 7(a) agent. 21 ‘‘(k) DEFINITIONS.—In this section: 22 ‘‘(1) 7(a) AGENT.—The term ‘7(a) agent’ 23 means a person who provides covered services on be- 24 half of a lender or applicant. 25 VerDate Sep 11 2014 00:26 Jun 06, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H1651.RH H1651 pbinns on DSKJLVW7X2PROD with $$_JOB 5 •HR 1651 RH ‘‘(2) COVERED SERVICES.—The term ‘covered 1 services’ means— 2 ‘‘(A) assistance with completing an appli- 3 cation for a loan under section 7(a) (including 4 preparing a business plan, cash flow projec- 5 tions, financial statements, and related docu- 6 ments); or 7 ‘‘(B) consulting, broker, or referral services 8 with respect to a loan under section 7(a).’’. 9 (d) EFFECTIVE DATE.—This Act and the amend- 10 ments made by this Act shall take effect 6 months after 11 the date of the enactment of this Act. 12 VerDate Sep 11 2014 00:26 Jun 06, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H1651.RH H1651 pbinns on DSKJLVW7X2PROD with $$_JOB Union Calendar No. 77 118TH CONGRESS 1ST SESSION H. R. 1651 [Report No. 118–100] A BILL To amend the Small Business Act to establish re- quirements for 7(a) agents, and for other pur- poses. JUNE 5, 2023 Committed to the Committee of the Whole House on the State of the Union and ordered to be printed VerDate Sep 11 2014 00:26 Jun 06, 2023 Jkt 039200 PO 00000 Frm 00006 Fmt 6651 Sfmt 6651 E:\BILLS\H1651.RH H1651 pbinns on DSKJLVW7X2PROD with $$_JOB