504 Program Risk Oversight Act

This bill, known as the 504 Program Risk Oversight Act, mandates the Administrator of the Small Business Administration to conduct an annual risk analysis of all loans guaranteed under the 504 program. This comprehensive analysis aims to provide enhanced oversight of the financial health and potential vulnerabilities within this significant small business lending initiative. The Administrator must submit a detailed report of this analysis to Congress annually, starting by December 1, 2025. This report will include analyses of overall program risk, risk by industry concentration, and consolidated risk from major development companies, without identifying them by name. It also requires analysis of loans based on their dollar value, origination date, borrower's business age, and whether they are for limited or special purpose properties, alongside details on risk mitigation steps, loan statistics, defaults, and enforcement actions. To ensure transparency, the Administrator is further required to make the full report publicly available on the Administration's website within seven days of its submission to Congress.