H.R. 5788, 504 Program Risk Oversight Act — Bill (119th Congress)
- Issuer
- Congressional materials
- Document type
- 407330 2025 11 17 Committee On Small Business Activity The Week Of N Att1
- Date
- 2025-11-17
- Case
- 407330 2025 11 17 Committee On Small Business Activity The Week Of N Att1
Summary
The introduced text of H.R. 5788 in the 119th Congress, the 504 Program Risk Oversight Act, introduced in the House of Representatives on October 17, 2025 by Mr. Tran for himself and Mr. Patronis and referred to the Committee on Small Business. The bill would amend title V of the Small Business Investment Act of 1958 (15 U.S.C. 695 et seq.) by adding a new section 511 requiring the Administrator to conduct an annual risk analysis of all loans guaranteed under that title. It requires an annual report to Congress covering program risk by industry concentration, loan size bands up to $5,500,000, loan age, borrower type, defaults and purchases, enforcement actions and civil monetary penalties. The report is to be posted publicly not later than 7 days after submission.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Cite this document
“H.R. 5788, 504 Program Risk Oversight Act — Bill (119th Congress).”
Dated 2025-11-17. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2025-11-17-407330-2025-11-17-committee-on-small-business-activity-the-week-of-n-att1/
, SHA-256 ea0b29d253f0fcf049aecb15aa5c14815fc88ee7df460b8b3abe06f0a2b698f9.Full text
I
119TH CONGRESS
1ST SESSION
H. R. 5788
To amend title V of the Small Business Investment Act of 1958 to require
an annual portfolio risk analysis of loans guaranteed under such title,
and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 17, 2025
Mr. TRAN (for himself and Mr. PATRONIS) introduced the following bill; which
was referred to the Committee on Small Business
A BILL
To amend title V of the Small Business Investment Act
of 1958 to require an annual portfolio risk analysis of
loans guaranteed under such title, and for other pur-
poses.
1 Be it enacted by the Senate and House of Representa-
2 tives of the United States of America in Congress assembled,
3 SECTION 1. SHORT TITLE.
4 This Act may be cited as the ‘‘504 Program Risk
5 Oversight Act’’.
kjohnson on DSK7ZCZBW3PROD with $$_JOB
VerDate Sep 11 2014 22:13 Oct 20, 2025 Jkt 069200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H5788.IH H5788
2
1 SEC. 2. PORTFOLIO RISK ANALYSIS OF LOANS GUARAN-
2 TEED UNDER THE 504 PROGRAM.
3 Title V of the Small Business Investment Act of 1958
4 (15 U.S.C. 695 et seq.) is amended by adding at the end
5 the following:
6 ‘‘SEC. 511. PORTFOLIO RISK ANALYSIS.
7 ‘‘(a) IN GENERAL.—The Administrator shall annu-
8 ally conduct a risk analysis of the portfolio of the Adminis-
9 tration with respect to all loans guaranteed under this
10 title.
11 ‘‘(b) REPORT TO CONGRESS.—Not later than Decem-
12 ber 1, 2025, and annually thereafter, the Administrator
13 shall submit to Congress a report containing the results
14 of each portfolio risk analysis conducted under subsection
15 (a) during the fiscal year preceding the submission of the
16 report, which shall include—
17 ‘‘(1) an analysis of the overall program risk of
18 loans guaranteed under this title;
19 ‘‘(2) an analysis of the program risk, set forth
20 separately by industry concentration;
21 ‘‘(3) without identifying individual development
22 companies by name, a consolidated analysis of the
23 risk created by development companies making loans
kjohnson on DSK7ZCZBW3PROD with $$_JOB
24 under this title that are responsible for not less than
25 1 percent of gross loan approvals under this title, set
26 forth separately by—
•HR 5788 IH
VerDate Sep 11 2014 22:13 Oct 20, 2025 Jkt 069200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H5788.IH H5788
3
1 ‘‘(A) the dollar value of the loans made by
2 such development companies;
3 ‘‘(B) the number of loans made by such
4 development companies; and
5 ‘‘(C) an analysis of the program risk for
6 such loans with a dollar value—
7 ‘‘(i) less than or equal to $500,000;
8 ‘‘(ii) greater than $500,000 and less
9 than or equal to $1,000,000;
10 ‘‘(iii) greater than $1,000,000 and
11 less than or equal to $2,000,000; and
12 ‘‘(iv) greater than $2,000,000 and
13 less than or equal to $5,500,000;
14 ‘‘(4) an analysis of the program risk for loan
15 guarantees made under this title for loans that were
16 originated—
17 ‘‘(A) less than one year before the date of
18 submission of the report;
19 ‘‘(B) at least one year, but not more than
20 two years before such date; and
21 ‘‘(C) more than two years before such
22 date;
23 ‘‘(5) an analysis of the program risk for loan
kjohnson on DSK7ZCZBW3PROD with $$_JOB
24 guarantees made under this title for loans that were
25 originated—
•HR 5788 IH
VerDate Sep 11 2014 22:13 Oct 20, 2025 Jkt 069200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H5788.IH H5788
4
1 ‘‘(A) to a borrower that uses such loan to
2 open a business;
3 ‘‘(B) to a borrower not described in sub-
4 paragraph (A) that is a business concern that
5 has been in operation for less than or equal to
6 two years before the date of origination; and
7 ‘‘(C) to a borrower that is a business con-
8 cern that has been in operation for more than
9 two years on the date of origination;
10 ‘‘(6) an analysis of the program risk for loan
11 guarantees made under this title for loans that were
12 originated for limited or special purpose properties;
13 ‘‘(7) steps taken by the Administrator to miti-
14 gate the risks identified in paragraphs (1), (2), (3),
15 (4), (5), and (6);
16 ‘‘(8) the number of development companies, the
17 number of loans made, and the gross dollar amount
18 of the loans made under this title;
19 ‘‘(9) the number and total dollar amount of
20 purchases by the Administrator of the principal and
21 interest of loans guaranteed under this title that are
22 in default, the total dollar amount of collections re-
23 covered on such purchases, and the number and
kjohnson on DSK7ZCZBW3PROD with $$_JOB
24 total dollar amount of charge-offs for such pur-
25 chases;
•HR 5788 IH
VerDate Sep 11 2014 22:13 Oct 20, 2025 Jkt 069200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H5788.IH H5788
5
1 ‘‘(10) the number and type of enforcement ac-
2 tions with respect to a loan made by a development
3 company under this title recommended by the Ad-
4 ministrator; and
5 ‘‘(11) the number and dollar amount of any
6 civil monetary penalty assessed pursuant to an en-
7 forcement action described in paragraph (10).
8 ‘‘(c) AVAILABILITY OF REPORT.—The Administrator
9 shall make available to the public on a website of the Ad-
10 ministration the report required under subsection (b) not
11 later than 7 days after the Administrator submits such
12 report to Congress.
13 ‘‘(d) LIMITED OR SPECIAL PURPOSE PROPERTY DE-
14 FINED.—In this section, the term ‘limited or special pur-
15 pose property’ has the meaning given by the Administrator
16 in the guidance titled ‘Lender and Development Company
17 Loan Programs’ (SOP 50 10 8; as in effect on June 1,
18 2025).’’.
Æ
kjohnson on DSK7ZCZBW3PROD with $$_JOB
•HR 5788 IH
VerDate Sep 11 2014 22:13 Oct 20, 2025 Jkt 069200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\H5788.IH H5788
File and source
- File
- 407330_2025-11-17_committee-on-small-business-activity-the-week-of-n_att1.pdf
- Size
- 247,860 bytes
- SHA-256
- ea0b29d253f0fcf049aecb15aa5c14815fc88ee7df460b8b3abe06f0a2b698f9
- Original
- No public link identified.