Small Business 7(a) Loan Agent Transparency Act — House Report 117–141 (October 12, 2021)
- Issuer
- Congressional materials
- Document type
- Crpt 117Hrpt141
- Case
- Crpt 117Hrpt141
Summary
House Report 117–141 of the 117th Congress, submitted October 12, 2021 by Ms. Velázquez from the Committee on Small Business to accompany H.R. 4481, the Small Business 7(a) Loan Agent Transparency Act. The committee reports the bill favorably without amendment and recommends that it pass. The background section cites SBA Office of Inspector General findings that at least 22 cases of confirmed loan agent fraud totaled at least $335 million, and that loans with referral fees defaulted at a rate 28 percent higher. The section-by-section analysis says the bill requires the Office of Credit Risk Management to register 7(a) agents with unique identifiers and adds agents to its enforcement authority. The report records a voice vote on July 29, 2021 and closes with changes in existing law to the Small Business Act.
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
“Small Business 7(a) Loan Agent Transparency Act — House Report 117–141 (October 12, 2021).”
Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/crpt-117hrpt141/
, SHA-256 ebb02b403445887384fc9e5f7334f336b8b4b104391d13fcd8f6008035f0f73d.Full text
117TH CONGRESS REPORT
" HOUSE OF REPRESENTATIVES !
1st Session 117–141
SMALL BUSINESS 7(A) LOAN AGENT TRANSPARENCY ACT
OCTOBER 12, 2021.—Committed to the Committee of the Whole House on the State
of the Union and ordered to be printed
Ms. VELÁZQUEZ, from the Committee on Small Business,
submitted the following
R E P O R T
[To accompany H.R. 4481]
The Committee on Small Business, to whom was referred the bill
(H.R. 4481) to amend the Small Business Act to establish require-
ments for 7(a) agents, and for other purposes, having considered
the same, reports favorably thereon without amendment and rec-
ommends that the bill do pass.
CONTENTS
Page
I. Purpose and Bill Summary ........................................................................ 1
II. Background and Need for Legislation ....................................................... 2
III. Hearings ....................................................................................................... 3
IV. Committee Consideration ........................................................................... 3
V. Committee Votes ......................................................................................... 3
VI. Section-by-Section Analysis for H.R. 4481 ................................................ 4
VII. Congressional Budget Cost Estimate ........................................................ 4
VIII. New Budget Authority, Entitlement Authority, and Tax Expenditures 4
IX. Committee Oversight Findings and Recommendations ........................... 4
X. Statement of General Performance Goals and Objectives ....................... 5
XI. Duplication of Federal Programs ............................................................... 5
XII. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits ..................................................................................................... 5
XIII. Federal Mandates Statement ..................................................................... 5
XIV. Federal Advisory Committee Statement ................................................... 5
XV. Applicability to Legislative Branch ........................................................... 5
XVI. Constitutional Authority Statement .......................................................... 5
XVII. Changes in Existing Law Made by the Bill, as Reported ........................ 5
I. PURPOSE AND BILL SUMMARY
The purpose of H.R. 4481, the ‘‘Small Business 7(a) Loan Agent
Transparency Act’’, is to establish a registration system with
unique identifiers for 7(a) agents to help the Small Business Ad-
sspencer on DSK126QN23PROD with REPORT
ministration’s (SBA) Office of Credit Risk Management (OCRM)
29–006
VerDate Sep 11 2014 05:30 Oct 14, 2021 Jkt 029006 PO 00000 Frm 00001 Fmt 6659 Sfmt 6602 E:\HR\OC\HR141.XXX HR141
2
track and evaluate the performance of 7(a) loans generated through
loan agent activity. H.R. 4481 also enhances OCRM’s and the SBA
Lender Oversight Committee’s (LOC) enforcements authority with
respect to loan agents.
II. BACKGROUND AND NEED FOR LEGISLATION
H.R. 4481 was introduced by Rep. Dean Phillips (D–MN) and
Rep. Dan Meuser (R–PA) on July 16, 2021 to improve SBA’s over-
sight of loan agent and broker activity in the 7(a) Loan Guaranty
Program (7(a) program). In February 2020, the Committee on
Small Business held a hearing reviewing the management of SBA’s
Office of Credit Risk Management (OCRM),1 which is responsible
for the oversight of SBA lenders and its $120 billion business loan
portfolios. During the hearing, OCRM’s director testified that ap-
proximately 11 percent of the 7(a) loan portfolio was generated
through loan agent activity, which in FY 2019, represented over
5,700 loans. The director also testified that SBA lacks a way to
uniquely identify and systematically track loan agents, and instead
relies on lender reviews to obtain information about each lender’s
agents and brokers.
Authorized by section 7(a) of the Small Business Act, the SBA’s
7(a) program is the agency’s flagship loan program. Private sector
lenders (mostly banks and credit unions but also some non-deposi-
tory lenders) originate commercial and working capital loans of up
to $5 million to small businesses who cannot access credit else-
where. SBA guarantees 50 to 90 percent of each 7(a) loan made,
depending on loan characteristics, assuring the lender that if a bor-
rower defaults on the loan, SBA will purchase the loan and the
lender will receive an agreed-upon portion of the outstanding bal-
ance. SBA also administers several subprograms within the 7(a)
program that offer streamlined and expedited loan procedures for
different groups of borrowers, including the SBA Express, Export
Express, and Community Advantage Pilot programs. Although
these subprograms have their own distinguishing eligibility re-
quirements, terms, and benefits, they operate under the 7(a) pro-
gram’s authorization. For the majority of 7(a) loans, SBA relies on
lenders with delegated authority to process and service loans, and
ensure borrowers meet the program’s eligibility requirements. In
FY2020, SBA approved 42,302 7(a) loans for a total of over $22.5
billion, with an average loan size of $533,076.
Increased risk to SBA’s business loan programs introduced by
loan agents and brokers has been consistently cited by SBA’s OIG
as a top management and performance challenge facing the agency,
most recently in FY 2021.2 In September 2015, OIG published an
audit report which found though SBA strengthened some controls
over loan agent participation in the business loan programs, fur-
ther improvements were necessary to ensure program integrity and
mitigate the risk of fraud and loss.3 For example, OCRM’s loan
1 SBA Management Review: Office of Credit Risk Management: Hearing Before the H. Comm.
on Small Business, 116th Cong. (2020).
2 U.S. SMALL BUS. ADMIN. OFFICE OF INSPECTOR GEN., TOP MANAGEMENT AND PERFORMANCE
CHALLENGES FACING THE SMALL BUSINESS ADMINISTRATION IN FISCAL YEAR 2021, (Oct. 16,
2020), https://www.sba.gov/sites/default/files/2020-10/SBA%20OIG%20Report%2021-01.508_0.pdf.
sspencer on DSK126QN23PROD with REPORT
3 U.S. SMALL BUS. ADMIN. OFFICE OF INSPECTOR GEN., AUDIT REPORT: SBA NEEDS TO IM-
PROVE ITS OVERSIGHT OF LOAN AGENTS, REPORT, (Sep. 25, 2015), https://www.sba.gov/sites/
default/files/oig/Report_15-16_SBA_Needs_to_Improve_Its_Oversight_of_Loan_Agents.pdf.
VerDate Sep 11 2014 05:30 Oct 14, 2021 Jkt 029006 PO 00000 Frm 00002 Fmt 6659 Sfmt 6602 E:\HR\OC\HR141.XXX HR141
3
agent oversight activities remain limited to lender on-site reviews,
and according to OCRM officials cited in the September 2015 OIG
audit report, the on-site review process could not effectively evalu-
ate loan agent activity and performance. The report included a rec-
ommendation that SBA implement a process using permissible in-
formation to uniquely identify loan agents involved with SBA lend-
ing programs for tracking purposes.
Since 2005, OIG has investigated at least 22 cases with con-
firmed loan agent fraud totaling at least $335 million. OIG’s anal-
ysis determined that 7(a) loans made in which a lender paid a re-
ferral fee to a loan agent defaulted at a rate 28 percent higher than
loans where no referral fee was reported. Furthermore, OIG identi-
fied that agents have targeted multiple SBA lenders, who would be
unaware of loan agents’ past performance or activity with other
lenders. OIG’s analysis found that one loan agent that fraudulently
originated $90 million in SBA loans received compensation from at
least 19 different lenders. The Committee agrees with OIG that
though lenders bear primary responsibility for monitoring their
agents, only SBA is positioned to aggregate loan agent portfolios,
evaluate their performance, and inform lenders and policymakers
about concerning program risks or trends. Companion legislation
(H.R. 4481, the ‘‘Small Business 7(a) Loan Agent Transparency
Act’’) would require OCRM to compile loan agent data using a reg-
istration system that assigns each agent a unique identifier. H.R.
4531 requires a report to Congress regarding such data, including
an analysis of the performance, cost, and risk associated with loan
agent activity in the 7(a) program.
III. HEARINGS
On February 5, 2020, the Committee on Small Business held a
management review hearing on OCRM,4 which is responsible for
conducting oversight of the agency’s business loan programs. This
hearing continued the Committee’s interest in OCRM’s activities
and followed the enactment of the Small Business 7(a) Lending
Oversight Reform Act of 2018, which codified OCRM and strength-
ened its oversight and enforcement tools. During the hearing,
OCRM’s director testified that SBA lacks a way to uniquely iden-
tify and systematically track loan agents, and instead relies on
lender reviews to obtain information about loan agents.
IV. COMMITTEE CONSIDERATION
The Committee on Small Business met in open session, with a
quorum being present, on July 29, 2021 and ordered H.R. 4481 fa-
vorably reported to the House of Representatives. During the
markup, no amendments were offered.
V. COMMITTEE VOTES
Clause 3(b) of rule XIII of the Rules of the House of Representa-
tives requires the Committee to list the recorded votes on the mo-
tion to report legislation and amendments thereto. The Committee
voted by voice vote to favorably report H.R. 4481 to the House of
Representatives at 10:28 a.m.
sspencer on DSK126QN23PROD with REPORT
4 Supra note 1.
VerDate Sep 11 2014 05:30 Oct 14, 2021 Jkt 029006 PO 00000 Frm 00003 Fmt 6659 Sfmt 6602 E:\HR\OC\HR141.XXX HR141
4
VI. SECTION-BY-SECTION ANALYSIS FOR H.R. 4481
Section 1. Short title
This Act may be cited as the ‘‘Small Business 7(a) Loan Agent
Transparency Act’’.
Section 2. Requirements for 7(a) agents
This section adds 7(a) agents as entities against whom OCRM
and LOC may take a formal or informal enforcement action, which
improves SBA’s ability to hold noncompliant agents accountable.
This section also requires OCRM to establish a registration system
for 7(a) agents that assigns each a unique identifier and collects
data to help OCRM track and evaluate loan performance for loans
generated through loan agent activity. It also requires OCRM to es-
tablish and maintain a database featuring the types of services pro-
vided by different 7(a) agents. This would improve SBA’s ability to
assess the role agents and brokers play in providing access to cap-
ital through the 7(a) program, as well as help it monitor risk asso-
ciated with loan agent activity. Finally, this section requires 7(a)
agents to register in the system before providing services to a lend-
er or borrower, and to pay an annual registration fee to OCRM.
VII. CONGRESSIONAL BUDGET COST ESTIMATE
Pursuant to 3(c)(2) of rule XIII of the Rules of the House of Rep-
resentatives, the Committee adopts as its as its own the cost esti-
mate prepared by the Director of the Congressional Budget Office
pursuant to section 402 of the Congressional Budget Act of 1974.
The Committee has requested but not received from the Director
of the Congressional Budget Office a cost estimate for the Commit-
tee’s provisions.
VIII. NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX
EXPENDITURES
Pursuant to clause 3(c)(2) of rule XIII of the Rules of the House
of Representatives and section 308(a) of the Congressional Budget
Act of 1974, the Committee provides the following opinion and esti-
mate with respect to new budget authority, entitlement authority,
and tax expenditures. While the Committee has not received an es-
timate of new budget authority contained in the cost estimate pre-
pared by the Director of the Congressional Budget Office pursuant
to Sec. 402 of the Congressional Budget Act of 1974, the Committee
does not believe that there will be any additional costs attributable
to this legislation. H.R. 4481 does not direct new spending, but in-
stead reallocates funding independently authorized and appro-
priated.
IX. COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS
In accordance with clause 3(c)(1) of rule XIII and clause 2(b)(1)
of rule X of the Rules of the House of Representatives, the over-
sight findings and recommendations of the Committee on Small
sspencer on DSK126QN23PROD with REPORT
Business with respect to the subject matter contained in the H.R.
4481 are incorporated into the descriptive portions of this report.
VerDate Sep 11 2014 05:30 Oct 14, 2021 Jkt 029006 PO 00000 Frm 00004 Fmt 6659 Sfmt 6602 E:\HR\OC\HR141.XXX HR141
5
X. STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES
With respect to the requirements of clause 3(c)(4) of rule XIII of
the Rules of the House of Representatives, the performance goals
and objectives of H.R. 4481 is to enhance OCRM’s ability to mon-
itor 7(a) loan agent activity and give OCRM enforcement authority
against noncompliant agents.
XI. DUPLICATION OF FEDERAL PROGRAMS
Pursuant to clause 3(c)(5) of rule XIII of the Rules of the House
of Representatives, no provision of H.R. 4481 is known to be dupli-
cative of another Federal program, including any program that was
included in a report to Congress pursuant to section 21 of Public
Law 111–139 or the most recent Catalog of Federal Domestic As-
sistance.
XII. CONGRESSIONAL EARMARKS, LIMITED TAX BENEFITS, AND
LIMITED TARIFF BENEFITS
With respect to clause 9 of rule XXI of the Rules of the House
of Representatives, the Committee finds that the bill does not con-
tain any congressional earmarks, limited tax benefits, or limited
tariff benefits as defined in clause 9(e), 9(f), or 9(g) of rule XXI of
the Rules of the House of Representatives.
XIII. FEDERAL MANDATES STATEMENT
The Committee adopts as its own the estimate of Federal man-
dates prepared by the Director of the Congressional Budget Office
pursuant to section 423 of the Unfunded Mandates Reform Act.
XIV. FEDERAL ADVISORY COMMITTEE STATEMENT
No advisory committees within the meaning of section 5(b) of the
Federal Advisory Committee Act were created by this legislation.
XV. APPLICABILITY TO LEGISLATIVE BRANCH
The Committee finds that the legislation does not relate to the
terms and conditions of employment or access to public services or
accommodations within the meaning of section 102(b)(3) of the Con-
gressional Accountability Act.
XVI. CONSTITUTIONAL AUTHORITY STATEMENT
Pursuant to clause 7 of rule XII of the Rules of the House of Rep-
resentatives, the Committee finds the authority for this legislation
in Art. I, § 8, cl. 1 of the Constitution of the United States.
XVII. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
In compliance with clause 3(e) of rule XIII of the Rules of the
House of Representatives, changes in existing law made by the bill,
as reported, as shown as follows: existing law proposed to be omit-
ted is enclosed in black brackets, new matter is printed in italic,
sspencer on DSK126QN23PROD with REPORT
and existing law in which no change is proposed is shown in
roman:
VerDate Sep 11 2014 05:30 Oct 14, 2021 Jkt 029006 PO 00000 Frm 00005 Fmt 6659 Sfmt 6602 E:\HR\OC\HR141.XXX HR141
6
CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
In compliance with clause 3(e) of rule XIII of the Rules of the
House of Representatives, changes in existing law made by the bill,
as reported, are shown as follows (existing law proposed to be omit-
ted is enclosed in black brackets, new matter is printed in italics,
and existing law in which no change is proposed is shown in
roman):
SMALL BUSINESS ACT
* * * * * * *
SEC. 47. OFFICE OF CREDIT RISK MANAGEMENT.
(a) ESTABLISHMENT.—There is established within the Adminis-
tration the Office of Credit Risk Management (in this section re-
ferred to as the ‘‘Office’’).
(b) DUTIES.—The Office shall be responsible for supervising—
(1) any lender making loans under section 7(a) (in this sec-
tion referred to as a ‘‘7(a) lender’’);
(2) any Lending Partner or Intermediary participant of the
Administration in a lending program of the Office of Capital
Access of the Administration; øand¿
(3) any small business lending company or a non-Federally
regulated lender without regard to the requirements of section
23ø.¿;
(4) any 7(a) agent.
(c) DIRECTOR.—
(1) IN GENERAL.—The Office shall be headed by the Director
of the Office of Credit Risk Management (in this section re-
ferred to as the ‘‘Director’’), who shall be a career appointee in
the Senior Executive Service (as defined in section 3132 of title
5, United States Code).
(2) DUTIES.—The Director shall be responsible for oversight
of the lenders and participants described in subsection (b), in-
cluding by conducting periodic reviews of the compliance and
performance of such lenders and participants.
(d) SUPERVISION DUTIES FOR 7(A) LENDERS.—
(1) REVIEWS.—With respect to 7(a) lenders, an employee of
the Office shall—
(A) be present for and supervise any such review that is
conducted by a contractor of the Office on the premise of
the 7(a) lender; and
(B) supervise any such review that is not conducted on
the premise of the 7(a) lender.
(2) REVIEW REPORT TIMELINE.—
(A) IN GENERAL.—Notwithstanding any other require-
ments of the Office or the Administrator, the Adminis-
trator shall develop and implement a review report
timeline which shall—
(i) require the Administrator to—
(I) deliver a written report of the review to the
7(a) lender not later than 60 business days after
the date on which the review is concluded; or
sspencer on DSK126QN23PROD with REPORT
(II) if the Administrator expects to submit the
report after the end of the 60-day period described
VerDate Sep 11 2014 05:30 Oct 14, 2021 Jkt 029006 PO 00000 Frm 00006 Fmt 6659 Sfmt 6602 E:\HR\OC\HR141.XXX HR141
7
in clause (i), notify the 7(a) lender of the expected
date of submission of the report and the reason for
the delay; and
(ii) if a response by the 7(a) lender is requested in
a report submitted under subparagraph (A), require
the 7(a) lender to submit responses to the Adminis-
trator not later than 45 business days after the date
on which the 7(a) lender receives the report.
(B) EXTENSION.—The Administrator may extend the
time frame described in subparagraph (A)(i)(II) with re-
spect to a 7(a) lender as the Administrator determines nec-
essary.
(e) ENFORCEMENT AUTHORITY AGAINST 7(a) LENDERS.—
(1) INFORMAL ENFORCEMENT AUTHORITY.—The Director may
take an informal enforcement action against a 7(a) lender or
7(a) agent if the Director finds that the 7(a) lender or 7(a)
agent has violated a statutory or regulatory requirement under
section 7(a) or any requirement in a Standard Operating Proce-
dures Manual or Policy Notice related to a program or function
of the Office of Capital Access.
(2) FORMAL ENFORCEMENT AUTHORITY.—
(A) IN GENERAL.—With the approval of the Lender Over-
sight Committee established under section 48, the Director
may take a formal enforcement action against any 7(a)
lender or 7(a) agent if the Director finds that the 7(a) lend-
er or 7(a) agent has violated—
(i) a statutory or regulatory requirement under sec-
tion 7(a), including a requirement relating to credit
elsewhere; or
(ii) any requirement described in a Standard Oper-
ating Procedures Manual or Policy Notice, related to a
program or function of the Office of Capital Access.
(B) ENFORCEMENT ACTIONS.—An enforcement action im-
posed on a 7(a) lender or 7(a) agent by the Director under
subparagraph (A) shall be based on the severity or fre-
quency of the violation and may include assessing a civil
monetary penalty against the 7(a) lender or 7(a) agent in
an amount that is not greater than $250,000.
(3) APPEAL BY LENDER.—A 7(a) lender or 7(a) agent may ap-
peal an enforcement action imposed by the Director described
in this subsection to the Office of Hearings and Appeals estab-
lished under section 5(i) or to an appropriate district court of
the United States.
(f) REGULATIONS.—Not later than 1 year after the date of the en-
actment of this section, the Administrator shall issue regulations,
after opportunity for notice and comment, to carry out subsection
(e).
(g) SERVICING AND LIQUIDATION RESPONSIBILITIES.—During any
period during which a 7(a) lender is suspended or otherwise prohib-
ited from making loans under section 7(a), the 7(a) lender shall re-
main obligated to maintain all servicing and liquidation activities
delegated to the lender by the Administrator, unless otherwise
sspencer on DSK126QN23PROD with REPORT
specified by the Director.
(h) PORTFOLIO RISK ANALYSIS OF 7(a) LOANS.—
VerDate Sep 11 2014 05:30 Oct 14, 2021 Jkt 029006 PO 00000 Frm 00007 Fmt 6659 Sfmt 6602 E:\HR\OC\HR141.XXX HR141
8
(1) IN GENERAL.—The Director shall annually conduct a risk
analysis of the portfolio of the Administration with respect to
all loans guaranteed under section 7(a).
(2) REPORT TO CONGRESS.—On December 1, 2018, and every
December 1 thereafter, the Director shall submit to Congress
a report containing the results of each portfolio risk analysis
conducted under paragraph (1) during the fiscal year preceding
the submission of the report, which shall include—
(A) an analysis of the overall program risk of loans guar-
anteed under section 7(a);
(B) an analysis of the program risk, set forth separately
by industry concentration;
(C) without identifying individual 7(a) lenders by name,
a consolidated analysis of the risk created by the indi-
vidual 7(a) lenders responsible for not less than 1 percent
of the gross loan approvals set forth separately for the
year covered by the report by—
(i) the dollar value of the loans made by such 7(a)
lenders; and
(ii) the number of loans made by such 7(a) lenders;
(D) steps taken by the Administrator to mitigate the
risks identified in subparagraphs (A), (B), and (C);
(E) the number of 7(a) lenders, the number of loans
made, and the gross and net dollar amount of loans made;
(F) the number and dollar amount of total losses, the
number and dollar amount of total purchases, and the per-
centage and dollar amount of recoveries at the Administra-
tion;
(G) the number and type of enforcement actions rec-
ommended by the Director;
(H) the number and type of enforcement actions ap-
proved by the Lender Oversight Committee established
under section 48;
(I) the number and type of enforcement actions dis-
approved by the Lender Oversight Committee; and
(J) the number and dollar amount of civil monetary pen-
alties assessed.
(i) BUDGET SUBMISSION AND JUSTIFICATION.—The Director shall
annually provide, in writing, a fiscal year budget submission for
the Office and a justification for such submission to the Adminis-
trator. Such submission and justification shall—
(1) include salaries and expenses of the Office and the charge
for the lender oversight fees;
(2) be submitted at or about the time of the budget submis-
sion by the President under section 1105(a) of title 31; and
(3) be maintained in an indexed form and made available for
public review for a period of not less than 5 years beginning
on the date of submission and justification.
(j) REGISTRATION SYSTEM FOR 7(a) AGENTS.—
(1) IN GENERAL.—The Director shall establish a registration
system for 7(a) agents that assigns a unique identifier to each
7(a) agent and collects data necessary for the Director to submit
sspencer on DSK126QN23PROD with REPORT
the report required under paragraph (4).
(2) REQUIREMENTS.—A 7(a) agent shall—
VerDate Sep 11 2014 05:30 Oct 14, 2021 Jkt 029006 PO 00000 Frm 00008 Fmt 6659 Sfmt 6603 E:\HR\OC\HR141.XXX HR141
9
(A) register in the system established under paragraph
(1) before providing covered services to a lender or appli-
cant; and
(B) effective 1 year after the date of the enactment of this
subsection, submit an annual fee for such registration to
the Director.
(3) DATABASE.—The Director shall establish and maintain an
electronic database of the types of covered services provided by
each 7(a) agent.
(k) DEFINITIONS.—In this section:
(1) 7 7(a) AGENT.—The term ‘‘7(a) agent’’ means a person who
provides covered services on behalf of a lender or applicant.
(2) COVERED SERVICES.—The term ‘‘covered services’’ means—
(A) assistance with completing an application for a loan
under section 7(a) (including preparing a business plan,
cash flow projections, financial statements, and related doc-
uments); or
(B) consulting, broker, or referral services with respect to
a loan under section 7(a).
SEC. 48. LENDER OVERSIGHT COMMITTEE.
(a) ESTABLISHMENT.—There is established within the Adminis-
tration the Lender Oversight Committee (in this section referred to
as the ‘‘Committee’’).
(b) MEMBERSHIP.—The Committee shall consist of at least 8
members selected by the Administrator, of which—
(1) 3 members shall be voting members, 2 of whom shall be
career appointees in the Senior Executive Service (as defined
in section 3132 of title 5, United States Code); and
(2) the remaining members shall be nonvoting members who
shall serve in an advisory capacity on the Committee.
(c) DUTIES.—The Committee shall—
(1) review reports on lender oversight activities;
(2) review formal enforcement action recommendations of the
Director of the Office of Credit Risk Management with respect
to any lender making loans under section 7(a) øand any Lend-
ing Partner or Intermediary participant¿, any 7(a) agent (as
defined in section 47), or any Lending Partner or Intermediary
participant of the Administration in a lending program of the
Office of Capital Access of the Administration;
(3) in carrying out paragraph (2) with respect to formal en-
forcement actions taken under subsection (d) or (e) of section
23, vote to recommend or not recommend action to the Admin-
istrator or a designee of the Administrator;
(4) in carrying out paragraph (2) with respect to any formal
enforcement action not specified under subsection (d) or (e) of
section 23, vote to approve, disapprove, or modify the action;
(5) review, in an advisory capacity, any lender oversight,
portfolio risk management, or program integrity matters
brought by the Director; and
(6) take such other actions and perform such other functions
as may be delegated to the Committee by the Administrator.
(d) MEETINGS.—
sspencer on DSK126QN23PROD with REPORT
(1) IN GENERAL.—The Committee shall meet as necessary,
but not less frequently than on a quarterly basis.
VerDate Sep 11 2014 05:30 Oct 14, 2021 Jkt 029006 PO 00000 Frm 00009 Fmt 6659 Sfmt 6602 E:\HR\OC\HR141.XXX HR141
10
(2) REPORTS.—The Committee shall submit to the Adminis-
trator a report detailing each meeting of the Committee, in-
cluding if the Committee does or does not vote to approve a for-
mal enforcement action of the Director of the Office of Credit
Risk Management with respect to a lender.
* * * * * * *
Æ
sspencer on DSK126QN23PROD with REPORT
VerDate Sep 11 2014 05:30 Oct 14, 2021 Jkt 029006 PO 00000 Frm 00010 Fmt 6659 Sfmt 6611 E:\HR\OC\HR141.XXX HR141
File and source
- File
- CRPT-117hrpt141.pdf
- Size
- 268,890 bytes
- SHA-256
- ebb02b403445887384fc9e5f7334f336b8b4b104391d13fcd8f6008035f0f73d
- Our copy
- CRPT-117hrpt141.pdf
- Original
- No public link identified.