504 Credit Risk Management Improvement Act of 2025

This bill changes how the Small Business Administration oversees certified development companies, which help make 504 small business loans. It gives the SBA's Office of Credit Risk Management duties to review a random selection of loan closing files, supervise reviews of these companies, and take enforcement actions, including civil penalties of up to $250,000 with approval of an oversight committee. The office would analyze the risk of all 504 loans each year and report the results to Congress every December 1. The office could also charge these companies a fee, capped at 1 basis point of their loan portfolio, to cover oversight costs. The SBA would have 180 days to issue rules explaining how these companies comply with the National Environmental Policy Act.

Full text and official record on Congress.gov

Sponsors

• Todd Young Republican sponsor
• 1 cosponsors