This bill adds a new section to Title V of the Small Business Investment Act of 1958 to require the Administrator to run an annual risk analysis of the portfolio of loans guaranteed under the SBA 504 program. The Administrator must send a report to Congress by December 1, 2025, and each year after that. The report must include overall program risk and separate analyses by industry concentration; consolidated risk details for development companies responsible for at least 1% of gross loan approvals (without naming those companies), broken out by dollar value and number of loans and by four loan-size brackets; risk by loan age at origination (less than one year, one to two years, more than two years); risk by borrower type (new business, business operating two years or less, business operating more than two years); risk for limited or special purpose properties; steps the Administrator will take to mitigate identified risks; counts of development companies, number of loans, and gross dollar amounts; purchases by the Administrator of defaulted guaranteed loans and related recoveries and charge-offs; and enforcement actions and any civil monetary penalties. The bill also requires the Administrator to post the report on the agency website within 7 days after sending it to Congress. The bill defines "limited or special purpose property" by reference to existing SBA guidance (SOP 50 10 8 as of June 1, 2025).
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