504 Program Risk Oversight Act
Description
This bill would require the SBA to conduct and report annual risk analyses for loans guaranteed under the 504 small business loan program.
Summary
What it does
This bill would require the Small Business Administration (SBA) to perform an annual risk analysis of all loans guaranteed through the 504 loan program, which provides financing for small business assets like land and equipment. The SBA would also be required to submit a yearly report detailing the results of these analyses and the specific actions taken to mitigate identified risks.
Who is affected
This bill affects the Small Business Administration (SBA), which would be required to perform annual risk analyses and reporting on its 504 loan program. The legislation also impacts qualifying small businesses that utilize 504 program financing for major fixed assets such as land, buildings, and machinery.
Key provisions
- Annual risk analysis of 504 loans. The Small Business Administration is required to perform a yearly risk assessment of all loans guaranteed through the 504 loan program, which provides financing for major fixed assets like land and equipment.
- Reporting on risk mitigation strategies. The Small Business Administration must submit an annual report detailing the findings of its risk analysis and the specific actions taken to address or reduce identified risks from the previous fiscal year.
Fiscal impact
- H.R. 5788, 504 Program Risk Oversight Act· As reported by the House Committee on Small Business on December 12, 2025
Effective dates
The bill establishes an annual requirement for the Small Business Administration to conduct risk analyses and report results for each preceding fiscal year.
Relationship to existing law
This bill modifies the administration of the Small Business Administration's (SBA) existing 504 loan program by introducing new annual risk analysis and reporting requirements for loans guaranteed under that program.
Stated purpose
The bill aims to enhance financial oversight of the Small Business Administration's 504 loan program by requiring annual risk analyses of all guaranteed loans. It further intends to ensure transparency and accountability by requiring the SBA to report on these risks and the specific actions taken to mitigate them.