Bill Would Increase Transparency About Small Business Lending Program Risks

Posted: Jul 15 2026

A proposed House bill would require the Small Business Administration to provide and make public more details about 7(a) lending program risks.

SBA is currently required to conduct a yearly risk analysis of its flagship small business lending program and report the results to Congress. The 7(a) Program Risk Oversight Act, sponsored by Rep. Nydia Velázquez (D-N.Y.), would require SBA to break down program risk by loan size, how long a loan has been on the books, the age of the borrower’s business and the type of lender that originated the loan, according to a summary.

The bill also would add new reporting on enforcement actions and civil penalties tied to fraud, on loans the agency has determined were made fraudulently, and on loans that are falling behind on payments. In addition, it would require the SBA to post the report publicly within seven days of submitting it to Congress.

“While the SBA is currently required to send Congress an annual report on the risk in the 7(a) program, our committee’s investigation into the loan default rate makes clear that Congress and the public need more detailed information on the program’s performance to protect both the program and the small businesses that depend on it,” said Velázquez, who is ranking member of the House Small Business Committee.

To read more, visit: https://democrats-smallbusiness.house.gov/news/documentsingle.aspx?DocumentID=5232