504 Program Risk Oversight Act
Summary
The 504 Program Risk Oversight Act amends Title V of the Small Business Investment Act of 1958. It mandates an annual portfolio risk analysis of loans guaranteed under the 504 program. This analysis will be conducted by the Administrator and reported to Congress annually.
Expected Effects
The Act will increase transparency and oversight of the 504 loan program. It requires the Administrator to identify and mitigate risks associated with these loans. The public will have access to the risk analysis reports via a government website.
Potential Benefits
- Improved risk management within the 504 loan program.
- Increased transparency through public reporting.
- Better understanding of industry-specific risks.
- Enhanced oversight of development companies.
- Data-driven decision-making for loan guarantees.
Potential Disadvantages
- Potential increase in administrative burden for the Administrator.
- Possible delays in loan processing due to increased scrutiny.
- Risk of misinterpreting risk analysis data.
- Potential for increased costs associated with compliance.
- Possible chilling effect on lending due to heightened risk awareness.
Constitutional Alignment
The Act aligns with the Commerce Clause (Article I, Section 8) by regulating interstate commerce through small business loans. It also aligns with Congress's power to oversee government programs and ensure their effectiveness. The reporting requirements ensure transparency and accountability, consistent with principles of good governance.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).