504 Program Risk Oversight Act
Summary
The 504 Program Risk Oversight Act amends the Small Business Investment Act of 1958. It mandates an annual portfolio risk analysis of loans guaranteed under Title V, specifically the 504 program, by the Small Business Administration (SBA). The Act requires the SBA Administrator to submit a detailed report to Congress annually, outlining the findings of the risk analysis, and to make this report publicly available on the SBA's website.
Expected Effects
The Act aims to enhance transparency and oversight of the 504 loan program. This is achieved by providing Congress and the public with detailed information about the program's risk profile. The required annual risk analysis and reporting are intended to help identify and mitigate potential risks within the 504 loan portfolio, potentially leading to better management and stability of the program.
Potential Benefits
- Enhanced transparency in the 504 loan program.
- Improved risk management by the SBA.
- Better informed congressional oversight.
- Public access to information about the program's performance.
- Potential for more efficient allocation of resources within the program.
Potential Disadvantages
- Increased administrative burden on the SBA.
- Potential costs associated with conducting the annual risk analysis and preparing the report.
- Possible disclosure of sensitive business information, although the bill attempts to mitigate this by not identifying individual development companies by name.
- Risk of misinterpretation of the risk analysis data by the public or Congress.
- No direct benefits for individual liberties.
Constitutional Alignment
The Act aligns with the Constitution's Article I, Section 8, which grants Congress the power to regulate commerce and to make all laws necessary and proper for carrying out that power. By requiring oversight and risk analysis of a loan program designed to support small businesses, the Act falls within the scope of Congress's authority to regulate economic activity and promote the general welfare. The reporting requirements also support transparency and accountability, which are consistent with the principles of representative government.
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).