Ask AI
Public Law115th CongressCommerce
H.R. 4743Became Law

Small Business 7(a) Lending Oversight Reform Act of 2018

This bill became law

Filed
Comm.
Floor
Both
Law

What it doesSummary public law (Jun 21, 2018)

Small Business 7(a) Lending Oversight Reform Act of 2018

(Sec. 3) This bill amends the Small Business Act to provide statutory authority for the Small Business Administration (SBA) Office of Credit Risk Management (OCRM) and the SBA Lender Oversight Committee.

The bill modifies the OCRM's supervisory duties and the committee's review of OCRM formal enforcement action recommendations. The bill requires OCRM to supervise:

  • lenders making loans under the SBA's guaranteed loan program, commonly known as 7(a) lenders;
  • lending partners or SBA intermediary participants in a lending program of the SBA's Office of Capital Access;
  • small business lending companies; and
  • nonfederally regulated lenders.

The OCRM may assess a monetary penalty against lenders that violate requirements.

(Sec. 4) Under current law, a borrower is ineligible for an SBA guaranteed loan if the applicant may obtain credit elsewhere. The term "credit elsewhere" is redefined to include the availability of credit on reasonable terms and conditions to the loan applicant from nongovernment sources, considering factors associated with conventional lending practices, including:

  • the business industry in which the applicant operates;
  • whether the applicant is an enterprise that has been in operation for two years or less;
  • the adequacy of the collateral available to secure the requested loan;
  • the loan term necessary to reasonably assure the ability of the loan applicant to repay the debt from the business's actual or projected cash flow; and
  • any other factors relating to the particular credit application, as documented in detail by the lender, that cannot be overcome except through obtaining a federal loan guarantee under prudent lending standards.

Such term is inapplicable to certain SBA guaranteed loans to repair, rehabilitate, or replace property damaged or destroyed by or resulting from natural or other disasters.

(Sec. 5) The SBA may, with congressional approval, increase the cap for general business loans if the cap will be reached within that fiscal year. An increase may only be implemented once each fiscal year.

(Sec. 6) SBA waivers of regulations or requirements in the Standard Operating Procedures Manual or Policy Notice related to an Office of Capital Access's program or function must be in writing and maintained in an index.

(Sec 7) The bill repeals a requirement for the SBA to report certain information to the President and Congress, including the number and amount of loan defaults.

What just happenedJun 21, 2018

Became Public Law No: 115-189.

Who’s behind it

Rep. Chabot, Steve [R-OH-1](R-OH)Sponsor
11 cosponsors7 D4 R
Read on Congress.gov
11cosponsors1committees29actions3related bills9subjects
  1. Jun 21, 2018President

    Became Public Law No: 115-189.

  2. Jun 21, 2018BecameLaw36000

    Became Public Law No: 115-189.

  3. Jun 21, 2018President

    Signed by President.

  4. Jun 21, 2018BecameLaw36000

    Signed by President.

  5. Jun 13, 2018Floor

    Presented to President.

  6. Jun 13, 2018President28000

    Presented to President.

  7. Jun 6, 2018Floor

    Message on Senate action sent to the House.

  8. Jun 5, 2018Floor

    Passed Senate without amendment by Unanimous Consent. (consideration: CR S2998)

  9. Jun 5, 2018Floor17000

    Passed/agreed to in Senate: Passed Senate without amendment by Unanimous Consent.(consideration: CR S2998)

  10. May 23, 2018Calendars

    Received in the Senate. Read twice. Placed on Senate Legislative Calendar under General Orders. Calendar No. 431.

  11. May 23, 2018Floor

    Message on Senate action sent to the House.

  12. May 22, 2018Floor

    Senate returned papers to the House by Unanimous Consent.

  13. May 22, 2018Floor

    Senate vitiated previous actions by Unanimous Consent. (consideration: CR S2838)

  14. May 16, 2018FloorH1B000

    House requested return of papers pursuant to H.Res. 899. (consideration: CR H4008)

  15. May 9, 2018Calendars

    Received in the Senate. Read twice. Placed on Senate Legislative Calendar under General Orders. Calendar No. 403.

  16. May 8, 2018FloorH38310

    Motion to reconsider laid on the table Agreed to without objection.

  17. May 8, 2018FloorH37300

    On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H3812-3814)

  18. May 8, 2018Floor8000

    Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.(text: CR H3812-3814)

  19. May 8, 2018FloorH8D000

    DEBATE - The House proceeded with forty minutes of debate on H.R. 4743.

  20. May 8, 2018FloorH30000

    Considered under suspension of the rules. (consideration: CR H3812-3815)

  21. May 8, 2018FloorH30300

    Mr. Chabot moved to suspend the rules and pass the bill, as amended.

  22. Apr 26, 2018CalendarsH12410

    Placed on the Union Calendar, Calendar No. 503.

  23. Apr 26, 2018CommitteeH12200

    Reported (Amended) by the Committee on Small Business. H. Rept. 115-655.

    Small Business Committee
  24. Apr 26, 2018Committee5000

    Reported (Amended) by the Committee on Small Business. H. Rept. 115-655.

    Small Business Committee
  25. Mar 14, 2018Committee

    Ordered to be Reported (Amended) by Voice Vote.

    Small Business Committee
  26. Mar 14, 2018Committee

    Committee Consideration and Mark-up Session Held.

    Small Business Committee
  27. Jan 9, 2018IntroReferralH11100

    Referred to the House Committee on Small Business.

    Small Business Committee
  28. Jan 9, 2018IntroReferralIntro-H

    Introduced in House

  29. Jan 9, 2018IntroReferral1000

    Introduced in House

Public LawJun 21, 201849

Small Business 7(a) Lending Oversight Reform Act of 2018

(Sec. 3) This bill amends the Small Business Act to provide statutory authority for the Small Business Administration (SBA) Office of Credit Risk Management (OCRM) and the SBA Lender Oversight Committee.

The bill modifies the OCRM's supervisory duties and the committee's review of OCRM formal enforcement action recommendations. The bill requires OCRM to supervise:

  • lenders making loans under the SBA's guaranteed loan program, commonly known as 7(a) lenders;
  • lending partners or SBA intermediary participants in a lending program of the SBA's Office of Capital Access;
  • small business lending companies; and
  • nonfederally regulated lenders.

The OCRM may assess a monetary penalty against lenders that violate requirements.

(Sec. 4) Under current law, a borrower is ineligible for an SBA guaranteed loan if the applicant may obtain credit elsewhere. The term "credit elsewhere" is redefined to include the availability of credit on reasonable terms and conditions to the loan applicant from nongovernment sources, considering factors associated with conventional lending practices, including:

  • the business industry in which the applicant operates;
  • whether the applicant is an enterprise that has been in operation for two years or less;
  • the adequacy of the collateral available to secure the requested loan;
  • the loan term necessary to reasonably assure the ability of the loan applicant to repay the debt from the business's actual or projected cash flow; and
  • any other factors relating to the particular credit application, as documented in detail by the lender, that cannot be overcome except through obtaining a federal loan guarantee under prudent lending standards.

Such term is inapplicable to certain SBA guaranteed loans to repair, rehabilitate, or replace property damaged or destroyed by or resulting from natural or other disasters.

(Sec. 5) The SBA may, with congressional approval, increase the cap for general business loans if the cap will be reached within that fiscal year. An increase may only be implemented once each fiscal year.

(Sec. 6) SBA waivers of regulations or requirements in the Standard Operating Procedures Manual or Policy Notice related to an Office of Capital Access's program or function must be in writing and maintained in an index.

(Sec 7) The bill repeals a requirement for the SBA to report certain information to the President and Congress, including the number and amount of loan defaults.

Passed Senate without amendmentJun 5, 201882

Small Business 7(a) Lending Oversight Reform Act of 2018

(Sec. 3) This bill amends the Small Business Act to provide statutory authority for the Small Business Administration (SBA) Office of Credit Risk Management (OCRM) and the SBA Lender Oversight Committee.

The bill modifies the OCRM's supervisory duties and the committee's review of OCRM formal enforcement action recommendations. The bill requires OCRM to supervise:

  • lenders making loans under the SBA's guaranteed loan program, commonly known as 7(a) lenders;
  • lending partners or SBA intermediary participants in a lending program of the SBA's Office of Capital Access;
  • small business lending companies; and
  • nonfederally regulated lenders.

The OCRM may assess a monetary penalty against lenders that violate requirements.

(Sec. 4) Under current law, a borrower is ineligible for an SBA guaranteed loan if the applicant may obtain credit elsewhere. The term "credit elsewhere" is redefined to include the availability of credit on reasonable terms and conditions to the loan applicant from nongovernment sources, considering factors associated with conventional lending practices, including:

  • the business industry in which the applicant operates;
  • whether the applicant is an enterprise that has been in operation for two years or less;
  • the adequacy of the collateral available to secure the requested loan;
  • the loan term necessary to reasonably assure the ability of the loan applicant to repay the debt from the business's actual or projected cash flow; and
  • any other factors relating to the particular credit application, as documented in detail by the lender, that cannot be overcome except through obtaining a federal loan guarantee under prudent lending standards.

Such term is inapplicable to certain SBA guaranteed loans to repair, rehabilitate, or replace property damaged or destroyed by or resulting from natural or other disasters.

(Sec. 5) The SBA may, with congressional approval, increase the cap for general business loans if the cap will be reached within that fiscal year. An increase may only be implemented once each fiscal year.

(Sec. 6) SBA waivers of regulations or requirements in the Standard Operating Procedures Manual or Policy Notice related to an Office of Capital Access's program or function must be in writing and maintained in an index.

(Sec 7) The bill repeals a requirement for the SBA to report certain information to the President and Congress, including the number and amount of loan defaults.

Reported to House with amendment(s)Apr 26, 201817

Small Business 7(a) Lending Oversight Reform Act of 2018

This bill amends the Small Business Act to provide statutory authority for the Small Business Administration (SBA) Office of Credit Risk Management and the SBA Lender Oversight Committee.

For FY2018 and each ensuing fiscal year, the SBA may, with congressional approval, increase the cap for general business loans if the cap will be reached within that fiscal year. An increase may only be implemented once each fiscal year.

Introduced in HouseJan 9, 2018

Small Business 7(a) Lending Oversight Reform Act of 2018

This bill amends the Small Business Act to provide statutory authority for the Small Business Administration (SBA) Office of Credit Risk Management and the SBA Lender Oversight Committee.

For FY2018 and each ensuing fiscal year, the SBA may, with congressional approval, increase the cap for general business loans if the cap will be reached within that fiscal year. An increase may only be implemented once each fiscal year.

Small Business 7(a) Lending Oversight Reform Act of 2018 — Informed