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Floor Speech
Mr. Speaker, I rise in support of H.R. 1804, the 7(a) Loan Agent Oversight Act.
The 7(a) loan program is the SBA's largest traditional lending program, providing access to capital for small businesses that cannot find it elsewhere. In fiscal year 2024, SBA approved more than 70,000 loans, totaling more than $31 billion.
Loan agents are an integral part of the 7(a) lending program, helping to facilitate access to capital for small businesses by connecting borrowers with SBA lenders or by offering other products. As of 2020, these agents helped facilitate 11 percent of the loans administered.
Unfortunately, some dishonest loan agents can contribute to fraud, casting a stain on the SBA's largest lending program and, ultimately, hurting borrowers and lenders alike.
As SBA increases its reliance on loan agents, it is essential that the agency have proper oversight of their involvement to minimize fraud. This will ensure that competent and honest agents can help screen borrowers, prepare forms, and better reach communities that need this capital most.
That is why this bill is so essential. The 7(a) Loan Agent Oversight Act would require SBA to establish a registration system that collects data on 7(a) loan agents to better track and evaluate the performance of loans for each individual agent.
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Mr. McGARVEY. Mr. Speaker, I thank my colleagues, Mr. Meuser and Mrs. McIver, for working together in a bipartisan way on behalf of strengthening the SBA's flagship 7(a) loan program.
For too long, a few bad actors have damaged one of the most successful small business capital access programs in the Federal Government. By giving the SBA the tools and authority it needs, we can root out bad behavior and minimize fraud without punishing loan agents that are acting in good faith on behalf of their clients and helping small businesses access the capital they need to grow.
I urge my colleagues to vote ``yes'' on H.R. 1804, and I yield back the balance of my time.
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