Bill · S. 2659· Senate(119-S-2659)
504 Credit Risk Management Improvement Act of 2025
- Introduced
- 8/1/2025
- Last activity
- 9/17/2025 — Committee on Small Business and Entrepreneurship. Hearings held.
- Sponsored by
- Todd Young
- Cosponsors
- - 0 - 1
- Introduced
- In Committee
What this bill would do
The 504 Credit Risk Management Improvement Act of 2025 aims to amend the Small Business Investment Act of 1958. It focuses on enhancing the Office of Credit Risk Management by expanding its duties and oversight capabilities. The bill tasks the Office with supervising certified development companies and conducting loan closing file reviews to ensure program integrity. Additionally, it grants the Office authority to take enforcement actions and charge certain fees. Finally, it requires the Small Business Administration Administrator to issue new rules regarding environmental obligations under the National Environmental Policy Act.
Yes
Does this make what the government does easier for the public to see?+2
The bill mandates an annual portfolio risk analysis report to be submitted to Congress.
Does this better protect air, water and wildlife?+1
The bill requires the SBA Administrator to issue rules clarifying compliance with the National Environmental Policy Act.
The opposite
Would business owners be better off under this?-3
Certified development companies face new oversight, potential fines of up to $250,000, and new mandatory fees.
Does this make it easier to run a small business?-2
The bill imposes new fees and potential civil penalties on certified development companies that support small businesses.
Who it would affect, and how
Potential Positive Impacts for People
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Program Integrity: The Office of Credit Risk Management will conduct file reviews of random loan closings to ensure the integrity of the program (Section 2, subsection c, paragraph 1).
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Error Correction: If a file review finds a deficiency that could cause a loss to the Administration, the company or attorney must promptly correct it (Section s, subsection c, paragraph 3).
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Transparency via Reporting: The Director is required to submit an annual portfolio risk analysis to Congress, providing data on program risks, industry concentrations, and enforcement actions (Section 2, subsection f).
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Environmental Clarity: The Administrator must issue rules within 180 days to clarify procedures for certified development companies to comply with the National Environmental Policy Act (Section 3, subsection b).
Potential Negative Impacts for People
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Financial Penalties for Companies: Certified development companies may face formal enforcement actions resulting in civil monetary penalties of up to $250,000 (Section 2, subsection e, paragraph 2, subparagraph B).
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Penalties for Late Reporting: Companies that fail to submit required reports within 60 days may face a penalty of up to $10,000 or a suspension from the program for up to 30 days (Section 2, subsection e, paragraph 3).
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New Fees for Companies: The Office may charge certified development companies a fee to cover the costs of examinations, reviews, and oversight activities (Section 2, subsection g, paragraph 1).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Business Owners-3
- Economy And Finance
- Improves Small Business Support-2
- Governance And Ideology
- Improves Government Transparency+2
- Environment Energy And Infrastructure
- Improves Environmental Protections+1
- 9/17/2025
- Committee on Small Business and Entrepreneurship. Hearings held.
- 8/1/2025
- Read twice and referred to the Committee on Small Business and Entrepreneurship.
- 1 Cosponsor added.
- Introduced in Senate
Amy KlobucharDemocrat · Minnesota