H.R. 5788 – 504 Program Risk Oversight Act

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Updated January 30, 2026 at 4:11 AM UTC

The 504 Program Risk Oversight Act adds a new requirement that the Small Business Administration annually evaluate the risk of all loans guaranteed under the 504 loan program. The Administrator must submit a comprehensive report to Congress each December and make it publicly available, covering overall risk, industry and lender concentration, loan size, age, borrower type, and special‑purpose property, as well as mitigation actions and enforcement outcomes. The bill affects the SBA, its development‑company lenders, and businesses that receive 504 loan guarantees.

Key Provisions

The SBA Administrator must conduct a risk analysis of the entire portfolio of loans guaranteed under the 504 program each year.
A detailed report of the analysis must be sent to Congress by Dec. 1 (first report by Dec. 1, 2025) and must include: overall program risk, risk by industry concentration, and risk from the largest development companies (those responsible for at least 1% of loan approvals).
The report must break down risk by loan size ($0‑$500K, $500K‑$1M, $1M‑$2M, $2M‑$5.5M), by how long ago the loan was originated (under 1 year, 1‑2 years, over 2 years), by borrower type (new business, start‑up ≤2 years old, established business), and by loans for limited or special‑purpose property.
It must also describe steps the Administrator is taking to mitigate identified risks, and provide statistics on the number and dollar amount of loans, defaults, collections, charge‑offs, enforcement actions, and any civil monetary penalties.
The report must be posted publicly on the SBA website within 7 days of being submitted to Congress.

Legislative Activity

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12 earlier actions

SenateIntro Referral Latest Action

Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.

Small Business and Entrepreneurship Committee

January 26, 2026

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HouseIntro Referral

Introduced in House

October 17, 2025

HouseIntro Referral

Referred to the House Committee on Small Business.

Small Business Committee

October 17, 2025

HouseCommittee

Committee Consideration and Mark-up Session Held

Small Business Committee

November 18, 2025

HouseCommittee

Ordered to be Reported by the Yeas and Nays: 27 - 0.

Small Business Committee

November 18, 2025

HouseCommittee

Reported by the Committee on Small Business. H. Rept. 119-404.

Small Business Committee

December 12, 2025

HouseCalendars

Placed on the Union Calendar, Calendar No. 352.

December 12, 2025

HouseFloor

Mr. Williams (TX) moved to suspend the rules and pass the bill.

January 20, 2026 • 3:57 PM

HouseFloor

Considered under suspension of the rules. (consideration: CR H932-934)

January 20, 2026 • 3:57 PM

HouseFloor

DEBATE - The House proceeded with forty minutes of debate on H.R. 5788.

January 20, 2026 • 3:57 PM

HouseFloor

Passed/agreed to in House: On motion to suspend the rules and pass the bill Agreed to by voice vote. (text: CR H933)

January 20, 2026 • 4:08 PM

HouseFloor

On motion to suspend the rules and pass the bill Agreed to by voice vote. (text: CR H933)

January 20, 2026 • 4:08 PM

HouseFloor

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

January 20, 2026 • 4:08 PM

SenateIntro Referral

Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.

Small Business and Entrepreneurship Committee

January 26, 2026

Floor Debate

4 members

What members said about H.R. 5788 on the floor

2 Republicans2 Democrats

Rep. Roger WilliamsR-TX-25 · Jan 20, 2026

Madam Speaker, I move to suspend the rules and pass the bill (H.R. 5788) to amend title V of the Small Business Investment Act of 1958 to require an annual portfolio risk analysis of loans guaranteed…

Madam Speaker, I move to suspend the rules and pass the bill (H.R. 5788) to amend title V of the Small Business Investment Act of 1958 to require an annual portfolio risk analysis of loans guaranteed under such title, and for other purposes.

Madam Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks and include extraneous material on the bill.

Madam Speaker, I yield myself such time as I may consume.

Madam Speaker, I rise today in strong support of H.R. 5788, the 504 Program Risk Oversight Act introduced by Representatives Tran and Patronis.

This bipartisan piece of legislation would give Congress greater accountability and oversight of the SBA's 504 Loan Program by requiring the SBA to provide Congress and the public with annual, data-driven risk assessments of the 504 loan portfolio.

The 504 program is an incredibly important tool that helps small businesses obtain long-term, fixed-rate financing like the acquisition of fixed assets such as land, buildings, and heavy machinery.

In fiscal year 2025, the program supported $7.8 billion in loans to small businesses nationwide. Specifically, H.R. 5788 would require the SBA to provide Congress with annual reports on the health of the 504 loan portfolio.

This would include an analysis of any risk to the program broken down by multiple data points, including industry concentration, loan age, and gross dollar amount.

These reports would be made available to the public within 7 days of being provided to Congress. The transparency measures in this bill are particularly important in light of the House passage of my bill, H.R. 3174, the Made in America Manufacturing Finance Act, which raised the loan limit for American manufacturers under the SBA's 7(a) and 504 loan programs to $10 million. I hope it will quickly move through the Senate and to President Trump's desk.

Madam Speaker, H.R. 5788 marks a critical step toward identifying and mitigating risks early, strengthening the long-term viability and affordability of the 504 loan program and ensuring continued support for American entrepreneurs.

Madam Speaker, I urge my colleagues to vote ``yes'' on H.R. 5788, and I reserve the balance of my time.

Madam Speaker, I yield such time as he may consume to the gentleman from Florida (Mr. Patronis).

Madam Speaker, I have no further speakers, and I am prepared to close. I reserve the balance of my time.

Madam Speaker, H.R. 5788 provides transparency to the SBA's 504 loan program, a key program that promotes job creation and small business growth.

Madam Speaker, I urge my colleagues to support this legislation, and I yield back the balance of my time.

Rep. Derek TranD-CA-45 · Jan 20, 2026

Madam Speaker, I rise today in strong support of H.R. 5788, the 504 Program Risk Oversight Act, bipartisan legislation that strengthens one of SBA's most successful financing programs. For decades,…

Madam Speaker, I rise today in strong support of H.R. 5788, the 504 Program Risk Oversight Act, bipartisan legislation that strengthens one of SBA's most successful financing programs.

For decades, the SBA's 504 loan program has been a cornerstone of economic development in communities across America. Through public and private partnership with certified development companies, the 504 program helps small businesses to grow, create jobs, and invest in their communities.

Since its inception in 1986, the program has provided approximately $400 billion in total project financing and created over 3.3 million jobs. In California alone, that translates to $95 billion in total capital and the creation of over 715,000 good-paying jobs.

For entrepreneurs in California's 45th District and across the Nation, the 504 loan program's unique model provides them with access to long-term, fixed-rate financing to help them to expand operations, purchase property, and make lasting investments in their local economy.

In Orange County and Los Angeles County alone, the 504 program has injected more than $27 billion into local businesses and helped to create over 175,000 jobs over the last 25 years.

My bipartisan bill, the 504 Program Risk Oversight Act, builds on that success by ensuring that all partners--the SBA, Congress, and industry--have access to clear, consistent, and transparent data about the health of the program.

Currently, SBA is not required to conduct an annual risk analysis of the 504 loan program and provide Congress with any performance data. My bill addresses this problem and requires the SBA to conduct an annual risk assessment of the 504 program and provide Congress with detailed insights into overall health of the program and information needed to strengthen program performance.

Madam Speaker, transparent data is the cornerstone of a productive partnership between the SBA, Congress, and industry and the work that we do collectively to keep the 504 program healthy for future generations of entrepreneurs. Now more than ever, small businesses need what the 504 loan program provides: certainty and affordable patient capital.

Madam Speaker, I am proud to lead this bill, and I thank my colleague, Representative Jimmy Patronis, for his partnership in co- leading this important piece of legislation with me. Of course, this bill would not be possible without the leadership of Ranking Member Velazquez and Chair Williams.

Madam Speaker, I urge my colleagues to support this bill.

Rep. Nydia M. VelázquezD-NY-7 · Jan 20, 2026

Madam Speaker, I yield myself such time as I may consume. Madam Speaker, I rise in support of the bill before us today, H.R. 5788, the 504 Program Risk Oversight Act. Madam Speaker, transparency is…

Madam Speaker, I yield myself such time as I may consume.

Madam Speaker, I rise in support of the bill before us today, H.R. 5788, the 504 Program Risk Oversight Act.

Madam Speaker, transparency is key to ensuring the proper operation and functioning of the SBA lending programs, including the 504/CDC program. This bill will give the Committee on Small Business the necessary information to carry out our oversight authority.

Federal law requires the SBA Office of Credit Risk Management to conduct an annual portfolio risk analysis of the SBA flagship 7(a) loan program and provide Congress with a detailed report of their results. This report has been crucial in Committee on Small Business Democrats' investigation into the rising default levels in the 7(a) program and has helped us to respond accordingly.

Unfortunately, no statutory reporting requirement exists for the 504/ CDC loan program. H.R. 5788 will fix that by adding a requirement that the SBA conduct an annual risk analysis of the 504/CDC program and provide Congress with their results. Tailored to the 504/CDC program's unique features, the report will provide Congress with many of the same data points it currently provides on the 7(a) program, but the bill also requires several new data points to improve our stewardship of the program.

While loan defaults aren't currently a concern for the 504 program, this bill will provide Congress with valuable information needed to monitor the program's operation, guard against future risk, and ensure that the program's zero-subsidy requirement is maintained.

Madam Speaker, I applaud Representatives Tran and Patronis for their work on this bill, which is supported by the National Association of Development Companies. I ask my colleagues to support it, and I reserve the balance of my time.

Madam Speaker, I yield 3 minutes to the gentleman from California (Mr. Tran), the lead sponsor of the bill.

Madam Speaker, I again applaud Representatives Tran and Patronis for their bipartisan work on this bill. I encourage all of my colleagues to vote ``yes,'' and I yield back the balance of my time.

Rep. Jimmy PatronisR-FL-1 · Jan 20, 2026

Madam Speaker, I thank the lead of this bill, the gentleman from California (Mr. Tran), for his work on this bill. I appreciate the opportunity to serve as co-lead on this legislation. The SBA's 504…

Bill Text

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Referred in SenateIssued January 26, 2026

IIB

119th CONGRESS

2d Session

H. R. 5788

IN THE SENATE OF THE UNITED STATES

January 26 (legislative day, January 15), 2026

Received; read twice and referred to the Committee on Small Business and Entrepreneurship

AN ACT

To amend title V of the Small Business Investment Act of 1958 to require an annual portfolio risk analysis of loans guaranteed under such title, and for other purposes.

1.

Short title

This Act may be cited as the 504 Program Risk Oversight Act.

2.

Portfolio risk analysis of loans guaranteed under the 504 program

Title V of the Small Business Investment Act of 1958 (15 U.S.C. 695 et seq.) is amended by adding at the end the following:

511.

Portfolio risk analysis

(a)

In general

The Administrator shall annually conduct a risk analysis of the portfolio of the Administration with respect to all loans guaranteed under this title.

(b)

Report to Congress

Not later than December 1, 2025, and annually thereafter, the Administrator shall submit to Congress a report containing the results of each portfolio risk analysis conducted under subsection (a) during the fiscal year preceding the submission of the report, which shall include—

(1)

an analysis of the overall program risk of loans guaranteed under this title;

(2)

an analysis of the program risk, set forth separately by industry concentration;

(3)

without identifying individual development companies by name, a consolidated analysis of the risk created by development companies making loans under this title that are responsible for not less than 1 percent of gross loan approvals under this title, set forth separately by—

(A)

the dollar value of the loans made by such development companies;

(B)

the number of loans made by such development companies; and

(C)

an analysis of the program risk for such loans with a dollar value—

(i)

less than or equal to $500,000;

(ii)

greater than $500,000 and less than or equal to $1,000,000;

(iii)

greater than $1,000,000 and less than or equal to $2,000,000; and

(iv)

greater than $2,000,000 and less than or equal to $5,500,000;

(4)

an analysis of the program risk for loan guarantees made under this title for loans that were originated—

(A)

less than one year before the date of submission of the report;

(B)

at least one year, but not more than two years before such date; and

(C)

more than two years before such date;

(5)

an analysis of the program risk for loan guarantees made under this title for loans that were originated—

(A)

to a borrower that uses such loan to open a business;

(B)

to a borrower not described in subparagraph (A) that is a business concern that has been in operation for less than or equal to two years before the date of origination; and

(C)

to a borrower that is a business concern that has been in operation for more than two years on the date of origination;

(6)

an analysis of the program risk for loan guarantees made under this title for loans that were originated for limited or special purpose properties;

(7)

steps taken by the Administrator to mitigate the risks identified in paragraphs (1), (2), (3), (4), (5), and (6);

(8)

the number of development companies, the number of loans made, and the gross dollar amount of the loans made under this title;

(9)

the number and total dollar amount of purchases by the Administrator of the principal and interest of loans guaranteed under this title that are in default, the total dollar amount of collections recovered on such purchases, and the number and total dollar amount of charge-offs for such purchases;

(10)

the number and type of enforcement actions with respect to a loan made by a development company under this title recommended by the Administrator; and

(11)

the number and dollar amount of any civil monetary penalty assessed pursuant to an enforcement action described in paragraph (10).

(c)

Availability of report

The Administrator shall make available to the public on a website of the Administration the report required under subsection (b) not later than 7 days after the Administrator submits such report to Congress.

(d)

Limited or special purpose property defined

In this section, the term limited or special purpose property has the meaning given by the Administrator in the guidance titled Lender and Development Company Loan Programs (SOP 50 10 8; as in effect on June 1, 2025).

.

Passed the House of Representatives January 20, 2026.

Kevin F. McCumber,

Clerk.