504 Credit Risk Management Improvement Act of 2021

Floor Speech

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Ms. DAVIDS of Kansas. Madam Speaker, I move to suspend the rules and pass the bill (H.R. 1482) to amend the Small Business Act to enhance the Office of Credit Risk Management, to require the Administrator of the Small Business Administration to issue rules relating to environmental obligations of certified development companies, and for other purposes.

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Ms. DAVIDS of Kansas. 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. 1482, the 504 Credit Risk Management Improvement Act, which clarifies the oversight role of the SBA's Office of Credit Risk Management in respect to CDCs.

To improve oversight of the SBA business loan programs, including the 7(a) and 504 loan programs, the agency established the Office of Credit Risk Management--OCRM--within the Office of Capital Access. OCRM conducts periodic reviews of SBA lenders to ensure they are complying with program requirements.

In 2018, Congress passed bipartisan legislation to codify the office and gave it the tools it needs to conduct proper oversight and hold noncompliant lenders accountable.

It was our intent to boost the office's enforcement powers to help minimize the likelihood that business loan programs would face losses and reduce the need for Congress to appropriate funds.

I should point out that these programs are designed to operate at zero subsidy, meaning they come at no cost to the taxpayer, and we intend to keep it that way.

I am pleased that the gentleman from North Carolina, along with the gentlewoman from Minnesota, worked together to bring this bill to life last Congress. This bill clarifies OCRM's oversight role and shifts loan closing file review responsibilities to the office and, in turn, keeps the program running at a zero subsidy. I applaud their bipartisanship and, more importantly, their commitment to America's small businesses.

Madam Speaker, I urge all of my colleagues to vote ``yes,'' and I reserve the balance of my time.

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Ms. DAVIDS of Kansas. Madam Speaker, I reserve the balance of my time.

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Ms. DAVIDS of Kansas. Madam Speaker, I reserve the balance of my time.

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Ms. DAVIDS of Kansas. Madam Speaker, I continue to reserve the balance of my time.

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Ms. DAVIDS of Kansas. Madam Speaker, I have no further speakers at this time, and I am prepared to close.

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Ms. DAVIDS of Kansas. Madam Speaker, in its 62-year history, the SBA's 504 loan program has helped thousands of entrepreneurs acquire heavy machinery and equipment, expand to more locations, and hire workers. It has long been a strong-performing SBA program and has enjoyed consistent bipartisanship support.

We must continue to take all steps needed to preserve the integrity of the 504 program and ensure it will be an option for the next generation of entrepreneurs. Passing the bill before us today will help us do so.

I thank Mr. Bishop and Ms. Craig for their hard work and collaboration in bringing this bill to the floor today. I also thank Mr. Luetkemeyer for his leadership today and his unwavering commitment to our Nation's 30 million small businesses.

Madam Speaker, I urge my colleagues to vote ``yes,'' and I yield back the balance of my time.

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