504 Program Risk Oversight Act

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Bill ID: 119/hr/5788
Last Updated: December 13, 2025

Sponsored by

Rep. Tran, Derek [D-CA-45]

ID: T000491

Bill's Journey to Becoming a Law

Track this bill's progress through the legislative process

Latest Action

Placed on the Union Calendar, Calendar No. 352.

December 12, 2025

Introduced

📍 Current Status

Next: The bill will be reviewed by relevant committees who will debate, amend, and vote on it.

🏛️

Committee Review

🗳️

Floor Action

Passed House

🏛️

Senate Review

🎉

Passed Congress

🖊️

Presidential Action

⚖️

Became Law

📚 How does a bill become a law?

1. Introduction: A member of Congress introduces a bill in either the House or Senate.

2. Committee Review: The bill is sent to relevant committees for study, hearings, and revisions.

3. Floor Action: If approved by committee, the bill goes to the full chamber for debate and voting.

4. Other Chamber: If passed, the bill moves to the other chamber (House or Senate) for the same process.

5. Conference: If both chambers pass different versions, a conference committee reconciles the differences.

6. Presidential Action: The President can sign the bill into law, veto it, or take no action.

7. Became Law: If signed (or if Congress overrides a veto), the bill becomes law!

Bill Summary

Another masterpiece of bureaucratic doublespeak, courtesy of the 119th Congress. Let's dissect this abomination and reveal the underlying disease.

**Main Purpose & Objectives:** The 504 Program Risk Oversight Act (HR 5788) claims to improve oversight of loans guaranteed under the Small Business Investment Act of 1958 by requiring an annual portfolio risk analysis. How noble. In reality, this bill is a Band-Aid on a festering wound, designed to placate the masses while allowing the real culprits – corrupt politicians and their corporate donors – to continue exploiting the system.

**Key Provisions & Changes to Existing Law:** The bill amends title V of the Small Business Investment Act by adding a new section (511) that requires the Administrator to conduct an annual portfolio risk analysis. This analysis must include a laundry list of metrics, such as program risk by industry concentration, development company performance, and loan guarantee risks. Sounds impressive, but it's just a smokescreen.

**Affected Parties & Stakeholders:** The usual suspects are involved: small business owners, development companies, lenders, and the Small Business Administration (SBA). But let's not forget the real stakeholders – the politicians who sponsored this bill and their corporate donors. A quick glance at the sponsors' campaign finance records reveals a trail of breadcrumbs leading to the banking and financial industries.

**Potential Impact & Implications:** This bill will likely have minimal impact on the actual risk management practices of the SBA, but it will provide a nice PR boost for the politicians involved. The real implications are:

* Increased bureaucracy and administrative costs, which will be passed on to small business owners. * More opportunities for corruption and cronyism, as development companies and lenders with connections to politicians will continue to receive favorable treatment. * A further entrenchment of the status quo, where the SBA prioritizes the interests of big banks and corporations over those of small businesses.

Diagnosis: This bill is a classic case of " Legislative Lip Service Syndrome" (LLSS), characterized by grandiose language, meaningless reforms, and a complete disregard for the underlying problems. The patient's symptoms – corruption, cronyism, and bureaucratic inefficiency – will persist, while the politicians involved will continue to reap the benefits of their corporate donors' largesse.

Treatment: A healthy dose of skepticism, transparency, and accountability would be a good start. But let's not hold our breath; after all, this is Washington D.C. we're talking about.

Related Topics

Government Operations & Accountability Small Business & Entrepreneurship Congressional Rules & Procedures National Security & Intelligence Criminal Justice & Law Enforcement Transportation & Infrastructure Civil Rights & Liberties Federal Budget & Appropriations State & Local Government Affairs
Generated using Llama 3.1 70B (house personality)

💰 Campaign Finance Network

Rep. Tran, Derek [D-CA-45]

Congress 119 • 2024 Election Cycle

Total Contributions
$16,025
22 donors
PACs
$0
Organizations
$11,300
Committees
$0
Individuals
$4,725

No PAC contributions found

1
SHAKOPEE MDEWAKANTON SIOUX COMMUNITY
1 transaction
$3,300
2
FEHER, ERICA
1 transaction
$3,300
3
COTCHETT, PITRE & MCCARTHY LLP
1 transaction
$1,700
4
FEDERATED INDIANS FO GRATON RANCHERIA
1 transaction
$1,000
5
BRACAMONTES VLASAK, PC
1 transaction
$1,000
6
FEDERATED INDIANS OF GRATON RANCHERIA
1 transaction
$1,000

No committee contributions found

1
MOORE, JACKIE
3 transactions
$1,100
2
COEN, JENNIFER
5 transactions
$625
3
SICILIANO, DANIEL
1 transaction
$500
4
HOFFMAN, LYNETTE F
1 transaction
$250
5
RUBANOVICH, ANDREW
1 transaction
$250
6
FRASER, DAVID
1 transaction
$250
7
REMY, GUERDY
1 transaction
$250
8
WRIGHTINGTON, JOHN
1 transaction
$250
9
ZAUDTKE, LINDA
1 transaction
$250
10
BEISHEIM, THOMAS
2 transactions
$200
11
WALLACE, KATHLEEN
1 transaction
$200
12
STARKWEATHER, TRACI
1 transaction
$150
13
THRIPP, RICHARD
2 transactions
$150
14
DURAN, MARTHA
1 transaction
$100
15
BAKER, TODD
1 transaction
$100
16
FIORE, PAUL
1 transaction
$100

Cosponsors & Their Campaign Finance

This bill has 3 cosponsors. Below are their top campaign contributors.

Rep. Patronis, Jimmy [R-FL-1]

ID: P000622

Top Contributors

0

No contribution data available

Rep. Cisneros, Gilbert Ray [D-CA-31]

ID: C001123

Top Contributors

10

1
ACTBLUE
CONDUIT TOTAL LISTED IN AGG. FIELD
PAC SOMERVILLE, MA
$3,300
Nov 5, 2023
2
ACTBLUE
CONDUIT TOTAL LISTED IN AGG. FIELD
PAC SOMERVILLE, MA
$3,300
Nov 12, 2023
3
ACTBLUE
CONDUIT TOTAL LISTED IN AGG. FIELD
PAC SOMERVILLE, MA
$3,300
Oct 8, 2023
4
ACTBLUE
CONDUIT TOTAL LISTED IN AGG. FIELD
PAC SOMERVILLE, MA
$3,300
Nov 12, 2023
5
ACTBLUE
CONDUIT TOTAL LISTED IN AGG. FIELD
PAC SOMERVILLE, MA
$3,300
Dec 24, 2023
6
ACTBLUE
CONDUIT TOTAL LISTED IN AGG. FIELD
PAC SOMERVILLE, MA
$3,300
Oct 8, 2023
7
ACTBLUE
CONDUIT TOTAL LISTED IN AGG. FIELD
PAC SOMERVILLE, MA
$2,500
Oct 8, 2023
8
ACTBLUE
CONDUIT TOTAL LISTED IN AGG. FIELD
PAC SOMERVILLE, MA
$2,500
Nov 26, 2023
9
ACTBLUE
CONDUIT TOTAL LISTED IN AGG. FIELD
PAC SOMERVILLE, MA
$2,300
Dec 10, 2023
10
ACTBLUE
CONDUIT TOTAL LISTED IN AGG. FIELD
PAC SOMERVILLE, MA
$2,000
Nov 12, 2023

Rep. Goodlander, Maggie [D-NH-2]

ID: G000604

Top Contributors

10

1
MCLAUGHLIN, JANE
NOT EMPLOYED NOT EMPLOYED
Individual LYME, NH
$4,500
Aug 24, 2024
2
FLORY, ROBERT H. JR
FLORY INVESTMENTS, INC. PRESIDENT
Individual DAMARISCOTTA, ME
$4,100
Sep 30, 2024
3
FLORY, ROBERT H. JR
FLORY INVESTMENTS, INC. PRESIDENT
Individual DAMARISCOTTA, ME
$4,100
Sep 30, 2024
4
KRAUSZ, STEVEN
US VENTURE PARTNERS VENTURE CAPITAL
Individual PORTOLA VALLEY, CA
$3,300
Oct 23, 2024
5
HIRSHBERG, GARY
STONYFIELD FARM INC. SENIOR ADVISOR
Individual CONCORD, NH
$3,300
Oct 22, 2024
6
DRAKE, LAWRENCE C JR
NOT EMPLOYED NOT EMPLOYED
Individual PORTSMOUTH, NH
$3,300
Oct 19, 2024
7
CUTLER, DOULGAS
CUTLER MANAGEMENT CORP MANAGEMENT
Individual DANIA, FL
$3,300
Oct 17, 2024
8
JAMES, AMABEL
NOT EMPLOYED NOT EMPLOYED
Individual NEW YORK, NY
$3,300
Oct 24, 2024
9
NUNNELLY, MARK
NOT EMPLOYED NOT EMPLOYED
Individual DOVER, MA
$3,300
Oct 21, 2024
10
ROBY, DAVID M.
NOT EMPLOYED NOT EMPLOYED
Individual LYME, NH
$3,300
Oct 28, 2024

Donor Network - Rep. Tran, Derek [D-CA-45]

PACs
Organizations
Individuals
Politicians

Hub layout: Politicians in center, donors arranged by type in rings around them.

Loading...

Showing 29 nodes and 36 connections

Total contributions: $38,625

Top Donors - Rep. Tran, Derek [D-CA-45]

Showing top 22 donors by contribution amount

6 Orgs16 Individuals

Project 2025 Policy Matches

This bill shows semantic similarity to the following sections of the Project 2025 policy document. Higher similarity scores indicate stronger thematic connections.

Introduction

Moderate 64.8%
Pages: 792-794

— 759 — Small Business Administration ineffective programs, consolidate duplicative functions, and reallocate resources to more effective programs (such as the Office of Advocacy) or consider reducing the SBA budget. Personnel Challenges The SBA continues to expand programs and initiatives without first document- ing the effectiveness of existing programs or whether they involve areas in which the agency lacks staff expertise. For example, the SBA wants to expand the number of licensed Small Business Lending Companies (SBLCs), implement a new “Mis- sion-Based SBLC,” and remove a requirement for loan authorization within the 7(a) and 504 Loan programs and rely solely on a lender’s documents. Various IG reports have noted that the lack of skilled employees within the SBA has fueled fraud and mismanagement in COVID-19 lending programs, and congressional leaders have expressed alarm about these “changes that haphazardly overextend the SBA’s responsibilities at a time when they are devastated by fraud and underperforming on their core mission of serving the nation’s 33 million small businesses.”74 A conservative Administration should rein in these idealistic and impractical efforts, get current programs under control and properly staffed with people who can manage and perform competently, and outsource efforts where private-sector expertise is appropriate and more efficient. AUTHOR’S NOTE: The preparation of this chapter was a collective enterprise of individuals involved in the 2025 Presidential Transition Project. All contributors to this chapter are listed at the front of this volume, but David Burton and Caleb Orr deserve special mention. The author alone assumes responsibility for the content of this chapter, and no views expressed herein should be attributed to any other individual.

Introduction

Moderate 64.8%
Pages: 792-794

— 759 — Small Business Administration ineffective programs, consolidate duplicative functions, and reallocate resources to more effective programs (such as the Office of Advocacy) or consider reducing the SBA budget. Personnel Challenges The SBA continues to expand programs and initiatives without first document- ing the effectiveness of existing programs or whether they involve areas in which the agency lacks staff expertise. For example, the SBA wants to expand the number of licensed Small Business Lending Companies (SBLCs), implement a new “Mis- sion-Based SBLC,” and remove a requirement for loan authorization within the 7(a) and 504 Loan programs and rely solely on a lender’s documents. Various IG reports have noted that the lack of skilled employees within the SBA has fueled fraud and mismanagement in COVID-19 lending programs, and congressional leaders have expressed alarm about these “changes that haphazardly overextend the SBA’s responsibilities at a time when they are devastated by fraud and underperforming on their core mission of serving the nation’s 33 million small businesses.”74 A conservative Administration should rein in these idealistic and impractical efforts, get current programs under control and properly staffed with people who can manage and perform competently, and outsource efforts where private-sector expertise is appropriate and more efficient. AUTHOR’S NOTE: The preparation of this chapter was a collective enterprise of individuals involved in the 2025 Presidential Transition Project. All contributors to this chapter are listed at the front of this volume, but David Burton and Caleb Orr deserve special mention. The author alone assumes responsibility for the content of this chapter, and no views expressed herein should be attributed to any other individual. — 760 — Mandate for Leadership: The Conservative Promise ENDNOTES 1. H.R. 7953, Small Business Act, Public Law 85-536, 85th Congress, July 18, 1958, § 2, https://uscode.ecfr.io/ statutes/pl/85/536.pdf (accessed February 17, 2023), amended by H.R. 4877, One Stop Shop for Small Business Compliance Act of 2021, Public Law 117-188, 117th Congress, October 20, 2022, https://www.congress. gov/117/plaws/publ188/PLAW-117publ188.pdf (accessed February 17, 2023). 2. U.S. Small Business Administration, “About SBA: Organization: Mission,” https://www.sba.gov/about-sba/ organization (accessed February 19, 2023). 3. Michael Faulkender, Robert Jackman, and Stephen I. Miran, “The Job-Preservation Effects of Paycheck Protection Program Loans,” U.S. Department of the Treasury, Office of Economic Policy, Working Paper No. 2020-01, December 2020, p. 9, https://home.treasury.gov/system/files/226/Job-Preservation-Effects- Paycheck-Protection-Program-Loans.pdf (accessed February 16, 2023). 4. Kate Rogers, Scott Zamost, Karina Hernandez, and Jennifer Schlesinger, “As Pandemic Aid Was Rushed to Main Street, Criminals Seized on Covid Relief Programs,” CNBC, April 15, 2021, https://www.cnbc. com/2021/04/15/as-pandemic-aid-was-rushed-to-main-street-criminals-seized-on-ppp-eidl-.html (accessed February 16, 2023). 5. Kevin Brewer, “Bills Extend Statute of Limitation for Prosecuting PPP, EIDL Fraud,” Journal of Accountancy, August 10, 2022, https://www.journalofaccountancy.com/news/2022/aug/bills-extend-statute-limitation- prosecuting-ppp-eidl-fraud.html (accessed February 16, 2023). 6. Sacha Pfeiffer, “Virtually All PPP Loans Have Been Forgiven with Limited Scrutiny,” NPR, October 12, 2022, https://www.npr.org/2022/10/12/1128207464/ppp-loans-loan-forgiveness-small-business#:~:text=As%20 COVID-19%20shutdowns%20threatened,early%20days%20of%20the%20pandemic (accessed February 16, 2023). 7. U.S. Small Business Administration, “About SBA: Organization: SBA History,” https://www.sba.gov/about-sba/ organization (accessed February 19, 2023). 8. President Richard Nixon, Executive Order 11518, “Providing for the Increased Representation of the Interests of Small Business Concerns Before Departments and Agencies of the United States Government,” March 20, 1970, in Federal Register, Vol. 35, No. 56 (March 21, 1970), pp. 4939–4940, https://tile.loc.gov/storage-services/ service/ll/fedreg/fr035/fr035056/fr035056.pdf (accessed February 18, 2023). 9. S. 3331, Small Business Amendments of 1974, Public Law 93-386, 93rd Congress, August 23, 1974, https://www. congress.gov/93/statute/STATUTE-88/STATUTE-88-Pg742.pdf (accessed February 19, 2023). 10. S. 299, Regulatory Flexibility Act, Public Law No. 96-354, 96th Congress, September 19, 1980, https://www. congress.gov/96/statute/STATUTE-94/STATUTE-94-Pg1164.pdf (accessed February 19, 2023). 11. Maeve P. Carey, “The Regulatory Flex Act: An Overview,” Congressional Research Service In Focus No. IF11900, August 16, 2021, https://crsreports.congress.gov/product/pdf/IF/IF11900 (accessed February 18, 2023). 12. U.S. Small Business Administration, Office of Advocacy, “The Regulatory Flexibility Act,” https://advocacy.sba. gov/resources/the-regulatory-flexibility-act/ (accessed February 18, 2023). 13. H.R. 644, Trade Facilitation and Trade Enforcement Act of 2015, Public Law No. 114-125, 114th Congress, February 24, 2026, https://www.congress.gov/114/statute/STATUTE-130/STATUTE-130-Pg122.pdf (accessed March 21, 2023). 14. U.S. Small Business Administration, Office of Advocacy, “Advocacy Releases Trade Report,” December 21, 2018, https://advocacy.sba.gov/2018/12/21/advocacy-releases-trade-report/ (accessed March 21, 2023). 15. Associated Press, “Reagan Offers $994-Billion ‘Hard-Choices’ 1987 Budget,” Los Angeles Times, February 5, 1986, http://www.latimes.com/archives/la-xpm-1986-02-05-mn-4369-story.html (accessed February 18, 2023). 16. Testimony of Hon. Hector V. Barreto, Administrator, Small Business Administration, in hearing, The President’s FY 2006 Budget Request for the Small Business Administration, Committee on Small Business and Entrepreneurship, U.S. Senate, 109th Congress, 1st Session, February 17, 2005, p. 8, https://books.google.com/ books?id=UwD-2ICa8k8C&printsec=frontcover&source=gbs_ge_summary_r&cad=0#v=onepage&q&f=false (accessed February 18, 2023). See also Report No. 109-49, Summary of Legislative and Oversight Activities During the 108th Congress, Committee on Small Business and Entrepreneurship, U.S. Senate, 109th Congress, 1st Session, March 30, 2005, p. 21, https://www.congress.gov/109/crpt/srpt49/CRPT-109srpt49.pdf (accessed February 18, 2023).

Introduction

Moderate 61.3%
Pages: 783-785

— 751 — Small Business Administration implement relevant initiatives to reach small businesses. Programs would be nonduplicative and implemented on a first-come, first-served basis. l A modern, revamped, and streamlined SBA that better utilizes current technology and platforms for operations, for reporting, and in its programs to reach, service, and engage small businesses. l An Office of Advocacy that is strengthened by a renewed mandate and additional resources to protect against overregulation along with a research agenda that includes measuring the total cost that federal regulation imposes on small businesses. Accountability and Managerial Practice. The SBA lacks accountability and managerial practices to measure the effectiveness, success, and integrity of its various programs. As a future Administration evaluates agency structure and the particulars of how the SBA is spending appropriated funds, it should immediately require actions and procedures to compel a culture of accountability and perfor- mance. Specifically: l Require performance metrics and internal procedures to safeguard taxpayer dollars and program integrity. As noted in an October 2022 IG report, failure to adopt procedures that would reliably capture data and information for various programs, coupled with significant challenges and weaknesses regarding IT investments, systems development, and security controls, presents significant risks to program integrity and increased risk of waste, fraud, and abuse.34 Addressing these shortcomings and risks should be a priority challenge and action item for the next Administration. As underscored by the Inspector General in his introduction to the report, “Pandemic response has, in many instances, magnified the challenging systemic issues in SBA’s mission-related work.”35 l Review all internal government watchdog recommendations and require that SBA management implement or address outstanding and ongoing OIG and GAO recommendations within a specified time frame (ideally within 90 days of a recommendation) and on an ongoing basis. Strengthening the Office of Advocacy. The SBA Office of Advocacy (Advo- cacy) is “an independent office” within the SBA.36 It accounts for about one one-thousandth of SBA spending and 0.75 percent of SBA personnel. Under the Regulatory Flexibility Act, both under its current authority and with suggested — 752 — Mandate for Leadership: The Conservative Promise reforms, the Office of Advocacy could be a powerful weapon against the adminis- trative state’s regulatory extremism. l Amend the RFA so that all agencies are required to provide a copy of any proposed rule (other than bona fide emergency rules) along with initial regulatory flexibility analysis to the Office of Advocacy at least 60 days before a notice of proposed rulemaking is submitted for publication in the Federal Register. The Office of Advocacy would submit comments to agencies within 30 days, and each agency would have to consider these comments, make changes in the proposed rule based on those comments, or explain in a revised regulatory flexibility analysis why it chose not to change the proposed rule. The Office of Advocacy’s pre-proposing comments would be published on the agencies’ and its own websites. RFA economic analysis should be expanded to include indirect costs along with direct costs. In addition, the next Administration should require other agencies to seek Advocacy’s input. Currently, other agencies deny Advocacy the ability to enforce their duty to consider the effect of regulations on small entities by construing their regulations as not having significant economic impact, which would otherwise serve as a trigger for Advocacy’s input. Congress should presumptively exempt small businesses from new agency rules to force agencies to seek Advocacy’s input and permit new rules to apply to small businesses only with Advocacy signoff under specified criteria. l Increase the Office of Advocacy’s budget by at least 50 percent ($4.6 million). This would allow Advocacy to hire approximately 25 attorneys, economists, and scientists and enhance its role in the regulatory process. l Explicitly direct federal agencies to comply with the RFA. This would be similar to the approach adopted by President Trump in his January and February 2017 executive orders directing agencies to relieve the cost and burden of regulation on business.37 Advocacy should organize regional roundtables, onsite small-business visits, and an online platform to hear directly from small businesses and entities as it did from June 2017 through September 2018.38 This activity produced 26 letters to federal agencies and highlighted specific regulations that need reform and how Congress had addressed the most burdensome rules through the Congressional Review Act.39

Showing 3 of 5 policy matches

About These Correlations

Policy matches are calculated using semantic similarity between bill summaries and Project 2025 policy text. A score of 60% or higher indicates meaningful thematic overlap. This does not imply direct causation or intent, but highlights areas where legislation aligns with Project 2025 policy objectives.