H.R. 5788Passed one chamberJobs & the economy
SBA would face yearly risk audits of its 504 small-business loan portfolio
Data as of July 11, 2026
HR 5788 requires the SBA to publish an annual risk analysis of all 504 loans and report to Congress by December 1 each year.60-second read · 5 questions answered below
Decoded
What does this do?
HR 5788 would require the Small Business Administration to conduct a detailed annual risk analysis of its entire 504 loan portfolio. The analysis must break down risk by industry, loan size, loan age, borrower type, and special-purpose properties such as gas stations or car washes. A report must reach Congress by December 1 each year and be posted publicly online within one week.
Who does it affect?
The SBA and the Certified Development Companies that originate 504 loans are directly subject to the new requirements. Small business owners who use 504 loans and taxpayers who back those loans through the federal government are indirectly affected.
Why does it matter?
Currently no requirement exists for the government to regularly assess the overall risk of the 504 loan portfolio, leaving defaults, losses, and lender enforcement actions without a mandated review cycle. The added oversight could lead to changes in how the program is managed, which may affect how 504 loans are made or approved going forward.
What does it cost, and who pays?
- Federal government backs 504 loans
- Taxpayers cover borrower defaults
- Losses and recoveries must be reported
Where does it stand?
- Introduced
- House committee
- House vote
- Senate — You are here
- President's desk
Right now: it passed the House and now goes to the Senate. If the Senate changes it, it goes back to the House before reaching the President.
AI-drafted summary. Verify it against the official text before you act on it.
Three steps: where you stand, your script, the call.
Make the callSee how a call works
Official title
504 Program Risk Oversight Act
- Introduced:
- October 17, 2025
- Latest action:
- January 26, 2026
Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.
Read the official bill on Congress.govMake the call
Three steps: where you stand, your script, the call.