This bill strengthens oversight of the Small Business Administration's 504 loan program, which helps small businesses get financing for equipment and real estate. The main changes create a more powerful Office of Credit Risk Management to watch over the companies that manage these loans.

Here's what the bill does: It requires the SBA's oversight office to regularly review loan files to catch problems before they cost taxpayers money. The office must now directly supervise inspections of lending companies and report findings within 90 days. The bill also gives the office new enforcement tools—it can now issue warnings for minor violations and, with approval from a committee, impose penalties up to $250,000 for serious rule-breaking. Companies that miss deadlines for required reports can be temporarily suspended from the program or fined up to $10,000.

The bill also requires the SBA to publish an annual report to Congress analyzing the risks in the 504 loan portfolio, including which industries are getting the most loans and which lending companies pose the biggest risks. Finally, starting one year after the bill passes, the SBA can charge lending companies a small fee (up to one basis point, or 0.01% of their loan portfolio value) to cover the costs of these oversight activities. The bill also requires the SBA to issue clear rules within six months explaining how lending companies must follow environmental protection laws when approving loans.