Feenstra Supports Legislation to Combat SBA Loan Fraud

WASHINGTON, D.C. – Today, U.S. Rep. Randy Feenstra (R-Hull) voted for, and the U.S. House of Representatives passed, the 7(a)Loan Agent Oversight Act, which would require the U.S. Small Business Administration to provide annual reports to Congress on loan agents, which serve as intermediaries, for the SBA 7(a) program.

“Ensuring that our small businesses have access to reliable, affordable capital is important for economic growth and rural development in Iowa. The SBA’s flagship loan program – the 7(a) loan program – helps facilitate this investment by assisting job creators on Main Street with securing financing. However, a percentage of this program uses loan agents, which have a history of fraud, to disburse small business loans,” said Rep. Feenstra. “It’s why I voted for legislation to conduct vigorous oversight of this program so that small businesses get the financial resources that they need to grow, hire, and invest while protecting taxpayer dollars and combatting fraud. Under President Trump, we are eliminating waste, fraud, and abuse in the federal government, and this legislation will further that mission at the SBA.”

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