H.R. 5788 would require the Small Business Administration (SBA) to conduct an annual risk analysis of the loans guaranteed under Title V of the Small Business Investment Act. The bill would require the SBA to report to the Congress and the public on the results of that risk analysis.
The SBA already collects much, but not all, of the information that would be included in the report. On the basis of information from the agency, CBO anticipates that modifying SBA’s loan submission and management system to collect the remaining information required under the bill would cost $250,000. Additionally, on the basis of information about the cost of a similar risk analysis and report, CBO estimates that completing the analysis and preparing the report would increase SBA’s annual workload by the equivalent of half a full-time employee. Annual compensation and benefits for a full-time employee would average $190,000. In total, CBO estimates that implementing H.R. 5788 would cost less than $500,000 in each year and total $1 million over the 2026-2030 period. Any spending would be subject to the availability of appropriated funds.
The CBO staff contact for this estimate is David Rafferty. The estimate was reviewed by Christina Hawley Anthony, Deputy Director of Budget Analysis.
