[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4723 Introduced in House (IH)]

103d CONGRESS
  2d Session
                                H. R. 4723

To authorize the Administrator of the Small Business Administration to 
 establish an Accredited Lenders Program for qualified State and local 
                         development companies.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 12, 1994

 Mr. Poshard  introduced the following bill; which was referred to the 
                      Committee on Small Business

_______________________________________________________________________

                                 A BILL


 
To authorize the Administrator of the Small Business Administration to 
 establish an Accredited Lenders Program for qualified State and local 
                         development companies.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. ACCREDITED LENDERS PROGRAM.

    (a) Establishment.--Title V of the Small Business Investment Act of 
1958 (15 U.S.C. 695 et seq.) is amended by adding at the end the 
following new section:

``SEC. 507. ACCREDITED LENDERS PROGRAM.

    ``(a) The Administration is authorized to establish an Accredited 
Lenders Program for qualified State and local development companies 
which meet the requirements of subsection (b).
    ``(b) The Administration may designate a qualified State or local 
development company as an accredited lender if such company--
            ``(1) has been an active participant in the development 
        company program for the 12-month period preceding the 
        designation;
            ``(2) has well-trained, qualified personnel who are 
        knowledgeable in the Administration's lending policies and 
        procedures for the development company program;
            ``(3) has the ability to process, close, and service 
        financing for plant and equipment under section 502 of this 
        Act;
            ``(4) has a loss rate on its debentures that is acceptable 
        to the Administration;
            ``(5) has consistently submitted to the Administration 
        complete and accurate debenture guarantee application packages; 
        and
            ``(6) has demonstrated the ability to serve small business 
        credit needs for financing plant and equipment as provided in 
        section 502 of this Act.
    ``(c) The Administration shall expedite the processing of all loan 
applications and servicing actions submitted by a qualified State or 
local development company that has been designated as an accredited 
lender in accordance with subsection (b).
    ``(d) The designation of a qualified State or local development 
company as an accredited lender may be suspended or revoked if the 
Administration determines that--
            ``(1) the development company has not continued to meet the 
        criteria for eligibility under subsection (b); or
            ``(2) the development company has failed to adhere to the 
        Administration's rules and regulations or is violating any 
        other applicable provision of law.
A suspension or revocation under this subsection shall not affect any 
outstanding debenture guarantee.
    ``(e) For purposes of this section, the term `qualified State or 
local development company' has the meaning given such term in section 
503(e).''.
    (b) Regulations.--Not later than 90 days after the date of the 
enactment of this Act, the Administration shall issue regulations to 
carry out section 507 of the Small Business Investment Act of 1958, as 
added by subsection (a) of this section.
    (c) Annual Report.--
            (1) In general.--Not later than 1 year after the date of 
        the enactment of this Act, and annually thereafter, the 
        Administration shall submit to the Committees on Small Business 
        of the House of Representatives and the Senate a report on the 
        implementation of this section.
            (2) Contents.--Each report to be submitted under paragraph 
        (1) shall contain--
                    (A) data on the number of development companies 
                designated as accredited lenders;
                    (B) data on the debenture guarantee volume of such 
                companies;
                    (C) data on the loss rate on debentures issued by 
                such companies;
                    (D) data on the average processing time on 
                guarantee applications submitted to the Administration 
                by such companies; and
                    (E) such other information as the Administration 
                considers appropriate.
                                 <all>