[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 2235 Introduced in Senate (IS)]

103d CONGRESS
  2d Session
                                S. 2235

  To authorize the establishment of an Accredited Lenders Program for 
qualified State or local development companies under the Small Business 
 Investment Act of 1958 and an Accredited Loan Packagers Pilot Program 
            for loan packagers under the Small Business Act.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                June 23 (legislative day, June 7), 1994

 Mr. Wellstone introduced the following bill; which was read twice and 
              referred to the Committee on Small Business

_______________________________________________________________________

                                 A BILL


 
  To authorize the establishment of an Accredited Lenders Program for 
qualified State or local development companies under the Small Business 
 Investment Act of 1958 and an Accredited Loan Packagers Pilot Program 
            for loan packagers under the Small Business Act.

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

SECTION 1. ACCREDITED LENDERS PROGRAM.

    Title V of the Small Business Investment Act of 1958 (15 U.S.C. 695 
et seq.) is amended by inserting after section 504 the following new 
section:

``SEC. 504A. ACCREDITED LENDERS PROGRAM.

    ``(a) In General.--The Administration shall establish an Accredited 
Lenders Program for qualified State or local development companies that 
meet the requirements of subsection (b).
    ``(b) Designation of Accredited Lenders.--The Administration shall 
designate a qualified State or local development company as an 
accredited lender if such company--
            ``(1) demonstrates adequate knowledge of applicable laws 
        and regulations concerning the guaranteed loan program under 
        section 504;
            ``(2) demonstrates proficiency in meeting the requirements 
        of such guaranteed loan program; and
            ``(3) meets such other requirements as the Administration 
        may prescribe by regulation.
    ``(c) Expedited Processing.--The Administration may expedite the 
processing of any loan application or servicing action submitted by a 
qualified State or local development company that has been designated 
as an accredited lender in accordance with subsection (b).
    ``(d) Suspension or Revocation of Designation.--The designation of 
a qualified State or local development company as an accredited lender 
shall be suspended or revoked if the Administration determines that--
            ``(1) the development company is not adhering to the 
        Administration's rules and regulations or is violating any 
        other applicable provision of law; or
            ``(2) the loss experience of the development company is 
        excessive as compared to other lenders;
but such suspension or revocation shall not affect any outstanding loan 
guarantee.
    ``(e) Definition.--For purposes of this section, the term 
`qualified State or local development company' has the same meaning as 
in section 503(e).
    ``(f) Regulations.--The Administration shall promulgate such 
regulations as may be necessary to carry out this section.''.

SEC. 2. ACCREDITED LOAN PACKAGERS PILOT PROGRAM.

    Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is 
amended by adding at the end the following new paragraph:
            ``(22) Accredited loan packagers pilot program.--
                    ``(A) In general.--The Administration shall 
                establish an Accredited Loan Packagers Pilot Program 
                (hereafter in this paragraph referred to as the 
                `Program') for loan packagers, which shall be 
                administered in accordance with subparagraphs (B) 
                through (G).
                    ``(B) Designation of accredited loan packagers.--
                            ``(i) Qualifications.--Subject to the 
                        limitation contained in clause (ii), the 
                        Administration may designate a loan packager as 
                        an accredited loan packager if such loan 
                        packager--
                                    ``(I) is located in a rural area in 
                                which, in the determination of the 
                                Administration, there is a severe 
                                shortage or an absence of lenders that 
                                have been designated as--
                                            ``(aa) certified lenders 
                                        under the Certified Lenders 
                                        Program authorized by paragraph 
                                        (19); or
                                            ``(bb) preferred lenders 
                                        under the Preferred Lenders 
                                        Program authorized by section 
                                        5(b)(7);
                                    ``(II) demonstrates adequate 
                                knowledge of applicable laws and 
                                regulations concerning guaranteed loan 
                                programs under this subsection;
                                    ``(III) demonstrates proficiency in 
                                meeting the requirements of such 
                                guaranteed loan programs; and
                                    ``(IV) meets such other 
                                requirements as the Administration may 
                                prescribe by regulation.
                            ``(ii) Total number.--In carrying out the 
                        Program, the Administration shall designate not 
                        less than 10 and not more than 15 loan 
                        packagers as accredited loan packagers.
                    ``(C) Expedited processing.--During the 3-year 
                period described in subparagraph (G), the 
                Administration may expedite the processing of any loan 
                application or servicing action prepared by a loan 
                packager that has been designated as an accredited loan 
                packager in accordance with subparagraph (B).
                    ``(D) Suspension or revocation of designation.--The 
                designation of a loan packager as an accredited loan 
                packager shall be suspended or revoked if the 
                Administration determines that--
                            ``(i) the loan packager is not adhering to 
                        the Administration's rules and regulations or 
                        is violating any other applicable provision of 
                        law; or
                            ``(ii) the loss experience of the loan 
                        packager is excessive as compared to other loan 
                        packagers;
                but such suspension or revocation shall not affect any 
                outstanding loan guarantee.
                    ``(E) Definition.--For purposes of this paragraph, 
                the term `loan packager' means any--
                            ``(i) qualified State or local development 
                        company, as such term is defined in section 
                        503(e) of the Small Business Investment Act of 
                        1958; or
                            ``(ii) other regional or local development 
                        organization selected by the Administration.
                    ``(F) Regulations.--The Administration shall 
                promulgate such regulations as may be necessary to 
                carry out this paragraph.
                    ``(G) Sunset.--The Program shall terminate 3 years 
                after the date of enactment of this paragraph.''.

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