110 HR 1849 IH: To amend the Federal Credit Union Act and the Small U.S. House of Representatives 2007-03-29 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
I 110th CONGRESS 1st Session H. R. 1849 IN THE HOUSE OF REPRESENTATIVES March 29, 2007 Ms. Velázquez introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the Committee on Small Business, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To amend the Federal Credit Union Act and the Small Business Act to improve small business lending, improve cooperation between the National Credit Union Administration and the Small Business Administration, and for other purposes.
1.
Short title
This Act may be cited as the Credit Union Small Business Lending Act.
2.
Revision of regulatory treatment for SBA loans by credit unions
Section 107A(c)(1)(B) of the Federal Credit Union Act (12 U.S.C. 1757a(c)(1)(B)) is amended— (1)at the end of clause (iv), by striking or; (2)at the end of clause (v), by striking the period and inserting ; or; and (3)by adding at the end the following new clause: (vi)any loan made in cooperation with the Small Business Administration under section 7(a) of the Small Business Act, without regard to whether any portion of such loan is guaranteed or not by the Administrator of such Administration. .
3.
Credit union outreach program
Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is amended by adding at the end the following: (32)
Credit union outreach program
(A)
In general
The Administrator shall carry out a program to provide outreach and assistance to credit unions for the purpose of increasing the participation of credit unions in the 7(a) program. (B)
Simplified application process
In carrying out a program under this paragraph, the Administrator shall take such actions, as appropriate, to simplify the application process for credit union participation in the 7(a) program (C)
Annual report
The Administrator shall submit to Congress an annual report on the efforts made by the Administration to increase the participation of credit unions in the 7(a) program. .
4.
Credit union loan guarantee program
Section 7(a) of the Small Business Act, as amended by section 3, is further amended by adding at the end the following: (33)
Credit union loan guarantee program
(A)
In general
The Administrator shall carry out a program to provide a guaranty of up to 85 percent for loans made by credit unions to members of those credit unions. To be eligible for the program— (i)the amount of the loan may not exceed $250,000; and (ii)the member must reside in an underserved area, or the business assisted by a loan made under this subsection to a member must be located in an underserved area. (B)
Definition
In this paragraph, the term underserved area means a geographic area consisting of one or more population census tracts, that encompass or are located within— (i)an investment area designated under section 103(16) of the Community Development Banking and Financial Institutions Act of 1994; or (ii)a low income community, as defined in section 45D(e) of the Internal Revenue Code of 1986. .
5.
Credit union participation in the section 504 program
Section 107(5)(A)(iii) of the Federal Credit Union Act (12 U.S.C. 1757(5)(A)(iii)) is amended by inserting , and applicable regulations, after specified in the law.