1.The Act may be cited as the
Promoting Lending to America’s Small Businesses Act of
2009
.
2.Limits on member
business loansSection 107A(a)
of the Federal Credit Union Act (12 U.S.C. 1757a(a)) is amended by striking
than the lesser of—
and all that follows and inserting
than 25 percent of the total assets of the credit union.
.
3.Definition of
member business loanSection
107A(c)(1)(B)(iii) of the Federal Credit Union Act (12 U.S.C.
1757a(c)(1)(B)(iii)) is amended by striking $50,000
and
inserting an amount, not to exceed $250,000, that the Board shall
prescribe by regulation
.
4.Restriction on
member business loansSection
216(g)(2) of the Federal Credit Union Act (12 U.S.C. 1790d(g)(2)) is amended by
striking until such time as the credit union becomes adequately
capitalized
and inserting unless otherwise approved by the
Board
.
5.Member business
loan exclusion for loans to nonprofit religious organizationsSection 107A(a) of the Federal Credit Union
Act (12 U.S.C. 1757a(a)) is further amended by inserting , excluding
loans made to nonprofit religious organizations,
after total
amount of such loans
.
6.Encouraging small
business development in underserved urban and rural communities
(a)Member business
loan exclusion for loans in underserved areasSection 107A(c)(1)(B) of the Federal Credit
Union Act (12 U.S.C. 1757a(c)(1)(B)) is amended—
(1)by striking
or
after the semicolon at the end of clause (iv);
(2)by redesignating
clause (v) as clause (vi); and
(3)by inserting after
clause (iv) the following new clause:
(v)that is made to a member, the proceeds of
which are to be used for commercial, corporate, business, farm, or agricultural
purposes in an underserved area if such extension of credit—
(I)is made to a person or organization whose
principal residence or place of business is located within an underserved area
(as defined in section 101(10)) served by the credit union, and is not a
business, or a local outlet of a business, operating on a nationwide basis (for
purposes of this subclause, a locally owned franchise that consists only of
local operations shall not be treated as a business operating on a nationwide
basis); or
(II)is secured by real property located within,
or is intended to operate as part of a business located within, such
underserved area;
or
.
(b)Section 101 of the Federal Credit Union Act (12 U.S.C.
1752) is amended—
(1)by striking
and
at the end of paragraph (8);
(2)by striking the
period at the end of paragraph (9) and inserting ; and
;
and
(3)by adding at the
end the following new paragraph:
(10)The term underserved
area
—
(A)means a geographic
area consisting of a single census tract or a group of census tracts, each of
which—
(i)meets the criteria
for—
(I)a low income community, as defined in
section 45D(e) of the Internal Revenue Code of 1986; or
(II)an investment area, as defined and
designated under section 103(16) of the Community Development Banking and
Financial Institutions Act of 1994; and
(ii)is not a tract in which 50 percent or more
of the resident families have annual incomes in excess of $75,000 (as adjusted
periodically by the Board, at the discretion of the Board, to reflect changes
in the average Consumer Price Index for all-urban consumers published by the
Department of Labor); and
(B)notwithstanding subparagraph (A), includes,
with respect to any Federal credit union, any geographic area within which such
credit union—
(i)has received approval to provide service
before the date of the enactment of the Promoting Lending to America’s Small
Businesses Act of 2009 from the National Credit Union Administration;
and
(ii)has established a service facility before
such date of
enactment.
.