To amend the Federal Credit Union Act to advance the ability of credit unions to promote small business growth and economic development opportunities, and for other purposes.

Summary: Promoting Lending to America's Small Businesses Act of 2009 - Amends the Federal Credit Union Act to increase the total permissible amount of member business loans by an insured credit union (excluding those made to nonprofit religious organizations) to a limit of 25% of the credit union's total assets.

Increases from $50,000 to $250,000 the maximum total extensions of credit a borrower or associated member of an insured credit union may have before any extension of credit shall be considered a member business loan.

Revises the prohibition against an increase in the total amount of member business loans by an undercapitalized insured credit union until it becomes adequately capitalized. Repeals the condition of becoming adequately capitalized, and requires only that the National Credit Union Administration Board approve the increase.

Excludes from the definition of "member business loan" any extension of credit, meeting other specified criteria, that is made to a member for commercial, corporate, business, farm, or agricultural purposes in an underserved area.

SECTION 1. SHORT TITLE.

    The Act may be cited as the ``Promoting Lending to America's Small 
Businesses Act of 2009''.

SEC. 2. LIMITS ON MEMBER BUSINESS LOANS.

    Section 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.''.

SEC. 3. DEFINITION OF MEMBER BUSINESS LOAN.

    Section 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''.

SEC. 4. RESTRICTION ON MEMBER BUSINESS LOANS.

    Section 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''.

SEC. 5. MEMBER BUSINESS LOAN EXCLUSION FOR LOANS TO NONPROFIT RELIGIOUS 
              ORGANIZATIONS.

    Section 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''.

SEC. 6. ENCOURAGING SMALL BUSINESS DEVELOPMENT IN UNDERSERVED URBAN AND 
              RURAL COMMUNITIES.

    (a) Member Business Loan Exclusion for Loans in Underserved 
Areas.--Section 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) Underserved Area Defined.--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.''.