II 

117TH CONGRESS 

2D SESSION S. 5102 

To authorize the Community Advantage Loan Program of the Small Business 

Administration, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

NOVEMBER 16, 2022 

Mr. CARDIN introduced the following bill; which was read twice and referred 

to the Committee on Small Business and Entrepreneurship 

A BILL 

To authorize the Community Advantage Loan Program of 

the Small Business Administration, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Community Advantage 

5 Loan Program Permanency Act of 2022’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds that— 

8 (1) capital access remains one of the largest 

9 barriers to overcome for socially and economically 


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1 disadvantaged business owners as well as for the 

2 smallest small businesses; 

3 (2) according to the Double Jeopardy: COVID– 

4 19’s Concentrated Health and Wealth Effects in 

5 Black Communities study conducted by the Federal 

6 Reserve banks, in 2020— 

7 (A) firms owned by people of color are 

8 more likely to have weak capitalizations, limited 

9 bank relationships, and little in cash reserves; 

10 and 

11 (B) 51 percent of Black-owned businesses 

12 have less than 3 months of cash reserves in 

13 case of an emergency, which is nearly 7 per14 centage points higher than their peers; 

15 (3) according to the Small Business Credit Sur16 vey conducted by the Federal Reserve banks, in 

17 2021— 

18 (A) 31 percent of firms that sought financ19 ing received the full financing sought by the 

20 firm; 

21 (B) firms owned by people of color were 

22 least likely to receive the full amount of financ23 ing sought by the firm, with 15 percent of 

24 Asian-owned businesses, 16 percent of Black25 owned businesses, and 19 percent of HispanicVerDate Sep 11 2014 17:58 Nov 18, 2022 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S5102.IS S5102

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1 owned businesses receiving full financing, as op2 posed to 35 percent of non-Hispanic White3 owned businesses receiving full financing; and 

4 (C) firms with fewer employees were also 

5 least likely to receive the full financing sought 

6 by the firm, with 23 percent of businesses with 

7 1 to 4 employees and 37 percent of businesses 

8 with 5 to 49 employees receiving full financing, 

9 as opposed to 55 percent of businesses with 50 

10 to 499 employees receiving full financing; 

11 (4) the Community Advantage Pilot Program of 

12 the Small Business Administration has helped in13 crease lending backed by the Administration to firms 

14 owned by people of color, women, and veterans and 

15 firms classified as start ups; 

16 (5) from fiscal year 2018 to fiscal year 2022— 

17 (A) 13 percent of loans under the Commu18 nity Advantage Pilot Program went to Black 

19 business owners, while 4 percent of loans under 

20 the loan program under section 7(a) of the 

21 Small Business Act (15 U.S.C. 636(a)) (in this 

22 section referred to as the ‘‘7(a) loan program’’) 

23 went to Black business owners; 

24 (B) 15 percent of loans under the Commu25 nity Advantage Pilot Program went to Hispanic 


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1 business owners, while 8 percent of loans under 

2 the 7(a) loan program went to Hispanic busi3 ness owners; 

4 (C) 20 percent of loans under the Commu5 nity Advantage Pilot Program went to women 

6 business owners, while 17 percent of loans 

7 under the 7(a) loan program went to women 

8 business owners; and 

9 (D) 9 percent of loans under the Commu10 nity Advantage Pilot Program went to veteran 

11 business owners, while 5 percent of loans under 

12 the 7(a) loan program went to veteran business 

13 owners; and 

14 (6) from fiscal year 2020 to fiscal year 2021, 

15 14 percent of loans under the Community Advantage 

16 Pilot Program went to startup business owners, 

17 while 7 percent of loans under the 7(a) loan pro18 gram went to startup business owners. 

19 SEC. 3. COMMUNITY ADVANTAGE LOAN PROGRAM. 

20 (a) IN GENERAL.—Section 7(a) of the Small Busi21 ness Act (15 U.S.C. 636(a)) is amended by adding at the 

22 end the following: 

23 ‘‘(38) COMMUNITY ADVANTAGE LOAN PRO24 GRAM.— 


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1 ‘‘(A) PURPOSES.—The purposes of the 

2 Community Advantage Loan Program are— 

3 ‘‘(i) to create a mission-oriented loan 

4 guarantee program that builds on the dem5 onstrated success of the Community Ad6 vantage Pilot Program of the Administra7 tion, as established in 2011, to reach more 

8 underserved small business concerns; 

9 ‘‘(ii) to increase lending to small busi10 ness concerns in underserved and rural 

11 markets, including veterans and members 

12 of the military community, socially and 

13 economically disadvantaged individuals, as 

14 described in paragraphs (5) and (6)(A) of 

15 section 8(a), respectively, women, and new 

16 businesses; 

17 ‘‘(iii) to ensure that the program 

18 under this subsection expands inclusion 

19 and more broadly meets congressional in20 tent to reach borrowers who are unable to 

21 get credit elsewhere on reasonable terms 

22 and conditions; 

23 ‘‘(iv) to help underserved small busi24 ness concerns become bankable by utilizing 

25 the small dollar financing and business 


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1 support experience of mission-oriented 

2 lenders; 

3 ‘‘(v) to allow certain mission-oriented 

4 lenders, primarily financial intermediaries 

5 focused on economic development in under6 served markets, access to guarantees for 

7 loans under this subsection (in this para8 graph referred to as ‘7(a) loans’) of not 

9 more than $350,000 and provide manage10 ment and technical assistance to small 

11 business concerns as needed; 

12 ‘‘(vi) to provide certainty for the lend13 ing partners that make loans under this 

14 subsection and to attract new lenders; 

15 ‘‘(vii) to encourage collaboration be16 tween mission-oriented and conventional 

17 lenders under this subsection in order to 

18 support underserved small business con19 cerns; and 

20 ‘‘(viii) to assist covered institutions 

21 with providing business support services 

22 and technical assistance to small business 

23 concerns, when needed. 

24 ‘‘(B) DEFINITIONS.—In this paragraph— 


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1 ‘‘(i) the term ‘Community Advantage 

2 Network Partner’— 

3 ‘‘(I) means a nonprofit, mission4 oriented organization that acts as a 

5 Referral Agent to covered institutions 

6 in order to expand the reach of the 

7 program to small businesses in under8 served markets; and 

9 ‘‘(II) does not include a covered 

10 institution making loans under the 

11 program; 

12 ‘‘(ii) the term ‘covered institution’ 

13 means an entity that— 

14 ‘‘(I) is— 

15 ‘‘(aa) a development com16 pany, as defined in section 103 of 

17 the Small Business Investment 

18 Act of 1958 (15 U.S.C. 662), 

19 participating in the 504 Loan 

20 Guaranty program established 

21 under title V of that Act (15 

22 U.S.C. 695 et seq.); 

23 ‘‘(bb) a nonprofit inter24 mediary, as defined in subsection 

25 (m)(11), participating in the 


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1 microloan program under sub2 section (m); 

3 ‘‘(cc) a non-Federally regu4 lated entity or a lending institu5 tion certified as a community de6 velopment financial institution by 

7 the Community Development Fi8 nancial Institutions Fund estab9 lished under section 104(a) of 

10 the Riegle Community Develop11 ment and Regulatory Improve12 ment Act of 1994 (12 U.S.C. 

13 4703(a)); or 

14 ‘‘(dd) an eligible inter15 mediary, as defined in subsection 

16 (l)(1), participating in the Inter17 mediary Lending Program estab18 lished under subsection (l)(2); 

19 and 

20 ‘‘(II) has approved and disbursed 

21 10 similarly sized loans in the pre22 ceding 24-month period and is serv23 icing not less than 10 similarly sized 

24 loans to small business concerns in 

25 the portfolio of the entity; 


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1 ‘‘(iii) the term ‘existing business’ 

2 means a small business concern that has 

3 been in existence for not less than 2 years 

4 on the date on which a loan is made to the 

5 small business concern under the program; 

6 ‘‘(iv) the term ‘new business’ means a 

7 small business concern that has been in ex8 istence for not more than 2 years on the 

9 date on which a loan is made to the small 

10 business concern under the program; 

11 ‘‘(v) the term ‘program’ means the 

12 Community Advantage Loan Program es13 tablished under subparagraph (C); 

14 ‘‘(vi) the term ‘Referral Agent’ has 

15 the meaning given the term in section 

16 103.1(f) of title 13, Code of Federal Regu17 lations, or any successor regulation; 

18 ‘‘(vii) the term ‘rural area’ means any 

19 county that the Bureau of the Census has 

20 defined as mostly rural or completely rural 

21 in the most recent decennial census; and 

22 ‘‘(viii) the term ‘small business con23 cern in an underserved market’ means a 

24 small business concern— 

25 ‘‘(I) that is located in— 


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1 ‘‘(aa) a low- to moderate-in2 come community; 

3 ‘‘(bb) a HUBZone, as that 

4 term is defined in section 31(b); 

5 ‘‘(cc) a rural area; or 

6 ‘‘(dd) any area for which a 

7 disaster declaration or determina8 tion described in subparagraph 

9 (A), (B), (C), or (E) of sub10 section (b)(2) has been made 

11 that has not terminated more 

12 than 2 years before the date (or 

13 later, as determined by the Ad14 ministrator) on which a loan is 

15 made to the small business con16 cern under the program, except 

17 that, in the case of a major dis18 aster described in subsection 

19 (b)(2)(A), that period shall be 5 

20 years; 

21 ‘‘(II) for which more than 50 

22 percent of the employees reside in a 

23 low- or moderate-income community; 

24 ‘‘(III) that is a new business; 


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1 ‘‘(IV) owned and controlled by 

2 socially and economically disadvan3 taged individuals, as described in 

4 paragraphs (5) and (6)(A) of section 

5 8(a), respectively, which the Adminis6 trator, in carrying out the program, 

7 shall presume includes Black Ameri8 cans, Hispanic Americans, Native 

9 Americans, Asian Pacific Americans, 

10 and other minorities; 

11 ‘‘(V) owned and controlled by 

12 women; 

13 ‘‘(VI) owned and controlled by 

14 veterans or spouses of veterans; 

15 ‘‘(VII) owned and controlled by a 

16 member of an Indian Tribe individ17 ually identified (including parentheti18 cally) in the most recent list published 

19 pursuant to section 104 of the Feder20 ally Recognized Indian Tribe List Act 

21 of 1994 (25 U.S.C. 5131); 

22 ‘‘(VIII) owned and controlled by 

23 an individual who has completed a 

24 term of imprisonment in a Federal, 

25 State, or local jail or prison; 


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1 ‘‘(IX) owned and controlled by an 

2 individual with a disability, as that 

3 term is defined in section 3 of the 

4 Americans with Disabilities Act of 

5 1990 (42 U.S.C. 12102); or 

6 ‘‘(X) as otherwise determined by 

7 the Administrator. 

8 ‘‘(C) ESTABLISHMENT.—There is estab9 lished a Community Advantage Loan Program 

10 under which the Administration may guarantee 

11 loans made by covered institutions under this 

12 subsection, with an emphasis on loans made to 

13 small business concerns in underserved mar14 kets. 

15 ‘‘(D) PROGRAM LEVELS.—In fiscal year 

16 2023 and each fiscal year thereafter, not more 

17 than 10 percent of the number of loans guaran18 teed under this subsection may be guaranteed 

19 under the program. 

20 ‘‘(E) GRANDFATHERING OF EXISTING

21 LENDERS.—Any covered institution that ac22 tively participated in the Community Advantage 

23 Pilot Program of the Administration and is in 

24 good standing, as determined by the AdminisVerDate Sep 11 2014 17:58 Nov 18, 2022 Jkt 039200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S5102.IS S5102

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1 tration, on the day before the date of enactment 

2 of this paragraph— 

3 ‘‘(i) shall retain designation in the 

4 program; 

5 ‘‘(ii) shall not be required to submit 

6 an application to participate in the pro7 gram; and 

8 ‘‘(iii) for the purpose of determining 

9 the loan loss reserve amount of the covered 

10 institution, shall have participation in the 

11 Community Advantage Pilot Program in12 cluded in the calculation under subpara13 graph (J). 

14 ‘‘(F) REQUIREMENT TO MAKE LOANS TO

15 UNDERSERVED MARKETS.—Not less than 70 

16 percent of loans made by a covered institution 

17 under the program shall consist of loans made 

18 to small business concerns in underserved mar19 kets. 

20 ‘‘(G) MAXIMUM LOAN AMOUNT.—The max21 imum loan amount for a loan guaranteed under 

22 the program is $350,000. 

23 ‘‘(H) INTEREST RATES.—The maximum 

24 allowable interest rate prescribed by the Admin25 istration on any financing made on a deferred 


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1 basis pursuant to the program shall not exceed 

2 the maximum allowable interest rate under sec3 tions 120.213 and 120.214 of title 13, Code of 

4 Federal Regulations, or any successor regula5 tions. 

6 ‘‘(I) REFINANCING OF COMMUNITY ADVAN7 TAGE PROGRAM LOANS.—A loan guaranteed 

8 under the program or guaranteed under the 

9 Community Advantage Pilot Program of the 

10 Administration may be refinanced into another 

11 7(a) loan made by lender that does not partici12 pate in the program. 

13 ‘‘(J) LOAN LOSS RESERVE REQUIRE14 MENTS.— 

15 ‘‘(i) LOAN LOSS RESERVE ACCOUNT

16 FOR COVERED INSTITUTIONS.—A covered 

17 institution— 

18 ‘‘(I) with not more than 5 years 

19 of participation in the program shall 

20 maintain a loan loss reserve account 

21 with an amount equal to 5 percent of 

22 the outstanding amount of the 

23 unguaranteed portion of the loan 

24 portfolio of the covered institution 

25 under the program; and 


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1 ‘‘(II) with more than 5 years of 

2 participation in the program shall 

3 maintain a loan loss reserve account 

4 with an amount equal to the average 

5 repurchase rate of the covered institu6 tion over the preceding 36-month pe7 riod. 

8 ‘‘(ii) ADDITIONAL LOAN LOSS RE9 SERVE AMOUNT FOR SELLING LOANS ON

10 THE SECONDARY MARKET.—In addition to 

11 the amount required in the loan loss re12 serve account under clause (i), a covered 

13 institution that sells a program loan on the 

14 secondary market shall be required to 

15 maintain the following additional amounts 

16 in the loan loss reserve account: 

17 ‘‘(I) An amount equal to 2 per18 cent of the guaranteed portion of each 

19 program loan sold on the secondary 

20 market for lenders with less than 5 

21 years experience selling program loans 

22 on the secondary market. 

23 ‘‘(II) An amount equal to the av24 erage repurchase rate for loans sold 

25 by the lender on the secondary market 


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1 over the preceding 36 months for 

2 lenders with more than 5 years experi3 ence selling program loans on the sec4 ondary market. 

5 ‘‘(iii) RECALCULATION.—The loan 

6 loss reserve required under clauses (i) and 

7 (ii) shall be recalculated on October 1 of 

8 each year. 

9 ‘‘(K) TRAINING.—The Administration— 

10 ‘‘(i) shall provide accessible upfront 

11 and ongoing training for covered institu12 tions making loans under the program to 

13 support program compliance and improve 

14 the interface between the covered institu15 tions and the Administration, which shall 

16 include— 

17 ‘‘(I) guidance for following the 

18 regulations of the Administration; and 

19 ‘‘(II) guidance specific to mis20 sion-oriented lending that is intended 

21 to help lenders effectively reach and 

22 support underserved small business 

23 concerns, including management and 

24 technical assistance delivery; 


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1 ‘‘(ii) shall ensure that the training de2 scribed in clause (i) is provided for free or 

3 at a low cost; 

4 ‘‘(iii) may enter into a contract to 

5 provide the training described in clause (i) 

6 with an organization with expertise in 

7 lending under this subsection and pri8 marily specializing in mission-oriented 

9 lending, and lending to underserved mar10 kets; and 

11 ‘‘(iv) shall provide training for the 

12 employees and contractors of the Adminis13 tration that regularly engage with covered 

14 institutions or borrowers in the program. 

15 ‘‘(L) COMMUNITY ADVANTAGE OUTREACH

16 AND EDUCATION.—The Administrator— 

17 ‘‘(i) shall develop and implement a 

18 program to promote to, conduct outreach 

19 to, and educate prospective covered institu20 tions about the program, with a focus on 

21 women- and minority-owned covered insti22 tutions; and 

23 ‘‘(ii) may enter into a contract with 1 

24 or more nonprofit organizations experi25 enced in working with and training mission 


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1 driven lenders to provide the outreach and 

2 education described in clause (i). 

3 ‘‘(M) COMMUNITY ADVANTAGE NETWORK

4 PARTNER PARTICIPATION.— 

5 ‘‘(i) IN GENERAL.—A covered institu6 tion that uses a Community Advantage 

7 Network Partner shall abide by policies 

8 and procedures of the Administration con9 cerning the use of Referral Agent fees per10 mitted by the Administration and disclo11 sure of those fees. 

12 ‘‘(ii) PAYMENT OF FEES.—Notwith13 standing any other provision of law, all 

14 fees described in clause (i) shall be paid by 

15 the covered institution to the Community 

16 Advantage Network Partner upon dis17 bursement of the applicable program loan. 

18 ‘‘(N) DELEGATED AUTHORITY.—A covered 

19 institution is not eligible to receive delegated 

20 authority from the Administration under the 

21 program until the covered institution has ap22 proved and fully disbursed not less than 10 

23 loans under the program and the Administra24 tion had evaluated the ability of the covered in25 stitution to fulfill program requirements. 


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1 ‘‘(O) REPORTING.— 

2 ‘‘(i) WEEKLY REPORTS.— 

3 ‘‘(I) IN GENERAL.—The Admin4 istration shall report on the website of 

5 the Administration, as part of the 

6 weekly reports on lending approvals 

7 under this subsection— 

8 ‘‘(aa) on and after the date 

9 of enactment of this paragraph, 

10 the number and dollar amount of 

11 loans guaranteed under the Com12 munity Advantage Pilot Program 

13 of the Administration; and 

14 ‘‘(bb) on and after the date 

15 on which the Administration be16 gins to approve loans under the 

17 program, the number and dollar 

18 amount of loans guaranteed 

19 under the program. 

20 ‘‘(II) SEPARATE ACCOUNTING.— 

21 The number and dollar amount of 

22 loans reported in a weekly report 

23 under subclause (I) for loans guaran24 teed under the Community Advantage 

25 Pilot Program of the Administration 


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1 and under the program shall include a 

2 breakdown by the categories of race, 

3 ethnicity, and gender of the owners of 

4 the small business concerns, by wheth5 er the small business concern is a new 

6 or existing small business concern, 

7 and by whether the small business 

8 concern is located in an urban or 

9 rural area, and broken down by— 

10 ‘‘(aa) loans of not more than 

11 $50,000; 

12 ‘‘(bb) loans of more than 

13 $50,000 and not more than 

14 $150,000; 

15 ‘‘(cc) loans of more than 

16 $150,000 and not more than 

17 $250,000; and 

18 ‘‘(dd) loans of more than 

19 $250,000 and not more than 

20 $350,000. 

21 ‘‘(ii) ANNUAL REPORTS.— 

22 ‘‘(I) IN GENERAL.—For each fis23 cal year in which the program is in ef24 fect, the Administration shall submit 

25 to the Committee on Small Business 


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1 and Entrepreneurship of the Senate 

2 and the Committee on Small Business 

3 of the House of Representatives, and 

4 make publicly available on the inter5 net, information about loans provided 

6 under the program and under the 

7 Community Advantage Pilot Program 

8 of the Administration. 

9 ‘‘(II) CONTENTS.—Each report 

10 submitted and made publicly available 

11 under subclause (I) shall include— 

12 ‘‘(aa) the number and dollar 

13 amounts of loans provided to 

14 small business concerns under 

15 the program, including a break16 down by— 

17 ‘‘(AA) the gender of the 

18 owners of the small business 

19 concern; 

20 ‘‘(BB) the race and 

21 ethnicity of the owners of 

22 the small business concern, 

23 disaggregated in a manner 

24 that captures all the racial 

25 groups specified in the 


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1 American Community Sur2 vey conducted by the Bu3 reau of the Census; 

4 ‘‘(CC) whether the 

5 small business concern is lo6 cated in an urban or rural 

7 area; and 

8 ‘‘(DD) whether the 

9 small business concern is an 

10 existing business or a new 

11 business, as provided in the 

12 weekly reports on lending 

13 approvals under this sub14 section; 

15 ‘‘(bb) the proportion of loans 

16 described in item (aa) compared 

17 to— 

18 ‘‘(AA) other 7(a) loans 

19 of any amount; 

20 ‘‘(BB) other 7(a) loans 

21 of similar amounts; 

22 ‘‘(CC) express loans 

23 provided under paragraph 

24 (31) of similar amounts; and 


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1 ‘‘(DD) other 7(a) loans 

2 of similar amounts provided 

3 to small business concerns 

4 in underserved markets; 

5 ‘‘(cc) a comparison of the 

6 number and dollar amounts of 

7 loans provided to small business 

8 concerns under the program and 

9 under each category of loans de10 scribed in item (aa), broken down 

11 by— 

12 ‘‘(AA) loans of not 

13 more than $50,000; 

14 ‘‘(BB) loans of more 

15 than $50,000 and not more 

16 than $150,000; 

17 ‘‘(CC) loans of more 

18 than $150,000 and not more 

19 than $250,000; and 

20 ‘‘(DD) loans of more 

21 than $250,000 and not more 

22 than $350,000; 

23 ‘‘(dd) the number and dollar 

24 amounts of loans provided to 

25 small business concerns under 


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1 the program by State, and the 

2 jobs created or retained within 

3 each State; 

4 ‘‘(ee) a list of covered insti5 tutions participating in the pro6 gram and the Community Advan7 tage Pilot Program of the Ad8 ministration, including— 

9 ‘‘(AA) the name, loca10 tion, and contact informa11 tion, such as the website and 

12 telephone number, of each 

13 covered institution; and 

14 ‘‘(BB) a breakdown by 

15 the number and dollar 

16 amount of the loans ap17 proved for small business 

18 concerns; and 

19 ‘‘(ff) the benchmarks estab20 lished by the Community Advan21 tage Working Group under sub22 paragraph (O)(i). 

23 ‘‘(III) TIMING.—An annual re24 port required under this clause 

25 shall— 


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1 ‘‘(aa) be submitted and 

2 made publicly available not later 

3 than December 1 of each year; 

4 and 

5 ‘‘(bb) cover the lending ac6 tivity for the fiscal year that 

7 ended on September 30 of that 

8 same year. 

9 ‘‘(P) GAO REPORT.—Not later than 5 

10 years after the date of enactment of this para11 graph, the Comptroller General of the United 

12 States shall submit to the Administrator, the 

13 Committee on Small Business and Entrepre14 neurship of the Senate, and the Committee on 

15 Small Business of the House of Representatives 

16 a report— 

17 ‘‘(i) assessing— 

18 ‘‘(I) the extent to which the pro19 gram fulfills the requirements of this 

20 paragraph; and 

21 ‘‘(II) the performance of covered 

22 institutions participating in the pro23 gram; and 

24 ‘‘(ii) providing recommendations on 

25 the administration of the program and the 


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1 findings under subclauses (I) and (II) of 

2 clause (i). 

3 ‘‘(Q) COMMUNITY ADVANTAGE WORKING

4 GROUP.— 

5 ‘‘(i) IN GENERAL.—Not later than 90 

6 days after the date of enactment of this 

7 paragraph, the Administrator shall estab8 lish a Community Advantage Working 

9 Group, which shall— 

10 ‘‘(I) include— 

11 ‘‘(aa) a geographically di12 verse representation of members 

13 from among covered institutions 

14 participating in the program; and 

15 ‘‘(bb) representatives from 

16 the Office of Capital Access of 

17 the Administration, including the 

18 Office of Credit Risk Manage19 ment, the Office of Financial As20 sistance, and the Office of Eco21 nomic Opportunity; 

22 ‘‘(II) develop recommendations 

23 on how the Administration can effec24 tively manage, support, and promote 


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1 the program and the mission of the 

2 program; 

3 ‘‘(III) establish metrics of suc4 cess and benchmarks that reflect the 

5 mission and population served by cov6 ered institutions under the program, 

7 which the Administration shall use to 

8 evaluate the performance of those cov9 ered institutions; 

10 ‘‘(IV) establish criteria assessing 

11 the business support services and 

12 technical assistance needs of bor13 rowers and methods to assess lender 

14 expertise to provide necessary services 

15 and assistance; and 

16 ‘‘(V) institute regular and sus17 tainable systems of communication be18 tween the Administration and covered 

19 institutions participating in the pro20 gram. 

21 ‘‘(ii) REPORT.—Not later than 1 year 

22 after the date of enactment of this para23 graph, the Administrator shall submit to 

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1 mittee on Small Business of the House of 

2 Representatives a report that includes— 

3 ‘‘(I) the recommendations of the 

4 Community Advantage Working 

5 Group established under clause (i); 

6 and 

7 ‘‘(II) a recommended plan and 

8 timeline for implementation of those 

9 recommendations. 

10 ‘‘(R) REGULATIONS.— 

11 ‘‘(i) IN GENERAL.—Not later than 

12 180 days after the date of enactment of 

13 this paragraph, the Administrator shall 

14 promulgate regulations governing the pro15 gram, including metrics for lender per16 formance, metrics of success and bench17 marks of the program, and criteria for ap18 propriate management and technical as19 sistance. 

20 ‘‘(ii) UPDATES.—The Administrator 

21 shall consult the report issued under sub22 paragraph (P)(ii) and, not later than 180 

23 days after submission of the report, pro24 mulgate any necessary changes to existing 

25 regulations of the Administration based on 


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1 the recommendations contained in the re2 port. 

3 ‘‘(S) AUTHORIZATION OF APPROPRIA4 TIONS.—There is authorized to be appropriated 

5 such sums as may be necessary to conduct out6 reach and education described in subparagraph 

7 (L).’’. 

8 (b) PARTICIPATION.—Section 7(a)(2) of the Small 

9 Business Act (15 U.S.C. 636(a)(2)) is amended— 

10 (1) in subparagraph (A), in the matter pre11 ceding clause (i), by striking ‘‘and (F)’’ and insert12 ing ‘‘(F), and (G)’’; and 

13 (2) by adding at the end the following: 

14 ‘‘(G) PARTICIPATION IN THE COMMUNITY

15 ADVANTAGE LOAN PROGRAM.—In an agreement 

16 to participate in a loan on a deferred basis 

17 under paragraph (38), the participation by the 

18 Administration shall be— 

19 ‘‘(i) 80 percent of the balance of the 

20 financing outstanding at the time of the 

21 disbursement of the loan, if that balance is 

22 more than $150,000 and not more than 

23 $350,000; or 

24 ‘‘(ii) 90 percent of the balance of the 

25 financing outstanding at the time of the 


pamtmann on DSKBC07HB2PROD with BILLS
30 

•S 5102 IS

1 disbursement of the loan, if that balance is 

2 not more than $150,000.’’. 

Æ 


pamtmann on DSKBC07HB2PROD with BILLS