I 

112TH CONGRESS 

2D SESSION H. R. 4191 

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. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 8, 2012 

Mr. SCHRADER (for himself and Mr. CHABOT) introduced the following bill; 

which was referred to the Committee on Small Business, and in addition 

to the Committee on Financial Services, 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 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 ‘‘Credit Union Small 

5 Business Lending Act’’. 


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1 SEC. 2. CREDIT UNION APPROVAL PROCESS FOR 7(a) 

2 LOANS. 

3 Not later than 180 days after the date of enactment 

4 of this Act, the Administrator of the Small Business Ad5 ministration shall establish a dedicated process by which 

6 credit unions participating in the loan program under sec7 tion 7(a) of the Small Business Act (15 U.S.C. 636(a)) 

8 may receive approvals and repurchases regarding loan 

9 guarantees under that program. This process shall be dis10 tinct from that used by entities other than credit unions 

11 participating in that program and shall make use of exist12 ing agency resources. 

13 SEC. 3. CREDIT UNION OUTREACH PROGRAM. 

14 Section 7(a) of the Small Business Act (15 U.S.C. 

15 636(a)) is amended by adding at the end the following: 

16 ‘‘(36) CREDIT UNION OUTREACH PROGRAM.— 

17 ‘‘(A) IN GENERAL.—The Administrator 

18 shall carry out a program to provide outreach 

19 and assistance to credit unions for the purpose 

20 of increasing the participation of credit unions 

21 in the 7(a) program. 

22 ‘‘(B) SIMPLIFIED APPLICATION PROC23 ESS.—In carrying out a program under this 

24 paragraph, the Administrator shall take such 

25 actions, as appropriate, to simplify the applicaVerDate Mar 15 2010 00:41 Mar 10, 2012 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H4191.IH H4191

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1 tion process for credit union participation in the 

2 7(a) program. 

3 ‘‘(C) ANNUAL REPORT.—The Adminis4 trator shall submit to Congress an annual re5 port on the efforts made by the Administration 

6 to increase the participation of credit unions in 

7 the 7(a) program.’’. 

8 SEC. 4. CREDIT UNION LOAN GUARANTEE PROGRAM. 

9 Section 7(a) of the Small Business Act, as amended 

10 by section 3, is further amended by adding at the end the 

11 following: 

12 ‘‘(37) CREDIT UNION LOAN GUARANTEE PRO13 GRAM.— 

14 ‘‘(A) IN GENERAL.—The Administrator 

15 shall carry out a program to provide a guaranty 

16 of up to 85 percent for loans made by credit 

17 unions to members of those credit unions. To 

18 be eligible for the program— 

19 ‘‘(i) the amount of the loan may not 

20 exceed $250,000; and 

21 ‘‘(ii) the member must reside in an 

22 underserved area, or the business assisted 

23 by a loan made under this subsection to a 

24 member must be located in an underserved 

25 area. 


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1 ‘‘(B) DEFINITION.—In this paragraph, the 

2 term ‘underserved area’ means a geographic 

3 area consisting of one or more population cen4 sus tracts, that encompass or are located with5 in— 

6 ‘‘(i) an investment area designated 

7 under section 103(16) of the Community 

8 Development Banking and Financial Insti9 tutions Act of 1994; or 

10 ‘‘(ii) a low income community, as de11 fined in section 45D(e) of the Internal 

12 Revenue Code of 1986.’’. 

13 SEC. 5. CREDIT UNION PARTICIPATION IN THE SECTION 504 

14 PROGRAM. 

15 Section 107(5)(A)(iii) of the Federal Credit Union 

16 Act (12 U.S.C. 1757(5)(A)(iii)) is amended by inserting 

17 ‘‘, and applicable regulations,’’ after ‘‘specified in the 

18 law’’. 

Æ 


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