I 

110TH CONGRESS 

1ST SESSION H. R. 1849 

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 29, 2007 

Ms. VELA ́ZQUEZ 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 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. REVISION OF REGULATORY TREATMENT FOR SBA 

2 LOANS BY CREDIT UNIONS. 

3 Section 107A(c)(1)(B) of the Federal Credit Union 

4 Act (12 U.S.C. 1757a(c)(1)(B)) is amended— 

5 (1) at the end of clause (iv), by striking ‘‘or’’; 

6 (2) at the end of clause (v), by striking the pe7 riod and inserting ‘‘; or’’; and 

8 (3) by adding at the end the following new 

9 clause: 

10 ‘‘(vi) any loan made in cooperation 

11 with the Small Business Administration 

12 under section 7(a) of the Small Business 

13 Act, without regard to whether any portion 

14 of such loan is guaranteed or not by the 

15 Administrator of such Administration.’’. 

16 SEC. 3. CREDIT UNION OUTREACH PROGRAM. 

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

18 636(a)) is amended by adding at the end the following: 

19 ‘‘(32) CREDIT UNION OUTREACH PROGRAM.— 

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

21 shall carry out a program to provide outreach 

22 and assistance to credit unions for the purpose 

23 of increasing the participation of credit unions 

24 in the 7(a) program. 

25 ‘‘(B) SIMPLIFIED APPLICATION PROC26 ESS.—In carrying out a program under this 


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1 paragraph, the Administrator shall take such 

2 actions, as appropriate, to simplify the applica3 tion process for credit union participation in the 

4 7(a) program 

5 ‘‘(C) ANNUAL REPORT.—The Adminis6 trator shall submit to Congress an annual re7 port on the efforts made by the Administration 

8 to increase the participation of credit unions in 

9 the 7(a) program.’’. 

10 SEC. 4. CREDIT UNION LOAN GUARANTEE PROGRAM. 

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

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

13 following: 

14 ‘‘(33) CREDIT UNION LOAN GUARANTEE PRO15 GRAM.— 

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

17 shall carry out a program to provide a guaranty 

18 of up to 85 percent for loans made by credit 

19 unions to members of those credit unions. To 

20 be eligible for the program— 

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

22 exceed $250,000; and 

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

24 underserved area, or the business assisted 

25 by a loan made under this subsection to a 


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1 member must be located in an underserved 

2 area. 

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

4 term ‘underserved area’ means a geographic 

5 area consisting of one or more population cen6 sus tracts, that encompass or are located with7 in— 

8 ‘‘(i) an investment area designated 

9 under section 103(16) of the Community 

10 Development Banking and Financial Insti11 tutions Act of 1994; or 

12 ‘‘(ii) a low income community, as de13 fined in section 45D(e) of the Internal 

14 Revenue Code of 1986.’’. 

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

16 PROGRAM. 

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

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

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

20 law’’. 

Æ 


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