I 

110TH CONGRESS 

1ST SESSION H. R. 560 

To establish a pilot program to eliminate certain restrictions on eligible 

certified development companies. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 18, 2007 

Mr. DOOLITTLE introduced the following bill; which was referred to the 

Committee on Small Business 

A BILL 

To establish a pilot program to eliminate certain restrictions 

on eligible certified development companies. 

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 The Act may be cited as the ‘‘Small Business Free5 dom to Lend Act of 2007’’. 

6 SEC. 2. PURPOSE. 

7 The purpose of this Act is as follows: 

8 (1) To permit experienced and successful cer9 tified development companies to share their expertise 

10 and make loans in multiple States. 


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1 (2) To eliminate burdensome rules that require 

2 qualified companies to create and maintain separate 

3 and distinct memberships, officers, boards of direc4 tors, and loan committees in each State they seek to 

5 serve. 

6 SEC. 3. PILOT PROGRAM TO ELIMINATE CERTAIN RESTRIC7 TIONS ON ELIGIBLE CERTIFIED DEVELOP8 MENT COMPANIES. 

9 (a) ESTABLISHMENT.—The Administrator of the 

10 Small Business Administration shall establish a three-year 

11 pilot program to permit an eligible certified development 

12 company to make loans in any State that is contiguous 

13 to the State of incorporation of that company. 

14 (b) ELIGIBLE CERTIFIED DEVELOPMENT COM15 PANY.— 

16 (1) IN GENERAL.—To be eligible to participate 

17 in the pilot program established under subsection 

18 (a), a certified development company shall— 

19 (A) be designated as— 

20 (i) an accredited lender under section 

21 507 of the Small Business Investment Act 

22 of 1958 (15 U.S.C. 697d); or 

23 (ii) a premier certified lender under 

24 section 508 of such Act (15 U.S.C. 697e); 

25 and 


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1 (B) submit to the Administrator— 

2 (i) a written notice of intention to 

3 participate in the pilot program; and 

4 (ii) the names of the States in which 

5 the company intends to make loans. 

6 (2) NO REQUIREMENT OF SEPARATE MEMBER7 SHIPS, OFFICERS, BOARDS OF DIRECTORS, OR LOAN

8 COMMITTEES.—A certified development company 

9 that is eligible under paragraph (1) shall be eligible 

10 regardless of whether it maintains, in each State in 

11 which it makes loans or intends to make loans, sepa12 rate and distinct memberships, officers, boards of di13 rectors, and loan committees. 

14 (c) REPORT.—Not later than 2 years after the date 

15 of the enactment of this Act, the Administrator of the 

16 Small Business Administration shall submit to Congress 

17 a report evaluating the success of the pilot program estab18 lished under subsection (a), which shall include the num19 ber of companies that submitted applications to partici20 pate in such pilot program. 

21 SEC. 4. MEMBERSHIP, OFFICERS, AND BOARDS OF DIREC22 TORS OF CERTIFIED DEVELOPMENT COMPA23 NIES. 

24 Section 503 of the Small Business Investment Act 

25 of 1958 (15 U.S.C. 637) is amended— 


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1 (1) by striking ‘‘SEC. 503 (e)(3). Notwith2 standing any other provision of law’’ and inserting 

3 the following: ‘‘(3) Notwithstanding any other provi4 sion of law’’; and 

5 (2) in subsection (e), by inserting after para6 graph (3), as redesignated by paragraph (1), the fol7 lowing new paragraph: 

8 ‘‘(4) An officer, director, or manager of a quali9 fied State or local development company may serve 

10 as an officer, director, or manager of another quali11 fied State or local development company.’’. 

Æ 


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