I 

117TH CONGRESS 

1ST SESSION H. R. 6217 

To authorize the Administrator of the Small Business Administration to 

license lending institutions to make loans under section 7(a) of the 

Small Business Act, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 9, 2021 

Mr. DONALDS (for himself and Mr. CROW) introduced the following bill; which 

was referred to the Committee on Small Business 

A BILL 

To authorize the Administrator of the Small Business Administration to license lending institutions to make loans 

under section 7(a) of the Small Business Act, 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 ‘‘Expanding Access to 

5 Affordable Credit for Small Businesses Act’’. 


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1 SEC. 2. LICENSING OF LENDING INSTITUTIONS. 

2 (a) IN GENERAL.—Section 7(a)(17) of the Small 

3 Business Act (15 U.S.C. 636(a)(17)) is amended to read 

4 as follows: 

5 ‘‘(17) LICENSING OF LENDING INSTITU6 TIONS.— 

7 ‘‘(A) IN GENERAL.—The Administration 

8 may license lending institutions to make loans 

9 authorized under this subsection. 

10 ‘‘(B) CRITERIA.—In authorizing lending 

11 institutions under subparagraph (A), the Ad12 ministrator shall ensure that each such institu13 tion— 

14 ‘‘(i) provides an independent audit by 

15 a third party or internal audit department 

16 that examines adherence to all applicable 

17 Federal laws and regulations relating to 

18 anti-money laundering, terrorist financing, 

19 sanctions, and financial crimes; and 

20 ‘‘(ii) has in place a compliance pro21 gram that conforms with the requirements 

22 described in the ‘Bank Secrecy Act/Anti23 Money Laundering Examination Manual’ 

24 of the Financial Institutions Examination 

25 Council and other applicable Federal antiVerDate Sep 11 2014 23:21 Dec 17, 2021 Jkt 029200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H6217.IH H6217

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1 money laundering regulatory guidance, in2 cluding— 

3 ‘‘(I) an annual financial crimes 

4 risk assessment; 

5 ‘‘(II) designation of an individual 

6 to serve as an anti-money laundering 

7 officer; 

8 ‘‘(III) a customer identification 

9 program; 

10 ‘‘(IV) customer due diligence and 

11 enhanced due diligence; 

12 ‘‘(V) suspicious activity moni13 toring and reporting; 

14 ‘‘(VI) information sharing; 

15 ‘‘(VII) record retention; 

16 ‘‘(VIII) sanctions implemented by 

17 the Office of Foreign Assets Control; 

18 ‘‘(IX) annual employee training, 

19 including general training and job20 specific training; and 

21 ‘‘(X) monitoring and testing. 

22 ‘‘(C) PROHIBITION ON MORATORIUM.—The 

23 Administrator may not impose a moratorium on 

24 the licensing of lending institutions described in 

25 subparagraph (A). 


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1 ‘‘(D) NEW APPLICANTS.—Not later than 1 

2 year after the date of the enactment of this 

3 paragraph, the Administrator shall begin ac4 cepting applications for the licensing of lending 

5 institutions. 

6 ‘‘(E) REPORTS.—Not later than 1 year 

7 after the date of the enactment of this para8 graph, and annually thereafter, the Adminis9 trator shall submit to the Committee on Small 

10 Business and Entrepreneurship of the Senate 

11 and the Committee on Small Business of the 

12 House of Representatives a report that in13 cludes, with respect to the year preceding the 

14 report— 

15 ‘‘(i) the number of lending institutions 

16 that applied to make loans under this sub17 section; 

18 ‘‘(ii) the number of such lending insti19 tutions that the Administrator approved to 

20 make loans under this subsection; 

21 ‘‘(iii) the reason for any denial of an 

22 application of such a lending institution; 

23 ‘‘(iv) the number and total amount of 

24 loans made by under this subsection by 

25 lending institutions; and 


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1 ‘‘(v) demographic information on the 

2 recipients of the loans described in clause 

3 (iv). 

4 ‘‘(F) RULE OF CONSTRUCTION.—Nothing 

5 in this paragraph shall be construed to provide 

6 authority to the Administrator to regulate small 

7 business lending companies, non-Federally reg8 ulated lenders, or nondepository lending institu9 tions, or banks. 

10 ‘‘(G) DEFINITIONS.—In this paragraph: 

11 ‘‘(i) BANK.—The term ‘bank’ has the 

12 meaning given in section 3 of the Federal 

13 Deposit Insurance Act. 

14 ‘‘(ii) LENDING INSTITUTION.—The 

15 term ‘lending institution’ has the meaning 

16 given such term by the Administrator and 

17 shall include a small business lending com18 pany, a non-Federally regulated lender, a 

19 nondepository lending institution, or a 

20 bank. 

21 ‘‘(iii) NON-FEDERALLY REGULATED

22 LENDER; SMALL BUSINESS LENDING COM23 PANY.—The terms ‘non-Federally regu24 lated lender’ and ‘small business lending 


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1 company’ have the meanings given, respec2 tively, under section 23.’’. 

3 (b) AUTHORIZATION OF APPROPRIATIONS.—There is 

4 authorized to be appropriated for the Office of Credit Risk 

5 Management of the Small Business Administration such 

6 sums as may be necessary to conduct oversight of lending 

7 institutions and other entities as described under para8 graph (17) of section 7(a) of the Small Business Act (15 

9 U.S.C. 636(a)), as added by subsection (a). 

Æ 


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