I 

111TH CONGRESS 

1ST SESSION H. R. 3380 

To amend the Federal Credit Union Act to advance the ability of credit 

unions to promote small business growth and economic development 

opportunities, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 29, 2009 

Mr. KANJORSKI (for himself and Mr. ROYCE) introduced the following bill; 

which was referred to the Committee on Financial Services 

A BILL 

To amend the Federal Credit Union Act to advance the 

ability of credit unions to promote small business growth 

and economic development opportunities, 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 The Act may be cited as the ‘‘Promoting Lending to 

5 America’s Small Businesses Act of 2009’’. 

6 SEC. 2. LIMITS ON MEMBER BUSINESS LOANS. 

7 Section 107A(a) of the Federal Credit Union Act (12 

8 U.S.C. 1757a(a)) is amended by striking ‘‘than the lesser 


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1 of—’’ and all that follows and inserting ‘‘than 25 percent 

2 of the total assets of the credit union.’’. 

3 SEC. 3. DEFINITION OF MEMBER BUSINESS LOAN. 

4 Section 107A(c)(1)(B)(iii) of the Federal Credit 

5 Union Act (12 U.S.C. 1757a(c)(1)(B)(iii)) is amended by 

6 striking ‘‘$50,000’’ and inserting ‘‘an amount, not to ex7 ceed $250,000, that the Board shall prescribe by regula8 tion’’. 

9 SEC. 4. RESTRICTION ON MEMBER BUSINESS LOANS. 

10 Section 216(g)(2) of the Federal Credit Union Act 

11 (12 U.S.C. 1790d(g)(2)) is amended by striking ‘‘until 

12 such time as the credit union becomes adequately capital13 ized’’ and inserting ‘‘unless otherwise approved by the 

14 Board’’. 

15 SEC. 5. MEMBER BUSINESS LOAN EXCLUSION FOR LOANS 

16 TO NONPROFIT RELIGIOUS ORGANIZATIONS. 

17 Section 107A(a) of the Federal Credit Union Act (12 

18 U.S.C. 1757a(a)) is further amended by inserting ‘‘, ex19 cluding loans made to nonprofit religious organizations,’’ 

20 after ‘‘total amount of such loans’’. 

21 SEC. 6. ENCOURAGING SMALL BUSINESS DEVELOPMENT IN 

22 UNDERSERVED URBAN AND RURAL COMMU23 NITIES. 

24 (a) MEMBER BUSINESS LOAN EXCLUSION FOR

25 LOANS IN UNDERSERVED AREAS.—Section 


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1 107A(c)(1)(B) of the Federal Credit Union Act (12 

2 U.S.C. 1757a(c)(1)(B)) is amended— 

3 (1) by striking ‘‘or’’ after the semicolon at the 

4 end of clause (iv); 

5 (2) by redesignating clause (v) as clause (vi); 

6 and 

7 (3) by inserting after clause (iv) the following 

8 new clause: 

9 ‘‘(v) that is made to a member, the 

10 proceeds of which are to be used for com11 mercial, corporate, business, farm, or agri12 cultural purposes in an underserved area if 

13 such extension of credit— 

14 ‘‘(I) is made to a person or orga15 nization whose principal residence or 

16 place of business is located within an 

17 underserved area (as defined in sec18 tion 101(10)) served by the credit 

19 union, and is not a business, or a 

20 local outlet of a business, operating on 

21 a nationwide basis (for purposes of 

22 this subclause, a locally owned fran23 chise that consists only of local oper24 ations shall not be treated as a busiVerDate Nov 24 2008 06:21 Jul 30, 2009 Jkt 079200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3380.IH H3380

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1 ness operating on a nationwide basis); 

2 or 

3 ‘‘(II) is secured by real property 

4 located within, or is intended to oper5 ate as part of a business located with6 in, such underserved area; or’’. 

7 (b) UNDERSERVED AREA DEFINED.—Section 101 of 

8 the Federal Credit Union Act (12 U.S.C. 1752) is amend9 ed— 

10 (1) by striking ‘‘and’’ at the end of paragraph 

11 (8); 

12 (2) by striking the period at the end of para13 graph (9) and inserting ‘‘; and’’; and 

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

15 paragraph: 

16 ‘‘(10) The term ‘underserved area’— 

17 ‘‘(A) means a geographic area consisting of 

18 a single census tract or a group of census 

19 tracts, each of which— 

20 ‘‘(i) meets the criteria for— 

21 ‘‘(I) a low income community, as 

22 defined in section 45D(e) of the Inter23 nal Revenue Code of 1986; or 

24 ‘‘(II) an investment area, as de25 fined and designated under section 


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1 103(16) of the Community Develop2 ment Banking and Financial Institu3 tions Act of 1994; and 

4 ‘‘(ii) is not a tract in which 50 per5 cent or more of the resident families have 

6 annual incomes in excess of $75,000 (as 

7 adjusted periodically by the Board, at the 

8 discretion of the Board, to reflect changes 

9 in the average Consumer Price Index for 

10 all-urban consumers published by the De11 partment of Labor); and 

12 ‘‘(B) notwithstanding subparagraph (A), 

13 includes, with respect to any Federal credit 

14 union, any geographic area within which such 

15 credit union— 

16 ‘‘(i) has received approval to provide 

17 service before the date of the enactment of 

18 the Promoting Lending to America’s Small 

19 Businesses Act of 2009 from the National 

20 Credit Union Administration; and 

21 ‘‘(ii) has established a service facility 

22 before such date of enactment.’’. 

Æ 


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