SECTION 1. COMMUNITY ADVANTAGE LOAN PROGRAM. 
Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)) is amended by adding at the end the following: 
‘‘(37) COMMUNITY
ADVANTAGE
LOAN
PRO-
GRAM.— 
‘‘(A) PURPOSES.—The purposes of the 
Community Advantage Loan Program are— 
‘‘(i) to create a mission-oriented loan 
guarantee program that builds on the dem-
onstrated success of the Community Ad-
vantage Pilot Program of the Administra-
tion, as established in 2011, to reach more 
underserved small business concerns; 
‘‘(ii) to increase lending to small busi-
ness concerns in underserved and rural 
markets, including veterans and members 
of the military community, small business 
concerns owned and controlled by socially 
and economically disadvantaged individ-
uals, women, and startups; 
‘‘(iii) to ensure that the program 
under this subsection (in this paragraph 
referred to as the ‘7(a) loan program’) is 
more inclusive and more broadly meets 
congressional intent to reach borrowers
who are unable to get credit elsewhere on 
reasonable terms and conditions; 
‘‘(iv) to help underserved small busi-
ness concerns become bankable by utilizing 
the small-dollar financing and business 
support experience of mission-oriented 
lenders; 
‘‘(v) to allow certain mission-oriented 
lenders, primarily nonprofit financial inter-
mediaries focused on economic develop-
ment in underserved markets, to access 
guarantees for loans under this subsection 
(in this paragraph referred to as ‘7(a) 
loans’) of not more than $250,000 and 
provide management and technical assist-
ance to small business concerns as needed; 
‘‘(vi) to provide certainty for the lend-
ing partners that make loans under this 
subsection and to attract new lenders; and 
‘‘(vii) to encourage collaboration be-
tween mission-oriented and conventional 
lenders under this subsection in order to 
support underserved small business con-
cerns. 
‘‘(B) DEFINITIONS.—In this paragraph—
‘‘(i) the term ‘covered institution’ 
means— 
‘‘(I) a development company, as 
defined in section 103 of the Small 
Business Investment Act of 1958 (15 
U.S.C. 662), participating in the 504 
Loan Guaranty program established 
under title V of such Act (15 U.S.C. 
695 et seq.); 
‘‘(II) a nonprofit intermediary, as 
defined in subsection (m)(12), partici-
pating in the microloan program 
under subsection (m); 
‘‘(III) a non-Federally regulated 
entity certified as a community devel-
opment financial institution by the 
Community Development Financial 
Institutions Fund established under 
section 104(a) of the Riegle Commu-
nity Development and Regulatory Im-
provement Act of 1994 (12 U.S.C. 
4703(a)); and 
‘‘(IV) an eligible intermediary, as 
defined in subsection (l)(1), as in ef-
fect on the day before the date of en-
actment of this paragraph, that par-
ticipated in the Intermediary Lending 
Pilot Program established under sub-
section (l)(2); 
‘‘(ii) the term ‘existing business’ 
means a small business concern that has 
been in existence for not less than 2 years 
on the date on which a loan is made to the 
small business concern under the program; 
‘‘(iii) the term ‘new business’ means a 
small business concern that has been exist-
ence for not more than 2 years on the date 
on which a loan is made to the small busi-
ness concern under the program; 
‘‘(iv) the term ‘program’ means the 
Community Advantage Loan Program es-
tablished under subparagraph (C); 
‘‘(v) the term ‘Reservist’ means a 
member of a reserve component of the 
Armed Forces named in section 10101 of 
title 10, United States Code; 
‘‘(vi) the term ‘rural area’ means any 
county that the Bureau of the Census has 
defined as mostly rural or completely rural 
in the most recent decennial census;
‘‘(vii) the term ‘service-connected’ has 
the meaning given the term in section 
101(16) of title 38, United States Code; 
‘‘(viii) the term ‘small business con-
cern in an underserved market’ means a 
small business concern— 
‘‘(I) that is located in— 
‘‘(aa) a low- to moderate-in-
come community; 
‘‘(bb) a HUBZone; 
‘‘(cc) a community that has 
been designated as an empower-
ment zone or an enterprise com-
munity under section 1391 of the 
Internal Revenue Code of 1986; 
‘‘(dd) a community that has 
been designated as a promise 
zone by the Secretary of Housing 
and Urban Development; 
‘‘(ee) a community that has 
been designated as a qualified 
opportunity zone under section 
1400Z–1 of the Internal Revenue 
Code of 1986; 
‘‘(ff) a rural area; or
‘‘(gg) any area for which a 
disaster declaration or determina-
tion described in subparagraphs 
(A), (B), (C), or (E) of sub-
section (b)(2) has been made 
that has not terminated or ex-
pired more than 2 years before 
the date (or later, as determined 
by the Administrator) on which a 
loan is made to such concern 
under the program; 
‘‘(II) for which more than 50 
percent of the employees reside in a 
low- or moderate-income community; 
‘‘(III) that is a startup or new 
business; 
‘‘(IV) owned and controlled by 
socially and economically disadvan-
taged individuals, including Black 
Americans, Hispanic Americans, Na-
tive Americans, Asian Pacific Ameri-
cans, and other minorities; 
‘‘(V) owned and controlled by 
women;
‘‘(VI) owned and controlled by 
veterans; 
‘‘(VII) owned and controlled by 
service-disabled veterans; 
‘‘(VIII) not less than 51 percent 
owned and controlled by one or 
more— 
‘‘(aa) members of the Armed 
Forces participating in the Tran-
sition Assistance Program of the 
Department of Defense; 
‘‘(bb) Reservists; 
‘‘(cc) spouses of veterans, 
members of the Armed Forces, or 
Reservists; or 
‘‘(dd) surviving spouses of 
veterans who died on active duty 
or as a result of a service-con-
nected disability; or 
‘‘(IX) that is eligible to receive a 
veterans advantage loan; 
‘‘(ix) the term ‘small business concern 
owned and controlled by socially and eco-
nomically disadvantaged individuals’ has
the meaning given the term in section 
8(d)(3)(C); 
‘‘(x) the term ‘startup’ means a busi-
ness that has not yet opened; and 
‘‘(xi) the term ‘veterans advantage 
loan’ means a loan made to a small busi-
ness concern under this subsection that is 
eligible for a waiver of the guarantee fee 
under paragraph (18) or the yearly fee 
under paragraph (23) because the small 
business concern is a concern described in 
subclause (VI), (VII), or (VIII) of clause 
(viii). 
‘‘(C) ESTABLISHMENT.—There is estab-
lished a Community Advantage Loan Program 
under which the Administration may guarantee 
loans made by covered institutions under this 
subsection, including loans made to small busi-
ness concerns in underserved markets. 
‘‘(D) PROGRAM LEVELS.—In each of fiscal 
years 2021 through 2025, not more than 10 
percent of the number of loans guaranteed 
under this subsection may be guaranteed under 
the program. 
‘‘(E) NEW LENDERS.—
‘‘(i) FISCAL YEARS 2021 AND 2022.—In 
each of fiscal years 2021 and 2022— 
‘‘(I) not more than 150 covered 
institutions shall participate in the 
program; and 
‘‘(II) the Administrator shall 
allow for new applicants and give pri-
ority to applications submitted by any 
covered institution that is located in 
an area with insufficient lending 
under the program. 
‘‘(ii) FISCAL YEARS 2023, 2024, AND 
2025.— 
‘‘(I) IN
GENERAL.—In each of 
fiscal years 2023, 2024, and 2025— 
‘‘(aa) except as provided in 
subclause (II), not more than 
175 covered institutions shall 
participate in the program; and 
‘‘(bb) 
the 
Administrator 
shall allow for new applicants 
and give priority to applications 
submitted by any covered institu-
tion that is located in an area
with insufficient lending under 
the program. 
‘‘(II) EXCEPTION
FOR
FISCAL 
YEAR 2025.—In fiscal year 2025, not 
more than 200 covered institutions 
may participate in the program if— 
‘‘(aa) after reviewing the re-
port 
under 
subparagraph 
(M)(iii), the Administrator deter-
mines that not more than 200 
covered institutions may partici-
pate in the program; 
‘‘(bb) the Administrator no-
tifies Congress in writing of the 
determination of the Adminis-
trator under item (aa); and 
‘‘(cc) not later than July 30, 
2024, the Administrator notifies 
the public of the determination of 
the Administrator under item 
(aa). 
‘‘(F) 
GRANDFATHERING
OF
EXISTING 
LENDERS.—Any covered institution that par-
ticipated in the Community Advantage Pilot 
Program of the Administration and is in good
standing on the day before the date of enact-
ment of this paragraph— 
‘‘(i) shall retain designation in the 
program; and 
‘‘(ii) shall not be required to submit 
an application to participate in the pro-
gram. 
‘‘(G) REQUIREMENT TO MAKE LOANS TO 
UNDERSERVED
MARKETS.—Not less than 75 
percent of loans made by a covered institution 
under the program shall consist of loans made 
to small business concerns in underserved mar-
kets. 
‘‘(H) MAXIMUM LOAN AMOUNT.— 
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), the maximum loan 
amount for a loan guaranteed under the 
program is $250,000. 
‘‘(ii) EXCEPTION.— 
‘‘(I) IN GENERAL.—The Admin-
istration may, in the discretion of the 
Administration, approve a guarantee 
of a loan under the program that is 
more than $250,000 and not more 
than $350,000.
‘‘(II) NOTIFICATION.—Not later 
than 2 days after approving the guar-
antee of a loan under subclause (I), 
the Administration shall provide noti-
fication of the approval to the covered 
institution making the loan. 
‘‘(I) INTEREST RATES.— 
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), the maximum allowable 
interest rate prescribed by the Administra-
tion on any financing made on a deferred 
basis pursuant to the program shall not 
exceed the maximum allowable interest 
rate in effect on September 1, 2018. 
‘‘(ii) MODIFICATION.—The Adminis-
tration shall not modify the maximum al-
lowable interest rate described in clause (i) 
unless the Administration provides the 
public with an opportunity to comment for 
a period of not less than 180 days before 
implementing the modified interest rate. 
‘‘(J) TRAINING
AND
TECHNICAL
ASSIST-
ANCE.—The Administration— 
‘‘(i) shall in person and online, pro-
vide upfront and ongoing training and
technical assistance for covered institutions 
making loans under the program in order 
to support prudent lending standards and 
improve the interface between the covered 
institutions and the Administration; 
‘‘(ii) shall ensure that the training 
and technical assistance described in clause 
(i) is provided for free or at a low-cost; 
and 
‘‘(iii) may enter into a contract to 
provide the training or technical assistance 
described in clause (i) with an organization 
with expertise in lending under this sub-
section, mission-oriented lending, and lend-
ing to underserved markets. 
‘‘(K) DELEGATED AUTHORITY.—A covered 
institution is not eligible to receive delegated 
authority from the Administration under the 
program until the covered institution makes not 
less than 7 loans under the program. 
‘‘(L) REGULATIONS.— 
‘‘(i) IN
GENERAL.—Not later than 
180 days after the date of enactment of 
this paragraph and in accordance with the 
notice and comment procedures under sec-
tion 553 of title 5, United States Code, the 
Administrator shall promulgate regulations 
to carry out the program, which shall— 
‘‘(I) outline the requirements for 
participation by covered institutions in 
the program; 
‘‘(II) define performance metrics 
for covered institutions participating 
in the program for the first time, 
which are required to be met in order 
to continue participating in the pro-
gram; 
‘‘(III) determine the credit score 
of a small business concern under 
which the Administration is required 
to underwrite a loan provided to the 
small business concern under the pro-
gram and the loan may not be made 
using the delegated authority of a cov-
ered institution; 
‘‘(IV) require each covered insti-
tution that sells loans made under the 
program on the secondary market to 
establish a loan loss reserve fund, 
which—
startup, an existing busi-
ness, or a new business, as 
provided in the weekly re-
ports on lending approvals 
under this subsection; 
‘‘(bb) the proportion of loans 
described in item (aa) compared 
to— 
‘‘(AA) other 7(a) loans 
of any amount; 
‘‘(BB) other 7(a) loans 
of similar amounts; 
‘‘(CC) 
express 
loans 
provided under paragraph 
(31) of similar amounts; and 
‘‘(DD) other 7(a) loans 
of similar amounts provided 
to small business concerns 
in underserved markets; 
‘‘(cc) a comparison of the 
number and dollar amounts of 
loans provided to small business 
concerns under the program, 
under the Community Advantage 
Pilot Program of the Administra-