I 
112TH CONGRESS 
2D SESSION 
H. R. 4191 
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 8, 2012 
Mr. SCHRADER (for himself and Mr. CHABOT) introduced the following bill; 
which was referred to the Committee on Small Business, and in addition 
to the Committee on Financial Services, for a period to be subsequently 
determined by the Speaker, in each case for consideration of such provi-
sions 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 Adminis-
tration and the Small Business Administration, and for 
other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Credit Union Small 
Business Lending Act’’. 
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SEC. 2. CREDIT UNION APPROVAL PROCESS FOR 7(a) 
LOANS. 
Not later than 180 days after the date of enactment 
of this Act, the Administrator of the Small Business Ad-
ministration shall establish a dedicated process by which 
credit unions participating in the loan program under sec-
tion 7(a) of the Small Business Act (15 U.S.C. 636(a)) 
may receive approvals and repurchases regarding loan 
guarantees under that program. This process shall be dis-
tinct from that used by entities other than credit unions 
participating in that program and shall make use of exist-
ing agency resources. 
SEC. 3. CREDIT UNION OUTREACH PROGRAM. 
Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)) is amended by adding at the end the following: 
‘‘(36) CREDIT UNION OUTREACH PROGRAM.— 
‘‘(A) IN
GENERAL.—The Administrator 
shall carry out a program to provide outreach 
and assistance to credit unions for the purpose 
of increasing the participation of credit unions 
in the 7(a) program. 
‘‘(B) 
SIMPLIFIED
APPLICATION
PROC-
ESS.—In carrying out a program under this 
paragraph, the Administrator shall take such 
actions, as appropriate, to simplify the applica-
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tion process for credit union participation in the 
7(a) program. 
‘‘(C) ANNUAL
REPORT.—The Adminis-
trator shall submit to Congress an annual re-
port on the efforts made by the Administration 
to increase the participation of credit unions in 
the 7(a) program.’’. 
SEC. 4. CREDIT UNION LOAN GUARANTEE PROGRAM. 
Section 7(a) of the Small Business Act, as amended 
by section 3, is further amended by adding at the end the 
following: 
‘‘(37) CREDIT UNION LOAN GUARANTEE PRO-
GRAM.— 
‘‘(A) IN
GENERAL.—The Administrator 
shall carry out a program to provide a guaranty 
of up to 85 percent for loans made by credit 
unions to members of those credit unions. To 
be eligible for the program— 
‘‘(i) the amount of the loan may not 
exceed $250,000; and 
‘‘(ii) the member must reside in an 
underserved area, or the business assisted 
by a loan made under this subsection to a 
member must be located in an underserved 
area. 
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‘‘(B) DEFINITION.—In this paragraph, the 
term ‘underserved area’ means a geographic 
area consisting of one or more population cen-
sus tracts, that encompass or are located with-
in— 
‘‘(i) an investment area designated 
under section 103(16) of the Community 
Development Banking and Financial Insti-
tutions Act of 1994; or 
‘‘(ii) a low income community, as de-
fined in section 45D(e) of the Internal 
Revenue Code of 1986.’’. 
SEC. 5. CREDIT UNION PARTICIPATION IN THE SECTION 504 
PROGRAM. 
Section 107(5)(A)(iii) of the Federal Credit Union 
Act (12 U.S.C. 1757(5)(A)(iii)) is amended by inserting 
‘‘, and applicable regulations,’’ after ‘‘specified in the 
law’’. 
Æ 
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