I 
111TH CONGRESS 
1ST SESSION H. R. 3739 
To amend title V of the Small Business Investment Act of 1958 to provide 
for improved long-term financing to small business concerns, and for 
other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 7, 2009 
Mr. BUCHANAN introduced the following bill; which was referred to the 
Committee on Small Business 
A BILL 
To amend title V of the Small Business Investment Act 
of 1958 to provide for improved long-term financing to 
small business concerns, 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 ‘‘Job Creation and Eco-
nomic Development Through CDC Modernization Act of 
2009’’. 
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TITLE I—GENERAL PROVISIONS 
SEC. 101. PROGRAM LEVELS. 
Section 20 of the Small Business Act is amended by 
adding the following new subsection after subsection (e): 
‘‘(f) PROGRAM LEVELS.— 
‘‘(1) FISCAL
YEAR
2010.—For financings au-
thorized by section 7(a)(13) of this Act and title V 
of the Small Business Investment Act of 1958, the 
Administrator is authorized to make $9,000,000,000 
in guarantees of debentures for fiscal year 2010. 
‘‘(2) FISCAL
YEAR
2011.—For financings au-
thorized by section 7(a)(13) of this Act and title V 
of the Small Business Investment Act of 1958, the 
Administrator 
is 
authorized 
to 
make 
$10,000,000,000 in guarantees of debentures for fis-
cal year 2011.’’. 
SEC. 102. DEFINITIONS. 
Section 103 of the Small Business Investment Act 
of 1958 (5 U.S.C. 662) is amended as follows: 
(1) By amending paragraph (6) to read as fol-
lows: 
‘‘(6) the term ‘development company’ means 
any corporation organized in order promote eco-
nomic development and the growth of small business 
concerns and includes companies chartered under a 
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special State law authorizing them to operate on a 
statewide basis;’’. 
(2) By striking ‘‘and’’ at the end of paragraph 
(18), by striking the period at the end of paragraph 
(19) and inserting a semicolon, and by adding at the 
end the following new paragraphs: 
‘‘(20) the term ‘certified development company’ 
means a development company that the Adminis-
trator has determined meets the criteria set forth in 
section 501; 
‘‘(21) the term ‘local governmental entity’ 
means— 
‘‘(A) a State or a political subdivision of a 
State, or 
‘‘(B) a combination of political subdivisions 
which— 
‘‘(i) has been formed to promote eco-
nomic or community development; 
‘‘(ii) is composed of representatives of 
the State or a political subdivision acting 
in their official capacity; and 
‘‘(iii) include an area in an adjacent 
State if it is part of a local economic area, 
a rural area or has a population deter-
mined by the Administrator to be insuffi-
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cient to support the formation of a sepa-
rate development company; 
such term includes entities meeting the require-
ments of clauses (i) through (iii), such as, but 
not limited to, a council of governments, re-
gional development corporation, regional plan-
ning commission, or economic development dis-
trict; 
‘‘(22) the term ‘member’ means any person au-
thorized to vote for a director of a corporation or the 
dissolution or merger of a company. For purposes of 
this definition, a shareholder of a for-profit corpora-
tion shall be considered a member; 
‘‘(23) the terms ‘rural’ and ‘rural area’ shall 
have the same meaning as those terms are given in 
section 1991(a)(13)(A) of title 7, United States 
Code; and 
‘‘(24) the term ‘small manufacturer’ means a 
small business concern— 
‘‘(A) the primary business of which is clas-
sified in sector 31, 32, or 33 of the North 
American Industrial Classification System; and 
‘‘(B) all of the production facilities of 
which are located in the United States.’’. 
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TITLE II—CERTIFIED 
DEVELOPMENT COMPANIES 
SEC. 201. CERTIFIED DEVELOPMENT COMPANIES. 
Section 501 of the Small Business Investment Act 
of 1958 (15 U.S.C. 695) is amended to read as follows: 
‘‘SEC. 501. CERTIFIED DEVELOPMENT COMPANIES. 
‘‘(a) CERTIFIED DEVELOPMENT COMPANY DEBEN-
TURE AUTHORITY.—Only development companies cer-
tified by the Administrator shall have the authority to 
issue debentures under this Act. 
‘‘(b) CERTIFICATION STANDARDS.—A development 
company shall be certified for the purposes of issuing de-
bentures if the Administrator determines that it meets 
each of the following criteria: 
‘‘(1) SMALL CONCERN.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (C) of paragraph (2), the com-
pany, including its affiliates, shall have no more 
than 200 employees. 
‘‘(B) CONTROL.—Except as provided in 
paragraph (2) (B) or (C) the company shall not 
be under the control of any other concern. 
‘‘(C) NOT FOR PROFIT.—The development 
company is organized as a not-for-profit cor-
poration. 
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‘‘(2) EXCEPTIONS.— 
‘‘(A) FOR PROFIT STATUS.—If a develop-
ment company was chartered as a for-profit 
corporation and issued debentures prior to Jan-
uary 1, 1987, the company shall not be re-
quired to change its status to not-for-profit in 
order to be certified. 
‘‘(B) AFFILIATION
GRANDFATHER.—Any 
company that was authorized by the Adminis-
trator to issue debentures before December 31, 
2005, shall be eligible for certification without 
regard to its status as part of, or its affiliation 
with, any other not-for-profit corporation or 
local governmental entity unless that not-for- 
profit corporation or local governmental entity 
is another entity that issues debentures under 
this title. 
‘‘(C) AFFILIATION WITH LOCAL GOVERN-
MENTAL ENTITIES.—Any company that was or-
ganized after the date of enactment of the Job 
Creation and Economic Development through 
CDC Modernization Act of 2009 shall be eligi-
ble for certification without regard to its status 
as part of or affiliation with any local govern-
mental entity. 
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‘‘(3) GOOD
STANDING.—A development com-
pany shall be in good standing and comply with all 
laws, in every State in which it is incorporated or 
authorized to conduct business. 
‘‘(4) MEMBERSHIP.— 
‘‘(A) IN GENERAL.—The development com-
pany shall have at least 25 members. 
‘‘(B) VOTING RIGHTS.—No member shall 
control more than 10 percent of the total voting 
power in the development company. 
‘‘(C) RESIDENCE.—Members must be resi-
dents of the State in which the development 
company is chartered or authorized to do busi-
ness. 
‘‘(D) DIVERSITY.—The development com-
pany must have at least one member from each 
of the following: 
‘‘(i) A local governmental entity. 
‘‘(ii) A financial institution subject to 
regulation by a Federal organization be-
longing to the Federal Financial Institu-
tions Examination Council and provides 
long-term fixed asset financing in the com-
mercial market. 
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‘‘(iii) A not-for-profit organization, 
other than a development company, that is 
dedicated to promoting economic growth. 
‘‘(iv) A for-profit businesses, other 
than a financial institution described in 
clause (ii). 
‘‘(E) EMPLOYMENT STATUS.—Membership 
in a development company shall not be predi-
cated on employment status and an individual 
who retired from or was terminated (for rea-
sons other than fraud or the commission of a 
crime) from an entity described in subpara-
graph (D) shall be deemed to be from the orga-
nization described in that subparagraph. 
‘‘(5) BOARD OF DIRECTORS.— 
‘‘(A) IN GENERAL.—The development com-
pany’s board consists of members and each di-
rector receives a majority vote of the members 
unless the development company is a for-profit 
corporation in which case the board need not 
consist entirely of members. 
‘‘(B) BOARD
REPRESENTATION.—There 
shall be at least one director from not fewer 
than 3 of the 4 types of organizations specified 
in paragraph (4)(D) but no single type of orga-
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nization shall have more than 50 percent rep-
resentation on the board of the development 
company. If the development company is a for- 
profit corporation, financial institution rep-
resentatives may make up more than 50 per-
cent of the board. 
‘‘(C) AFFILIATED
ENTITY
REPRESENTA-
TION RESTRICTIONS.—A development company 
that is described in subsection (b)(1)(C) of this 
section may have any or all of its board mem-
bers appointed by entities affiliated with the 
company and may include common members 
who also serve on the affiliate’s board of direc-
tors if the appointment of board members was 
exercised by an affiliate prior to December 31, 
2005. 
‘‘(D) SPECIAL RULE FOR CERTAIN DEVEL-
OPMENT COMPANIES.—The board of directors 
for any development company issuing deben-
tures before December 31, 2005, and incor-
porated under a State law requiring, or which 
is interpreted by the State’s legal department 
as imposing specific requirements on, the num-
ber and selection of members, board members, 
or both, and the rights and privileges conferred 
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by such State law, may adhere to such provi-
sions. 
‘‘(6) 
PROFESSIONAL
MANAGEMENT
AND 
STAFF.— 
‘‘(A) IN GENERAL.—The development com-
pany shall have full-time independent profes-
sional management, including a chief executive 
officer to manage the daily operations and a 
full-time professional staff qualified to carry out 
the functions authorized under this title. 
‘‘(B) UTILIZATION
OF
STAFF
FROM
AF-
FILIATED ENTITIES.—A development company 
shall not be denied certification under this sec-
tion if its chief executive or full-time profes-
sional staff is from an affiliated entity as de-
scribed in subsection (b)(1)(C). 
‘‘(C) STAFF UNDER CONTRACT.—The Ad-
ministrator shall not deny certification to a de-
velopment company that contracts for its full 
time staff if one of the following conditions is 
met: 
‘‘(i) The development company is lo-
cated in a rural area, obtains its staff 
through contract from another develop-
ment company that is certified by the Ad-
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ministrator and that development company 
operates in the same or a contiguous 
State. 
‘‘(ii) The development company had 
issued debentures under this title prior to 
December 31, 2005, and had contracted 
with a for-profit business concern to pro-
vide staffing and management services. 
‘‘(c) APPLICATIONS.— 
‘‘(1) DEVELOPMENT COMPANIES ISSUING DE-
BENTURES BEFORE SEPTEMBER 30, 2009.— 
‘‘(A) SHORT FORM APPLICATION.—(i) For 
any development company that issued deben-
tures pursuant to this title before September 
30, 2009, the Administrator shall develop, after 
an opportunity for notice and comment, no 
later than 90 days after the date of enactment 
of the Job Creation and Economic Development 
Through CDC Modernization Act of 2009, a 
short-form application that contains sufficient 
information for the Administrator to determine 
that the development company currently meets 
the standards set forth in subsection (b). In de-
veloping such application, the Administrator 
shall be required to limit the amount of paper-
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work necessary to determine whether the devel-
opment company meets the standards for cer-
tification and may limit the application to the 
filing of reports previously submitted to the Ad-
ministrator. 
‘‘(ii) For those companies that obtain staff 
through contracts, the application shall include 
a copy of the contract. 
‘‘(B) CERTIFICATION DECISION.—(i) The 
Administrator shall certify the development 
company if the application demonstrates that 
the applicant meets the standards in subsection 
(b). The decision to certify or not approve the 
request for certification shall be made within 7 
business days from the date the initial submis-
sion of the application is received by the Ad-
ministrator. If the Administrator takes no ac-
tion to approve or disapprove within 7 business 
days, the application for certification is deemed 
approved and no further action is required by 
the Administrator or the development company 
to obtain certification. If the Administrator dis-
approves the application, the Administrator 
shall provide in writing within 3 business days 
the reasons for the disapproval. If such docu-
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ment is not provided within the time specified, 
the application is deemed approved and no fur-
ther action is required by the Administrator or 
the development company to obtain certifi-
cation. 
‘‘(ii) For those development companies 
that submit contracts under subparagraph 
(A)(ii), the Administrator is limited in rejecting 
the application only if the Administrator finds 
that the entity servicing the applicant is no 
longer able to provide the employees or services 
needed by the applicant to perform the func-
tions that would be authorized under this title. 
‘‘(C) APPLICATION RESUBMITTAL.—If the 
Administrator disapproves the application for 
certification and provides a written statement 
as set forth in subparagraph (B), the develop-
ment company may file a new application lim-
ited solely to the address the concerns of the 
Administrator and the certification procedures 
set forth in subparagraph (B) shall recom-
mence. 
‘‘(D) APPEALS.—If the Administrator dis-
approves an application in accordance with the 
procedures of subparagraphs (B) or (C), the 
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applicant may, within 10 calendar days after 
receipt of the disapproval, appeal such dis-
approval. The Administrator shall conduct a 
hearing to determine such appeal pursuant to 
sections 554, 556, and 557 of title 5, United 
States Code, and shall issue a decision not later 
than 45 days after the appeal is filed. The deci-
sion on appeal shall constitute final agency ac-
tion for purposes of chapter 7, title 5 United 
States Code. 
‘‘(E) GRANDFATHERING.— 
‘‘(i) IN GENERAL.—For the period 2 
years after date of enactment of the Job 
Creation 
and 
Economic 
Development 
through CDC Modernization Act of 2009, 
any development company that was issuing 
debentures on or before the date set forth 
in this clause (i) shall be deemed to be a 
certified development company. 
‘‘(ii) COMPLETION
OF
APPLICATION 
PROCESS.—The procedures set forth in 
this paragraph for determining certifi-
cation shall apply to any development com-
pany meeting the qualifications of clause 
(i). 
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‘‘(iii) EFFECT OF DENIAL.—The de-
nial or rejection of an application for cer-
tification as set forth in this subsection 
shall have no affect on the ability of a de-
velopment company meeting the qualifica-
tions in clause (i) from continuing to issue 
debentures during the entire two-year pe-
riod established in that clause. 
‘‘(iv) FAILURE
TO
OBTAIN
CERTIFI-
CATION.—Any development company that 
fails to obtain certification in accordance 
with the procedures set forth in this para-
graph during the period set forth in clause 
(i) shall be considered to be a new develop-
ment company and the procedures of para-
graph (2) shall apply. The authority to 
issue debentures shall cease for any devel-
opment company covered by this subpara-
graph that has failed to obtain certification 
from the Administrator during the time 
period set forth in clause (i). 
‘‘(F) AUTOMATIC
QUALIFICATION
PROVI-
SION.—If the Administrator fails to implement 
the certification process set forth in this para-
graph, any development company that was 
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issuing debentures before September 30, 2009, 
pursuant to this title shall be considered cer-
tified until such time as the Administrator de-
velops the certification procedures set forth in 
this paragraph. 
‘‘(G) SAVINGS CLAUSE.—Any action taken 
by a development company or the Administrator 
pursuant to this paragraph shall have no im-
pact on any guarantee of a debenture issued 
prior to the date of enactment of the Job Cre-
ation and Economic Development Through 
CDC Modernization Act of 2009. 
‘‘(2) APPLICATION PROCESS FOR NEW DEVEL-
OPMENT COMPANIES.— 
‘‘(A) IN GENERAL.—For any development 
company that has not issued debentures prior 
to September 30, 2009, the Administrator shall 
develop no later than 180 days after the date 
of enactment of the Job Creation and Economic 
Development Through CDC Modernization Act 
of 2009, after an opportunity for notice and 
comment, an application form for certification 
that provides the Administrator with sufficient 
information to insure that the applicant meets 
the standards set forth in subsection (b). The 
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Administrator shall certify such development 
company or reject the application within 60 cal-
endar days from the date the initial submission 
was received by the Administrator. If the Ad-
ministrator rejects the application, the Adminis-
trator shall provide in writing within 7 business 
days after the decision, the reason for rejecting 
the application. 
‘‘(B) APPEALS.—A development company 
shall be able to appeal the disapproval of an ap-
plication under the procedures set forth in 
paragraph (1)(D).’’. 
SEC. 202. CERTIFIED DEVELOPMENT COMPANY; OPER-
ATIONAL REQUIREMENTS. 
(a) OPERATIONAL REQUIREMENTS.—Section 502 of 
the Small Business Investment Act of 1958 (15 U.S.C. 
696) is amended to read as follows: 
‘‘SEC. 502. OPERATIONAL REQUIREMENTS FOR CERTIFIED 
DEVELOPMENT COMPANIES. 
‘‘(a) MAINTENANCE OF STANDARDS FOR CERTIFI-
CATION.—Any company certified pursuant to section 501 
shall continue to comply with the requirements of that sec-
tion to remain certified. The Administrator shall develop 
a reporting form, which to the extent possible, incor-
porates other documents and reports already kept by cer-
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tified development companies, demonstrating their contin-
ued compliance. The form shall be developed in a manner 
that the estimated time for completion shall take no more 
than 2 hours. 
‘‘(b) ETHICS AND CONFLICT OF INTERESTS.—A cer-
tified development company, its officers, employees, and 
contractors shall act ethically and avoid activities which 
constitute a conflict of interest or appear to constitute a 
conflict of interest. For purposes of this subsection, con-
duct that is unethical includes, but is not limited to, the 
actions specified in section 120.140 of title 13, Code of 
Federal Regulations as in effect on January 1, 2009. 
‘‘(1) BY ASSOCIATES.—An associate may not be 
an officer, director, or manager of more than 1 cer-
tified development company. The term ‘associate’ 
shall have the same meaning given the term ‘Asso-
ciate of a CDC’ in section 120.10 of title 13, Code 
of Federal Regulations, as in effect on January 1, 
2009. For the purposes of this subsection, 10 per-
cent shall be substituted wherever section 120.10 of 
title 13, Code of Federal Regulation uses 20 per-
cent. 
‘‘(2) BY ENTITIES.—Except as provided in sec-
tions 501(b)(5) and 501(b)(6), no person, sole pro-
prietorship, partnership, or corporation shall control 
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‘‘(c) MEETINGS.—The board of directors of the cer-
tified development company shall meet on a regular basis 
to make policy decisions for the company. 
‘‘(d) LOAN COMMITTEES.—The board of directors of 
a certified development company may use a loan com-
mittee to process loans in the State in which it operates 
as well as adjacent local economic areas. Members of the 
loan committee shall be residents of the certified develop-
ment company’s state of operation or the adjacent local 
economic area. Such loan committees shall meet on a peri-
odic basis as set forth by the board of directors. 
‘‘(e) PROHIBITED CONFLICT IN PROJECT LOANS.— 
‘‘(1) IN GENERAL.—Certified development com-
panies shall not recommend or approve a guarantee 
of a debenture that will be collateralized by property 
being constructed or acquired on which an institu-
tion, as provided in section 508(c)(1)(A), will have 
a first lien position. 
‘‘(2) EXCEPTION.—The prohibition in para-
graph (1) shall not apply to any certified develop-
ment company that was affiliated with or part of 
any entity that took a first lien position between Oc-
tober 1, 2003, and September 30, 2005. 
‘‘(f) AFFILIATION
WITH
LENDERS
OPERATING 
UNDER SECTION 7 OF THE SMALL BUSINESS ACT.— 
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‘‘(1) PROHIBITION.—No certified development 
company may invest in, or be an affiliate of, a lender 
who participates in the loan programs authorized in 
sections 7(a) and 7(c) of the Small Business Act (15 
U.S.C. 636). 
‘‘(2) EXCEPTION.—The prohibition in para-
graph (1) shall not apply to any certified develop-
ment company that is affiliated with an entity au-
thorized by the Administrator to operate under sec-
tion 7(a) of the Small Business Act if such affili-
ation occurred on or before November 6, 2003. 
‘‘(3) CREDIT UNION AFFILIATION.—A certified 
development company shall not lose its status due an 
affiliation with an institution regulated by the Na-
tional Credit Union Administration if the develop-
ment company was affiliated with such an institu-
tion prior to January 1, 2007. 
‘‘(g) SERVICING
AND
PACKAGING
GUARANTEED 
LOANS.—A certified development company is authorized 
to prepare applications for loans under sections 7(a) or 
7(c) of the Small Business Act (15 U.S.C. 636), to service 
such loans, and to charge a reasonable fee for servicing 
such loans. 
‘‘(h) USE OF EXCESS FUNDS.—Any funds generated 
by a certified development company from the issuance of 
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debentures under this title, the sale of debentures in the 
private secondary market, or fees described in subsection 
(g) that remain unexpended after payment of staff, oper-
ating, and overhead expenses shall be used by the certified 
development company for— 
‘‘(1) operating reserves; 
‘‘(2) expanding the area in which the certified 
development company operates through the methods 
authorized in section 505 (relating to multi-State 
operation); 
‘‘(3) investment in other community and local 
economic development activity or community devel-
opment primarily in the State from which such 
funds were generated; or 
‘‘(4) investment in small business investment 
companies subject to the limitations in subsection 
(i). 
‘‘(i) LIMITATIONS WITH RESPECT TO SMALL BUSI-
NESS INVESTMENT COMPANIES.—A certified development 
company shall not— 
‘‘(1) invest excess funds in a small business in-
vestment company that the Administrator deter-
mines to be capitally impaired as set forth in section 
107.1830 of title 13, Code of Federal Regulation, as 
in effect on January 1, 2009, or any successor regu-
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lation to that regulation, but may maintain its in-
vestment in such company if such investment was 
made prior to the determination of capital impair-
ment; and 
‘‘(2) provide a debenture under this title to a 
small business concern that has financing with a 
small business investment company in which the cer-
tified development company has invested excess 
funds. 
‘‘(j) ECONOMIC DEVELOPMENT ACTIVITIES.—A com-
pany certified pursuant to this section shall carry out each 
of the following economic development activities that cre-
ate or preserve jobs in urban and rural areas: 
‘‘(1) The company shall provide long-term fi-
nancing to small business concerns through deben-
tures described in section 506. 
‘‘(2) The company shall operate any other pro-
gram to assist small business concerns or commu-
nities that promote local economic development and 
job creation or preservation. 
‘‘(k) RESTRICTIONS ON ASSISTANCE.— 
‘‘(1) IN GENERAL.—After the date of enact-
ment of the Job Creation and Economic Develop-
ment Through CDC Modernization Act of 2009, no 
certified development company may accept funding 
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from any source, including any Federal agency (as 
that term is defined in section 551 of title 5, United 
States Code) if the source imposes— 
‘‘(A) conditions on the types of small busi-
ness concerns that a certified development com-
pany may provide assistance to under this title; 
or 
‘‘(B) conditions or requirements, directly 
or indirectly, upon any small business concern 
receiving assistance under this title. 
‘‘(2) EXCEPTION.—The conditions of subpara-
graphs (A) and (B) of paragraph (1) shall not apply 
if the source provides all of the financing that will 
be provided by the certified development company to 
the small business concern, provided further that 
any conditions or restrictions are limited solely to 
the financing provided by the source of funding. 
‘‘(l) REVOCATION AND SUSPENSION.—The Adminis-
trator may suspend or revoke a certified development com-
pany’s status if the Administrator determines, after a 
hearing on the record as set forth in section 554, 556, 
and 557 of title 5, United States Code, that the certified 
development company no longer— 
‘‘(1) meets the eligibility criteria established 
under section 501; 
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‘‘(2) satisfies the operational standards in this 
section; or 
‘‘(3) complies with the Administrator’s rules, 
regulations, or provisions of law. 
‘‘(m) EFFECT OF SUSPENSION OR REVOCATION.—A 
suspension or revocation under subsection (l) shall not af-
fect any outstanding debenture guarantee.’’. 
SEC. 203. ACCREDITED LENDERS PROGRAM. 
Section 503 of the Small Business Investment of 
1958 (15 U.S.C. 697) is amended to read as follows: 
‘‘SEC. 503. ACCREDITED LENDERS PROGRAM. 
‘‘(a) ESTABLISHMENT.—A certified development 
company may apply for status to become an accredited 
certified development company if it meets the operational 
standards of section 502 and the criteria in subsection (b). 
‘‘(1) APPLICATION.—The Administrator shall, 
after opportunity for notice and comment, develop 
an application for certified development companies 
seeking to become accredited certified development 
companies. 
‘‘(2) PROCESSING OF APPLICATION.—The Ad-
ministrator shall make a determination within 30 
days after a complete application has been filed by 
the certified development company. 
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‘‘(3) REAPPLICATION.—If the Administrator re-
jects the application, the Administrator shall provide 
in writing the reasons for the rejection. Any certified 
development company may reapply which will recom-
mence the processing time limits set forth in para-
graph (2), and such reapplication shall be limited to 
addressing the reasons for rejection. If the Adminis-
trator rejects a second application, that shall be con-
sidered final agency action for purposes of Chapter 
7 of title 5, United States Code. 
‘‘(b) STANDARDS FOR ACCREDITED CERTIFIED DE-
VELOPMENT COMPANY PROGRAM.—The Administrator 
shall designate a certified development company as accred-
ited if it meets the following standards: 
‘‘(1) has been a certified development company 
for not less than the preceding 12 months and has 
issued debentures as authorized under this title dur-
ing that time period; 
‘‘(2) has well-trained, qualified personnel who 
are knowledgeable in the lending policies and proce-
dures for certified development companies; 
‘‘(3) has the ability to process, close, and serv-
ice the loan issued under this title; 
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‘‘(4) has a loss rate on the company’s deben-
tures that is reasonable and acceptable to the Ad-
ministrator; 
‘‘(5) has a history of submitting to the Admin-
istrator complete and accurate debenture guaranty 
application packages; and 
‘‘(6) has the ability to serve small business 
credit needs for financing plant and equipment as a 
certified development company. 
‘‘(c) EXPEDITED PROCESSING OF GUARANTEE AP-
PLICATIONS.—The Administrator shall develop an expe-
dited procedure for processing a guarantee application or 
servicing action submitted by an accredited certified devel-
opment company. For purposes of this subsection, an ex-
pedited procedure is one that takes at least two business 
days less than the processing performed for certified devel-
opment companies that have not been accredited. 
‘‘(d) SUSPENSION OR REVOCATION OF ACCREDITED 
STATUS.—The Administrator may suspend or revoke a 
certified development company’s accredited status if the 
Administrator determines, after a hearing on the record 
as set forth in section 554, 556, and 557 of title 5, United 
States Code, that the certified development company no 
longer meets the eligibility criteria established under this 
section (which shall not include a time limit on the term 
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of the certified development company’s accredited status) 
or failed to adhere to the Administrator’s rules, regula-
tions, or is violating some other provision of law. Such 
suspension or revocation shall have no effect on the devel-
opment company’s status as certified. 
‘‘(e) EFFECT OF SUSPENSION OR REVOCATION ON 
EXISTING GUARANTEES.—A suspension or revocation of 
accredited status shall not affect any outstanding deben-
ture guarantee. 
‘‘(f) GRANDFATHER PROVISION.—Any certified de-
velopment company that was accredited by the date of en-
actment of the Job Creation and Economic Development 
Through CDC Modernization Act shall remain accredited 
for 24 months after that date. If the certified development 
company does not have an application for accreditation ap-
proved by the Administrator within the 24 months, its ac-
creditation standard shall lapse. 
‘‘(g) AUTOMATIC QUALIFICATION.— 
‘‘(1) IN GENERAL.—Until the Administrator de-
velops procedures for granting accredited status, any 
certified development company that was accredited 
as of the date of enactment of the Job Creation and 
Economic Development through CDC Modernization 
Act of 2009 shall be deemed to be accredited. 
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‘‘(2) APPLICATIONS.—Any certified develop-
ment company that satisfies the provision of para-
graph (1) shall have 24 months in which to submit 
the application established by this section for accred-
ited status. 
‘‘(3) EFFECT WHILE APPLICATION PENDING.— 
The denial or rejection of an application for accred-
ited status as set forth in this section shall have no 
affect on the ability of a development company that 
meets the standard set forth in paragraph (1) from 
maintaining its status during the 24 months speci-
fied in this subsection. 
‘‘(h) PROMULGATION
OF
ACCREDITING
STAND-
ARDS.—The Administrator shall develop standards for ac-
crediting, suspension and revocation under the program 
established by this section only after notice and an oppor-
tunity for comment as set forth in section 553(b) of title 
5, United States Code. After the development of such 
standards, the Administrator shall publish such standards 
in the Code of Federal Regulations. 
‘‘(i) RULE OF CONSTRUCTION.—Any reference to the 
term ‘accredited lender’ in any provision of law enacted, 
or any regulation adopted, prior to the enactment of the 
Job Creation and Economic Development Through CDC 
Modernization Act of 2009 shall be deemed to be a ref-
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erence to the term ‘accredited certified development com-
pany’.’’. 
SEC. 204. PREMIER CERTIFIED LENDER PROGRAM. 
Section 504 of the Small Business Investment Act 
of 1958 (15 U.S.C. 697a) is amended to read as follows: 
‘‘SEC. 504. PREMIER CERTIFIED LENDER PROGRAM. 
‘‘(a) ESTABLISHMENT.—A certified development 
company accredited under section 503 may apply for sta-
tus to become a premier certified development company. 
‘‘(1) APPLICATION.—The Administrator shall, 
after opportunity for notice and comment, develop 
an application for accredited certified development 
companies seeking to become premier certified devel-
opment companies. 
‘‘(2) PROCESSING OF APPLICATION.—The Ad-
ministrator shall make a determination within 60 
days after a complete application has been filed by 
an accredited certified development company. 
‘‘(3) REAPPLICATION.—If the Administrator re-
jects the application, the Administrator shall provide 
in writing the reasons for the rejection. Any accred-
ited certified development company may reapply 
which will recommence the processing time limits set 
forth in paragraph (2), and such reapplication shall 
be limited to addressing the reasons for rejection. If 
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