‘‘(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 
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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 
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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— 
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‘‘(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; or 
‘‘(ff) a rural area; 
‘‘(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-
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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 
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‘‘(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. 
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‘‘(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 
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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 60 
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.— 
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‘‘(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 
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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 
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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 
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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— 
‘‘(aa) with respect to cov-
ered institutions in good stand-
ing, including the covered institu-
tions described in subparagraph 
(F), shall be maintained at a 
level equal to 3 percent of the 
outstanding guaranteed portion 
of the loans; and 
‘‘(bb) with respect to any 
other covered institution, shall be 
maintained at a level equal to 5 
percent of the outstanding guar-
anteed portion of the loans; and 
‘‘(V) allow the Administrator to 
require additional amounts to be de-
posited into a loan loss reserve fund 
established by a covered institution 
under subclause (IV) based on the 
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risk characteristics or performance of 
the covered institution and the loan 
portfolio of the covered institution. 
‘‘(ii) PILOT PROGRAM.— 
‘‘(I) REVERSION.—Beginning on 
the date of enactment of this para-
graph and ending on the day before 
the date on which the regulations pro-
mulgated by the Administrator under 
clause (i) take effect, the Adminis-
trator may only carry out the Commu-
nity Advantage Pilot Program of the 
Administration based on applicable 
program guidelines, requirements, and 
other policy in effect on September 1, 
2018, except that the definition of un-
derserved market shall include— 
‘‘(aa) a community and an 
area described in items (ee) and 
(ff), respectively, of subpara-
graph (B)(viii)(I); and 
‘‘(bb) small business con-
cerns described in clauses (IV) 
and 
(V) 
of 
subparagraph 
(B)(viii). 
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gins to approve loans under the 
program, the number and dollar 
amount 
of 
loans 
guaranteed 
under the program. 
‘‘(II) SEPARATE ACCOUNTING.— 
The number and dollar amount of 
loans reported in a weekly report 
under subclause (I) for loans guaran-
teed under the Community Advantage 
Pilot Program of the Administration 
and under the program shall include a 
breakdown by the categories of race, 
ethnicity, and gender of the owners of 
the small business concerns. 
‘‘(ii) ANNUAL REPORTS.— 
‘‘(I) IN GENERAL.—For each of 
the first 5 fiscal years in which the 
program is in effect, the Administra-
tion shall submit to the Committee on 
Small Business and Entrepreneurship 
of the Senate and the Committee on 
Small Business of the House of Rep-
resentatives, and make publicly avail-
able on the internet, information 
about loans provided under the pro-
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gram and under the Community Ad-
vantage Pilot Program of the Admin-
istration. 
‘‘(II) CONTENTS.—Each report 
submitted and made publicly available 
under subclause (I) shall include— 
‘‘(aa) the number and dollar 
amounts of loans provided to 
small business concerns under 
the program and under the Com-
munity Advantage Pilot Program 
of the Administration, including 
a breakdown by— 
‘‘(AA) the gender of the 
owners of the small business 
concern; 
‘‘(BB) the race and 
ethnicity of the owners of 
the small business concern, 
disaggregated in a manner 
that captures all the racial 
groups 
specified 
in 
the 
American Community Sur-
vey conducted by the Bu-
reau of the Census; 
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‘‘(CC) 
whether 
the 
small business concern is lo-
cated in an urban or rural 
area; and 
‘‘(DD) 
whether 
the 
small business concern is a 
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; 
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‘‘(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-
tion, and under each category of 
loans described in item (bb), bro-
ken down by— 
‘‘(AA) 
loans 
of 
not 
more than $50,000; 
‘‘(BB) loans of more 
than $50,000 and not more 
than $150,000; 
‘‘(CC) loans of more 
than $150,000 and not more 
than $250,000; and 
‘‘(DD) loans of more 
than $250,000 and not more 
than $350,000; 
‘‘(dd) the number and dollar 
amounts of loans provided to 
small business concerns under 
the program and under the Com-
munity Advantage Pilot Program 
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of the Administration by State, 
and the jobs created or retained 
within each State; 
‘‘(ee) with respect to loans 
provided to small business con-
cerns under the program and 
under the Community Advantage 
Pilot Program of the Administra-
tion— 
‘‘(AA) the performance 
of the loans provided by 
each type of covered institu-
tion; 
‘‘(BB) the performance 
of the loans broken down by 
loan size; 
‘‘(CC) 
the 
predictive 
purchase rate of the loans; 
‘‘(DD) the early default 
rate of the loans; 
‘‘(EE) 
the 
12-month 
default rate of the loans; 
‘‘(FF) the cumulative 
default rate for the loans for 
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the 5-year period preceding 
the report; 
‘‘(GG) the charge-off 
rates of the loans; 
‘‘(HH) the charge-off 
rates as a percent of the un-
paid principal balance as in 
table 9 of the annual budget 
submitted by the Adminis-
tration; and 
‘‘(II) the purchase rates 
as a percent of the unpaid 
principal balance as in table 
8 of the annual budget sub-
mitted by the Administra-
tion; 
‘‘(ff) a list of covered insti-
tutions participating in the pro-
gram and the Community Advan-
tage Pilot Program of the Ad-
ministration, including— 
‘‘(AA) the name, loca-
tion, and contact informa-
tion, such as the website and 
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telephone number, of each 
covered institution; and 
‘‘(BB) a breakdown by 
the 
number 
and 
dollar 
amount of the loans ap-
proved for small business 
concerns; and 
‘‘(gg) the benchmarks estab-
lished by the working group 
under subparagraph (N)(i). 
‘‘(III) TIMING.—An annual re-
port 
required 
under 
this 
clause 
shall— 
‘‘(aa) 
be 
submitted 
and 
made publicly available not later 
than October 15 of each year; 
and 
‘‘(bb) cover the lending ac-
tivity for the fiscal year that 
ended on September 30 of that 
same year. 
‘‘(iii) GAO REPORT.—Not later than 
3 years after the date of enactment of this 
paragraph, the Comptroller General of the 
United States shall submit to the Adminis-
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trator, the Committee on Small Business 
and Entrepreneurship of the Senate, and 
the Committee on Small Business of the 
House of Representatives a report— 
‘‘(I) assessing— 
‘‘(aa) the extent to which 
the program fulfills the require-
ments of this paragraph; and 
‘‘(bb) the performance of 
covered institutions participating 
in the program; and 
‘‘(II) providing recommendations 
on the administration of the program 
and the findings under items (aa) and 
(bb) of subclause (I). 
‘‘(N) WORKING GROUP.— 
‘‘(i) IN GENERAL.—Not later than 90 
days after the date of enactment of this 
paragraph, the Administrator shall estab-
lish a Community Advantage Working 
Group, which shall— 
‘‘(I) include— 
‘‘(aa) a geographically di-
verse representation of members 
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from among covered institutions 
participating in the program; and 
‘‘(bb) representatives from 
the Office of Capital Access of 
the Administration, including the 
Office of Credit Risk Manage-
ment, the Office of Financial As-
sistance, and the Office of Eco-
nomic Opportunity; 
‘‘(II) develop recommendations 
on how the Administration can effec-
tively manage, support, and promote 
the program and the mission of the 
program; 
‘‘(III) establish metrics of suc-
cess and benchmarks that reflect the 
mission and population served by cov-
ered institutions under the program, 
which the Administration shall use to 
evaluate the performance of those cov-
ered institutions; and 
‘‘(IV) institute regular and sus-
tainable systems of communication be-
tween the Administration and covered 
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institutions participating in the pro-
gram. 
‘‘(ii) REPORT.—Not later than 180 
days after the date of enactment of this 
paragraph, the Administrator shall submit 
to the Committee on Small Business and 
Entrepreneurship of the Senate and the 
Committee on Small Business of the 
House of Representatives a report that in-
cludes— 
‘‘(I) the recommendations of the 
Community 
Advantage 
Working 
Group established under clause (i); 
and 
‘‘(II) a recommended plan and 
timeline for implementation of those 
recommendations. 
‘‘(O) TERMINATION.—The authority to 
carry out the program under this paragraph 
shall terminate on September 30, 2025.’’. 
Æ 
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