trict of Columbia, and each territory of the 
United States. 
‘‘(x) SMALL
BUSINESS
CONCERN
IN 
UNDERSERVED
MARKETS.—The 
term 
‘small business concern in underserved 
markets’ means a small business concern— 
‘‘(I) that is located in— 
‘‘(aa) a low- or moderate-in-
come community; 
‘‘(bb) a HUBZone, as that 
term is defined in section 31(b); 
‘‘(cc) a rural area; 
‘‘(dd) a community that has 
been designated as an empower-
ment zone or enterprise commu-
nity under section 1391 of the 
Internal Revenue Code of 1986; 
‘‘(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 community that has 
been designated as a promise 
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zone by the Secretary of Housing 
and Urban Development; 
‘‘(II) for which more than 50 
percent of the employees reside in a 
low- or moderate-income community; 
‘‘(III) that is a new business; 
‘‘(IV) that is owned and con-
trolled by one or more veterans or 
spouses of veterans; 
‘‘(V) that is located in any area 
for which a disaster declaration or de-
termination described in subpara-
graph (A), (B), (C), or (E) of sub-
section (b)(2) has been made that has 
not terminated more than 2 years be-
fore the date on which a loan is made 
to the small business concern under 
the program, except— 
‘‘(aa) in the case of a dis-
aster that is not a major disaster 
described in subsection (b)(2)(A), 
the Administrator may extend 
such period; and 
‘‘(bb) in the case of major 
disaster described in subsection 
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(b)(2)(A), that period shall be 5 
years; 
‘‘(VI) that is owned and con-
trolled by a member of an Indian 
Tribe individually identified (including 
parenthetically) in the most recent list 
published pursuant to section 104 of 
the Federally Recognized Indian Tribe 
List Act of 1994 (25 U.S.C. 5131); 
‘‘(VII) that is owned and con-
trolled by an individual who has com-
pleted a term of imprisonment in a 
Federal, State, or local jail, or prison; 
or 
‘‘(VIII) that is owned and con-
trolled by an individual with a dis-
ability, as that term is defined in sec-
tion 3 of the Americans with Disabil-
ities Act of 1990 (42 U.S.C. 12102). 
‘‘(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, with an emphasis on loans made to 
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small business concerns in underserved mar-
kets. 
‘‘(D) PROGRAM
LEVELS.—In fiscal year 
2024 and each fiscal year thereafter, not more 
than 10 percent of the number of loans guaran-
teed under this subsection may be guaranteed 
under the program. 
‘‘(E) 
GRANDFATHERING
OF
EXISTING 
LENDERS.—Any covered institution that was li-
censed by the Administrator as a Community 
Advantage small business lending company dur-
ing the period beginning on May 1, 2023, and 
ending on October 31, 2023, or that partici-
pated in the Community Advantage Pilot Pro-
gram of the Administration, and was in good 
standing, as determined by the Administra-
tion— 
‘‘(i) shall be designated as partici-
pants in the program; 
‘‘(ii) shall not be required to submit 
an application to participate in the pro-
gram; and 
‘‘(iii) for the purpose of determining 
the loan loss reserve amount of the covered 
institution, shall have participation in the 
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Community Advantage Pilot Program in-
cluded in the calculation under subpara-
graph (J). 
‘‘(F) 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. 
‘‘(G) MAXIMUM
LOAN
AMOUNT; COLLAT-
ERAL.— 
‘‘(i) MAXIMUM LOAN AMOUNT.— 
‘‘(I) IN
GENERAL.—Except as 
provided in subclause (II), the max-
imum loan amount for a loan guaran-
teed under the program is $350,000. 
‘‘(II) EXPERIENCED LENDERS.— 
‘‘(aa) IN
GENERAL.—The 
Administrator may select not 
more than 8 covered institutions 
to be designated as ‘experienced 
lenders’ to be eligible to make 
loans under this paragraph. An 
experienced lender shall have not 
less than 5 years of experience 
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making loans under the Commu-
nity Advantage Pilot Program of 
the Administration or the pro-
gram established under this para-
graph. 
‘‘(bb) 
MAXIMUM
LOAN 
AMOUNT.—An experienced lender 
may make a loan guaranteed 
under the program in an amount 
that is not more than $750,000, 
but not less than 60 percent of 
the total number of such loans 
made by an experienced lender 
shall be in an amount that is less 
than or equal to $350,000. 
‘‘(cc) 
PARTICIPATION
BY 
THE ADMINISTRATION.—With re-
spect to an agreement to partici-
pate in a loan made under this 
subclause on a deferred basis, the 
participation by the Administra-
tion shall be— 
‘‘(AA) 75 percent of the 
balance of the financing out-
standing at the time of the 
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