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a lending program of the Office of Capital Access of 
the Administration; 
‘‘(3) in carrying out paragraph (2) with respect 
to formal enforcement actions taken under sub-
section (d) or (e) of section 23, vote to recommend 
or not recommend action to the Administrator or a 
designee of the Administrator; 
‘‘(4) in carrying out paragraph (2) with respect 
to any formal enforcement action not specified under 
subsection (d) or (e) of section 23, vote to approve, 
disapprove, or modify the action; 
‘‘(5) review, in an advisory capacity, any lender 
oversight, portfolio risk management, or program in-
tegrity matters brought by the Director; and 
‘‘(6) take such other actions and perform such 
other functions as may be delegated to the Com-
mittee by the Administrator. 
‘‘(d) MEETINGS.— 
‘‘(1) IN GENERAL.—The Committee shall meet 
as necessary, but not less frequently than on a quar-
terly basis. 
‘‘(2) REPORTS.—The Committee shall submit 
to the Administrator a report detailing each meeting 
of the Committee, including if the Committee does 
or does not vote to approve a formal enforcement ac-
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tion of the Director of the Office of Credit Risk 
Management with respect to a lender.’’. 
(b) SUPERVISION DUTIES FOR 7(A) LENDERS.—Ef-
fective January 1, 2019, subsection (d) of section 47 (as 
added by subsection (a)) is amended to read as follows: 
‘‘(d) SUPERVISION DUTIES FOR 7(A) LENDERS.— 
‘‘(1) REVIEWS.—With respect to 7(a) lenders, 
an employee of the Office shall— 
‘‘(A) be present for and supervise any such 
review that is conducted by a contractor of the 
Office on the premise of the 7(a) lender; and 
‘‘(B) supervise any such review that is not 
conducted on the premise of the 7(a) lender. 
‘‘(2) REVIEW REPORT TIMELINE.— 
‘‘(A) IN GENERAL.—Notwithstanding any 
other requirements of the Office or the Admin-
istrator, the Administrator shall develop and 
implement a review report timeline which 
shall— 
‘‘(i) require the Administrator to— 
‘‘(I) deliver a written report of 
the review to the 7(a) lender not later 
than 60 business days after the date 
on which the review is concluded; or 
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‘‘(II) if the Administrator expects 
to submit the report after the end of 
the 60-day period described in clause 
(i), notify the 7(a) lender of the ex-
pected date of submission of the re-
port and the reason for the delay; and 
‘‘(ii) if a response by the 7(a) lender 
is requested in a report submitted under 
subparagraph (A), require the 7(a) lender 
to submit responses to the Administrator 
not later than 45 business days after the 
date on which the 7(a) lender receives the 
report. 
‘‘(B) 
EXTENSION.—The 
Administrator 
may extend the time frame described in sub-
paragraph (A)(i)(II) with respect to a 7(a) 
lender as the Administrator determines nec-
essary.’’. 
(c) TRANSFER OF FUNCTIONS.— 
(1) OFFICE OF CREDIT RISK MANAGEMENT.— 
All functions of the Office of Credit Risk Manage-
ment of the Small Business Administration, includ-
ing the personnel, assets, and obligation of the Of-
fice of Credit Risk Management, as in existence on 
the day before the date of the enactment of this Act, 
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shall be transferred to the Office of Credit Risk 
Management established under section 47 of the 
Small Business Act, as added by subsection (a). 
(2) 
LENDER
OVERSIGHT
COMMITTEE.—All 
functions of the Lender Oversight Committee of the 
Small Business Administration, including the per-
sonnel, assets, and obligations of the Lender Over-
sight Committee, as in existence on the day before 
the date of the enactment of this Act, shall be trans-
ferred to the Lender Oversight Committee estab-
lished under section 48 of the Small Business Act, 
as added by subsection (a). 
(d) DEEMING OF NAME.— 
(1) OFFICE OF CREDIT RISK MANAGEMENT.— 
Any reference in a law, regulation, guidance, docu-
ment, paper, or other record of the United States to 
the Office of Credit Risk Management of the Small 
Business Administration shall be deemed a reference 
to the Office of Credit Risk Management, estab-
lished under section 47 of the Small Business Act, 
as added by subsection (a). 
(2) LENDER OVERSIGHT COMMITTEE.—Any ref-
erence in a law, regulation, guidance, document, 
paper, or other record of the United States to the 
Lender Oversight Committee of the Small Business 
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Administration shall be deemed a reference to the 
Lender Oversight Committee, established under sec-
tion 48 of the Small Business Act, as added by sub-
section (a). 
(e) TECHNICAL AMENDMENT.—Section 3(r)(2) of the 
Small Business Act (15 U.S.C. 632(r)(2)) is amended by 
striking ‘‘regulated SBA lender’’ each place it appears in 
heading and text and inserting ‘‘regulated lender’’. 
SEC. 4. DEFINITION OF CREDIT ELSEWHERE. 
(a) IN GENERAL.—The Small Business Act (15 
U.S.C. 631 et seq.) is amended— 
(1) by striking section 3(h) (15 U.S.C. 632(h)) 
and inserting the following: 
‘‘(h) The term ‘credit elsewhere’ means— 
‘‘(1) for the purposes of this Act (except as 
used in section 7(b)), the availability of credit on 
reasonable terms and conditions to the individual 
loan applicant from non-Federal, non-State, or non- 
local government sources, considering factors associ-
ated with conventional lending practices, including— 
‘‘(A) the business industry in which the 
loan applicant operates; 
‘‘(B) whether the loan applicant is an en-
terprise that has been in operation for a period 
of not more than 2 years; 
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‘‘(C) the adequacy of the collateral avail-
able to secure the requested loan; 
‘‘(D) the loan term necessary to reasonably 
assure the ability of the loan applicant to repay 
the debt from the actual or projected cash flow 
of the business; and 
‘‘(E) any other factor relating to the par-
ticular credit application, as documented in de-
tail by the lender, that cannot be overcome ex-
cept through obtaining a Federal loan guar-
antee under prudent lending standards; and 
‘‘(2) for the purposes of section 7(b), the avail-
ability of credit on reasonable terms and conditions 
from non-Federal sources taking into consideration 
the prevailing rates and terms in the community in 
or near where the applicant business concern trans-
acts business, or the applicant homeowner resides, 
for similar purposes and periods of time.’’; and 
(2) 
in 
section 
7(a)(1)(A)(i) 
(15 
U.S.C. 
636(a)(1)(A)(i)), by inserting ‘‘The Administrator 
has the authority to direct, and conduct oversight 
for, the methods by which lenders determine whether 
a borrower is able to obtain credit elsewhere.’’ before 
‘‘No financial assistance’’. 
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(b) TECHNICAL AMENDMENT.—Section 18(b) of the 
Small Business Act (15 U.S.C. 647(b)) is amended to read 
as follows: 
‘‘(b) As used in this Act, the term ‘agricultural enter-
prises’ means those small business concerns engaged in 
the production of food and fiber, ranching, and raising of 
livestock, aquaculture, and all other farming and agricul-
tural-related industries.’’. 
SEC. 5. AUTHORITY FOR ADMINISTRATOR TO INCREASE 
AMOUNT FOR GENERAL BUSINESS LOANS. 
Section 20 of the Small Business Act (15 U.S.C. 631 
note) is amended— 
(1) by redesignating subsection (j) as sub-
section (f); and 
(2) by adding at the end the following new sub-
section: 
‘‘(g) AUTHORITY TO INCREASE AMOUNT OF GEN-
ERAL BUSINESS LOANS.— 
‘‘(1) IN GENERAL.—Subject to paragraphs (2) 
and (3) and with respect to fiscal year 2018 and 
each fiscal year thereafter, if the Administrator de-
termines that the amount of commitments by the 
Administrator for general business loans authorized 
under section 7(a) for a fiscal year could exceed the 
limit on the total amount of commitments the Ad-
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ministrator may make for those loans under this 
Act, an appropriations Act, or any other provision of 
law, the Administrator may make commitments for 
those loans for that fiscal year in an aggregate 
amount equal to not more than 115 percent of that 
limit. 
‘‘(2) NOTICE REQUIRED BEFORE EXERCISING 
AUTHORITY.—Not later than 30 days before the 
date on which the Administrator intends to exercise 
the authority under paragraph (1), the Adminis-
trator shall submit notice of intent to exercise the 
authority to— 
‘‘(A) the Committee on Small Business 
and Entrepreneurship and the Subcommittee on 
Financial Services and General Government of 
the Committee on Appropriations of the Senate; 
and 
‘‘(B) the Committee on Small Business 
and the Subcommittee on Financial Services 
and General Government of the Committee on 
Appropriations of the House of Representatives. 
‘‘(3) LIMITATION.—The Administrator shall not 
exercise the authority under paragraph (1) more 
than once during any fiscal year.’’. 
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SEC. 6. ESTABLISHING A PROCESS FOR WAIVERS. 
(a) IN GENERAL.—If the Administrator exercises 
statutory or regulatory authority to waive a regulation or 
a requirement in the Standard Operating Procedures 
Manual or Policy Notice related to a program or function 
of the Office of Capital Access of the Administration, the 
waiver shall be in writing and be maintained in an indexed 
form. 
(b) NO NEW WAIVER AUTHORITY.—Nothing in sub-
section (a) shall be construed as creating new authority 
for the Administrator to waive regulations of the Adminis-
tration. 
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SEC. 7. REPEAL OF SMALL BUSINESS LOAN LOSS REPORT. 
Subsection (b) of section 10 of the Small Business 
Act (15 U.S.C. 639(b)) is repealed. 
Passed the House of Representatives May 8, 2018. 
Attest: 
KAREN L. HAAS, 
Clerk. 
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Calendar No. 403 
115TH CONGRESS 
2D SESSION 
H. R. 4743 
AN ACT 
To amend the Small Business Act to strengthen the 
Office of Credit Risk Management within the 
Small Business Administration, and for other 
purposes. 
MAY 9, 2018 
Received; read twice and placed on the calendar 
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