I 
109TH CONGRESS 
1ST SESSION H. R. 3982 
To establish a pilot program to eliminate certain restrictions on eligible 
certified development companies. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 6, 2005 
Mr. DOOLITTLE introduced the following bill; which was referred to the 
Committee on Small Business 
A BILL 
To establish a pilot program to eliminate certain restrictions 
on eligible certified development companies. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
The Act may be cited as the ‘‘Small Business Free-
dom to Lend Act of 2005’’. 
SEC. 2. PURPOSE. 
The purpose of this Act is as follows: 
(1) To permit experienced and successful cer-
tified development companies to share their expertise 
and make loans in multiple States.
(2) To eliminate burdensome rules that require 
qualified companies to create and maintain separate 
and distinct memberships, officers, boards of direc-
tors, and loan committees in each State they seek to 
serve. 
SEC. 3. PILOT PROGRAM TO ELIMINATE CERTAIN RESTRIC-
TIONS ON ELIGIBLE CERTIFIED DEVELOP-
MENT COMPANIES. 
(a) ESTABLISHMENT.—The Administrator of the 
Small Business Administration shall establish a three-year 
pilot program to permit an eligible certified development 
company to make loans in any State that is contiguous 
to the State of incorporation of that company. 
(b) ELIGIBLE
CERTIFIED
DEVELOPMENT
COM-
PANY.— 
(1) IN GENERAL.—To be eligible to participate 
in the pilot program established under subsection 
(a), a certified development company shall— 
(A) be designated as— 
(i) an accredited lender under section 
507 of the Small Business Investment Act 
of 1958 (15 U.S.C. 697d); or 
(ii) a premier certified lender under 
section 508 of such Act (15 U.S.C. 697e); 
and
(B) submit to the Administrator— 
(i) a written notice of intention to 
participate in the pilot program; and 
(ii) the names of the States in which 
the company intends to make loans. 
(2) NO REQUIREMENT OF SEPARATE MEMBER-
SHIPS, OFFICERS, BOARDS OF DIRECTORS, OR LOAN 
COMMITTEES.—A certified development company 
that is eligible under paragraph (1) shall be eligible 
regardless of whether it maintains, in each State in 
which it makes loans or intends to make loans, sepa-
rate and distinct memberships, officers, boards of di-
rectors, and loan committees. 
(c) REPORT.—Not later than 2 years after the date 
of the enactment of this Act, the Administrator of the 
Small Business Administration shall submit to Congress 
a report evaluating the success of the pilot program estab-
lished under subsection (a), which shall include the num-
ber of companies that submitted applications to partici-
pate in such pilot program. 
SEC. 4. MEMBERSHIP, OFFICERS, AND BOARDS OF DIREC-
TORS OF CERTIFIED DEVELOPMENT COMPA-
NIES. 
Section 503 of the Small Business Investment Act 
(15 U.S.C. 637) is amended—
(1) by striking ‘‘SEC. 503 (e)(3). Notwith-
standing any other provision of law’’ and inserting 
the following: ‘‘(3) Notwithstanding any other provi-
sion of law’’; and 
(2) in subsection (e), by inserting after para-
graph (3), as redesignated by paragraph (1), the fol-
lowing new paragraph: 
‘‘(4) An officer, director, or manager of a quali-
fied State or local development company may serve 
as an officer, director, or manager of another quali-
fied State or local development company.’’. 
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