I
103D CONGRESS
2D SESSION
H. R. 4723
To authorize the Administrator of the Small Business Administration to
establish an Accredited Lenders Program for qualified State and local
development companies.
IN THE HOUSE OF REPRESENTATIVES
JULY 12, 1994
Mr. POSHARD introduced the following bill; which was referred to the
Committee on Small Business
A BILL
To authorize the Administrator of the Small Business Ad-
ministration to establish an Accredited Lenders Program
for qualified State and local development companies.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. ACCREDITED LENDERS PROGRAM.
(a) ESTABLISHMENT.—Title V of the Small Business
Investment Act of 1958 (15 U.S.C. 695 et seq.) is amend-
ed by adding at the end the following new section:
‘‘SEC. 507. ACCREDITED LENDERS PROGRAM.
‘‘(a) The Administration is authorized to establish an
Accredited Lenders Program for qualified State and local
development companies which meet the requirements of
subsection (b).
‘‘(b) The Administration may designate a qualified
State or local development company as an accredited lend-
er if such company—
‘‘(1) has been an active participant in the devel-
opment company program for the 12-month period
preceding the designation;
‘‘(2) has well-trained, qualified personnel who
are knowledgeable in the Administration’s lending
policies and procedures for the development company
program;
‘‘(3) has the ability to process, close, and serv-
ice financing for plant and equipment under section
502 of this Act;
‘‘(4) has a loss rate on its debentures that is
acceptable to the Administration;
‘‘(5) has consistently submitted to the Adminis-
tration complete and accurate debenture guarantee
application packages; and
‘‘(6) has demonstrated the ability to serve small
business credit needs for financing plant and equip-
ment as provided in section 502 of this Act.
‘‘(c) The Administration shall expedite the processing
of all loan applications and servicing actions submitted by
a qualified State or local development company that has
been designated as an accredited lender in accordance with
subsection (b).
‘‘(d) The designation of a qualified State or local de-
velopment company as an accredited lender may be sus-
pended or revoked if the Administration determines that—
‘‘(1) the development company has not contin-
ued to meet the criteria for eligibility under sub-
section (b); or
‘‘(2) the development company has failed to ad-
here to the Administration’s rules and regulations or
is violating any other applicable provision of law.
A suspension or revocation under this subsection shall not
affect any outstanding debenture guarantee.
‘‘(e) For purposes of this section, the term ‘qualified
State or local development company’ has the meaning
given such term in section 503(e).’’.
(b) REGULATIONS.—Not later than 90 days after the
date of the enactment of this Act, the Administration shall
issue regulations to carry out section 507 of the Small
Business Investment Act of 1958, as added by subsection
(a) of this section.
(c) ANNUAL REPORT.—
(1) IN GENERAL.—Not later than 1 year after
the date of the enactment of this Act, and annually
thereafter, the Administration shall submit to the
Committees on Small Business of the House of Rep-
resentatives and the Senate a report on the imple-
mentation of this section.
(2) CONTENTS.—Each report to be submitted
under paragraph (1) shall contain—
(A) data on the number of development
companies designated as accredited lenders;
(B) data on the debenture guarantee vol-
ume of such companies;
(C) data on the loss rate on debentures is-
sued by such companies;
(D) data on the average processing time on
guarantee applications submitted to the Admin-
istration by such companies; and
(E) such other information as the Admin-
istration considers appropriate.
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