Expanding Access to Affordable Credit for Small Businesses Act
Bill: S.2690 | Sponsor: Sen. Scott, Tim (R-SC)
Policy area: Commerce

Summary:
Expanding Access to Affordable Credit for Small Businesses Act
This bill establishes rules related to the authorization of lending institutions and other entities (including small business lending companies, non-federally regulated lenders, and non-depository lending institutions) to make loans under the 7(a) Program of the Small Business Administration (SBA). Under the 7(a) Program, the SBA provides business loans and loan guarantees to small business borrowers who cannot obtain credit elsewhere on reasonable terms and conditions.
Specifically, the SBA must ensure that these lending institutions and other entities (1) provide an independent audit that examines adherence to all applicable federal laws and regulations regarding anti-money laundering, counterterrorist financing, sanctions, and financial crimes; and (2) implement a compliance program that is designed to conform with relevant anti-money laundering laws and regulations.

To require the Small Business Administration to license new lending 
  institutions to make loans under section 7(a) of the Small Business 
                      Act, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Expanding Access to Affordable 
Credit for Small Businesses Act''.

SEC. 2. LICENSING OF SMALL BUSINESS LENDING COMPANIES.

    (a) In General.--Section 7(a)(17) of the Small Business Act (15 
U.S.C. 636(a)(17)) is amended to read as follows:
            ``(17) Licensing of small business lending companies.--
                    ``(A) In general.--The Administration shall 
                authorize lending institutions and other entities, 
                including small business lending companies, non-
                Federally regulated lenders, and non-depository lending 
                institutions, in addition to banks to make loans 
                authorized under this subsection.
                    ``(B) Criteria.--In authorizing lending 
                institutions and other entities under subparagraph (A), 
                the Administration shall ensure that each such 
                institution or other entity--
                            ``(i) provides an independent audit by a 
                        third party or internal independent audit 
                        department that examines adherence to all 
                        applicable Federal anti-money laundering, 
                        terrorist financing, sanctions, and financial 
                        crimes laws and regulations; and
                            ``(ii) has in place a compliance program 
                        that is designed to be in conformance with all 
                        relevant anti-money laundering laws and 
                        regulations expectations described in the 
                        Federal Financial Institutions Examination 
                        Council Bank Secrecy Act/Anti-Money Laundering 
                        Examination Manual and other regulatory 
                        guidance, including--
                                    ``(I) an annual financial crimes 
                                risk assessment;
                                    ``(II) designation of an anti-money 
                                laundering Officer;
                                    ``(III) a customer identification 
                                program;
                                    ``(IV) customer due diligence and 
                                enhanced due diligence;
                                    ``(V) suspicious activity 
                                monitoring and reporting;
                                    ``(VI) information sharing;
                                    ``(VII) record retention;
                                    ``(VIII) sanctions implemented by 
                                the Office of Foreign Assets Control;
                                    ``(IX) annual employee training, 
                                including general training and job-
                                specific training; and
                                    ``(X) monitoring and testing.
                    ``(C) Prohibition on moratorium.--The 
                Administration may not impose a moratorium on the 
                licensing of lending institutions described in 
                subparagraph (A).
                    ``(D) New applicants.--Not later than 1 year after 
                the date of enactment of the Expanding Access to 
                Affordable Credit for Small Businesses Act, the 
                Administration shall begin accepting applications for 
                the licensing of lending institutions described in 
                subparagraph (A).
                    ``(E) Reports.--Not later than 1 year after the 
                date of enactment of the Expanding Access to Affordable 
                Credit for Small Businesses Act, and annually 
                thereafter, the Administration 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 includes, with respect 
                to the year preceding the report--
                            ``(i) the number of lending institutions 
                        and other entities described in subparagraph 
                        (A) that applied to make loans under this 
                        subsection;
                            ``(ii) the number of lending institutions 
                        and other entities described in subparagraph 
                        (A) that the Administration approved to make 
                        loans under this subsection;
                            ``(iii) if the application of a lending 
                        institution or other entity described in 
                        subparagraph (A) was denied, the reason why for 
                        each such denial;
                            ``(iv) the number and total amount of loans 
                        made by under this subsection by lending 
                        institutions and other entities described in 
                        subparagraph (A); and
                            ``(v) demographic information on the 
                        recipients of the loans described in clause 
                        (iv).
                    ``(F) Rule of construction.--Nothing in this 
                paragraph shall be construed to provide authority to 
                the Administration to regulate small business lending 
                companies, non-Federally regulated lenders, or non-
                depository lending institutions.''.
    (b) Funding.--There is authorized to be appropriated for the Office 
of Credit Risk Management of the Small Business Administration such 
sums as may be necessary to conduct oversight of lenders authorized 
under section 7(a)(17) of the Small Business Act (15 U.S.C. 
636(a)(17)).
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