usc:us:15:697d

text: U.S.C. Title 15 - COMMERCE AND TRADE 15 U.S.C. United States Code, 2024 Edition Title 15 - COMMERCE AND TRADE CHAPTER 14B - SMALL BUSINESS INVESTMENT PROGRAM SUBCHAPTER V - LOANS TO STATE AND LOCAL DEVELOPMENT COMPANIES Sec. 697d - Accredited Lenders Program From the U.S. Government Publishing Office, www.gpo.gov §697d. Accredited Lenders Program (a) Establishment The Administration is authorized to establish an Accredited Lenders Program for qualified State and local development companies that meet the requirements of subsection (b). (b) Requirements The Administration may designate a qualified State or local development company as an accredited lender if such company— (1) has been an active participant in the Development Company Program authorized by sections 696, 697, and 697a of this title for not less than the preceding 12 months; (2) has well-trained, qualified personnel who are knowledgeable in the Administration's lending policies and procedures for such Development Company Program; (3) has the ability to process, close, and service financing for plant and equipment under such Development Company Program; (4) has a loss rate on the company's debentures that is reasonable and acceptable to the Administration; (5) has a history of submitting to the Administration complete and accurate debenture guaranty application packages; and (6) has demonstrated the ability to serve small business credit needs for financing plant and equipment through the Development Company Program. (c) Expedited processing of loan applications The Administration shall develop an expedited procedure for processing a loan application or servicing action submitted by a qualified State or local development company that has been designated as an accredited lender in accordance with subsection (b). (d) Suspension or revocation of designation (1) In general The designation of a qualified State or local development company as an accredited lender may be suspended or revoked if the Administration determines that— (A) the development company has not continued to meet the criteria for eligibility under subsection (b); or (B) the development company has failed to adhere to the Administration's rules and regulations or is violating any other applicable provision of law. (2) Effect A suspension or revocation under paragraph (1) shall not affect any outstanding debenture guarantee. (e) Definition In this section, the term "qualified State or local development company" has the meaning given the term in section 697(e) of this title. (Pub. L. 85–699, title V, §507, as added Pub. L. 103–403, title II, §212(a), Oct. 22, 1994, 108 Stat. 4183; amended Pub. L. 116–260, div. N, title III, §328(b), Dec. 27, 2020, 134 Stat. 2040.) Editorial Notes Amendments 2020 —Subsecs. (e), (f). Pub. L. 116–260, §328(b)(2), added subsec. (e) and struck out former subsec. (e) which related to express loan authority of a local development company designated as an accredited lender, and subsec. (f) which defined terms "accredited lender certified company", "covered loan", and "qualified State or local development company" in this section. Pub. L. 116–260, §328(b)(1), added subsecs. (e) and (f) and struck out former subsec. (e) which defined "qualified State or local development company" for purposes of this section. Statutory Notes and Related Subsidiaries Effective Date of 2020 Amendment Pub. L. 116–260, div. N, title III, §328(b)(2), Dec. 27, 2020, 134 Stat. 2040, provided in part that the amendment made by section 328(b)(2) is effective on Sept. 30, 2023. Except as otherwise provided, amendment by Pub. L. 116–260 effective on Dec. 27, 2020, and applicable to loans and grants made on or after Dec. 27, 2020, see section 348 of Pub. L. 116–260, set out as a note under section 636 of this title. Regulations Pub. L. 103–403, title II, §212(b), Oct. 22, 1994, 108 Stat. 4184, provided that: "Not later than 120 days after the date of enactment of this Act [Oct. 22, 1994], the Administration shall promulgate final regulations to carry out this section [enacting this section and provisions set out below]." Report on Implementation of Program Pub. L. 103–403, title II, §212(c), Oct. 22, 1994, 108 Stat. 4184, provided that: "Not later than 1 year after the effective date of regulations promulgated under subsection (b) [set out above], and biennially thereafter, the Administration shall report to the Committees on Small Business of the Senate and the House of Representatives [Committee on Small Business of Senate now Committee on Small Business and Entrepreneurship of Senate] on the implementation of this section [enacting this section and provisions set out above]. Such report shall include data on the number of development companies designated as accredited lenders, their debenture guarantee volume, their loss rates, the average processing time on their guarantee applications, and such other information as the Administration deems appropriate."