110th CONGRESS
1st Session
H. R. 1849
To amend the Federal Credit Union Act and the Small Business Act
to improve small business lending, improve cooperation between the National
Credit Union Administration and the Small Business Administration, and for
other purposes.
IN THE HOUSE OF REPRESENTATIVES
March 29, 2007
Ms. VELAZQUEZ introduced the following bill; which was referred to the
Committee on Financial Services, and in addition to the Committee on Small
Business, for a period to be subsequently determined by the Speaker, in
each case for consideration of such provisions as fall within the jurisdiction
of the committee concerned
A BILL
To amend the Federal Credit Union Act and the Small Business Act
to improve small business lending, improve cooperation between the National
Credit Union Administration and the Small Business Administration, 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 `Credit Union Small Business Lending Act'.
SEC. 2. REVISION OF REGULATORY TREATMENT FOR SBA LOANS BY CREDIT UNIONS.
Section 107A(c)(1)(B) of the Federal Credit Union Act (12 U.S.C. 1757a(c)(1)(B))
is amended--
(1) at the end of clause (iv), by striking `or';
(2) at the end of clause (v), by striking the period and inserting `;
or'; and
(3) by adding at the end the following new clause:
`(vi) any loan made in cooperation with the Small Business Administration
under section 7(a) of the Small Business Act, without regard to whether
any portion of such loan is guaranteed or not by the Administrator
of such Administration.'.
SEC. 3. CREDIT UNION OUTREACH PROGRAM.
Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is amended by
adding at the end the following:
`(32) CREDIT UNION OUTREACH PROGRAM-
`(A) IN GENERAL- The Administrator shall carry out a program to provide
outreach and assistance to credit unions for the purpose of increasing
the participation of credit unions in the 7(a) program.
`(B) SIMPLIFIED APPLICATION PROCESS- In carrying out a program under
this paragraph, the Administrator shall take such actions, as appropriate,
to simplify the application process for credit union participation in
the 7(a) program
`(C) ANNUAL REPORT- The Administrator shall submit to Congress an annual
report on the efforts made by the Administration to increase the participation
of credit unions in the 7(a) program.'.
SEC. 4. CREDIT UNION LOAN GUARANTEE PROGRAM.
Section 7(a) of the Small Business Act, as amended by section 3, is further
amended by adding at the end the following:
`(33) CREDIT UNION LOAN GUARANTEE PROGRAM-
`(A) IN GENERAL- The Administrator shall carry out a program to provide
a guaranty of up to 85 percent for loans made by credit unions to members
of those credit unions. To be eligible for the program--
`(i) the amount of the loan may not exceed $250,000; and
`(ii) the member must reside in an underserved area, or the business
assisted by a loan made under this subsection to a member must be
located in an underserved area.
`(B) DEFINITION- In this paragraph, the term `underserved area' means
a geographic area consisting of one or more population census tracts,
that encompass or are located within--
`(i) an investment area designated under section 103(16) of the Community
Development Banking and Financial Institutions Act of 1994; or
`(ii) a low income community, as defined in section 45D(e) of the
Internal Revenue Code of 1986.'.
SEC. 5. CREDIT UNION PARTICIPATION IN THE SECTION 504 PROGRAM.
Section 107(5)(A)(iii) of the Federal Credit Union Act (12 U.S.C. 1757(5)(A)(iii))
is amended by inserting `, and applicable regulations,' after `specified
in the law'.
END
