H. R. 560
IN THE HOUSE OF REPRESENTATIVES
January 18, 2007
Mr. Doolittle introduced the following bill; which was referred to the Committee on Small Business
To establish a pilot program to eliminate certain restrictions on eligible certified development companies.
The Act may be cited as the
Small Business Freedom to Lend Act of 2007.
The purpose of this Act is as follows:
To permit experienced and successful certified development companies to share their expertise and make loans in multiple States.
To eliminate burdensome rules that require qualified companies to create and maintain separate and distinct memberships, officers, boards of directors, and loan committees in each State they seek to serve.
Pilot program to eliminate certain restrictions on eligible certified development companies
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.
Eligible certified development company
To be eligible to participate in the pilot program established under subsection (a), a certified development company shall—
be designated as—
an accredited lender under section 507 of the Small Business Investment Act of 1958 (15 U.S.C. 697d); or
a premier certified lender under section 508 of such Act (15 U.S.C. 697e); and
submit to the Administrator—
a written notice of intention to participate in the pilot program; and
the names of the States in which the company intends to make loans.
No requirement of separate memberships, 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, separate and distinct memberships, officers, boards of directors, and loan committees.
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 established under subsection (a), which shall include the number of companies that submitted applications to participate in such pilot program.
Membership, officers, and boards of directors of certified development companies
Section 503 of the Small Business Investment Act of 1958 (15 U.S.C. 637) is amended—
Sec. 503 (e)(3). Notwithstanding any other provision of law and inserting the following:
(3) Notwithstanding any other provision of law; and
in subsection (e), by inserting after paragraph (3), as redesignated by paragraph (1), the following new paragraph:
An officer, director, or manager of a qualified State or local development company may serve as an officer, director, or manager of another qualified State or local development company.