H.R. 3380 (111th): Promoting Lending to America’s Small Businesses Act of 2009

111th Congress, 2009–2010. Text as of Jul 29, 2009 (Introduced).

Status & Summary | PDF | Source: GPO

I

111th CONGRESS

1st Session

H. R. 3380

IN THE HOUSE OF REPRESENTATIVES

July 29, 2009

(for himself and Mr. Royce) introduced the following bill; which was referred to the Committee on Financial Services

A BILL

To amend the Federal Credit Union Act to advance the ability of credit unions to promote small business growth and economic development opportunities, and for other purposes.

1.

Short title

The Act may be cited as the Promoting Lending to America’s Small Businesses Act of 2009.

2.

Limits on member business loans

Section 107A(a) of the Federal Credit Union Act (12 U.S.C. 1757a(a)) is amended by striking than the lesser of— and all that follows and inserting than 25 percent of the total assets of the credit union..

3.

Definition of member business loan

Section 107A(c)(1)(B)(iii) of the Federal Credit Union Act (12 U.S.C. 1757a(c)(1)(B)(iii)) is amended by striking $50,000 and inserting an amount, not to exceed $250,000, that the Board shall prescribe by regulation.

4.

Restriction on member business loans

Section 216(g)(2) of the Federal Credit Union Act (12 U.S.C. 1790d(g)(2)) is amended by striking until such time as the credit union becomes adequately capitalized and inserting unless otherwise approved by the Board.

5.

Member business loan exclusion for loans to nonprofit religious organizations

Section 107A(a) of the Federal Credit Union Act (12 U.S.C. 1757a(a)) is further amended by inserting , excluding loans made to nonprofit religious organizations, after total amount of such loans.

6.

Encouraging small business development in underserved urban and rural communities

(a)

Member business loan exclusion for loans in underserved areas

Section 107A(c)(1)(B) of the Federal Credit Union Act (12 U.S.C. 1757a(c)(1)(B)) is amended—

(1)

by striking or after the semicolon at the end of clause (iv);

(2)

by redesignating clause (v) as clause (vi); and

(3)

by inserting after clause (iv) the following new clause:

(v)

that is made to a member, the proceeds of which are to be used for commercial, corporate, business, farm, or agricultural purposes in an underserved area if such extension of credit—

(I)

is made to a person or organization whose principal residence or place of business is located within an underserved area (as defined in section 101(10)) served by the credit union, and is not a business, or a local outlet of a business, operating on a nationwide basis (for purposes of this subclause, a locally owned franchise that consists only of local operations shall not be treated as a business operating on a nationwide basis); or

(II)

is secured by real property located within, or is intended to operate as part of a business located within, such underserved area; or

.

(b)

Underserved area defined

Section 101 of the Federal Credit Union Act (12 U.S.C. 1752) is amended—

(1)

by striking and at the end of paragraph (8);

(2)

by striking the period at the end of paragraph (9) and inserting ; and; and

(3)

by adding at the end the following new paragraph:

(10)

The term underserved area

(A)

means a geographic area consisting of a single census tract or a group of census tracts, each of which—

(i)

meets the criteria for—

(I)

a low income community, as defined in section 45D(e) of the Internal Revenue Code of 1986; or

(II)

an investment area, as defined and designated under section 103(16) of the Community Development Banking and Financial Institutions Act of 1994; and

(ii)

is not a tract in which 50 percent or more of the resident families have annual incomes in excess of $75,000 (as adjusted periodically by the Board, at the discretion of the Board, to reflect changes in the average Consumer Price Index for all-urban consumers published by the Department of Labor); and

(B)

notwithstanding subparagraph (A), includes, with respect to any Federal credit union, any geographic area within which such credit union—

(i)

has received approval to provide service before the date of the enactment of the Promoting Lending to America’s Small Businesses Act of 2009 from the National Credit Union Administration; and

(ii)

has established a service facility before such date of enactment.

.