H.R. 4191 (112th): Credit Union Small Business Lending Act

112th Congress, 2011–2013. Text as of Mar 08, 2012 (Introduced).

Status & Summary | PDF | Source: GPO

I

112th CONGRESS

2d Session

H. R. 4191

IN THE HOUSE OF REPRESENTATIVES

March 8, 2012

(for himself and Mr. Chabot) introduced the following bill; which was referred to the Committee on Small Business, and in addition to the Committee on Financial Services, 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.

1.

Short title

This Act may be cited as the Credit Union Small Business Lending Act.

2.

Credit Union Approval Process for 7(a) loans

Not later than 180 days after the date of enactment of this Act, the Administrator of the Small Business Administration shall establish a dedicated process by which credit unions participating in the loan program under section 7(a) of the Small Business Act (15 U.S.C. 636(a)) may receive approvals and repurchases regarding loan guarantees under that program. This process shall be distinct from that used by entities other than credit unions participating in that program and shall make use of existing agency resources.

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:

(36)

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.

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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:

(37)

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.

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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.