[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 2690 Introduced in Senate (IS)]
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117th CONGRESS
1st Session
S. 2690
To require the Small Business Administration to license new lending
institutions to make loans under section 7(a) of the Small Business
Act, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
August 10, 2021
Mr. Scott of South Carolina (for himself and Mr. Hickenlooper)
introduced the following bill; which was read twice and referred to the
Committee on Small Business and Entrepreneurship
_______________________________________________________________________
A BILL
To require the Small Business Administration to license new lending
institutions to make loans under section 7(a) of the Small Business
Act, 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 ``Expanding Access to Affordable
Credit for Small Businesses Act''.
SEC. 2. LICENSING OF SMALL BUSINESS LENDING COMPANIES.
(a) In General.--Section 7(a)(17) of the Small Business Act (15
U.S.C. 636(a)(17)) is amended to read as follows:
``(17) Licensing of small business lending companies.--
``(A) In general.--The Administration shall
authorize lending institutions and other entities,
including small business lending companies, non-
Federally regulated lenders, and non-depository lending
institutions, in addition to banks to make loans
authorized under this subsection.
``(B) Criteria.--In authorizing lending
institutions and other entities under subparagraph (A),
the Administration shall ensure that each such
institution or other entity--
``(i) provides an independent audit by a
third party or internal independent audit
department that examines adherence to all
applicable Federal anti-money laundering,
terrorist financing, sanctions, and financial
crimes laws and regulations; and
``(ii) has in place a compliance program
that is designed to be in conformance with all
relevant anti-money laundering laws and
regulations expectations described in the
Federal Financial Institutions Examination
Council Bank Secrecy Act/Anti-Money Laundering
Examination Manual and other regulatory
guidance, including--
``(I) an annual financial crimes
risk assessment;
``(II) designation of an anti-money
laundering Officer;
``(III) a customer identification
program;
``(IV) customer due diligence and
enhanced due diligence;
``(V) suspicious activity
monitoring and reporting;
``(VI) information sharing;
``(VII) record retention;
``(VIII) sanctions implemented by
the Office of Foreign Assets Control;
``(IX) annual employee training,
including general training and job-
specific training; and
``(X) monitoring and testing.
``(C) Prohibition on moratorium.--The
Administration may not impose a moratorium on the
licensing of lending institutions described in
subparagraph (A).
``(D) New applicants.--Not later than 1 year after
the date of enactment of the Expanding Access to
Affordable Credit for Small Businesses Act, the
Administration shall begin accepting applications for
the licensing of lending institutions described in
subparagraph (A).
``(E) Reports.--Not later than 1 year after the
date of enactment of the Expanding Access to Affordable
Credit for Small Businesses Act, and annually
thereafter, the Administration shall submit to the
Committee on Small Business and Entrepreneurship of the
Senate and the Committee on Small Business of the House
of Representatives a report that includes, with respect
to the year preceding the report--
``(i) the number of lending institutions
and other entities described in subparagraph
(A) that applied to make loans under this
subsection;
``(ii) the number of lending institutions
and other entities described in subparagraph
(A) that the Administration approved to make
loans under this subsection;
``(iii) if the application of a lending
institution or other entity described in
subparagraph (A) was denied, the reason why for
each such denial;
``(iv) the number and total amount of loans
made by under this subsection by lending
institutions and other entities described in
subparagraph (A); and
``(v) demographic information on the
recipients of the loans described in clause
(iv).
``(F) Rule of construction.--Nothing in this
paragraph shall be construed to provide authority to
the Administration to regulate small business lending
companies, non-Federally regulated lenders, or non-
depository lending institutions.''.
(b) Funding.--There is authorized to be appropriated for the Office
of Credit Risk Management of the Small Business Administration such
sums as may be necessary to conduct oversight of lenders authorized
under section 7(a)(17) of the Small Business Act (15 U.S.C.
636(a)(17)).
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