[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3604 Introduced in House (IH)]
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118th CONGRESS
1st Session
H. R. 3604
To authorize the Administrator of the Small Business Administration to
license lending institutions to make loans under section 7(a) of the
Small Business Act, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 23, 2023
Mr. Donalds (for himself and Mr. Crow) introduced the following bill;
which was referred to the Committee on Small Business
_______________________________________________________________________
A BILL
To authorize the Administrator of the Small Business Administration to
license 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 LENDING INSTITUTIONS.
(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 lending institutions.--
``(A) In general.--The Administration may license
lending institutions to make loans authorized under
this subsection.
``(B) Criteria.--In authorizing lending
institutions under subparagraph (A), the Administrator
shall ensure that each such institution--
``(i) provides an independent audit by a
third party or internal audit department that
examines adherence to all applicable Federal
laws and regulations relating to anti-money
laundering, terrorist financing, sanctions, and
financial crimes; and
``(ii) has in place a compliance program
that conforms with the requirements described
in the `Bank Secrecy Act/Anti-Money Laundering
Examination Manual' of the Financial
Institutions Examination Council and other
applicable Federal anti-money laundering
regulatory guidance, including--
``(I) an annual financial crimes
risk assessment;
``(II) designation of an individual
to serve as 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 Administrator
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 the enactment of this paragraph, the
Administrator shall begin accepting applications for
the licensing of lending institutions.
``(E) Reports.--Not later than 1 year after the
date of the enactment of this paragraph, and annually
thereafter, the Administrator 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
that applied to make loans under this
subsection;
``(ii) the number of such lending
institutions that the Administrator approved to
make loans under this subsection;
``(iii) the reason for any denial of an
application of such a lending institution;
``(iv) the number and total amount of loans
made by under this subsection by lending
institutions; 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 Administrator to regulate small business lending
companies, non-Federally regulated lenders, or
nondepository lending institutions, or banks.
``(G) Definitions.--In this paragraph:
``(i) Bank.--The term `bank' has the
meaning given in section 3 of the Federal
Deposit Insurance Act.
``(ii) Lending institution.--The term
`lending institution' has the meaning given
such term by the Administrator and shall
include a small business lending company, a
non-Federally regulated lender, a nondepository
lending institution, or a bank.
``(iii) Non-federally regulated lender;
small business lending company.--The terms
`non-Federally regulated lender' and `small
business lending company' have the meanings
given, respectively, under section 23.''.
(b) Authorization of Appropriations.--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 lending institutions and other entities as described under
paragraph (17) of section 7(a) of the Small Business Act (15 U.S.C.
636(a)), as added by subsection (a).
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