Section Text
(a) Establishment
The Administration is authorized to establish an Accredited Lenders Program for qualified State and local development companies that meet the requirements of subsection (b).
(b) Requirements
The Administration may designate a qualified State or local development company as an accredited lender if such company—
(1) has been an active participant in the Development Company Program authorized by sections 696, 697, and 697a of this title for not less than the preceding 12 months;
(2) has well-trained, qualified personnel who are knowledgeable in the Administration’s lending policies and procedures for such Development Company Program;
(3) has the ability to process, close, and service financing for plant and equipment under such Development Company Program;
(4) has a loss rate on the company’s debentures that is reasonable and acceptable to the Administration;
(5) has a history of submitting to the Administration complete and accurate debenture guaranty application packages; and
(6) has demonstrated the ability to serve small business credit needs for financing plant and equipment through the Development Company Program.
(c) Expedited processing of loan applications
The Administration shall develop an expedited procedure for processing a loan application or servicing action submitted by a qualified State or local development company that has been designated as an accredited lender in accordance with subsection (b).
(d) Suspension or revocation of designation (1) In general
The designation of a qualified State or local development company as an accredited lender may be suspended or revoked if the Administration determines that—
(A) the development company has not continued to meet the criteria for eligibility under subsection (b); or
(B) the development company has failed to adhere to the Administration’s rules and regulations or is violating any other applicable provision of law.
(2) Effect
A suspension or revocation under paragraph (1) shall not affect any outstanding debenture guarantee.
(e) "Qualified State or local development company" defined
For purposes of this section, the term "qualified State or local development company" has the same meaning as in section 697(e) of this title.
Editorial Notes
REGULATIONS Pub. L. 103–403, title II, §212(b), Oct. 22, 1994, 108 Stat. 4184, provided that: "Not later than 120 days after the date of enactment of this Act [Oct. 22, 1994], the Administration shall promulgate final regulations to carry out this section [enacting this section and provisions set out below]."REPORT ON IMPLEMENTATION OF PROGRAM Pub. L. 103–403, title II, §212(c), Oct. 22, 1994, 108 Stat. 4184, provided that: "Not later than 1 year after the effective date of regulations promulgated under subsection (b) [set out above], and biennially thereafter, the Administration shall report to the Committees on Small Business of the Senate and the House of Representatives [Committee on Small Business of Senate now Committee on Small Business and Entrepreneurship of Senate] on the implementation of this section [enacting this section and provisions set out above]. Such report shall include data on the number of development companies designated as accredited lenders, their debenture guarantee volume, their loss rates, the average processing time on their guarantee applications, and such other information as the Administration deems appropriate."
Citation
15 U.S.C. § 697d (2018)