,i #aacth ,,congress #ast ,session ,h4 ,r4 #bdea ,,in ,,the ,,house ,,of ,,representatives ,june #bj1 #bjac ,ms4 ,velzquez 7for herself1 ,mr4 ,payne1 ,ms4 ,chu1 and ,ms4 ,clarke7 introduced the following bill2 which was referred to the ,committee on ,small ,business ,a ,,bill ,to direct the ,administrator of the ,small ,business ,administration to establish and carry out a direct lending program for small business concerns1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,strengthening ,entrepreneurs' ,economic ,development ,act of #bjac4 #b4 ,direct ,lending ,program for ,small ,business ,concerns 7a7 ,establishment ,the ,administrator of the ,small ,business ,administration shall-- 7#a7 establish and carry out a loan program 7in this ,act referred to as the program72 and 7#b7 establish a process under which an eligible small business concern may submit an application to the ,administrator for the purpose of securing a loan under the program4 7b7 ,loan amount ,each loan made to an eligible small business concern under the program shall be in an amount not to exceed #aej1jjj4 7c7 ,repayment period ,an eligible small business concern that receives a loan under the program shall repay the loan not later than #f years after the date on which such loan is disbursed4 7d7 ,no prepayment penalty ,there shall be no prepayment penalty on a loan made under the program4 7e7 ,interest rate ,the maximum legal rate of interest on any loan made under the program shall not exceed the sum of the rate prescribed by the ,administrator pursuant to section #g7;a77#d77;,a7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;a77#d77;,a77 for direct loans plus #e percent4 7f7 ,borrower fees ,with respect to each loan made to an eligible small business concern under the program1 the ,administrator may collect a fee from the borrower using the formula established under section #g7;a77#ah7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;a77#ah774 7g7 ,underwriting standards ,not later than #ahj days after the date of enactment of this ,act1 the ,administrator shall issue guidance regarding prudent underwriting standards that must be used for loans made under the program4 7h7 ,lender participation 7#a7 ,lenders 7,a7 ,in general ,the ,administrator shall establish a process under which the ,administrator makes available to lenders each loan application submitted for the purpose of such lenders originating1 underwriting1 closing1 and servicing the loan for which the applicant applied4 7,b7 ,eligibility ,lenders are eligible to receive a loan application described in subparagraph 7,a7 if they participate in the program4 7,c7 ,local lenders ,the ,administrator shall first make available a loan application described in subparagraph 7,a7 to lenders within #ej miles of the principal office of the loan applicant4 7,d7 ,preferred lenders ,if a lender described in subparagraph 7,c7 does not agree to originate1 underwrite1 close1 and service the loan applied for within #e business days of receiving a loan application described in subparagraph 7,a71 the ,administrator shall subsequently make available such loan application to lenders in the ,preferred ,lenders ,program under section #g7;a77#b77;,c77ii7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;a77#b77;,c77ii774 7,e7 ,authority of administration to lend ,if a lender described in subparagraphs 7,c7 and 7,d7 does not agree to originate1 underwrite1 close1 and service the loan applied for within #aj business days of receiving a loan application described in subparagraph 7,a71 the ,administrator shall1 in accordance with the underwriting standards promulgated under subsection 7g71 consider such loan for origination1 underwriting1 closing1 and servicing by the ,administration within #aj business days4 7#b7 ,asset sales ,the ,administrator shall offer to sell loans made by the ,administrator under the program4 ,such sales shall be made through the semi-annual public solicitation 7in the ,federal ,register and in other media7 of offers to purchase4 ,the ,administrator may contract with vendors for due diligence1 asset valuation1 and other services related to such sales4 ,the ,administrator may not sell any loan under the program for less than #ij percent of the net present value of the loan1 as determined and certified by a qualified third party4 7#c7 ,loans not sold ,the ,administrator shall maintain and service loans made by the ,administrator under this paragraph that are not sold through the asset sales under this subsection4 7i7 ,definitions ,in this ,act3 7#a7 ,administrator ,the term ,administrator means the ,administrator of the ,small ,business ,administration4 7#b7 ,eligible small business concern ,the term eligible small business concern means a small business concern that has less than #bj employees4 7#c7 ,small business concern ,the term small business concern has the same meaning given such term under section #c of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcb74 #c4 ,fee for high-dollar #g7;a7 loans ,section #g7;a7 of the ,small ,business ,act is amended-- 7#a7 by redesignating paragraphs 7#ca7 through 7#ce7 as paragraphs 7#cb7 through 7#cf72 and 7#b7 by inserting the following new paragraph3 7#ca7 ,fee for high-dollar loans ,with respect to each loan in excess of #b1jjj1jjj approved under this subsection1 the ,administration shall assess1 collect1 and retain a fee not to exceed a certain percentage1 as determined by the ,administrator1 of the outstanding balance of the deferred participation share of the loan1 as necessary to reduce to zero the cost to the ,administration of making loans under this subsection4 ,as used in the paragraph1 the term cost has the meaning given that term in section #ejb of the ,federal ,credit ,reform ,act of #aiij 7#b ,u4,s4,c4 #ffa;a74 4