,,ii #aacth ,,congress #ast ,session ,s4 #ifh ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,may #af1 #bjac ,mr4 ,udall of ,colorado 7for himself1 ,mr4 ,paul1 ,ms4 ,collins1 ,mr4 ,begich1 ,mrs4 ,boxer1 ,mr4 ,brown1 ,mrs4 ,gillibrand1 ,mr4 ,leahy1 ,mr4 ,nelson1 ,mr4 ,reed1 ,mr4 ,sanders1 ,mr4 ,schumer1 ,mr4 ,whitehouse1 ,mr4 ,heinrich1 and ,mr4 ,king7 introduced the following bill2 which was read twice and referred to the ,committee on ,banking1 ,housing1 and ,urban ,affairs ,a ,,bill ,to amend the ,federal ,credit ,union ,act1 to advance the ability of credit unions to promote small business growth and economic development opportunities1 and for other purposes4 #a4 ,short title2 definitions 7a7 ,short title ,this ,act may be cited as the ,small ,business ,lending ,enhancement ,act of #bjac4 7b7 ,definitions ,in this ,act-- 7#a7 the term ,board means the ,national ,credit ,union ,administration ,board2 7#b7 the term insured credit union has the same meaning as in section #aja of the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #ageb72 7#c7 the term member business loan has the same meaning as in section #ajg;,a7c77#a7 of the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #ageg;a7c77#a772 7#d7 the term net worth has the same meaning as in section #ajg;,a7c77#b7 of the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #ageg;a7c77#b772 and 7#e7 the term well capitalized has the same meaning as in section #baf7;c77#a77;,a7 of the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #agij;d7c77#a77;,a774 #b4 ,limits on ,member ,business ,loans ,effective #f months after the date of enactment of this ,act1 section #ajg;,a7a7 of the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #ageg;a7a77 is amended to read as follows3 7a7 ,limitation 7#a7 ,in ,general ,except as provided in paragraph 7#b71 an insured credit union may not make any member business loan that would result in the total amount of such loans outstanding at that credit union at any one time to be equal to more than the lesser of-- 7,a7 #a4ge times the actual net worth of the credit union2 or 7,b7 #ab4be percent of the total assets of the credit union4 7#b7 ,additional ,authority ,the ,board may approve an application by an insured credit union upon a finding that the credit union meets the criteria under this paragraph to make #a or more member business loans that would result in a total amount of such loans outstanding at any one time of not more than #bg4e percent of the total assets of the credit union1 if the credit union-- 7,a7 had member business loans outstanding at the end of each of the #d consecutive quarters immediately preceding the date of the application1 in a total amount of not less than #hj percent of the applicable limitation under paragraph 7#a72 7,b7 is well capitalized1 as defined in section #baf7;c77#a77;,a72 7,c7 can demonstrate at least #e years of experience of sound underwriting and servicing of member business loans2 7,d7 has the requisite policies and experience in managing member business loans2 and 7,e7 has satisfied other standards that the ,board determines are necessary to maintain the safety and soundness of the insured credit union4 7#c7 ,effect of not being well capitalized ,an insured credit union that has made member business loans under an authorization under paragraph 7#b7 and that is not1 as of its most recent quarterly call report1 well capitalized1 may not make any member business loans1 until such time as the credit union becomes well capitalized 7as defined in section #baf7;c77#a77;,a771 as reflected in a subsequent quarterly call report1 and obtains the approval of the ,board4 4 #c4 ,implementation 7a7 ,tiered approval process ,the ,board shall develop a tiered approval process1 under which an insured credit union gradually increases the amount of member business lending in a manner that is consistent with safe and sound operations1 subject to the limits established under section #ajg;,a7a77#b7 of the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #ageg;a7a77#b771 as amended by this ,act4 ,the rate of increase under the process established under this paragraph may not exceed #cj percent per year4 7b7 ,rulemaking required ,the ,board shall issue proposed rules1 not later than #f months after the date of enactment of this ,act1 to establish the tiered approval process required under subsection 7a74 ,the tiered approval process shall establish standards designed to ensure that the new business lending capacity authorized under section #ajg;,a7a7 of the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #ageg;a7a771 as amended by this ,act1 is being used only by insured credit unions that are well-managed and well capitalized1 as required under section #ajg;,a7a7 of the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #ageg;a7a771 as amended by this ,act1 and as defined by the rules issued by the ,board under this subsection4 7c7 ,considerations ,in issuing rules required under this section1 the ,board shall consider-- 7#a7 the experience level of the institutions1 including a demonstrated history of sound member business lending2 7#b7 the criteria under section #ajg;,a7a77#b7 of the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #ageg;a7a77#b771 as amended by this ,act2 and 7#c7 such other factors as the ,board determines necessary or appropriate4 #d4 ,reports to ,congress on ,member ,business ,lending 7a7 ,report of the ,board 7#a7 ,in ,general ,not later than #c years after the date of enactment of this ,act1 the ,board shall submit a report to ,congress on member business lending by insured credit unions4 7#b7 ,report ,the report required under paragraph 7#a7 shall include-- 7,a7 the types and asset size of insured credit unions making member business loans and the member business loan limitations applicable to the insured credit unions2 7,b7 the overall amount and average size of member business loans by each insured credit union2 7,c7 the ratio of member business loans by insured credit unions to total assets and net worth2 7,d7 the performance of the member business loans1 including delinquencies and net charge offs2 7,e7 the effect of this ,act and the amendments made by this ,act on the number of insured credit unions engaged in member business lending1 any change in the amount of member business lending1 and the extent to which any increase is attributed to the change in the limitation in section #ajg;,a7a7 of the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #ageg;a7a771 as amended by this ,act2 7,f7 the number1 types1 and asset size of insured credit unions that were denied or approved by the ,board for increased member business loans under section #ajg;,a7a77#b7 of the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #ageg;a7a77#b771 as amended by this ,act1 including denials and approvals under the tiered approval process2 7,g7 the types and sizes of businesses that receive member business loans1 the duration of the credit union membership of the businesses at the time of the loan1 the types of collateral used to secure member business loans1 and the income level of members receiving member business loans2 and 7,h7 the effect of any increases in member business loans on the risk to the ,national ,credit ,union ,share ,insurance ,fund and the assessments on insured credit unions4 7b7 ,,gao study and report 7#a7 ,study ,the ,comptroller ,general of the ,united ,states shall conduct a study on the status of member business lending by insured credit unions1 including-- 7,a7 trends in such lending2 7,b7 types and amounts of member business loans2 7,c7 the effectiveness of this section in enhancing small business lending2 7,d7 recommendations for legislative action1 if any1 with respect to such lending2 and 7,e7 any other information that the ,comptroller ,general considers relevant with respect to such lending4 7#b7 ,report ,not later than #c years after the date of enactment of this ,act1 the ,comptroller ,general shall submit a report to ,congress on the study required under paragraph 7#a74