,,ii  #aad? ,,congress  #b;d ,session   
,s4 #biib  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,may #be1 #bjaf ,mr4   
,vitt] 7= himself1 ,mrs4 ,%ahe51 ,mr4   
,ris*1 ,ms4 ,ayotte1 & ,mr4 ,pet]s7     
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on ,small
 ,bus9ess & ,entrepr5eur%ip  ,a ,,bill  
,to am5d ! ,small ,bus9ess ,act to      
/r5g!n ! ,(fice ( ,cr$it ,risk          
,managem5t ( ! ,small ,bus9ess          
,adm9i/ration1 & = o!r purposes4  #a4   
,%ort title  ,?is ,act may be cit$ z !  
,small ,bus9ess ,l5d+ ,ov]sight ,act (  
#bjaf4  #b4 ,(fice ( ,cr$it ,risk       
,managem5t2 /ress analyses ,! ,small    
,bus9ess ,act 7#ae ,u4,s4,c4 #fca et    
seq47 is am5d$-- 7#a7 by r$esignat+     
section #dg z section #di2 &  7#b7 by   
ins]t+ aft] section #df ! foll[+3  #dg4 
,(fice ( ,cr$it ,risk ,managem5t  7a7 ,9
 g5]al ,!re is )9 ! ,adm9i/ration !     
,(fice ( ,cr$it ,risk ,managem5t 79 ?is 
section ref]r$ to z ! ,(fice74  7b7     
,director ,! ,(fice is head$ by !       

,director ( ! ,(fice ( ,cr$it ,risk     
,managem5t 79 ?is section ref]r$ to z ! 
,director74  7c7 ,sup]vision  7#a7 ,f9al
 reports ,! ,director %all issue any    
f9al report relat+ to a review ( any    
entity au?oriz$ to issue a loan or loan 
gu>antee "u section #g or "u title ,v ( 
! ,small ,bus9ess ,inve/m5t ,act ( #aieh
 7#ae ,u4,s4,c4 #fie et seq474  7#b7    
,reviews ,an employee ( ! ,(fice %all be
 pres5t = & sup]vise any full review    
conduct$ by a contractor ( !            
,adm9i/ration4  7d7 ,en=cem5t au?ority (
 ! ,director  7#a7 ,9 g5]al ,9 addition 
to o!r en=cem5t actions au?oriz$ "u     
regulations promulgat$ by !             
,adm9i/ration1 ! ,director %all impose  
p5alties on any l5d] t f9ances loans "u 
section #g7;a7 if ! l5d] kn[+ly &       
repeat$ly--  7,a7 fails to prop]ly      
det]m9e & docum5t t a loan is eligible =
 f9anc+ "u ?is ,act & regulations       
promulgat$ "u ?is ,act1 includ+ a       
failure to docum5t t a loan is eligible 
= f9anc+ "u section #g7;a7 because !    

applicant is unable to obta9 cr$it      
else:]e2  7,b7 sells ! gu>ante$ portion 
( a loan "u section #e7;f7 :5 ! proce$s 
( ! loan h n be5 fully disburs$ 9       
accordance ) program requirem5ts2  7,c7 
imposes on an applicant = a loan "u     
section #g7;a7 a fee t ! ,adm9i/ration  
has n specifically au?oriz$2 or  7,d7   
re-amortizes a loan solely to make !    
loan appe> curr5t4  7#b7 ,p5alties ,9   
addition to ! au?ority ( ! ,adm9i/rator 
to d5y liability = a loan1 ! ,director  
may impose a p5alty on a l5d] t kn[+ly &
 repeat$ly violates ! requirem5ts (     
section #g7;a7 & ! regulations          
promulgat$ "u t section1 includ+ by     
committ+ violations describ$ 9 p>agraph 
7#a71 :i*--  7,a7 %all be bas$ on-- 7i7 
! sev]ity ( ! violations2 &  7ii7 !     
frequ5cy ) :i* ! l5d] fails to comply ) 
! requirem5ts2 &  7,b7 may include--    
7i7 issu+ ! l5d] a w>n+ & an ord] to    
comply2  7ii7 if ! l5d] is a p>ticipant 
9 ! ,pref]r$ ,l5d]s ,program 79 ?is     
subsection ref]r$ to z ! program71 z    

def9$ 9 section #g7;a77#b77;,c77iii71   
susp5d+ ! l5d] f p>ticipat+ 9 ! program 
= a p]iod ( n less ?an #ij days & n m   
?an #a ye>1 :i* %all include ! "r ( !   
l5d] to appeal ! decision ( ! ,director 
to ! ,(fice ( ,he>+s & ,appeals2  7iii7 
prohibit+ ! l5d] f issu+ loans "u       
section #g7;a7 "u processes det]m9$ by !
 ,adm9i/rator ?r\gh regulation1 :i* %all
 include ! "r ( ! l5d] to appeal !      
decision ( ! ,director to ! ,(fice (    
,he>+s & ,appeals2  7iv7 assess+ a civil
 monet>y p5alty aga9/ ! l5d] 9 an am\nt 
t is n less ?an #e1jjj & n great] ?an   
#bej1jjj1 :i* %all include ! "r ( ! l5d]
 to appeal ! decision ( ! ,director to !
 ,(fice ( ,he>+s & ,appeals2  7v7       
prohibit+ a l5d] f sell+ 9 ! second>y   
m>ket1 "u section #e7;f71 ! gu>ante$    
portion ( any loan made by ! l5d]2 &    
7vi7 any o!r p5alty t ! ,director       
det]m9es to be appropriate aft] consid]+
 ! sev]ity & ! frequ5cy ( ! violations (
 ! l5d]4  7#c7 ,regulations ,) respect  
to ! p5alties describ$ 9 clauses 7ii71  

7iii71 & 7iv7 ( p>agraph 7#b77;,b71 !   
,adm9i/rator %all--  7,a7 n lat] ?an    
#ahj days aft] ! date ( enactm5t ( ?is  
section1 propose am5dm5ts to any        
regulations 9 effect on ! date (        
enactm5t ( ?is section2 &  7,b7 n lat]  
?an #a ye> aft] ! date ( enactm5t ( ?is 
section1 publi% a f9al regulation4  7#d7
 ,s]vic+ & liquidation responsibilities 
,dur+ any p]iod 9 :i* a l5d] is susp5d$ 
f p>ticipat+ 9 ! program1 or if a l5d]  
is prohibit$ f issu+ loans "u section   
#g7;a71 ! l5d] %all rema9 obligat$ to   
ma9ta9 all s]vic+ & liquidation         
activities delegat$ to ! l5d] by !      
,adm9i/rator4  7e7 ,report to ,congress 
,n lat] ?an ,decemb] #ca ( ea* ye>1 !   
,(fice %all submit to ,congress a report
 detail+ ! subject matt] & frequ5cy (   
actions tak5 by ! ,(fice dur+ ! ye>     
prec$+ ! submission ( ! report4  #dh4   
,portfolio risk analyses  7a7 ,9 g5]al  
,! ,adm9i/rator %all annually conduct a 
risk analysis ( ! portfolio ( !         
,adm9i/ration ) respect to all loans    

issu$ "u section #g7;a74  7b7 ,report   
7#a7 ,9 g5]al ,beg9n+ on ,april #a1     
#bjah1 & annually !reaft]1 ! ,director (
 ! ,(fice ( ,cr$it ,risk ,managem5t %all
 submit to ,congress a report conta9+ ! 
results ( ea* portfolio risk analysis   
conduct$ "u subsection 7a74  7#b7       
,cont5ts ,a report submitt$ "u p>agraph 
7#a7 %all include-- 7,a7 an analysis (  
ov]all program risk2  7,b7 an analysis (
 program risk-- 7i7 by indu/ry          
conc5tration2  7ii7 by geography2 &     
7iii7 by program loan int]e/ rates2     
7,c7 )\t id5tify+ individual l5d]s by   
"n1 a consolidat$ analysis ( ! risk     
creat$ by ! individual l5d]s responsible
 = n less ?an #a p]c5t ( ! gross loan   
approvals = ! ye> cov]$ by ! report2 &  
7,d7 a summ>y ( ! /eps tak5 by !        
,adm9i/ration to mitigate ! risks       
id5tifi$ 9 subp>agraphs 7,a71 7,b71 &   
7,c74  4  #c4 ,cr$it else:]e  ,! ,small 
,bus9ess ,act 7#ae ,u4,s4,c4 #fca et    
seq47 is am5d$-- 7#a7 by /rik+ section  
#c7;h7 7#ae ,u4,s4,c4 #fcb7;h77 & ins]t+

 ! foll[+3  7h7 ,! t]m cr$it else:]e    
means-- 7#a7 = ! purposes ( ?is ,act1   
except = section #g7;b71 ! availability 
( cr$it to ! individual loan applicant  
on reasonable t]ms & conditions f       
non-,f$]al1 non-,/ate1 or non-local     
gov]nm5t s\rces1 tak+ into consid]ation 
factors associat$ ) conv5tional l5d+    
practices1 includ+ b n limit$ to--  7,a7
 ! bus9ess indu/ry 9 :i* ! loan         
applicant op]ates2  7,b7 :e!r ! loan    
applicant is an ent]prise t has be5 9   
op]ation = a p]iod ( less ?an #b ye>s2  
7,c7 ! adequacy ( ! collat]al available 
to secure ! reque/$ loan2 &  7,d7 ! loan
 t]m necess>y to reasonably assure !    
ability ( ! loan applicant to repay !   
debt f ! actual or project$ ca% fl[ ( ! 
bus9ess2 &  7#b7 = ! purposes ( section 
#g7;b71 ! availability ( cr$it f        
non-,f$]al s\rces on reasonable t]ms &  
conditions tak+ into consid]ation !     
prevail+ rates & t]ms 9 ! community 9 or
 ne> :]e ! conc]n transacts bus9ess1 or 
! home[n] resides1 = simil> purposes &  

p]iods ( "t4  2 &  7#b7 by /rik+ section
 #ah7;b7 7#ae ,u4,s4,c4 #fdg7;b77 &     
ins]t+ ! foll[+3  7b7 ,z us$ 9 ?is ,act1
 ! t]m agricultural ent]prises means ^? 
bus9esses engag$ 9 ! production ( food &
 fib]1 ran*+1 & rais+ ( live/ock1       
aquaculture1 & all o!r f>m+ &           
agricultural relat$ indu/ries4  4  #d4  
,ov]sight fees  7a7 ,fees = ! op]ation (
 ! ,(fice ( ,cr$it ,risk ,managem5t     
,section #g7;a77#bc7 ( ! ,small ,bus9ess
 ,act 7#ae ,u4,s4,c4 #fcf7;a77#bc77 is  
am5d$-- 7#a7 9 subp>agraph 7,a7--  7,a7 
by /rik+ ,) respect to & ins]t+ !       
foll[+3  7i7 ,r$uction ( ,adm9i/ration  
co/s ,) respect to  2 &  7,b7 by add+ at
 ! end ! foll[+3  7ii7 ,(fice ( ,cr$it  
,risk ,managem5t ,! ,adm9i/ration %all  
assess & collect a fee equal to #j4jc   
p]c5t p] ye> ( ! out/&+ balance ( !     
def]r$ p>ticipation %>e ( ea* loan      
approv$ "u ?is subsection1 ! proce$s (  
:i* %all be us$ solely to support !     
op]ations ( ! ,(fice ( ,cr$it ,risk     
,managem5t4  2 &  7#b7 9 subp>agraph    

7,b71 by /rik+ fee assess$ & ins]t+ fees
 assess$4  7b7 ,second>y m>ket sales    
,section #e7;g77#d77;,a7 ( ! ,small     
,bus9ess ,act 7#ae ,u4,s4,c4            
#fcd7;g77#d77;,a77 is am5d$ by /rik+ !  
fir/ s5t5ce & ins]t+ ,! ,adm9i/rator    
%all collect a fee = any loan gu>antee  
sold into ! second>y m>ket "u subsection
 7f7 9 an am\nt equal to #ej p]c5t ( !  
portion ( ! sale price t exce$s #ajh    
p]c5t ( ! out/&+ pr9cipal am\nt ( !     
portion ( ! loan gu>ante$ by !          
,adm9i/ration44  #e4 ,r$uction ( risk   
7a7 ,l5d] conc5tration ,section         
#g7;a77#a7 ( ! ,small ,bus9ess ,act 7#ae
 ,u4,s4,c4 #fcf7;a77#a77 is am5d$ by    
add+ at ! end ! foll[+3  7,d7 ,portfolio
 conc5trations  7i7 ,conc5tration (     
loans made ) no equity contribution     
7,i7 ,9 g5]al ,n lat] ?an ,decemb] #ca (
 ea* ye>1 ! ,adm9i/rator %all calculate1
 z ( ,septemb] #cj ( ! ye> 9 :i* !      
calculation is made & = ea* l5d] t      
issues loans "u ?is section1 ! p]c5tage 
( loans 9 ! portfolio ( ! l5d] t 7 made 

)\t a contribution ( equity by ! borr[] 
:5 ! purpose ( ! loan 0 to e/abli% a new
 small bus9ess conc]n1 to effectuate a  
*ange ( own]%ip ( a small bus9ess       
conc]n1 or to pur*ase real e/ate4       
7,,ii7 ,approval ,if1 aft] mak+ !       
calculation requir$ "u subclause 7,i71 !
 ,adm9i/rator det]m9es t m ?an #ae p]c5t
 ( ! loans ( a l5d] are z describ$ 9 t  
subclause1 any loan application submitt$
 to ! l5d] t w\ld provide f9anc+ )\t a  
contribution ( equity by ! borr[] & = "o
 ( ! purposes describ$ 9 t subclause may
 n be approv$ "u ! au?ority delegat$ to 
a l5d] z a p>ticipant 9 ! ,pref]r$      
,l5d]s ,program1 z def9$ 9 p>agraph     
7#b77;,c77iii7 & if applicable4  7,,iii7
 ,exemptions ,subclause 7,,ii7 %all n   
apply to any l5d] t orig9ates loans "u  
section #g7;a71 ! aggregate am\nt ( :i* 
equals less ?an #a p]c5t ( ! annual     
total program au?orization1 bas$ ^u     
gross loan approvals = ! fiscal ye>     
prec$+ ! ye> 9 :i* ! calculation is made
 "u subclause 7,i74  7ii7 ,indu/ry      

conc5tration  7,i7 ,9 g5]al ,n lat] ?an 
,decemb] #ca ( ea* ye>1 ! ,adm9i/rator  
%all calculate1 z ( ,septemb] #cj ( !   
ye> 9 :i* ! calculation is made1 = ea*  
l5d] t issues loans "u ?is section1 &   
us+ ! applicable #f-;digit              
classification code "u ! ,nor? ,am]ican 
,indu/ry ,classification ,sy/em1 indu/ry
 conc5trations = ea* l5d]4  7,,ii7      
,approval ,if1 aft] mak+ ! calculation  
requir$ "u subclause 7,i71 !            
,adm9i/rator det]m9es t m ?an #bj p]c5t 
( ! loans ( a l5d] are conc5trat$ 9 a   
s+le indu/ry1 any loan application      
submitt$ to ! l5d] f a small bus9ess    
conc]n op]at+ 9 t indu/ry may n be      
approv$ "u ! au?ority delegat$ to ! l5d]
 z a p>ticipant 9 ! ,pref]r$ ,l5d]s     
,program1 z def9$ 9 p>agraph            
7#b77;,c77iii7 & if applicable4  7,,iii7
 ,exemptions ,subclause 7,,ii7 %all n   
apply to any l5d] t orig9ates loans "u  
section #g7;a71 ! aggregate am\nt ( :i* 
equals less ?an #a p]c5t ( ! annual     
total program au?orization1 bas$ ^u     

gross loan approvals = ! fiscal ye>     
prec$+ ! ye> 9 :i* ! calculation is made
 "u subclause 7,i74  7,e7 ,f9anc+ 9     
excess ( #ajj p]c5t ,! ,adm9i/rator may 
n approve a loan "u subp>agraph 7,d7 if 
! loan provides f9anc+ 9 an am\nt t is m
 ?an #ajj p]c5t ( ! project co/s4  4    
7b7 ,regulations  7#a7 ,9 g5]al ,!      
,adm9i/rator ( ! ,small ,bus9ess        
,adm9i/ration %all-- 7,a7 n lat] ?an    
#ahj days aft] ! date ( enactm5t ( ?is  
,act1 issue propos$ regulations to      
implem5t ?is section & ! am5dm5ts made  
by ?is section2 &  7,b7 n lat] ?an #a   
ye> aft] ! date ( enactm5t ( ?is ,act1  
publi% f9al regulations implem5t+ ?is   
section & ! am5dm5ts made by ?is        
section4  7#b7 ,cont5t ,! regulations   
describ$ 9 subp>agraphs 7,a7 & 7,b7 (   
p>agraph 7#a7 %all include factors1 su* 
z ! balance %eet equity ( a borr[]1 t a 
l5d] may consid] :5 det]m9+ :e!r & h[   
mu* equity w be requir$ to ensure t a   
loan is cr$itwor?y4  #f4 ,issues )      
respect to loans to small bus9ess       

conc]ns  ,section #g7;a7 ( ! ,small     
,bus9ess ,act 7#ae ,u4,s4,c4 #fcf7;a77  
is am5d$ by add+ at ! end ! foll[+3     
7#ce7 ,accuracy requirem5t ,any l5d] t  
is requir$ to report in=mation to !     
,adm9i/ration ) respect to a loan       
gu>ante$ "u ?is subsection on ,=m #aejb1
 or any successor =m t conta9s !        
in=mation 9 ,=m #aejb z 9 effect on     
,janu>y #a1 #bjaf1 & has be5 approv$ by 
! ,director ( ! ,(fice ( ,managem5t &   
,budget "u section #cejg ( title #dd1   
,unit$ ,/ates ,code1 %all ensure t !    
in=mation on su* =m is complete &       
accurate4  7#cf7 ,use ( outside ag5ts   
7,a7 ,9 g5]al ,= a loan made "u ?is     
subsection1 a l5d] may use an outside   
ag5t or l5d] s]vice provid] to assi/ 9  
id5tify+ pot5tial applicants & )        
process+1 disburs+1 s]vic+1 & liquidat+ 
! loan1 except t ! l5d]1 & n any ag5t1  
%all be :olly responsible =--  7i7 !    
accuracy ( all in=mation submitt$ )     
respect to ! loan2  7ii7 all decisions )
 respect to ! eligibility &             

cr$itwor?9ess ( ! loan applicant2 &     
7iii7 any actions tak5 ) respect to !   
loan4  7,b7 ,en=cem5t au?ority ( !      
,adm9i/ration ,no?+ 9 subp>agraph 7,a7  
%all be con/ru$ to limit ! au?ority ( ! 
,adm9i/rator t 0 9 effect on ! day be=e 
! date ( enactm5t ( ?is p>agraph to br+ 
an en=cem5t action aga9/ an outside ag5t
 or a l5d] s]vice provid]4  7#cg7       
,reta9+ own]%ip ,) respect to a loan    
made "u ?is subsection1 a l5d] may n    
sell or pl$ge an am\nt t is m ?an !     
great] (--  7,a7 #he p]c5t ( ! loan2 or 
7,b7 ! p]c5tage ( ! loan t is gu>ante$  
by ! ,adm9i/ration4  4  #g4 ,regulations
  ,9 addition to ! regulations requir$  
"u section #e7;b71 ! ,adm9i/rator ( !   
,small ,bus9ess ,adm9i/ration %all--    
7#a7 n lat] ?an #ahj days aft] ! date ( 
enactm5t ( ?is ,act1 issue propos$      
regulations t-- 7,a7 implem5t all o!r   
provisions ( ?is ,act & ! am5dm5ts made 
by ?is ,act2 &  7,b7 provide def9itions 
& requirem5ts ) respect to ! concepts   
(-- 7i7 equity injections2 &  7ii7 loans

 t are #ajj p]c5t f9anc$2 &  7#b7 n lat]
 ?an #a ye> aft] ! date ( enactm5t ( ?is
 ,act1 publi% f9al v]sions ( !          
regulations describ$ 9 p>agraph 7#a74