,,ii ,calendar ,no4 #djc #aaeth ,,congress #b;d ,session ,h4 ,r4 #dgdc ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,may #i1 #bjah,received2 read twice and placed on the calendar ,,an ,,act ,to amend the ,small ,business ,act to strengthen the ,office of ,credit ,risk ,management within the ,small ,business ,administration1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,small ,business #g7;a7 ,lending ,oversight ,reform ,act of #bjah4 #b4 ,definitions ,in this ,act1 the terms ,administration and ,administrator mean the ,small ,business ,administration and the ,administrator thereof1 respectively4 #c4 ,codification of the ,office of ,credit ,risk ,management and the ,lender ,oversight ,committee 7a7 ,in general ,the ,small ,business ,act 7#ae ,u4,s4,c4 #fca et seq47 is amended-- 7#a7 by redesignating section #dg as section #di2 and 7#b7 by inserting after section #df the following new sections3 #dg4 ,office of ,credit ,risk ,management 7a7 ,establishment ,there is established within the ,administration the ,office of ,credit ,risk ,management 7in this section referred to as the ,office74 7b7 ,duties ,the ,office shall be responsible for supervising-- 7#a7 any lender making loans under section #g7;a7 7in this section referred to as a #g7;a7 lender72 7#b7 any ,lending ,partner or ,intermediary participant of the ,administration in a lending program of the ,office of ,capital ,access of the ,administration2 and 7#c7 any small business lending company or a non-,federally regulated lender without regard to the requirements of section #bc4 7c7 ,director 7#a7 ,in general ,the ,office shall be headed by the ,director of the ,office of ,credit ,risk ,management 7in this section referred to as the ,director71 who shall be a career appointee in the ,senior ,executive ,service 7as defined in section #cacb of title #e1 ,united ,states ,code74 7#b7 ,duties ,the ,director shall be responsible for oversight of the lenders and participants described in subsection 7b71 including by conducting periodic reviews of the compliance and performance of such lenders and participants4 7d7 ,supervision duties for #g7;a7 lenders ,with respect to #g7;a7 lenders1 an employee of the ,office shall-- 7#a7 be present for and supervise any such review that is conducted by a contractor of the ,office on the premise of the #g7;a7 lender2 and 7#b7 supervise any such review that is not conducted on the premise of the #g7;a7 lender4 7e7 ,enforcement authority against #g7;a7 lenders 7#a7 ,informal enforcement authority ,the ,director may take an informal enforcement action against a #g7;a7 lender if the ,director finds that the #g7;a7 lender has violated a statutory or regulatory requirement under section #g7;a7 or any requirement in a ,standard ,operating ,procedures ,manual or ,policy ,notice related to a program or function of the ,office of ,capital ,access4 7#b7 ,formal enforcement authority 7,a7 ,in general ,with the approval of the ,lender ,oversight ,committee established under section #dh1 the ,director may take a formal enforcement action against any #g7;a7 lender if the ,director finds that the #g7;a7 lender has violated-- 7i7 a statutory or regulatory requirement under section #g7;a71 including a requirement relating to credit elsewhere2 or 7ii7 any requirement described in a ,standard ,operating ,procedures ,manual or ,policy ,notice1 related to a program or function of the ,office of ,capital ,access4 7,b7 ,enforcement actions ,an enforcement action imposed on a #g7;a7 lender by the ,director under subparagraph 7,a7 shall be based on the severity or frequency of the violation and may include assessing a civil monetary penalty against the #g7;a7 lender in an amount that is not greater than #bej1jjj4 7#c7 ,appeal by lender ,a #g7;a7 lender may appeal an enforcement action imposed by the ,director described in this subsection to the ,office of ,hearings and ,appeals established under section #e7;i7 or to an appropriate district court of the ,united ,states4 7f7 ,regulations ,not later than #a year after the date of the enactment of this section1 the ,administrator shall issue regulations1 after opportunity for notice and comment1 to carry out subsection 7e74 7g7 ,servicing and liquidation responsibilities ,during any period during which a #g7;a7 lender is suspended or otherwise prohibited from making loans under section #g7;a71 the #g7;a7 lender shall remain obligated to maintain all servicing and liquidation activities delegated to the lender by the ,administrator1 unless otherwise specified by the ,director4 7h7 ,portfolio risk analysis of #g7;a7 loans 7#a7 ,in general ,the ,director shall annually conduct a risk analysis of the portfolio of the ,administration with respect to all loans guaranteed under section #g7;a74 7#b7 ,report to ,congress ,on ,december #a1 #bjah1 and every ,december #a thereafter1 the ,director shall submit to ,congress a report containing the results of each portfolio risk analysis conducted under paragraph 7#a7 during the fiscal year preceding the submission of the report1 which shall include-- 7,a7 an analysis of the overall program risk of loans guaranteed under section #g7;a72 7,b7 an analysis of the program risk1 set forth separately by industry concentration2 7,c7 without identifying individual #g7;a7 lenders by name1 a consolidated analysis of the risk created by the individual #g7;a7 lenders responsible for not less than #a percent of the gross loan approvals set forth separately for the year covered by the report by-- 7i7 the dollar value of the loans made by such #g7;a7 lenders2 and 7ii7 the number of loans made by such #g7;a7 lenders2 7,d7 steps taken by the ,administrator to mitigate the risks identified in subparagraphs 7,a71 7,b71 and 7,c72 7,e7 the number of #g7;a7 lenders1 the number of loans made1 and the gross and net dollar amount of loans made2 7,f7 the number and dollar amount of total losses1 the number and dollar amount of total purchases1 and the percentage and dollar amount of recoveries at the ,administration2 7,g7 the number and type of enforcement actions recommended by the ,director2 7,h7 the number and type of enforcement actions approved by the ,lender ,oversight ,committee established under section #dh2 7,i7 the number and type of enforcement actions disapproved by the ,lender ,oversight ,committee2 and 7,j7 the number and dollar amount of civil monetary penalties assessed4 7i7 ,budget submission and justification ,the ,director shall annually provide1 in writing1 a fiscal year budget submission for the ,office and a justification for such submission to the ,administrator4 ,such submission and justification shall-- 7#a7 include salaries and expenses of the ,office and the charge for the lender oversight fees2 7#b7 be submitted at or about the time of the budget submission by the ,president under section #aaje7;a7 of title #ca2 and 7#c7 be maintained in an indexed form and made available for public review for a period of not less than #e years beginning on the date of submission and justification4 #dh4 ,lender ,oversight ,committee 7a7 ,establishment ,there is established within the ,administration the ,lender ,oversight ,committee 7in this section referred to as the ,committee74 7b7 ,membership ,the ,committee shall consist of at least #h members selected by the ,administrator1 of which-- 7#a7 #c members shall be voting members1 #b of whom shall be career appointees in the ,senior ,executive ,service 7as defined in section #cacb of title #e1 ,united ,states ,code72 and 7#b7 the remaining members shall be nonvoting members who shall serve in an advisory capacity on the ,committee4 7c7 ,duties ,the ,committee shall-- 7#a7 review reports on lender oversight activities2 7#b7 review formal enforcement action recommendations of the ,director of the ,office of ,credit ,risk ,management with respect to any lender making loans under section #g7;a7 and any ,lending ,partner or ,intermediary participant of the ,administration in a lending program of the ,office of ,capital ,access of the ,administration2 7#c7 in carrying out paragraph 7#b7 with respect to formal enforcement actions taken under subsection 7d7 or 7e7 of section #bc1 vote to recommend or not recommend action to the ,administrator or a designee of the ,administrator2 7#d7 in carrying out paragraph 7#b7 with respect to any formal enforcement action not specified under subsection 7d7 or 7e7 of section #bc1 vote to approve1 disapprove1 or modify the action2 7#e7 review1 in an advisory capacity1 any lender oversight1 portfolio risk management1 or program integrity matters brought by the ,director2 and 7#f7 take such other actions and perform such other functions as may be delegated to the ,committee by the ,administrator4 7d7 ,meetings 7#a7 ,in general ,the ,committee shall meet as necessary1 but not less frequently than on a quarterly basis4 7#b7 ,reports ,the ,committee shall submit to the ,administrator a report detailing each meeting of the ,committee1 including if the ,committee does or does not vote to approve a formal enforcement action of the ,director of the ,office of ,credit ,risk ,management with respect to a lender4 4 7b7 ,supervision duties for #g7;a7 lenders ,effective ,january #a1 #bjai1 subsection 7d7 of section #dg 7as added by subsection 7a77 is amended to read as follows3 7d7 ,supervision duties for #g7;a7 lenders 7#a7 ,reviews ,with respect to #g7;a7 lenders1 an employee of the ,office shall-- 7,a7 be present for and supervise any such review that is conducted by a contractor of the ,office on the premise of the #g7;a7 lender2 and 7,b7 supervise any such review that is not conducted on the premise of the #g7;a7 lender4 7#b7 ,review report timeline 7,a7 ,in general ,notwithstanding any other requirements of the ,office or the ,administrator1 the ,administrator shall develop and implement a review report timeline which shall-- 7i7 require the ,administrator to-- 7,i7 deliver a written report of the review to the #g7;a7 lender not later than #fj business days after the date on which the review is concluded2 or 7,,ii7 if the ,administrator expects to submit the report after the end of the #fj-;day period described in clause 7i71 notify the #g7;a7 lender of the expected date of submission of the report and the reason for the delay2 and 7ii7 if a response by the #g7;a7 lender is requested in a report submitted under subparagraph 7,a71 require the #g7;a7 lender to submit responses to the ,administrator not later than #de business days after the date on which the #g7;a7 lender receives the report4 7,b7 ,extension ,the ,administrator may extend the time frame described in subparagraph 7,a77i77,,ii7 with respect to a #g7;a7 lender as the ,administrator determines necessary4 4 7c7 ,transfer of functions 7#a7 ,office of ,credit ,risk ,management ,all functions of the ,office of ,credit ,risk ,management of the ,small ,business ,administration1 including the personnel1 assets1 and obligation of the ,office of ,credit ,risk ,management1 as in existence on the day before the date of the enactment of this ,act1 shall be transferred to the ,office of ,credit ,risk ,management established under section #dg of the ,small ,business ,act1 as added by subsection 7a74 7#b7 ,lender ,oversight ,committee ,all functions of the ,lender ,oversight ,committee of the ,small ,business ,administration1 including the personnel1 assets1 and obligations of the ,lender ,oversight ,committee1 as in existence on the day before the date of the enactment of this ,act1 shall be transferred to the ,lender ,oversight ,committee established under section #dh of the ,small ,business ,act1 as added by subsection 7a74 7d7 ,deeming of name 7#a7 ,office of ,credit ,risk ,management ,any reference in a law1 regulation1 guidance1 document1 paper1 or other record of the ,united ,states to the ,office of ,credit ,risk ,management of the ,small ,business ,administration shall be deemed a reference to the ,office of ,credit ,risk ,management1 established under section #dg of the ,small ,business ,act1 as added by subsection 7a74 7#b7 ,lender ,oversight ,committee ,any reference in a law1 regulation1 guidance1 document1 paper1 or other record of the ,united ,states to the ,lender ,oversight ,committee of the ,small ,business ,administration shall be deemed a reference to the ,lender ,oversight ,committee1 established under section #dh of the ,small ,business ,act1 as added by subsection 7a74 7e7 ,technical amendment ,section #c7r77#b7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcb7r77#b77 is amended by striking regulated ,,sba lender each place it appears in heading and text and inserting regulated lender4 #d4 ,definition of credit elsewhere 7a7 ,in general ,the ,small ,business ,act 7#ae ,u4,s4,c4 #fca et seq47 is amended-- 7#a7 by striking section #c7;h7 7#ae ,u4,s4,c4 #fcb7;h77 and inserting the following3 7h7 ,the term credit elsewhere means-- 7#a7 for the purposes of this ,act 7except as used in section #g7;b771 the availability of credit on reasonable terms and conditions to the individual loan applicant from non-,federal1 non-,state1 or non-local government sources1 considering factors associated with conventional lending practices1 including-- 7,a7 the business industry in which the loan applicant operates2 7,b7 whether the loan applicant is an enterprise that has been in operation for a period of not more than #b years2 7,c7 the adequacy of the collateral available to secure the requested loan2 7,d7 the loan term necessary to reasonably assure the ability of the loan applicant to repay the debt from the actual or projected cash flow of the business2 and 7,e7 any other factor relating to the particular credit application1 as documented in detail by the lender1 that cannot be overcome except through obtaining a ,federal loan guarantee under prudent lending standards2 and 7#b7 for the purposes of section #g7;b71 the availability of credit on reasonable terms and conditions from non-,federal sources taking into consideration the prevailing rates and terms in the community in or near where the applicant business concern transacts business1 or the applicant homeowner resides1 for similar purposes and periods of time4 2 and 7#b7 in section #g7;a77#a77;,a77i7 7#ae ,u4,s4,c4 #fcf7;a77#a77;,a77i771 by inserting ,the ,administrator has the authority to direct1 and conduct oversight for1 the methods by which lenders determine whether a borrower is able to obtain credit elsewhere4 before ,no financial assistance4 7b7 ,technical amendment ,section #ah7;b7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fdg7;b77 is amended to read as follows3 7b7 ,as used in this ,act1 the term agricultural enterprises means those small business concerns engaged in the production of food and fiber1 ranching1 and raising of livestock1 aquaculture1 and all other farming and agricultural-related industries4 4 #e4 ,authority for ,administrator to increase amount for general business loans ,section #bj of the ,small ,business ,act 7#ae ,u4,s4,c4 #fca note7 is amended-- 7#a7 by redesignating subsection 7j7 as subsection 7f72 and 7#b7 by adding at the end the following new subsection3 7g7 ,authority ,to increase amount of general business loans 7#a7 ,in general ,subject to paragraphs 7#b7 and 7#c7 and with respect to fiscal year #bjah and each fiscal year thereafter1 if the ,administrator determines that the amount of commitments by the ,administrator for general business loans authorized under section #g7;a7 for a fiscal year could exceed the limit on the total amount of commitments the ,administrator may make for those loans under this ,act1 an appropriations ,act1 or any other provision of law1 the ,administrator may make commitments for those loans for that fiscal year in an aggregate amount equal to not more than #aae percent of that limit4 7#b7 ,notice required before exercising authority ,not later than #cj days before the date on which the ,administrator intends to exercise the authority under paragraph 7#a71 the ,administrator shall submit notice of intent to exercise the authority to-- 7,a7 the ,committee on ,small ,business and ,entrepreneurship and the ,subcommittee on ,financial ,services and ,general ,government of the ,committee on ,appropriations of the ,senate2 and 7,b7 the ,committee on ,small ,business and the ,subcommittee on ,financial ,services and ,general ,government of the ,committee on ,appropriations of the ,house of ,representatives4 7#c7 ,limitation ,the ,administrator shall not exercise the authority under paragraph 7#a7 more than once during any fiscal year4 4 #f4 ,establishing a process for waivers 7a7 ,in general ,if the ,administrator exercises statutory or regulatory authority to waive a regulation or a requirement in the ,standard ,operating ,procedures ,manual or ,policy ,notice related to a program or function of the ,office of ,capital ,access of the ,administration1 the waiver shall be in writing and be maintained in an indexed form4 7b7 ,no new waiver authority ,nothing in subsection 7a7 shall be construed as creating new authority for the ,administrator to waive regulations of the ,administration4 #g4 ,repeal of ,small ,business ,loan ,loss ,report ,subsection 7b7 of section #aj of the ,small ,business ,act 7#ae ,u4,s4,c4 #fci7;b77 is repealed4 ,passed the ,house of ,representatives ,may #h1 #bjah4,karen ,l4 ,haas1,clerk4 ,may #i1 #bjah,received2 read twice and placed on the calendar