#aafth ,,congress  #b;d ,session  ,h4   
,r4 #haii  ,,an ,,act  ,to amend the    
,small ,business ,act to enhance the    
,office of ,credit ,risk ,management1 to
 require the ,administrator of the      
,small ,business ,administration to     
issue rules relating to environmental   
obligations of certified development    
companies1 and for other purposes4  #a4 
,short title ,this ,act may be cited as 
the #ejd ,credit ,risk ,management      
,improvement ,act of #bjbj4  #b4        
,enhancements to the ,office of ,credit 
,risk ,management ,section #dg of the   
,small ,business ,act 7#ae ,u4,s4,c4    
#fegt7 is amended--  7#a7 by striking   
subsection 7b7 and inserting the        
following3  7b7 ,duties ,the ,office--  
7#a7 shall be responsible for-- 7,a7    
supervising--  7i7 any lender making    
loans under section #g7;a7 7in this     
section referred to as a #g7;a7 lender72
  7ii7 any ,lending ,partner or         
,intermediary participant of the        
,administration in a lending program of 

the ,office of ,capital ,access of the  
,administration2  7iii7 any small       
business lending company or a           
non-,federally regulated lender without 
regard to the requirements of section   
#bc2 and  7iv7 any certified development
 company described under the program    
established under title ,v of the ,small
 ,business ,investment ,act of #aieh    
7referred to in this section as a       
certified development company71 as      
provided in subsection 7k72 and  7,b7   
conducting file reviews with respect to 
loan closings under the program         
established under title ,v of the ,small
 ,business ,investment ,act of #aieh1 as
 provided in subsection 7j72 and  7#b7  
may--  7,a7 take formal and informal    
enforcement actions against a certified 
development company1 as provided in     
subsection 7l72 and  7,b7 charge a      
certified development company a fee1 as 
provided in subsection 7m74  2 and  7#b7
 by adding at the end the following new 
subsections3  7j7 ,loan closing file    

reviews ,with respect to a loan closing 
under the program established under     
title ,v of the ,small ,business        
,investment ,act of #aieh1 the ,office  
shall be responsible for the following3 
7#a7 ,conducting a complete file review 
of a random selection of all loan       
closings1 the number1 frequency1 and    
conduct of which shall be at the        
discretion of the ,office1 to ensure    
program integrity1 including a review of
 the items listed on the ,checklist for 
,complete ,file ,review contained in the
 appropriate form of the                
,administration4  7#b7 ,not later than  
#fj days after the date on which each   
complete file review conducted under    
paragraph 7#a7 is completed1 preparing a
 written report documenting the results 
of that review1 which the ,office shall 
send to--  7,a7 the applicable certified
 development company2  7,b7 the         
designated attorney that closed the loan
 for the certified development company2 
and  7,c7 the ,commercial ,loan ,service

 ,center4  7#c7 ,if a complete file     
review conducted under paragraph 7#a7   
reveals a deficiency that could result  
in a loss to the ,administration1       
requiring the applicable certified      
development company or the designated   
attorney to promptly correct the        
deficiency4  7k7 ,supervision of        
certified development companies ,with   
respect to the supervision of certified 
development companies-- 7#a7 an employee
 of the ,office shall--  7,a7 be present
 for1 and supervise1 the review of any  
such company that is conducted by a     
contractor of the ,office on the        
premises of the company2 and  7,b7      
supervise the review of any such company
 that is conducted by a contractor of   
the ,office that is not conducted on the
 premises of the company2 and  7#b7 the 
,administrator shall-- 7,a7 develop a   
timeline for the review by the ,office  
of certified development companies and  
the submission of reports regarding     
those reviews1 under which the          

,administrator shall--  7i7 submit to a 
certified development company a written 
report of any review of the company not 
later than #ij days after the date on   
which the review is concluded2 or  7ii7 
if the ,administrator expects to submit 
the report after the end of the #ij-;day
 period described in clause 7i71 notify 
the company of the expected date of     
submission of the report and the reason 
for the delay2 and  7,b7 if a response  
by a certified development company is   
requested in a report submitted under   
subparagraph 7,a77i71 require the       
company to submit responses to the      
,administrator not later than #de       
business days after the date on which   
the company receives the report4  7l7   
,enforcement authority against certified
 development companies  7#a7 ,informal  
enforcement authority ,the ,director may
 take an informal enforcement action    
against a certified development company 
if the ,director finds that the company 
has violated a statutory or regulatory  

requirement or any requirement in a     
,standard ,operating ,procedures ,manual
 or ,policy ,notice relating 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   
certified development company if the    
,director finds that the company has    
violated-- 7i7 a statutory or regulatory
 requirement1 including a requirement   
relating to the necessary funds for     
making loans when those funds are not   
made available to the company from      
private sources on reasonable terms2 or 
7ii7 any requirement described in a     
,standard ,operating ,procedures ,manual
 or ,policy ,notice relating to a       
program or function of the ,office of   
,capital ,access4  7,b7 ,enforcement    
actions ,the decision to take an        
enforcement action against a certified  

development company 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 company in an amount
 that is not greater than #bej1jjj4     
7#c7 ,failure to submit annual report   
,with respect to a certified development
 company that1 as of the date that is   
#cj days after the date on which the    
company is required to submit any       
report1 fails to submit that report1 the
 ,director may-- 7,a7 suspend the       
company from participating in the       
program established under title ,v of   
the ,small ,business ,investment ,act of
 #aieh for a period that is not longer  
than #cj days2 or  7,b7 impose a penalty
 on the company in an amount to be      
determined by the ,director1 except that
 the amount of the penalty shall be not 
more than #aj1jjj4  7m7 ,fee authority  
regarding certified development         
companies  7#a7 ,in general ,effective  
one year after the date of the enactment

 of this subsection1 the ,office may    
collect from each certified development 
company a fee1 the amount of which--    
7,a7 shall be determined on a graduated 
scale according to the size of the      
portfolio of the certified development  
company with respect to the program     
carried out under title ,v of the ,small
 ,business ,investment ,act of #aieh2   
and  7,b7 shall not exceed the amount   
that is #a basis point with respect to  
the value of the portfolio described in 
subparagraph 7,a74  7#b7 ,payment ,a    
certified development company on which a
 fee is imposed under paragraph 7#a7    
shall pay the fee from the servicing    
fees collected by the development       
company pursuant to regulation4  4  #c4 
,rules relating to obligations of       
certified development companies under   
the ,national ,environmental ,policy    
,act  7a7 ,in general ,not later than   
#ahj days after the date of the         
enactment of this ,act1 the             
,administrator of the ,small ,business  

,administration shall issue rules to    
clarify the procedures necessary for an 
eligible certified development company  
to comply with the applicable           
requirements under ,national            
,environmental ,policy ,act of #aifi    
7#db ,u4,s4,c4 #dcba et seq474  7b7     
,rule of construction ,nothing in this  
section shall be construed to modify the
 requirements of the ,national          
,environmental ,policy ,act of #aifi    
7#db ,u4,s4,c4 #dcba et seq474  7c7     
,eligible certified development company 
defined ,in this section1 the term      
eligible certified development company  
means a certified development company   
defined under title ,v of the ,small    
,business ,investment ,act of #aieh 7#ae
 ,u4,s4,c4 #fie et seq47 that receives  
assistance pursuant to such title4  #d4 
,determination of budgetary effects ,the
 budgetary effects of this ,act1 for the
 purpose of complying with the          
,statutory ,pay-,as-,you-,go ,act of    
#bjaj1 shall be determined by reference 

to the latest statement titled          
,budgetary ,effects of ,,paygo          
,legislation for this ,act1 submitted   
for printing in the ,congressional      
,record by the ,chairman of the ,house  
,budget ,committee1 provided that such  
statement has been submitted prior to   
the vote on passage4  ,passed the ,house
 of ,representatives ,december #c1      
#bjbj4;,clerk4