,,ii  #aaith ,,congress  #ast ,session  
,s4 #bfei  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,august #a1    
#bjbe ,mr4 ,young 7for himself and ,ms4 
,klobuchar7 introduced the following    
bill2 which was read twice and referred 
to the ,committee on ,small ,business   
and ,entrepreneurship  ,a ,,bill  ,to   
amend the ,small ,business ,investment  
,act of #aieh 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 #bjbe4  #b4  ,enhancements to   
the ,office of ,credit ,risk ,management
  ,title ,v of the ,small ,business     
,investment ,act of #aieh 7#ae ,u4,s4,c4
 #fie et seq47 is amended by adding at  
the end the following3  #eaa4  ,office  
of ,credit ,risk ,management oversight  

7a7  ,definitions  ,in this section--   
7#a7 the term ,director means the       
,director of the ,office2 and  7#b7 the 
term ,office means the ,office of       
,credit ,risk ,management established   
under section #dg of the ,small         
,business ,act 7#ae ,u4,s4,c4 #fegt74   
7b7  ,duties relating to #ejd program   
,the ,office-- 7#a7 shall be responsible
 for--  7,a7 supervising any certified  
development company1 as provided in     
subsection 7d72 and  7,b7 conducting    
file reviews with respect to loan       
closings under the program established  
under this title1 as provided in        
subsection 7c72 and  7#b7 may-- 7,a7    
take formal and informal enforcement    
actions against a certified development 
company1 as provided in subsection 7e72 
and  7,b7 charge a certified development
 company a fee1 as provided in          
subsection 7g74  7c7  ,loan closing file
 reviews  ,with respect to a loan       
closing under the program established   
under this title1 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  7d7            
,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 7i7--  7,i7 
notify the company of the expected date 
of submission of the report and the     
reason for the delay2 and  7,,ii7 submit
 to the company the report2 and  7,b7 if
 a response by a certified development  
company is requested in a report        
submitted under subparagraph 7,a71      
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  7e7   
,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 #dh of the ,small ,business ,act
 7#ae ,u4,s4,c4 #fegu71 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 #fj 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 this   
title 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  7f7  ,portfolio risk
 analysis of #ejd 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 #ejd4
  7#b7  ,report to ,congress  ,on       

,december #a1 #bjbe1 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 projects and    
loans approved under section #ejd2  7,b7
 an analysis of the program risk1 set   
forth separately by industry            
concentration2  7,c7 without identifying
 individual certified development       
companies by name1 a consolidated       
analysis of the risk created by the     
individual companies responsible for not
 less than #a percent of the gross      
project approvals set forth separately  
for the year covered by the report by-- 
7i7 the dollar value of the loans made  
by such companies2 and  7ii7 the number 
of loans made by such companies2  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 certified development
 companies1 the number of projects      
undertaken1 the number of unique third  
party lenders participating in the      
program1 and the gross and net dollar   
amount of debentures guaranteed and     
approved projects2  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 #dh of the    
,small ,business ,act 7#ae ,u4,s4,c4    
#fegu72  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  7g7  ,fee 
authority regarding certified           

development companies  7#a7  ,in general
  ,on and after the date that is #a year
 after the date of enactment of the #ejd
 ,credit ,risk ,management ,improvement 
,act of #bjbe1 the ,office may collect  
from each certified development company 
a fee as necessary to reduce to zero the
 cost to the ,administration of         
examinations1 reviews1 rulemakings1 and 
other lender oversight activities in    
this ,act1 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 this title2 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  ,eligible certified development    
company defined  ,in this section1 the  
term eligible certified development     
company means a certified development   
company1 within the meaning under title 
,v of the ,small ,business ,investment  
,act of #aieh 7#ae ,u4,s4,c4 #fie et    
seq471 that receives assistance pursuant
 to that title4  7b7  ,requirement ,to  
issue rules  ,not later than #ahj days  
after the date of 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 the       
,national ,environmental ,policy ,act of
 #aifi 7#db ,u4,s4,c4 #dcba et seq474   
7c7  ,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