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Code · BILL · 114th Congress · S. 2992 (Introduced in Senate) — To amend the Small Business Act to strengthen the Office of Credit Risk Management of the Small Business Administrati... · Sec. 6

Sec. 6. Issues with respect to loans to small business concerns

262 words·~1 min read·/bill/114/s/2992/is/section-6·

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Section 7(a) of the Small Business Act ( 15 U.S.C. 636(a) ) is amended by adding at the end the following: Any lender that is required to report information to the Administration with respect to a loan guaranteed under this subsection on Form 1502, or any successor form that contains the information in Form 1502 as in effect on January 1, 2016, and has been approved by the Director of the Office of Management and Budget under section 3507 of title 44, United States Code, shall ensure that the information on such form is complete and accurate.
For a loan made under this subsection, a lender may use an outside agent or lender service provider to assist in identifying potential applicants and with processing, disbursing, servicing, and liquidating the loan, except that the lender, and not any agent, shall be wholly responsible for— the accuracy of all information submitted with respect to the loan; all decisions with respect to the eligibility and creditworthiness of the loan applicant; and any actions taken with respect to the loan.
Nothing in subparagraph
(A)shall be construed to limit the authority of the Administrator that was in effect on the day before the date of enactment of this paragraph to bring an enforcement action against an outside agent or a lender service provider. With respect to a loan made under this subsection, a lender may not sell or pledge an amount that is more than the greater of— 85 percent of the loan; or the percentage of the loan that is guaranteed by the Administration. .
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Sec. 6
Issues with respect to loans to small business concerns
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