Sec. 202. Findings
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Congress finds that— in 1982, the Administration placed a moratorium on licensing new small business lending companies because the Administration lacked the resources to effectively service and supervise additional small business lending companies; according to the Office of the Inspector General of the Administration, the reduction in staff in the Office of Credit Risk Management of the Administration from 42 full-time employees to 29 full-time employees could affect the fiscal year 2023 goals of the Administration for oversight reviews; the Administration has finalized a rulemaking to lift the moratorium on the licensing new small business lending companies and establish a new Community Advantage small business lending company license, and there is no cap on the number of small business lending companies licenses that could be issued by the Administration; the increased costs and fees for an existing Community Advantage lender in the Community Advantage Pilot Program of the Administration to obtain and maintain a Community Advantage small business lending company license could be cost prohibitive for a majority of current Community Advantage lenders to transition to a Community Advantage small business lending company; on May 1, 2023, the Administration announced that the Community Advantage Pilot Program would sunset on September 30, 2023, and the authority of a Community Advantage lender to make loans under section 7(a) of the Small Business Act ( 15 U.S.C. 636(a) ) under the pilot program will terminate; the Administration does not have adequate resources to issue either more than 3 new small business lending company licenses or new Community Advantage small business lending company licenses, as the Office of Credit Risk Management does not have the capacity to assume additional oversight responsibilities; and in order to increase small dollar lending in underserved areas, the Community Advantage Pilot Program should be made permanent, giving lenders certainty to continue to make loans under section 7(a) of the Small Business Act ( 15 U.S.C. 636(a) ).
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U.S. Code