Sec. 507. ACCREDITED LENDERS PROGRAM

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## SEC. 507 ACCREDITED LENDERS PROGRAM **[**[15 U.S.C. 697d](/us/usc/t15/s697d)**]** ###

(a)Establishment The Administration is authorized to establish an Accredited Lenders Program for qualified State and local development companies that meet the requirements of subsection (b). ###

(b)Requirements The Administration may designate a qualified State or local development company as an accredited lender if such company— ####

(1)has been an active participant in the Development Company Program authorized by sections 502, 503, and 504 for not less than the preceding 12 months; ####

(2)has well-trained, qualified personnel who are knowledgeable in the Administration's lending policies and procedures for such Development Company Program; ####

(3)has the ability to process, close, and service financing for plant and equipment under such Development Company Program; ####

(4)has a loss rate on the company's debentures that is reasonable and acceptable to the Administration; ####

(5)has a history of submitting to the Administration complete and accurate debenture guaranty application packages; and ####

(6)has demonstrated the ability to serve small business credit needs for financing plant and equipment through the Development Company Program. ###

(c)Expedited Processing of Loan Applications The Administration shall develop an expedited procedure for processing a loan application or servicing action submitted by a qualified State or local development company that has been designated as an accredited lender in accordance with subsection (b). ###

(d)Suspension or Revocation of Designation ####

(1)In general The designation of a qualified State or local development company as an accredited lender may be suspended or revoked if the Administration determines that— #####

(A)the development company has not continued to meet the criteria for eligibility under subsection (b); or #####

(B)the development company has failed to adhere to the Administration's rules and regulations or is violating any other applicable provision of law. ####

(2)Effect A suspension or revocation under paragraph

(1)shall not affect any outstanding debenture guarantee. ### (e)20 Express Loan Authority A local development company designated as an accredited lender in accordance with subsection (b)— ####

(1)may— #####

(A)approve, authorize, close, and service covered loans that are funded with proceeds of a debenture issued by the company; and #####

(B)authorize the guarantee of a debenture described in subparagraph (A); and ####

(2)with respect to a covered loan, shall be subject to final approval as to eligibility of any guarantee by the Administration pursuant to section 503(a), but such final approval shall not include review of decisions by the lender involving creditworthiness, loan closing, or compliance with legal requirements imposed by law or regulation. 20Section 328(b) of division N of Public Law 116–260 struck subsection

(e)of section 507 and added new subsections

(e)and

(f)(shown above). Effective on September 30, 2023, paragraph

(2)of such section 328(b) of such Public Law provides for a prospective repeal and insert of a subsection. See comment below and after subsection (f). ### (f)20 Definitions In this section— ####

(1)the term “**accredited lender certified company**” means a certified development company that meets the requirements under subsection (b), including a certified development company that the Administration has designated as an accredited lender under that subsection; ####

(2)the term “**covered loan**”— #####

(A)means a loan made under section 502 in an amount that is not more than $500,000; and #####

(B)does not include a loan made to a borrower that is in an industry that has a high rate of default, as annually determined by the Administrator and reported in rules of the Administration; and ####

(3)the term “**qualified State or local development company**” has the meaning given the term in section 503(e). **[**Note: Effective on September 30, 2023, paragraph

(2)of section 328(b) of division N of Public Law 116–260 provides for an amendment to strike subsections

(e)and

(f)and insert a subsection

(e)as follows:**]** ###

(e)Definition In this section, the term “**qualified State or local development company**” has the meaning given the term in section 503(e).

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