United States Code

USC most recently checked for updates: May 29, 2023

§ 697d.
Accredited Lenders Program

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

The Administration may designate a qualified State or local development company as an accredited lender if such company—
has been an active participant in the Development Company Program authorized by sections 696, 697, and 697a of this title for not less than the preceding 12 months;
has well-trained, qualified personnel who are knowledgeable in the Administration’s lending policies and procedures for such Development Company Program;
has the ability to process, close, and service financing for plant and equipment under such Development Company Program;
has a loss rate on the company’s debentures that is reasonable and acceptable to the Administration;
has a history of submitting to the Administration complete and accurate debenture guaranty application packages; and
has demonstrated the ability to serve small business credit needs for financing plant and equipment through the Development Company Program.
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).

Suspension or revocation of designation
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—
the development company has not continued to meet the criteria for eligibility under subsection (b); or
the development company has failed to adhere to the Administration’s rules and regulations or is violating any other applicable provision of law.

A suspension or revocation under paragraph (1) shall not affect any outstanding debenture guarantee.

Express loan authority
A local development company designated as an accredited lender in accordance with subsection (b)—
approve, authorize, close, and service covered loans that are funded with proceeds of a debenture issued by the company; and
authorize the guarantee of a debenture described in subparagraph (A); and
with respect to a covered loan, shall be subject to final approval as to eligibility of any guarantee by the Administration pursuant to section 697(a) of this title, 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.
In this section—
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;
the term “covered loan”—
means a loan made under section 696 of this title in an amount that is not more than $500,000; and
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
the term “qualified State or local development company” has the meaning given the term in section 697(e) of this title.
(Pub. L. 85–699, title V, § 507, as added Pub. L. 103–403, title II, § 212(a), Oct. 22, 1994, 108 Stat. 4183; amended Pub. L. 116–260, div. N, title III, § 328(b), Dec. 27, 2020, 134 Stat. 2040.)
cite as: 15 USC 697d