Expanding Access to Affordable Credit for Small Businesses Act
This bill establishes rules related to the authorization of lending institutions (including banks, small business lending companies, non-federally regulated lenders, and non-depository lending institutions) to make loans under the 7(a) Program of the Small Business Administration (SBA). Under the 7(a) Program, the SBA provides business loans and loan guaranties to small business borrowers unable to obtain financing elsewhere.
Specifically, the SBA must ensure that these lending institutions and other entities (1) provide an independent audit that examines adherence to all applicable federal laws and regulations regarding anti-money laundering, counterterrorist financing, sanctions, and financial crimes; and (2) implement a compliance program that is designed to conform with relevant anti-money laundering laws and regulations.
To authorize the Administrator of the Small Business Administration to 
 license lending institutions to make loans under section 7(a) of the 
              Small Business Act, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Expanding Access to Affordable 
Credit for Small Businesses Act''.

SEC. 2. LICENSING OF LENDING INSTITUTIONS.

    (a) In General.--Section 7(a)(17) of the Small Business Act (15 
U.S.C. 636(a)(17)) is amended to read as follows:
            ``(17) Licensing of lending institutions.--
                    ``(A) In general.--The Administration may license 
                lending institutions to make loans authorized under 
                this subsection.
                    ``(B) Criteria.--In authorizing lending 
                institutions under subparagraph (A), the Administrator 
                shall ensure that each such institution--
                            ``(i) provides an independent audit by a 
                        third party or internal audit department that 
                        examines adherence to all applicable Federal 
                        laws and regulations relating to anti-money 
                        laundering, terrorist financing, sanctions, and 
                        financial crimes; and
                            ``(ii) has in place a compliance program 
                        that conforms with the requirements described 
                        in the `Bank Secrecy Act/Anti-Money Laundering 
                        Examination Manual' of the Financial 
                        Institutions Examination Council and other 
                        applicable Federal anti-money laundering 
                        regulatory guidance, including--
                                    ``(I) an annual financial crimes 
                                risk assessment;
                                    ``(II) designation of an individual 
                                to serve as an anti-money laundering 
                                officer;
                                    ``(III) a customer identification 
                                program;
                                    ``(IV) customer due diligence and 
                                enhanced due diligence;
                                    ``(V) suspicious activity 
                                monitoring and reporting;
                                    ``(VI) information sharing;
                                    ``(VII) record retention;
                                    ``(VIII) sanctions implemented by 
                                the Office of Foreign Assets Control;
                                    ``(IX) annual employee training, 
                                including general training and job-
                                specific training; and
                                    ``(X) monitoring and testing.
                    ``(C) Prohibition on moratorium.--The Administrator 
                may not impose a moratorium on the licensing of lending 
                institutions described in subparagraph (A).
                    ``(D) New applicants.--Not later than 1 year after 
                the date of the enactment of this paragraph, the 
                Administrator shall begin accepting applications for 
                the licensing of lending institutions.
                    ``(E) Reports.--Not later than 1 year after the 
                date of the enactment of this paragraph, and annually 
                thereafter, the Administrator shall submit to the 
                Committee on Small Business and Entrepreneurship of the 
                Senate and the Committee on Small Business of the House 
                of Representatives a report that includes, with respect 
                to the year preceding the report--
                            ``(i) the number of lending institutions 
                        that applied to make loans under this 
                        subsection;
                            ``(ii) the number of such lending 
                        institutions that the Administrator approved to 
                        make loans under this subsection;
                            ``(iii) the reason for any denial of an 
                        application of such a lending institution;
                            ``(iv) the number and total amount of loans 
                        made by under this subsection by lending 
                        institutions; and
                            ``(v) demographic information on the 
                        recipients of the loans described in clause 
                        (iv).
                    ``(F) Rule of construction.--Nothing in this 
                paragraph shall be construed to provide authority to 
                the Administrator to regulate small business lending 
                companies, non-Federally regulated lenders, or 
                nondepository lending institutions, or banks.
                    ``(G) Definitions.--In this paragraph:
                            ``(i) Bank.--The term `bank' has the 
                        meaning given in section 3 of the Federal 
                        Deposit Insurance Act.
                            ``(ii) Lending institution.--The term 
                        `lending institution' has the meaning given 
                        such term by the Administrator and shall 
                        include a small business lending company, a 
                        non-Federally regulated lender, a nondepository 
                        lending institution, or a bank.
                            ``(iii) Non-federally regulated lender; 
                        small business lending company.--The terms 
                        `non-Federally regulated lender' and `small 
                        business lending company' have the meanings 
                        given, respectively, under section 23.''.
    (b) Authorization of Appropriations.--There is authorized to be 
appropriated for the Office of Credit Risk Management of the Small 
Business Administration such sums as may be necessary to conduct 
oversight of lending institutions and other entities as described under 
paragraph (17) of section 7(a) of the Small Business Act (15 U.S.C. 
636(a)), as added by subsection (a).
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Expanding Access to Affordable Credit for Small Businesses Act
To authorize the Administrator of the Small Business Administration to license lending institutions to make loans under section 7(a) of the Small Business Act, and for other purposes.
Expanding Access to Affordable Credit for Small Businesses Act
Rep. Donalds, Byron