§697d Accredited Lenders Program

Summary

Allows the Administration to create an Accredited Lenders Program for qualified State and local development companies that meet certain requirements. To be accredited, a company must have been active in the Development Company Program for at least the past 12 months, have trained staff who know the Administration’s lending rules, be able to handle plant-and-equipment loans from start to finish, keep an acceptable loss rate on its debentures, file complete and accurate debenture guaranty applications, and show it serves small business credit needs for plant and equipment. The Administration must set up a faster process to handle loan applications and servicing from accredited lenders. The Administration can suspend or take away accreditation if a company stops meeting the rules or breaks the Administration’s regulations or other laws. Any existing debenture guarantee stays in effect. “Qualified State or local development company” means the term as defined in section 697(e).