§657u — Title 15 Commerce and Trade | U.S. Code

Summary

Creates a Lender Oversight Committee inside the Administration. The Administrator must pick at least 8 people for the Committee. Three members vote, and two of those must be career Senior Executive Service appointees. The other members are advisors who do not vote. The Committee must review lender oversight reports and consider enforcement recommendations from the Director of the Office of Credit Risk Management about lenders (including those making loans under section 636(a)) and lending partners in Office of Capital Access programs. For enforcement actions under subsections (d) or (e) of section 650, the Committee votes to recommend or not recommend the action to the Administrator or the Administrator’s designee. For other enforcement actions, it votes to approve, disapprove, or modify the action. It also advises on lender oversight, portfolio risk, and program integrity when asked and does other tasks the Administrator gives it. The Committee must meet at least once every quarter and must send the Administrator a report after each meeting, saying whether it voted to approve any formal enforcement action.

Title 15, §657u

Commerce and Trade — Source: USLM XML via OLRC

(a)There is established within the Administration the Lender Oversight Committee (in this section referred to as the “Committee”).

(b)The Committee shall consist of at least 8 members selected by the Administrator, of which—

(1)3 members shall be voting members, 2 of whom shall be career appointees in the Senior Executive Service (as defined in section 3132 of title 5); and

(2)the remaining members shall be nonvoting members who shall serve in an advisory capacity on the Committee.

(c)The Committee shall—

(1)review reports on lender oversight activities;

(2)review formal enforcement action recommendations of the Director of the Office of Credit Risk Management with respect to any lender making loans under section 636(a) of this title and any Lending Partner or Intermediary participant of the Administration in a lending program of the Office of Capital Access of the Administration;

(3)in carrying out paragraph (2) with respect to formal enforcement actions taken under subsection (d) or (e) of section 650 of this title, vote to recommend or not recommend action to the Administrator or a designee of the Administrator;

(4)in carrying out paragraph (2) with respect to any formal enforcement action not specified under subsection (d) or (e) of section 650 of this title, vote to approve, disapprove, or modify the action;

(5)review, in an advisory capacity, any lender oversight, portfolio risk management, or program integrity matters brought by the Director; and

(6)take such other actions and perform such other functions as may be delegated to the Committee by the Administrator.

(d)(1)The Committee shall meet as necessary, but not less frequently than on a quarterly basis.

(2)The Committee shall submit to the Administrator a report detailing each meeting of the Committee, including if the Committee does or does not vote to approve a formal enforcement action of the Director of the Office of Credit Risk Management with respect to a lender.

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

Change of Name

Pub. L. 115–189, § 3(d)(2), June 21, 2018, 132 Stat. 1496, provided that: “Any reference in a law, regulation, guidance, document, paper, or other record of the United States to the Lender Oversight Committee of the Small Business Administration shall be deemed a reference to the Lender Oversight Committee, established under section 48 of the Small Business Act [15 U.S.C. 657u], as added by subsection (a).”

Transfer of Functions

Pub. L. 115–189, § 3(c)(2),

June 21, 2018, 132 Stat. 1496, provided that: “All functions of the Lender Oversight Committee of the Small Business Administration, including the personnel, assets, and obligations of the Lender Oversight Committee, as in existence on the day before the date of the enactment of this Act [

June 21, 2018], shall be transferred to the Lender Oversight Committee established under section 48 of the Small Business Act [15 U.S.C. 657u], as added by subsection (a).”

§657u Lender Oversight Committee