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Title 15 — Commerce and TradeRelease 119-73not60

§697d Accredited Lenders Program

Title 15 › Chapter 14B— SMALL BUSINESS INVESTMENT PROGRAM › Subchapter V— LOANS TO STATE AND LOCAL DEVELOPMENT COMPANIES › § 697d

Last updated Apr 3, 2026|Official source

Summary

The Administration can create an Accredited Lenders Program to name certain state or local development companies as accredited lenders. To qualify, a company must have taken part in the Development Company Program for at least 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 debenture loss rate, file complete guaranty applications, and show it serves small business financing needs. The Administration must set up a faster way to process loan requests and servicing for accredited lenders. It can suspend or end a company’s accredited status if the company stops meeting the rules or breaks the law. Any suspension or revocation does not cancel existing debenture guarantees. The term “qualified State or local development company” is defined in section 697(e).

Full Legal Text

Title 15, §697d

Commerce and Trade — Source: USLM XML via OLRC

(a)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)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 section 696, 697, and 697a of this title 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)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)(1)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)A suspension or revocation under paragraph (1) shall not affect any outstanding debenture guarantee.
(e)In this section, the term “qualified State or local development company” has the meaning given the term in section 697(e) of this title.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

2020—Subsecs. (e), (f). Pub. L. 116–260, § 328(b)(2), added subsec. (e) and struck out former subsec. (e) which related to express loan authority of a local development company designated as an accredited lender, and subsec. (f) which defined terms “accredited lender certified company”, “covered loan”, and “qualified State or local development company” in this section. Pub. L. 116–260, § 328(b)(1), added subsecs. (e) and (f) and struck out former subsec. (e) which defined “qualified State or local development company” for purposes of this section.

Statutory Notes and Related Subsidiaries

Effective Date

of 2020 Amendment Pub. L. 116–260, div. N, title III, § 328(b)(2), Dec. 27, 2020, 134 Stat. 2040, provided in part that the amendment made by section 328(b)(2) is effective on Sept. 30, 2023. Except as otherwise provided, amendment by Pub. L. 116–260 effective on Dec. 27, 2020, and applicable to loans and grants made on or after Dec. 27, 2020, see section 348 of Pub. L. 116–260, set out as a note under section 636 of this title.

Regulations

Pub. L. 103–403, title II, § 212(b), Oct. 22, 1994, 108 Stat. 4184, provided that: “Not later than 120 days after the date of enactment of this Act [Oct. 22, 1994], the Administration shall promulgate final

Regulations

to carry out this section [enacting this section and provisions set out below].” Report on Implementation of Program Pub. L. 103–403, title II, § 212(c), Oct. 22, 1994, 108 Stat. 4184, provided that: “Not later than 1 year after the

Effective Date

of

Regulations

promulgated under subsection (b) [set out above], and biennially thereafter, the Administration shall report to the Committees on Small Business of the Senate and the House of Representatives [Committee on Small Business of Senate now Committee on Small Business and Entrepreneurship of Senate] on the implementation of this section [enacting this section and provisions set out above]. Such report shall include data on the number of development companies designated as accredited lenders, their debenture guarantee volume, their loss rates, the average processing time on their guarantee applications, and such other information as the Administration deems appropriate.”

Reference

Citations & Metadata

Citation

15 U.S.C. § 697d

Title 15 — Commerce and Trade

Last Updated

Apr 3, 2026

Release point: 119-73not60