Promoting Lending to America's Small Businesses Act of 2009 - Amends the Federal Credit Union Act to increase the total permissible amount of member business loans by an insured credit union (excluding those made to nonprofit religious organizations) to a limit of 25% of the credit union's total assets.
Increases from $50,000 to $250,000 the maximum total extensions of credit a borrower or associated member of an insured credit union may have before any extension of credit shall be considered a member business loan.
Revises the prohibition against an increase in the total amount of member business loans by an undercapitalized insured credit union until it becomes adequately capitalized. Repeals the condition of becoming adequately capitalized, and requires only that the National Credit Union Administration Board approve the increase.
Excludes from the definition of "member business loan" any extension of credit, meeting other specified criteria, that is made to a member for commercial, corporate, business, farm, or agricultural purposes in an underserved area.
[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3380 Introduced in House (IH)]
111th CONGRESS
1st Session
H. R. 3380
To amend the Federal Credit Union Act to advance the ability of credit
unions to promote small business growth and economic development
opportunities, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 29, 2009
Mr. Kanjorski (for himself and Mr. Royce) introduced the following
bill; which was referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
To amend the Federal Credit Union Act to advance the ability of credit
unions to promote small business growth and economic development
opportunities, 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.
The Act may be cited as the ``Promoting Lending to America's Small
Businesses Act of 2009''.
SEC. 2. LIMITS ON MEMBER BUSINESS LOANS.
Section 107A(a) of the Federal Credit Union Act (12 U.S.C.
1757a(a)) is amended by striking ``than the lesser of--'' and all that
follows and inserting ``than 25 percent of the total assets of the
credit union.''.
SEC. 3. DEFINITION OF MEMBER BUSINESS LOAN.
Section 107A(c)(1)(B)(iii) of the Federal Credit Union Act (12
U.S.C. 1757a(c)(1)(B)(iii)) is amended by striking ``$50,000'' and
inserting ``an amount, not to exceed $250,000, that the Board shall
prescribe by regulation''.
SEC. 4. RESTRICTION ON MEMBER BUSINESS LOANS.
Section 216(g)(2) of the Federal Credit Union Act (12 U.S.C.
1790d(g)(2)) is amended by striking ``until such time as the credit
union becomes adequately capitalized'' and inserting ``unless otherwise
approved by the Board''.
SEC. 5. MEMBER BUSINESS LOAN EXCLUSION FOR LOANS TO NONPROFIT RELIGIOUS
ORGANIZATIONS.
Section 107A(a) of the Federal Credit Union Act (12 U.S.C.
1757a(a)) is further amended by inserting ``, excluding loans made to
nonprofit religious organizations,'' after ``total amount of such
loans''.
SEC. 6. ENCOURAGING SMALL BUSINESS DEVELOPMENT IN UNDERSERVED URBAN AND
RURAL COMMUNITIES.
(a) Member Business Loan Exclusion for Loans in Underserved
Areas.--Section 107A(c)(1)(B) of the Federal Credit Union Act (12
U.S.C. 1757a(c)(1)(B)) is amended--
(1) by striking ``or'' after the semicolon at the end of
clause (iv);
(2) by redesignating clause (v) as clause (vi); and
(3) by inserting after clause (iv) the following new
clause:
``(v) that is made to a member, the
proceeds of which are to be used for
commercial, corporate, business, farm, or
agricultural purposes in an underserved area if
such extension of credit--
``(I) is made to a person or
organization whose principal residence
or place of business is located within
an underserved area (as defined in
section 101(10)) served by the credit
union, and is not a business, or a
local outlet of a business, operating
on a nationwide basis (for purposes of
this subclause, a locally owned
franchise that consists only of local
operations shall not be treated as a
business operating on a nationwide
basis); or
``(II) is secured by real property
located within, or is intended to
operate as part of a business located
within, such underserved area; or''.
(b) Underserved Area Defined.--Section 101 of the Federal Credit
Union Act (12 U.S.C. 1752) is amended--
(1) by striking ``and'' at the end of paragraph (8);
(2) by striking the period at the end of paragraph (9) and
inserting ``; and''; and
(3) by adding at the end the following new paragraph:
``(10) The term `underserved area'--
``(A) means a geographic area consisting of a
single census tract or a group of census tracts, each
of which--
``(i) meets the criteria for--
``(I) a low income community, as
defined in section 45D(e) of the
Internal Revenue Code of 1986; or
``(II) an investment area, as
defined and designated under section
103(16) of the Community Development
Banking and Financial Institutions Act
of 1994; and
``(ii) is not a tract in which 50 percent
or more of the resident families have annual
incomes in excess of $75,000 (as adjusted
periodically by the Board, at the discretion of
the Board, to reflect changes in the average
Consumer Price Index for all-urban consumers
published by the Department of Labor); and
``(B) notwithstanding subparagraph (A), includes,
with respect to any Federal credit union, any
geographic area within which such credit union--
``(i) has received approval to provide
service before the date of the enactment of the
Promoting Lending to America's Small Businesses
Act of 2009 from the National Credit Union
Administration; and
``(ii) has established a service facility
before such date of enactment.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
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