This bill permanently establishes the Small Business Administration's Community Advantage Loan Program, which guarantees loans made by mission-driven lenders like community development financial institutions to small businesses in underserved areas, including rural communities, low-income neighborhoods, and businesses owned by veterans. It sets loan limits (generally $350,000, up to $750,000 for experienced lenders), requires that at least 60 percent of loans go to underserved markets, and establishes loan loss reserve requirements, lender training, and reporting obligations to track demographic and geographic lending data. The bill also modernizes oversight of Small Business Lending Companies by capping their number at 17, setting minimum capital requirements, mandating annual stress tests and anti-money-laundering compliance reviews, clarifying loan underwriting and business affiliation rules, and requiring SBA to notify Congress before launching any direct lending programs. Additionally, it restricts lenders from using streamlined "delegated authority" to refinance their own existing debt and strengthens the SBA's Office of Credit Risk Management by elevating its director's role and compensation. Finally, the bill directs the Government Accountability Office to study alternative credit models, audit SBA oversight capacity, and review lender practices regarding criminal history in loan decisions, with reports due within two to five years of enactment.
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