---
kind: "section"
citation: "15 U.S.C. § 697d"
title: "15"
title_heading: "Commerce and Trade"
number: "697d"
heading: "Accredited Lenders Program"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/15/697d"
units:
  - "Chapter 14B — Small Business Investment Program"
  - "Subchapter V — Loans to State and Local Development Companies"
---

# §697d. Accredited Lenders Program

- (a) **Establishment—** The [Administration](/usc/15/662.md?p=1) is authorized to establish an Accredited Lenders Program for qualified [State](/usc/15/662.md?p=4) and local [development companies](/usc/15/662.md?p=6) that meet the requirements of [subsection (b)](#b).
- (b) **Requirements—** The [Administration](/usc/15/662.md?p=1) may designate a qualified [State](/usc/15/662.md?p=4) or local development [company](/usc/15/662.md?p=3) as an accredited lender if such [company](/usc/15/662.md?p=3)—
  - (1) has been an active participant in the Development [Company](/usc/15/662.md?p=3) Program authorized by sections [696](/usc/15/696.md), [697](/usc/15/697.md), and [697a](/usc/15/697a.md) of this title for not less than the preceding 12 months;
  - (2) has well-trained, qualified personnel who are knowledgeable in the [Administration](/usc/15/662.md?p=1)’s lending policies and procedures for such Development [Company](/usc/15/662.md?p=3) Program;
  - (3) has the ability to process, close, and service financing for plant and equipment under such Development [Company](/usc/15/662.md?p=3) Program;
  - (4) has a loss rate on the [company](/usc/15/662.md?p=3)’s debentures that is reasonable and acceptable to the [Administration](/usc/15/662.md?p=1);
  - (5) has a history of submitting to the [Administration](/usc/15/662.md?p=1) 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](/usc/15/662.md?p=3) Program.
- (c) **Expedited processing of loan applications—** The [Administration](/usc/15/662.md?p=1) shall develop an expedited procedure for processing a loan application or servicing action submitted by a qualified [State](/usc/15/662.md?p=4) or local development [company](/usc/15/662.md?p=3) that has been designated as an accredited lender in accordance with [subsection (b)](#b).
- (d) **Suspension or revocation of designation—**
  - (1) **In general—** The designation of a qualified [State](/usc/15/662.md?p=4) or local development [company](/usc/15/662.md?p=3) as an accredited lender may be suspended or revoked if the [Administration](/usc/15/662.md?p=1) determines that—
    - (A) the development [company](/usc/15/662.md?p=3) has not continued to meet the criteria for eligibility under [subsection (b)](#b); or
    - (B) the development [company](/usc/15/662.md?p=3) has failed to adhere to the [Administration](/usc/15/662.md?p=1)’s rules and regulations or is violating any other applicable provision of law.
  - (2) **Effect—** A suspension or revocation under [paragraph (1)](#d-1) shall not affect any outstanding debenture guarantee.
- (e) **Definition—** In this section, the term “qualified [State](/usc/15/662.md?p=4) or local development [company](/usc/15/662.md?p=3)” has the meaning given the term in [section 697(e) of this title](/usc/15/697.md?p=e).

## Source credit

(Pub. L. 85–699, title V, § 507, as added Pub. L. 103–403, title II, § 212(a), Oct. 22, 1994, 108 Stat. 4183; amended Pub. L. 116–260, div. N, title III, § 328(b), Dec. 27, 2020, 134 Stat. 2040.)

## Notes

### 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.”