Small Business Lending and Economic Inequality Reduction Act of 2015

Small Business Lending and Economic Inequality Reduction Act of 2015

This bill amends the Small Business Act to establish a Community Advantage Program, under which the Small Business Administration (SBA) may guarantee loans up to $350,000 made by specified kinds of institutions, including:

• development companies eligible for the state and local development company program,
• nonprofit intermediaries,
• non-federally regulated entities certified as community development financial institutions, and
• any other SBA-approved nonprofit organizations.

At least 60% of these loans must be made to businesses in certain underserved markets, such as low- or moderate-income communities, HUBZones, empowerment zones, or enterprise communities.

The SBA must promulgate regulations for this Program, which shall be substantially similar to its Community Advantage Pilot Program, which shall terminate when these regulations take effect.

The Federal Home Loan Bank Act is amended to authorize Federal Home Loan Banks to make long-term secured advances to their members to provide funds to community development financial institutions.

At the time of origination or renewal of a loan or advance, a Bank must obtain and maintain a security interest in collateral eligible pursuant to any secured loan for any community development financial institution.