Improvements to 504 loan closing procedure

Title V of the Small Business Investment Act of 1958 (15 U.S.C. 695 et seq.) is amended— (1) in section 502 (15 U.S.C. 696), as amended by this Act, by adding at the end the following: (b) Closing An accredited lender certified company may take any of the following actions to facilitate the closing of a loan made under subsection (a): (1) Reallocate the cost of the project with respect to which the loan is made in an amount that is not more than 10 percent of the overall cost of the project. (2) Correct any name that is applicable to the loan, including the name of any borrower, guarantor, eligible passive company described in paragraph (3)(A), and operating company described in paragraph (3)(B). (3) Add any of the following to receive proceeds of the loan: (A) An eligible passive company that complies with section 120.111 of title 13, Code of Federal Regulations, or any successor regulation. (B) If an eligible passive company is added under subparagraph (A), an operating company with respect to that eligible passive company. (4) Correct the address of any property with respect to which the loan is made. (5) Correct the name of any interim lender or third-party lender. (6) Change any third-party lender or interim lender if that lender is a financial institution that is regulated by the Federal Government or a State government. (7) Make a guarantor a co-borrower or a co-borrower a guarantor. (8) Add a guarantor that does not change ownership with respect to the loan. (9) Reduce the amount of standby debt before the closing as a result of regularly scheduled payments. (10) Reduce the cost of the project with respect to which the loan is made. (c) Accredited lender certified company defined In this section, the term accredited lender certified company means a certified development company that meets the requirements under section 507(b), including a certified development company that the Administration has designated as an accredited lender under such section 507(b).; and (2) by adding at the end the following: 511. Closing and oversight (a) SBA district counsels Beginning on the date that is 180 days after the date of enactment of this section, with respect to the program established under this title, district counsels of the Administration shall be subject to the same requirements, and shall have the same authority and responsibilities, as in effect with respect to that program on the day before the date of enactment of this section, except that— (1) the Office of Credit Risk Management of the Administration shall have the responsibility for all duties relating to conducting file reviews of loans made under this title; and (2) district counsels of the Administration shall not have any responsibility relating to the review of closing packages with respect to a loan made under this title. (b) Designated attorneys For the purposes of this title, the following provisions and requirements shall apply with respect to a designated attorney of a certified development company: (1) A designated attorney that meets the requirements determined under paragraph (2) shall be responsible for certifying documents relating to the closing of a loan described in this title. (2) The Administrator may determine any continuing education requirements that the designated attorney shall be required to satisfy in order to be permitted to close a loan made under this title. (3) If, as of the date of enactment of this section, a certified development company does not have a designated attorney, during the 180-day period beginning on that date of enactment, the certified development company may identify such an attorney, subject to the approval of the Administrator..