(b) Requirements The Administration may designate a qualified State or local development company as an accredited lender if such company
(1) has been an active participant in the Development Company Program authorized by sections
696,
697, and
697a of this title for not less than the preceding 12 months;
(2) has well-trained, qualified personnel who are knowledgeable in the Administrations lending policies and procedures for such Development Company Program;
(3) has the ability to process, close, and service financing for plant and equipment under such Development Company Program;
(4) has a loss rate on the companys debentures that is reasonable and acceptable to the Administration;
(5) has a history of submitting to the Administration 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 Program.
(d) Suspension or revocation of designation
(1) In general The designation of a qualified State or local development company as an accredited lender may be suspended or revoked if the Administration determines that
(A) the development company has not continued to meet the criteria for eligibility under subsection (b) of this section; or
(B) the development company has failed to adhere to the Administrations rules and regulations or is violating any other applicable provision of law.
(2) Effect
A suspension or revocation under paragraph (1) shall not affect any outstanding debenture guarantee.
