Local Development Business Loan Program Act of 2005

Local Development Business Loan Program Act of 2005 - Amends the Small Business Act and the Small Business Investment Act of 1958 to, among other things: (1) state that the development company loan programs authorized under title V of the Small Business Act shall be known as the Local Development Business Loan Program (program); (2) authorize appropriations to the Administrator of the Small Business Administration (SBA) for financings under the program; (3) require qualified state or local development companies which do not apply to the SBA for foreclosure and liquidation of defaulted small business loans guaranteed by the SBA to contract with a qualified third party to perform such foreclosures and liquidations; (4) provide maximum loan eligibility and loan refinancing capacity for small businesses, including small businesses in low-income areas; (5) allow development companies to be designated as certified development companies and to issue debentures guaranteed by the SBA; and (6) provide development company operational authority, funding restrictions, and ethical requirements.