Economic Development Loan Assistance Demonstration Program Act of 1993

Summary: Economic Development Loan Assistance Demonstration Program Act of 1993 - Directs the Secretary of Housing and Urban Development to establish a demonstration program to encourage economic development in five enterprise zones through grants to community development corporations for reducing interest rates on economic development loans.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Economic Development Loan Assistance 
Demonstration Program Act of 1993''.

SEC. 2. ESTABLISHMENT AND SCOPE OF DEMONSTRATION PROGRAM.

    (a) Establishment.--The Secretary of Housing and Urban Development 
shall carry out a program to demonstrate the effectiveness of 
encouraging economic development in enterprise zones by making grants 
to community development corporations for reducing interest rates on 
loans for economic development activities in the enterprise zones.
    (b) Selection of Enterprise Zones.--
            (1) Number.--The Secretary shall carry out the 
        demonstration program under this Act with respect to 5 
        enterprise zones, which the Secretary shall select not later 
        than the expiration of the 30-day period beginning on the date 
        the termination of the period referred to in section 
        701(a)(4)(B) of the Housing and Community Development Act of 
        1987.
            (2) Diversity.--Of the enterprise zones selected under this 
        subsection, not less than 2 shall be located in rural areas (as 
        described in section 701(a)(2)(B) of the Housing and Community 
        Development Act of 1987) and not less than 2 shall be located 
        in metropolitan statistical areas (as designated by the 
        Director of the Office of Management and Budget). In selecting 
        the enterprise zones, the Secretary shall provide for national 
        geographic diversity among enterprise zones participating in 
        the demonstration program.

SEC. 3. GRANTS FOR ECONOMIC DEVELOPMENT LOAN ASSISTANCE.

    (a) Authority.--Under the demonstration program under this Act, the 
Secretary may make grants to any community development corporation 
sponsored by a bank or thrift institution, by a nonbank economic 
development corporation, or by residents of an enterprise zone selected 
under section 2(b).
    (b) Use.--Each community development corporation receiving a grant 
under the demonstration program under this Act shall use the grant 
amounts to assist businesses and nonprofit organizations by reducing 
interest rates on loans for economic development activities carried out 
in an enterprise zone selected under section 2(b).
    (c) Other Requirements.--The Secretary shall require each community 
development corporation receiving a grant under the demonstration 
program under this Act to--
            (1) use the grant amounts to reduce the interest rate on a 
        loan described in subsection (b) by an amount not to exceed 60 
        percent of the market rate of interest on such loan; and
            (2) take any actions necessary to inform businesses and 
        nonprofit organizations of the availability of such loans, 
        including holding informational meetings, making public 
        announcements, and placing notices in newspapers and other 
        publications.

SEC. 4. MONITORING.

    The Secretary shall monitor the use of grants made under this Act 
and the costs of administering such grants.

SEC. 5. REPORTS AND STUDY.

    (a) Annual Report.--The Secretary shall submit to the Congress, not 
later than 1 year after the date that amounts to carry out this Act are 
first made available under appropriations Acts and for each year 
thereafter in which amounts are available to carry out the 
demonstration program, a report containing an evaluation of the 
effectiveness of grants made under the demonstration program.
    (b) Study and Report on Expanded Program.--
            (1) Study.--The Secretary shall conduct a study regarding 
        the effects and costs of carrying out a long-term and expanded 
        program of making grants for the purposes under this Act. The 
        study shall determine the need for such grants and the amount 
        of funds necessary to carry out an effective program of 
        national scope.
            (2) Report.--The Secretary shall submit to the Congress, 
        not later than September 31, 1996, a report regarding the 
        results of the study under paragraph (1) and any 
        recommendations for carrying out a program as described in 
        paragraph (1).

SEC. 6. DEFINITIONS.

    For the purposes of this Act:
            (1) Economic development activities.--The term ``economic 
        development activities'' means the construction and 
        rehabilitation of housing, downtown and neighborhood commercial 
        revitalization, industrial development and redevelopment, small 
        and minority business assistance, neighborhood marketing, 
        training, and technical assistance, research and planning for 
        nonprofit development groups, and other activities which create 
        permanent private sector jobs.
            (2) Enterprise zone.--The term ``enterprise zone'' means an 
        area that is designated as an enterprise zone under section 701 
        of the Housing and Community Development Act of 1987.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development.

SEC. 7. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated to carry out this Act in 
fiscal years 1994, 1995, and 1996 a total of $100,000,000.

SEC. 8. REGULATIONS.

    The Secretary may issue any regulations necessary to carry out this 
Act.