II 

116TH CONGRESS 

2D SESSION S. 5011 

To codify the Minority Business Development Agency of the Department 

of Commerce, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

DECEMBER 11, 2020 

Mrs. LOEFFLER (for herself, Mr. CRAPO, and Mr. RUBIO) introduced the 

following bill; which was read twice and referred to the Committee on Finance 

A BILL 

To codify the Minority Business Development Agency of the 

Department of Commerce, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Economic Empower5 ment for Underserved Communities Act’’. 

6 SEC. 2. PURPOSES. 

7 The purposes of this Act, and the amendments made 

8 by this Act, are to— 

9 (1) ensure that underserved communities have 

10 access to capital to promote economic revitalization; 


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1 (2) respond to the unprecedented loss of jobs 

2 and minority-owned businesses as a result of the 

3 COVID–19 pandemic; and 

4 (3) further encourage long-term investments in 

5 low-income and minority communities. 

6 SEC. 3. SUPPORTING THE CDFI FUND. 

7 (a) APPROPRIATIONS.—Of the amounts made avail8 able to the Secretary of the Treasury under section 4027 

9 of the CARES Act (15 U.S.C. 9061), $7,000,000,000 

10 shall be made available to the Fund to carry out this sec11 tion. 

12 (b) SET ASIDES.—Of the amounts made available 

13 under subsection (a), the following amounts shall be set 

14 aside: 

15 (1) Up to $1,000,000,000, to remain available 

16 until September 30, 2022, to support, prepare for, 

17 and respond to the economic impact of the 

18 coronavirus, provided that the Fund shall— 

19 (A) provide grants funded under this para20 graph using a formula that takes into account 

21 criteria such as certification status, financial 

22 and compliance performance, portfolio and bal23 ance sheet strength, a diversity of CDFI busi24 ness model types, and program capacity, of 

25 which not less than $30,000,000 may be for 


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1 grants to benefit Native American, Native Ha2 waiian, and Alaska Native communities; and 

3 (B) make funds available under this para4 graph not later than 60 days after the date of 

5 enactment of this Act. 

6 (2) Up to $4,000,000,000, to remain available 

7 until September 30, 2025, to provide grants to 

8 CDFIs— 

9 (A) to expand lending or investment activ10 ity in low- or moderate-income minority commu11 nities and to minorities that have significant 

12 unmet capital or financial services needs; and 

13 (B) using a formula that takes into ac14 count criteria such as certification status, finan15 cial and compliance performance, portfolio and 

16 balance sheet strength, a diversity of CDFI 

17 business model types, and program capacity, as 

18 well as experience making loans and invest19 ments to those areas and populations identified 

20 in this paragraph. 

21 (3) Up to $500,000,000, to remain available 

22 until expended, for technical assistance, technology, 

23 and training under sections 108(a)(1)(B) and 109, 

24 respectively, of the Community Development Bank25 ing and Financial Institutions Act of 1994 (12 


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1 U.S.C. 4707(a)(1)(B), 4708), with a preference for 

2 minority-led and minority-owned CDFIs that pri3 marily serve low- and moderate-income communities. 

4 (4) Up to $500,000,000, to remain available 

5 until expended, to provide grants to recipients that 

6 are minority-led and minority-owned CDFIs. 

7 (c) ADMINISTRATIVE EXPENSES.—Funds made 

8 available under this section may be used for administrative 

9 expenses, including administration of Fund programs and 

10 the New Markets Tax Credit Program under section 45D 

11 of the Internal Revenue Code of 1986. 

12 (d) EMERGENCY DESIGNATION.— 

13 (1) IN GENERAL.—The amounts provided under 

14 this section are designated as an emergency require15 ment pursuant to section 4(g) of the Statutory Pay16 As-You-Go Act of 2010 (2 U.S.C. 933(g)). 

17 (2) DESIGNATION IN SENATE.—In the Senate, 

18 this section is designated as an emergency require19 ment pursuant to section 4112(a) of H. Con. Res. 

20 71 (115th Congress), the concurrent resolution on 

21 the budget for fiscal year 2018. 

22 (e) DEFINITIONS.—In this section: 

23 (1) CDFI.—The term ‘‘CDFI’’ means a com24 munity development financial institution, as defined 

25 in section 103 of the Community Development 


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1 Banking and Financial Institutions Act of 1994 (12 

2 U.S.C. 4702). 

3 (2) FUND.—The term ‘‘Fund’’ means the Com4 munity Development Financial Institutions Fund es5 tablished under section 104(a) of the Community 

6 Development Banking and Financial Institutions Act 

7 of 1994 (12 U.S.C. 4703(a)). 

8 (3) MINORITY.—The term ‘‘minority’’ means 

9 any Black American, Native American, Hispanic 

10 American, or Asian American. 

11 SEC. 4. PERMANENT EXTENSION OF NEW MARKETS TAX 

12 CREDIT. 

13 (a) EXTENSION.— 

14 (1) IN GENERAL.—Subparagraph (H) of section 

15 45D(f)(1) of the Internal Revenue Code of 1986 is 

16 amended by inserting ‘‘and each calendar year there17 after’’ after ‘‘for 2020’’. 

18 (2) CONFORMING AMENDMENT.—Section 

19 45D(f)(3) of such Code is amended by striking the 

20 last sentence. 

21 (b) INFLATION ADJUSTMENT.—Subsection (f) of sec22 tion 45D of the Internal Revenue Code of 1986 is amend23 ed by adding at the end the following new paragraph: 

24 ‘‘(4) INFLATION ADJUSTMENT.— 


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1 ‘‘(A) IN GENERAL.—In the case of any cal2 endar year beginning after 2020, the dollar 

3 amount in paragraph (1)(G) shall be increased 

4 by an amount equal to— 

5 ‘‘(i) such dollar amount, multiplied by 

6 ‘‘(ii) the cost-of-living adjustment de7 termined under section 1(f)(3) for the cal8 endar year, determined by substituting 

9 ‘calendar year 2019’ for ‘calendar year 

10 2016’ in subparagraph (A)(ii) thereof. 

11 ‘‘(B) ROUNDING RULE.—Any increase 

12 under subparagraph (A) which is not a multiple 

13 of $1,000,000 shall be rounded to the nearest 

14 multiple of $1,000,000.’’. 

15 (c) ALTERNATIVE MINIMUM TAX RELIEF.—Subpara16 graph (B) of section 38(c)(4) of the Internal Revenue 

17 Code of 1986 is amended— 

18 (1) by redesignating clauses (vii) through (xii) 

19 as clauses (viii) through (xiii), respectively, and 

20 (2) by inserting after clause (vi) the following 

21 new clause: 

22 ‘‘(vii) the credit determined under sec23 tion 45D, but only with respect to credits 

24 determined with respect to qualified equity 


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1 investments (as defined in section 45D(b)) 

2 initially made after December 31, 2019,’’. 

3 (d) EFFECTIVE DATES.— 

4 (1) IN GENERAL.—Except as provided in para5 graph (2), the amendments made by this section 

6 shall apply to taxable years beginning after Decem7 ber 31, 2019. 

8 (2) ALTERNATIVE MINIMUM TAX RELIEF.—The 

9 amendments made by subsection (c) shall apply to 

10 credits determined with respect to qualified equity 

11 investments (as defined in section 45D(b) of the In12 ternal Revenue Code of 1986) initially made after 

13 December 31, 2020. 

14 SEC. 5. OPPORTUNITY ZONE PROGRAM REPRESENTATIVES. 

15 Section 4 of the Small Business Act (15 U.S.C. 633) 

16 is amended by adding at the end the following: 

17 ‘‘(i) OPPORTUNITY ZONE PROGRAM REPRESENTA18 TIVES.— 

19 ‘‘(1) IN GENERAL.—The Administrator, 

20 through each district office of the Administration, 

21 small business development center, women’s business 

22 center described in section 29, chapter of the Service 

23 Corps of Retired Executives authorized by section 

24 8(b)(1), and Veteran Business Outreach Center de25 scribed in section 32, shall train and educate field 


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1 representatives on investments in areas that have 

2 been designated as qualified opportunity zones under 

3 section 1400Z–1 of the Internal Revenue Code of 

4 1986. 

5 ‘‘(2) DUTIES.—A field representative trained 

6 under paragraph (1) shall— 

7 ‘‘(A) serve as a point of contact for ques8 tions and resources on the investments de9 scribed in paragraph (1) for the area served by 

10 the district office, small business development 

11 center, women’s business center, chapter of the 

12 Service Corps of Retired Executives, and Vet13 eran Business Outreach Center, as applicable; 

14 ‘‘(B) educate elected leaders within such 

15 area on those investments; and 

16 ‘‘(C) hold an annual seminar in each State 

17 to educate managers of qualified opportunity 

18 funds (as defined in section 1400Z–2(d) of the 

19 Internal Revenue Code of 1986), qualified op20 portunity zone businesses (as defined in such 

21 section), State and local government officials, 

22 accountants, lawyers, and other interested per23 sons on how to benefit from such investments. 

24 ‘‘(3) REPORT.— 


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1 ‘‘(A) IN GENERAL.—Not later than 1 year 

2 after the date of enactment of this subsection, 

3 and annually thereafter through 2026, the di4 rector of each regional office of the Administra5 tion shall submit to the Administrator a report 

6 on the success of the efforts of the field rep7 resentatives trained under paragraph (1), in8 cluding any problems faced by, and best prac9 tices of, the field representatives. 

10 ‘‘(B) SUBMISSION BY ADMINISTRATOR.— 

11 The Administrator shall submit each report re12 ceived under subparagraph (A) to the Com13 mittee on Small Business and Entrepreneurship 

14 of the Senate and the Committee on Small 

15 Business of the House of Representatives.’’. 

16 SEC. 6. SMALL BUSINESS INVESTMENT COMPANY PRO17 GRAM. 

18 (a) IN GENERAL.—Part A of title III of the Small 

19 Business Investment Act of 1958 (15 U.S.C. 681 et seq.) 

20 is amended— 

21 (1) in section 302(a) (15 U.S.C. 682(a))— 

22 (A) in paragraph (1)— 

23 (i) in subparagraph (A), by striking 

24 ‘‘or’’ at the end; 


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1 (ii) in subparagraph (B), by striking 

2 the period at the end and inserting ‘‘; or’’; 

3 and 

4 (iii) by adding at the end the fol5 lowing: 

6 ‘‘(C) $20,000,000, adjusted every 5 years 

7 for inflation, with respect to each licensee au8 thorized or seeking authority to sell bonds to 

9 Administration as a participating investment 

10 company under section 321.’’; and 

11 (2) by adding at the end the following: 

12 ‘‘SEC. 321. SMALL BUSINESS AND DOMESTIC PRODUCTION 

13 RECOVERY INVESTMENT FACILITY. 

14 ‘‘(a) DEFINITIONS.—In this section: 

15 ‘‘(1) COVERED POPULATION CENSUS TRACT.— 

16 The term ‘covered population census tract’ means a 

17 population census tract for which— 

18 ‘‘(A) in the case of a tract that is not lo19 cated within a metropolitan area, the median 

20 income does not exceed 80 percent of the state21 wide (or, with respect to a possession or terri22 tory of the United States, the possession- or 

23 territory-wide) median family income; or 

24 ‘‘(B) in the case of a tract that is located 

25 within a metropolitan area, the median family 


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1 income does not exceed 80 percent of the great2 er of the statewide (or, with respect to a posses3 sion or territory of the United States, the 

4 possession- or territory-wide) median family in5 come and the metropolitan area median family 

6 income. 

7 ‘‘(2) ELIGIBLE SMALL BUSINESS CONCERN.— 

8 The term ‘eligible small business concern’— 

9 ‘‘(A) means a small business concern 

10 that— 

11 ‘‘(i)(I) except as provided in sub12 clauses (II), (III), and (IV), had gross re13 ceipts during the first or second quarter in 

14 2020 that are not less than 50 percent less 

15 than the gross receipts of the entity during 

16 the same quarter in 2019; 

17 ‘‘(II) if the entity was not in business 

18 during the first or second quarter of 2019, 

19 but was in business during the third and 

20 fourth quarter of 2019, had gross receipts 

21 during the first or second quarter of 2020 

22 that are less than 50 percent of the 

23 amount of the gross receipts of the entity 

24 during the third or fourth quarter of 2019; 


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1 ‘‘(III) if the entity was not in business 

2 during the first, second, or third quarter of 

3 2019, but was in business during the 

4 fourth quarter of 2019, had gross receipts 

5 during the first or second quarter of 2020 

6 that are less than 50 percent of the 

7 amount of the gross receipts of the entity 

8 during the fourth quarter of 2019; or 

9 ‘‘(IV) if the entity was not in business 

10 during 2019, but was in operation on Feb11 ruary 15, 2020, had gross receipts during 

12 the second quarter of 2020 that are less 

13 than 50 percent of the amount of the gross 

14 receipts of the entity during the first quar15 ter of 2020; 

16 ‘‘(ii) is a manufacturing business that 

17 is assigned a North American Industry 

18 Classification System code beginning with 

19 31, 32, or 33 at the time at which the 

20 small business concern receives an invest21 ment from a participating investment com22 pany under the facility; or 

23 ‘‘(iii) is located in a small business 

24 low-income census tract; and 

25 ‘‘(B) does not include— 


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1 ‘‘(i) an issuer, the securities of which 

2 are listed on an exchange registered a na3 tional securities exchange under section 6 

4 of the Securities Exchange Act of 1934 

5 (15 U.S.C. 78f); 

6 ‘‘(ii) any entity that— 

7 ‘‘(I) is a type of business concern 

8 described in paragraph (b), (c), (d), 

9 (e), (f), (h), (l), (m), (p), (q), (r), or 

10 (s) of section 120.110 of title 13, 

11 Code of Federal Regulations, or any 

12 successor regulation; 

13 ‘‘(II) is a type of business con14 cern described in section 120.110(g) 

15 of title 13, Code of Federal Regula16 tions, or any successor regulation, ex17 cept as otherwise provided in the in18 terim final rule of the Administration 

19 entitled ‘Business Loan Program 

20 Temporary Changes; Paycheck Pro21 tection Program—Additional Eligi22 bility Criteria and Requirements for 

23 Certain Pledges of Loans’ (85 Fed. 

24 Reg. 21747 (April 20, 2020)); 


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1 ‘‘(III) is a type of business con2 cern described in section 120.110(i) of 

3 title 13, Code of Federal Regulations, 

4 or any successor regulation, except 

5 if— 

6 ‘‘(aa) the business concern 

7 is described in section 501(c)(6) 

8 of the Internal Revenue Code and 

9 that is exempt from taxation 

10 under section 501(a) of such 

11 Code (excluding professional foot12 ball leagues and organizations 

13 with the purpose of promoting or 

14 participating in a political cam15 paign or other activity); 

16 ‘‘(bb) the business concern 

17 does not receive more than 10 

18 percent of its receipts from lob19 bying activities; 

20 ‘‘(cc) the lobbying activities 

21 of the business concern do not 

22 comprise more than 10 percent 

23 of the total activities of the busi24 ness concern; and 


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1 ‘‘(dd) the business concern 

2 employs not more than 300 em3 ployees; 

4 ‘‘(IV) is a type of business con5 cern described in section 120.110(j) of 

6 title 13, Code of Federal Regulations, 

7 or any successor regulation, except as 

8 otherwise provided in the interim final 

9 rules of the Administration entitled 

10 ‘Business Loan Program Temporary 

11 Changes; Paycheck Protection Pro12 gram—Eligibility of Certain Electric 

13 Cooperatives’ (85 Fed. Reg. 29847 

14 (May 19, 2020)) and ‘Business Loan 

15 Program Temporary Changes; Pay16 check Protection Program—Eligibility 

17 of Certain Telephone Cooperatives’ 

18 (85 Fed. Reg. 35550 (June 11, 

19 2020)) or any other guidance or rule 

20 issued or that may be issued by the 

21 Administrator; 

22 ‘‘(V) is a type of business con23 cern described in section 120.110(n) 

24 of title 13, Code of Federal Regula25 tions, or any successor regulation, exVerDate Sep 11 2014 16:14 Dec 19, 2020 Jkt 019200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 E:\BILLS\S5011.IS S5011

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1 cept as otherwise provided in the in2 terim final rule of the Administration 

3 entitled ‘Business Loan Program 

4 Temporary Changes; Paycheck Pro5 tection Program—Additional Eligi6 bility Revisions to First Interim Final 

7 Rule’ (85 Fed. Reg. 38301 (June 26, 

8 2020)) or any other guidance or rule 

9 issued or that may be issued by the 

10 Administrator; 

11 ‘‘(VI) is a type of business con12 cern described in section 120.110(o) 

13 of title 13, Code of Federal Regula14 tions, or any successor regulation, ex15 cept as otherwise provided in any 

16 guidance or rule issued or that may 

17 be issued by the Administrator; 

18 ‘‘(VII) is an entity that is orga19 nized for research or for engaging in 

20 advocacy in areas such as public pol21 icy or political strategy or otherwise 

22 describes itself as a think tank in any 

23 public documents; 

24 ‘‘(VIII) is an entity that would 

25 be described in the provisions listed in 


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1 subclauses (I) through (VII) if the en2 tity were a business concern; or 

3 ‘‘(IX) is assigned, or was ap4 proved for a loan under section 

5 7(a)(36) of the Small Business Act 

6 (15 U.S.C. 636(a)(36)) with, a North 

7 American Industry Classification Sys8 tem code beginning with 52; 

9 ‘‘(iii) any business concern or entity 

10 primarily engaged in political or lobbying 

11 activities, including any entity that is orga12 nized for research or for engaging in advo13 cacy in areas such as public policy or polit14 ical strategy or otherwise describes itself as 

15 a think tank in any public documents; or 

16 ‘‘(iv) any business concern or entity— 

17 ‘‘(I) for which an entity created 

18 in or organized under the laws of the 

19 People’s Republic of China or the 

20 Special Administrative Region of 

21 Hong Kong, or that has significant 

22 operations in the People’s Republic of 

23 China or the Special Administrative 

24 Region of Hong Kong, owns or holds, 

25 directly or indirectly, not less than 20 


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1 percent of the economic interest of the 

2 business concern or entity, including 

3 as equity shares or a capital or profit 

4 interest in a limited liability company 

5 or partnership; or 

6 ‘‘(II) that retains, as a member 

7 of the board of directors of the busi8 ness concern, a person who is a resi9 dent of the People’s Republic of 

10 China. 

11 ‘‘(3) FACILITY.—The term ‘facility’ means the 

12 facility established under subsection (b). 

13 ‘‘(4) FUND.—The term ‘Fund’ means the fund 

14 established under subsection (h). 

15 ‘‘(5) PARTICIPATING INVESTMENT COMPANY.— 

16 The term ‘participating investment company’ means 

17 a small business investment company approved 

18 under subsection (d) to participate in the facility. 

19 ‘‘(6) PROTE ́GE ́ INVESTMENT COMPANY.—The 

20 term ‘prote ́ge ́ investment company’ means a small 

21 business investment company that— 

22 ‘‘(A) is majority managed by new, inexperi23 enced, or otherwise underrepresented fund man24 agers; and 


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1 ‘‘(B) elects and is selected by the Adminis2 tration to participate in the pathway-prote ́ge ́

3 program under subsection (g). 

4 ‘‘(7) SMALL BUSINESS CONCERN.—The term 

5 ‘small business concern’ has the meaning given the 

6 term in section 3(a) of the Small Business Act (15 

7 U.S.C. 632(a)). 

8 ‘‘(8) SMALL BUSINESS LOW-INCOME CENSUS

9 TRACT.—The term ‘small business low-income cen10 sus tract’— 

11 ‘‘(A) means— 

12 ‘‘(i) a covered population census tract 

13 for which the poverty rate is not less than 

14 20 percent; or 

15 ‘‘(ii) an area— 

16 ‘‘(I) that is not tracted as a pop17 ulation census tract; 

18 ‘‘(II) for which the poverty rate 

19 in the equivalent county division (as 

20 defined by the Bureau of the Census) 

21 is not less than 20 percent; and 

22 ‘‘(III) for which the median in23 come in the equivalent county division 

24 (as defined by the Bureau of the Cen25 sus) does not exceed 80 percent of the 


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1 statewide (or, with respect to a pos2 session or territory of the United 

3 States, the possession- or territory4 wide) median income; and 

5 ‘‘(B) does not include any area or popu6 lation census tract with a median family income 

7 that is not less than 120 percent of the median 

8 family income in the United States, according 

9 to the most recent American Communities Sur10 vey data from the Bureau of the Census. 

11 ‘‘(b) ESTABLISHMENT.— 

12 ‘‘(1) FACILITY.—The Administrator shall estab13 lish and carry out a facility to improve the recovery 

14 of eligible small business concerns from the COVID– 

15 19 pandemic, increase resiliency in the manufac16 turing supply chain of eligible small business con17 cerns, and increase the economic development of 

18 small business low-income census tracts by providing 

19 financial assistance to participating investment com20 panies that facilitate equity financings to eligible 

21 small business concerns in accordance with this sec22 tion. 

23 ‘‘(2) ADMINISTRATION OF FACILITY.—The fa24 cility shall be administered by the Administrator actVerDate Sep 11 2014 16:14 Dec 19, 2020 Jkt 019200 PO 00000 Frm 00020 Fmt 6652 Sfmt 6201 E:\BILLS\S5011.IS S5011

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1 ing through the Associate Administrator described in 

2 section 201. 

3 ‘‘(c) APPLICATIONS.— 

4 ‘‘(1) IN GENERAL.—Any small business invest5 ment company may submit to the Administrator an 

6 application to participate in the facility. 

7 ‘‘(2) REQUIREMENTS FOR APPLICATION.—An 

8 application to participate in the facility shall include 

9 the following: 

10 ‘‘(A) A business plan describing how the 

11 applicant intends to make successful equity in12 vestments in eligible small business concerns. 

13 ‘‘(B) Information regarding the relevant 

14 investment qualifications and backgrounds of 

15 the individuals responsible for the management 

16 of the applicant. 

17 ‘‘(C) A description of the extent to which 

18 the applicant meets the selection criteria under 

19 subsection (d)(2). 

20 ‘‘(3) EXCEPTIONS TO APPLICATION FOR NEW

21 LICENSEES.—Not later than 90 days after the date 

22 of enactment of this section, the Administrator shall 

23 reduce requirements for applicants applying to oper24 ate as a participating investment company under 

25 this section in order to encourage the participation 


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1 of new small business investment companies in the 

2 facility under this section, which may include the re3 quirements established under part 107 of title 13, 

4 Code of Federal Regulations, or any successor regu5 lations, relating to— 

6 ‘‘(A) the approval of initial management 

7 expenses; 

8 ‘‘(B) the management ownership diversity 

9 requirement; 

10 ‘‘(C) the disclosure of general compen11 satory practices and fee structures; or 

12 ‘‘(D) any other requirement that the Ad13 ministrator determines to be an obstacle to 

14 achieving the purposes described in this para15 graph. 

16 ‘‘(d) SELECTION OF PARTICIPATING INVESTMENT

17 COMPANIES.— 

18 ‘‘(1) DETERMINATION.— 

19 ‘‘(A) IN GENERAL.—Except as provided in 

20 paragraph (3), not later than 60 days after the 

21 date on which the Administrator receives an ap22 plication under subsection (c), the Adminis23 trator shall— 


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1 ‘‘(i) make a final determination to ap2 prove or disapprove such applicant to par3 ticipate in the facility; and 

4 ‘‘(ii) transmit the determination to the 

5 applicant in writing. 

6 ‘‘(B) COMMITMENT AMOUNT.—Except as 

7 provided in paragraph (3), at the time of ap8 proval of an applicant, the Administrator shall 

9 make a determination of the amount of the 

10 commitment that may be awarded to the appli11 cant under this section. 

12 ‘‘(2) SELECTION CRITERIA.—In making a de13 termination under paragraph (1), the Administrator 

14 shall consider— 

15 ‘‘(A) the probability that the investment 

16 strategy of the applicant will successfully repay 

17 any financial assistance provided by the Admin18 istration, including the probability of a return 

19 significantly in excess thereof; 

20 ‘‘(B) the probability that the investments 

21 made by the applicant will— 

22 ‘‘(i) provide capital to eligible small 

23 business concerns; or 

24 ‘‘(ii) create or preserve jobs in the 

25 United States; 


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1 ‘‘(C) the probability that the applicant will 

2 meet the objectives in the business plan of the 

3 applicant, including the financial goals, and, if 

4 applicable, the pathway-prote ́ge ́ program in ac5 cordance with subsection (g); and 

6 ‘‘(D) the probability that the applicant will 

7 assist eligible small business concerns in achiev8 ing profitability. 

9 ‘‘(3) APPROVAL OF PARTICIPATING INVEST10 MENT COMPANIES.— 

11 ‘‘(A) PROVISIONAL APPROVAL.— 

12 ‘‘(i) IN GENERAL.—Notwithstanding 

13 paragraph (1), with respect to an applica14 tion submitted by an applicant to operate 

15 as a participating investment company 

16 under this section, the Administrator may 

17 provide provisional approval for the appli18 cant in lieu of a final determination of ap19 proval and determination of the amount of 

20 the commitment under that paragraph. 

21 ‘‘(ii) PURPOSE.—The purpose of a 

22 provisional approval under clause (i) is 

23 to— 

24 ‘‘(I) encourage applications from 

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1 ment mandate from the committed 

2 private market capital of the invest3 ment company that does not conform 

4 to the requirements described in this 

5 section at the time of application; 

6 ‘‘(II) allow the applicant to more 

7 effectively raise capital commitments 

8 in the private markets by referencing 

9 the intent of the Administrator to 

10 award the applicant a commitment; 

11 and 

12 ‘‘(III) allow the applicant to more 

13 precisely request the desired amount 

14 of commitment pending the securing 

15 of capital from private market inves16 tors. 

17 ‘‘(iii) LIMIT ON PERIOD OF THE

18 TIME.—The period between a provisional 

19 approval under clause (i) and the final de20 termination of approval under paragraph 

21 (1) shall not exceed 12 months. 

22 ‘‘(e) COMMITMENTS AND SBIC BONDS.— 

23 ‘‘(1) IN GENERAL.—The Administrator may, 

24 out of amounts available in the Fund, purchase or 

25 commit to purchase from a participating investment 


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1 company 1 or more accruing bonds that include eq2 uity features as described in this subsection. 

3 ‘‘(2) BOND TERMS.—A bond purchased by the 

4 Administrator from a participating investment com5 pany under this subsection shall have the following 

6 terms and conditions: 

7 ‘‘(A) TERM AND INTEREST.— 

8 ‘‘(i) IN GENERAL.—The bond shall be 

9 issued for a term of not less than 15 years 

10 and shall bear interest at a rate deter11 mined by the Administrator of not more 

12 than 2 percent. 

13 ‘‘(ii) ACCRUAL OF INTEREST.—Inter14 est on the bond shall accrue and shall be 

15 payable in accordance with subparagraph 

16 (D). 

17 ‘‘(iii) PREPAYMENT.—The bond shall 

18 be prepayable without penalty after the 

19 end of the 1-year period beginning on the 

20 date on which the bond was purchased. 

21 ‘‘(B) PROFITS.— 

22 ‘‘(i) IN GENERAL.—The Administra23 tion shall be entitled to receive a share of 

24 the profits net of any profit sharing per25 formance compensation of the participating 


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1 investment company equal to the quotient 

2 obtained by dividing— 

3 ‘‘(I) one-third of the commitment 

4 that the participating investment com5 pany is approved for under subsection 

6 (d); by 

7 ‘‘(II) the commitment approved 

8 under subsection (d) plus the regu9 latory capital of the participating in10 vestment company at the time of ap11 proval under that subsection. 

12 ‘‘(ii) DETERMINATION OF PERCENT13 AGE.—The share to which the Administra14 tion is entitled under clause (i)— 

15 ‘‘(I) shall be determined at the 

16 time of approval under subsection (d); 

17 and 

18 ‘‘(II) without the approval of the 

19 Administration, shall not be revised, 

20 including to reflect subsequent dis21 tributions of profits, returns of cap22 ital, or repayments of bonds, or other23 wise. 

24 ‘‘(C) PROFIT SHARING PERFORMANCE

25 COMPENSATION.— 


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1 ‘‘(i) RECEIPT BY ADMINISTRATION.— 

2 The Administration shall receive a share of 

3 profits of not more than 2 percent, which 

4 shall be deposited into the Fund and be 

5 available to make commitments under this 

6 subsection. 

7 ‘‘(ii) RECEIPT BY MANAGERS.—The 

8 managers of the participating investment 

9 company may receive a maximum profit 

10 sharing performance compensation of 25 

11 percent minus the share of profits paid to 

12 the Administration under clause (i). 

13 ‘‘(D) PROHIBITION ON DISTRIBUTIONS.— 

14 No distributions on capital, including profit dis15 tributions, shall be made by the participating 

16 investment company to the investors or man17 agers of the participating investment company 

18 until the Administration has received payment 

19 of all accrued interest on the bond committed 

20 under this section. 

21 ‘‘(E) REPAYMENT OF PRINCIPAL.—Except 

22 as described in subparagraph (F), repayments 

23 of principal of the bond of a participating in24 vestment company shall be— 


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1 ‘‘(i) made at the same time as returns 

2 of private capital; and 

3 ‘‘(ii) in amounts equal to the pro rata 

4 share of the Administration of the total 

5 amount being repaid or returned at such 

6 time. 

7 ‘‘(F) LIQUIDATION OR DEFAULT.—Upon 

8 any liquidation event or default, as defined by 

9 the Administration, any unpaid principal or ac10 crued interest on the bond shall— 

11 ‘‘(i) have a priority over all equity of 

12 the participating investment company; and 

13 ‘‘(ii) be paid before any return of eq14 uity or any other distributions to the inves15 tors or managers of the participating in16 vestment company. 

17 ‘‘(3) AMOUNT OF COMMITMENTS AND PUR18 CHASES.— 

19 ‘‘(A) MAXIMUM AMOUNT.—The maximum 

20 amount of outstanding bonds and commitments 

21 to purchase bonds for any participating invest22 ment company under the facility shall be the 

23 lesser of— 


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1 ‘‘(i) twice the amount of the regu2 latory capital of the participating invest3 ment company; or 

4 ‘‘(ii) $200,000,000. 

5 ‘‘(4) COMMITMENT PROCESS.—Commitments by 

6 the Administration to purchase bonds under the fa7 cility shall remain available to be sold by a partici8 pating investment company until the end of the 

9 fourth fiscal year following the year in which the 

10 commitment is made, subject to review and approval 

11 by the Administration based on regulatory compli12 ance, financial status, change in management, devi13 ation from business plan, and such other limitations 

14 as may be determined by the Administration by reg15 ulation or otherwise. 

16 ‘‘(5) COMMITMENT CONDITIONS.— 

17 ‘‘(A) IN GENERAL.—As a condition of re18 ceiving a commitment under the facility, not 

19 less than 50 percent of amounts invested by the 

20 participating investment company shall be in21 vested in eligible small business concerns. 

22 ‘‘(B) EXAMINATIONS.—In addition to the 

23 matters set forth in section 310(c), the Admin24 istration shall examine each participating in25 vestment company in such detail so as to deterVerDate Sep 11 2014 16:14 Dec 19, 2020 Jkt 019200 PO 00000 Frm 00030 Fmt 6652 Sfmt 6201 E:\BILLS\S5011.IS S5011

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1 mine whether the participating investment com2 pany has complied with the requirements under 

3 this subsection. 

4 ‘‘(f) DISTRIBUTIONS AND FEES.— 

5 ‘‘(1) DISTRIBUTION REQUIREMENTS.— 

6 ‘‘(A) DISTRIBUTIONS.—As a condition of 

7 receiving a commitment under the facility, a 

8 participating investment company shall make 

9 all distributions to the Administrator in the 

10 same form and in a manner as are made to in11 vestors, or otherwise at a time and in a manner 

12 consistent with regulations or policies of the 

13 Administration. 

14 ‘‘(B) ALLOCATIONS.—A participating in15 vestment company shall make allocations of in16 come, gain, loss, deduction, and credit to the 

17 Administrator with respect to any outstanding 

18 bonds as if the Administrator were an investor. 

19 ‘‘(2) FEES.—The Administrator may not 

20 charge fees for participating investment companies 

21 other than examination fees that are consistent with 

22 the license of the participating investment company. 

23 ‘‘(3) BIFURCATION.—Losses on bonds issued by 

24 participating investment companies shall not be offVerDate Sep 11 2014 16:14 Dec 19, 2020 Jkt 019200 PO 00000 Frm 00031 Fmt 6652 Sfmt 6201 E:\BILLS\S5011.IS S5011

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1 set by fees or any other charges on debenture small 

2 business investment companies. 

3 ‘‘(g) PROTE ́GE ́ PROGRAM.—The Administrator shall 

4 establish a pathway-prote ́ge ́ program in which a prote ́ge ́

5 investment company may receive technical assistance and 

6 program support from a participating investment company 

7 on a voluntary basis and without penalty for non-partici8 pation. 

9 ‘‘(h) LOSS LIMITING FUND.— 

10 ‘‘(1) IN GENERAL.—There is established in the 

11 Treasury a fund for making commitments and pur12 chasing bonds with equity features under the facility 

13 and receiving capital returned by participating in14 vestment companies. 

15 ‘‘(2) USE OF FUNDS.—Amounts appropriated 

16 to the Fund or deposited in the Fund under para17 graph (3) shall be available to the Administrator, 

18 without further appropriation, for making commit19 ments and purchasing bonds under the facility and 

20 expenses and payments, excluding administrative ex21 penses, relating to the operations of the Adminis22 trator under the facility. 

23 ‘‘(3) DEPOSITING OF AMOUNTS.— 

24 ‘‘(A) IN GENERAL.—All amounts received 

25 by the Administrator from a participating inVerDate Sep 11 2014 16:14 Dec 19, 2020 Jkt 019200 PO 00000 Frm 00032 Fmt 6652 Sfmt 6201 E:\BILLS\S5011.IS S5011

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1 vestment company relating to the facility, in2 cluding any moneys, property, or assets derived 

3 by the Administrator from operations in con4 nection with the facility, shall be deposited in 

5 the Fund. 

6 ‘‘(B) PERIOD OF AVAILABILITY.—Amounts 

7 deposited under subparagraph (A) shall remain 

8 available until expended. 

9 ‘‘(i) APPLICATION OF OTHER SECTIONS.—To the ex10 tent not inconsistent with requirements under this section, 

11 the Administrator may apply sections 309, 311, 312, 313, 

12 and 314 to activities under this section and an officer, di13 rector, employee, agent, or other participant in a partici14 pating investment company shall be subject to the require15 ments under such sections. 

16 ‘‘(j) AUTHORIZATION OF APPROPRIATIONS.—There 

17 is authorized to be appropriated for the first fiscal year 

18 beginning after the date of enactment of this section 

19 $10,000,000,000 to carry out the facility. Amounts appro20 priated pursuant to this subsection shall remain available 

21 until the end of the second fiscal year beginning after the 

22 date of enactment of this section.’’. 

23 (b) APPROVAL OF BANK-OWNED, NON-LEVERAGED

24 APPLICANTS.—Section 301(c)(2) of the Small Business 


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1 Investment Act of 1958 (15 U.S.C. 681(c)(2)) is amend2 ed— 

3 (1) in subparagraph (B), in the matter pre4 ceding clause (i), by striking ‘‘Within’’ and inserting 

5 ‘‘Except as provided in subparagraph (C), within’’; 

6 and 

7 (2) by adding at the end the following: 

8 ‘‘(C) EXCEPTION FOR BANK-OWNED, NON9 LEVERAGED APPLICANTS.—Not later than 45 

10 days after the date on which the Administrator 

11 receives a completed application submitted by a 

12 bank-owned, non-leveraged applicant in accord13 ance with this subsection, and in accordance 

14 with such requirements as the Administrator 

15 may prescribe by regulation, the Administrator 

16 shall— 

17 ‘‘(i) review the application in its en18 tirety; and 

19 ‘‘(ii)(I) approve the application and 

20 issue a license for such operation to the 

21 applicant if the requirements of this sec22 tion are satisfied; or 

23 ‘‘(II) disapprove the application and 

24 notify the applicant in writing of the dis25 approval.’’. 


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1 (c) ELECTRONIC SUBMISSIONS.—Part A of title III 

2 of the Small Business Investment Act of 1958 (15 U.S.C. 

3 681 et seq.), as amended by subsection (a) of this section, 

4 is amended by adding at the end the following: 

5 ‘‘SEC. 322. ELECTRONIC SUBMISSIONS. 

6 ‘‘The Administration shall permit any document sub7 mitted under this title, or pursuant to a regulation car8 rying out this title, to be submitted electronically, includ9 ing by permitting an electronic signature for any signature 

10 that is required on such a document.’’. 

11 SEC. 7. MINORITY BUSINESS DEVELOPMENT AGENCY. 

12 (a) IN GENERAL.—There is within the Department 

13 of Commerce the Minority Business Development Agency 

14 (referred to in this section as the ‘‘Agency’’). 

15 (b) ASSISTANT SECRETARY.— 

16 (1) IN GENERAL.—The Agency shall be headed 

17 by an Assistant Secretary of Commerce for Minority 

18 Business Development, who shall be appointed by 

19 the President. 

20 (2) COMPENSATION.—The Assistant Secretary 

21 of Commerce for Minority Business Development 

22 shall be compensated at an annual rate of basic pay 

23 prescribed for level IV of the Executive Schedule 

24 under section 5315 of title 5, United States Code. 


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1 (c) DUTIES.—In addition to the functions, duties, 

2 and programs carried out by the Agency, as of the day 

3 before the date of enactment of this Act (including the 

4 Business Center program of the Agency), the Agency 

5 shall— 

6 (1) promote and administer programs in the 

7 public and private sectors that relate to the develop8 ment of minority business enterprises; and 

9 (2) carry out programs that increase access to 

10 capital and technology for, and provide assistance 

11 with respect to the management of, minority busi12 ness enterprises. 

13 (d) OFFICE OF AFRICAN AMERICAN AFFAIRS.— 

14 (1) ESTABLISHMENT.—There is established 

15 within the Agency the Office of African American 

16 Affairs. 

17 (2) DUTIES.—The Office of African American 

18 Affairs established under paragraph (1) shall carry 

19 out such functions, duties, and programs as the As20 sistant Secretary of Commerce for Minority Busi21 ness Development determines to be appropriate. 

22 (e) TECHNICAL AND CONFORMING AMENDMENT.— 

23 Section 5315 of title 5, United States Code, is amended, 

24 in the item relating to Assistant Secretaries of Commerce, 

25 by striking ‘‘(11)’’ and inserting ‘‘(12)’’. 


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1 SEC. 8. HRSA GRANT PROGRAM CONSIDERATION. 

2 In awarding grants for which faith-based entities are 

3 eligible, the Administrator of the Health Resources and 

4 Services Administration shall give special consideration to 

5 any application from an eligible entity that is located in 

6 a qualified opportunity zone (as defined in section 1400Z– 

7 1(a) of the Internal Revenue Code of 1986) or that serves 

8 a community located in such a qualified opportunity zone. 

9 SEC. 9. EXTENSION OF SUBSIDY FOR CERTAIN LOAN PAY10 MENTS. 

11 (a) IN GENERAL.—Section 1112(c)(1) of the CARES 

12 Act (15 U.S.C. 9011(c)(1)) is amended— 

13 (1) in subparagraph (A), by striking ‘‘6-month’’ 

14 and inserting ‘‘12-month’’; 

15 (2) in subparagraph (B), by striking ‘‘6-month’’ 

16 and inserting ‘‘12-month’’; and 

17 (3) in subparagraph (C)— 

18 (A) by striking ‘‘6 months’’ and inserting 

19 ‘‘12 months’’; and 

20 (B) by striking ‘‘6-month’’ and inserting 

21 ‘‘12-month’’. 

22 (b) EFFECTIVE DATE.—The amendments made by 

23 subsection (a) shall take effect as if included in the enact24 ment of section 1112 of the CARES Act (15 U.S.C. 

25 9011). 

Æ 


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