116TH CONGRESS 

2D SESSION H. R. 5322 

AN ACT 

To establish or modify requirements relating to minority 

depository institutions, community development financial 

institutions, and impact banks, 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, 
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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

2 (a) SHORT TITLE.—This Act may be cited as the 

3 ‘‘Ensuring Diversity in Community Banking Act’’. 

4 (b) TABLE OF CONTENTS.—The table of contents for 

5 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Sense of Congress on funding the loan-loss reserve fund for small dollar 

loans. 

Sec. 3. Definitions. 

Sec. 4. Inclusion of women’s banks in the definition of minority depository institution. 

Sec. 5. Establishment of impact bank designation. 

Sec. 6. Minority Depositories Advisory Committees. 

Sec. 7. Federal deposits in minority depository institutions. 

Sec. 8. Minority Bank Deposit Program. 

Sec. 9. Diversity report and best practices. 

Sec. 10. Investments in minority depository institutions and impact banks. 

Sec. 11. Report on covered mentor-protege programs. 

Sec. 12. Custodial deposit program for covered minority depository institutions 

and impact banks. 

Sec. 13. Streamlined community development financial institution applications 

and reporting. 

Sec. 14. Task force on lending to small business concerns. 

Sec. 15. Discretionary surplus funds. 

Sec. 16. Determination of Budgetary Effects. 

6 SEC. 2. SENSE OF CONGRESS ON FUNDING THE LOAN-LOSS 

7 RESERVE FUND FOR SMALL DOLLAR LOANS. 

8 The sense of Congress is the following: 

9 (1) The Community Development Financial In10 stitutions Fund (the ‘‘CDFI Fund’’) is an agency of 

11 the Department of the Treasury, and was estab12 lished by the Riegle Community Development and 

13 Regulatory Improvement Act of 1994. The mission 

14 of the CDFI Fund is ‘‘to expand economic oppor15 tunity for underserved people and communities by 

16 supporting the growth and capacity of a national 
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1 network of community development lenders, inves2 tors, and financial service providers’’. A community 

3 development financial institution (a ‘‘CDFI’’) is a 

4 specialized financial institution serving low-income 

5 communities and a Community Development Entity 

6 (a ‘‘CDE’’) is a domestic corporation or partnership 

7 that is an intermediary vehicle for the provision of 

8 loans, investments, or financial counseling in low-in9 come communities. The CDFI Fund certifies CDFIs 

10 and CDEs. Becoming a certified CDFI or CDE al11 lows organizations to participate in various CDFI 

12 Fund programs as follows: 

13 (A) The Bank Enterprise Award Program, 

14 which provides FDIC-insured depository institu15 tions awards for a demonstrated increase in 

16 lending and investments in distressed commu17 nities and CDFIs. 

18 (B) The CDFI Program, which provides 

19 Financial and Technical Assistance awards to 

20 CDFIs to reinvest in the CDFI, and to build 

21 the capacity of the CDFI, including financing 

22 product development and loan loss reserves. 

23 (C) The Native American CDFI Assistance 

24 Program, which provides CDFIs and spon25 soring entities Financial and Technical Assist-
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1 ance awards to increase lending and grow the 

2 number of CDFIs owned by Native Americans 

3 to help build capacity of such CDFIs. 

4 (D) The New Market Tax Credit Program, 

5 which provides tax credits for making equity in6 vestments in CDEs that stimulate capital in7 vestments in low-income communities. 

8 (E) The Capital Magnet Fund, which pro9 vides awards to CDFIs and nonprofit affordable 

10 housing organizations to finance affordable 

11 housing solutions and related economic develop12 ment activities. 

13 (F) The Bond Guarantee Program, a 

14 source of long-term, patient capital for CDFIs 

15 to expand lending and investment capacity for 

16 community and economic development purposes. 

17 (2) The Department of the Treasury is author18 ized to create multi-year grant programs designed to 

19 encourage low-to-moderate income individuals to es20 tablish accounts at federally insured banks, and to 

21 improve low-to-moderate income individuals’ access 

22 to such accounts on reasonable terms. 

23 (3) Under this authority, grants to participants 

24 in CDFI Fund programs may be used for loan-loss 

25 reserves and to establish small-dollar loan programs 
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1 by subsidizing related losses. These grants also allow 

2 for the providing recipients with the financial coun3 seling and education necessary to conduct trans4 actions and manage their accounts. These loans pro5 vide low-cost alternatives to payday loans and other 

6 nontraditional forms of financing that often impose 

7 excessive interest rates and fees on borrowers, and 

8 lead millions of Americans to fall into debt traps. 

9 Small-dollar loans can only be made pursuant to 

10 terms, conditions, and practices that are reasonable 

11 for the individual consumer obtaining the loan. 

12 (4) Program participation is restricted to eligi13 ble institutions, which are limited to organizations 

14 listed in section 501(c)(3) of the Internal Revenue 

15 Code and exempt from tax under 501(a) of such 

16 Code, federally insured depository institutions, com17 munity development financial institutions and State, 

18 local, or Tribal government entities. 

19 (5) Since its founding, the CDFI Fund has 

20 awarded over $3,300,000,000 to CDFIs and CDEs, 

21 allocated $54,000,000,000 in tax credits, and 

22 $1,510,000,000 in bond guarantees. According to 

23 the CDFI Fund, some programs attract as much as 

24 $10 in private capital for every $1 invested by the 

25 CDFI Fund. The Administration and the Congress 
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1 should prioritize appropriation of funds for the loan 

2 loss reserve fund and technical assistance programs 

3 administered by the Community Development Finan4 cial Institution Fund. 

5 SEC. 3. DEFINITIONS. 

6 In this Act: 

7 (1) COMMUNITY DEVELOPMENT FINANCIAL IN8 STITUTION.—The term ‘‘community development fi9 nancial institution’’ has the meaning given under 

10 section 103 of the Riegle Community Development 

11 and Regulatory Improvement Act of 1994 (12 

12 U.S.C. 4702). 

13 (2) MINORITY DEPOSITORY INSTITUTION.—The 

14 term ‘‘minority depository institution’’ has the 

15 meaning given under section 308 of the Financial 

16 Institutions Reform, Recovery, and Enforcement Act 

17 of 1989 (12 U.S.C. 1463 note), as amended by this 

18 Act. 

19 SEC. 4. INCLUSION OF WOMEN’S BANKS IN THE DEFINITION 

20 OF MINORITY DEPOSITORY INSTITUTION. 

21 Section 308(b)(1) of the Financial Institutions Re22 form, Recovery, and Enforcement Act of 1989 (12 U.S.C. 

23 1463 note) is amended— 

24 (1) by redesignating subparagraphs (A), (B), 

25 and (C) as clauses (i), (ii), and (iii), respectively; 
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1 (2) by striking ‘‘means any’’ and inserting the 

2 following: ‘‘means— 

3 ‘‘(A) any’’; and 

4 (3) in clause (iii) (as so redesignated), by strik5 ing the period at the end and inserting ‘‘; or’’; and 

6 (4) by inserting at the end the following new 

7 subparagraph: 

8 ‘‘(B) any bank described in clause (i), (ii), 

9 or (iii) of section 19(b)(1)(A) of the Federal 

10 Reserve Act— 

11 ‘‘(i) more than 50 percent of the out12 standing shares of which are held by 1 or 

13 more women; and 

14 ‘‘(ii) the majority of the directors on 

15 the board of directors of which are 

16 women.’’. 

17 SEC. 5. ESTABLISHMENT OF IMPACT BANK DESIGNATION. 

18 (a) IN GENERAL.—Each Federal banking agency 

19 shall establish a program under which a depository institu20 tion with total consolidated assets of less than 

21 $10,000,000,000 may elect to be designated as an impact 

22 bank if the total dollar value of the loans extended by such 

23 depository institution to low-income borrowers is greater 

24 than or equal to 50 percent of the assets of such bank. 
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1 (b) NOTIFICATION OF ELIGIBILITY.—Based on data 

2 obtained through examinations of depository institutions, 

3 the appropriate Federal banking agency shall notify a de4 pository institution if the institution is eligible to be des5 ignated as an impact bank. 

6 (c) APPLICATION.—Regardless of whether or not it 

7 has received a notice of eligibility under subsection (b), 

8 a depository institution may submit an application to the 

9 appropriate Federal banking agency— 

10 (1) requesting to be designated as an impact 

11 bank; and 

12 (2) demonstrating that the depository institu13 tion meets the applicable qualifications. 

14 (d) LIMITATION ON ADDITIONAL DATA REQUIRE15 MENTS.—The Federal banking agencies may only impose 

16 additional data collection requirements on a depository in17 stitution under this section if such data is— 

18 (1) necessary to process an application sub19 mitted by the depository institution to be designated 

20 an impact bank; or 

21 (2) with respect to a depository institution that 

22 is designated as an impact bank, necessary to ensure 

23 the depository institution’s ongoing qualifications to 

24 maintain such designation. 
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1 (e) REMOVAL OF DESIGNATION.—If the appropriate 

2 Federal banking agency determines that a depository in3 stitution designated as an impact bank no longer meets 

4 the criteria for such designation, the appropriate Federal 

5 banking agency shall rescind the designation and notify 

6 the depository institution of such rescission. 

7 (f) RECONSIDERATION OF DESIGNATION; AP8 PEALS.—Under such procedures as the Federal banking 

9 agencies may establish, a depository institution may— 

10 (1) submit to the appropriate Federal banking 

11 agency a request to reconsider a determination that 

12 such depository institution no longer meets the cri13 teria for the designation; or 

14 (2) file an appeal of such determination. 

15 (g) RULEMAKING.—Not later than 1 year after the 

16 date of the enactment of this Act, the Federal banking 

17 agencies shall jointly issue rules to carry out the require18 ments of this section, including by providing a definition 

19 of a low-income borrower. 

20 (h) REPORTS.—Each Federal banking agency shall 

21 submit an annual report to the Congress containing a de22 scription of actions taken to carry out this section. 

23 (i) FEDERAL DEPOSIT INSURANCE ACT DEFINI24 TIONS.—In this section, the terms ‘‘depository institu25 tion’’, ‘‘appropriate Federal banking agency’’, and ‘‘Fed-
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1 eral banking agency’’ have the meanings given such terms, 

2 respectively, in section 3 of the Federal Deposit Insurance 

3 Act (12 U.S.C. 1813). 

4 SEC. 6. MINORITY DEPOSITORIES ADVISORY COMMITTEES. 

5 (a) ESTABLISHMENT.—Each covered regulator shall 

6 establish an advisory committee to be called the ‘‘Minority 

7 Depositories Advisory Committee’’. 

8 (b) DUTIES.—Each Minority Depositories Advisory 

9 Committee shall provide advice to the respective covered 

10 regulator on meeting the goals established by section 308 

11 of the Financial Institutions Reform, Recovery, and En12 forcement Act of 1989 (12 U.S.C. 1463 note) to preserve 

13 the present number of covered minority institutions, pre14 serve the minority character of minority-owned institu15 tions in cases involving mergers or acquisitions, provide 

16 technical assistance, and encourage the creation of new 

17 covered minority institutions. The scope of the work of 

18 each such Minority Depositories Advisory Committee shall 

19 include an assessment of the current condition of covered 

20 minority institutions, what regulatory changes or other 

21 steps the respective agencies may be able to take to fulfill 

22 the requirements of such section 308, and other issues of 

23 concern to covered minority institutions. 

24 (c) MEMBERSHIP.— 
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1 (1) IN GENERAL.—Each Minority Depositories 

2 Advisory Committee shall consist of no more than 

3 10 members, who— 

4 (A) shall serve for one two-year term; 

5 (B) shall serve as a representative of a de6 pository institution or an insured credit union 

7 with respect to which the respective covered 

8 regulator is the covered regulator of such de9 pository institution or insured credit union; and 

10 (C) shall not receive pay by reason of their 

11 service on the advisory committee, but may re12 ceive travel or transportation expenses in ac13 cordance with section 5703 of title 5, United 

14 States Code. 

15 (2) DIVERSITY.—To the extent practicable, 

16 each covered regulator shall ensure that the mem17 bers of the Minority Depositories Advisory Com18 mittee of such agency reflect the diversity of covered 

19 minority institutions. 

20 (d) MEETINGS.— 

21 (1) IN GENERAL.—Each Minority Depositories 

22 Advisory Committee shall meet not less frequently 

23 than twice each year. 

24 (2) NOTICE AND INVITATIONS.—Each Minority 

25 Depositories Advisory Committee shall— 
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1 (A) notify the Committee on Financial 

2 Services of the House of Representatives and 

3 the Committee on Banking, Housing, and 

4 Urban Affairs of the Senate in advance of each 

5 meeting of the Minority Depositories Advisory 

6 Committee; and 

7 (B) invite the attendance at each meeting 

8 of the Minority Depositories Advisory Com9 mittee of— 

10 (i) one member of the majority party 

11 and one member of the minority party of 

12 the Committee on Financial Services of the 

13 House of Representatives and the Com14 mittee on Banking, Housing, and Urban 

15 Affairs of the Senate; and 

16 (ii) one member of the majority party 

17 and one member of the minority party of 

18 any relevant subcommittees of such com19 mittees. 

20 (e) NO TERMINATION OF ADVISORY COMMITTEES.— 

21 The termination requirements under section 14 of the 

22 Federal Advisory Committee Act (5 U.S.C. app.) shall not 

23 apply to a Minority Depositories Advisory Committee es24 tablished pursuant to this section. 

25 (f) DEFINITIONS.—In this section: 
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1 (1) COVERED REGULATOR.—The term ‘‘covered 

2 regulator’’ means the Comptroller of the Currency, 

3 the Board of Governors of the Federal Reserve Sys4 tem, the Federal Deposit Insurance Corporation, 

5 and the National Credit Union Administration. 

6 (2) COVERED MINORITY INSTITUTION.—The 

7 term ‘‘covered minority institution’’ means a minor8 ity depository institution (as defined in section 

9 308(b) of the Financial Institutions Reform, Recov10 ery, and Enforcement Act of 1989 (12 U.S.C. 1463 

11 note)). 

12 (3) DEPOSITORY INSTITUTION.—The term ‘‘de13 pository institution’’ has the meaning given under 

14 section 3 of the Federal Deposit Insurance Act (12 

15 U.S.C. 1813). 

16 (4) INSURED CREDIT UNION.—The term ‘‘in17 sured credit union’’ has the meaning given in section 

18 101 of the Federal Credit Union Act (12 U.S.C. 

19 1752). 

20 (g) TECHNICAL AMENDMENT.—Section 308(b) of the 

21 Financial Institutions Reform, Recovery, and Enforce22 ment Act of 1989 (12 U.S.C. 1463 note) is amended by 

23 adding at the end the following new paragraph: 

24 ‘‘(3) DEPOSITORY INSTITUTION.—The term ‘de25 pository institution’ means an ‘insured depository in-
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1 stitution’ (as defined in section 3 of the Federal De2 posit Insurance Act (12 U.S.C. 1813)) and an in3 sured credit union (as defined in section 101 of the 

4 Federal Credit Union Act (12 U.S.C. 1752)).’’. 

5 SEC. 7. FEDERAL DEPOSITS IN MINORITY DEPOSITORY IN6 STITUTIONS. 

7 (a) IN GENERAL.—Section 308 of the Financial In8 stitutions Reform, Recovery, and Enforcement Act of 

9 1989 (12 U.S.C. 1463 note) is amended— 

10 (1) by adding at the end the following new sub11 section: 

12 ‘‘(d) FEDERAL DEPOSITS.—The Secretary of the 

13 Treasury shall ensure that deposits made by Federal agen14 cies in minority depository institutions and impact banks 

15 are collateralized or insured, as determined by the Sec16 retary. Such deposits shall include reciprocal deposits as 

17 defined in section 337.6(e)(2)(v) of title 12, Code of Fed18 eral Regulations (as in effect on March 6, 2019).’’; and 

19 (2) in subsection (b), as amended by section 

20 6(g), by adding at the end the following new para21 graph: 

22 ‘‘(4) IMPACT BANK.—The term ‘impact bank’ 

23 means a depository institution designated by the ap24 propriate Federal banking agency pursuant to sec-
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1 tion 5 of the Ensuring Diversity in Community 

2 Banking Act.’’. 

3 (b) TECHNICAL AMENDMENTS.—Section 308 of the 

4 Financial Institutions Reform, Recovery, and Enforce5 ment Act of 1989 (12 U.S.C. 1463 note) is amended— 

6 (1) in the matter preceding paragraph (1), by 

7 striking ‘‘section—’’ and inserting ‘‘section:’’; and 

8 (2) in the paragraph heading for paragraph (1), 

9 by striking ‘‘FINANCIAL’’ and inserting ‘‘DEPOSI10 TORY’’. 

11 SEC. 8. MINORITY BANK DEPOSIT PROGRAM. 

12 (a) IN GENERAL.—Section 1204 of the Financial In13 stitutions Reform, Recovery, and Enforcement Act of 

14 1989 (12 U.S.C. 1811 note) is amended to read as follows: 

15 ‘‘SEC. 1204. EXPANSION OF USE OF MINORITY DEPOSITORY 

16 INSTITUTIONS. 

17 ‘‘(a) MINORITY BANK DEPOSIT PROGRAM.— 

18 ‘‘(1) ESTABLISHMENT.—There is established a 

19 program to be known as the ‘Minority Bank Deposit 

20 Program’ to expand the use of minority depository 

21 institutions. 

22 ‘‘(2) ADMINISTRATION.—The Secretary of the 

23 Treasury, acting through the Fiscal Service, shall— 

24 ‘‘(A) on application by a depository institu25 tion or credit union, certify whether such depos-
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1 itory institution or credit union is a minority 

2 depository institution; 

3 ‘‘(B) maintain and publish a list of all de4 pository institutions and credit unions that have 

5 been certified pursuant to subparagraph (A); 

6 and 

7 ‘‘(C) periodically distribute the list de8 scribed in subparagraph (B) to— 

9 ‘‘(i) all Federal departments and 

10 agencies; 

11 ‘‘(ii) interested State and local govern12 ments; and 

13 ‘‘(iii) interested private sector compa14 nies. 

15 ‘‘(3) INCLUSION OF CERTAIN ENTITIES ON

16 LIST.—A depository institution or credit union that, 

17 on the date of the enactment of this section, has a 

18 current certification from the Secretary of the 

19 Treasury stating that such depository institution or 

20 credit union is a minority depository institution shall 

21 be included on the list described under paragraph 

22 (2)(B). 

23 ‘‘(b) EXPANDED USE AMONG FEDERAL DEPART24 MENTS AND AGENCIES.— 
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1 ‘‘(1) IN GENERAL.—Not later than 1 year after 

2 the establishment of the program described in sub3 section (a), the head of each Federal department or 

4 agency shall develop and implement standards and 

5 procedures to prioritize, to the maximum extent pos6 sible as permitted by law and consistent with prin7 ciples of sound financial management, the use of mi8 nority depository institutions to hold the deposits of 

9 each such department or agency. 

10 ‘‘(2) REPORT TO CONGRESS.—Not later than 2 

11 years after the establishment of the program de12 scribed in subsection (a), and annually thereafter, 

13 the head of each Federal department or agency shall 

14 submit to Congress a report on the actions taken to 

15 increase the use of minority depository institutions 

16 to hold the deposits of each such department or 

17 agency. 

18 ‘‘(c) DEFINITIONS.—For purposes of this section: 

19 ‘‘(1) CREDIT UNION.—The term ‘credit union’ 

20 has the meaning given the term ‘insured credit 

21 union’ in section 101 of the Federal Credit Union 

22 Act (12 U.S.C. 1752). 

23 ‘‘(2) DEPOSITORY INSTITUTION.—The term ‘de24 pository institution’ has the meaning given in section 
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1 3 of the Federal Deposit Insurance Act (12 U.S.C. 

2 1813). 

3 ‘‘(3) MINORITY DEPOSITORY INSTITUTION.— 

4 The term ‘minority depository institution’ has the 

5 meaning given that term under section 308 of this 

6 Act.’’. 

7 (b) CONFORMING AMENDMENTS.—The following pro8 visions are amended by striking ‘‘1204(c)(3)’’ and insert9 ing ‘‘1204(c)’’: 

10 (1) Section 808(b)(3) of the Community Rein11 vestment Act of 1977 (12 U.S.C. 2907(b)(3)). 

12 (2) Section 40(g)(1)(B) of the Federal Deposit 

13 Insurance Act (12 U.S.C. 1831q(g)(1)(B)). 

14 (3) Section 704B(h)(4) of the Equal Credit Op15 portunity Act (15 U.S.C. 1691c–2(h)(4)). 

16 SEC. 9. DIVERSITY REPORT AND BEST PRACTICES. 

17 (a) ANNUAL REPORT.—Each covered regulator shall 

18 submit to Congress an annual report on diversity includ19 ing the following: 

20 (1) Data, based on voluntary self-identification, 

21 on the racial, ethnic, and gender composition of the 

22 examiners of each covered regulator, disaggregated 

23 by length of time served as an examiner. 
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1 (2) The status of any examiners of covered reg2 ulators, based on voluntary self-identification, as a 

3 veteran. 

4 (3) Whether any covered regulator, as of the 

5 date on which the report required under this section 

6 is submitted, has adopted a policy, plan, or strategy 

7 to promote racial, ethnic, and gender diversity 

8 among examiners of the covered regulator. 

9 (4) Whether any special training is developed 

10 and provided for examiners related specifically to 

11 working with depository institutions and credit 

12 unions that serve communities that are predomi13 nantly minorities, low income, or rural, and the key 

14 focus of such training. 

15 (b) BEST PRACTICES.—Each Office of Minority and 

16 Women Inclusion of a covered regulator shall develop, pro17 vide to the head of the covered regulator, and make pub18 licly available best practices— 

19 (1) for increasing the diversity of candidates 

20 applying for examiner positions, including through 

21 outreach efforts to recruit diverse candidate to apply 

22 for entry-level examiner positions; and 

23 (2) for retaining and providing fair consider24 ation for promotions within the examiner staff for 

25 purposes of achieving diversity among examiners. 
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1 (c) COVERED REGULATOR DEFINED.—In this sec2 tion, the term ‘‘covered regulator’’ means the Comptroller 

3 of the Currency, the Board of Governors of the Federal 

4 Reserve System, the Federal Deposit Insurance Corpora5 tion, and the National Credit Union Administration. 

6 SEC. 10. INVESTMENTS IN MINORITY DEPOSITORY INSTITU7 TIONS AND IMPACT BANKS. 

8 (a) CONTROL FOR CERTAIN INSTITUTIONS.—Section 

9 7(j)(8)(B) of the Federal Deposit Insurance Act (12 

10 U.S.C. 1817(j)(8)(B)) is amended to read as follows: 

11 ‘‘(B) ‘control’ means the power, directly or indi12 rectly— 

13 ‘‘(i) to direct the management or policies 

14 of an insured depository institution; or 

15 ‘‘(ii)(I) with respect to an insured deposi16 tory institution, of a person to vote 25 per cen17 tum or more of any class of voting securities of 

18 such institution; or 

19 ‘‘(II) with respect to an insured depository 

20 institution that is an impact bank (as des21 ignated pursuant to section 5 of the Ensuring 

22 Diversity in Community Banking Act) or a mi23 nority depository institution (as defined in sec24 tion 308(b) of the Financial Institutions Re25 form, Recovery, and Enforcement Act of 1989), 
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1 of an individual to vote 30 percent or more of 

2 any class of voting securities of such an impact 

3 bank or a minority depository institution.’’. 

4 (b) RULEMAKING.—The Federal banking agencies 

5 (as defined in section 3 of the Federal Deposit Insurance 

6 Act (12 U.S.C. 1813)) shall jointly issue rules for de novo 

7 minority depository institutions and de novo impact banks 

8 (as designated pursuant to section 5) to allow 3 years to 

9 meet the capital requirements otherwise applicable to mi10 nority depository institutions and impact banks. 

11 (c) REPORT.—Not later than 1 year after the date 

12 of the enactment of this Act, the Federal banking agencies 

13 shall jointly submit to Congress a report on— 

14 (1) the principal causes for the low number of 

15 de novo minority depository institutions during the 

16 10-year period preceding the date of the report; 

17 (2) the main challenges to the creation of de 

18 novo minority depository institutions and de novo 

19 impact banks; and 

20 (3) regulatory and legislative considerations to 

21 promote the establishment of de novo minority de22 pository institutions and de novo impact banks. 
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1 SEC. 11. REPORT ON COVERED MENTOR-PROTEGE PRO2 GRAMS. 

3 (a) REPORT.—Not later than 6 months after the date 

4 of the enactment of this Act and annually thereafter, the 

5 Secretary of the Treasury shall submit to Congress a re6 port on participants in a covered mentor-protege program, 

7 including— 

8 (1) an analysis of outcomes of such program; 

9 (2) the number of minority depository institu10 tions that are eligible to participate in such program 

11 but do not have large financial institution mentors; 

12 and 

13 (3) recommendations for how to match such mi14 nority depository institutions with large financial in15 stitution mentors. 

16 (b) DEFINITIONS.—In this section: 

17 (1) COVERED MENTOR-PROTEGE PROGRAM.— 

18 The term ‘‘covered mentor-protege program’’ means 

19 a mentor-protege program established by the Sec20 retary of the Treasury pursuant to section 45 of the 

21 Small Business Act (15 U.S.C. 657r). 

22 (2) LARGE FINANCIAL INSTITUTION.—The term 

23 ‘‘large financial institution’’ means any entity— 

24 (A) regulated by the Comptroller of the 

25 Currency, the Board of Governors of the Fed26 eral Reserve System, the Federal Deposit In-
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1 surance Corporation, or the National Credit 

2 Union Administration; and 

3 (B) that has total consolidated assets 

4 greater than or equal to $50,000,000,000. 

5 SEC. 12. CUSTODIAL DEPOSIT PROGRAM FOR COVERED MI6 NORITY DEPOSITORY INSTITUTIONS AND IM7 PACT BANKS. 

8 (a) IN GENERAL.—Not later than one year after the 

9 date of the enactment of this Act, the Secretary of the 

10 Treasury shall issue rules establishing a custodial deposit 

11 program under which a covered bank may receive deposits 

12 from a qualifying account. 

13 (b) REQUIREMENTS.—In issuing rules under sub14 section (a), the Secretary of the Treasury shall— 

15 (1) consult with the Federal banking agencies; 

16 (2) ensure each covered bank participating in 

17 the program established under this section— 

18 (A) has appropriate policies relating to 

19 management of assets, including measures to 

20 ensure the safety and soundness of each such 

21 covered bank; and 

22 (B) is compliant with applicable law; and 

23 (3) ensure, to the extent practicable that the 

24 rules do not conflict with goals described in section 

25 308(a) of the Financial Institutions Reform, Recov-
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1 ery, and Enforcement Act of 1989 (12 U.S.C. 1463 

2 note). 

3 (c) LIMITATIONS.— 

4 (1) DEPOSITS.—With respect to the funds of an 

5 individual qualifying account, an entity may not de6 posit an amount greater than the insured amount in 

7 a single covered bank. 

8 (2) TOTAL DEPOSITS.—The total amount of 

9 funds deposited in a covered bank under the custo10 dial deposit program described under this section 

11 may not exceed the lesser of— 

12 (A) 10 percent of the average amount of 

13 deposits held by such covered bank in the pre14 vious quarter; or 

15 (B) $100,000,000 (as adjusted for infla16 tion). 

17 (d) REPORT.—Each quarter, the Secretary of the 

18 Treasury shall submit to Congress a report on the imple19 mentation of the program established under this section 

20 including information identifying participating covered 

21 banks and the total amount of deposits received by covered 

22 banks under the program. 

23 (e) DEFINITIONS.—In this section: 

24 (1) COVERED BANK.—The term ‘‘covered bank’’ 

25 means— 
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1 (A) a minority depository institution that 

2 is well capitalized, as defined by the appropriate 

3 Federal banking agency; or 

4 (B) a depository institution designated 

5 pursuant to section 5 of the Ensuring Diversity 

6 in Community Banking Act that is well capital7 ized, as defined by the appropriate Federal 

8 banking agency. 

9 (2) INSURED AMOUNT.—The term ‘‘insured 

10 amount’’ means the amount that is the greater of— 

11 (A) the standard maximum deposit insur12 ance amount (as defined in section 11(a)(1)(E) 

13 of the Federal Deposit Insurance Act (12 

14 U.S.C. 1821(a)(1)(E))); or 

15 (B) such higher amount negotiated be16 tween the Secretary of the Treasury and the 

17 Federal Deposit Insurance Corporation under 

18 which the Corporation will insure all deposits of 

19 such higher amount. 

20 (3) FEDERAL BANKING AGENCIES.—The terms 

21 ‘‘appropriate Federal banking agency’’ and ‘‘Federal 

22 banking agencies’’ have the meaning given those 

23 terms, respectively, under section 3 of the Federal 

24 Deposit Insurance Act. 
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1 (4) QUALIFYING ACCOUNT.—The term ‘‘quali2 fying account’’ means any account established in the 

3 Department of the Treasury that— 

4 (A) is controlled by the Secretary; and 

5 (B) is expected to maintain a balance 

6 greater than $200,000,000 for the following 24- 

7 month period. 

8 SEC. 13. STREAMLINED COMMUNITY DEVELOPMENT FI9 NANCIAL INSTITUTION APPLICATIONS AND 

10 REPORTING. 

11 (a) APPLICATION PROCESSES.—Not later than 12 

12 months after the date of the enactment of this Act and 

13 with respect to any person having assets under 

14 $3,000,000,000 that submits an application for deposit in15 surance with the Federal Deposit Insurance Corporation 

16 that could also become a community development financial 

17 institution, the Federal Deposit Insurance Corporation, in 

18 consultation with the Administrator of the Community 

19 Development Financial Institutions Fund, shall— 

20 (1) develop systems and procedures to record 

21 necessary information to allow the Administrator to 

22 conduct preliminary analysis for such person to also 

23 become a community development financial institu24 tion; and 
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1 (2) develop procedures to streamline the appli2 cation and annual certification processes and to re3 duce costs for such person to become, and maintain 

4 certification as, a community development financial 

5 institution. 

6 (b) IMPLEMENTATION REPORT.—Not later than 18 

7 months after the date of the enactment of this Act, the 

8 Federal Deposit Insurance Corporation shall submit to 

9 Congress a report describing the systems and procedures 

10 required under subsection (a). 

11 (c) ANNUAL REPORT.— 

12 (1) IN GENERAL.—Section 17(a)(1) of the Fed13 eral Deposit Insurance Act (12 U.S.C. 1827(a)(1)) 

14 is amended— 

15 (A) in subparagraph (E), by striking 

16 ‘‘and’’ at the end; 

17 (B) by redesignating subparagraph (F) as 

18 subparagraph (G); 

19 (C) by inserting after subparagraph (E) 

20 the following new subparagraph: 

21 ‘‘(F) applicants for deposit insurance that 

22 could also become a community development fi23 nancial institution (as defined in section 103 of 

24 the Riegle Community Development and Regu25 latory Improvement Act of 1994), a minority 
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1 depository institution (as defined in section 308 

2 of the Financial Institutions Reform, Recovery, 

3 and Enforcement Act of 1989), or an impact 

4 bank (as designated pursuant to section 5 of 

5 the Ensuring Diversity in Community Banking 

6 Act); and’’. 

7 (2) APPLICATION.—The amendment made by 

8 this subsection shall apply with respect to the first 

9 report to be submitted after the date that is 2 years 

10 after the date of the enactment of this Act. 

11 SEC. 14. TASK FORCE ON LENDING TO SMALL BUSINESS 

12 CONCERNS. 

13 (a) IN GENERAL.—Not later than 6 months after the 

14 date of the enactment of this Act, the Administrator of 

15 the Small Business Administration shall establish a task 

16 force to examine methods for improving relationships be17 tween the Small Business Administration and community 

18 development financial institutions, minority depository in19 stitutions, and Impact Banks to increase the volume of 

20 loans provided by such institutions to small business con21 cerns (as defined under section 3 of the Small Business 

22 Act (15 U.S.C. 632)). 

23 (b) REPORT TO CONGRESS.—Not later than 18 

24 months after the establishment of the task force described 

25 in subsection (a), the Administrator of the Small Business 
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1 Administration shall submit to Congress a report on the 

2 findings of such task force. 

3 SEC. 15. DISCRETIONARY SURPLUS FUNDS. 

4 (a) IN GENERAL.—Subparagraph (A) of section 

5 7(a)(3) of the Federal Reserve Act (12 U.S.C. 

6 289(a)(3)(A)) is amended by reducing the dollar figure de7 scribed in such subparagraph by $1,400,000,000. 

8 (b) EFFECTIVE DATE.—The amendment made by 

9 subsection (a) shall take effect on September 30, 2030. 

10 SEC. 16. DETERMINATION OF BUDGETARY EFFECTS. 

11 The budgetary effects of this Act, for the purpose of 

12 complying with the Statutory Pay-As-You-Go Act of 2010, 

13 shall be determined by reference to the latest statement 

14 titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this 

15 Act, submitted for printing in the Congressional Record 

16 by the Chairman of the House Budget Committee, pro17 vided that such statement has been submitted prior to the 

18 vote on passage. 

Passed the House of Representatives September 21, 

2020. 

Attest: 

Clerk. 
116TH CONGRESS 

2D SESSION H. R. 5322 

AN ACT 

To establish or modify requirements relating to miand for other purposes. opment financial institutions, and impact banks, nority depository institutions, community devel-