II 

117TH CONGRESS 

2D SESSION S. 4532 

To amend the Community Reinvestment Act of 1977 to provide financial 

institutions with credit for providing community business development 

referrals or resources, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 14, 2022 

Ms. HASSAN introduced the following bill; which was read twice and referred 

to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To amend the Community Reinvestment Act of 1977 to 

provide financial institutions with credit for providing 

community business development referrals or resources, 

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 ‘‘Strengthening Commu5 nity Business Development Act’’. 


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1 SEC. 2. CRA CREDIT FOR PROVIDING COMMUNITY BUSI2 NESS DEVELOPMENT REFERRALS OR RE3 SOURCES. 

4 Section 804 of the Community Reinvestment Act of 

5 1977 (12 U.S.C. 2903) is amended by adding at the end 

6 the following: 

7 ‘‘(e) REFERRALS TO COMMUNITY BUSINESS DEVEL8 OPMENT ORGANIZATIONS.— 

9 ‘‘(1) DEFINITION.—In this subsection, the term 

10 ‘community business development organization’— 

11 ‘‘(A) means an organization that provides 

12 low- and moderate-income borrowers with busi13 ness development resources, including— 

14 ‘‘(i) credit improvement programs; 

15 ‘‘(ii) business counseling and men16 toring; 

17 ‘‘(iii) financial literacy programs; and 

18 ‘‘(iv) business development courses; 

19 and 

20 ‘‘(B) includes— 

21 ‘‘(i) a district office of the Small Busi22 ness Administration; 

23 ‘‘(ii) a small business development 

24 center described in section 21 of the Small 

25 Business Act (15 U.S.C. 648); 


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1 ‘‘(iii) a women’s business center de2 scribed in section 29 of the Small Business 

3 Act (15 U.S.C. 649); 

4 ‘‘(iv) an entrepreneurial center that 

5 offers business development resources, in6 cluding— 

7 ‘‘(I) workshops, training, edu8 cational programs, and other business 

9 development services; and 

10 ‘‘(II) mentorship and business 

11 counseling services; 

12 ‘‘(v) the Service Corps of Retired Ex13 ecutives authorized under section 

14 8(b)(1)(B) of the Small Business Act (15 

15 U.S.C. 637(b)(1)(B)); and 

16 ‘‘(vi) a Veteran Business Outreach 

17 Center described in section 32 of the Small 

18 Business Act (15 U.S.C. 657b). 

19 ‘‘(2) REQUIREMENT.—In assessing and taking 

20 into account, under subsection (a), the record of a 

21 financial institution, the appropriate Federal finan22 cial supervisory agency may consider, as a factor, ef23 forts of the financial institution to— 

24 ‘‘(A) refer low- and moderate-income bor25 rowers to whom they have denied business loans 


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1 to community business development organiza2 tions; or 

3 ‘‘(B) directly provide low- and moderate-in4 come borrowers with business development re5 sources. 

6 ‘‘(3) GUIDANCE.— 

7 ‘‘(A) IN GENERAL.—Not later than 60 

8 days after the date of enactment of this sub9 section, the appropriate Federal financial super10 visory agencies shall issue guidance to carry out 

11 this subsection. 

12 ‘‘(B) CONSIDERATION OF SMALL FINAN13 CIAL INSTITUTIONS.—In issuing the guidance 

14 required under subparagraph (A), the appro15 priate Federal financial supervisory agencies 

16 shall consider ways for small financial institu17 tions to receive credit for referrals and re18 sources provided under paragraph (2). 

19 ‘‘(C) ADDITIONAL GUIDANCE.—The Sec20 retary of the Treasury shall issue guidance for 

21 financial institutions on the process of referring 

22 a borrower to a community business develop23 ment organization in a manner that responds to 

24 community needs.’’. 

Æ 


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