II 

117TH CONGRESS 

2D SESSION S. 4537 

To amend the Community Development Banking and Financial Institutions 

Act of 1994 to adjust for inflation the maximum amount of assistance 

provided by the Community Development Financial Institutions Fund, 

and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 14, 2022 

Mr. WARNER (for himself and Mr. HAGERTY) 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 Development Banking and Financial Institutions Act of 1994 to adjust for inflation the 

maximum amount of assistance provided by the Community Development Financial Institutions Fund, 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 ‘‘Scaling Community 

5 Lenders Act of 2022’’. 


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1 SEC. 2. CAPITALIZATION ASSISTANCE TO ENHANCE LIQUID2 ITY. 

3 (a) IN GENERAL.—Section 113 of the Community 

4 Development Banking and Financial Institutions Act of 

5 1994 (12 U.S.C. 4712) is amended— 

6 (1) by striking subsection (a) and inserting the 

7 following: 

8 ‘‘(a) ASSISTANCE.— 

9 ‘‘(1) IN GENERAL.—The Fund may provide 

10 funds to organizations for the purpose of— 

11 ‘‘(A) purchasing loans, loan participations, 

12 or interests therein from community develop13 ment financial institutions; 

14 ‘‘(B) providing guarantees, loan loss re15 serves, or other forms of credit enhancement to 

16 promote liquidity for community development 

17 financial institutions; and 

18 ‘‘(C) otherwise enhancing the liquidity of 

19 community development financial institutions. 

20 ‘‘(2) CONSTRUCTION OF FEDERAL GOVERN21 MENT FUNDS.—For purposes of this subsection, not22 withstanding section 105(a)(9) of the Housing and 

23 Community Development Act of 1974 (42 U.S.C. 

24 5305(a)(9)), funds provided pursuant to such Act 

25 shall be considered to be Federal Government 

26 funds.’’; 


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1 (2) by striking subsection (b) and inserting the 

2 following: 

3 ‘‘(b) SELECTION.— 

4 ‘‘(1) IN GENERAL.—The selection of organiza5 tions to receive assistance and the amount of assist6 ance to be provided to any organization under this 

7 section shall be at the discretion of the Fund and in 

8 accordance with criteria established by the Fund. 

9 ‘‘(2) ELIGIBILITY.—Organizations eligible to re10 ceive assistance under this section— 

11 ‘‘(A) shall have a primary purpose of pro12 moting community development; and 

13 ‘‘(B) are not required to be community de14 velopment financial institutions. 

15 ‘‘(3) PRIORITIZATION.—For the purpose of 

16 making an award, the Fund shall prioritize the se17 lection of organizations that— 

18 ‘‘(A) demonstrate relevant experience or an 

19 ability to carry out the activities under this sec20 tion, including experience leading or partici21 pating in loan purchase structures, or pur22 chasing or participating in the purchase of, or 

23 assigning, or otherwise transferring assets from 

24 community development financial institutions; 


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1 ‘‘(B) demonstrate the capacity to increase 

2 the number or dollar volume of loan origina3 tions or expand the products or services of com4 munity development financial institutions, in5 cluding by leveraging the award with private 

6 capital; and 

7 ‘‘(C) will use the funds to support commu8 nity development financial institutions that rep9 resent broad geographic coverage or that serve 

10 borrowers that have experienced significant 

11 unmet capital or financial services needs.’’; 

12 (3) in subsection (c), in the first sentence— 

13 (A) by striking ‘‘$5,000,000’’ and inserting 

14 ‘‘$20,000,000’’; and 

15 (B) by striking ‘‘during any 3-year pe16 riod’’; and 

17 (4) by adding at the end the following: 

18 ‘‘(g) REGULATIONS.—The Secretary may promulgate 

19 such regulations as may be necessary or appropriate to 

20 carry out the authorities or purposes of this section. 

21 ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There 

22 are authorized to be appropriated to the Secretary 

23 $100,000,000 to carry out this section, including to carry 

24 out a study on the options to increase community developVerDate Sep 11 2014 04:54 Jul 15, 2022 Jkt 029200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S4537.IS S4537

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1 ment financial institution liquidity and secondary market 

2 opportunities.’’. 

3 (b) ANNUAL REPORTS.— 

4 (1) DEFINITIONS.—In this subsection, the 

5 terms ‘‘community development financial institu6 tion’’ and ‘‘Fund’’ have the meanings given the 

7 terms in section 103 of the Community Development 

8 Banking and Financial Institutions Act of 1994 (12 

9 U.S.C. 4702). 

10 (2) REQUIREMENTS.—Not later than 1 year 

11 after the date on which assistance is first provided 

12 under section 113 of the Community Development 

13 Banking and Financial Institutions Act of 1994 (12 

14 U.S.C. 4712) pursuant to the amendments made by 

15 subsection (a), and annually thereafter through 

16 2028, the Secretary of the Treasury shall submit to 

17 Congress a written report describing the use of the 

18 Fund for the 1-year period preceding the submission 

19 of the report for the purposes described in sub20 section (a)(1) of such section 113 (as amended by 

21 subsection (a) of this section), which shall include, 

22 with respect to the period covered by the report— 

23 (A) the total amount of— 


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1 (i) loans, loan participations, and in2 terests therein purchased from community 

3 development financial institutions; and 

4 (ii) guarantees, loan loss reserves, and 

5 other forms of credit enhancement pro6 vided to community development financial 

7 institutions; 

8 (B) the effect of the purchases and guar9 antees made by the Fund on the overall com10 petitiveness of community development financial 

11 institutions; and 

12 (C) the impact of the purchases and guar13 antees made by the Fund on the liquidity of 

14 community development financial institutions. 

Æ 


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