II 

116TH CONGRESS 

2D SESSION S. 4255 

To amend the CARES Act to establish community investment programs, 

and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 21, 2020 

Mr. WARNER (for himself, Mr. BOOKER, Ms. HARRIS, and Mr. SCHUMER) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To amend the CARES Act to establish community 

investment programs, 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 ‘‘Jobs and Neighbor5 hood Investment Act’’. 

6 SEC. 2. PURPOSE. 

7 The purpose of this Act is to— 

8 (1) establish programs to revitalize and provide 

9 long-term financial products and service availability 


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1 for, and provide investments in, low- and moderate2 income and minority communities; 

3 (2) respond to the unprecedented loss of Black4 owned businesses and unemployment; and 

5 (3) otherwise enhance the stability, safety and 

6 soundness of community financial institutions that 

7 support low- and moderate-income and minority 

8 communities. 

9 SEC. 3. CONSIDERATIONS; REQUIREMENTS FOR CREDI10 TORS. 

11 (a) IN GENERAL.—In exercising the authorities 

12 under this Act and the amendments made by this Act, 

13 the Secretary of the Treasury shall take into consider14 ation— 

15 (1) increasing the availability of affordable 

16 credit for consumers, small businesses, and nonprofit 

17 organizations, including for projects supporting af18 fordable housing, community-serving real estate, and 

19 other projects, that provide direct benefits to low20 and moderate-income communities, low-income and 

21 underserved individuals, and minorities; 

22 (2) providing funding to minority-owned or mi23 nority-led eligible institutions and other eligible insti24 tutions that have a strong track record of serving 

25 minority small businesses; 


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1 (3) protecting and increasing jobs in the United 

2 States; 

3 (4) increasing the opportunity for small busi4 ness, affordable housing and community develop5 ment in geographic areas and demographic segments 

6 with poverty and high unemployment rates that ex7 ceed the average in the United States; 

8 (5) ensuring that all low- and moderate-income 

9 community financial institutions may apply to par10 ticipate in the programs established under this Act 

11 and the amendments made by this Act, without dis12 crimination based on geography; 

13 (6) providing transparency with respect to use 

14 of funds provided under this Act and the amend15 ments made by this Act; 

16 (7) promoting and engaging in financial edu17 cation to would-be borrowers; and 

18 (8) providing funding to eligible institutions 

19 that serve consumers, small businesses, and non20 profit organizations to support affordable housing, 

21 community-serving real estate, and other projects 

22 that provide direct benefits to low- and moderate-in23 come communities, low-income individuals, and mi24 norities directly affected by the COVID–19 pan25 demic. 


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1 (b) REQUIREMENT FOR CREDITORS.—Any creditor 

2 participating in a program established under this Act or 

3 the amendments made by this Act shall fully comply with 

4 all applicable statutory and regulatory requirements relat5 ing to fair lending. 

6 SEC. 4. SENSE OF CONGRESS. 

7 It is the sense of Congress that the investments made 

8 by the Secretary of the Treasury under this Act and the 

9 amendments made by this Act should be designed to maxi10 mize the benefit to low- and moderate-income and minor11 ity communities and contemplate losses to capital of the 

12 Treasury. 

13 SEC. 5. NEIGHBORHOOD INVESTMENT PROGRAMS. 

14 Title IV of the CARES Act (Public Law 116–136) 

15 is amended— 

16 (1) in section 4002 (15 U.S.C. 9041)— 

17 (A) by redesignating paragraphs (7) 

18 through (10) as paragraphs (8) through (11), 

19 respectively; and 

20 (B) by inserting after paragraph (6) the 

21 following: 

22 ‘‘(7) LOW- AND MODERATE-INCOME COMMU23 NITY FINANCIAL INSTITUTION.—The term ‘low- and 

24 moderate-income community financial institution’ 

25 means any financial institution that is— 


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1 ‘‘(A) a community development financial 

2 institution, as defined in section 103 of the Rie3 gle Community Development and Regulatory 

4 Improvement Act of 1994 (12 U.S.C. 4702); or 

5 ‘‘(B) a minority depository institution, as 

6 defined in section 308 of the Financial Institu7 tions Reform, Recovery, and Enforcement Act 

8 of 1989 (12 U.S.C. 1463 note), for which the 

9 majority of the community served by the minor10 ity depository institution is minority, as defined 

11 in such section.’’; 

12 (2) in section 4003 (15 U.S.C. 9042), by add13 ing at the end the following: 

14 ‘‘(i) NEIGHBORHOOD CAPITAL INVESTMENT PRO15 GRAM.— 

16 ‘‘(1) DEFINITIONS.—In this subsection— 

17 ‘‘(A) the term ‘community development fi18 nancial institution’ has the meaning given the 

19 term in section 103 of the Riegle Community 

20 Development and Regulatory Improvement Act 

21 of 1994 (12 U.S.C. 4702); 

22 ‘‘(B) the term ‘Fund’ means the Commu23 nity Development Financial Institutions Fund 

24 established under section 104(a) of the Riegle 


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1 Community Development and Regulatory Im2 provement Act of 1994 (12 U.S.C. 4703(a)); 

3 ‘‘(C) the term ‘minority’ means any Black 

4 American, Native American, Hispanic Amer5 ican, or Asian American; and 

6 ‘‘(D) the term ‘Program’ means the Neigh7 borhood Capital Investment Program estab8 lished under paragraph (2). 

9 ‘‘(2) ESTABLISHMENT.—The Secretary shall es10 tablish a Neighborhood Capital Investment Program 

11 to support low- and moderate-income community fi12 nancial institutions to provide loans and forbearance 

13 to borrowers in low- and moderate-income commu14 nities, especially for borrowers who are historically 

15 disadvantaged, including minorities, and borrowers 

16 in rural and urban low-income and underserved com17 munities. 

18 ‘‘(3) INVESTMENTS.—Under the Program, the 

19 Secretary shall establish a fund to facilitate direct 

20 capital investments, including purchases and modi21 fications of those purchases, of senior preferred non22 voting stock, subordinated debentures, and other fi23 nancial instruments (including equity equivalent cap24 ital and secondary capital investments described in 

25 section 216(o)(2)(C) of the Federal Credit Union 


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1 Act (12 U.S.C. 1790d(o)(2)(C)) from low- and mod2 erate-income community financial institutions on 

3 such terms as are determined by the Secretary in ac4 cordance with this subtitle. 

5 ‘‘(4) APPLICATION.— 

6 ‘‘(A) ACCEPTANCE.—The Secretary shall 

7 begin accepting applications for capital invest8 ments under the Program not later than the 

9 end of the 30-day period beginning on the date 

10 of enactment of this subsection, with priority in 

11 distribution given to low- and moderate-income 

12 community financial institutions that are mi13 nority-owned or minority-led lenders. 

14 ‘‘(B) REQUIREMENT TO PROVIDE A NEIGH15 BORHOOD INVESTMENT LENDING PLAN.— 

16 ‘‘(i) IN GENERAL.—At the time that 

17 an applicant submits an application to the 

18 Secretary for a capital investment under 

19 the Program, the applicant shall provide 

20 the Secretary, along with the appropriate 

21 Federal banking agency, an investment 

22 and lending plan that— 

23 ‘‘(I) demonstrates that not less 

24 than 30 percent of the lending of the 

25 applicant over the past 2 fiscal years 


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1 was made directly to low- and mod2 erate income borrowers, to borrowers 

3 that create direct benefits for low- and 

4 moderate-income populations, to other 

5 targeted populations as defined by the 

6 Fund, or any combination thereof, as 

7 measured by the total number and 

8 dollar amount of loans; 

9 ‘‘(II) describes how the business 

10 strategy and operating goals of the 

11 applicant will address community de12 velopment needs, which includes the 

13 needs of small businesses, consumers, 

14 nonprofit organizations, community 

15 development, and other projects pro16 viding direct benefits to low- and mod17 erate-income communities, low-income 

18 individuals, and minorities within the 

19 minority, rural, and urban low-income 

20 and underserved areas served by the 

21 applicant; 

22 ‘‘(III) includes a plan to provide 

23 linguistically and culturally appro24 priate outreach, where appropriate; 


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1 ‘‘(IV) includes an attestation by 

2 the applicant that the applicant does 

3 not own, service, or offer any financial 

4 products at an annual percentage rate 

5 of more than 36 percent interest, as 

6 defined in section 987(i)(4) of title 

7 10, United States Code, and is com8 pliant with State interest rate laws; 

9 and 

10 ‘‘(V) includes details on how the 

11 applicant plans to expand or maintain 

12 significant lending or investment ac13 tivity in low- or moderate-income mi14 nority communities, to historically dis15 advantaged borrowers, and to minori16 ties that have significant unmet cap17 ital or financial services needs. 

18 ‘‘(ii) COMMUNITY DEVELOPMENT

19 LOAN FUNDS.—An applicant that is not an 

20 insured community development financial 

21 institution or otherwise regulated by a 

22 Federal financial regulator shall submit 

23 the plan described in clause (i) only to the 

24 Secretary. 


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1 ‘‘(iii) DOCUMENTATION.—In the case 

2 of an applicant that is certified as a com3 munity development financial institution as 

4 of the date of enactment of this subsection, 

5 for purposes of clause (i)(I), the Secretary 

6 may rely on documentation submitted the 

7 Fund as part of certification compliance 

8 reporting. 

9 ‘‘(5) INCENTIVES TO INCREASE LENDING AND

10 PROVIDE AFFORDABLE CREDIT.— 

11 ‘‘(A) REQUIREMENTS ON PREFERRED

12 STOCK AND OTHER FINANCIAL INSTRUMENT.— 

13 Any financial instrument issued to Treasury by 

14 a low- and moderate-income community finan15 cial institution under the Program shall provide 

16 the following: 

17 ‘‘(i) No dividends, interest or other 

18 payments shall exceed 2 percent per 

19 annum. 

20 ‘‘(ii) After the first 24 months from 

21 the date of the capital investment under 

22 the Program, annual payments may be re23 quired, as determined by the Secretary and 

24 in accordance with this section, and ad25 justed downward based on the amount of 


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1 affordable credit provided by the low- and 

2 moderate-income community financial in3 stitution to borrowers in minority, rural, 

4 and urban low-income and underserved 

5 communities. 

6 ‘‘(iii) During any calendar quarter 

7 after the initial 24-month period referred 

8 to in clause (ii), the annual payment rate 

9 of a low- and moderate-income community 

10 financial institution shall be adjusted 

11 downward to reflect the following schedule, 

12 based on lending by the institution relative 

13 to the baseline period: 

14 ‘‘(I) If the institution in the most 

15 recent annual period prior to the in16 vestment provides significant lending 

17 or investment activity in low- or mod18 erate-income minority communities, 

19 historically disadvantaged borrowers, 

20 and to minorities that have significant 

21 unmet capital or financial services, 

22 the annual payment rate shall not ex23 ceed 0.5 percent per annum. 

24 ‘‘(II) If the amount of lending 

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1 income and underserved communities 

2 and to low- and moderate-income bor3 rowers has increased dollar for dollar 

4 based on the amount of the capital in5 vestment, the annual payment rate 

6 shall not exceed 1 percent per annum. 

7 ‘‘(III) If the amount of lending 

8 within minority, rural, and urban low9 income and underserved communities 

10 and to low- and moderate-income bor11 rowers has increased by twice the 

12 amount of the capital investment, the 

13 annual payment rate shall not exceed 

14 0.5 percent per annum. 

15 ‘‘(B) CONTINGENCY OF PAYMENTS BASED

16 ON CERTAIN FINANCIAL CRITERIA.— 

17 ‘‘(i) DEFERRAL.—Any annual pay18 ments under this subsection shall be de19 ferred in any quarter or payment period if 

20 any of the following is true: 

21 ‘‘(I) The low- and moderate-in22 come community institution fails to 

23 meet the Tier 1 capital ratio or simi24 lar ratio as determined by the Sec25 retary. 


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1 ‘‘(II) The low- and moderate-in2 come community financial institution 

3 fails to achieve positive net income for 

4 the quarter or payment period. 

5 ‘‘(III) The low- and moderate-in6 come community financial institution 

7 determines that the payment would be 

8 detrimental to the financial health of 

9 the institution. 

10 ‘‘(ii) TESTING DURING NEXT PAY11 MENT PERIOD.—Any deferred annual pay12 ment under this subsection shall be tested 

13 against the metrics described in clause (i) 

14 at the beginning of the next payment pe15 riod, and such payments shall continue to 

16 be deferred until the metrics described in 

17 that clause are no longer applicable. 

18 ‘‘(6) RESTRICTIONS.— 

19 ‘‘(A) IN GENERAL.—Each low- and mod20 erate-income community financial institution 

21 may only issue financial instruments or senior 

22 preferred stock under this subsection with an 

23 aggregate principal amount that is— 


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1 ‘‘(i) not more than 15 percent of risk2 weighted assets for an institution with as3 sets of more than $2,000,000,000; 

4 ‘‘(ii) not more than 25 percent of 

5 risk-weighted assets for an institution with 

6 assets of not less than $500,000,000 and 

7 not more than $2,000,000,000; and 

8 ‘‘(iii) not more than 30 percent of 

9 risk-weighted assets for an institution with 

10 assets of less than $500,000,000. 

11 ‘‘(B) HOLDING OF INSTRUMENTS.—Hold12 ing any instrument of a low- and moderate-in13 come community financial institution described 

14 in subparagraph (A) shall not give the Treasury 

15 or any successor that owns the instrument any 

16 rights over the management of the institution. 

17 ‘‘(C) SALE OF INTEREST.—With respect to 

18 a capital investment made into a low- and mod19 erate-income community financial institution 

20 under this subsection, the Secretary— 

21 ‘‘(i) except as provided in clause (iv), 

22 during the 10-year period following the in23 vestment, may not sell the interest of the 

24 Secretary in the capital investment to a 

25 third party; 


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1 ‘‘(ii) shall provide the low- and mod2 erate-income community financial institu3 tion a right of first refusal to buy back the 

4 investment under terms that do not exceed 

5 a value as determined by an independent 

6 third party; and 

7 ‘‘(iii) shall not sell more than a 5 per8 cent ownership interest in the capital in9 vestment to a single third party; and 

10 ‘‘(iv) with the permission of the insti11 tution, may gift or sell the interest of the 

12 Secretary in the capital investment for a 

13 de minimus amount to— 

14 ‘‘(I) a mission aligned nonprofit 

15 affiliate of an applicant that is an in16 sured community development finan17 cial institution, as defined in section 

18 103 of the Riegle Community Devel19 opment and Regulatory Improvement 

20 Act of 1994 (12 U.S.C. 4702); or 

21 ‘‘(II) 1 or more mission-aligned 

22 nonprofit organizations selected by the 

23 institution that are not affiliated with 

24 the institution. 


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1 ‘‘(v) CALCULATION OF OWNERSHIP

2 FOR MINORITY DEPOSITORY INSTITU3 TIONS.—The calculation and determination 

4 of ownership thresholds for a depository 

5 institution to qualify as a minority deposi6 tory institution described in section 

7 4002(7)(B) shall exclude any dilutive effect 

8 of equity investments by the Federal Gov9 ernment, including under the Program or 

10 through the Fund. 

11 ‘‘(7) AVAILABLE AMOUNTS.—In carrying out 

12 the Program, the Secretary shall use such sums as 

13 may be necessary, but not less than $7,000,000,000, 

14 from amounts made available under subsection (b), 

15 notwithstanding the limitations on the use of such 

16 funds under paragraphs (1) through (4) of such sub17 section (b). 

18 ‘‘(8) TREATMENT OF CAPITAL INVESTMENTS.— 

19 Any capital investment under the Program shall re20 ceive Tier 1 capital treatment, as defined by the 

21 Federal Financial Institutions Examination Council, 

22 or shall be treated as a secondary capital investment 

23 described in section 216(o)(2)(C) of the Federal 

24 Credit Union Act (12 U.S.C. 1790d(o)(2)(C)). 


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1 ‘‘(9) OUTREACH TO MINORITIES.—The Sec2 retary shall require low- and moderate-income com3 munity financial institutions receiving capital invest4 ments under the Program to provide linguistically 

5 and culturally appropriate outreach and advertising 

6 describing the availability and application process of 

7 receiving loans made possible by the Program 

8 through organizations, trade associations, and indi9 viduals that represent or work within or are mem10 bers of minority communities. 

11 ‘‘(10) INAPPLICABILITY OF RESTRICTIONS.— 

12 The restrictions and limitations described in sub13 paragraphs (E) and (F) of paragraph (2) and para14 graph (3)(A)(ii) of subsection (c) of section 4003 

15 and in section 4004 shall not apply to the Program. 

16 ‘‘(11) TERMINATION OF INVESTMENT AUTHOR17 ITY.—The authority to make capital investments in 

18 low- and moderate-income community financial insti19 tutions, including commitments to purchase pre20 ferred stock or other instruments, provided under 

21 the Program shall terminate on the date that is 36 

22 months after the date of enactment of this sub23 section. 


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1 ‘‘(12) COLLECTION OF DATA.—Notwithstanding 

2 the Equal Opportunity Credit Act (15 U.S.C. 1691 

3 et seq.)— 

4 ‘‘(A) any low- and moderate-income com5 munity financial institution may collect data de6 scribed in section 701(a)(1) of that Act (15 

7 U.S.C. 1691(a)(1)) from borrowers and appli8 cants for credit for the purpose of monitoring 

9 compliance under the plan required under para10 graph (4)(B); and 

11 ‘‘(B) a low- and moderate-income commu12 nity financial institution that collects the data 

13 described in subparagraph (A) shall not be sub14 ject to adverse action related to that collection 

15 by the Bureau of Consumer Financial Protec16 tion or any other Federal agency. 

17 ‘‘(13) DEPOSIT OF FUNDS.—All funds received 

18 by the Secretary in connection with purchases made 

19 pursuant this subsection, including interest pay20 ments, dividend payments, and proceeds from the 

21 sale of any financial instrument, shall be deposited 

22 into the Fund and used to provide financial and 

23 technical assistance pursuant to section 108 of the 

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1 provement Act of 1994 (12 U.S.C. 4707), except 

2 that subsection (e) of that section shall be waived.’’. 

3 ‘‘(j) NEIGHBORHOOD LOAN PROGRAM.— 

4 ‘‘(1) DEFINITIONS.—In this subsection— 

5 ‘‘(A) the term ‘financial institution’ means 

6 any entity regulated by the Comptroller of the 

7 Currency, the Board of Governors of the Fed8 eral Reserve System, or the Federal Deposit In9 surance Corporation; 

10 ‘‘(B) the term ‘intermediary’ means any 

11 entity engaged in aggregating loans originated 

12 by low- and moderate-income community finan13 cial institutions; and 

14 ‘‘(C) the term ‘Program’ means the Neigh15 borhood Loan Program established under para16 graph (2). 

17 ‘‘(2) ESTABLISHMENT.—The Secretary, in con18 junction with the Board of Governors of the Federal 

19 Reserve System, shall establish a Neighborhood 

20 Loan Program to create facilities under section 

21 13(3) of the Federal Reserve Act (12 U.S.C. 343(3)) 

22 to provide liquidity and encourage equity equivalent 

23 capital investments for low- and moderate-income 

24 community financial institutions serving low- and 

25 moderate-income and minority communities. 


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1 ‘‘(3) MINIMIZATION OF BURDEN.—Any guid2 ance, regulations, frequently asked question, or other 

3 written or verbal communications provided by the 

4 Secretary or the Board of Governors of the Federal 

5 Reserve System in connection with the Program 

6 shall be designed to minimize any burden to the rel7 evant low- and moderate-income community finan8 cial institution and to ensure that the Program is 

9 actively utilized by the low- and moderate-income 

10 community financial institution for which the Pro11 gram is being created. 

12 ‘‘(4) SMALL BUSINESS COMMUNITY LOAN PAR13 TICIPATIONS.— 

14 ‘‘(A) IN GENERAL.—The facilities created 

15 under paragraph (2) shall purchase 90 percent 

16 of the balance of eligible small business loans 

17 described in subparagraph (B), either directly 

18 from low- and moderate-income community fi19 nancial institutions, or from intermediaries, to 

20 increase access to credit and build wealth in 

21 low- and moderate-income and minority commu22 nities. 

23 ‘‘(B) CRITERIA FOR ELIGIBLE SMALL

24 BUSINESS LOANS.—An eligible small business 


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1 loan described in this subparagraph shall 

2 have— 

3 ‘‘(i) a maximum loan balance of 

4 $250,000; 

5 ‘‘(ii) reasonable loan origination and 

6 service fees; and 

7 ‘‘(iii) other terms as prescribed by the 

8 Secretary. 

9 ‘‘(C) ELIGIBILITY.—To be eligible under 

10 subparagraph (A), a low- and moderate-income 

11 community financial institution shall hold not 

12 less than 10 percent of each eligible small busi13 ness loan described in subparagraph (B), or 10 

14 percent of the loans as represented in a loan 

15 pool described in subparagraph (D). 

16 ‘‘(D) LOAN POOL.—Each loan pool de17 scribed in subparagraph (A)— 

18 ‘‘(i) shall be composed of not less than 

19 50 loans that amount to not less than 

20 $1,000,000; 

21 ‘‘(ii) shall be originated by a low- and 

22 moderate-income community financial in23 stitution for a commercially reasonable fee 

24 charged by the facility created under the 

25 Program; 


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1 ‘‘(iii) shall be serviced by a low- and 

2 moderate-income community financial in3 stitution for a commercially reasonable fee 

4 charged by a facility created under the 

5 Program; and 

6 ‘‘(iv) shall be representative of the 

7 risk in the total loan portfolio of the low8 and moderate-income community financial 

9 institution. 

10 ‘‘(E) PRIORITIZATION.—Low- and mod11 erate-income community financial institutions 

12 shall prioritize the purchase of eligible small 

13 business loans described in subparagraph (B) 

14 that are made to minority-owned small busi15 nesses. 

16 ‘‘(5) EQUITY EQUIVALENT LOAN PARTICIPA17 TIONS.— 

18 ‘‘(A) IN GENERAL.—The facilities created 

19 under paragraph (2) shall purchase 90 percent 

20 participations in loans made by financial insti21 tutions to low- and moderate-income community 

22 financial institutions that meet the eligibility re23 quirements in this paragraph. 

24 ‘‘(B) ELIGIBILITY.—To be eligible under 

25 subparagraph (A), a financial institution shall 


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1 retain not less than 10 percent of each loan de2 scribed in subparagraph (C). 

3 ‘‘(C) LOANS.—A loan described in this 

4 subparagraph shall be— 

5 ‘‘(i) for not more than $10,000,000; 

6 ‘‘(ii) originated after March 15, 2020; 

7 ‘‘(iii) serviced by a financial institu8 tion; and 

9 ‘‘(iv) treated as an equity equivalent 

10 investment, as defined by the Comptroller 

11 of the Currency, the Board of Governors of 

12 the Federal Reserve System, or the Fed13 eral Deposit Insurance Corporation. 

14 ‘‘(6) APPLICATION DATE.—The Secretary shall 

15 begin accepting applications under the Program not 

16 later than the end of the 30-day period beginning on 

17 the date of enactment of this subsection. 

18 ‘‘(7) INAPPLICABILITY OF RESTRICTIONS.—The 

19 restrictions and limitations described in subpara20 graphs (E) and (F) of paragraph (2) and paragraph 

21 (3)(A)(ii) of subsection (b) of section 4003 and in 

22 section 4004 shall not apply to the Program. 

23 ‘‘(8) AVAILABLE AMOUNTS.—In carrying out 

24 the Program, the Secretary shall use such sums as 

25 may be necessary, but not less than $8,000,000,000, 


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1 from amounts made available under paragraph (4) 

2 of subsection (b), notwithstanding the limitations on 

3 the use of such funds under that paragraph. 

4 ‘‘(9) TERMINATION.—The Program shall termi5 nate on the date that is 48 months after the date 

6 of enactment of this subsection. 

7 ‘‘(k) APPLICATION OF THE MILITARY LENDING

8 ACT.— 

9 ‘‘(1) IN GENERAL.—No low- and moderate-in10 come community financial institution that receives 

11 an equity investment under subsection (i) or sells a 

12 loan participation under subsection (j) shall, for so 

13 long as the investment or participation continues, 

14 make any loan at an annualized percentage rate 

15 above 36 percent, as determined in accordance with 

16 section 987(b) of title 10, United States Code (com17 monly known as the ‘Military Lending Act)’. 

18 ‘‘(2) NO EXEMPTIONS PERMITTED.—The ex19 emption authority of the Bureau under section 

20 105(f) of the Truth in Lending Act (15 U.S.C. 

21 1604(f)) shall not apply with respect to this sub22 section.’’. 

23 SEC. 6. SUPPORTING THE CDFI FUND. 

24 (a) APPROPRIATIONS.—Of the amounts made avail25 able to the Secretary of the Treasury under section 4027 


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1 of the CARES Act (Public Law 116–136), 

2 $2,900,000,000 shall be made available to the Fund to 

3 carry out this section. 

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

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

6 aside: 

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

8 until September 30, 2021, to support, prepare for, 

9 and respond to the economic impact of the 

10 coronavirus, provided that the Fund shall— 

11 (A) provide grants funded under this para12 graph using a formula that takes into account 

13 criteria such as certification status, financial 

14 and compliance performance, portfolio and bal15 ance sheet strength, a diversity of CDFI busi16 ness model types, and program capacity, of 

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

18 grants to benefit Native American, Native Ha19 waiian, and Alaska Native communities; and 

20 (B) make funds available under this para21 graph not later than 60 days after the date of 

22 enactment of this Act. 

23 (2) Up to $1,000,000,000, to remain available 

24 until expended, to provide grants to CDFIs— 


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1 (A) to expand lending or investment activ2 ity in low- or moderate-income minority commu3 nities and to minorities that have significant 

4 unmet capital or financial services needs; and 

5 (B) using a formula that takes into ac6 count criteria such as certification status, finan7 cial and compliance performance, portfolio and 

8 balance sheet strength, a diversity of CDFI 

9 business model types, and program capacity, as 

10 well as experience making loans and invest11 ments to those areas and populations identified 

12 in this paragraph. 

13 (3) Up to $400,000,000, to remain available 

14 until expended, for technical assistance, technology, 

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

16 respectively, of the Riegle Community Development 

17 and Regulatory Improvement Act of 1994 (12 

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

19 minority-led and minority-owned CDFIs that pri20 marily serve low- and moderate-income communities. 

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

22 until expended, to provide grants to recipients that 

23 are minority-led and minority-owned CDFIs. 

24 (c) ADMINISTRATIVE EXPENSES.—Funds made 

25 available under this section may be used for administrative 


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1 expenses, including administration of Fund programs and 

2 the New Markets Tax Credit Program under section 45D 

3 of the Internal Revenue Code. 

4 (d) EMERGENCY DESIGNATION.— 

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

6 this section are designated as an emergency require7 ment pursuant to section 4(g) of the Statutory Pay8 As-You-Go Act of 2010 (2 U.S.C. 933(g)). 

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

10 this section is designated as an emergency require11 ment pursuant to section 4112(a) of H. Con. Res. 

12 71 (115th Congress), the concurrent resolution on 

13 the budget for fiscal year 2018. 

14 (e) DEFINITIONS.—In this section: 

15 (1) CDFI.—The term ‘‘CDFI’’ means a com16 munity development financial institution, as defined 

17 in section 103 of the Riegle Community Develop18 ment and Regulatory Improvement Act of 1994 (12 

19 U.S.C. 4702). 

20 (2) FUND.—The term ‘‘Fund’’ means the Com21 munity Development Financial Institutions Fund es22 tablished under section 104(a) of the Riegle Commu23 nity Development and Regulatory Improvement Act 

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


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

2 any Black American, Native American, Hispanic 

3 American, or Asian American. 

4 SEC. 7. FEDERAL DEPOSITS IN MINORITY DEPOSITORY IN5 STITUTIONS. 

6 (a) IN GENERAL.—Section 308 of the Financial In7 stitutions Reform, Recovery, and Enforcement Act of 

8 1989 (12 U.S.C. 1463 note) is amended by adding at the 

9 end the following: 

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

11 Treasury shall ensure that deposits made by Federal agen12 cies in minority depository institutions are fully 

13 collateralized or fully insured, as determined by the Sec14 retary. Such deposits shall include reciprocal deposits as 

15 defined in section 337.6(e)(2)(v) of title 12, Code of Fed16 eral Regulations (as in effect on March 6, 2019).’’. 

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

18 Financial Institutions Reform, Recovery, and Enforce19 ment Act of 1989 (12 U.S.C. 1463 note) is amended— 

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

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

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

23 by striking ‘‘FINANCIAL’’ and inserting ‘‘DEPOSI24 TORY’’. 


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1 SEC. 8. MINORITY BANK DEPOSIT PROGRAM. 

2 (a) IN GENERAL.—Section 1204 of the Financial In3 stitutions Reform, Recovery, and Enforcement Act of 

4 1989 (12 U.S.C. 1811 note) is amended to read as follows: 

5 ‘‘SEC. 1204. EXPANSION OF USE OF MINORITY BANKS AND 

6 MINORITY CREDIT UNIONS. 

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

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

9 program to be known as the ‘Minority Bank Deposit 

10 Program’ to expand the use of minority banks and 

11 minority credit unions. 

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

13 Treasury, acting through the Fiscal Service, shall— 

14 ‘‘(A) on application by a depository institu15 tion or credit union, certify whether such depos16 itory institution or credit union is a minority 

17 bank or minority credit union; 

18 ‘‘(B) maintain and publish a list of all de19 pository institutions and credit unions that have 

20 been certified pursuant to subparagraph (A); 

21 and 

22 ‘‘(C) periodically distribute the list de23 scribed in subparagraph (B) to— 

24 ‘‘(i) all Federal departments and 

25 agencies; 


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1 ‘‘(ii) interested State and local govern2 ments; and 

3 ‘‘(iii) interested private sector compa4 nies. 

5 ‘‘(3) INCLUSION OF CERTAIN ENTITIES ON

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

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

8 current certification from the Secretary of the 

9 Treasury stating that such depository institution or 

10 credit union is a minority bank or minority credit 

11 union shall be included on the list described under 

12 paragraph (2)(B). 

13 ‘‘(b) EXPANDED USE AMONG FEDERAL DEPART14 MENTS AND AGENCIES.— 

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

16 the establishment of the program described in sub17 section (a), the head of each Federal department or 

18 agency shall develop and implement standards and 

19 procedures to ensure, to the maximum extent pos20 sible as permitted by law, the use of minority banks 

21 and minority credit unions to serve the financial 

22 needs of each such department or agency. 

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

24 years after the establishment of the program de25 scribed in subsection (a), and annually thereafter, 


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1 the head of each Federal department or agency shall 

2 submit to Congress a report on the actions taken to 

3 increase the use of minority banks and minority 

4 credit unions to serve the financial needs of each 

5 such department or agency. 

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

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

8 has the meaning given the term ‘insured credit 

9 union’ in section 101 of the Federal Credit Union 

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

11 ‘‘(2) DEPOSITORY INSTITUTION.—The term ‘de12 pository institution’ has the meaning given the term 

13 ‘insured depository institution’ in section 3 of the 

14 Federal Deposit Insurance Act (12 U.S.C. 1813). 

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

16 any Black American, Native American, Hispanic 

17 American, or Asian American. 

18 ‘‘(4) MINORITY BANK.—The term ‘minority 

19 bank’ means a minority depository institution as de20 fined in section 308 of this Act. 

21 ‘‘(5) MINORITY CREDIT UNION.—The term ‘mi22 nority credit union’ means any credit union for 

23 which more than 50 percent of the membership (in24 cluding board members) of such credit union are mi25 nority individuals, as determined by the National 


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1 Credit Union Administration pursuant to section 

2 308 of this Act.’’. 

3 (b) CONFORMING AMENDMENTS.—The following pro4 visions are amended by striking ‘‘1204(c)(3)’’ and insert5 ing ‘‘1204(c)’’: 

6 (1) Section 808(b)(3) of the Community Rein7 vestment Act of 1977 (12 U.S.C. 2907(b)(3)). 

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

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

10 (3) Section 704B(h)(4) of the Equal Credit Op11 portunity Act (15 U.S.C. 1691c–2(h)(4)). 

12 SEC. 9. INVESTMENTS IN MINORITY DEPOSITORY INSTITU13 TIONS. 

14 (a) CONTROL FOR INSURED DEPOSITORY INSTITU15 TIONS.—Section 7(j)(8)(B) of the Federal Deposit Insur16 ance Act (12 U.S.C. 1817(j)(8)(B)) is amended to read 

17 as follows: 

18 ‘‘(B) ‘control’ means the power, directly or indi19 rectly— 

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

21 of an insured depository institution; or 

22 ‘‘(ii) of a person to vote 25 per centum or 

23 more of any class of voting securities of an in24 sured depository institution.’’. 


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1 (b) RULEMAKING.—The appropriate Federal banking 

2 agency (as defined in section 3 of the Federal Deposit In3 surance Act (12 U.S.C. 1813)) shall jointly issue rules for 

4 de novo minority depository institutions to allow 3 years 

5 to meet the capital requirements otherwise applicable to 

6 minority depository institutions. 

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

8 of enactment of this Act, the appropriate Federal banking 

9 agencies (as defined in section 3 of the Federal Deposit 

10 Insurance Act (12 U.S.C. 1813)) shall jointly submit to 

11 Congress a report on— 

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

13 de novo minority depository institutions during the 

14 10-year period preceding the date of the report; 

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

16 novo minority depository institutions; and 

17 (3) regulatory and legislative considerations to 

18 promote the establishment of de novo minority de19 pository institutions. 

20 SEC. 10. CUSTODIAL DEPOSIT PROGRAM FOR COVERED MI21 NORITY DEPOSITORY INSTITUTIONS. 

22 (a) ESTABLISHMENT.—The Secretary of the Treas23 ury shall establish a custodial deposit program (in this sec24 tion referred to as the ‘‘Program’’) under which a covered 


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1 bank shall receive monthly deposits from a qualifying ac2 count. 

3 (b) APPLICATION.—A covered bank shall submit to 

4 the Secretary an application to participate in the Program 

5 at such time, in such manner, and containing such infor6 mation as the Secretary may determine. 

7 (c) PROGRAM OPERATIONS.— 

8 (1) DESIGNATION OF CUSTODIAL ENTITIES.— 

9 The Secretary shall designate eligible custodial enti10 ties to make monthly deposits with covered banks se11 lected for participation in the Program on behalf of 

12 a qualifying account. 

13 (2) CUSTODIAL ACCOUNTS.— 

14 (A) IN GENERAL.—The Secretary shall es15 tablish a custodial deposit account for each 

16 qualifying account with the eligible custodial en17 tity designated to make deposits with covered 

18 banks for each such qualifying account. 

19 (B) AMOUNT.—The Secretary shall deposit 

20 a total amount not greater than 5 percent of a 

21 qualifying account into any custodial deposit ac22 counts established under subparagraph (A). 

23 (C) DEPOSITS WITH PROGRAM PARTICI24 PANTS.— 


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1 (i) MONTHLY DEPOSITS.—Each 

2 month, each eligible custodial entity des3 ignated by the Secretary shall deposit an 

4 amount not greater than the insured 

5 amount, in the aggregate, from each custo6 dial deposit account, in a single covered 

7 bank. 

8 (ii) LIMITATION.—With respect to the 

9 funds of an individual qualifying account, 

10 the eligible custodial entity may not de11 posit an amount greater than the insured 

12 amount in a single covered bank. 

13 (iii) INSURED AMOUNT DEFINED.—In 

14 this subparagraph, the term ‘‘insured 

15 amount’’ means the amount that is the 

16 greater of— 

17 (I) the standard maximum de18 posit insurance amount (as defined in 

19 section 11(a)(1)(E) of the Federal 

20 Deposit Insurance Act (12 U.S.C. 

21 1821(a)(1)(E))); or 

22 (II) such higher amount nego23 tiated between the Secretary and the 

24 Corporation under which the CorporaVerDate Sep 11 2014 21:48 Aug 08, 2020 Jkt 099200 PO 00000 Frm 00035 Fmt 6652 Sfmt 6201 E:\BILLS\S4255.IS S4255

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1 tion will insure all deposits of such 

2 higher amount. 

3 (D) LIMITATIONS.—The total amount of 

4 funds deposited under the Program in a covered 

5 bank may not exceed the lesser of— 

6 (i) 10 percent of the average amount 

7 of deposits held by such covered bank in 

8 the previous quarter; or 

9 (ii) $100,000,000. 

10 (3) INTEREST.— 

11 (A) IN GENERAL.—Each eligible custodial 

12 entity designated by the Secretary shall— 

13 (i) collect interest from each covered 

14 bank in which such custodial entity depos15 its funds pursuant to paragraph (2); and 

16 (ii) disburse such interest to the Sec17 retary each month. 

18 (B) INTEREST RATE.—The rate of any in19 terest collected under this paragraph may not 

20 exceed 50 percent of the discount window pri21 mary credit interest rate most recently pub22 lished on the Federal Reserve Statistical Re23 lease on selected interest rates (daily or week24 ly), commonly referred to as the H.15 release 

25 (commonly known as the ‘‘Federal funds rate’’). 


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1 (4) STATEMENTS.—Each eligible custodial enti2 ty designated by the Secretary shall submit to the 

3 Secretary monthly statements that include the total 

4 amount of funds deposited with, and interest rate 

5 received from, each covered bank by the eligible cus6 todial entity on behalf of qualifying entities. 

7 (5) RECORDS.—The Secretary shall issue a 

8 quarterly report to Congress and make publicly 

9 available a record identifying all covered banks par10 ticipating in the Program and amounts deposited 

11 under the Program in covered banks. 

12 (d) REQUIREMENTS RELATING TO DEPOSITS.—De13 posits made with covered banks under this section may 

14 not— 

15 (1) be considered by the Corporation to be 

16 funds obtained, directly or indirectly, by or through 

17 any deposit broker for deposit into 1 or more deposit 

18 accounts (as described under section 29 of the Fed19 eral Deposit Insurance Act (12 U.S.C. 1831f)); or 

20 (2) be subject to insurance fees from the Cor21 poration that are greater than insurance fees for 

22 typical demand deposits not obtained, directly or in23 directly, by or through any deposit broker (com24 monly known as ‘‘core deposits’’). 

25 (e) MODIFICATIONS.— 


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1 (1) IN GENERAL.—The Secretary shall provide 

2 a 3-month period for public notice and comment be3 fore making any material change to the operation of 

4 the Program. 

5 (2) EXCEPTION.—The requirements of para6 graph (1) shall not apply if the Secretary makes a 

7 material change to the Program to comply with safe8 ty and soundness standards or other law. 

9 (f) TERMINATION.— 

10 (1) BY COVERED BANK.—A covered bank se11 lected for participation in the Program pursuant to 

12 subsection (c) may terminate participation in the 

13 Program by providing the Secretary a notification 

14 60 days prior to termination. 

15 (2) BY SECRETARY.—The Secretary may termi16 nate the participation of a covered bank in the Pro17 gram if the Secretary determines the covered bank— 

18 (A) violated any terms of participation in 

19 the Program; 

20 (B) failed to comply with Federal bank se21 crecy laws, as documented in writing by the pri22 mary regulator of the covered bank; 

23 (C) failed to remain well capitalized; or 


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•S 4255 IS

1 (D) failed comply with safety and sound2 ness standards, as documented in writing by 

3 the primary regulator of the covered bank. 

4 (g) DEFINITIONS.—In this section: 

5 (1) CORPORATION.—The term ‘‘Corporation’’ 

6 means the Federal Deposit Insurance Corporation. 

7 (2) COVERED BANK.—The term ‘‘covered bank’’ 

8 means a minority depository institution that is regu9 lated by the Corporation or the National Credit 

10 Union Administration that is well capitalized (as de11 fined in section 38(b) of the Federal Deposit Insur12 ance Act (12 U.S.C. 1831o(b))). 

13 (3) ELIGIBLE CUSTODIAL ENTITY.—The term 

14 ‘‘eligible custodial entity’’ means— 

15 (A) an insured depository institution (as 

16 defined in section 3 of the Federal Deposit In17 surance Act (12 U.S.C. 1813)); 

18 (B) an insured credit union (as defined in 

19 section 101 of the Federal Credit Union Act 

20 (12 U.S.C. 1752)); or 

21 (C) a well capitalized State-chartered trust 

22 company, 

23 designated by the Secretary under subsection (c)(1). 

24 (4) FEDERAL BANK SECRECY LAWS.—The term 

25 ‘‘Federal bank secrecy laws’’ means— 


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1 (A) section 21 of the Federal Deposit In2 surance Act (12 U.S.C. 1829b); 

3 (B) section 123 of Public Law 91–508; 

4 and 

5 (C) subchapter II of chapter 53 of title 31, 

6 United States Code. 

7 (5) QUALIFYING ACCOUNT.—The term ‘‘quali8 fying account’’ means any account established in the 

9 Department of the Treasury that— 

10 (A) is controlled by the Secretary; and 

11 (B) is expected to maintain a balance 

12 greater than $200,000,000 for the following 

13 calendar month. 

14 (6) SECRETARY.—The term ‘‘Secretary’’ means 

15 the Secretary of the Treasury. 

16 (7) WELL CAPITALIZED.—The term ‘‘well cap17 italized’’ has the meaning given in section 38 of the 

18 Federal Deposit Insurance Act (12 U.S.C. 1831o). 

19 SEC. 11. ESTABLISHMENT OF FINANCIAL AGENT PARTNER20 SHIP PROGRAM. 

21 (a) IN GENERAL.—Section 308 of the Financial In22 stitutions Reform, Recovery, and Enforcement Act of 

23 1989 (12 U.S.C. 1463 note) is amended by adding at the 

24 end the following: 

25 ‘‘(d) FINANCIAL AGENT PARTNERSHIP PROGRAM.— 


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1 ‘‘(1) DEFINITIONS.—In this subsection: 

2 ‘‘(A) FINANCIAL AGENT.—The term ‘fi3 nancial agent’ means any national banking as4 sociation designated by the Secretary to be em5 ployed as a financial agent of the Government. 

6 ‘‘(B) LARGE FINANCIAL INSTITUTION.— 

7 The term ‘large financial institution’ means any 

8 entity regulated by the Comptroller of the Cur9 rency, the Board of Governors of the Federal 

10 Reserve System, the Federal Deposit Insurance 

11 Corporation, or the National Credit Union Ad12 ministration that has total consolidated assets 

13 of not less than $50,000,000,000. 

14 ‘‘(C) SMALL COMMUNITY FINANCIAL INSTI15 TUTION.—The term ‘small community financial 

16 institution’ means any financial institution 

17 that— 

18 ‘‘(i) has total consolidated assets of 

19 less than $3,000,000,000; 

20 ‘‘(ii) is an entity regulated by the 

21 Comptroller of the Currency, the Board of 

22 Governors of the Federal Reserve System, 

23 the Federal Deposit Insurance Corpora24 tion, or the National Credit Union Admin25 istration; and 


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1 ‘‘(iii) is— 

2 ‘‘(I) a community development fi3 nancial institution, as defined in sec4 tion 103 of the Riegle Community De5 velopment and Regulatory Improve6 ment Act of 1994 (12 U.S.C. 4702); 

7 or 

8 ‘‘(II) a minority depository insti9 tution, as defined in subsection (b). 

10 ‘‘(D) PROGRAM.—The term ‘Program’ 

11 means the Financial Agent Partnership Pro12 gram established under paragraph (2). 

13 ‘‘(E) SECRETARY.—The term ‘Secretary’ 

14 means the Secretary of the Treasury. 

15 ‘‘(2) ESTABLISHMENT.—The Secretary shall es16 tablish a program to be known as the Financial 

17 Agent Partnership Program under which a financial 

18 agent designated by the Secretary or a large finan19 cial institution may serve as a partner, under guid20 ance or regulations prescribed by the Secretary, and 

21 at the request of a small community financial insti22 tution, to allow the small community financial insti23 tution— 

24 ‘‘(A) to be prepared to perform as a finan25 cial agent; 


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1 ‘‘(B) to improve capacity to provide serv2 ices to the customers of the institution; and 

3 ‘‘(C) to participate in contracts awarded by 

4 the Secretary under the National Bank Acts of 

5 1863 and 1864. 

6 ‘‘(3) FINANCIAL PARTNERSHIPS.— 

7 ‘‘(A) IN GENERAL.—Any large financial in8 stitution participating in a program with the 

9 Treasury, if not already required to include a 

10 small community financial institution, shall 

11 offer not more than 5 percent of every contract 

12 under that program to a small community fi13 nancial institution. 

14 ‘‘(B) ACCEPTANCE OF RISK.—As a re15 quirement of participation in any financial ar16 rangement under the Program, a small commu17 nity financial institution shall accept the risk of 

18 the transaction equivalent to the percentage of 

19 any fee the institution receives under the Pro20 gram. 

21 ‘‘(C) PARTNER.—A large financial institu22 tion partner may work with small community fi23 nancial institutions, if necessary, to train pro24 fessionals to understand any risks involved in a 

25 contract under the Program. 


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1 ‘‘(4) OUTREACH.—The Secretary shall— 

2 ‘‘(A) issue guidance or regulations to es3 tablish a process under which a financial agent, 

4 large financial institution, or small community 

5 financial institution may participate in the Pro6 gram; and 

7 ‘‘(B) not less frequently than once per 

8 year, hold outreach events to promote the par9 ticipation of financial agents, large financial in10 stitutions, and small community financial insti11 tutions in the Program. 

12 ‘‘(5) REPORT.—The Office of Minority and 

13 Women Inclusion of the Department of the Treasury 

14 shall include in the report submitted to Congress 

15 under section 342(e) of the Dodd-Frank Wall Street 

16 Reform and Consumer Protection Act (12 U.S.C. 

17 5452(e)) information pertaining to the Program, in18 cluding— 

19 ‘‘(A) the number of financial agents, large 

20 financial institutions, and small community fi21 nancial institutions participating in the Pro22 gram; and 

23 ‘‘(B) the number of contracts awarded by 

24 the Secretary where a small community finan25 cial institution participated in a financial agent 


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•S 4255 IS

1 agreement awarded to a large financial institu2 tion; and 

3 ‘‘(C) the number of outreach events de4 scribed in paragraph (4) held during the year 

5 covered by such report.’’. 

6 (b) EFFECTIVE DATE.—This section and the amend7 ments made by this section shall take effect 90 days after 

8 the date of the enactment of this Act. 

9 SEC. 12. APPLICATION OF CARES ACT TO LOW- AND MOD10 ERATE-INCOME COMMUNITY FINANCIAL IN11 STITUTIONS. 

12 Title IV of the CARES Act (Public Law 116–136) 

13 is amended— 

14 (1) in section 4012(b)— 

15 (A) in paragraph (2), by striking ‘‘The in16 terim’’ and inserting ‘‘Except as provided in 

17 paragraph (3), the interim’’; and 

18 (B) by adding at the end the following: 

19 ‘‘(3) EXCEPTION FOR LOW- AND MODERATE-IN20 COME COMMUNITY FINANCIAL INSTITUTIONS.—Not21 withstanding paragraph (2), with respect to a quali22 fying community bank that is a low- and moderate23 income community financial institution, the interim 

24 rule issued under paragraph (1) shall be effective 

25 during the period beginning on the date on which 


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•S 4255 IS

1 the appropriate Federal banking agencies issue the 

2 rule and ending on December 31, 2022.’’; and 

3 (2) in section 4013(a)(1)— 

4 (A) by striking ‘‘means the period’’ and in5 serting ‘‘means— 

6 ‘‘(A) except as provided in subparagraph 

7 (B), the period’’; 

8 (B) in subparagraph (A), as so designated, 

9 by striking the period at the end and inserting 

10 ‘‘; and’’; and 

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

12 ‘‘(B) with respect to a low- and moderate13 income community financial institution, the pe14 riod beginning on March 1, 2020, and ending 

15 on December 31, 2022.’’. 

16 SEC. 13. SUBMISSION OF DATA RELATING TO DIVERSITY BY 

17 COMMUNITY DEVELOPMENT FINANCIAL IN18 STITUTIONS. 

19 Section 104 of the Riegle Community Development 

20 and Regulatory Improvement Act of 1994 (12 U.S.C. 

21 4703) is amended by adding at the end the following: 

22 ‘‘(l) SUBMISSION OF DATA RELATING TO DIVER23 SITY.— 

24 ‘‘(1) DEFINITIONS.—In this subsection— 


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1 ‘‘(A) the term ‘executive officer’ has the 

2 meaning given the term in section 230.501(f) of 

3 title 17, Code of Federal Regulations, as in ef4 fect on the date of enactment of this subsection; 

5 and 

6 ‘‘(B) the term ‘veteran’ has the meaning 

7 given the term in section 101 of title 38, United 

8 States Code. 

9 ‘‘(2) SUBMISSION OF DISCLOSURE.—Each Fund 

10 applicant and recipient shall provide the following: 

11 ‘‘(A) Data, based on voluntary self-identi12 fication, on the racial, ethnic, and gender com13 position of— 

14 ‘‘(i) the board of directors of the insti15 tution; 

16 ‘‘(ii) nominees for the board of direc17 tors of the institution; and 

18 ‘‘(iii) the executive officers of the in19 stitution. 

20 ‘‘(B) The status of any member of the 

21 board of directors of the institution, any nomi22 nee for the board of directors of the institution, 

23 or any executive officer of the institution, based 

24 on voluntary self-identification, as a veteran. 


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•S 4255 IS

1 ‘‘(C) Whether the board of directors of the 

2 institution, or any committee of that board of 

3 directors, has, as of the date on which the insti4 tution makes a disclosure under this paragraph, 

5 adopted any policy, plan, or strategy to promote 

6 racial, ethnic, and gender diversity among— 

7 ‘‘(i) the board of directors of the insti8 tution; 

9 ‘‘(ii) nominees for the board of direc10 tors of the institution; or 

11 ‘‘(iii) the executive officers of the in12 stitution. 

13 ‘‘(3) ANNUAL REPORT.—Not later than 18 

14 months after the date of enactment of this sub15 section, and annually thereafter, the Fund shall sub16 mit to the Committee on Banking, Housing, and 

17 Urban Affairs of the Senate and the Committee on 

18 Financial Services of the House of Representatives, 

19 and make publicly available on the website of the 

20 Fund, a report on the data and trends of the diver21 sity information made available pursuant to para22 graph (2).’’. 

23 SEC. 14. REPORTS. 

24 The Secretary shall provide to the appropriate com25 mittees of Congress— 


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1 (1) within 30 days of the end of each month 

2 commencing with the first month in which trans3 actions are made under a program established under 

4 this Act or the amendments made by this Act, a 

5 written report describing all of the transactions 

6 made during the reporting period pursuant to the 

7 authorities granted under this Act or the amend8 ments made by this Act; and 

9 (2) after the end of March and the end of Sep10 tember, commencing September 30, 2021, a written 

11 report on all projected costs and liabilities, all oper12 ating expenses, including compensation for financial 

13 agents, and all transactions made by the Community 

14 Development Financial Institutions Fund, which 

15 shall include participating institutions and amounts 

16 each institution has received under each program de17 scribed in paragraph (1). 

18 SEC. 15. INSPECTOR GENERAL OVERSIGHT. 

19 (a) IN GENERAL.—The Inspector General of the De20 partment of the Treasury shall conduct, supervise, and co21 ordinate audits and investigations of any program estab22 lished under this Act or the amendments made by this 

23 Act. 

24 (b) REPORTING.—The Inspector General of the De25 partment of the Treasury shall issue a report not less freVerDate Sep 11 2014 21:48 Aug 08, 2020 Jkt 099200 PO 00000 Frm 00049 Fmt 6652 Sfmt 6201 E:\BILLS\S4255.IS S4255

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1 quently than 2 times per year to Congress and the Sec2 retary of the Treasury relating to the oversight provided 

3 by the Office of the Inspector General, including any rec4 ommendations for improvements to the programs de5 scribed in subsection (a). 

6 SEC. 16. STUDY AND REPORT WITH RESPECT TO IMPACT 

7 OF PROGRAMS ON LOW- AND MODERATE-IN8 COME AND MINORITY COMMUNITIES. 

9 (a) STUDY.—The Secretary of the Treasury shall 

10 conduct a study of the impact of the programs established 

11 under this Act or any amendment made by this Act on 

12 low- and moderate-income and minority communities. 

13 (b) REPORT.—Not later than 18 months after the 

14 date of enactment of this Act, the Secretary shall submit 

15 to Congress a report on the results of the study conducted 

16 pursuant to subsection (a), which shall include, to the ex17 tent possible, the results of the study disaggregated by 

18 ethnic group. 

19 (c) INFORMATION PROVIDED TO THE SECRETARY.— 

20 Eligible institutions that participate in any of the pro21 grams described in subsection (a) shall provide the Sec22 retary of the Treasury with such information as the Sec23 retary may require to carry out the study required by this 

24 section. 

Æ 


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