I 

116TH CONGRESS 

2D SESSION H. R. 7993 

To support the efforts of Community Development Financial Institutions 

(CDFIs), minority CDFIs, and minority depository institutions to serve 

consumers, small businesses, and minority-owned businesses, especially 

in low-income and underserved communities, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

AUGUST 7, 2020 

Ms. WATERS (for herself, Mr. CLAY, Mr. GREEN of Texas, Mr. GONZALEZ of 

Texas, Mr. LAWSON of Florida, Ms. PRESSLEY, Ms. TLAIB, Ms. ADAMS, 

Mr. PHILLIPS, Ms. GARCIA of Texas, Mr. CLEAVER, Mrs. BEATTY, Mr. 

GARCI ́A of Illinois, Mr. DAVID SCOTT of Georgia, Mr. GOTTHEIMER, and 

Mr. MEEKS) introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the Committee on Small 

Business, for a period to be subsequently determined by the Speaker, in 

each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To support the efforts of Community Development Financial 

Institutions (CDFIs), minority CDFIs, and minority depository institutions to serve consumers, small businesses, and minority-owned businesses, especially in lowincome and underserved communities, 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 ‘‘Promoting and Advancing Communities of Color through 

4 Inclusive Lending Act’’. 

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

6 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Findings; sense of Congress. 

Sec. 3. Strengthening minority community development financial institutions. 

Sec. 4. Community Development Financial Institutions Fund. 

Sec. 5. Minimum issuance amounts under the CDFI Bond Guarantee Program. 

Sec. 6. Community Capital Investment Program. 

Sec. 7. Ensuring Diversity in Community Banking. 

Sec. 8. Establishment of Financial Agent Mentor-Prote ́ge ́ Program. 

Sec. 9. Study and report with respect to impact of programs on low- and moderate-income and minority communities. 

7 SEC. 2. FINDINGS; SENSE OF CONGRESS. 

8 (a) FINDINGS.—The Congress finds the following: 

9 (1) The Coronavirus 2019 (COVID–19) pan10 demic and the resulting recession have led to more 

11 than 4.8 million cases and at least 157,000 deaths 

12 in the United States as of August 6, 2020; a 7.6 

13 percent increase in the unemployment rate from 

14 February to June, or approximately 12 million more 

15 persons who have lost their job; and an estimated 36 

16 percent of renters and 4.1 million homeowners who 

17 are struggling to pay their rent and mortgages. 

18 (2) According to the Centers for Disease Con19 trol, ‘‘long-standing systemic health and social in20 equities have put some members of racial and ethnic 


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1 minority groups at increased risk of getting COVID– 

2 19 or experiencing severe illness’’. 

3 (3) Minority-owned businesses are also facing 

4 more difficult economic circumstances than others as 

5 a result of the COVID–19 pandemic. In April 2020, 

6 the Federal Reserve Bank of New York reported 

7 that minority- and women-owned businesses were 

8 not only more likely to show signs of limited finan9 cial health, but also twice as likely to be classified 

10 as ‘‘at risk’’ or ‘‘distressed’’ than their non-minority 

11 counterparts. 

12 (4) During the Coronavirus 2019 (COVID–19) 

13 pandemic, community development financial institu14 tions (CDFIs) and minority depository institutions 

15 (MDIs) have delivered needed capital and relief to 

16 underserved communities, many of which have borne 

17 a disproportionate impact of the COVID–19 pan18 demic. Through July 31, 2020, CDFIs and MDIs 

19 have provided more than $16.2 billion in Paycheck 

20 Protection Program (PPP) loans to small businesses 

21 with a smaller median loan size of about $75,000 

22 compared to the overall program median loan size of 

23 $103,000. 

24 (5) In addition to establishing relief funds and 

25 services for local businesses and individuals experiVerDate Sep 11 2014 02:11 Sep 04, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H7993.IH H7993

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1 encing loss of income, CDFIs and MDIs have pro2 vided mortgage forbearances, loan deferments, and 

3 modifications to help address the needs of their bor4 rowers. CDFIs and MDIs are reaching underserved 

5 communities and minority-owned businesses at a 

6 critical time. 

7 (6) The Community Development Financial In8 stitutions Fund (CDFI Fund) is an agency of the 

9 U.S. Department of the Treasury and was estab10 lished by the Riegle Community Development and 

11 Regulatory Improvement Act of 1994. The mission 

12 of the CDFI Fund is ‘‘to expand economic oppor13 tunity for underserved people and communities by 

14 supporting the growth and capacity of a national 

15 network of community development lenders, inves16 tors, and financial service providers’’. As of July 13, 

17 2020, there were 1,129 certified CDFIs in all 50 

18 States, District of Columbia, Guam, and Puerto 

19 Rico. 

20 (7) Following the 2008 financial crisis and the 

21 disproportionate impact the Great Recession had on 

22 minority communities, the number of MDI banks fell 

23 more than 30 percent over the following decade, to 

24 143 as of the first quarter of 2020. Meanwhile, MDI 

25 credit unions have seen similar declines, with more 


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1 than one-third of such institutions disappearing 

2 since 2013. 

3 (8) The Committee on Financial Services of the 

4 House of Representatives has examined the impor5 tance of CDFIs and MDIs through three hearings 

6 held during the 116th Congress. At these hearings, 

7 the Committee received testimony from 13 witnesses, 

8 most of whom were representatives of CDFIs or 

9 MDIs, and four of whom were Federal regulators. 

10 These hearings include: 

11 (A) October 22, 2019, ‘‘An Examination of 

12 the Decline of Minority Depository Institutions 

13 and the Impact on Underserved Communities’’. 

14 (B) November 20, 2019, ‘‘An Examination 

15 of Regulators’ Efforts to Preserve and Promote 

16 Minority Depository Institutions’’. 

17 (C) June 3, 2020, Virtual Hearing—‘‘Pro18 moting Inclusive Lending During the Pandemic: 

19 Community Development Financial Institutions 

20 and Minority Depository Institutions’’. 

21 At these hearings, the Committee discussed the op22 portunities and challenges facing CDFIs and MDIs. 

23 The Committee discussed 9 different pieces of legis24 lation to address some of these challenges and fully 

25 support the work of MDIs and CDFIs. 


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1 (b) SENSE OF CONGRESS.—The following is the sense 

2 of the Congress: 

3 (1) The Department of the Treasury, Board of 

4 Governors of the Federal Reserve System, Small 

5 Business Administration (SBA), Office of the Comp6 troller of the Currency, Federal Deposit Insurance 

7 Corporation, National Credit Union Administration, 

8 and other Federal agencies should take steps to sup9 port, engage with, and utilize minority depository in10 stitutions and community development financial in11 stitutions in the near term, especially as they carry 

12 out programs to respond to the COVID–19 pan13 demic, and the long term. 

14 (2) The Department of the Treasury and pru15 dential regulators should establish a strategic plan 

16 identifying concrete steps that they can take to sup17 port existing minority depository institutions, as well 

18 as the formation of new minority depository institu19 tions consistent with the goals established in the Fi20 nancial Institutions Reform, Recovery, and Enforce21 ment Act of 1989 (FIRREA) to preserve and pro22 mote minority depository institutions. 

23 (3) Congress should increase funding and make 

24 other enhancements, including those provided by this 

25 legislation, to enhance the effectiveness of the CDFI 


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1 Fund, especially reforms to support minority-owned 

2 and minority led CDFIs in times of crisis and be3 yond. 

4 (4) Congress should conduct robust and ongo5 ing oversight of the Department of the Treasury, 

6 CDFI Fund, Federal prudential regulators, SBA, 

7 and other Federal agencies to ensure they fulfill 

8 their obligations under the law as well as implement 

9 this Act and other laws in a manner that supports 

10 and fully utilizes minority depository institutions 

11 and community development financial intuitions, as 

12 appropriate. 

13 SEC. 3. STRENGTHENING MINORITY COMMUNITY DEVELOP14 MENT FINANCIAL INSTITUTIONS. 

15 (a) MINORITY COMMUNITY DEVELOPMENT FINAN16 CIAL INSTITUTION SET-ASIDE IN PROVIDING ASSIST17 ANCE.— 

18 (1) IN GENERAL.—Section 108 of the Commu19 nity Development Banking and Financial Institu20 tions Act of 1994 (12 U.S.C. 4707) is amended by 

21 adding at the end the following: 

22 ‘‘(i) MINORITY COMMUNITY DEVELOPMENT FINAN23 CIAL INSTITUTION SET-ASIDE IN PROVIDING ASSIST24 ANCE.—Notwithstanding any other provision of law, in 

25 providing any assistance, the Fund shall reserve 40 perVerDate Sep 11 2014 02:11 Sep 04, 2020 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H7993.IH H7993

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1 cent of such assistance for minority community develop2 ment financial institutions.’’. 

3 (2) DEFINITIONS.—Section 103 of the Commu4 nity Development Banking and Financial Institu5 tions Act of 1994 (12 U.S.C. 4702) is amended by 

6 adding at the end the following: 

7 ‘‘(22) MINORITY COMMUNITY DEVELOPMENT

8 FINANCIAL INSTITUTION DEFINITIONS.— 

9 ‘‘(A) MINORITY.—The term ‘minority’ 

10 means any Black American, Native American, 

11 Hispanic American, or Asian American. 

12 ‘‘(B) MINORITY COMMUNITY DEVELOP13 MENT FINANCIAL INSTITUTION.—The term ‘mi14 nority community development financial institu15 tion’ means a community development financial 

16 institution that— 

17 ‘‘(i) if a privately owned institution, 

18 51 percent is owned by one or more so19 cially and economically disadvantaged indi20 viduals; 

21 ‘‘(ii) if publicly owned, 51 percent of 

22 the stock is owned by one or more socially 

23 and economically disadvantaged individ24 uals; 


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1 ‘‘(iii) in the case of a mutual institu2 tion, where the majority of the Board of 

3 Directors, account holders, and the com4 munity which the institution services is 

5 predominantly minority; and 

6 ‘‘(iv) in the case of any other institu7 tion, is a minority-owned or minority-led 

8 institution, as determined by the Adminis9 trator.’’. 

10 (b) OFFICE OF MINORITY COMMUNITY DEVELOP11 MENT FINANCIAL INSTITUTIONS.—Section 104 of the 

12 Community Development Banking and Financial Institu13 tions Act of 1994 (12 U.S.C. 4703) is amended by adding 

14 at the end the following: 

15 ‘‘(l) OFFICE OF MINORITY COMMUNITY DEVELOP16 MENT FINANCIAL INSTITUTIONS.— 

17 ‘‘(1) ESTABLISHMENT.—There is established 

18 within the Fund an Office of Minority Community 

19 Development Financial Institutions, which shall 

20 oversee assistance provided by the Fund to minority 

21 community development financial institutions. 

22 ‘‘(2) DEPUTY DIRECTOR.—The head of the Of23 fice shall be the Deputy Director of Minority Com24 munity Development Financial Institutions, who 


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1 shall report directly to the Administrator of the 

2 Fund.’’. 

3 (c) REPORTING ON MINORITY COMMUNITY DEVEL4 OPMENT FINANCIAL INSTITUTIONS.—Section 117 of the 

5 Community Development Banking and Financial Institu6 tions Act of 1994 (12 U.S.C. 4716) is amended by adding 

7 at the end the following: 

8 ‘‘(g) REPORTING ON MINORITY COMMUNITY DEVEL9 OPMENT FINANCIAL INSTITUTIONS.—Each report re10 quired under subsection (a) shall include a description of 

11 the extent to which assistance from the Fund are provided 

12 to minority community development financial institu13 tions.’’. 

14 SEC. 4. COMMUNITY DEVELOPMENT FINANCIAL INSTITU15 TIONS FUND. 

16 (a) IN GENERAL.—Of any unobligated amounts that 

17 were appropriated to the fund established under section 

18 5302(a)(1) of title 31, United States Code, by section 

19 4027 of the CARES Act (15 U.S.C. 9061), 

20 $5,000,000,000 shall be transferred to the Community 

21 Development Financial Institutions Fund for fiscal years 

22 2020 and 2021, for providing financial assistance and 

23 technical assistance under subparagraphs (A) and (B) of 

24 section 108(a)(1) of the Community Development Bank25 ing and Financial Institutions Act of 1994 (12 U.S.C. 


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1 4707(a)(1)), except that subsections (d) and (e) of such 

2 section 108 shall not apply to the provision of such assist3 ance, for the Bank Enterprise Award program, and for 

4 financial assistance, technical assistance, training, and 

5 outreach programs designed to benefit Native American, 

6 Native Hawaiian, and Alaska Native communities and 

7 provided primarily through qualified community develop8 ment lender organizations with experience and expertise 

9 in community development banking and lending in Indian 

10 country, Native American organizations, Tribes and Trib11 al organizations, and other suitable providers. Of such 

12 amount, not less than $2,000,000,000 shall be for pro13 viding financial assistance, technical assistance, awards, 

14 training, and outreach programs described above to recipi15 ents that are minority lending institutions. 

16 (b) DEFINITIONS.—For purposes of this section: 

17 (1) MINORITY LENDING INSTITUTION.—The 

18 term ‘‘minority lending institution’’ means any de19 pository institution, loan fund, or other financial in20 stitution that— 

21 (A) if a privately owned institution, 51 

22 percent is owned by one or more socially and 

23 economically disadvantaged individuals; 


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1 (B) if publicly owned, 51 percent of the 

2 stock is owned by one or more socially and eco3 nomically disadvantaged individuals; 

4 (C) in the case of a mutual institution, 

5 where the majority of the Board of Directors, 

6 account holders, and the community which it 

7 services is predominantly minority; and 

8 (D) in the case of any other institution, is 

9 a minority-owned or minority-led institution, as 

10 determined by the Administrator of the Com11 munity Development Financial Institutions 

12 Fund. 

13 (2) MINORITY.—The term ‘‘minority’’ means 

14 any Black American, Native American, Hispanic 

15 American, or Asian American. 

16 SEC. 5. MINIMUM ISSUANCE AMOUNTS UNDER THE CDFI 

17 BOND GUARANTEE PROGRAM. 

18 (a) REDUCTION FOR FISCAL YEAR 2020.— 

19 (1) IN GENERAL.—Section 114A(e)(2)(B) of 

20 the Riegle Community Development and Regulatory 

21 Improvement Act of 1994 (12 U.S.C. 

22 4713a(e)(2)(B)) is amended by striking 

23 ‘‘$100,000,000’’ and inserting ‘‘$25,000,000’’. 

24 (2) RULE OF APPLICATION.—The Notice of 

25 Guarantee Availability issued for the Bond GuarVerDate Sep 11 2014 02:11 Sep 04, 2020 Jkt 099200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H7993.IH H7993

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1 antee Program in fiscal year 2019 (CFDA 21.011) 

2 shall apply for purposes of carrying out the Program 

3 (as defined under section 114A(a) of the Riegle 

4 Community Development and Regulatory Improve5 ment Act of 1994) with regard to commitments to 

6 guarantee bonds and notes during fiscal year 2020. 

7 (b) PERMANENT ADJUSTMENT.—Effective October 

8 1, 2020, section 114A(e)(2)(B) of the Riegle Community 

9 Development and Regulatory Improvement Act of 1994 

10 (12 U.S.C. 4713a(e)(2)(B)) is amended by striking 

11 ‘‘$25,000,000’’ and inserting ‘‘$50,000,000’’. 

12 SEC. 6. COMMUNITY CAPITAL INVESTMENT PROGRAM. 

13 Section 4003 of the CARES Act (15 U.S.C. 9042) 

14 is amended by adding at the end the following: 

15 ‘‘(i) COMMUNITY CAPITAL INVESTMENT PROGRAM.— 

16 ‘‘(1) IN GENERAL.—The Secretary of the 

17 Treasury shall establish a Community Capital In18 vestment Program (the ‘Program’) to support the ef19 forts of community investment institutions to pro20 vide loans and forbearance for small businesses, mi21 nority-owned businesses, and consumers, especially 

22 in low-income and underserved communities, by— 

23 ‘‘(A) providing direct capital investments 

24 in community investment institutions; and 


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1 ‘‘(B) providing loans to community invest2 ment institutions— 

3 ‘‘(i) that are interest-free loans; 

4 ‘‘(ii) that have a loan term of 5 years; 

5 and 

6 ‘‘(iii) with respect to which no loan 

7 payment is required until at least the end 

8 of the 6-month period beginning on the 

9 date the loan is made, or such longer term 

10 as the Secretary may determine appro11 priate. 

12 ‘‘(2) APPLICATION DATE.—The Secretary shall 

13 begin accepting applications for capital investments 

14 and loans under the Program not later than the end 

15 of the 10-day period beginning on the date of enact16 ment of this subsection. 

17 ‘‘(3) COMMUNITY INVESTMENT PLAN.—At the 

18 time that an applicant submits an application to the 

19 Secretary for a capital investment under the Pro20 gram, the applicant shall— 

21 ‘‘(A) provide the Secretary with a Commu22 nity Investment Plan that specifies how the ap23 plicant intends to use the capital investment or 

24 loans made available under the Program to pro25 vide loans and forbearance for small businesses, 


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1 minority-owned businesses, and consumers, es2 pecially in low-income and underserved commu3 nities; and 

4 ‘‘(B) include with such application an at5 testation by the applicant that the applicant— 

6 ‘‘(i) does not own, service, or offer 

7 any financial product at an annual per8 centage rate of more than 36 percent in9 terest, as defined in section 987(i)(4) of 

10 title 10, United States Code; and 

11 ‘‘(ii) is compliant with all State inter12 est rate laws. 

13 ‘‘(4) DIVIDEND RATE.—Any preferred stock or 

14 other financial instrument issued to the Secretary in 

15 exchange for a capital investment under the Pro16 gram shall carry a dividend or interest rate that 

17 does not exceed 1 percent. 

18 ‘‘(5) RESTRICTIONS.—The restrictions de19 scribed under subsection (c)(3)(A)(ii) shall apply to 

20 capital investments and loans made under this sub21 section. 

22 ‘‘(6) AVAILABLE AMOUNTS.—In carrying out 

23 the Program, the Secretary shall use amounts made 

24 available under subsection (b), notwithstanding the 


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1 limitations on the use of such funds under para2 graphs (1) through (4) of such subsection (b). 

3 ‘‘(7) MDI SET-ASIDE.—At least $3,000,000,000 

4 of the direct capital investments and loans made by 

5 the Secretary under the Program shall be made to 

6 minority depository institutions. 

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

8 In making any capital investment under the Pro9 gram, the Secretary shall ensure that the terms of 

10 the investment are designed to ensure the invest11 ment receives Tier 1 capital treatment. 

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

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

14 et seq.)— 

15 ‘‘(A) a community investment institution 

16 may collect data described in section 701(a)(1) 

17 of that Act (15 U.S.C. 1691(a)(1)) from bor18 rowers and applicants for credit for the purpose 

19 of monitoring compliance under the Community 

20 Investment Plan required under paragraph (3); 

21 and 

22 ‘‘(B) a community investment institution 

23 that collects the data described in subparagraph 

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1 sumer Financial Protection or any other Fed2 eral agency. 

3 ‘‘(10) DEFINITIONS.—In this subsection, sub4 section (j), and subsection (k): 

5 ‘‘(A) COMMUNITY INVESTMENT INSTITU6 TION.—The term ‘community investment insti7 tution’ means— 

8 ‘‘(i) a community development finan9 cial institution, as defined under section 

10 103 of the Riegle Community Development 

11 and Regulatory Improvement Act of 1994 

12 (12 U.S.C. 4702); 

13 ‘‘(ii) an impact credit union; 

14 ‘‘(iii) an impact bank; and 

15 ‘‘(iv) a minority depository institution, 

16 as defined under section 308 of the Finan17 cial Institutions Reform, Recovery, and 

18 Enforcement Act of 1989 (12 U.S.C. 1463 

19 note). 

20 ‘‘(B) CREDIT UNION.—The term ‘credit 

21 union’ has the meaning given the terms State 

22 credit union and Federal credit union under 

23 section 101 of the Federal Credit Union Act 

24 (12 U.S.C. 1752). 


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1 ‘‘(C) IMPACT CREDIT UNION.—The term 

2 ‘impact credit union’ means a credit union 

3 that— 

4 ‘‘(i) has total consolidated assets of 

5 less than $10,000,000,000; and 

6 ‘‘(ii) extends at least 50 percent of the 

7 loans extended by the credit union to bor8 rowers who are low-income borrowers, as 

9 determined by the Secretary. 

10 ‘‘(D) IMPACT BANK.—The term ‘impact 

11 bank’ means a depository institution (as defined 

12 under section 3 of the Federal Deposit Insur13 ance Act) that— 

14 ‘‘(i) has total consolidated assets of 

15 less than $10,000,000,000; and 

16 ‘‘(ii) extends at least 50 percent of the 

17 loans extended by the institution to bor18 rowers who are low-income borrowers, as 

19 determined by the Secretary. 

20 ‘‘(j) APPLICATION OF THE MILITARY LENDING

21 ACT.— 

22 ‘‘(1) IN GENERAL.—No community investment 

23 institution that receives an equity investment under 

24 subsection (i) shall, for so long as the investment 

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1 age rate above 36 percent, as determined in accord2 ance with section 987(b) of title 10, United States 

3 Code (commonly known as the ‘Military Lending 

4 Act)’. 

5 ‘‘(2) NO EXEMPTIONS PERMITTED.—The ex6 emption authority of the Bureau under section 

7 105(f) of the Truth in Lending Act (15 U.S.C. 

8 1604(f)) shall not apply with respect to this sub9 section.’’. 

10 SEC. 7. ENSURING DIVERSITY IN COMMUNITY BANKING. 

11 (a) SENSE OF CONGRESS ON FUNDING THE LOAN12 LOSS RESERVE FUND FOR SMALL DOLLAR LOANS.—The 

13 sense of Congress is the following: 

14 (1) The Community Development Financial In15 stitutions Fund (the ‘‘CDFI Fund’’) is an agency of 

16 the Department of the Treasury, and was estab17 lished by the Riegle Community Development and 

18 Regulatory Improvement Act of 1994. The mission 

19 of the CDFI Fund is ‘‘to expand economic oppor20 tunity for underserved people and communities by 

21 supporting the growth and capacity of a national 

22 network of community development lenders, inves23 tors, and financial service providers’’. A community 

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

25 specialized financial institution serving low-income 


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1 communities and a Community Development Entity 

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

3 that is an intermediary vehicle for the provision of 

4 loans, investments, or financial counseling in low-in5 come communities. The CDFI Fund certifies CDFIs 

6 and CDEs. Becoming a certified CDFI or CDE al7 lows organizations to participate in various CDFI 

8 Fund programs as follows: 

9 (A) The Bank Enterprise Award Program, 

10 which provides FDIC-insured depository institu11 tions awards for a demonstrated increase in 

12 lending and investments in distressed commu13 nities and CDFIs. 

14 (B) The CDFI Program, which provides 

15 Financial and Technical Assistance awards to 

16 CDFIs to reinvest in the CDFI, and to build 

17 the capacity of the CDFI, including financing 

18 product development and loan loss reserves. 

19 (C) The Native American CDFI Assistance 

20 Program, which provides CDFIs and spon21 soring entities Financial and Technical Assist22 ance awards to increase lending and grow the 

23 number of CDFIs owned by Native Americans 

24 to help build capacity of such CDFIs. 


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1 (D) The New Market Tax Credit Program, 

2 which provides tax credits for making equity in3 vestments in CDEs that stimulate capital in4 vestments in low-income communities. 

5 (E) The Capital Magnet Fund, which pro6 vides awards to CDFIs and nonprofit affordable 

7 housing organizations to finance affordable 

8 housing solutions and related economic develop9 ment activities. 

10 (F) The Bond Guarantee Program, a 

11 source of long-term, patient capital for CDFIs 

12 to expand lending and investment capacity for 

13 community and economic development purposes. 

14 (2) The Department of the Treasury is author15 ized to create multi-year grant programs designed to 

16 encourage low-to-moderate income individuals to es17 tablish accounts at federally insured banks, and to 

18 improve low-to-moderate income individuals’ access 

19 to such accounts on reasonable terms. 

20 (3) Under this authority, grants to participants 

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

22 reserves and to establish small-dollar loan programs 

23 by subsidizing related losses. These grants also allow 

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1 actions and manage their accounts. These loans pro2 vide low-cost alternatives to payday loans and other 

3 nontraditional forms of financing that often impose 

4 excessive interest rates and fees on borrowers, and 

5 lead millions of Americans to fall into debt traps. 

6 Small-dollar loans can only be made pursuant to 

7 terms, conditions, and practices that are reasonable 

8 for the individual consumer obtaining the loan. 

9 (4) Program participation is restricted to eligi10 ble institutions, which are limited to organizations 

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

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

13 Code, federally insured depository institutions, com14 munity development financial institutions and State, 

15 local, or Tribal government entities. 

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

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

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

19 $1,510,000,000 in bond guarantees. According to 

20 the CDFI Fund, some programs attract as much as 

21 $10 in private capital for every $1 invested by the 

22 CDFI Fund. The Administration and the Congress 

23 should prioritize appropriation of funds for the loan 

24 loss reserve fund and technical assistance programs 


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1 administered by the Community Development Finan2 cial Institution Fund. 

3 (b) DEFINITIONS.—In this section: 

4 (1) COMMUNITY DEVELOPMENT FINANCIAL IN5 STITUTION.—The term ‘‘community development fi6 nancial institution’’ has the meaning given under 

7 section 103 of the Riegle Community Development 

8 and Regulatory Improvement Act of 1994 (12 

9 U.S.C. 4702). 

10 (2) MINORITY DEPOSITORY INSTITUTION.—The 

11 term ‘‘minority depository institution’’ has the 

12 meaning given under section 308 of the Financial 

13 Institutions Reform, Recovery, and Enforcement Act 

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

15 Act. 

16 (c) ESTABLISHMENT OF IMPACT BANK DESIGNA17 TION.— 

18 (1) IN GENERAL.—Each Federal banking agen19 cy shall establish a program under which a deposi20 tory institution with total consolidated assets of less 

21 than $10,000,000,000 may elect to be designated as 

22 an impact bank if the total dollar value of the loans 

23 extended by such depository institution to low-in24 come borrowers is greater than or equal to 50 per25 cent of the assets of such bank. 


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1 (2) NOTIFICATION OF ELIGIBILITY.—Based on 

2 data obtained through examinations of depository in3 stitutions, the appropriate Federal banking agency 

4 shall notify a depository institution if the institution 

5 is eligible to be designated as an impact bank. 

6 (3) APPLICATION.—Regardless of whether or 

7 not it has received a notice of eligibility under para8 graph (1), a depository institution may submit an 

9 application to the appropriate Federal banking agen10 cy— 

11 (A) requesting to be designated as an im12 pact bank; and 

13 (B) demonstrating that the depository in14 stitution meets the applicable qualifications. 

15 (4) LIMITATION ON ADDITIONAL DATA RE16 QUIREMENTS.—The Federal banking agencies may 

17 only impose additional data collection requirements 

18 on a depository institution under this subsection if 

19 such data is— 

20 (A) necessary to process an application 

21 submitted by the depository institution to be 

22 designated an impact bank; or 

23 (B) with respect to a depository institution 

24 that is designated as an impact bank, necessary 


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1 to ensure the depository institution’s ongoing 

2 qualifications to maintain such designation. 

3 (5) REMOVAL OF DESIGNATION.—If the appro4 priate Federal banking agency determines that a de5 pository institution designated as an impact bank no 

6 longer meets the criteria for such designation, the 

7 appropriate Federal banking agency shall rescind 

8 the designation and notify the depository institution 

9 of such rescission. 

10 (6) RECONSIDERATION OF DESIGNATION; AP11 PEALS.—Under such procedures as the Federal 

12 banking agencies may establish, a depository institu13 tion may— 

14 (A) submit to the appropriate Federal 

15 banking agency a request to reconsider a deter16 mination that such depository institution no 

17 longer meets the criteria for the designation; or 

18 (B) file an appeal of such determination. 

19 (7) RULEMAKING.—Not later than 1 year after 

20 the date of the enactment of this Act, the Federal 

21 banking agencies shall jointly issue rules to carry 

22 out the requirements of this subsection, including by 

23 providing a definition of a low-income borrower. 

24 (8) REPORTS.—Each Federal banking agency 

25 shall submit an annual report to the Congress conVerDate Sep 11 2014 02:11 Sep 04, 2020 Jkt 099200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 E:\BILLS\H7993.IH H7993

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1 taining a description of actions taken to carry out 

2 this subsection. 

3 (9) FEDERAL DEPOSIT INSURANCE ACT DEFINI4 TIONS.—In this subsection, the terms ‘‘depository 

5 institution’’, ‘‘appropriate Federal banking agency’’, 

6 and ‘‘Federal banking agency’’ have the meanings 

7 given such terms, respectively, in section 3 of the 

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

9 (d) MINORITY DEPOSITORIES ADVISORY COMMIT10 TEES.— 

11 (1) ESTABLISHMENT.—Each covered regulator 

12 shall establish an advisory committee to be called the 

13 ‘‘Minority Depositories Advisory Committee’’. 

14 (2) DUTIES.—Each Minority Depositories Advi15 sory Committee shall provide advice to the respective 

16 covered regulator on meeting the goals established 

17 by section 308 of the Financial Institutions Reform, 

18 Recovery, and Enforcement Act of 1989 (12 U.S.C. 

19 1463 note) to preserve the present number of cov20 ered minority institutions, preserve the minority 

21 character of minority-owned institutions in cases in22 volving mergers or acquisitions, provide technical as23 sistance, and encourage the creation of new covered 

24 minority institutions. The scope of the work of each 

25 such Minority Depositories Advisory Committee shall 


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1 include an assessment of the current condition of 

2 covered minority institutions, what regulatory 

3 changes or other steps the respective agencies may 

4 be able to take to fulfill the requirements of such 

5 section 308, and other issues of concern to covered 

6 minority institutions. 

7 (3) MEMBERSHIP.— 

8 (A) IN GENERAL.—Each Minority Deposi9 tories Advisory Committee shall consist of no 

10 more than 10 members, who— 

11 (i) shall serve for one two-year term; 

12 (ii) shall serve as a representative of 

13 a depository institution or an insured cred14 it union with respect to which the respec15 tive covered regulator is the covered regu16 lator of such depository institution or in17 sured credit union; and 

18 (iii) shall not receive pay by reason of 

19 their service on the advisory committee, 

20 but may receive travel or transportation 

21 expenses in accordance with section 5703 

22 of title 5, United States Code. 

23 (B) DIVERSITY.—To the extent prac24 ticable, each covered regulator shall ensure that 

25 the members of the Minority Depositories AdviVerDate Sep 11 2014 02:11 Sep 04, 2020 Jkt 099200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6201 E:\BILLS\H7993.IH H7993

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1 sory Committee of such agency reflect the di2 versity of covered minority institutions. 

3 (4) MEETINGS.— 

4 (A) IN GENERAL.—Each Minority Deposi5 tories Advisory Committee shall meet not less 

6 frequently than twice each year. 

7 (B) NOTICE AND INVITATIONS.—Each Mi8 nority Depositories Advisory Committee shall— 

9 (i) notify the Committee on Financial 

10 Services of the House of Representatives 

11 and the Committee on Banking, Housing, 

12 and Urban Affairs of the Senate in ad13 vance of each meeting of the Minority De14 positories Advisory Committee; and 

15 (ii) invite the attendance at each 

16 meeting of the Minority Depositories Advi17 sory Committee of— 

18 (I) one member of the majority 

19 party and one member of the minority 

20 party of the Committee on Financial 

21 Services of the House of Representa22 tives and the Committee on Banking, 

23 Housing, and Urban Affairs of the 

24 Senate; and 


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1 (II) one member of the majority 

2 party and one member of the minority 

3 party of any relevant subcommittees 

4 of such committees. 

5 (5) NO TERMINATION OF ADVISORY COMMIT6 TEES.—The termination requirements under section 

7 14 of the Federal Advisory Committee Act (5 U.S.C. 

8 App.) shall not apply to a Minority Depositories Ad9 visory Committee established pursuant to this sub10 section. 

11 (6) DEFINITIONS.—In this subsection: 

12 (A) COVERED REGULATOR.—The term 

13 ‘‘covered regulator’’ means the Comptroller of 

14 the Currency, the Board of Governors of the 

15 Federal Reserve System, the Federal Deposit 

16 Insurance Corporation, and the National Credit 

17 Union Administration. 

18 (B) COVERED MINORITY INSTITUTION.— 

19 The term ‘‘covered minority institution’’ means 

20 a minority depository institution (as defined in 

21 section 308(b) of the Financial Institutions Re22 form, Recovery, and Enforcement Act of 1989 

23 (12 U.S.C. 1463 note)). 

24 (C) DEPOSITORY INSTITUTION.—The term 

25 ‘‘depository institution’’ has the meaning given 


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1 under section 3 of the Federal Deposit Insur2 ance Act (12 U.S.C. 1813). 

3 (D) INSURED CREDIT UNION.—The term 

4 ‘‘insured credit union’’ has the meaning given 

5 in section 101 of the Federal Credit Union Act 

6 (12 U.S.C. 1752). 

7 (7) TECHNICAL AMENDMENT.—Section 308(b) 

8 of the Financial Institutions Reform, Recovery, and 

9 Enforcement Act of 1989 (12 U.S.C. 1463 note) is 

10 amended by adding at the end the following new 

11 paragraph: 

12 ‘‘(3) DEPOSITORY INSTITUTION.—The term ‘de13 pository institution’ means an ‘insured depository in14 stitution’ (as defined in section 3 of the Federal De15 posit Insurance Act (12 U.S.C. 1813)) and an in16 sured credit union (as defined in section 101 of the 

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

18 (e) FEDERAL DEPOSITS IN MINORITY DEPOSITORY

19 INSTITUTIONS.— 

20 (1) IN GENERAL.—Section 308 of the Financial 

21 Institutions Reform, Recovery, and Enforcement Act 

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

23 (A) by adding at the end the following new 

24 subsection: 


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

2 Treasury shall ensure that deposits made by Federal agen3 cies in minority depository institutions and impact banks 

4 are collateralized or insured, as determined by the Sec5 retary. Such deposits shall include reciprocal deposits as 

6 defined in section 337.6(e)(2)(v) of title 12, Code of Fed7 eral Regulations (as in effect on March 6, 2019).’’; and 

8 (B) in subsection (b), as amended by sec9 tion 6(g), by adding at the end the following 

10 new paragraph: 

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

12 means a depository institution designated by the ap13 propriate Federal banking agency pursuant to sec14 tion 7(c) of the Promoting and Advancing Commu15 nities of Color through Inclusive Lending Act.’’. 

16 (2) TECHNICAL AMENDMENTS.—Section 308 of 

17 the Financial Institutions Reform, Recovery, and 

18 Enforcement Act of 1989 (12 U.S.C. 1463 note) is 

19 amended— 

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

21 by striking ‘‘section—’’ and inserting ‘‘sec22 tion:’’; and 

23 (B) in the paragraph heading for para24 graph (1), by striking ‘‘FINANCIAL’’ and insert25 ing ‘‘DEPOSITORY’’. 


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1 (f) MINORITY BANK DEPOSIT PROGRAM.— 

2 (1) IN GENERAL.—Section 1204 of the Finan3 cial Institutions Reform, Recovery, and Enforcement 

4 Act of 1989 (12 U.S.C. 1811 note) is amended to 

5 read as follows: 

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

7 INSTITUTIONS. 

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

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

10 program to be known as the ‘Minority Bank Deposit 

11 Program’ to expand the use of minority depository 

12 institutions. 

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

14 Treasury, acting through the Fiscal Service, shall— 

15 ‘‘(A) on application by a depository institu16 tion or credit union, certify whether such depos17 itory institution or credit union is a minority 

18 depository institution; 

19 ‘‘(B) maintain and publish a list of all de20 pository institutions and credit unions that have 

21 been certified pursuant to subparagraph (A); 

22 and 

23 ‘‘(C) periodically distribute the list de24 scribed in subparagraph (B) to— 


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1 ‘‘(i) all Federal departments and 

2 agencies; 

3 ‘‘(ii) interested State and local govern4 ments; and 

5 ‘‘(iii) interested private sector compa6 nies. 

7 ‘‘(3) INCLUSION OF CERTAIN ENTITIES ON

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

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

10 current certification from the Secretary of the 

11 Treasury stating that such depository institution or 

12 credit union is a minority depository institution shall 

13 be included on the list described under paragraph 

14 (2)(B). 

15 ‘‘(b) EXPANDED USE AMONG FEDERAL DEPART16 MENTS AND AGENCIES.— 

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

18 the establishment of the program described in sub19 section (a), the head of each Federal department or 

20 agency shall develop and implement standards and 

21 procedures to prioritize, to the maximum extent pos22 sible as permitted by law and consistent with prin23 ciples of sound financial management, the use of mi24 nority depository institutions to hold the deposits of 

25 each such department or agency. 


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

2 years after the establishment of the program de3 scribed in subsection (a), and annually thereafter, 

4 the head of each Federal department or agency shall 

5 submit to Congress a report on the actions taken to 

6 increase the use of minority depository institutions 

7 to hold the deposits of each such department or 

8 agency. 

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

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

11 has the meaning given the term ‘insured credit 

12 union’ in section 101 of the Federal Credit Union 

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

14 ‘‘(2) DEPOSITORY INSTITUTION.—The term ‘de15 pository institution’ has the meaning given in section 

16 3 of the Federal Deposit Insurance Act (12 U.S.C. 

17 1813). 

18 ‘‘(3) MINORITY DEPOSITORY INSTITUTION.— 

19 The term ‘minority depository institution’ has the 

20 meaning given that term under section 308 of this 

21 Act.’’. 

22 (2) CONFORMING AMENDMENTS.—The fol23 lowing provisions are amended by striking 

24 ‘‘1204(c)(3)’’ and inserting ‘‘1204(c)’’: 


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1 (A) Section 808(b)(3) of the Community 

2 Reinvestment Act of 1977 (12 U.S.C. 

3 2907(b)(3)). 

4 (B) Section 40(g)(1)(B) of the Federal De5 posit Insurance Act (12 U.S.C. 

6 1831q(g)(1)(B)). 

7 (C) Section 704B(h)(4) of the Equal Cred8 it Opportunity Act (15 U.S.C. 1691c–2(h)(4)). 

9 (g) DIVERSITY REPORT AND BEST PRACTICES.— 

10 (1) ANNUAL REPORT.—Each covered regulator 

11 shall submit to Congress an annual report on diver12 sity including the following: 

13 (A) Data, based on voluntary self-identi14 fication, on the racial, ethnic, and gender com15 position of the examiners of each covered regu16 lator, disaggregated by length of time served as 

17 an examiner. 

18 (B) The status of any examiners of cov19 ered regulators, based on voluntary self-identi20 fication, as a veteran. 

21 (C) Whether any covered regulator, as of 

22 the date on which the report required under 

23 this subsection is submitted, has adopted a pol24 icy, plan, or strategy to promote racial, ethnic, 


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1 and gender diversity among examiners of the 

2 covered regulator. 

3 (D) Whether any special training is devel4 oped and provided for examiners related specifi5 cally to working with depository institutions 

6 and credit unions that serve communities that 

7 are predominantly minorities, low income, or 

8 rural, and the key focus of such training. 

9 (2) BEST PRACTICES.—Each Office of Minority 

10 and Women Inclusion of a covered regulator shall 

11 develop, provide to the head of the covered regulator, 

12 and make publicly available best practices— 

13 (A) for increasing the diversity of can14 didates applying for examiner positions, includ15 ing through outreach efforts to recruit diverse 

16 candidate to apply for entry-level examiner posi17 tions; and 

18 (B) for retaining and providing fair consid19 eration for promotions within the examiner 

20 staff for purposes of achieving diversity among 

21 examiners. 

22 (3) COVERED REGULATOR DEFINED.—In this 

23 subsection, the term ‘‘covered regulator’’ means the 

24 Comptroller of the Currency, the Board of Gov25 ernors of the Federal Reserve System, the Federal 


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1 Deposit Insurance Corporation, and the National 

2 Credit Union Administration. 

3 (h) INVESTMENTS IN MINORITY DEPOSITORY INSTI4 TUTIONS AND IMPACT BANKS.— 

5 (1) CONTROL FOR CERTAIN INSTITUTIONS.— 

6 Section 7(j)(8)(B) of the Federal Deposit Insurance 

7 Act (12 U.S.C. 1817(j)(8)(B)) is amended to read 

8 as follows: 

9 ‘‘(B) ‘control’ means the power, directly or indi10 rectly— 

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

12 of an insured depository institution; or 

13 ‘‘(ii)(I) with respect to an insured deposi14 tory institution, of a person to vote 25 per cen15 tum or more of any class of voting securities of 

16 such institution; or 

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

18 institution that is an impact bank (as des19 ignated pursuant to section 7(c) of Promoting 

20 and Advancing Communities of Color through 

21 Inclusive Lending Act) or a minority depository 

22 institution (as defined in section 308(b) of the 

23 Financial Institutions Reform, Recovery, and 

24 Enforcement Act of 1989), of an individual to 

25 vote 30 percent or more of any class of voting 


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1 securities of such an impact bank or a minority 

2 depository institution.’’. 

3 (2) RULEMAKING.—The Federal banking agen4 cies (as defined in section 3 of the Federal Deposit 

5 Insurance Act (12 U.S.C. 1813)) shall jointly issue 

6 rules for de novo minority depository institutions 

7 and de novo impact banks (as designated pursuant 

8 to subsection (c)) to allow 3 years to meet the cap9 ital requirements otherwise applicable to minority 

10 depository institutions and impact banks. 

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

12 date of the enactment of this Act, the Federal bank13 ing agencies shall jointly submit to Congress a re14 port on— 

15 (A) the principal causes for the low num16 ber of de novo minority depository institutions 

17 during the 10-year period preceding the date of 

18 the report; 

19 (B) the main challenges to the creation of 

20 de novo minority depository institutions and de 

21 novo impact banks; and 

22 (C) regulatory and legislative consider23 ations to promote the establishment of de novo 

24 minority depository institutions and de novo im25 pact banks. 


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1 (i) REPORT ON COVERED MENTOR-PROTEGE PRO2 GRAMS.— 

3 (1) REPORT.—Not later than 6 months after 

4 the date of the enactment of this Act and annually 

5 thereafter, the Secretary of the Treasury shall sub6 mit to Congress a report on participants in a cov7 ered mentor-protege program, including— 

8 (A) an analysis of outcomes of such pro9 gram; 

10 (B) the number of minority depository in11 stitutions that are eligible to participate in such 

12 program but do not have large financial institu13 tion mentors; and 

14 (C) recommendations for how to match 

15 such minority depository institutions with large 

16 financial institution mentors. 

17 (2) DEFINITIONS.—In this subsection: 

18 (A) COVERED MENTOR-PROTEGE PRO19 GRAM.—The term ‘‘covered mentor-protege pro20 gram’’ means a mentor-protege program estab21 lished by the Secretary of the Treasury pursu22 ant to section 45 of the Small Business Act (15 

23 U.S.C. 657r). 


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1 (B) LARGE FINANCIAL INSTITUTION.—The 

2 term ‘‘large financial institution’’ means any 

3 entity— 

4 (i) regulated by the Comptroller of the 

5 Currency, the Board of Governors of the 

6 Federal Reserve System, the Federal De7 posit Insurance Corporation, or the Na8 tional Credit Union Administration; and 

9 (ii) that has total consolidated assets 

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

11 (j) CUSTODIAL DEPOSIT PROGRAM FOR COVERED

12 MINORITY DEPOSITORY INSTITUTIONS AND IMPACT

13 BANKS.— 

14 (1) IN GENERAL.—Not later than one year 

15 after the date of the enactment of this Act, the Sec16 retary of the Treasury shall issue rules establishing 

17 a custodial deposit program under which a covered 

18 bank may receive deposits from a qualifying account. 

19 (2) REQUIREMENTS.—In issuing rules under 

20 paragraph (1), the Secretary of the Treasury shall— 

21 (A) consult with the Federal banking agen22 cies; 

23 (B) ensure each covered bank participating 

24 in the program established under this section— 


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1 (i) has appropriate policies relating to 

2 management of assets, including measures 

3 to ensure the safety and soundness of each 

4 such covered bank; and 

5 (ii) is compliant with applicable law; 

6 and 

7 (C) ensure, to the extent practicable that 

8 the rules do not conflict with goals described in 

9 section 308(a) of the Financial Institutions Re10 form, Recovery, and Enforcement Act of 1989 

11 (12 U.S.C. 1463 note). 

12 (3) REPORT.—Each quarter, the Secretary of 

13 the Treasury shall submit to Congress a report on 

14 the implementation of the program established under 

15 this subsection including information identifying 

16 participating covered banks and the total amount of 

17 deposits received by covered banks under the pro18 gram. 

19 (4) DEFINITIONS.—In this subsection: 

20 (A) COVERED BANK.—The term ‘‘covered 

21 bank’’ means— 

22 (i) a minority depository institution 

23 that is well capitalized, as defined by the 

24 appropriate Federal banking agency; or 


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1 (ii) a depository institution designated 

2 pursuant to subsection (c) that is well cap3 italized, as defined by the appropriate Fed4 eral banking agency. 

5 (B) FEDERAL BANKING AGENCIES.—The 

6 terms ‘‘appropriate Federal banking agency’’ 

7 and ‘‘Federal banking agencies’’ have the mean8 ing given those terms, respectively, under sec9 tion 3 of the Federal Deposit Insurance Act. 

10 (C) QUALIFYING ACCOUNT.—The term 

11 ‘‘qualifying account’’ means any account estab12 lished in the Department of the Treasury 

13 that— 

14 (i) is controlled by the Secretary; and 

15 (ii) is expected to maintain a balance 

16 greater than $200,000,000 for the fol17 lowing 24-month period. 

18 (k) STREAMLINED COMMUNITY DEVELOPMENT FI19 NANCIAL INSTITUTION APPLICATIONS AND REPORTING.— 

20 (1) APPLICATION PROCESSES.—Not later than 

21 12 months after the date of the enactment of this 

22 Act and with respect to any person having assets 

23 under $3,000,000,000 that submits an application 

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1 munity development financial institution, the Fed2 eral Deposit Insurance Corporation, in consultation 

3 with the Administrator of the Community Develop4 ment Financial Institutions Fund, shall— 

5 (A) develop systems and procedures to 

6 record necessary information to allow the Ad7 ministrator to conduct preliminary analysis for 

8 such person to also become a community devel9 opment financial institution; and 

10 (B) develop procedures to streamline the 

11 application and annual certification processes 

12 and to reduce costs for such person to become, 

13 and maintain certification as, a community de14 velopment financial institution. 

15 (2) IMPLEMENTATION REPORT.—Not later than 

16 18 months after the date of the enactment of this 

17 Act, the Federal Deposit Insurance Corporation 

18 shall submit to Congress a report describing the sys19 tems and procedures required under paragraph (1). 

20 (3) ANNUAL REPORT.— 

21 (A) IN GENERAL.—Section 17(a)(1) of the 

22 Federal Deposit Insurance Act (12 U.S.C. 

23 1827(a)(1)) is amended— 

24 (i) in subparagraph (E), by striking 

25 ‘‘and’’ at the end; 


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1 (ii) by redesignating subparagraph 

2 (F) as subparagraph (G); 

3 (iii) by inserting after subparagraph 

4 (E) the following new subparagraph: 

5 ‘‘(F) applicants for deposit insurance that 

6 could also become a community development fi7 nancial institution (as defined in section 103 of 

8 the Riegle Community Development and Regu9 latory Improvement Act of 1994), a minority 

10 depository institution (as defined in section 308 

11 of the Financial Institutions Reform, Recovery, 

12 and Enforcement Act of 1989), or an impact 

13 bank (as designated pursuant to section 7(c) of 

14 the Promoting and Advancing Communities of 

15 Color through Inclusive Lending Act); and’’. 

16 (B) APPLICATION.—The amendment made 

17 by this paragraph shall apply with respect to 

18 the first report to be submitted after the date 

19 that is 2 years after the date of the enactment 

20 of this Act. 

21 (l) TASK FORCE ON LENDING TO SMALL BUSINESS

22 CONCERNS.— 

23 (1) IN GENERAL.—Not later than 6 months 

24 after the date of the enactment of this Act, the Ad25 ministrator of the Small Business Administration 


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1 shall establish a task force to examine methods for 

2 improving relationships between the Small Business 

3 Administration and community development finan4 cial institutions, minority depository institutions, 

5 and Impact Banks to increase the volume of loans 

6 provided by such institutions to small business con7 cerns (as defined under section 3 of the Small Busi8 ness Act (15 U.S.C. 632)). 

9 (2) REPORT TO CONGRESS.—Not later than 18 

10 months after the establishment of the task force de11 scribed in paragraph (1), the Administrator of the 

12 Small Business Administration shall submit to Con13 gress a report on the findings of such task force. 

14 SEC. 8. ESTABLISHMENT OF FINANCIAL AGENT MENTOR15 PROTE ́ GE ́ PROGRAM. 

16 (a) IN GENERAL.—Section 308 of the Financial In17 stitutions Reform, Recovery, and Enforcement Act of 

18 1989 (12 U.S.C. 1463 note), as amended by section 6(f), 

19 is further amended by adding at the end the following new 

20 subsection: 

21 ‘‘(e) FINANCIAL AGENT MENTOR-PROTE ́GE ́ PRO22 GRAM.— 

23 ‘‘(1) IN GENERAL.—The Secretary of the 

24 Treasury shall establish a program to be known as 

25 the ‘Financial Agent Mentor-Prote ́ge ́ Program’ (in 


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1 this subsection referred to as the ‘Program’) under 

2 which a financial agent designated by the Secretary 

3 or a large financial institution may serve as a men4 tor, under guidance or regulations prescribed by the 

5 Secretary, to a small financial institution to allow 

6 such small financial institution— 

7 ‘‘(A) to be prepared to perform as a finan8 cial agent; or 

9 ‘‘(B) to improve capacity to provide serv10 ices to the customers of the small financial in11 stitution. 

12 ‘‘(2) OUTREACH.—The Secretary shall hold 

13 outreach events to promote the participation of fi14 nancial agents, large financial institutions, and small 

15 financial institutions in the Program at least once a 

16 year. 

17 ‘‘(3) EXCLUSION.—The Secretary shall issue 

18 guidance or regulations to establish a process under 

19 which a financial agent, large financial institution, 

20 or small financial institution may be excluded from 

21 participation in the Program. 

22 ‘‘(4) REPORT.—The Office of Minority and 

23 Women Inclusion of the Department of the Treasury 

24 shall include in the report submitted to Congress 

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


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1 Reform and Consumer Protection Act information 

2 pertaining to the Program, including— 

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

4 financial institutions, and small financial insti5 tutions participating in such Program; and 

6 ‘‘(B) the number of outreach events de7 scribed in paragraph (2) held during the year 

8 covered by such report. 

9 ‘‘(5) DEFINITIONS.—In this subsection: 

10 ‘‘(A) FINANCIAL AGENT.—The term ‘fi11 nancial agent’ means any national banking as12 sociation designated by the Secretary of the 

13 Treasury to be employed as a financial agent of 

14 the Government. 

15 ‘‘(B) LARGE FINANCIAL INSTITUTION.— 

16 The term ‘large financial institution’ means any 

17 entity regulated by the Comptroller of the Cur18 rency, the Board of Governors of the Federal 

19 Reserve System, the Federal Deposit Insurance 

20 Corporation, or the National Credit Union Ad21 ministration that has total consolidated assets 

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

23 ‘‘(C) SMALL FINANCIAL INSTITUTION.— 

24 The term ‘small financial institution’ means— 


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1 ‘‘(i) any entity regulated by the 

2 Comptroller of the Currency, the Board of 

3 Governors of the Federal Reserve System, 

4 the Federal Deposit Insurance Corpora5 tion, or the National Credit Union Admin6 istration that has total consolidated assets 

7 lesser than or equal to $2,000,000,000; or 

8 ‘‘(ii) a minority depository institu9 tion.’’. 

10 (b) EFFECTIVE DATE.—This section and the amend11 ments made by this section shall take effect 90 days after 

12 the date of the enactment of this Act. 

13 SEC. 9. STUDY AND REPORT WITH RESPECT TO IMPACT OF 

14 PROGRAMS ON LOW- AND MODERATE-IN15 COME AND MINORITY COMMUNITIES. 

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

17 conduct a study of the impact of the programs established 

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

19 low- and moderate-income and minority communities. 

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

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

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

23 pursuant to subsection (a), which shall include, to the ex24 tent possible, the results of the study disaggregated by ra25 cial and ethnic group. 


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1 (c) INFORMATION PROVIDED TO THE SECRETARY.— 

2 Eligible institutions that participate in any of the pro3 grams described in subsection (a) shall provide the Sec4 retary of the Treasury with such information as the Sec5 retary may require to carry out the study required by this 

6 section. 

Æ 


pbinns on DSKJLVW7X2PROD with BILLS