II 

114TH CONGRESS 

1ST SESSION S. 2125 

To make the Community Advantage Pilot Program of the Small Business 

Administration permanent, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

OCTOBER 1, 2015 

Mrs. FEINSTEIN introduced the following bill; which was read twice and 

referred to the Committee on Small Business and Entrepreneurship 

A BILL 

To make the Community Advantage Pilot Program of the 

Small Business Administration permanent, 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 ‘‘Small Business Lend5 ing and Economic Inequality Reduction Act of 2015’’. 

6 SEC. 2. COMMUNITY ADVANTAGE PROGRAM. 

7 (a) IN GENERAL.—Section 7(a) of the Small Busi8 ness Act (15 U.S.C. 636(a)) is amended by adding at the 

9 end the following: 

10 ‘‘(35) COMMUNITY ADVANTAGE PROGRAM.— 


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1 ‘‘(A) DEFINITIONS.—In this paragraph— 

2 ‘‘(i) the term ‘covered institution’ 

3 means— 

4 ‘‘(I) a development company (as 

5 defined in section 103 of the Small 

6 Business Investment Act of 1958 (15 

7 U.S.C. 662)) that is eligible to partici8 pate in the program established under 

9 title V of such Act (15 U.S.C. 695 et 

10 seq.); 

11 ‘‘(II) a nonprofit intermediary 

12 (as defined in subsection (m)(11)); 

13 ‘‘(III) a non-Federally regulated 

14 entity certified as a community devel15 opment financial institution by the 

16 Community Development Financial 

17 Institutions Fund established under 

18 section 104(a) of the Riegle Commu19 nity Development and Regulatory Im20 provement Act of 1994 (12 U.S.C. 

21 4703(a)); or 

22 ‘‘(IV) any other nonprofit organi23 zation approved by the Small Busi24 ness Administration; 


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1 ‘‘(ii) the term ‘program’ means the 

2 Community Advantage Program estab3 lished under subparagraph (B); 

4 ‘‘(iii) the term ‘Reservist’ means a 

5 member of a reserve component of the 

6 Armed Forces named in section 10101 of 

7 title 10, United States Code; 

8 ‘‘(iv) the term ‘service-connected’ has 

9 the meaning given that term in section 

10 101(16) of title 38, United States Code; 

11 and 

12 ‘‘(v) the term ‘small business concern 

13 in an underserved market’ means a small 

14 business concern— 

15 ‘‘(I) that is located in— 

16 ‘‘(aa) a low- or moderate-in17 come community; 

18 ‘‘(bb) a HUBZone; or 

19 ‘‘(cc) a community that has 

20 been designated as an empower21 ment zone or an enterprise com22 munity under section 1391 of the 

23 Internal Revenue Code of 1986; 


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1 ‘‘(II) that has more than 50 per2 cent of employees residing in a low- or 

3 moderate-income community; 

4 ‘‘(III) that has been in existence 

5 for not more than 2 years on the date 

6 on which a loan is made to the small 

7 business concern under the Commu8 nity Advantage Program established 

9 under subparagraph (B); 

10 ‘‘(IV) owned and controlled by 

11 veterans; 

12 ‘‘(V) owned and controlled by 

13 service-disabled veterans; or 

14 ‘‘(VI) not less than 51 percent of 

15 which is owned and controlled by 1 or 

16 more— 

17 ‘‘(aa) members of the Armed 

18 Forces participating in the Tran19 sition Assistance Program of the 

20 Department of Defense; 

21 ‘‘(bb) Reservists; 

22 ‘‘(cc) spouses of veterans, 

23 members of the Armed Forces, or 

24 Reservists; or 


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1 ‘‘(dd) surviving spouses of 

2 veterans who died on active duty 

3 or as a result of a service-con4 nected disability. 

5 ‘‘(B) ESTABLISHMENT.—There is estab6 lished a Community Advantage Program, under 

7 which the Administration may guarantee loans 

8 made by covered institutions under this sub9 section, including loans made to small business 

10 concerns in underserved markets. 

11 ‘‘(C) REQUIREMENTS.—Not less than 60 

12 percent of loans made by a covered institution 

13 under the program shall consist of loans made 

14 to small business concerns in underserved mar15 kets under the program. 

16 ‘‘(D) MAXIMUM LOAN AMOUNT.—The max17 imum loan amount under the program is 

18 $350,000. 

19 ‘‘(E) REGULATIONS.— 

20 ‘‘(i) IN GENERAL.—Not later than 1 

21 year after the date of enactment of this 

22 paragraph, the Administrator shall promul23 gate regulations to carry out the program, 

24 which shall be substantially similar to the 

25 Community Advantage Pilot Program of 


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1 the Administration, as in effect on the day 

2 before the date of enactment of this para3 graph. 

4 ‘‘(ii) PILOT PROGRAM.—Beginning on 

5 the date on which the regulations promul6 gated by the Administrator under clause 

7 (i) take effect, the Administrator may not 

8 carry out the Community Advantage Pilot 

9 Program of the Administration.’’. 

10 (b) TECHNICAL AND CONFORMING AMENDMENT.— 

11 Section 3(r) of the Small Business Act (15 U.S.C. 632(r)) 

12 is amended— 

13 (1) in paragraph (1), by inserting before the pe14 riod at the end the following: ‘‘, but does not include 

15 a covered institution, as defined in section 

16 7(a)(35)(A)’’; and 

17 (2) in paragraph (2)— 

18 (A) in the matter preceding subparagraph 

19 (A), by striking ‘‘means a business concern’’ 

20 and inserting the following: ‘‘—’’ 

21 ‘‘(A) means a business concern if—’’; 

22 (B) by redesignating subparagraphs (A), 

23 (B), and (C) as clauses (i), (ii), and (iii), re24 spectively, and adjusting the margins accord25 ingly; 


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1 (C) in subparagraph (A)(iii), as so redesig2 nated, by striking the period at the end and in3 serting ‘‘; and’’; and 

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

5 ‘‘(B) does not include a covered institution, 

6 as defined in section 7(a)(35)(A).’’. 

7 SEC. 3. EXPANDING THE PURPOSES OF ADVANCES AND 

8 COLLATERAL AVAILABLE TO COMMUNITY DE9 VELOPMENT FINANCIAL INSTITUTIONS. 

10 Section 10(a) of the Federal Home Loan Bank Act 

11 (12 U.S.C. 1430(a)) is amended— 

12 (1) in paragraph (2)(B), by inserting ‘‘or com13 munity development financial institution (as defined 

14 in section 103 of the Riegle Community Develop15 ment and Regulatory Improvement Act of 1994 (12 

16 U.S.C. 4702))’’ after ‘‘community financial institu17 tion’’; and 

18 (2) in paragraph (3)(E), by inserting ‘‘or com19 munity development financial institution (as defined 

20 in section 103 of the Riegle Community Develop21 ment and Regulatory Improvement Act of 1994 (12 

22 U.S.C. 4702))’’ after ‘‘community financial institu23 tion’’. 

Æ 


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