II 

117TH CONGRESS 

1ST SESSION S. 2662 

To establish the Industrial Finance Corporation of the United States, and 

for other purposes. 

IN THE SENATE OF THE UNITED STATES 

AUGUST 5, 2021 

Mr. COONS (for himself, Ms. KLOBUCHAR, Mr. VAN HOLLEN, Mr. WARNOCK, 

Mr. PETERS, Mr. BENNET, and Mr. WARNER) introduced the following 

bill; which was read twice and referred to the Committee on Banking, 

Housing, and Urban Affairs 

A BILL 

To establish the Industrial Finance Corporation of the 

United States, 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; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Industrial Finance Corporation Act’’. 

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

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Definitions. 

TITLE I—ESTABLISHMENT 


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Sec. 101. Findings. 

Sec. 102. Establishment of Corporation. 

Sec. 103. Structure and organization. 

Sec. 104. Inspector General of the Corporation. 

TITLE II—AUTHORITIES 

Sec. 201. Authorities relating to provision of support. 

Sec. 202. Terms and conditions. 

Sec. 203. Payment of losses. 

TITLE III—ADMINISTRATIVE AND GENERAL PROVISIONS 

Sec. 301. Operations. 

Sec. 302. Corporate powers. 

Sec. 303. Maximum contingent liability. 

Sec. 304. Corporate funds. 

TITLE IV—MONITORING, EVALUATION, AND REPORTING 

Sec. 401. Establishment of risk and audit committees. 

Sec. 402. Performance measures, evaluation, and learning. 

Sec. 403. Annual report. 

Sec. 404. Publicly available project information. 

Sec. 405. Engagement with investors. 

Sec. 406. Notifications by the Corporation. 

TITLE V—CONDITIONS, RESTRICTIONS, AND PROHIBITIONS 

Sec. 501. Limitations and preferences. 

Sec. 502. Additionality and avoidance of market distortion. 

Sec. 503. Prevailing wages. 

1 SEC. 2. DEFINITIONS. 

2 In this Act: 

3 (1) APPROPRIATE CONGRESSIONAL COMMIT4 TEES.—The term ‘‘appropriate congressional com5 mittees’’ means— 

6 (A) the Committee on Banking, Housing, 

7 and Urban Affairs of the Senate; and 

8 (B) the Committee on Financial Services 

9 of the House of Representatives. 

10 (2) BOARD.—The term ‘‘Board’’ means the 

11 Board of Directors of the Corporation. 


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

2 means the Industrial Finance Corporation of the 

3 United States established under section 102(a). 

4 (4) PROJECT.—The term ‘‘project’’ means a 

5 project or activity supported by the Corporation 

6 under title II. 

7 TITLE I—ESTABLISHMENT 

8 SEC. 101. FINDINGS. 

9 Congress finds the following: 

10 (1) The COVID–19 pandemic exposed long-ex11 isting vulnerabilities and harmful concentration in 

12 supply chains, as demonstrated by the semicon13 ductor shortage and the reverberating effects of that 

14 shortage on the production capabilities of industries 

15 within the United States. 

16 (2) Vulnerable or concentrated supply chains 

17 have harmful implications for the national security 

18 of the United States, including by— 

19 (A) creating bottlenecks and delays for 

20 goods and innovations necessary to military 

21 preparedness; 

22 (B) increasing economic and political lever23 age for adversarial nations in international ne24 gotiations; and 


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1 (C) providing leverage for adversarial na2 tions to use their supply chain dominance to 

3 exert economic pressure or destabilize the de4 fense capabilities of the United States. 

5 (3) To promote the national defense and na6 tional security of the United States, the Federal 

7 Government must provide investment to ensure that 

8 certain goods and innovations are produced in the 

9 United States. 

10 (4) Vulnerable supply chains also have harmful 

11 economic repercussions for the United States, in12 cluding by— 

13 (A) weakening the ability of the United 

14 States to lead commercial development of the 

15 technological frontier; 

16 (B) limiting the availability of financing 

17 and investment for businesses in the United 

18 States; and 

19 (C) causing higher prices for consumers 

20 and businesses in the United States. 

21 (5) In order for the United States to remain 

22 the economic leader of the world, it is critical for the 

23 Federal Government to ensure that the United 

24 States leads the development, furtherance, and com25 mercialization of the technological frontier through 


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1 investments in manufacturing and fields and tech2 nologies with and without military applications, in3 cluding— 

4 (A) nanotechnology; 

5 (B) biotechnology; 

6 (C) advanced manufacturing; 

7 (D) quantum computing; 

8 (E) advanced communications; 

9 (F) advanced energy; 

10 (G) semiconductors; 

11 (H) advanced computing; 

12 (I) cybersecurity; 

13 (J) artificial intelligence; 

14 (K) green manufacturing; and 

15 (L) other fields with high potential to con16 tribute to the economic and national security of 

17 the United States that may lack sufficient pri18 vate sector investment. 

19 (6) Historically, the Federal Government has 

20 used public funds to fill gaps in private sector in21 vestment, often without sharing in the potential ben22 efits. When the Federal Government invests in high23 risk, high-reward industries, the taxpayers of the 

24 United States should share in the potential benefits 

25 and not just the risks of the investment. 


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1 (7) It is in the economic interest of the United 

2 States to ensure that resilient supply chains remain 

3 economically competitive. Accordingly, it is crucial— 

4 (A) for the Federal Government to invest 

5 in building and retaining a vibrant manufac6 turing sector; 

7 (B) for the Federal Government to invest 

8 in manufacturing and production that leads to 

9 good jobs for workers in the United States; and 

10 (C) that investments in manufacturers in 

11 the United States lead to good jobs for workers 

12 in the United States. 

13 (8) All too often, excessive short-termism pre14 cludes companies in the United States from access15 ing investment capital. It is in the interest of the 

16 Federal Government to ensure that patient capital 

17 (or capital with an investment horizon of not less 

18 than 7 years) is available to boost supply chains and 

19 manufacturing in the United States. Innovative in20 dustries, including industries described in, or that 

21 produce the products described in, paragraph (5), 

22 suffer from limited access to patient capital. 


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1 SEC. 102. ESTABLISHMENT OF CORPORATION. 

2 (a) IN GENERAL.—There is established within the ex3 ecutive branch of the Federal Government the Industrial 

4 Finance Corporation of the United States. 

5 (b) WHOLLY OWNED GOVERNMENT CORPORA6 TION.—Section 9101(3) of title 31, United States Code, 

7 is amended by adding at the end the following: 

8 ‘‘(Q) the Industrial Finance Corporation of 

9 the United States.’’. 

10 (c) STATEMENT OF POLICY.—It shall be the policy 

11 of the Corporation to— 

12 (1) provide support to ensure resilient supply 

13 chains in industries that are critical to— 

14 (A) the national security of the United 

15 States; 

16 (B) the economic competitiveness of the 

17 United States; and 

18 (C) the maintenance of a strong manufac19 turing base in the United States; 

20 (2) provide support to manufacturing in the 

21 United States, which is crucial to— 

22 (A) growing the economy of the United 

23 States; 

24 (B) providing good jobs and manufac25 turing skills training to workers in the United 

26 States; and 


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1 (C) ensuring the economic and national se2 curity of the United States; 

3 (3) provide support to industries that are crit4 ical to ensuring that companies in the United States 

5 commercialize products on the technological frontier 

6 of production across a wide array of goods and in7 dustries, including by helping vital technologies (and 

8 products that use those technologies) make the tran9 sition from universities and labs to commercial suc10 cess, including— 

11 (A) technologies and products with civilian 

12 and military applications, including applications 

13 described in section 101(5); and 

14 (B) other technologies that enhance the in15 fluence of the United States through expor16 tation to other countries; 

17 (4) restore the entrepreneurial dynamism of the 

18 economy of the United States by supporting the 

19 growth of small- and medium-sized businesses with 

20 not more than 500 employees— 

21 (A) that support, or are capable of sup22 porting, the growth of the industries and prod23 ucts described in paragraph (3) as contractors 

24 or customers, especially in sectors such as manVerDate Sep 11 2014 20:28 Aug 13, 2021 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S2662.IS S2662

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1 ufacturing that compete in an international 

2 marketplace; 

3 (B) with innovative potential to increase 

4 the productivity and economic development of 

5 the United States; and 

6 (C) that are— 

7 (i) located in regions of the United 

8 States that have historically suffered from 

9 low access to capital; or 

10 (ii) owned by an individual who is a 

11 member of a demographic group that has 

12 historically suffered from low access to 

13 capital; and 

14 (5) provide support to critical industries that 

15 are vulnerable to systematic patterns of underinvest16 ment, import competition, and targeted industrial 

17 policies from foreign nations, in order to— 

18 (A) ensure that those industries preserve 

19 and ideally expand production capacity for con20 sumers of those industries; and 

21 (B) invest in strategies to promote the de22 ployment of more advanced technologies. 

23 (d) SUPPORT.—In providing support under title II, 

24 the Corporation shall ensure that the support furthers not 

25 less than 1 policy described in subsection (c). 


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1 SEC. 103. STRUCTURE AND ORGANIZATION. 

2 (a) STRUCTURE OF CORPORATION.—There shall be 

3 within the Corporation— 

4 (1) a Board of Directors; 

5 (2) a Chief Executive Officer, as described in 

6 subsection (d); 

7 (3) a Deputy Chief Executive Officer, as de8 scribed in subsection (e); 

9 (4) a Chief Risk Officer, as described in sub10 section (f); 

11 (5) a Chief Development Officer, as described 

12 in subsection (g); 

13 (6) a Chief Technology and Data Officer, as de14 scribed in subsection (h); and 

15 (7) such other officers as the Board may deter16 mine. 

17 (b) BOARD OF DIRECTORS.— 

18 (1) POWERS AND DUTIES.— 

19 (A) IN GENERAL.—Every power of the 

20 Corporation shall vest in and be exercised by or 

21 under the authority of the Board. 

22 (B) DUTIES.—The Board— 

23 (i) shall perform the functions re24 quired to be carried out by the Board 

25 under this Act; 


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1 (ii) may prescribe, amend, and repeal 

2 bylaws, rules, regulations, policies, and 

3 procedures governing the manner in which 

4 the business of the Corporation may be 

5 conducted and in which the powers granted 

6 to the Corporation by law may be exer7 cised; and 

8 (iii) shall develop, in consultation with 

9 stakeholders and other interested parties, a 

10 publicly available policy with respect to 

11 consultations, hearings, and other forms of 

12 engagement of the Board in order to pro13 vide for meaningful public participation in 

14 the activities of the Board. 

15 (2) MEMBERSHIP OF BOARD.— 

16 (A) IN GENERAL.—The Board shall consist 

17 of— 

18 (i) the Chief Executive Officer of the 

19 Corporation; 

20 (ii) the officers described in subpara21 graph (B); and 

22 (iii) 4 other individuals, who shall be 

23 appointed by the President, by and with 

24 the advice and consent of the Senate. 

25 (B) OFFICERS DESCRIBED.— 


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1 (i) IN GENERAL.—The officers de2 scribed in this subparagraph are the fol3 lowing: 

4 (I) The Secretary of the Treas5 ury or a designee of the Secretary. 

6 (II) The Administrator of the 

7 Small Business Administration or a 

8 designee of the Administrator. 

9 (III) The Secretary of Commerce 

10 or a designee of the Secretary. 

11 (IV) The Secretary of Defense or 

12 a designee of the Secretary. 

13 (V) The Chair of the Board of 

14 Governors of the Federal Reserve Sys15 tem or a designee of the Chair. 

16 (ii) REQUIREMENTS FOR DES17 IGNEES.—A designee under clause (i) 

18 shall— 

19 (I) be selected from among offi20 cers— 

21 (aa) appointed by the Presi22 dent, by and with the advice and 

23 consent of the Senate; and 


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1 (bb) with duties relating to 

2 the programs of the Corporation; 

3 and 

4 (II) serve on the Board at the 

5 pleasure of the President. 

6 (C) NONGOVERNMENT MEMBERS.—A 

7 member of the Board described in subpara8 graph (A)(iii)— 

9 (i) may not be an officer or employee 

10 of the Federal Government; 

11 (ii) shall have relevant experience to 

12 carry out the purpose of the Corporation, 

13 which may include experience relating to 

14 the private sector, the environment, labor 

15 organizations, or economic development; 

16 (iii) shall be appointed for a term of 

17 8 years and may be reappointed for 1 ad18 ditional term; 

19 (iv) shall serve until the successor of 

20 the member is appointed and confirmed; 

21 (v) shall be compensated at a rate 

22 equivalent to the rate under level IV of the 

23 Executive Schedule under section 5315 of 

24 title 5, United States Code, when engaged 

25 in the business of the Corporation; and 


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1 (vi) may be paid per diem in lieu of 

2 subsistence at the applicable rate under 

3 the Federal Travel Regulation under sub4 title F of title 41, Code of Federal Regula5 tions, or any successor regulations, from 

6 time to time, while away from the home or 

7 usual place of business of the member. 

8 (D) STAGGERED TERMS.—Notwithstanding 

9 subparagraph (C)(iii), in appointing the initial 

10 members of the Board described in subpara11 graph (C), the President shall stagger the 

12 terms of the members so that, during any 2- 

13 year period, the term of not more than 1 mem14 ber ends. 

15 (3) CHAIRPERSON.—The Secretary of the 

16 Treasury, or the designee of the Secretary under 

17 paragraph (2)(B)(i)(I), shall serve as the Chair18 person of the Board. 

19 (4) VICE CHAIRPERSON.—The Administrator of 

20 the Small Business Administration, or the designee 

21 of the Administrator under paragraph (2)(B)(i)(II), 

22 shall serve as the Vice Chairperson of the Board. 

23 (5) QUORUM.—5 members of the Board shall 

24 constitute a quorum for the transaction of business 

25 by the Board. 


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1 (6) AFFIRMATION OF MISSION.—The members 

2 of the Board shall affirm support for the mission 

3 and objectives of the Corporation. 

4 (c) PUBLIC HEARINGS.—The Board shall hold not 

5 less than 2 public hearings annually in order to afford an 

6 opportunity for any person to present views with respect 

7 to whether— 

8 (1) the Corporation is carrying out its activities 

9 in accordance with this Act; and 

10 (2) any support provided by the Corporation 

11 under title II should be suspended, expanded, or ex12 tended. 

13 (d) CHIEF EXECUTIVE OFFICER.— 

14 (1) APPOINTMENT.—There shall be within the 

15 Corporation a Chief Executive Officer, who shall— 

16 (A) be appointed by the President, by and 

17 with the advice and consent of the Senate; and 

18 (B) serve at the pleasure of the President. 

19 (2) AUTHORITIES AND DUTIES.—The Chief Ex20 ecutive Officer shall— 

21 (A) be responsible for the management of 

22 the Corporation; and 

23 (B) exercise the powers and discharge the 

24 duties of the Corporation subject to the bylaws, 


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1 rules, regulations, and procedures established 

2 by the Board. 

3 (3) RELATIONSHIP TO BOARD.—The Chief Ex4 ecutive Officer shall report to, and be under the di5 rect authority of, the Board. 

6 (4) COMPENSATION.—Section 5313 of title 5, 

7 United States Code, is amended by adding at the 

8 end the following: 

9 ‘‘Chief Executive Officer, Industrial Finance 

10 Corporation of the United States.’’. 

11 (e) DEPUTY CHIEF EXECUTIVE OFFICER.—There 

12 shall be within the Corporation a Deputy Chief Executive 

13 Officer, who shall— 

14 (1) be appointed by the President, by and with 

15 the advice and consent of the Senate; and 

16 (2) serve at the pleasure of the President. 

17 (f) CHIEF RISK OFFICER.— 

18 (1) APPOINTMENT.—Subject to the approval of 

19 the Board, the Chief Executive Officer of the Cor20 poration shall appoint a Chief Risk Officer, from 

21 among individuals with experience at a senior level 

22 in financial risk management, who shall— 

23 (A) report directly to the Board; and 

24 (B) be removable only by a majority vote 

25 of the Board. 


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1 (2) DUTIES.—The Chief Risk Officer, in coordi2 nation with the audit committee of the Board estab3 lished under section 401(a), shall develop, imple4 ment, and manage a comprehensive process for iden5 tifying, assessing, monitoring, and limiting risks to 

6 the Corporation, including the overall portfolio diver7 sification of the Corporation. 

8 (g) CHIEF DEVELOPMENT OFFICER.— 

9 (1) APPOINTMENT.—Subject to the approval of 

10 the Board, the Chief Executive Officer shall appoint 

11 a Chief Development Officer, who shall— 

12 (A) report directly to the Board; and 

13 (B) be removable only by a majority vote 

14 of the Board. 

15 (2) DUTIES.—The Chief Development Officer 

16 shall— 

17 (A) in coordination with the Chief Tech18 nology and Data Officer, develop, track, and re19 port metrics to assess the impact of the activi20 ties of the Corporation with respect to the poli21 cies described in section 102(c); 

22 (B) convene potential investment partners 

23 who can provide additional private investments 

24 into projects and companies supported by the 

25 Corporation; 


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1 (C) coordinate the development policies 

2 and implementation efforts of the Corporation 

3 with— 

4 (i) the Export-Import Bank of the 

5 United States; 

6 (ii) the United States International 

7 Domestic Finance Corporation; 

8 (iii) the Department of Commerce; 

9 (iv) the Small Business Administra10 tion; 

11 (v) the Manufacturing USA Institutes 

12 described in section 34(d) of the National 

13 Institute of Standards and Technology Act 

14 (15 U.S.C. 278s(d)); 

15 (vi) the manufacturing extension cen16 ters established under section 25(b) of the 

17 National Institute of Standards and Tech18 nology Act (15 U.S.C. 278k(b)); 

19 (vii) the Office of Science and Tech20 nology Policy; and 

21 (viii) other relevant Federal agencies; 

22 (D) authorize and coordinate transfers of 

23 funds or other resources to and from the Fed24 eral agencies described in subparagraph (C) or 

25 Federal missions upon the concurrence of those 


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1 agencies or missions in support of the projects 

2 of the Corporation; and 

3 (E) serve as an ex officio member of the 

4 Advisory Council established under subsection 

5 (j) and participate in, or send a representative 

6 to, each meeting of that Council. 

7 (h) CHIEF TECHNOLOGY AND DATA OFFICER.— 

8 (1) APPOINTMENT.—Subject to the approval of 

9 the Board, the Chief Executive Officer shall appoint 

10 a Chief Technology and Data Officer, who shall— 

11 (A) report directly to the Board; and 

12 (B) be removable only by a majority vote 

13 of the Board. 

14 (2) DUTIES.—The Chief Technology and Data 

15 Officer shall ensure that the Corporation— 

16 (A) collects proper data from each project; 

17 and 

18 (B) develops and implements proper data 

19 analytics within the Corporation to ensure that 

20 the Corporation can analyze the data collected 

21 under subparagraph (A) to— 

22 (i) in coordination with the Chief De23 velopment Officer, measure the impact of 

24 the activities of the Corporation on the 

25 policies described in section 102(c); 


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1 (ii) inform future activities of the Cor2 poration; and 

3 (iii) provide publicly available report4 ing on the activities of the Corporation, in5 cluding the impacts described in clause (i). 

6 (i) OFFICERS AND EMPLOYEES.— 

7 (1) IN GENERAL.—Except as otherwise pro8 vided in this section, each officer, employee, and 

9 agent of the Corporation shall be— 

10 (A) selected and appointed by the Corpora11 tion; and 

12 (B) vested with such powers and duties as 

13 the Corporation may determine. 

14 (2) ADMINISTRATIVELY DETERMINED EMPLOY15 EES.— 

16 (A) APPOINTMENT; COMPENSATION; RE17 MOVAL.—Of the officers, employees, and agents 

18 appointed by the Corporation under paragraph 

19 (1), not more than 250 may be appointed, com20 pensated, or removed without regard to the pro21 visions of title 5, United States Code. 

22 (B) REINSTATEMENT.—Under such regu23 lations as the President may prescribe, an offi24 cer, employee, or agent appointed to a position 

25 under subparagraph (A) may be entitled, upon 


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1 removal from such position (unless the removal 

2 was for cause), to— 

3 (i) if the officer, employee, or agent 

4 occupied a position in the Federal Govern5 ment on the day before the date on which 

6 the officer, employee, or agent was ap7 pointed to the Corporation under subpara8 graph (A), reinstatement to that position; 

9 or 

10 (ii) appointment to a position of com11 parable grade and salary. 

12 (C) ADDITIONAL POSITIONS.—The officers, 

13 employees, and agents described in subpara14 graph (A) shall be in addition to officers, em15 ployees, and agents otherwise authorized by 

16 law, including in positions authorized under sec17 tion 5108 of title 5, United States Code. 

18 (D) RATES OF PAY FOR OFFICERS AND

19 EMPLOYEES.—The Corporation may set and 

20 adjust rates of basic pay for officers, employees, 

21 and agents appointed under subparagraph (A) 

22 without regard to the provisions of chapter 51 

23 or subchapter III of chapter 53 of title 5, 

24 United States Code, relating to classification of 


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1 positions and General Schedule pay rates, re2 spectively. 

3 (3) LIABILITY OF EMPLOYEES.— 

4 (A) IN GENERAL.—An individual who is a 

5 member of the Board or an officer or employee 

6 of the Corporation may not be liable under this 

7 Act with respect to any claim arising out of or 

8 resulting from any act or omission by the indi9 vidual within the scope of the employment of 

10 the individual in connection with any trans11 action by the Corporation. 

12 (B) RULE OF CONSTRUCTION.—Subpara13 graph (A) shall not be construed to limit the 

14 personal liability of an individual for— 

15 (i) criminal acts or omissions; 

16 (ii) willful or malicious misconduct; 

17 (iii) acts or omissions for the private 

18 gain of the individual or family members of 

19 the individual; or 

20 (iv) any other acts or omissions out21 side the scope of the employment of the in22 dividual. 

23 (C) CONFLICTS OF INTEREST.—The Cor24 poration shall establish and publish procedures 

25 for avoiding conflicts of interest on the part of 


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1 officers and employees of the Corporation and 

2 members of the Advisory Council established 

3 under subsection (j). 

4 (D) SAVINGS PROVISION.—Nothing in this 

5 paragraph shall be construed— 

6 (i) to affect— 

7 (I) any other immunities and 

8 protections that may be available to 

9 an individual described in subpara10 graph (A) under applicable law with 

11 respect to a transaction described in 

12 that subparagraph; or 

13 (II) any other right or remedy 

14 against the Corporation, against the 

15 United States under applicable law, or 

16 against any person other than an indi17 vidual described in subparagraph (A) 

18 participating in such a transaction; or 

19 (ii) to limit or alter in any way the 

20 immunities that are available under appli21 cable law for Federal officers and employ22 ees not described in this paragraph. 

23 (j) ADVISORY COUNCIL.— 

24 (1) IN GENERAL.—There is established within 

25 the Corporation an Advisory Council to advise the 


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1 Board on development objectives of the Corporation 

2 referred to in this subsection as the ‘‘Advisory Coun3 cil’’. 

4 (2) MEMBERSHIP.—The Advisory Council shall 

5 consist of not more than 9 members appointed by 

6 the Board, on the recommendation of the Chief Ex7 ecutive Officer and the Chief Development Officer of 

8 the Corporation, from among individuals who are 

9 broadly representative of— 

10 (A) nongovernmental organizations; 

11 (B) think tanks; 

12 (C) advocacy organizations; 

13 (D) foundations; and 

14 (E) other institutions engaged in manufac15 turing and workforce development. 

16 (3) FUNCTIONS.—The Board shall call upon 

17 members of the Advisory Council, either collectively 

18 or individually, to advise the Board with respect 

19 to— 

20 (A) the extent to which the Corporation is 

21 meeting the mandate of the Corporation; and 

22 (B) any suggestions for improvements with 

23 respect to meeting that mandate, including 

24 project development and implementation chal25 lenges and opportunities. 


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1 (4) PERMANENCE.—Section 14 of the Federal 

2 Advisory Committee Act (5 U.S.C. App.) shall not 

3 apply to the Advisory Council. 

4 SEC. 104. INSPECTOR GENERAL OF THE CORPORATION. 

5 (a) IN GENERAL.—Section 8G(a)(2) of the Inspector 

6 General Act of 1978 (5 U.S.C. App.) is amended by insert7 ing ‘‘the Industrial Finance Corporation of the United 

8 States,’’ after ‘‘the United States International Develop9 ment Finance Corporation,’’. 

10 (b) OVERSIGHT INDEPENDENCE.—Section 8G(a)(4) 

11 of the Inspector General Act of 1978 (5 U.S.C. App.) is 

12 amended— 

13 (1) in subparagraph (I), by striking ‘‘and’’ at 

14 the end; 

15 (2) in subparagraph (J), by adding ‘‘and’’ at 

16 the end; and 

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

18 ‘‘(K) with respect to the Industrial Fi19 nance Corporation of the United States, such 

20 term means the Board of Directors of the In21 dustrial Finance Corporation of the United 

22 States;’’. 


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1 TITLE II—AUTHORITIES 

2 SEC. 201. AUTHORITIES RELATING TO PROVISION OF SUP3 PORT. 

4 (a) IN GENERAL.—In carrying out this title, the Cor5 poration shall— 

6 (1) exercise the authorities of the Corporation 

7 only to the extent that such an exercise of author8 ity— 

9 (A) carries out a policy of the Corporation, 

10 as described in section 102(c); 

11 (B) mitigates risks to the taxpayers of the 

12 United States by sharing risks with private sec13 tor entities through co-financing and struc14 turing of tools; and 

15 (C) ensures that support provided under 

16 this title is in addition to private sector re17 sources by mobilizing private capital that would 

18 otherwise not be deployed without such support; 

19 and 

20 (2) determine— 

21 (A) the character and necessity of the obli22 gations and expenditures of the Corporation; 

23 and 


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1 (B) the manner in which the obligations 

2 and expenditures described in subparagraph (A) 

3 shall be incurred, allowed, and paid. 

4 (b) LENDING AND GUARANTIES.— 

5 (1) IN GENERAL.—The Corporation may make 

6 loans or guaranties upon such terms and conditions 

7 as the Corporation may determine. 

8 (2) APPLICABILITY OF FEDERAL CREDIT RE9 FORM ACT OF 1990.—Loans and guaranties issued 

10 under paragraph (1) shall be subject to the require11 ments of the Federal Credit Reform Act of 1990 (2 

12 U.S.C. 661 et seq.). 

13 (c) PROGRAMS AND FACILITIES.—The Corporation 

14 may create programs, facilities, or other entities deter15 mined necessary by the Corporation, for the purpose of 

16 providing liquidity in markets and sectors integral to the 

17 mission of the Corporation, by— 

18 (1) purchasing obligations or other interests di19 rectly from the issuers of those obligations or other 

20 interests; 

21 (2) purchasing obligations or other interests in 

22 secondary markets or otherwise; or 

23 (3) making loans, including loans or other ad24 vances secured by collateral. 

25 (d) EQUITY INVESTMENTS.— 


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1 (1) IN GENERAL.—The Corporation may, as a 

2 minority investor, support projects with funds or use 

3 other mechanisms for the purpose of purchasing, 

4 and may make and fund commitments to purchase, 

5 invest in, make pledges in respect of, or otherwise 

6 acquire, equity or quasi-equity securities or shares or 

7 financial interests of any entity, including as a lim8 ited partner or other investor in investment funds, 

9 upon such terms and conditions as the Corporation 

10 may determine. 

11 (2) GUIDELINES AND CRITERIA.—The Corpora12 tion shall develop guidelines and criteria to require 

13 that the use of the authority under paragraph (1) 

14 with respect to a project has a clearly defined devel15 opmental purpose, taking into account the following 

16 objectives: 

17 (A) The support for the project would be 

18 more likely than not to substantially reduce or 

19 overcome the effect of an identified market im20 perfection. 

21 (B) The project would not have proceeded, 

22 or would have been substantially delayed, with23 out the support. 


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1 (C) The support will contribute positively 

2 to the long-term commercial sustainability of 

3 the target industry in the United States. 

4 (D) The support furthers a policy of the 

5 Corporation described in section 102(c). 

6 (3) LIMITATIONS ON EQUITY INVESTMENTS.— 

7 (A) PER PROJECT LIMIT.—The aggregate 

8 amount of support provided under this sub9 section with respect to any project shall not ex10 ceed 30 percent of the aggregate amount of all 

11 equity investment made to the project at the 

12 time that the Corporation approves support of 

13 the project, except that such percentage may be 

14 raised with the unanimous consent of the 

15 Board. 

16 (B) TOTAL LIMIT.—Support provided 

17 under this subsection shall be limited to not 

18 more than 35 percent of the aggregate exposure 

19 of the Corporation on the date on which that 

20 support is provided, except that such percent21 age may be raised with the unanimous consent 

22 of the Board. 

23 (4) SALES AND LIQUIDATION OF POSITION.— 

24 The Corporation shall seek to sell and liquidate any 

25 support for a project provided under this subsection 


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1 as soon as commercially feasible, taking into consid2 eration— 

3 (A) the actions of other similar investors in 

4 the project; 

5 (B) how the interests of the taxpayers of 

6 the United States will be served through equity 

7 investments; and 

8 (C) the national security interests of the 

9 United States. 

10 (5) TIMETABLE.—The Corporation shall create 

11 a project-specific timetable for support provided 

12 under this subsection. 

13 (e) PROMOTION OF AND SUPPORT FOR PRIVATE IN14 VESTMENT OPPORTUNITIES.— 

15 (1) IN GENERAL.—In order to carry out the 

16 policies described in section 102(c), the Corporation 

17 may initiate and support, through financial partici18 pation, incentive grants, or otherwise, and under 

19 such terms and conditions as the Corporation may 

20 determine, feasibility studies for the planning, devel21 opment, and management of, and procurement for, 

22 potential bilateral and multilateral projects eligible 

23 for support under this title, including training activi24 ties undertaken in connection with those projects, 

25 for the purpose of promoting investment in those 


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1 projects and the identification, assessment, sur2 veying, and promotion of private investment oppor3 tunities, utilizing wherever feasible and effective, the 

4 facilities of private investors. 

5 (2) CONTRIBUTIONS TO COSTS.—The Corpora6 tion shall, to the maximum extent practicable, re7 quire any person receiving funds under this sub8 section to— 

9 (A) share the costs of feasibility studies 

10 and other project planning services for which 

11 support is provided under this subsection; and 

12 (B) if the person succeeds in project imple13 mentation, reimburse the Corporation for the 

14 amount of support provided by the Corporation 

15 to the person under this subsection. 

16 (f) SPECIAL PROJECTS AND PROGRAMS.—The Cor17 poration may administer and manage special projects and 

18 programs in support of specific transactions undertaken 

19 by the Corporation, including programs of financial and 

20 advisory support that provide private technical, profes21 sional, or managerial assistance in the development of 

22 human resources, skills, technology, capital savings, or in23 termediate financial and investment institutions or co24 operatives. 


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1 (g) ASSET ACQUISITION.—With respect to asset ac2 quisition, the Corporation may— 

3 (1) acquire tangible and intangible assets at 

4 fair market value; and 

5 (2) engage in purchase order guarantees. 

6 (h) ENTERPRISE FUNDS.— 

7 (1) IN GENERAL.—The Corporation may, fol8 lowing consultation with the Secretary of the Treas9 ury and the heads of other relevant Federal depart10 ments or agencies, establish and operate enterprise 

11 funds in accordance with this subsection. 

12 (2) PRIVATE CHARACTER OF FUNDS.—Nothing 

13 in this subsection may be construed to make— 

14 (A) an enterprise fund established or oper15 ated by the Corporation an agency or establish16 ment of the United States Government; or 

17 (B) any officer, employee, or member of 

18 the board of directors of an enterprise fund de19 scribed in subparagraph (A) an officer or em20 ployee of the United States. 

21 (3) PURPOSES FOR WHICH SUPPORT MAY BE

22 PROVIDED.—The Corporation, subject to the ap23 proval of the Board, may designate private, non24 profit organizations as eligible to receive support 

25 under this subsection for the following purposes: 


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1 (A) To promote the development of domes2 tic manufacturing, the commercialization of ad3 vanced technologies, and the building of resil4 ient supply chains. 

5 (B) To facilitate access to credit or capital 

6 for small- and medium-sized enterprises— 

7 (i) in industry sectors or geographic 

8 areas with limited means of accessing cred9 it on market terms; or 

10 (ii) with owners who are members of 

11 demographic groups that have historically 

12 had limited access to private capital. 

13 (C) To complement the work of the Small 

14 Business Administration and the Economic De15 velopment Administration of the Department of 

16 Commerce to improve the overall business-ena17 bling environment by financing the expansion of 

18 the private business sector. 

19 (D) To make financially sustainable invest20 ments designed to generate measurable social 

21 benefits and build technical capacity in addition 

22 to financial returns. 

23 (4) OPERATION OF FUNDS.— 

24 (A) EXPENDITURES.—Funds made avail25 able to an enterprise fund established or operVerDate Sep 11 2014 20:28 Aug 13, 2021 Jkt 019200 PO 00000 Frm 00033 Fmt 6652 Sfmt 6201 E:\BILLS\S2662.IS S2662

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1 ated under this subsection shall be expended at 

2 the minimum rate necessary to make timely 

3 payments for projects and activities carried out 

4 under this subsection. 

5 (B) ADMINISTRATIVE EXPENSES.—Not 

6 more than 3 percent per annum of the funds 

7 made available to an enterprise fund established 

8 or operated under this subsection may be obli9 gated or expended for the administrative ex10 penses of the enterprise fund. 

11 (5) BOARD OF DIRECTORS.—Each enterprise 

12 fund established or operated under this subsection 

13 shall be governed by a board of directors comprised 

14 of private citizens of the United States— 

15 (A) who— 

16 (i) shall be appointed by the President 

17 after consultation with the chairmen and 

18 ranking members of the appropriate con19 gressional committees; 

20 (ii) have pursued careers in innovative 

21 technologies or manufacturing; and 

22 (iii) have demonstrated expertise in 

23 investment activities; and 

24 (B) a majority of whom shall— 


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1 (i) be citizens of the United States; 

2 and 

3 (ii) have relevant experience relating 

4 to the purposes described in paragraph (3). 

5 (6) REPORTS.—Not later than 1 year after the 

6 date on which an enterprise fund is established 

7 under this subsection, and annually thereafter until 

8 the enterprise fund terminates in accordance with 

9 paragraph (9), the board of directors of the enter10 prise fund shall— 

11 (A) submit to the appropriate congres12 sional committees a report— 

13 (i) detailing the administrative ex14 penses of the enterprise fund during the 

15 year covered by the report; 

16 (ii) describing the operations, activi17 ties, engagement with civil society and rel18 evant local private sector entities, develop19 ment objectives and outcomes, financial 

20 condition, and accomplishments of the en21 terprise fund during the year covered by 

22 the report; 

23 (iii) describing the results of any 

24 audit conducted under paragraph (7) dur25 ing the year covered by the report; and 


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1 (iv) describing how audits conducted 

2 under paragraph (7) during the year cov3 ered by the report are informing the oper4 ations and activities of the enterprise fund 

5 for the year in which the report is sub6 mitted; and 

7 (B) publish, on a publicly available inter8 net website of the enterprise fund, each report 

9 required under subparagraph (A). 

10 (7) OVERSIGHT.— 

11 (A) INSPECTOR GENERAL PERFORMANCE

12 AUDITS.— 

13 (i) IN GENERAL.—The Inspector Gen14 eral of the Corporation shall conduct peri15 odic audits of the activities of each enter16 prise fund established under this sub17 section. 

18 (ii) CONSIDERATION.—In conducting 

19 an audit under clause (i), the Inspector 

20 General shall assess whether the activities 

21 of the enterprise fund— 

22 (I) support the purposes de23 scribed in paragraph (3); 

24 (II) result in profitable private 

25 sector investing; and 


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1 (III) generate measurable eco2 nomic and social benefits. 

3 (B) RECORDKEEPING REQUIREMENTS.— 

4 The Corporation shall ensure that each enter5 prise fund receiving support under this sub6 section— 

7 (i) keeps separate accounts with re8 spect to that support; and 

9 (ii) maintains such records as may be 

10 reasonably necessary to facilitate effective 

11 audits under this paragraph. 

12 (8) RETURN OF FUNDS TO THE CORPORATE

13 CAPITAL ACCOUNT.—Any funds resulting from any 

14 liquidation, dissolution, or winding up of an enter15 prise fund, in whole or in part, shall be returned to 

16 the Corporate Capital Account established under 

17 section 304(b). 

18 (9) TERMINATION.—The authority of an enter19 prise fund to provide support under this subsection 

20 shall terminate on the earlier of— 

21 (A) the date that is 10 years after the date 

22 on which amounts from the enterprise fund are 

23 first expended; or 

24 (B) the date on which the enterprise fund 

25 is liquidated. 


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1 (i) STRUCTURED FINANCE.—With respect to struc2 tured finance, the Corporation may— 

3 (1) securitize an investment described in any of 

4 subsections (a) through (h); and 

5 (2) design and provide seed funding for new fi6 nancing vehicles that aggregate invested funds from 

7 businesses with not more than 500 employees in 

8 order to attract larger private capital providers, such 

9 as pension funds. 

10 (j) SMALL BUSINESS DEVELOPMENT.— 

11 (1) IN GENERAL.—The Corporation, in coopera12 tion with appropriate departments, agencies, and in13 strumentalities of the United States, as well as pri14 vate entities and others, shall undertake activities to 

15 broaden the participation of United States small 

16 businesses and cooperatives, and other small United 

17 States investors, in the development of small private 

18 enterprise. 

19 (2) OUTREACH TO MINORITY-OWNED AND

20 WOMEN-OWNED BUSINESSES.— 

21 (A) IN GENERAL.—The Corporation shall 

22 collect data on the involvement of minority- and 

23 women-owned businesses in projects, includ24 ing— 


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1 (i) the amount of insurance and fi2 nancing provided by the Corporation to 

3 those businesses in connection with 

4 projects supported by the Corporation; and 

5 (ii) to the extent such information is 

6 available, the involvement of those busi7 nesses in procurement activities conducted 

8 or supported by the Corporation. 

9 (B) INCLUSION IN ANNUAL REPORT.—The 

10 Corporation shall include, in each annual report 

11 submitted under section 403, the aggregate 

12 data collected under this paragraph, in such 

13 form as to quantify the effectiveness of the out14 reach activities of the Corporation with respect 

15 to minority- and women-owned businesses. 

16 (k) PRIVATE INVESTMENT VEHICLES.—In addition 

17 to the other authorities under this section, the Corporation 

18 may, as the Chief Executive Officer of the Corporation 

19 determines necessary, create or participate in any other 

20 investment vehicle used by investors in the private sector, 

21 as determined by the Chief Executive Officer. 

22 SEC. 202. TERMS AND CONDITIONS. 

23 (a) IN GENERAL.—Except as provided in subsection 

24 (b), support provided by the Corporation under this title 


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1 shall be on such terms and conditions as the Corporation 

2 may prescribe. 

3 (b) REQUIREMENTS.—The following requirements 

4 apply to support provided by the Corporation under this 

5 title: 

6 (1) The Corporation shall provide support using 

7 authorities under this title only if it is necessary— 

8 (A) to alleviate a credit or capital market 

9 imperfection; or 

10 (B) to achieve specified development objec11 tives of the Government by providing support in 

12 the most efficient way to meet those objectives 

13 on a case-by-case basis. 

14 (2) The final maturity of a loan made or guar15 anteed by the Corporation shall not exceed the lesser 

16 of— 

17 (A) 30 years; or 

18 (B) the debt servicing capabilities of the 

19 project to be financed by the loan, as deter20 mined by the Corporation. 

21 (3) The Corporation shall, with respect to pro22 viding any loan guaranty to a project, require the 

23 parties to the project to bear the risk of loss in an 

24 amount equal to not less than 20 percent of the 


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1 guaranteed support by the Corporation in the 

2 project. 

3 (4) The Corporation may not make or guar4 antee a loan unless the Corporation determines that 

5 the borrower or lender is responsible and that ade6 quate provision is made for servicing the loan on 

7 reasonable terms and protecting the financial inter8 est of the United States. 

9 (5) The interest rate for direct loans and inter10 est supplements on guaranteed loans shall be set by 

11 reference to a benchmark interest rate (yield) on 

12 marketable Treasury securities or other widely rec13 ognized or appropriate benchmarks with a similar 

14 maturity to the loans being made or guaranteed, as 

15 determined in consultation with the Director of the 

16 Office of Management and Budget and the Secretary 

17 of the Treasury. The Corporation shall establish ap18 propriate minimum interest rates for loans, guaran19 ties, and other instruments as necessary. 

20 (6) The minimum interest rate for new loans as 

21 established by the Corporation shall be adjusted pe22 riodically to take account of changes in the interest 

23 rate of the benchmark financial instrument. 

24 (7)(A) The Corporation shall set fees or pre25 miums for support provided under this title at levels 


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1 that minimize the cost to the Government while sup2 porting achievement of the objectives of support. 

3 (B) The Corporation shall review fees for loan 

4 guaranties periodically to ensure that the fees as5 sessed on new loan guaranties are at a level suffi6 cient to cover the most recent estimates of the Cor7 poration of the costs of the Corporation. 

8 (8) Any loan guaranty provided by the Corpora9 tion shall be conclusive evidence that— 

10 (A) the guaranty has been properly ob11 tained; 

12 (B) the loan qualified for the guaranty; 

13 and 

14 (C) but for fraud or material misrepresen15 tation by the holder of the guaranty, the guar16 anty is presumed to be valid, legal, and enforce17 able. 

18 (9) The Corporation shall prescribe explicit 

19 standards for use in periodically assessing the credit 

20 risk of new and existing direct loans or guaranteed 

21 loans. 

22 (10) The Corporation may not make loans or 

23 loan guaranties except to the extent that budget au24 thority to cover the costs of the loans or guaranties 

25 is provided in advance in an appropriations Act, as 


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1 required by section 504 of the Federal Credit Re2 form Act of 1990 (2 U.S.C. 661c). 

3 (11) The Corporation shall rely upon specific 

4 standards to assess the developmental and strategic 

5 value of projects and should only provide the min6 imum level of support necessary in order to support 

7 such projects. 

8 (12) Any loan or loan guaranty made by the 

9 Corporation should be provided on a senior basis or 

10 pari passu with other senior debt unless there is a 

11 substantive policy rationale to provide that support 

12 otherwise. 

13 SEC. 203. PAYMENT OF LOSSES. 

14 (a) PAYMENTS FOR DEFAULTS ON GUARANTEED

15 LOANS.— 

16 (1) IN GENERAL.—If the Corporation deter17 mines that the holder of a loan guaranteed by the 

18 Corporation suffers a loss as a result of a default by 

19 a borrower on the loan, the Corporation shall pay to 

20 the holder the percent of the loss, as specified in the 

21 guaranty contract, after the holder of the loan has 

22 made such further collection efforts and instituted 

23 such enforcement proceedings as the Corporation 

24 may require. 


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1 (2) SUBROGATION.—Upon making a payment 

2 described in paragraph (1), the Corporation shall en3 sure the Corporation will be subrogated to all the 

4 rights of the recipient of the payment. 

5 (3) RECOVERY EFFORTS.—The Corporation 

6 shall pursue recovery from the borrower of the 

7 amount of any payment made under paragraph (1) 

8 with respect to the loan. 

9 (b) LIMITATION ON PAYMENTS.— 

10 (1) IN GENERAL.—Except as provided in para11 graph (2), compensation for insurance, reinsurance, 

12 or a guaranty issued under this title shall not exceed 

13 the dollar value of the tangible or intangible con14 tributions or commitments made in the project, plus 

15 interest, earnings, or profits actually accrued on 

16 those contributions or commitments, to the extent 

17 provided by the insurance, reinsurance, or guaranty. 

18 (2) EXCEPTION.— 

19 (A) IN GENERAL.—The Corporation may 

20 provide that— 

21 (i) appropriate adjustments in the in22 sured dollar value be made to reflect the 

23 replacement cost of project assets; and 

24 (ii) compensation for a claim of loss 

25 under insurance of an equity investment 


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1 under section 201(d) may be computed on 

2 the basis of the net book value attributable 

3 to the equity investment on the date of 

4 loss. 

5 (3) ADDITIONAL LIMITATION.— 

6 (A) IN GENERAL.—Notwithstanding para7 graph (2)(A)(ii) and except as provided in sub8 paragraph (B), the Corporation shall limit the 

9 amount of direct insurance and reinsurance 

10 issued under section 201 with respect to a 

11 project so as to require that the insured and af12 filiates of the insured bear the risk of loss for 

13 not less than 10 percent of the amount of the 

14 exposure of the Corporation to that insured and 

15 affiliates of the insured in the project. 

16 (B) EXCEPTION.—The limitation under 

17 subparagraph (A) shall not apply to direct in18 surance or reinsurance of loans provided by 

19 banks or other financial institutions to unre20 lated parties. 

21 (c) ACTIONS BY ATTORNEY GENERAL.—The Attor22 ney General shall take such action as may be appropriate 

23 to enforce any right accruing to the United States as a 

24 result of the issuance of any loan or loan guaranty under 

25 this title. 


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1 (d) RULE OF CONSTRUCTION.—Nothing in this sec2 tion shall be construed to preclude any forbearance for the 

3 benefit of a borrower that may be agreed upon by the par4 ties to a loan guaranteed by the Corporation if budget au5 thority for any resulting costs to the Government, as de6 fined in section 502 of the Federal Credit Reform Act of 

7 1990 (2 U.S.C. 661a), is available. 

8 TITLE III—ADMINISTRATIVE 

9 AND GENERAL PROVISIONS 

10 SEC. 301. OPERATIONS. 

11 (a) IN GENERAL.—The Corporation may sue and be 

12 sued in its corporate name. 

13 (b) JUDICIAL REMEDY.—A court of competent juris14 diction may prescribe a judicial remedy to the prevailing 

15 party in a lawsuit involving the Corporation. 

16 (c) CLAIMS SETTLEMENT.— 

17 (1) IN GENERAL.—The Corporation may, on 

18 such terms and conditions as the Corporation may 

19 determine— 

20 (A) settle claims arising as a result of sup21 port provided under title II; and 

22 (B) arbitrate disputes arising as a result of 

23 support provided under title II with the consent 

24 of the parties. 


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1 (2) SETTLEMENTS CONCLUSIVE.—Notwith2 standing any other provision of law, a payment 

3 made under any settlement agreement entered into 

4 under paragraph (1)(A), or as a result of an arbitra5 tion award awarded under paragraph (1)(B), shall 

6 be final and conclusive. 

7 (d) ELECTRONIC PAYMENTS AND DOCUMENTS.—The 

8 Corporation shall implement policies to accept electronic 

9 documents and electronic payments in every program of 

10 the Corporation. 

11 SEC. 302. CORPORATE POWERS. 

12 (a) IN GENERAL.—The Corporation— 

13 (1) may adopt, alter, and use a seal, which may 

14 include an identifiable symbol of the United States; 

15 (2) notwithstanding division C of subtitle I of 

16 title 41, United States Code, may make and perform 

17 with any person contracts, including no-cost con18 tracts (as defined by the Corporation), grants, and 

19 other agreements, that are necessary for carrying 

20 out the functions of the Corporation; 

21 (3) may lease, purchase, or otherwise acquire, 

22 improve, and use real property that is necessary to 

23 carry out the functions of the Corporation; 

24 (4) may accept cash gifts or donations of serv25 ices or of property (real, personal, or mixed), tanVerDate Sep 11 2014 20:28 Aug 13, 2021 Jkt 019200 PO 00000 Frm 00047 Fmt 6652 Sfmt 6201 E:\BILLS\S2662.IS S2662

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1 gible or intangible, for the purpose of carrying out 

2 the functions of the Corporation; 

3 (5) may use the United States mails in the 

4 same manner and on the same conditions as the Ex5 ecutive departments (as defined in section 101 of 

6 title 5, United States Code); 

7 (6) may contract with individuals for personal 

8 services, who shall not be considered Federal em9 ployees for any provision of law administered by the 

10 Director of the Office of Personnel Management; 

11 (7) may hire or obtain passenger motor vehi12 cles; 

13 (8) may acquire, hold, or dispose of, upon such 

14 terms and conditions as the Corporation may deter15 mine, any property, real, personal, or mixed, tan16 gible or intangible, or any interest in such property; 

17 (9) may lease office space for the Corporation’s 

18 own use, with the obligation of amounts for such 

19 lease limited to the current fiscal year for which pay20 ments are due until the expiration of the current 

21 lease under predecessor authority, as of the day be22 fore the date of enactment of this Act; 

23 (10) may indemnify directors, officers, employ24 ees, and agents of the Corporation for liabilities and 


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1 expenses incurred in connection with their activities 

2 on behalf of the Corporation; 

3 (11) notwithstanding any other provision of 

4 law, may represent itself or contract for representa5 tion in any legal or arbitral proceeding; 

6 (12) may exercise any priority of the Govern7 ment of the United States in collecting debts from 

8 bankrupt, insolvent, or decedents’ estates; 

9 (13) may collect, notwithstanding section 

10 3711(g)(1) of title 31, United States Code, or com11 promise any obligations assigned to or held by the 

12 Corporation, including any legal or equitable rights 

13 accruing to the Corporation; 

14 (14) may sell direct investments of the Corpora15 tion to private investors upon such terms and condi16 tions as the Corporation may determine; and 

17 (15) shall have such other powers as may be 

18 necessary and incident to carrying out the functions 

19 of the Corporation. 

20 (b) TREATMENT OF PROPERTY.—Notwithstanding 

21 any other provision of law relating to the acquisition, han22 dling, or disposal of property by the United States, the 

23 Corporation shall have the right in its discretion to com24 plete, recondition, reconstruct, renovate, repair, maintain, 


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1 operate, or sell any property acquired by the Corporation 

2 pursuant to the provisions of this Act. 

3 SEC. 303. MAXIMUM CONTINGENT LIABILITY. 

4 (a) IN GENERAL.—The maximum contingent liability 

5 of the Corporation outstanding at any time shall not ex6 ceed in the aggregate the greater of— 

7 (1) the amount specified in subsection (b); or 

8 (2) an amount equal to 10 times the balance of 

9 the Corporate Capital Account. 

10 (b) AMOUNT SPECIFIED.— 

11 (1) INITIAL 5-YEAR PERIOD.—The amount 

12 specified in this subsection for the 5-year period be13 ginning on the date of enactment of this Act is 

14 $500,000,000,000. 

15 (2) SUBSEQUENT 5-YEAR PERIODS.—Not later 

16 than 5 years after the date of enactment of this Act, 

17 and not less frequently than every 5 years there18 after, the amount specified in paragraph (1) shall be 

19 adjusted to reflect the percentage of the increase (if 

20 any) in the average of the Consumer Price Index for 

21 All Urban Consumers published by the Bureau of 

22 Labor Statistics of the Department of Labor during 

23 the preceding 5-year period. 

24 SEC. 304. CORPORATE FUNDS. 

25 (a) DEFINITIONS.—In this section: 


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1 (1) ADMINISTRATIVE EXPENSES.—The term 

2 ‘‘administrative expenses’’ does not include project3 specific transaction costs. 

4 (2) COST.—The term ‘‘cost’’ has the meaning 

5 given the term in section 502 of the Federal Credit 

6 Reform Act of 1990 (2 U.S.C. 661a). 

7 (3) INFORMATION TECHNOLOGY.—The term 

8 ‘‘information technology’’ has the meaning given the 

9 term in section 11101 of title 40, United States 

10 Code. 

11 (4) PROJECT-SPECIFIC TRANSACTION COSTS.— 

12 The term ‘‘project-specific transaction costs’’— 

13 (A) means those costs incurred by the Cor14 poration for travel, legal expenses, and direct 

15 and indirect costs incurred in claims settle16 ments associated with the provision of support 

17 under title; and 

18 (B) does not include information tech19 nology. 

20 (b) CORPORATE CAPITAL ACCOUNT.—There is estab21 lished in the Treasury of the United States a fund to be 

22 known as the ‘‘Corporate Capital Account’’ to carry out 

23 the purposes of the Corporation. 

24 (c) FUNDING.—The Corporate Capital Account shall 

25 consist of— 


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1 (1) fees charged and collected pursuant to sub2 section (d); 

3 (2) any amounts received pursuant to sub4 section (f); 

5 (3) investments and returns on such invest6 ments pursuant to subsection (h); 

7 (4) unexpended balances transferred to the Cor8 poration; 

9 (5) payments received in connection with settle10 ments of all insurance and reinsurance claims of the 

11 Corporation; and 

12 (6) all other collections transferred to or earned 

13 by the Corporation, excluding the cost of loans and 

14 loan guaranties. 

15 (d) FEE AUTHORITY.—Fees may be charged and col16 lected for providing services in amounts to be determined 

17 by the Corporation. 

18 (e) USES.— 

19 (1) IN GENERAL.—Subject to Acts making ap20 propriations, the Corporation is authorized to pay— 

21 (A) the cost of loans and loan guaranties; 

22 (B) administrative expenses of the Cor23 poration; 


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1 (C) for the cost of providing support au2 thorized by subsections (c), (e), (f), and (g) of 

3 section 201; and 

4 (D) project-specific transaction costs. 

5 (2) INCOME AND REVENUE.—In order to carry 

6 out the purposes of the Corporation, all collections 

7 transferred to or earned by the Corporation, exclud8 ing the cost of loans and loan guaranties, shall be 

9 deposited into the Corporate Capital Account and 

10 shall be available to carry out its purpose, including 

11 without limitation— 

12 (A) payment of all insurance and reinsur13 ance claims of the Corporation; 

14 (B) repayments to the Treasury of 

15 amounts borrowed under subsection (f); and 

16 (C) dividend payments to the Treasury 

17 under subsection (g). 

18 (f) FULL FAITH AND CREDIT.— 

19 (1) IN GENERAL.—All support provided pursu20 ant to predecessor authorities or title II shall con21 tinue to constitute obligations of the United States, 

22 and the full faith and credit of the United States is 

23 hereby pledged for the full payment and perform24 ance of such obligations. 


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1 (2) BONDS.—With the approval of the Sec2 retary of the Treasury, the Corporation is author3 ized to issue bonds, notes, debentures, and other 

4 similar obligations, subject to the maximum contin5 gent liability established in Section 303. Such obli6 gations shall be in such forms and denominations, 

7 shall have such maturities, shall bear such rates of 

8 interest, shall be subject to such terms and condi9 tions, and shall be issued in such manner and sold 

10 at such prices as may be prescribed by the Corpora11 tion with the approval of the Secretary of the Treas12 ury. Such obligations shall be fully and uncondition13 ally guaranteed both as to interest and principal by 

14 the United States, and such guaranty shall be ex15 pressed on the face thereof, and such obligations 

16 shall be lawful investments and may be accepted as 

17 security for all fiduciary, trust, and public funds the 

18 investment or deposit of which shall be under the 

19 authority or control of the United States or any offi20 cer or officers thereof. 

21 (3) AUTHORITY TO BORROW.—The Corporation 

22 is authorized to borrow from the Treasury such 

23 sums as may be necessary to fulfill such obligations 

24 of the United States and any such borrowing shall 

25 be at a rate determined by the Secretary of the 


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1 Treasury, taking into consideration the current aver2 age market yields on outstanding marketable obliga3 tions of the United States of comparable maturities, 

4 for a period jointly determined by the Corporation 

5 and the Secretary, and subject to such terms and 

6 conditions as the Secretary may require. 

7 (4) TREATMENT OF DEBT.—Any obligation of, 

8 or fully guaranteed by, the Corporation shall be eli9 gible for purchase under section 14(b)(2) of the 

10 Federal Reserve Act (12 U.S.C. 355(b)(2)). 

11 (g) DIVIDENDS.—The Board, in consultation with 

12 the Director of the Office of Management and Budget, 

13 shall annually assess a dividend payment to the Treasury 

14 if the Corporation’s insurance portfolio is more than 100 

15 percent reserved. 

16 (h) INVESTMENT AUTHORITY.— 

17 (1) IN GENERAL.—The Corporation may re18 quest the Secretary of the Treasury to invest such 

19 portion of the Corporate Capital Account as is not, 

20 in the Corporation’s judgment, required to meet the 

21 current needs of the Corporate Capital Account. 

22 (2) FORM OF INVESTMENTS.—Such invest23 ments shall be made by the Secretary of the Treas24 ury in public debt obligations, with maturities suit25 able to the needs of the Corporate Capital Account, 


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1 as determined by the Corporation, and bearing inter2 est at rates determined by the Secretary, taking into 

3 consideration current market yields on outstanding 

4 marketable obligations of the United States of com5 parable maturities. 

6 (i) COLLECTIONS.—Interest earnings made pursuant 

7 to subsection (h), earnings collected related to equity in8 vestments, and amounts, excluding fees related to insur9 ance or reinsurance, collected pursuant to subsection (d), 

10 shall not be collected for any fiscal year except to the ex11 tent provided in advance in appropriations Acts. 

12 (j) AUTHORIZATION OF APPROPRIATIONS.—There is 

13 authorized to be appropriated $50,000,000,000 to the 

14 Corporate Capital Account. 

15 TITLE IV—MONITORING, 

16 EVALUATION, AND REPORTING 

17 SEC. 401. ESTABLISHMENT OF RISK AND AUDIT COMMIT18 TEES. 

19 (a) IN GENERAL.—Not later than 1 year after the 

20 date of enactment of this Act, the Corporation shall estab21 lish— 

22 (1) a risk committee; and 

23 (2) an audit committee. 

24 (b) PURPOSE.—The purpose of the committees estab25 lished under subsection (a) shall be to assist the Board 


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1 in fulfilling the duties and responsibilities of the Board 

2 under section 201(a). 

3 (c) DUTIES AND RESPONSIBILITIES OF RISK COM4 MITTEE.—Subject to the direction of the Board, the risk 

5 committee established under subsection (a) shall be re6 sponsible for— 

7 (1) formulating risk management policies of the 

8 operations of the Corporation; 

9 (2) reviewing and providing guidance on the op10 eration of the global risk management framework of 

11 the Corporation; 

12 (3) developing policies for enterprise risk man13 agement, risk monitoring, and the management of 

14 strategic, reputational, regulatory, operational, devel15 opmental, environmental, social, and financial risks; 

16 and 

17 (4) developing the risk profile of the Corpora18 tion, including a risk management and compliance 

19 framework and governance structure to support such 

20 framework. 

21 (d) DUTIES AND RESPONSIBILITIES OF AUDIT COM22 MITTEE.—Subject to the direction of the Board, the audit 

23 committee established under subsection (a) be responsible 

24 for— 

25 (1) the integrity of— 


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1 (A) the financial reporting of the Corpora2 tion; 

3 (B) systems of internal controls relating to 

4 finance and accounting of the Corporation; and 

5 (C) the financial statements of the Cor6 poration; 

7 (2) the performance of the internal audit func8 tion of the Corporation; and 

9 (3) the compliance of the Corporation with legal 

10 and regulatory requirements relating to the finances 

11 of the Corporation. 

12 SEC. 402. PERFORMANCE MEASURES, EVALUATION, AND 

13 LEARNING. 

14 (a) IN GENERAL.—Not later than 1 year after the 

15 date of enactment of this Act, the Corporation shall de16 velop a performance measurement system to— 

17 (1) evaluate and monitor projects; and 

18 (2) guide future projects. 

19 (b) CONSIDERATIONS.—In developing the perform20 ance measurement system required under subsection (a), 

21 the Corporation shall— 

22 (1) develop an impact measurement system for 

23 measuring the net effect of the activities of the Cor24 poration on the policies described in section 102(c); 


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1 (2) develop a mechanism for ensuring that sup2 port provided by the Corporation for a project is in 

3 addition to private investment for the project; 

4 (3) develop standards for, and a method for en5 suring, appropriate financial performance of the 

6 portfolio of the Corporation; and 

7 (4) develop standards for, and a method for en8 suring, appropriate performance of the portfolio of 

9 the Corporation, including— 

10 (A) measurement of the projected and ex 

11 post impact of a project; and 

12 (B) the information necessary to comply 

13 with section 403. 

14 (c) PUBLIC AVAILABILITY OF CERTAIN INFORMA15 TION.—On a regular basis, the Corporation shall make 

16 available to the public information relating to— 

17 (1) support provided by the Corporation under 

18 title II; and 

19 (2) performance metrics about that support. 

20 (d) CONSULTATION.—In developing the performance 

21 measurement system required under subsection (a), the 

22 Corporation shall consult with— 

23 (1) the Advisory Council established under sec24 tion 103(j); and 


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1 (2) other stakeholders and interested parties 

2 engaged in the policy of the Corporation described in 

3 section 102(c). 

4 SEC. 403. ANNUAL REPORT. 

5 (a) IN GENERAL.—Not later than October 1 of each 

6 year, the Corporation shall submit to the appropriate con7 gressional committees a complete and detailed report of 

8 the operations of the Corporation during the preceding fis9 cal year, including an assessment of— 

10 (1) the impacts of projects on the policies de11 scribed in section 102(c); 

12 (2) the extent to which the operations of the 

13 Corporation complement or are compatible with the 

14 domestic economic development programs of the 

15 Federal Government; 

16 (3) the institutional linkages of the Corporation 

17 with other relevant Federal agencies and efforts to 

18 strengthen those linkages; and 

19 (4) the compliance of projects with Federal law 

20 and policies that govern the support of the Corpora21 tion for projects promulgated or otherwise adminis22 tered by the Corporation. 

23 (b) ELEMENTS.—Each report required under sub24 section (a) shall include analyses of the effects of projects, 

25 including— 


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1 (1) reviews and analyses of— 

2 (A) the desired outcomes for projects and 

3 whether or not the Corporation is meeting the 

4 associated metrics, goals, and development ob5 jectives, including, to the extent practicable, 

6 during the years after conclusion of projects; 

7 (B) the effect of the support of the Cor8 poration on access to capital; 

9 (C) ways in which the Corporation ad10 dresses identifiable market gaps or inefficien11 cies; and 

12 (D) what impact, if any, the support de13 scribed in subparagraph (B) has on access to 

14 credit for a specific project or sector; 

15 (2) projections of— 

16 (A) outcomes of projects and whether sup17 port for those projects are meeting performance 

18 measures associated with those projects— 

19 (i) during the start-up phase of those 

20 projects; and 

21 (ii) throughout the duration of the 

22 those projects; and 

23 (B) the value of private sector assets 

24 brought to bear relative to the amount of supVerDate Sep 11 2014 20:28 Aug 13, 2021 Jkt 019200 PO 00000 Frm 00061 Fmt 6652 Sfmt 6201 E:\BILLS\S2662.IS S2662

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1 port provided by the Corporation and the value 

2 of any other public sector support; and 

3 (3) an assessment of the extent to which the 

4 Corporation has applied lessons learned from moni5 toring and evaluating activities of the Corporation 

6 and annual reports from previous years compiled by 

7 the Corporation to projects. 

8 SEC. 404. QUARTERLY REPORT. 

9 (a) IN GENERAL.—Not later than 30 days after the 

10 date of enactment of this Act, and quarterly thereafter, 

11 the Corporation shall submit to the appropriate congres12 sional committees a detailed report that— 

13 (1) with respect to the first report submitted 

14 under this section, describes the progress of the Cor15 poration with respect to the appointment and, if ap16 plicable, the confirmation of— 

17 (A) members of the Board; 

18 (B) the Chief Executive Officer of the Cor19 poration; 

20 (C) the Deputy Chief Executive Officer of 

21 the Corporation; and 

22 (D) other officers of the Corporation de23 scribed in section 103(a); and 

24 (2) with respect to each report submitted there25 after, covers the period beginning on the date of the 


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1 most recent submission of a report under this sec2 tion and describes— 

3 (A) new activities of the Corporation; and 

4 (B) any activities of the Corporation that 

5 have concluded. 

6 (b) CONTENTS.—Each report submitted under sub7 section (a) shall include, with respect to support provided 

8 by the Corporation— 

9 (1) the name of the entity receiving the sup10 port; 

11 (2) the location of the entity receiving the sup12 port; 

13 (3) the amount of support provided; 

14 (4) the nature of the support; 

15 (5) if applicable, the term or duration during 

16 which the Corporation will provide the support; 

17 (6) if applicable, the term over which the sup18 port will be repaid to the Corporation; and 

19 (7) any other relevant details determined im20 portant or necessary by the Chief Executive Officer 

21 of the Corporation. 

22 SEC. 405. PUBLICLY AVAILABLE PROJECT INFORMATION. 

23 (a) IN GENERAL.—The Corporation shall maintain a 

24 database with detailed project-level information, as appro25 priate. 


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1 (b) ATTRIBUTES.—The database maintained under 

2 subsection (a) shall— 

3 (1) be user-friendly; 

4 (2) be publicly available; and 

5 (3) to the extent practicable, include a descrip6 tion of the support provided for each project, which 

7 should include, to the extent feasible, the informa8 tion included in the report to Congress under section 

9 403(a) relating to the project. 

10 SEC. 406. ENGAGEMENT WITH INVESTORS. 

11 (a) IN GENERAL.—The Corporation, acting through 

12 the Chief Development Officer, shall— 

13 (1) develop a strategic relationship with private 

14 sector entities focused at the nexus of business op15 portunities and development priorities; 

16 (2) engage the entities described in paragraph 

17 (1); 

18 (3) reduce business risks primarily through di19 rect transaction support and the facilitation of in20 vestment partnerships; 

21 (4) develop and support tools, approaches, and 

22 intermediaries that can mobilize private finance in 

23 support of the policy described in section 101(c); 

24 and 


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1 (5) pursue projects consistent with the policy 

2 described in section 101(c). 

3 (b) ASSISTANCE.—To carry out the duties of the Cor4 poration under subsection (a), the Corporation shall— 

5 (1) develop risk mitigation tools; 

6 (2) provide transaction structuring support for 

7 blended finance models; 

8 (3) support intermediaries by linking capital 

9 supply and demand; 

10 (4) coordinate with other Federal agencies to 

11 support or accelerate transactions; 

12 (5) convene financial, donor, civil society, and 

13 public sector partners around opportunities for pri14 vate finance within development priorities; 

15 (6) offer strategic planning and programming 

16 assistance to catalyze investment into priority sec17 tors; 

18 (7) provide transaction structuring support; 

19 (8) deliver training and knowledge management 

20 tools for engaging private investors; 

21 (9) partner with private sector entities that pro22 vide access to capital and expertise; and 

23 (10) identify and screen new investment part24 ners. 


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1 (c) TECHNICAL ASSISTANCE.—The Corporation shall 

2 coordinate with the Small Business Administration, the 

3 Department of Commerce, the Office of Science and Tech4 nology Policy, and other Federal agencies, as necessary, 

5 on projects and programs supported by the Corporation 

6 that include technical assistance. 

7 SEC. 407. NOTIFICATIONS BY THE CORPORATION. 

8 Not later than 15 days before the date on which the 

9 Corporation makes a financial commitment associated 

10 with the provision of support under title II in an amount 

11 greater than $10,000,000, the Chief Executive Officer of 

12 the Corporation shall submit to the appropriate congres13 sional committees a report in writing that— 

14 (1) contains the amount of the financial com15 mitment; 

16 (2) identifies the recipient or beneficiary of the 

17 commitment; and 

18 (3) describes the project, activity, or asset and 

19 the development goal or purpose to be achieved by 

20 the commitment. 

21 TITLE V—CONDITIONS, RESTRIC22 TIONS, AND PROHIBITIONS 

23 SEC. 501. LIMITATIONS AND PREFERENCES. 

24 (a) POLICIES.—Not later than 1 year after the date 

25 of enactment of this Act, the Chief Executive Officer of 


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1 the Corporation, in consultation with the Secretary of the 

2 Treasury, shall establish policies to ensure that, with re3 spect to support provided to an entity under the activities 

4 of the Corporation under title II, the support— 

5 (1) is contingent on the entity using the sup6 port to invest in manufacturing activity in the 

7 United States; 

8 (2) retains public benefits in the United States 

9 after the date on which the support concludes ac10 cording to binding commitments that, as determined 

11 by the Chief Executive Officer of the Corporation— 

12 (A) are satisfactory; and 

13 (B) remain in place for the longest feasible 

14 period of time, consistent with sound economics 

15 and the purposes of this Act; and 

16 (3) contains safeguards to minimize the trans17 fer of intellectual property from companies in the 

18 United States to foreign entities, especially to coun19 tries of concern, including the People’s Republic of 

20 China. 

21 (b) LIMITATION ON SUPPORT FOR SINGLE ENTI22 TY.—An entity receiving support from the Corporation 

23 under title II may not receive more than an amount that 

24 is equal to 5 percent of the maximum contingent liability 

25 of the Corporation authorized under section 303. 


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1 (c) PROMOTION.—The Corporation shall make efforts 

2 to ensure that the activities of the Corporation promote— 

3 (1) regional diversity, such that businesses lo4 cated in a diverse range of States receive investment 

5 support under title II; 

6 (2) competition, such that target industries and 

7 sectors maintain a competitive environment and are 

8 not controlled by single entities; 

9 (3) sustainability, such that raw materials 

10 sourcing and manufacturing practices minimize envi11 ronmental harm; 

12 (4) equity, such that businesses from histori13 cally marginalized communities receive business de14 velopment support; and 

15 (5) fair labor, such that businesses with union16 ized workforces are supported. 

17 SEC. 502. ADDITIONALITY AND AVOIDANCE OF ADVERSE 

18 IMPACT. 

19 (a) IN GENERAL.—Before the Corporation provides 

20 support for a project, the Corporation shall ensure that 

21 private sector entities are afforded an opportunity to sup22 port the project. 

23 (b) SAFEGUARDS, POLICIES, AND GUIDELINES.—The 

24 Corporation shall develop appropriate safeguards, policies, 


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1 and guidelines to ensure that support provided by the Cor2 poration under title II— 

3 (1) supplements, encourages, and does not com4 pete with private sector support; and 

5 (2) does not have a significant adverse impact 

6 on employment in the United States. 

7 SEC. 503. PREVAILING WAGES. 

8 Section 602 of the Public Works and Economic De9 velopment Act of 1965 (42 U.S.C. 3212) shall apply to 

10 a construction project that receives financial assistance 

11 from the Corporation. For purposes of applying such sec12 tion 602 to such a project, any reference in such section 

13 602— 

14 (1) to a project assisted by the Secretary of 

15 Commerce under such Act shall be deemed to be ref16 erence to a project that receives financial assistance 

17 from the Corporation; and 

18 (2) to the Secretary of Commerce shall be 

19 deemed to be a reference to the Corporation. 

Æ 


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