I 
116TH CONGRESS 
2D SESSION 
H. R. 7709 
To amend the CARES Act to establish community investment programs, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 21, 2020 
Mr. MEEKS (for himself, Mr. GREEN of Texas, Mr. CLEAVER, Mrs. BEATTY, 
Mr. DAVID SCOTT of Georgia, Ms. PRESSLEY, Ms. TLAIB, Mr. TRONE, 
and Mr. CLAY) introduced the following bill; which was referred to the 
Committee on Financial Services, and in addition to the Committee on 
the Budget, for a period to be subsequently determined by the Speaker, 
in each case for consideration of such provisions as fall within the juris-
diction of the committee concerned 
A BILL 
To amend the CARES Act to establish community 
investment programs, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Jobs and Neighbor-
hood Investment Act’’. 
SEC. 2. PURPOSE. 
The purpose of this Act is to— 
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(1) establish programs to revitalize and provide 
long-term financial products and service availability 
for, and provide investments in, low- and moderate- 
income and minority communities; 
(2) respond to the unprecedented loss of Black- 
owned businesses and unemployment; and 
(3) otherwise enhance the stability, safety and 
soundness of community financial institutions that 
support low- and moderate-income and minority 
communities. 
SEC. 3. CONSIDERATIONS; REQUIREMENTS FOR CREDI-
TORS. 
(a) IN GENERAL.—In exercising the authorities 
under this Act and the amendments made by this Act, 
the Secretary of the Treasury shall take into consider-
ation— 
(1) increasing the availability of affordable 
credit for consumers, small businesses, and nonprofit 
organizations, including for projects supporting af-
fordable housing, community-serving real estate, and 
other projects, that provide direct benefits to low- 
and moderate-income communities, low-income and 
underserved individuals, and minorities; 
(2) providing funding to minority-owned or mi-
nority-led eligible institutions and other eligible insti-
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tutions that have a strong track record of serving 
minority small businesses; 
(3) protecting and increasing jobs in the United 
States; 
(4) increasing the opportunity for small busi-
ness, affordable housing and community develop-
ment in geographic areas and demographic segments 
with poverty and high unemployment rates that ex-
ceed the average in the United States; 
(5) ensuring that all low- and moderate-income 
community financial institutions may apply to par-
ticipate in the programs established under this Act 
and the amendments made by this Act, without dis-
crimination based on geography; 
(6) providing transparency with respect to use 
of funds provided under this Act and the amend-
ments made by this Act; 
(7) promoting and engaging in financial edu-
cation to would-be borrowers; and 
(8) providing funding to eligible institutions 
that serve consumers, small businesses, and non-
profit organizations to support affordable housing, 
community-serving real estate, and other projects 
that provide direct benefits to low- and moderate-in-
come communities, low-income individuals, and mi-
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norities directly affected by the COVID–19 pan-
demic. 
(b) REQUIREMENT FOR CREDITORS.—Any creditor 
participating in a program established under this Act or 
the amendments made by this Act shall fully comply with 
all applicable statutory and regulatory requirements relat-
ing to fair lending. 
SEC. 4. SENSE OF CONGRESS. 
It is the sense of Congress that the investments made 
by the Secretary of the Treasury under this Act and the 
amendments made by this Act should be designed to maxi-
mize the benefit to low- and moderate-income and minor-
ity communities and contemplate losses to capital of the 
Treasury. 
SEC. 5. NEIGHBORHOOD INVESTMENT PROGRAMS. 
Title IV of the CARES Act (Public Law 116–136) 
is amended— 
(1) in section 4002 (15 U.S.C. 9041)— 
(A) 
by 
redesignating 
paragraphs 
(7) 
through (10) as paragraphs (8) through (11), 
respectively; and 
(B) by inserting after paragraph (6) the 
following: 
‘‘(7) LOW- AND
MODERATE-INCOME
COMMU-
NITY FINANCIAL INSTITUTION.—The term ‘low- and 
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moderate-income community financial institution’ 
means any financial institution that is— 
‘‘(A) a community development financial 
institution, as defined in section 103 of the Rie-
gle Community Development and Regulatory 
Improvement Act of 1994 (12 U.S.C. 4702); or 
‘‘(B) a minority depository institution, as 
defined in section 308 of the Financial Institu-
tions Reform, Recovery, and Enforcement Act 
of 1989 (12 U.S.C. 1463 note), for which the 
majority of the community served by the minor-
ity depository institution is minority, as defined 
in such section.’’; 
(2) in section 4003 (15 U.S.C. 9042), by add-
ing at the end the following: 
‘‘(i) NEIGHBORHOOD CAPITAL INVESTMENT PRO-
GRAM.— 
‘‘(1) DEFINITIONS.—In this subsection— 
‘‘(A) the term ‘community development fi-
nancial institution’ has the meaning given the 
term in section 103 of the Riegle Community 
Development and Regulatory Improvement Act 
of 1994 (12 U.S.C. 4702); 
‘‘(B) the term ‘Fund’ means the Commu-
nity Development Financial Institutions Fund 
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established under section 104(a) of the Riegle 
Community Development and Regulatory Im-
provement Act of 1994 (12 U.S.C. 4703(a)); 
‘‘(C) the term ‘minority’ means any Black 
American, Native American, Hispanic Amer-
ican, or Asian American; and 
‘‘(D) the term ‘Program’ means the Neigh-
borhood Capital Investment Program estab-
lished under paragraph (2). 
‘‘(2) ESTABLISHMENT.—The Secretary shall es-
tablish a Neighborhood Capital Investment Program 
to support low- and moderate-income community fi-
nancial institutions to provide loans and forbearance 
to borrowers in low- and moderate-income commu-
nities, especially for borrowers who are historically 
disadvantaged, including minorities, and borrowers 
in rural and urban low-income and underserved com-
munities. 
‘‘(3) INVESTMENTS.—Under the Program, the 
Secretary shall establish a fund to facilitate direct 
capital investments, including purchases and modi-
fications of those purchases, of senior preferred non- 
voting stock, subordinated debentures, and other fi-
nancial instruments (including equity equivalent cap-
ital and secondary capital investments described in 
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section 216(o)(2)(C) of the Federal Credit Union 
Act (12 U.S.C. 1790d(o)(2)(C)) from low- and mod-
erate-income community financial institutions on 
such terms as are determined by the Secretary in ac-
cordance with this subtitle. 
‘‘(4) APPLICATION.— 
‘‘(A) ACCEPTANCE.—The Secretary shall 
begin accepting applications for capital invest-
ments under the Program not later than the 
end of the 30-day period beginning on the date 
of enactment of this subsection, with priority in 
distribution given to low- and moderate-income 
community financial institutions that are mi-
nority-owned or minority-led lenders. 
‘‘(B) REQUIREMENT TO PROVIDE A NEIGH-
BORHOOD INVESTMENT LENDING PLAN.— 
‘‘(i) IN GENERAL.—At the time that 
an applicant submits an application to the 
Secretary for a capital investment under 
the Program, the applicant shall provide 
the Secretary, along with the appropriate 
Federal banking agency, an investment 
and lending plan that— 
‘‘(I) demonstrates that not less 
than 30 percent of the lending of the 
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applicant over the past 2 fiscal years 
was made directly to low- and mod-
erate income borrowers, to borrowers 
that create direct benefits for low- and 
moderate-income populations, to other 
targeted populations as defined by the 
Fund, or any combination thereof, as 
measured by the total number and 
dollar amount of loans; 
‘‘(II) describes how the business 
strategy and operating goals of the 
applicant will address community de-
velopment needs, which includes the 
needs of small businesses, consumers, 
nonprofit organizations, community 
development, and other projects pro-
viding direct benefits to low- and mod-
erate-income communities, low-income 
individuals, and minorities within the 
minority, rural, and urban low-income 
and underserved areas served by the 
applicant; 
‘‘(III) includes a plan to provide 
linguistically and culturally appro-
priate outreach, where appropriate; 
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‘‘(IV) includes an attestation by 
the applicant that the applicant does 
not own, service, or offer any financial 
products at an annual percentage rate 
of more than 36 percent interest, as 
defined in section 987(i)(4) of title 
10, United States Code, and is com-
pliant with State interest rate laws; 
and 
‘‘(V) includes details on how the 
applicant plans to expand or maintain 
significant lending or investment ac-
tivity in low- or moderate-income mi-
nority communities, to historically dis-
advantaged borrowers, and to minori-
ties that have significant unmet cap-
ital or financial services needs. 
‘‘(ii) 
COMMUNITY
DEVELOPMENT 
LOAN FUNDS.—An applicant that is not an 
insured community development financial 
institution or otherwise regulated by a 
Federal financial regulator shall submit 
the plan described in clause (i) only to the 
Secretary. 
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‘‘(iii) DOCUMENTATION.—In the case 
of an applicant that is certified as a com-
munity development financial institution as 
of the date of enactment of this subsection, 
for purposes of clause (i)(I), the Secretary 
may rely on documentation submitted to 
the Fund as part of certification compli-
ance reporting. 
‘‘(5) INCENTIVES TO INCREASE LENDING AND 
PROVIDE AFFORDABLE CREDIT.— 
‘‘(A) 
REQUIREMENTS
ON
PREFERRED 
STOCK AND OTHER FINANCIAL INSTRUMENT.— 
Any financial instrument issued to Treasury by 
a low- and moderate-income community finan-
cial institution under the Program shall provide 
the following: 
‘‘(i) No dividends, interest or other 
payments shall exceed 2 percent per 
annum. 
‘‘(ii) After the first 24 months from 
the date of the capital investment under 
the Program, annual payments may be re-
quired, as determined by the Secretary and 
in accordance with this section, and ad-
justed downward based on the amount of 
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affordable credit provided by the low- and 
moderate-income community financial in-
stitution to borrowers in minority, rural, 
and urban low-income and underserved 
communities. 
‘‘(iii) During any calendar quarter 
after the initial 24-month period referred 
to in clause (ii), the annual payment rate 
of a low- and moderate-income community 
financial institution shall be adjusted 
downward to reflect the following schedule, 
based on lending by the institution relative 
to the baseline period: 
‘‘(I) If the institution in the most 
recent annual period prior to the in-
vestment provides significant lending 
or investment activity in low- or mod-
erate-income minority communities, 
historically disadvantaged borrowers, 
and to minorities that have significant 
unmet capital or financial services, 
the annual payment rate shall not ex-
ceed 0.5 percent per annum. 
‘‘(II) If the amount of lending 
within minority, rural, and urban low- 
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income and underserved communities 
and to low- and moderate-income bor-
rowers has increased dollar for dollar 
based on the amount of the capital in-
vestment, the annual payment rate 
shall not exceed 1 percent per annum. 
‘‘(III) If the amount of lending 
within minority, rural, and urban low- 
income and underserved communities 
and to low- and moderate-income bor-
rowers has increased by twice the 
amount of the capital investment, the 
annual payment rate shall not exceed 
0.5 percent per annum. 
‘‘(B) CONTINGENCY OF PAYMENTS BASED 
ON CERTAIN FINANCIAL CRITERIA.— 
‘‘(i) DEFERRAL.—Any annual pay-
ments under this subsection shall be de-
ferred in any quarter or payment period if 
any of the following is true: 
‘‘(I) The low- and moderate-in-
come community institution fails to 
meet the Tier 1 capital ratio or simi-
lar ratio as determined by the Sec-
retary. 
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‘‘(II) The low- and moderate-in-
come community financial institution 
fails to achieve positive net income for 
the quarter or payment period. 
‘‘(III) The low- and moderate-in-
come community financial institution 
determines that the payment would be 
detrimental to the financial health of 
the institution. 
‘‘(ii) TESTING
DURING
NEXT
PAY-
MENT PERIOD.—Any deferred annual pay-
ment under this subsection shall be tested 
against the metrics described in clause (i) 
at the beginning of the next payment pe-
riod, and such payments shall continue to 
be deferred until the metrics described in 
that clause are no longer applicable. 
‘‘(6) RESTRICTIONS.— 
‘‘(A) IN GENERAL.—Each low- and mod-
erate-income community financial institution 
may only issue financial instruments or senior 
preferred stock under this subsection with an 
aggregate principal amount that is— 
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‘‘(i) not more than 15 percent of risk- 
weighted assets for an institution with as-
sets of more than $2,000,000,000; 
‘‘(ii) not more than 25 percent of 
risk-weighted assets for an institution with 
assets of not less than $500,000,000 and 
not more than $2,000,000,000; and 
‘‘(iii) not more than 30 percent of 
risk-weighted assets for an institution with 
assets of less than $500,000,000. 
‘‘(B) HOLDING OF INSTRUMENTS.—Hold-
ing any instrument of a low- and moderate-in-
come community financial institution described 
in subparagraph (A) shall not give the Treasury 
or any successor that owns the instrument any 
rights over the management of the institution. 
‘‘(C) SALE OF INTEREST.—With respect to 
a capital investment made into a low- and mod-
erate-income community financial institution 
under this subsection, the Secretary— 
‘‘(i) except as provided in clause (iv), 
during the 10-year period following the in-
vestment, may not sell the interest of the 
Secretary in the capital investment to a 
third party; 
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