(c) COVERED REGULATOR DEFINED.—In this sec-
tion, the term ‘‘covered regulator’’ means the Comptroller 
of the Currency, the Board of Governors of the Federal 
Reserve System, the Federal Deposit Insurance Corpora-
tion, and the National Credit Union Administration. 
SEC. 10. INVESTMENTS IN MINORITY DEPOSITORY INSTITU-
TIONS AND IMPACT BANKS. 
(a) CONTROL FOR CERTAIN INSTITUTIONS.—Section 
7(j)(8)(B) of the Federal Deposit Insurance Act (12 
U.S.C. 1817(j)(8)(B)) is amended to read as follows: 
‘‘(B) ‘control’ means the power, directly or indi-
rectly— 
‘‘(i) to direct the management or policies 
of an insured depository institution; or 
‘‘(ii)(I) with respect to an insured deposi-
tory institution, of a person to vote 25 per cen-
tum or more of any class of voting securities of 
such institution; or 
‘‘(II) with respect to an insured depository 
institution that is an impact bank (as des-
ignated pursuant to section 5 of the Ensuring 
Diversity in Community Banking Act) or a mi-
nority depository institution (as defined in sec-
tion 308(b) of the Financial Institutions Re-
form, Recovery, and Enforcement Act of 1989),
of an individual to vote 30 percent or more of 
any class of voting securities of such an impact 
bank or a minority depository institution.’’. 
(b) RULEMAKING.—The Federal banking agencies 
(as defined in section 3 of the Federal Deposit Insurance 
Act (12 U.S.C. 1813)) shall jointly issue rules for de novo 
minority depository institutions and de novo impact banks 
(as designated pursuant to section 5) to allow 3 years to 
meet the capital requirements otherwise applicable to mi-
nority depository institutions and impact banks. 
(c) REPORT.—Not later than 1 year after the date 
of the enactment of this Act, the Federal banking agencies 
shall jointly submit to Congress a report on— 
(1) the principal causes for the low number of 
de novo minority depository institutions during the 
10-year period preceding the date of the report; 
(2) the main challenges to the creation of de 
novo minority depository institutions and de novo 
impact banks; and 
(3) regulatory and legislative considerations to 
promote the establishment of de novo minority de-
pository institutions and de novo impact banks.
SEC. 11. REPORT ON COVERED MENTOR-PROTEGE PRO-
GRAMS. 
(a) REPORT.—Not later than 6 months after the date 
of the enactment of this Act and annually thereafter, the 
Secretary of the Treasury shall submit to Congress a re-
port on participants in a covered mentor-protege program, 
including— 
(1) an analysis of outcomes of such program; 
(2) the number of minority depository institu-
tions that are eligible to participate in such program 
but do not have large financial institution mentors; 
and 
(3) recommendations for how to match such mi-
nority depository institutions with large financial in-
stitution mentors. 
(b) DEFINITIONS.—In this section: 
(1) COVERED
MENTOR-PROTEGE
PROGRAM.— 
The term ‘‘covered mentor-protege program’’ means 
a mentor-protege program established by the Sec-
retary of the Treasury pursuant to section 45 of the 
Small Business Act (15 U.S.C. 657r). 
(2) LARGE FINANCIAL INSTITUTION.—The term 
‘‘large financial institution’’ means any entity— 
(A) regulated by the Comptroller of the 
Currency, the Board of Governors of the Fed-
eral Reserve System, the Federal Deposit In-
surance Corporation, or the National Credit 
Union Administration; and 
(B) that has total consolidated assets 
greater than or equal to $50,000,000,000. 
SEC. 12. CUSTODIAL DEPOSIT PROGRAM FOR COVERED MI-
NORITY DEPOSITORY INSTITUTIONS AND IM-
PACT BANKS. 
(a) IN GENERAL.—Not later than one year after the 
date of the enactment of this Act, the Secretary of the 
Treasury shall issue rules establishing a custodial deposit 
program under which a covered bank may receive deposits 
from a qualifying account. 
(b) REQUIREMENTS.—In issuing rules under sub-
section (a), the Secretary of the Treasury shall— 
(1) consult with the Federal banking agencies; 
(2) ensure each covered bank participating in 
the program established under this section— 
(A) has appropriate policies relating to 
management of assets, including measures to 
ensure the safety and soundness of each such 
covered bank; and 
(B) is compliant with applicable law; and 
(3) ensure, to the extent practicable that the 
rules do not conflict with goals described in section 
308(a) of the Financial Institutions Reform, Recov-
ery, and Enforcement Act of 1989 (12 U.S.C. 1463 
note). 
(c) LIMITATIONS.— 
(1) DEPOSITS.—With respect to the funds of an 
individual qualifying account, an entity may not de-
posit an amount greater than the insured amount in 
a single covered bank. 
(2) TOTAL
DEPOSITS.—The total amount of 
funds deposited in a covered bank under the custo-
dial deposit program described under this section 
may not exceed the lesser of— 
(A) 10 percent of the average amount of 
deposits held by such covered bank in the pre-
vious quarter; or 
(B) $100,000,000 (as adjusted for infla-
tion). 
(d) REPORT.—Each quarter, the Secretary of the 
Treasury shall submit to Congress a report on the imple-
mentation of the program established under this section 
including information identifying participating covered 
banks and the total amount of deposits received by covered 
banks under the program. 
(e) DEFINITIONS.—In this section: 
(1) COVERED BANK.—The term ‘‘covered bank’’ 
means—
(A) a minority depository institution that 
is well capitalized, as defined by the appropriate 
Federal banking agency; or 
(B) a depository institution designated 
pursuant to section 5 of the Ensuring Diversity 
in Community Banking Act that is well capital-
ized, as defined by the appropriate Federal 
banking agency. 
(2) INSURED
AMOUNT.—The term ‘‘insured 
amount’’ means the amount that is the greater of— 
(A) the standard maximum deposit insur-
ance amount (as defined in section 11(a)(1)(E) 
of the Federal Deposit Insurance Act (12 
U.S.C. 1821(a)(1)(E))); or 
(B) such higher amount negotiated be-
tween the Secretary of the Treasury and the 
Federal Deposit Insurance Corporation under 
which the Corporation will insure all deposits of 
such higher amount. 
(3) FEDERAL BANKING AGENCIES.—The terms 
‘‘appropriate Federal banking agency’’ and ‘‘Federal 
banking agencies’’ have the meaning given those 
terms, respectively, under section 3 of the Federal 
Deposit Insurance Act.
(4) QUALIFYING ACCOUNT.—The term ‘‘quali-
fying account’’ means any account established in the 
Department of the Treasury that— 
(A) is controlled by the Secretary; and 
(B) is expected to maintain a balance 
greater than $200,000,000 for the following 24- 
month period. 
SEC. 13. STREAMLINED COMMUNITY DEVELOPMENT FI-
NANCIAL INSTITUTION APPLICATIONS AND 
REPORTING. 
(a) APPLICATION PROCESSES.—Not later than 12 
months after the date of the enactment of this Act and 
with respect to any person having assets under 
$3,000,000,000 that submits an application for deposit in-
surance with the Federal Deposit Insurance Corporation 
that could also become a community development financial 
institution, the Federal Deposit Insurance Corporation, in 
consultation with the Administrator of the Community 
Development Financial Institutions Fund, shall— 
(1) develop systems and procedures to record 
necessary information to allow the Administrator to 
conduct preliminary analysis for such person to also 
become a community development financial institu-
tion; and
(2) develop procedures to streamline the appli-
cation and annual certification processes and to re-
duce costs for such person to become, and maintain 
certification as, a community development financial 
institution. 
(b) IMPLEMENTATION REPORT.—Not later than 18 
months after the date of the enactment of this Act, the 
Federal Deposit Insurance Corporation shall submit to 
Congress a report describing the systems and procedures 
required under subsection (a). 
(c) ANNUAL REPORT.— 
(1) IN GENERAL.—Section 17(a)(1) of the Fed-
eral Deposit Insurance Act (12 U.S.C. 1827(a)(1)) 
is amended— 
(A) in subparagraph (E), by striking 
‘‘and’’ at the end; 
(B) by redesignating subparagraph (F) as 
subparagraph (G); 
(C) by inserting after subparagraph (E) 
the following new subparagraph: 
‘‘(F) applicants for deposit insurance that 
could also become a community development fi-
nancial institution (as defined in section 103 of 
the Riegle Community Development and Regu-
latory Improvement Act of 1994), a minority
depository institution (as defined in section 308 
of the Financial Institutions Reform, Recovery, 
and Enforcement Act of 1989), or an impact 
bank (as designated pursuant to section 5 of 
the Ensuring Diversity in Community Banking 
Act); and’’. 
(2) APPLICATION.—The amendment made by 
this subsection shall apply with respect to the first 
report to be submitted after the date that is 2 years 
after the date of the enactment of this Act. 
SEC. 14. TASK FORCE ON LENDING TO SMALL BUSINESS 
CONCERNS. 
(a) IN GENERAL.—Not later than 6 months after the 
date of the enactment of this Act, the Administrator of 
the Small Business Administration shall establish a task 
force to examine methods for improving relationships be-
tween the Small Business Administration and community 
development financial institutions, minority depository in-
stitutions, and Impact Banks to increase the volume of 
loans provided by such institutions to small business con-
cerns (as defined under section 3 of the Small Business 
Act (15 U.S.C. 632)). 
(b) REPORT
TO CONGRESS.—Not later than 18 
months after the establishment of the task force described 
in subsection (a), the Administrator of the Small Business
Administration shall submit to Congress a report on the 
findings of such task force. 
SEC. 15. DISCRETIONARY SURPLUS FUNDS. 
(a) IN GENERAL.—Subparagraph (A) of section 
7(a)(3) of the Federal Reserve Act (12 U.S.C. 
289(a)(3)(A)) is amended by reducing the dollar figure de-
scribed in such subparagraph by $1,400,000,000. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect on September 30, 2030. 
SEC. 16. DETERMINATION OF BUDGETARY EFFECTS. 
The budgetary effects of this Act, for the purpose of 
complying with the Statutory Pay-As-You-Go Act of 2010, 
shall be determined by reference to the latest statement 
titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this 
Act, submitted for printing in the Congressional Record 
by the Chairman of the House Budget Committee, pro-
vided that such statement has been submitted prior to the 
vote on passage. 
Passed the House of Representatives September 21, 
2020. 
Attest: 
Clerk.
116TH CONGRESS 
2D SESSION 
H. R. 5322 
AN ACT 
To establish or modify requirements relating to mi-
nority depository institutions, community devel-
opment financial institutions, and impact banks, 
and for other purposes.