I 
111TH CONGRESS 
2D SESSION 
H. R. 4694 
To amend the Community Development Banking and Financial Institutions 
Act of 1994 to provide financial assistance to community development 
financial institutions to help defray the costs of operating small dollar 
loan programs, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 25, 2010 
Ms. SPEIER (for herself, Mr. HIMES, Mr. POLIS of Colorado, Mr. GONZALEZ, 
Ms. ESHOO, Ms. ZOE LOFGREN of California, Ms. CHU, Mr. LYNCH, Mr. 
HINOJOSA, Mr. BACA, Ms. MOORE of Wisconsin, Mr. PERRIELLO, Mr. AL 
GREEN of Texas, Ms. CLARKE, and Mr. MOORE of Kansas) introduced 
the following bill; which was referred to the Committee on Financial Serv-
ices 
A BILL 
To amend the Community Development Banking and Finan-
cial Institutions Act of 1994 to provide financial assist-
ance to community development financial institutions to 
help defray the costs of operating small dollar loan pro-
grams, 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 ‘‘Safe Affordable Small 
Dollar Loan Act of 2010’’. 
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SEC. 2. GRANTS TO ESTABLISH LOAN-LOSS RESERVE 
FUNDS. 
The Community Development Banking and Financial 
Institutions Act of 1994 (12 U.S.C. 4701 et seq.) is 
amended by adding at the end the following: 
‘‘SEC. 122. GRANTS TO ESTABLISH LOAN-LOSS RESERVE 
FUNDS. 
‘‘(a) PURPOSES.—The purposes of this section are 
to— 
‘‘(1) make financial assistance available from 
the Fund in order to help community development 
financial institutions defray the costs of operating 
small dollar loan programs, by providing the 
amounts necessary for such institutions to establish 
their own loan loss reserve funds to mitigate some 
of the losses on such small dollar loan programs; 
and 
‘‘(2) encourage community development finan-
cial institution to establish and maintain small dollar 
loan programs that would help give consumers ac-
cess to mainstream financial institutions and combat 
payday lending. 
‘‘(b) GRANTS.— 
‘‘(1) LOAN-LOSS RESERVE FUND GRANTS.—The 
Fund shall make grants to community development 
financial institutions or to any partnership between 
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such community development financial institutions 
and any other federally insured depository institu-
tion with a primary mission to serve targeted invest-
ment areas, as such areas are defined under section 
103(16), to enable such institutions or any partner-
ship of such institutions to establish a loan-loss re-
serve fund in order to defray the costs of a small 
dollar loan program established or maintained by 
such institution. 
‘‘(2) MATCHING REQUIREMENT.—A community 
development financial institution or any partnership 
of institutions established pursuant to paragraph (1) 
shall provide non-Federal matching funds in an 
amount equal to 50 percent of the amount of any 
grant received under this section. 
‘‘(3) USE OF FUNDS.—Any grant amounts re-
ceived by a community development financial institu-
tions or any partnership between or among such in-
stitutions under paragraph (1)— 
‘‘(A) may not be used by such institution 
to provide direct loans to consumers; 
‘‘(B) may be used by such institution to 
help recapture a portion or all of a defaulted 
loan made under the small dollar loan program 
of such institution; and 
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‘‘(C) may be used to designate and utilize 
a fiscal agent for services normally provided by 
such an agent. 
‘‘(4) TECHNICAL
ASSISTANCE
GRANTS.—The 
Fund shall make technical assistance grants to com-
munity development financial institutions or any 
partnership between or among such institutions to 
support and maintain a small dollar loan program. 
Any grant amounts received under this paragraph 
may be used for technology, staff support, and other 
costs associated with establishing a small dollar loan 
program. 
‘‘(c) DEFINITIONS.—For purposes of this section, the 
following definitions shall apply: 
‘‘(1) CONSUMER
REPORTING
AGENCY
THAT 
COMPILES AND MAINTAINS FILES ON CONSUMERS ON 
A NATIONWIDE BASIS.—The term ‘consumer report-
ing agency that compiles and maintains files on con-
sumers on a nationwide basis’ has the same meaning 
given such term in section 603(p) of the Fair Credit 
Reporting Act (15 U.S.C. 1681a(p)). 
‘‘(2) SMALL
DOLLAR
LOAN
PROGRAM.—The 
term ‘small dollar loan program’ means a loan pro-
gram under which a community development finan-
cial institution or any partnership between or among 
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any such institutions offers loans to consumers 
that— 
‘‘(A) are made in amounts not exceeding 
$2,500; 
‘‘(B) must be repaid in installments; 
‘‘(C) have no pre-payment penalty; 
‘‘(D) the institution has to report pay-
ments regarding the loan to at least 1 of the 
consumer reporting agencies that compiles and 
maintains files on consumers on a nationwide 
basis; and 
‘‘(E) meet any other affordability require-
ments as may be established by the Adminis-
trator. 
‘‘(d) REPORT TO CONGRESS.—Before the end of the 
1-year period beginning on the date of the enactment of 
the Safe Affordable Small Dollar Loan Act of 2010, and 
each year thereafter, the Administrator shall submit to the 
Committee on Banking, Housing, and Urban Affairs of 
the Senate and the Committee on Financial Services of 
the House of Representatives a report describing— 
‘‘(1) the activities carried out by the Fund pur-
suant to this section; and 
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‘‘(2) any measurable results, as appropriate and 
available, related to the achievement of the purposes 
of this section as described in subsection (a). 
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.— 
‘‘(1) GRANT PROGRAM.—There are authorized 
to be appropriated for fiscal years 2010 through 
2015 such sums as may be necessary to carry out 
the grant program established under this section. 
‘‘(2) ADMINISTRATIVE
EXPENSES.—There is 
authorized to be appropriated to the Fund for each 
fiscal year beginning in fiscal year 2010, an amount 
equal to the amount of the administrative costs of 
the Fund for the operation of the grant program es-
tablished under this section.’’. 
Æ 
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