I 
116TH CONGRESS 
2D SESSION 
H. R. 6888 
To modify requirements relating to the participation of community develop-
ment financial institutions in the paycheck protection program of the 
Small Business Administration, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 15, 2020 
Ms. ADAMS (for herself and Ms. WATERS) introduced the following bill; which 
was referred to the Committee on Small Business 
A BILL 
To modify requirements relating to the participation of com-
munity development financial institutions in the paycheck 
protection program of the Small Business Administra-
tion, 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. PARTICIPATION OF COMMUNITY DEVELOP-
MENT FINANCIAL INSTITUTIONS IN THE PAY-
CHECK PROTECTION PROGRAM. 
(a) DELEGATED AUTHORITY.—Section 7(a)(36)(F) 
of the Small Business Act (15 U.S.C. 636(a)(36)(F)) is 
amended— 
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(1) in clause (ii)(I), by inserting ‘‘and a com-
munity development financial institution’’ after 
‘‘under this subsection’’; 
(2) in clause (iii), by striking ‘‘shall be extended 
to additional lenders’’ and inserting the following: 
‘‘shall be extended— 
‘‘(I) to community development 
financial institutions; and 
‘‘(II) to additional lenders’’; and 
(3) by adding at the end the following new 
clause: 
‘‘(vi) REVOCATION
OF
LENDERS.— 
The authority of a lender to make loans 
under this paragraph may be revoked upon 
a joint determination by the Administrator 
and the Secretary of the Treasury that— 
‘‘(I) such lender has had recent 
compliance shortcomings or other ma-
terial operational shortcomings that 
warrant such a revocation; and 
‘‘(II) such a revocation is con-
sistent with the purpose of this para-
graph.’’. 
(b) EXISTING CUSTOMERS OF NON-BANK CDFIS.— 
The Secretary of the Treasury and the Administrator of 
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the Small Business Administration shall revise any rules 
or guidance issued to carry out section 7(a)(36) of the 
Small Business Act (15 U.S.C. 636(a)(36)) to specify that 
a non-bank CDFI does not have to go through a 
reverification of information about an existing customer 
for purposes of the Bank Secrecy Act, if the non-bank 
CDFI has maintained an ongoing financial relationship 
with the customer that is well documented, and there is 
no need for further due diligence based on the non-bank 
CDFI’s risk-based approach to Bank Secrecy Act compli-
ance. 
(c) DEFINITIONS.—In this Act: 
(1) BANK SECRECY ACT.—The term ‘‘Bank Se-
crecy Act’’ means— 
(A) section 21 of the Federal Deposit In-
surance Act (12 U.S.C. 1829b); 
(B) chapter 2 of title I of Public Law 91– 
508 (12 U.S.C. 1951 et seq.); and 
(C) subchapter II of chapter 53 of title 31, 
United States Code; 
(2) COMMUNITY DEVELOPMENT FINANCIAL IN-
STITUTION.—The term ‘‘community development fi-
nancial institution’’ has the meaning given that term 
under section 103 of the Riegle Community Develop-
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ment and Regulatory Improvement Act of 1994 (12 
U.S.C. 4702). 
(3) NON-BANK
CDFI.—the term ‘‘non-bank 
CDFI’’ means a community development financial 
institution that is not an insured depository institu-
tion or insured credit union. 
Æ 
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