I 
115TH CONGRESS 
1ST SESSION H. R. 1833 
To encourage initiatives for financial products and services that are appro-
priate and accessible for millions of American small businesses that 
do not have access to the financial mainstream. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 30, 2017 
Mrs. CAROLYN B. MALONEY of New York (for herself, Ms. VELA´ZQUEZ, Ms. 
NORTON, Mr. ELLISON, Ms. CLARKE of New York, Mr. VARGAS, Ms. 
PLASKETT, Mr. CARSON of Indiana, Mr. EVANS, and Ms. ADAMS) intro-
duced the following bill; which was referred to the Committee on Finan-
cial Services 
A BILL 
To encourage initiatives for financial products and services 
that are appropriate and accessible for millions of Amer-
ican small businesses that do not have access to the 
financial mainstream. 
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 ‘‘Investing in America’s 
Small Businesses Act of 2017’’. 
SEC. 2. FINDINGS. 
The Congress finds the following: 
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(1) Small businesses in underserved areas have 
for generations been unable to access affordable 
credit. 
(2) A 2013 report commissioned by the U.S. 
Small Business Administration shows the major con-
straint limiting the growth, expansion, and wealth 
creation of small firms—especially women- and mi-
nority-owned businesses—is inadequate capital. 
(3) Small businesses revitalize communities by 
creating jobs, and also contribute to the local tax 
base, which helps finance investments in schools, 
hospitals, infrastructure, and public safety. 
(4) A 2015 report from the Carsey School of 
Public Policy at the University of New Hampshire 
found that 79 percent of CDFI loan volume went to 
borrowers from underserved populations. 
(5) During the financial crisis, CDFI loan 
funds expanded their activity to meet increased de-
mand from borrowers that could not access tradi-
tional lending. From 2006 to 2009, the median fund 
deployment ratio grew 3.1 percent annually. 
(6) After Superstorm Sandy, CDFIs launched 
disaster recovery loan programs and reached out to 
affected businesses and organizations to provide 
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credit to help grocery stores and social service orga-
nizations re-open to help communities in need. 
(7) A 2014 report by the Dardin School of 
Business at the University of Virginia found that de-
spite serving predominately low-income markets, 
CDFI banks and credit unions had virtually the 
same level of performance as mainstream financial 
institutions. 
SEC. 3. GRANTS TO ESTABLISH LOAN-LOSS RESERVE 
FUNDS FOR SMALL BUSINESS LENDING. 
(a) IN GENERAL.—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. 123. GRANTS TO ESTABLISH LOAN-LOSS RESERVE 
FUNDS FOR SMALL BUSINESS LENDING. 
‘‘(a) PURPOSES.—The purposes of this section are— 
‘‘(1) to make financial assistance available from 
the Fund in order to help community development 
financial institutions defray the costs of operating 
small business 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 business loan programs; 
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‘‘(2) to encourage community development fi-
nancial institutions to establish and maintain small 
business loan programs that would help provide bor-
rowers access to mainstream financial institutions 
and combat high cost small business lending; and 
‘‘(3) to encourage community development fi-
nancial institutions to expand the development serv-
ices they offer and to serve new investment areas 
and new targeted populations. 
‘‘(b) GRANTS.— 
‘‘(1) LOAN-LOSS RESERVE FUND GRANTS.— 
‘‘(A) IN GENERAL.—The Fund shall make 
grants to community development financial in-
stitutions to enable such institutions to estab-
lish a loan-loss reserve fund in order to defray 
the costs of a small business loan program es-
tablished or maintained by such institution. 
‘‘(B) APPLICATION.—A community devel-
opment financial institution that wishes to re-
ceive a grant under this paragraph shall submit 
an application to the Administrator in such 
form and manner and containing such informa-
tion as the Administrator may require. 
‘‘(C) MATCHING REQUIREMENT.—A com-
munity development financial institution shall 
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