I 
116TH CONGRESS 
1ST SESSION H. R. 5322 
To establish or modify requirements relating to minority depository institu-
tions, community development financial institutions, and impact banks, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 5, 2019 
Mr. MEEKS (for himself, Mr. GREEN of Texas, Ms. TLAIB, Mr. CLEAVER, Mr. 
DAVID SCOTT of Georgia, Mr. CLAY, and Mrs. BEATTY) introduced the 
following bill; which was referred to the Committee on Financial Services, 
and in addition to the Committee on Small Business, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
of such provisions as fall within the jurisdiction of the committee con-
cerned 
A BILL 
To establish or modify requirements relating to minority 
depository institutions, community development financial 
institutions, and impact banks, 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; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Ensuring Diversity in Community Banking Act of 
2019’’. 
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(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Sense of Congress on funding the loan-loss reserve fund for small dollar 
loans. 
Sec. 3. Definitions. 
Sec. 4. Inclusion of women’s banks in the definition of minority depository in-
stitution. 
Sec. 5. Establishment of impact bank designation. 
Sec. 6. Minority Depository Institutions Advisory Committees. 
Sec. 7. Federal deposits in minority depository institutions. 
Sec. 8. Minority Bank Deposit Program. 
Sec. 9. Diversity report and best practices. 
Sec. 10. Investments in minority depository institutions and impact banks. 
Sec. 11. Requirement to mentor minority depository institutions or community 
development financial institutions to serve as a depositary or 
financial agent. 
Sec. 12. Custodial deposit program for covered minority depository institutions 
and impact banks. 
Sec. 13. Streamlined community development financial institution applications 
and reporting. 
Sec. 14. Task force on lending to small business concerns. 
SEC. 2. SENSE OF CONGRESS ON FUNDING THE LOAN-LOSS 
RESERVE FUND FOR SMALL DOLLAR LOANS. 
The sense of Congress is the following: 
(1) The Community Development Financial In-
stitutions Fund (the ‘‘CDFI Fund’’) is an agency of 
the Department of the Treasury, and was estab-
lished by the Riegle Community Development and 
Regulatory Improvement Act of 1994. The mission 
of the CDFI Fund is ‘‘to expand economic oppor-
tunity for underserved people and communities by 
supporting the growth and capacity of a national 
network of community development lenders, inves-
tors, and financial service providers’’. A community 
development financial institution (a ‘‘CDFI’’) is a 
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specialized financial institution serving low-income 
communities and a Community Development Entity 
(a ‘‘CDE’’) is a domestic corporation or partnership 
that is an intermediary vehicle for the provision of 
loans, investments, or financial counseling in low-in-
come communities. The CDFI Fund certifies CDFIs 
and CDEs. Becoming a certified CDFI or CDE al-
lows organizations to participate in various CDFI 
Fund programs as follows: 
(A) The Bank Enterprise Award Program, 
which provides FDIC-insured depository institu-
tions awards for a demonstrated increase in 
lending and investments in distressed commu-
nities and CDFIs. 
(B) The CDFI Program, which provides 
Financial and Technical Assistance awards to 
CDFIs to reinvest in the CDFI, and to build 
the capacity of the CDFI, including financing 
product development and loan loss reserves. 
(C) The Native American CDFI Assistance 
Program, which provides CDFIs and spon-
soring entities Financial and Technical Assist-
ance awards to increase lending and grow the 
number of CDFIs owned by Native Americans 
to help build capacity of such CDFIs. 
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(D) The New Market Tax Credit Program, 
which provides tax credits for making equity in-
vestments in CDEs that stimulate capital in-
vestments in low-income communities. 
(E) The Capital Magnet Fund, which pro-
vides awards to CDFIs and nonprofit affordable 
housing organizations to finance affordable 
housing solutions and related economic develop-
ment activities. 
(F) The Bond Guarantee Program, a 
source of long-term, patient capital for CDFIs 
to expand lending and investment capacity for 
community and economic development purposes. 
(2) The Department of the Treasury is author-
ized to create multi-year grant programs designed to 
encourage low-to-moderate income individuals to es-
tablish accounts at federally insured banks, and to 
improve low-to-moderate income individuals’ access 
to such accounts on reasonable terms. 
(3) Under this authority, grants to participants 
in CDFI Fund programs may be used for loan-loss 
reserves and to establish small-dollar loan programs 
by subsidizing related losses. These grants also allow 
for the providing recipients with the financial coun-
seling and education necessary to conduct trans-
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actions and manage their accounts. These loans pro-
vide low-cost alternatives to payday loans and other 
nontraditional forms of financing that often impose 
excessive interest rates and fees on borrowers, and 
lead millions of Americans to fall into debt traps. 
Small-dollar loans can only be made pursuant to 
terms, conditions, and practices that are reasonable 
for the individual consumer obtaining the loan. 
(4) Program participation is restricted to eligi-
ble institutions, which are limited to organizations 
listed in section 501(c)(3) of the Internal Revenue 
Code and exempt from tax under 501(a) of such 
Code, federally insured depository institutions, com-
munity development financial institutions and State, 
local, or Tribal government entities. 
(5) Since its founding, the CDFI Fund has 
awarded over $3,300,000,000 to CDFIs and CDEs, 
allocated $54,000,000,000 in tax credits, and 
$1,510,000,000 in bond guarantees. According to 
the CDFI Fund, some programs attract as much as 
$10 in private capital for every $1 invested by the 
CDFI Fund. The Administration and the Congress 
should prioritize appropriation of funds for the loan 
loss reserve fund and technical assistance programs 
administered by the Community Development Finan-
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cial Institution Fund, as included in the version of 
the ‘‘Financial Services and General Government 
Appropriations Act, 2020’’ (H.R. 3351) that passed 
the House of Representatives on June, 26, 2019. 
SEC. 3. DEFINITIONS. 
In this Act: 
(1) COMMUNITY DEVELOPMENT FINANCIAL IN-
STITUTION.—The term ‘‘community development fi-
nancial institution’’ has the meaning given under 
section 103 of the Riegle Community Development 
and Regulatory Improvement Act of 1994 (12 
U.S.C. 4702). 
(2) MINORITY DEPOSITORY INSTITUTION.—The 
term ‘‘minority depository institution’’ has the 
meaning given under section 308 of the Financial 
Institutions Reform, Recovery, and Enforcement Act 
of 1989 (12 U.S.C. 1463 note), as amended by this 
Act. 
SEC. 4. INCLUSION OF WOMEN’S BANKS IN THE DEFINITION 
OF MINORITY DEPOSITORY INSTITUTION. 
Section 308(b)(1) of the Financial Institutions Re-
form, Recovery, and Enforcement Act of 1989 (12 U.S.C. 
1463 note) is amended— 
(1) by redesignating subparagraphs (A), (B), 
and (C) as clauses (i), (ii), and (iii), respectively; 
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(2) by striking ‘‘means any’’ and inserting the 
following: ‘‘means— 
‘‘(A) any’’; and 
(3) in clause (iii) (as so redesignated), by strik-
ing the period at the end and inserting ‘‘; or’’; and 
(4) by inserting at the end the following new 
subparagraph: 
‘‘(B) any bank described in clause (i), (ii), 
or (iii) of section 19(b)(1)(A) of the Federal 
Reserve Act— 
‘‘(i) more than 50 percent of the out-
standing shares of which are held by 1 or 
more women; and 
‘‘(ii) the majority of the directors on 
the board of directors of which are 
women.’’. 
SEC. 5. ESTABLISHMENT OF IMPACT BANK DESIGNATION. 
(a) IN GENERAL.—Each appropriate Federal bank-
ing agency shall establish a program under which a deposi-
tory institution with total consolidated assets of less than 
$10,000,000,000 may elect to be designated as an impact 
bank if 50 percent or more of the loans extended by such 
covered bank are extended to low-income borrowers. 
(b) DESIGNATION.—Based on data obtained through 
examinations, an appropriate Federal banking agency 
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such depository institution no longer meets the cri-
teria for the designation; or 
(2) file an appeal in accordance with procedures 
established by the appropriate Federal banking 
agency. 
(g) RULEMAKING.—Not later than 1 year after the 
date of the enactment of this Act, the appropriate Federal 
banking agencies shall jointly issue rules to carry out the 
requirements of this section, including by providing a defi-
nition of a low-income borrower. 
(h) FEDERAL DEPOSIT INSURANCE ACT DEFINI-
TIONS.—In this section, the terms ‘‘depository institution’’ 
and ‘‘appropriate Federal banking agency’’ have the 
meanings given such terms, respectively, in section 3 of 
the Federal Deposit Insurance Act (12 U.S.C. 1813). 
SEC. 6. MINORITY DEPOSITORY INSTITUTIONS ADVISORY 
COMMITTEES. 
(a) ESTABLISHMENT.—Each covered regulator shall 
establish an advisory committee to be called the ‘‘Minority 
Depository Institutions Advisory Committee’’. 
(b) DUTIES.—Each Minority Depository Institutions 
Advisory Committee shall provide advice to the respective 
covered regulator on meeting the goals established by sec-
tion 308 of the Financial Institutions Reform, Recovery, 
and Enforcement Act of 1989 (12 U.S.C. 1463 note) to 
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preserve the present number of covered minority institu-
tions, preserve the minority character of minority-owned 
institutions in cases involving mergers or acquisitions, pro-
vide technical assistance, and encourage the creation of 
new covered minority institutions. The scope of the work 
of each such Minority Depository Institutions Advisory 
Committee shall include an assessment of the current con-
dition of covered minority institutions, what regulatory 
changes or other steps the respective agencies may be able 
to take to fulfill the requirements of such section 308, and 
other issues of concern to minority depository institutions. 
(c) MEMBERSHIP.— 
(1) IN
GENERAL.—Each Minority Depository 
Institutions Advisory Committee shall consist of no 
more than 10 members, who— 
(A) shall serve for one two-year term; 
(B) shall serve as a representative of a de-
pository institution or an insured credit union 
with respect to which the respective covered 
regulator is the covered regulator of such de-
pository institution or insured credit union; and 
(C) shall not receive pay by reason of their 
service on the advisory committee, but may re-
ceive travel or transportation expenses in ac-
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cordance with section 5703 of title 5, United 
States Code. 
(2) DIVERSITY.—To the extent practicable, 
each covered regulator shall ensure that the mem-
bers of Minority Depository Institutions Advisory 
Committee of such agency reflect the diversity of de-
pository institutions. 
(d) MEETINGS.— 
(1) IN
GENERAL.—Each Minority Depository 
Institutions Advisory Committee shall meet not less 
frequently than twice each year. 
(2) INVITATIONS.—Each Minority Depository 
Institutions Advisory Committee shall invite the at-
tendance at each meeting of the Minority Depository 
Institutions Advisory Committee of— 
(A) one member of the majority party and 
one member of the minority party of the Com-
mittee on Financial Services of the House of 
Representatives and the Committee on Bank-
ing, Housing, and Urban Affairs of the Senate; 
and 
(B) one member of the majority party and 
one member of the minority party of any rel-
evant subcommittees of such committees. 
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(e) NO TERMINATION OF ADVISORY COMMITTEES.— 
The termination requirements under section 14 of the 
Federal Advisory Committee Act (5 U.S.C. app.) shall not 
apply to a Minority Depository Institutions Advisory Com-
mittee established pursuant to this section. 
(f) DEFINITIONS.—In this section: 
(1) COVERED REGULATOR.—The term ‘‘covered 
regulator’’ means the Comptroller of the Currency, 
the Board of Governors of the Federal Reserve Sys-
tem, the Federal Deposit Insurance Corporation, 
and the National Credit Union Administration. 
(2) COVERED
MINORITY
INSTITUTION.—The 
term ‘‘covered minority institution’’ means a minor-
ity depository institution (as defined in section 
308(b) of the Financial Institutions Reform, Recov-
ery, and Enforcement Act of 1989 (12 U.S.C. 1463 
note)) or a minority credit union (as defined in sec-
tion 1204(c) of the Financial Institutions Reform, 
Recovery, and Enforcement Act of 1989, as amend-
ed by this Act). 
(3) DEPOSITORY INSTITUTION.—The term ‘‘de-
pository institution’’ has the meaning given under 
section 3 of the Federal Deposit Insurance Act (12 
U.S.C. 1813). 
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(4) INSURED CREDIT UNION.—The term ‘‘in-
sured credit union’’ has the meaning given in section 
101 of the Federal Credit Union Act (12 U.S.C. 
1752). 
(g) TECHNICAL AMENDMENT.—Section 308(b) of the 
Financial Institutions Reform, Recovery, and Enforce-
ment Act of 1989 (12 U.S.C. 1463 note) is amended by 
adding at the end the following new paragraph: 
‘‘(3) DEPOSITORY INSTITUTION.—The term ‘de-
pository institution’ means an ‘insured depository in-
stitution’ (as defined in section 3 of the Federal De-
posit Insurance Act (12 U.S.C. 1813)) and an in-
sured credit union (as defined in section 101 of the 
Federal Credit Union Act (12 U.S.C. 1752)).’’. 
SEC. 7. FEDERAL DEPOSITS IN MINORITY DEPOSITORY IN-
STITUTIONS. 
(a) IN GENERAL.—Section 308 of the Financial In-
stitutions Reform, Recovery, and Enforcement Act of 
1989 (12 U.S.C. 1463 note) is amended— 
(1) by adding at the end the following new sub-
section: 
‘‘(d) FEDERAL DEPOSITS.—The Secretary of the 
Treasury shall ensure that deposits made by Federal agen-
cies in minority depository institutions and impact banks 
are fully collateralized or fully insured, as determined by 
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the Secretary. Such deposits shall include reciprocal de-
posits as defined in section 337.6(e)(2)(v) of title 12, Code 
of Federal Regulations (as in effect on March 6, 2019).’’; 
and 
(2) in subsection (b), as amended by section 
6(g), by adding at the end the following new para-
graph: 
‘‘(4) IMPACT BANK.—The term ‘impact bank’ 
means a depository institution designated by an ap-
propriate Federal banking agency pursuant to sec-
tion 5 of the Ensuring Diversity in Community 
Banking Act of 2019.’’. 
(b) TECHNICAL AMENDMENTS.—Section 308 of the 
Financial Institutions Reform, Recovery, and Enforce-
ment Act of 1989 (12 U.S.C. 1463 note) is amended— 
(1) in the matter preceding paragraph (1), by 
striking ‘‘section—’’ and inserting ‘‘section:’’; and 
(2) in the paragraph heading for paragraph (1), 
by striking ‘‘FINANCIAL’’ and inserting ‘‘DEPOSI-
TORY’’. 
SEC. 8. MINORITY BANK DEPOSIT PROGRAM. 
(a) IN GENERAL.—Section 1204 of the Financial In-
stitutions Reform, Recovery, and Enforcement Act of 
1989 (12 U.S.C. 1811 note) is amended to read as follows: 
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‘‘SEC. 1204. EXPANSION OF USE OF MINORITY BANKS AND 
MINORITY CREDIT UNIONS. 
‘‘(a) MINORITY BANK DEPOSIT PROGRAM.— 
‘‘(1) ESTABLISHMENT.—There is established a 
program to be known as the ‘Minority Bank Deposit 
Program’ to expand the use of minority banks and 
minority credit unions. 
‘‘(2) ADMINISTRATION.—The Secretary of the 
Treasury, acting through the Fiscal Service, shall— 
‘‘(A) on application by a depository institu-
tion or credit union, certify whether such depos-
itory institution or credit union is a minority 
bank or minority credit union; 
‘‘(B) maintain and publish a list of all de-
pository institutions and credit unions that have 
been certified pursuant to subparagraph (A); 
and 
‘‘(C) periodically distribute the list de-
scribed in subparagraph (B) to— 
‘‘(i) all Federal departments and 
agencies; 
‘‘(ii) interested State and local govern-
ments; and 
‘‘(iii) interested private sector compa-
nies. 
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‘‘(3) INCLUSION
OF
CERTAIN
ENTITIES
ON 
LIST.—A depository institution or credit union that, 
on the date of the enactment of this section, has a 
current certification from the Secretary of the 
Treasury stating that such depository institution or 
credit union is a minority bank or minority credit 
union shall be included on the list described under 
paragraph (2)(B). 
‘‘(b) EXPANDED USE AMONG FEDERAL DEPART-
MENTS AND AGENCIES.— 
‘‘(1) IN GENERAL.—Not later than 1 year after 
the establishment of the program described in sub-
section (a), the head of each Federal department or 
agency shall develop and implement standards and 
procedures to ensure, to the maximum extent pos-
sible as permitted by law, the use of minority banks 
and minority credit unions to serve the financial 
needs of each such department or agency. 
‘‘(2) REPORT TO CONGRESS.—Not later than 2 
years after the establishment of the program de-
scribed in subsection (a), and annually thereafter, 
the head of each Federal department or agency shall 
submit to Congress a report on the actions taken to 
increase the use of minority banks and minority 
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credit unions to serve the financial needs of each 
such department or agency. 
‘‘(c) DEFINITIONS.—For purposes of this section: 
‘‘(1) CREDIT UNION.—The term ‘credit union’ 
has the meaning given the term ‘insured credit 
union’ in section 101 of the Federal Credit Union 
Act (12 U.S.C. 1752). 
‘‘(2) DEPOSITORY INSTITUTION.—The term ‘de-
pository institution’ has the meaning given the term 
‘insured depository institution’ in section 3 of the 
Federal Deposit Insurance Act (12 U.S.C. 1813). 
‘‘(3) MINORITY.—The term ‘minority’ means 
any Black American, Native American, Hispanic 
American, or Asian American. 
‘‘(4) MINORITY
BANK.—The term ‘minority 
bank’ means a minority depository institution as de-
fined in section 308 of this Act. 
‘‘(5) MINORITY CREDIT UNION.—The term ‘mi-
nority credit union’ means any credit union for 
which more than 50 percent of the membership (in-
cluding board members) of such credit union are mi-
nority individuals, as determined by the National 
Credit Union Administration pursuant to section 
308 of this Act.’’. 
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(b) CONFORMING AMENDMENTS.—The following pro-
visions are amended by striking ‘‘1204(c)(3)’’ and insert-
ing ‘‘1204(c)’’: 
(1) Section 808(b)(3) of the Community Rein-
vestment Act of 1977 (12 U.S.C. 2907(b)(3)). 
(2) Section 40(g)(1)(B) of the Federal Deposit 
Insurance Act (12 U.S.C. 1831q(g)(1)(B)). 
(3) Section 704B(h)(4) of the Equal Credit Op-
portunity Act (15 U.S.C. 1691c–2(h)(4)). 
SEC. 9. DIVERSITY REPORT AND BEST PRACTICES. 
(a) ANNUAL REPORT.—Each covered regulator shall 
submit to Congress an annual report on diversity includ-
ing the following: 
(1) Data, based on voluntary self-identification, 
on the racial, ethnic, and gender composition of the 
examiners of each covered regulator, disaggregated 
by length of time served as an examiner. 
(2) The status of any examiners of covered reg-
ulators, based on voluntary self-identification, as a 
veteran. 
(3) Whether any covered regulator, as of the 
date on which the report required under this section 
is submitted, has adopted a policy, plan, or strategy 
to promote racial, ethnic, and gender diversity 
among examiners of the covered regulator. 
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(4) Whether any special training is developed 
and provided for examiners related specifically to 
working with banks that serve communities that are 
predominantly minorities, low income, or rural, and 
the key focus of such training. 
(b) BEST PRACTICES.—Each Office of Minority and 
Women Inclusion of a covered regulator shall develop, pro-
vide to the head of the covered regulator, and make pub-
licly available best practices— 
(1) for increasing the diversity of candidates 
applying for examiner positions, including through 
outreach efforts to recruit diverse candidate to apply 
for entry-level examiner positions; and 
(2) for retaining and providing fair consider-
ation for promotions within the examiner staff for 
purposes of achieving diversity among examiners. 
(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. 
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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 of 2019) 
or a minority depository institution (as defined 
in section 308(b) of the Financial Institutions 
Reform, Recovery, and Enforcement Act of 
1989), of an individual to vote 30 percent of 
more of any class of voting securities of such an 
impact bank or a minority depository institu-
tion.’’. 
(b) RULEMAKING.—The appropriate Federal banking 
agency (as defined in section 3 of the Federal Deposit In-
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surance Act (12 U.S.C. 1813)) shall jointly issue rules for 
de novo minority depository institutions and de novo im-
pact banks (as designated pursuant to section 5) to allow 
3 years to meet the capital requirements otherwise appli-
cable to minority depository institutions and impact 
banks. 
(c) REPORT.—Not later than 1 year after the date 
of the enactment of this Act, the appropriate 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. REQUIREMENT TO MENTOR MINORITY DEPOSI-
TORY INSTITUTIONS OR COMMUNITY DEVEL-
OPMENT FINANCIAL INSTITUTIONS TO SERVE 
AS A DEPOSITARY OR FINANCIAL AGENT. 
(a) IN GENERAL.—Before a large financial institu-
tion may be employed as a financial agent of the Depart-
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ment of the Treasury or perform any reasonable duties 
as depositary of public moneys of the Department of the 
Treasury, the large financial institution shall demonstrate 
participation as a mentor in a covered mentor-protege pro-
gram to a protege firm that is a minority depository insti-
tution or a community development financial institution. 
(b) 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 an analysis of outcomes of such program. 
(c) PROCEDURES.—The Secretary of the Treasury 
shall publish procedures for compliance with the require-
ments of this section for large financial institutions. 
(d) 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-
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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) ESTABLISHMENT.—The Secretary of the Treas-
ury shall establish a custodial deposit program (in this sec-
tion referred to as the ‘‘Program’’) under which a covered 
bank shall receive monthly deposits from a qualifying ac-
count. 
(b) APPLICATION.—A covered bank shall submit to 
the Secretary an application to participate in the Program 
at such time, in such manner, and containing such infor-
mation as the Secretary may determine. 
(c) PROGRAM OPERATIONS.— 
(1) DESIGNATION OF CUSTODIAL ENTITIES.— 
The Secretary shall designate eligible custodial enti-
ties to make monthly deposits with covered banks se-
lected for participation in the Program on behalf of 
a qualifying account. 
(2) CUSTODIAL ACCOUNTS.— 
(A) IN GENERAL.—The Secretary shall es-
tablish a custodial deposit account for each 
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qualifying account with the eligible custodial en-
tity designated to make deposits with covered 
banks for each such qualifying account. 
(B) AMOUNT.—The Secretary shall deposit 
a total amount not greater than 5 percent of a 
qualifying account into any custodial deposit ac-
counts established under subparagraph (A). 
(C) DEPOSITS
WITH
PROGRAM
PARTICI-
PANTS.— 
(i) 
MONTHLY
DEPOSITS.—Each 
month, each eligible custodial entity des-
ignated by the Secretary shall deposit an 
amount not greater than the insured 
amount, in the aggregate, from each custo-
dial deposit account, in a single covered 
bank. 
(ii) LIMITATION.—With respect to the 
funds of an individual qualifying account, 
the eligible custodial entity may not de-
posit an amount greater than the insured 
amount in a single covered bank. 
(iii) INSURED AMOUNT DEFINED.—In 
this subparagraph, the term ‘‘insured 
amount’’ means the amount that is the 
greater of— 
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(I) the standard maximum de-
posit insurance amount (as defined in 
section 11(a)(1)(E) of the Federal 
Deposit Insurance Act (12 U.S.C. 
1821(a)(1)(E))); or 
(II) such higher amount nego-
tiated between the Secretary and the 
Corporation under which the Corpora-
tion will insure all deposits of such 
higher amount. 
(D) LIMITATIONS.—The total amount of 
funds deposited under the Program in a covered 
bank may not exceed the lesser of— 
(i) 10 percent of the average amount 
of deposits held by such covered bank in 
the previous quarter; or 
(ii) $100,000,000. 
(3) INTEREST.— 
(A) IN GENERAL.—Each eligible custodial 
entity designated by the Secretary shall— 
(i) collect interest from each covered 
bank in which such custodial entity depos-
its funds pursuant to paragraph (2); and 
(ii) disburse such interest to the Sec-
retary each month. 
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(B) INTEREST RATE.—The rate of any in-
terest collected under this paragraph may not 
exceed 50 percent of the discount window pri-
mary credit interest rate most recently pub-
lished on the Federal Reserve Statistical Re-
lease on selected interest rates (daily or week-
ly), commonly referred to as the H.15 release 
(commonly known as the ‘‘Federal funds rate’’). 
(4) STATEMENTS.—Each eligible custodial enti-
ty designated by the Secretary shall submit to the 
Secretary monthly statements that include the total 
amount of funds deposited with, and interest rate 
received from, each covered bank by the eligible cus-
todial entity on behalf of qualifying entities. 
(5) RECORDS.—The Secretary shall issue a 
quarterly report to Congress and make publicly 
available a record identifying all covered banks 
participatinig in the Program and amounts depos-
ited under the Program in covered banks. 
(d) REQUIREMENTS RELATING TO DEPOSITS.—De-
posits made with covered banks under this section may 
not— 
(1) be considered by the Corporation to be 
funds obtained, directly or indirectly, by or through 
any deposit broker for deposit into 1 or more deposit 
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accounts (as described under section 29 of the Fed-
eral Deposit Insurance Act (12 U.S.C. 1831f)); or 
(2) be subject to insurance fees from the Cor-
poration that are greater than insurance fees for 
typical demand deposits not obtained, directly or in-
directly, by or through any deposit broker (com-
monly known as ‘‘core deposits’’). 
(e) MODIFICATIONS.— 
(1) IN GENERAL.—The Secretary shall provide 
a 3-month period for public notice and comment be-
fore making any material change to the operation of 
the Program. 
(2) EXCEPTION.—The requirements of para-
graph (1) shall not apply if the Secretary makes a 
material change to the Program to comply with safe-
ty and soundness standards or other law. 
(f) TERMINATION.— 
(1) BY COVERED BANK.—A covered bank se-
lected for participation in the Program pursuant to 
subsection (c) may terminate participation in the 
Program by providing the Secretary a notification 
60 days prior to termination. 
(2) BY SECRETARY.—The Secretary may termi-
nate the participation of a covered bank in the Pro-
gram if the Secretary determines the covered bank— 
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(A) violated any terms of participation in 
the Program; 
(B) failed to comply with Federal bank se-
crecy laws, as documented in writing by the pri-
mary regulator of the covered bank; 
(C) failed to remain well capitalized; or 
(D) failed comply with safety and sound-
ness standards, as documented in writing by 
the primary regulator of the covered bank. 
(g) DEFINITIONS.—In this section: 
(1) CORPORATION.—The term ‘‘Corporation’’ 
means the Federal Deposit Insurance Corporation. 
(2) COVERED BANK.—The term ‘‘covered bank’’ 
means— 
(A) a minority depository institution that 
is regulated by the Corporation or the National 
Credit Union Administration that is well cap-
italized (as defined in section 38(b) of the Fed-
eral 
Deposit 
Insurance 
Act 
(12 
U.S.C. 
1831o(b))); or 
(B) a depository institution designated 
pursuant to section 5 of the Ensuring Diversity 
in Community Banking Act of 2019 that is well 
capitalized (as defined in section 38(b) of the 
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Federal Deposit Insurance Act (12 U.S.C. 
1831o(b))). 
(3) ELIGIBLE CUSTODIAL ENTITY.—The term 
‘‘eligible custodial entity’’ means— 
(A) an insured depository institution (as 
defined in section 3 of the Federal Deposit In-
surance Act (12 U.S.C. 1813)), 
(B) an insured credit union (as defined in 
section 101 of the Federal Credit Union Act 
(12 U.S.C. 1752)), or 
(C) or a well capitalized State-chartered 
trust company, 
designated by the Secretary under subsection (c)(1). 
(4) FEDERAL BANK SECRECY LAWS.—The term 
‘‘Federal bank secrecy laws’’ means— 
(A) section 21 of the Federal Deposit In-
surance Act (12 U.S.C. 1829b); 
(B) section 123 of Public Law 91–508; 
and 
(C) subchapter II of chapter 53 of title 31, 
United States Code. 
(5) 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 
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(B) is expected to maintain a balance 
greater than $200,000,000 for the following 
calendar month. 
(6) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Treasury. 
(7) WELL CAPITALIZED.—The term ‘‘well cap-
italized’’ has the meaning given in section 38 of the 
Federal Deposit Insurance Act (12 U.S.C. 1831o). 
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 
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(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 that serves low- and moderate-income 
neighborhoods (as defined under the Community Re-
investment Act of 1977 (12 U.S.C. 2901 et seq.)). 
(b) REPORT ON IMPLEMENTATION.—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 proce-
dures 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 
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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 of 2019); 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)). 
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(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. 
Æ 
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