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) According to the CDFI Fund, some pro-
grams attract as much as $10 in private capital for 
every $1 invested by the CDFI Fund. The Adminis-
tration and the Congress should prioritize appropria-
tion of funds for the loan loss reserve fund and tech-
nical assistance programs administered by the Com-
munity Development Financial Institution Fund. 
SEC. 3. DEFINITIONS. 
In this Act: 
(1) COMMUNITY DEVELOPMENT FINANCIAL IN-
STITUTION.—The term ‘‘community development fi-
nancial institution’’ has the meaning given under 
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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; 
(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: 
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‘‘(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 Federal banking agency 
shall establish a program under which a depository institu-
tion with total consolidated assets of less than 
$10,000,000,000 may elect to be designated as an impact 
bank if the total dollar value of the loans extended by such 
depository institution to low-income borrowers is greater 
than or equal to 50 percent of the assets of such bank. 
(b) NOTIFICATION OF ELIGIBILITY.—Based on data 
obtained through examinations of depository institutions, 
the appropriate Federal banking agency shall notify a de-
pository institution if the institution is eligible to be des-
ignated as an impact bank. 
(c) APPLICATION.—Regardless of whether or not it 
has received a notice of eligibility under subsection (b), 
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a depository institution may submit an application to the 
appropriate Federal banking agency— 
(1) requesting to be designated as an impact 
bank; and 
(2) demonstrating that the depository institu-
tion meets the applicable qualifications. 
(d) LIMITATION ON ADDITIONAL DATA REQUIRE-
MENTS.—The Federal banking agencies may only impose 
additional data collection requirements on a depository in-
stitution under this section if such data is— 
(1) necessary to process an application sub-
mitted by the depository institution to be designated 
an impact bank; or 
(2) with respect to a depository institution that 
is designated as an impact bank, necessary to ensure 
the depository institution’s ongoing qualifications to 
maintain such designation. 
(e) REMOVAL OF DESIGNATION.—If the appropriate 
Federal banking agency determines that a depository in-
stitution designated as an impact bank no longer meets 
the criteria for such designation, the appropriate Federal 
banking agency shall rescind the designation and notify 
the depository institution of such rescission. 
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(f) 
RECONSIDERATION
OF
DESIGNATION; 
AP-
PEALS.—Under such procedures as the Federal banking 
agencies may establish, a depository institution may— 
(1) submit to the appropriate Federal banking 
agency a request to reconsider a determination that 
such depository institution no longer meets the cri-
teria for the designation; or 
(2) file an appeal of such determination. 
(g) RULEMAKING.—Not later than 1 year after the 
date of the enactment of this Act, the Federal banking 
agencies shall jointly issue rules to carry out the require-
ments of this section, including by providing a definition 
of a low-income borrower. 
(h) REPORTS.—Each Federal banking agency shall 
submit an annual report to the Congress containing a de-
scription of actions taken to carry out this section. 
(i) FEDERAL DEPOSIT INSURANCE ACT DEFINI-
TIONS.—In this section, the terms ‘‘depository institu-
tion’’, ‘‘appropriate Federal banking agency’’, and ‘‘Fed-
eral banking agency’’ have the meanings given such terms, 
respectively, in section 3 of the Federal Deposit Insurance 
Act (12 U.S.C. 1813). 
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