later than 210 days after the date of enactment of this
Act.
SEC. 7. ASSISTANCE PROVIDED BY THE FUND.
(a) PURPOSE OF ASSISTANCE.—
(1) The Fund shall work to promote an envi-
ronment hospitable to business information, eco-
nomic growth, community development, and afford-
able housing in distressed communities. The Fund
shall coordinate its activities with existing Federal
and other community and economic development
programs.
(2) Assistance may be provided to an existing
qualified community development financial institu-
tion to expand its activities to serve investment
areas or targeted populations not currently served by
another qualified community development financial
institution receiving assistance under this section or
to expand the volume of its activities consistent with
the purposes of this Act, or to form a new entity to
undertake activities consistent with the purposes of
this Act, or to assist an existing entity to modify its
structure or activities in order to undertake activi-
ties consistent with the purposes of this Act.
(b) TYPES OF ASSISTANCE.—
(1) IN GENERAL.—The Fund may provide fi-
nancial assistance to qualified community develop-
ment financial institutions through equity invest-
ments, loans, deposits, membership shares, and
grants. The Fund may also provide technical assist-
ance, including training, and grants for technical as-
sistance to qualified community development finan-
cial institutions. The allocation of awards of assist-
ance between insured and uninsured community de-
velopment financial institutions shall be in the dis-
cretion of the Board: Provided, That due consider-
ation shall be given to the allocation of funds to in-
sured community development financial institutions.
(2) FINANCIAL ASSISTANCE.—The Fund shall
structure financial assistance to a qualified commu-
nity development financial institution in such a man-
ner that it does not own more than 50 percent of
the equity of such institution and does not control
the operations of such institution. The Fund will not
be deemed to control such institution for the pur-
poses of applicable laws. With respect to equity in-
vestments, the Fund shall hold only transferable,
nonvoting investments. Such equity investments may
provide for convertibility to voting stock upon trans-
fer by the Fund.
(3) DEPOSITS.—Notwithstanding any other
provision of law, deposits made pursuant to this sec-
tion in qualified insured community development fi-
nancial institutions shall not be subject to any re-
quirement for collateral or security.
(4) LIMITATIONS
ON
OBLIGATIONS.—Direct
loan obligations may be incurred only to the extent
that appropriations of budget authority to cover
their costs, as defined in section 502 of the Congres-
sional Budget Act of 1974, are made in advance.
(c) PURPOSE OF FINANCIAL ASSISTANCE.—Financial
assistance made available under this Act may be used by
assisted institutions to develop or support—
(1) commercial facilities that enhance revitaliza-
tion, community stability, or job creation and reten-
tion efforts;
(2) business creation and expansion efforts
that—
(A) create or retain jobs for low-income
people;
(B) enhance the availability of products
and services to low-income people; or
(C) create or retain businesses owned by
low-income people or residents of a targeted
area;
(3) community facilities that provide benefits to
low-income people or enhance community stability;
(4) the provision of basic financial services to
low-income people or residents of a targeted area;
(5) the provision of development services;
(6) home ownership opportunities that are af-
fordable to low-income households;
(7) rental housing that is principally affordable
to low-income households; and
(8) other activities deemed appropriate by the
Fund.
(d) AMOUNT OF ASSISTANCE.—The Fund may pro-
vide up to $5,000,000 of assistance per application to any
one qualified insured community development financial in-
stitution and up to $2,000,000 per application to any
other qualified community development financial institu-
tion. The Fund shall have the authority to set minimum
amounts of assistance per institution.
(e) MATCHING REQUIREMENTS.—
(1) Assistance provided to qualified insured
community development financial institutions, other
than deposits or membership shares of $100,000 or
less, technical assistance, or grants for technical as-
sistance, shall be matched by no less than one dollar
of equity, deposits or membership shares for each
dollar provided by the Fund. The Fund shall require
a match for all other assistance, the amount and
form of which shall be in the discretion of the Fund:
Provided, That the Fund shall in no event require
assistance provided in the form of deposits or mem-
bership shares of $100,000 or less, technical assist-
ance, or grants for technical assistance to be
matched. The Fund shall provide no assistance ex-
cept technical assistance or grants for technical as-
sistance until a qualified community development fi-
nancial institution has secured legally enforceable
commitments for the entire match required. Assist-
ance may be provided in one lump sum, or over a
period of time, as determined by the Fund.
(2) Assistance shall be matched with funds
from sources other than the Federal Government.
(f) TERMS AND CONDITIONS.—
(1) IN GENERAL.—The Fund shall provide as-
sistance authorized under this Act in such form and
subject to such restrictions as are necessary to en-
sure that to the maximum extent practicable—
(A) all assistance granted is used by the
qualified community development financial in-
stitution in a manner consistent with the pur-
poses of this Act;
(B) qualified community development fi-
nancial institutions receiving assistance that are
not otherwise regulated by the Federal Govern-
ment or by a State government are financially
and managerially sound;
(C) assistance results in a net increase,
both nationally and in the local communities in
which assistance is provided, in capital, credit,
and development services; and
(D) assistance is provided in a manner
that encourages affiliations and partnerships
between insured depository institutions, second-
ary markets or other sources of credit or lever-
age and local organizations dedicated to com-
munity development.
(2) CONSULTATION
WITH
BANKING
REGU-
LATORS.—Prior to providing assistance to a quali-
fied insured community development financial insti-
tution, the Board should consult with the appro-
priate Federal banking agency or, in the case of an
insured credit union, the National Credit Union Ad-
ministration.
(3) ASSISTANCE AGREEMENT.—
(A) The Board shall impose restrictions on
the use of assistance through a stock purchase