SEC. 1514. CAPITAL AND OPERATING ASSISTANCE FOR
COMMUNITY DEVELOPMENT LENDERS.
(a) AUTHORITY.—The Secretary may provide assist-
ance under this section to community development lenders
and eligible entities establishing community development
lenders, for the purposes under subsection (b).
(b) PURPOSES.—Assistance under this section may
be used only as provided in the assistance agreement
under section 1517 for the community development lender
or eligible entity and only for the following purposes:
(1) FEASIBILITY STUDIES.—To carry out stud-
ies to determine the feasibility of establishing a pro-
gram to make loans for the purposes under section
1513(b) within a particular low-income neighbor-
hood.
(2) CAPITAL ASSISTANCE.—To provide capital
for the community development lender—
(A) to establish or supplement amounts
available for loans for the purposes under sec-
tion 1513(b);
(B) to provide credit enhancement for
loans for the purposes under section 1513(b);
(C) to establish or supplement capital re-
serves of the lender; and
(D) to carry out other activities, as the
Secretary may provide.
(3) OPERATING COSTS.—To provide amounts to
cover operating costs of the community development
lender, including marketing and management activi-
ties, business planning and counseling services, staff
training, planning costs, costs relating to establish-
ing the community development lender or changing
the activities or management of a financial institu-
tion or other organization or entity to include com-
munity development lending activities.
(c) OTHER TERMS.—The Secretary may establish
any terms and conditions of assistance under this section
that the Secretary considers appropriate to carry out the
purposes of this subtitle, including limitations on the
amount of assistance provided to any community develop-
ment lender or eligible entity, limitations on the number
of applications that may be approved for any single com-
munity development lender or eligible entity, and require-
ments and limitations for the amounts and timing of the
disbursement of assistance.
(d) NON-FEDERAL
FUNDS
REQUIREMENT.—The
Secretary may not provide assistance under this section
to any eligible entity for the establishment of a community
development lender in an amount in excess of 9 times the
amount that the entity certifies, as the Secretary shall re-
quire, that the entity will contribute from non-Federal
sources to the community development lender established
with amounts provided under this section.
SEC. 1515. REQUIREMENTS OF ASSISTED COMMUNITY DE-
VELOPMENT LENDERS.
(a) PROHIBITION OF DIRECT ASSISTANCE.—A com-
munity development lender that receives assistance under
section 1514 (or established by an eligible entity that re-
ceives such assistance) may not provide amounts to any
person from assistance received under such section in the
form of a grant or nonrepayable advance or on any other
nonrepayable basis, during the assistance agreement term
established by the assistance agreement for the lender
under section 1517.
(b) LOW-INCOME FAMILY REQUIREMENTS.—
(1) REQUIREMENT.—In each calendar year dur-
ing the applicable assistance agreement term, a com-
munity development lender that receives assistance
under section 1514 (or established by an eligible en-
tity that receives such assistance) shall make loans
under section 1513(b) benefiting low-income fami-
lies—
(A) in a number that is not less than 50
percent of the total number of loans made by
the lender during such year; and
(B) in an amount such that the sum of the
principal amounts of such loans is not less than
50 percent of the sum of the principal amounts
of all loans made by the lender during such
year.
(2) DETERMINATION OF BENEFIT.—
(A) DIRECT
BENEFIT.—A loan shall be
considered to benefit a low-income family for
purposes of paragraph (1) if the loan—
(i) is made to such a family;
(ii) is made for an activity that is car-
ried out in a low-income neighborhood and
for providing services for such families;
(iii) is made for providing facilities de-
signed for the use predominantly by such
families; or
(iv) is made for an activity that in-
volves employment of persons, a majority
of whom are members of such families.
(B) ACTIVITIES OF GENERAL BENEFIT.—
In any case in which an activity assisted with
a loan is designed to serve an area generally
and is clearly designed to meet identified needs
of low-income families in such area, such loan
or activity shall be considered to benefit low-in-