1702 
a result of the COVID–19 pandemic. In April 2020, 
the Federal Reserve Bank of New York reported that 
minority- and women-owned businesses were not only 
more likely to show signs of limited financial health, 
but also twice as likely to be classified as ‘‘at risk’’ 
or ‘‘distressed’’ than their non-minority counterparts. 
(4) During the Coronavirus 2019 (COVID–19) 
pandemic, community development financial institu-
tions (CDFIs) and minority depository institutions 
(MDIs) have delivered needed capital and relief to un-
derserved communities, many of which have borne a 
disproportionate impact of the COVID–19 pandemic. 
Through August 8, 2020, CDFIs and MDIs have pro-
vided more than $16.4 billion in Paycheck Protection 
Program (PPP) loans to small businesses with a 
smaller median loan size of about $74,000 compared 
to the overall program median loan size of $101,000. 
(5) In addition to establishing relief funds and 
services for local businesses and individuals experi-
encing loss of income, CDFIs and MDIs have pro-
vided mortgage forbearances, loan deferments, and 
modifications to help address the needs of their bor-
rowers. CDFIs and MDIs are reaching underserved 
communities and minority-owned businesses at a crit-
ical time.
1703 
(6) The Community Development Financial In-
stitutions Fund (CDFI Fund) is an agency of the 
U.S. Department of the Treasury and was established 
by the Riegle Community Development and Regu-
latory Improvement Act of 1994. The mission of the 
CDFI Fund is ‘‘to expand economic opportunity for 
underserved people and communities by supporting 
the growth and capacity of a national network of 
community development lenders, investors, and finan-
cial service providers’’. As of September 15, 2020, 
there were 1,137 certified CDFIs in all 50 States, 
District of Columbia, Guam, and Puerto Rico. 
(7) Following the 2008 financial crisis and the 
disproportionate impact the Great Recession had on 
minority communities, the number of MDI banks fell 
more than 30 percent over the following decade, to 
143 as of the second quarter of 2020. Meanwhile, MDI 
credit unions have seen similar declines, with more 
than one-third of such institutions disappearing since 
2013. 
(b) SENSE OF CONGRESS.—The following is the sense 
of the Congress: 
(1) The Department of the Treasury, Board of 
Governors of the Federal Reserve System, Small Busi-
ness Administration (SBA), Office of the Comptroller
1704 
of the Currency, Federal Deposit Insurance Corpora-
tion, National Credit Union Administration, and 
other Federal agencies should take steps to support, 
engage with, and utilize minority depository institu-
tions and community development financial institu-
tions in the near term, especially as they carry out 
programs to respond to the COVID–19 pandemic, and 
the long term. 
(2) The Board of Governors of the Federal Re-
serve System should, consistent with its mandates, 
work to increase lending by minority depository insti-
tutions and community development financial insti-
tutions to underserved communities, and when appro-
priate, should work with the Department of the Treas-
ury to increase lending by minority depository insti-
tutions and community development financial insti-
tutions to underserved communities. 
(3) The Department of the Treasury and pruden-
tial regulators should establish a strategic plan iden-
tifying concrete steps that they can take to support 
existing minority depository institutions, as well as 
the formation of new minority depository institutions 
consistent with the goals established in the Financial 
Institutions Reform, Recovery, and Enforcement Act
1705 
of 1989 (FIRREA) to preserve and promote minority 
depository institutions. 
(4) Congress should increase funding and make 
other enhancements, including those provided by this 
legislation, to enhance the effectiveness of the CDFI 
Fund, especially reforms to support minority-owned 
and minority led CDFIs in times of crisis and be-
yond. 
(5) Congress should conduct robust and ongoing 
oversight of the Department of the Treasury, CDFI 
Fund, Federal prudential regulators, SBA, and other 
Federal agencies to ensure they fulfill their obligations 
under the law as well as implement this title and 
other laws in a manner that supports and fully uti-
lizes minority depository institutions and community 
development financial intuitions, as appropriate. 
(6) The investments made by the Secretary of the 
Treasury under this title and the amendments made 
by this title should be designed to maximize the ben-
efit to low- and moderate-income and minority com-
munities and contemplate losses to capital of the 
Treasury. 
SEC. 703. PURPOSE. 
The purpose of this title is to—
1706 
(1) establish programs to revitalize and provide 
long-term financial products and service availability 
for, and provide investments in, low- and moderate- 
income and minority communities; 
(2) respond to the unprecedented loss of Black- 
owned businesses and unemployment; and 
(3) otherwise enhance the stability, safety and 
soundness of community financial institutions that 
support low- and moderate-income and minority com-
munities. 
SEC. 704. CONSIDERATIONS; REQUIREMENTS FOR CREDI-
TORS. 
(a) IN GENERAL.—In exercising the authorities under 
this title and the amendments made by this title, the Sec-
retary of the Treasury shall take into consideration— 
(1) increasing the availability of affordable cred-
it for consumers, small businesses, and nonprofit or-
ganizations, including for projects supporting afford-
able housing, community-serving real estate, and 
other projects, that provide direct benefits to low- and 
moderate-income communities, low-income and un-
derserved individuals, and minorities; 
(2) providing funding to minority-owned or mi-
nority-led eligible institutions and other eligible insti-
1707 
tutions that have a strong track record of serving mi-
nority small businesses; 
(3) protecting and increasing jobs in the United 
States; 
(4) increasing the opportunity for small busi-
ness, affordable housing and community development 
in geographic areas and demographic segments with 
poverty and high unemployment rates that exceed the 
average in the United States; 
(5) ensuring that all low- and moderate-income 
community financial institutions may apply to par-
ticipate in the programs established under this title 
and the amendments made by this title, without dis-
crimination based on geography; 
(6) providing transparency with respect to use of 
funds provided under this title and the amendments 
made by this title; 
(7) promoting and engaging in financial edu-
cation to would-be borrowers; and 
(8) providing funding to eligible institutions 
that serve consumers, small businesses, and nonprofit 
organizations to support affordable housing, commu-
nity-serving real estate, and other projects that pro-
vide direct benefits to low- and moderate-income com-
1708 
munities, low-income individuals, and minorities di-
rectly affected by the COVID–19 pandemic. 
(b) REQUIREMENT
FOR CREDITORS.—Any creditor 
participating in a program established under this title or 
the amendments made by this title shall fully comply with 
all applicable statutory and regulatory requirements relat-
ing to fair lending. 
SEC. 705. NEIGHBORHOOD CAPITAL INVESTMENT PRO-
GRAM. 
Title IV of the CARES Act (Public Law 116–136) is 
amended— 
(1) in section 4002 (15 U.S.C. 9041)— 
(A) 
by 
redesignating 
paragraphs 
(7) 
through (10) as paragraphs (9) through (12), re-
spectively; and 
(B) by inserting after paragraph (6) the fol-
lowing: 
‘‘(7) LOW- AND MODERATE-INCOME COMMUNITY 
FINANCIAL INSTITUTION.—The term ‘low- and mod-
erate-income community financial institution’ means 
any financial institution that is— 
‘‘(A) a community development financial 
institution, as defined in section 103 of the Rie-
gle Community Development and Regulatory 
Improvement Act of 1994 (12 U.S.C. 4702); or
1709 
‘‘(B) a minority depository institution. 
‘‘(8) MINORITY DEPOSITORY INSTITUTION.—The 
term ‘minority depository institution’— 
‘‘(A) has the meaning given that term under 
section 308 of the Financial Institutions Reform, 
Recovery, and Enforcement Act of 1989 (12 
U.S.C. 1463 note); 
‘‘(B) means an entity considered to be a mi-
nority depository institution by— 
‘‘(i) the appropriate Federal banking 
agency (as such term is defined under sec-
tion 3 of the Federal Deposit Insurance 
Act); or 
‘‘(ii) the National Credit Union Ad-
ministration, in the case of an insured cred-
it union; and 
‘‘(C) means an entity listed in the Federal 
Deposit Insurance Corporation’s Minority De-
pository Institutions List published for the Sec-
ond Quarter 2020.’’; 
(2) in section 4003 (15 U.S.C. 9042), by adding 
at the end the following: 
‘‘(i) NEIGHBORHOOD
CAPITAL
INVESTMENT
PRO-
GRAM.— 
‘‘(1) DEFINITIONS.—In this subsection—
1710 
‘‘(A) the term ‘community development fi-
nancial institution’ has the meaning given the 
term in section 103 of the Riegle Community De-
velopment and Regulatory Improvement Act of 
1994 (12 U.S.C. 4702); 
‘‘(B) the term ‘Fund’ means the Community 
Development Financial Institutions Fund estab-
lished under section 104(a) of the Riegle Commu-
nity Development and Regulatory Improvement 
Act of 1994 (12 U.S.C. 4703(a)); 
‘‘(C) the term ‘minority’ means any Black 
American, Native American, Hispanic Amer-
ican, or Asian American; 
‘‘(D) the term ‘Program’ means the Neigh-
borhood Capital Investment Program established 
under paragraph (2); and 
‘‘(E) the ‘Secretary’ means the Secretary of 
the Treasury. 
‘‘(2) ESTABLISHMENT.—The Secretary of the 
Treasury shall establish a Neighborhood Capital In-
vestment Program (the ‘Program’) to support the ef-
forts of low- and moderate-income community finan-
cial institutions to, among other things, provide loans 
and forbearance for small businesses, minority-owned 
businesses, and consumers, especially in low-income
1711 
and underserved communities, by providing direct 
capital investments in low- and moderate-income 
community financial institutions. 
‘‘(3) APPLICATION.— 
‘‘(A) ACCEPTANCE.—The Secretary shall 
begin accepting applications for capital invest-
ments under the Program not later than the end 
of the 30-day period beginning on the date of en-
actment of this subsection, with priority in dis-
tribution given to low- and moderate-income 
community financial institutions that are mi-
nority lending institutions, as defined under sec-
tion 103 of the Community Development Bank-
ing and Financial Institutions Act of 1994 (12 
U.S.C. 4702). 
‘‘(B) REQUIREMENT TO PROVIDE A NEIGH-
BORHOOD INVESTMENT LENDING PLAN.— 
‘‘(i) IN GENERAL.—At the time that an 
applicant submits an application to the 
Secretary for a capital investment under 
the Program, the applicant shall provide the 
Secretary, along with the appropriate Fed-
eral banking agency, an investment and 
lending plan that—
1712 
‘‘(I) demonstrates that not less 
than 30 percent of the lending of the 
applicant over the past 2 fiscal years 
was made directly to low- and mod-
erate income borrowers, to borrowers 
that create direct benefits for low- and 
moderate-income populations, to other 
targeted populations as defined by the 
Fund, or any combination thereof, as 
measured by the total number and dol-
lar amount of loans; 
‘‘(II) describes how the business 
strategy and operating goals of the ap-
plicant will address community devel-
opment needs, which includes the needs 
of small businesses, consumers, non-
profit organizations, community devel-
opment, and other projects providing 
direct benefits to low- and moderate-in-
come communities, low-income individ-
uals, and minorities within the minor-
ity, rural, and urban low-income and 
underserved areas served by the appli-
cant;
1713 
‘‘(III) includes a plan to provide 
linguistically and culturally appro-
priate outreach, where appropriate; 
‘‘(IV) includes an attestation by 
the applicant that the applicant does 
not own, service, or offer any financial 
products at an annual percentage rate 
of more than 36 percent interest, as de-
fined in section 987(i)(4) of title 10, 
United States Code, and is compliant 
with State interest rate laws; and 
‘‘(V) includes details on how the 
applicant plans to expand or maintain 
significant lending or investment ac-
tivity in low- or moderate-income mi-
nority communities, to historically dis-
advantaged borrowers, and to minori-
ties that have significant unmet cap-
ital or financial services needs. 
‘‘(ii) COMMUNITY DEVELOPMENT LOAN 
FUNDS.—An applicant that is not an in-
sured community development financial in-
stitution or otherwise regulated by a Fed-
eral financial regulator shall submit the
1714 
plan described in clause (i) only to the Sec-
retary. 
‘‘(iii) DOCUMENTATION.—In the case 
of an applicant that is certified as a com-
munity development financial institution as 
of the date of enactment of this subsection, 
for purposes of clause (i)(I), the Secretary 
may rely on documentation submitted the 
Fund as part of certification compliance re-
porting. 
‘‘(4) INCENTIVES
TO
INCREASE
LENDING
AND 
PROVIDE AFFORDABLE CREDIT.— 
‘‘(A) 
REQUIREMENTS
ON
PREFERRED 
STOCK
AND
OTHER
FINANCIAL
INSTRUMENT.— 
Any financial instrument issued to Treasury by 
a low- and moderate-income community finan-
cial institution under the Program shall provide 
the following: 
‘‘(i) No dividends, interest or other 
payments shall exceed 2 percent per annum. 
‘‘(ii) After the first 24 months from the 
date of the capital investment under the 
Program, annual payments may be re-
quired, as determined by the Secretary and 
in accordance with this section, and ad-
1715 
justed downward based on the amount of af-
fordable credit provided by the low- and 
moderate-income community financial in-
stitution to borrowers in minority, rural, 
and urban low-income and underserved 
communities. 
‘‘(iii) During any calendar quarter 
after the initial 24-month period referred to 
in clause (ii), the annual payment rate of 
a low- and moderate-income community fi-
nancial institution shall be adjusted down-
ward to reflect the following schedule, based 
on lending by the institution relative to the 
baseline period: 
‘‘(I) If the institution in the most 
recent annual period prior to the in-
vestment provides significant lending 
or investment activity in low- or mod-
erate-income minority communities, 
historically disadvantaged borrowers, 
and to minorities that have significant 
unmet capital or financial services, the 
annual payment rate shall not exceed 
0.5 percent per annum.
1716 
‘‘(II) If the amount of lending 
within minority, rural, and urban 
low-income and underserved commu-
nities and to low- and moderate-in-
come borrowers has increased dollar for 
dollar based on the amount of the cap-
ital investment, the annual payment 
rate shall not exceed 1 percent per 
annum. 
‘‘(III) If the amount of lending 
within minority, rural, and urban 
low-income and underserved commu-
nities and to low- and moderate-in-
come borrowers has increased by twice 
the amount of the capital investment, 
the annual payment rate shall not ex-
ceed 0.5 percent per annum. 
‘‘(B) CONTINGENCY OF PAYMENTS BASED ON 
CERTAIN FINANCIAL CRITERIA.— 
‘‘(i) DEFERRAL.—Any annual pay-
ments under this subsection shall be deferred 
in any quarter or payment period if any of 
the following is true: 
‘‘(I) The low- and moderate-in-
come community institution fails to
1717 
meet the Tier 1 capital ratio or simi-
lar ratio as determined by the Sec-
retary. 
‘‘(II) The low- and moderate-in-
come community financial institution 
fails to achieve positive net income for 
the quarter or payment period. 
‘‘(III) The low- and moderate-in-
come community financial institution 
determines that the payment would be 
detrimental to the financial health of 
the institution. 
‘‘(ii) TESTING DURING NEXT PAYMENT 
PERIOD.—Any deferred annual payment 
under this subsection shall be tested against 
the metrics described in clause (i) at the be-
ginning of the next payment period, and 
such payments shall continue to be deferred 
until the metrics described in that clause 
are no longer applicable. 
‘‘(5) RESTRICTIONS.— 
‘‘(A) IN GENERAL.—Each low- and mod-
erate-income community financial institution 
may only issue financial instruments or senior
1718 
preferred stock under this subsection with an ag-
gregate principal amount that is— 
‘‘(i) not more than 15 percent of risk- 
weighted assets for an institution with as-
sets of more than $2,000,000,000; 
‘‘(ii) not more than 25 percent of risk- 
weighted assets for an institution with as-
sets of not less than $500,000,000 and not 
more than $2,000,000,000; and 
‘‘(iii) not more than 30 percent of risk- 
weighted assets for an institution with as-
sets of less than $500,000,000. 
‘‘(B) HOLDING OF INSTRUMENTS.—Holding 
any instrument of a low- and moderate-income 
community financial institution described in 
subparagraph (A) shall not give the Treasury or 
any successor that owns the instrument any 
rights over the management of the institution. 
‘‘(C) SALE OF INTEREST.—With respect to 
a capital investment made into a low- and mod-
erate-income community financial institution 
under this subsection, the Secretary— 
‘‘(i) except as provided in clause (iv), 
during the 10-year period following the in-
vestment, may not sell the interest of the
1719 
Secretary in the capital investment to a 
third party; 
‘‘(ii) shall provide the low- and mod-
erate-income community financial institu-
tion a right of first refusal to buy back the 
investment under terms that do not exceed 
a value as determined by an independent 
third party; and 
‘‘(iii) shall not sell more than a 5 per-
cent ownership interest in the capital in-
vestment to a single third party; and 
‘‘(iv) with the permission of the insti-
tution, may gift or sell the interest of the 
Secretary in the capital investment for a de 
minimus amount to a mission aligned non-
profit affiliate of an applicant that is an 
insured community development financial 
institution, as defined in section 103 of the 
Riegle Community Development and Regu-
latory Improvement Act of 1994 (12 U.S.C. 
4702). 
‘‘(v) CALCULATION OF OWNERSHIP FOR 
MINORITY DEPOSITORY INSTITUTIONS.—The 
calculation and determination of ownership 
thresholds for a depository institution to
1720 
qualify as a minority depository institution 
described in section 4002(7)(B) shall ex-
clude any dilutive effect of equity invest-
ments by the Federal Government, includ-
ing under the Program or through the 
Fund. 
‘‘(6) AVAILABLE AMOUNTS.—In carrying out the 
Program, the Secretary shall use not more than 
$13,000,000,000, from amounts appropriated under 
section 
4027, 
and 
shall 
use 
not 
less 
than 
$7,000,000,000 of such amount for direct capital in-
vestments under the Program. 
‘‘(7) TREATMENT OF CAPITAL INVESTMENTS.—In 
making any capital investment under the Program, 
the Secretary shall ensure that the terms of the invest-
ment are designed to ensure the investment receives 
Tier 1 capital treatment. 
‘‘(8) OUTREACH TO MINORITIES.—The Secretary 
shall require low- and moderate-income community 
financial institutions receiving capital investments 
under the Program to provide linguistically and cul-
turally appropriate outreach and advertising describ-
ing the availability and application process of receiv-
ing loans made possible by the Program through orga-
nizations, trade associations, and individuals that
1721 
represent or work within or are members of minority 
communities. 
‘‘(9) RESTRICTIONS.— 
‘‘(A) IN GENERAL.—Not later than the end 
of the 30-day period beginning on the date of en-
actment of this subsection, the Secretary of the 
Treasury shall issue rules setting restrictions on 
executive compensation, share buybacks, and div-
idend payments for recipients of capital invest-
ments under the Program. 
‘‘(B) RULE OF CONSTRUCTION.—The provi-
sions of section 4019 apply to investments made 
under the Program. 
‘‘(10) TERMINATION
OF
INVESTMENT
AUTHOR-
ITY.—The authority to make capital investments in 
low- and moderate-income community financial insti-
tutions, including commitments to purchase preferred 
stock or other instruments, provided under the Pro-
gram shall terminate on the date that is 36 months 
after the date of enactment of this subsection. 
‘‘(11) COLLECTION OF DATA.—Notwithstanding 
the Equal Credit Opportunity Act (15 U.S.C. 1691 et 
seq.)— 
‘‘(A) any low- and moderate-income com-
munity financial institution may collect data
1722 
described in section 701(a)(1) of that Act (15 
U.S.C. 1691(a)(1)) from borrowers and appli-
cants for credit for the purpose of monitoring 
compliance under the plan required under para-
graph (4)(B); and 
‘‘(B) a low- and moderate-income commu-
nity financial institution that collects the data 
described in subparagraph (A) shall not be sub-
ject to adverse action related to that collection by 
the Bureau of Consumer Financial Protection or 
any other Federal agency. 
‘‘(12) DEPOSIT OF FUNDS.—All funds received 
by the Secretary in connection with purchases made 
pursuant this subsection, including interest payments, 
dividend payments, and proceeds from the sale of any 
financial instrument, shall be deposited into the Fund 
and used to provide financial and technical assistance 
pursuant to section 108 of the Riegle Community De-
velopment and Regulatory Improvement Act of 1994 
(12 U.S.C. 4707), except that subsection (e) of that 
section shall be waived. 
‘‘(13) EQUITY
EQUIVALENT
INVESTMENT
OP-
TION.— 
‘‘(A) IN GENERAL.—The Secretary shall es-
tablish an Equity Equivalent Investment Op-
1723 
tion, under which, with respect to a specific in-
vestment in a low- and moderate-income commu-
nity financial institution— 
‘‘(i) 80 percent of such investment is 
made by the Secretary under the Program; 
and 
‘‘(ii) 20 percent of such investment if 
made by a banking institution. 
‘‘(B) REQUIREMENT
TO
FOLLOW
SIMILAR 
TERMS AND CONDITIONS.—The terms and condi-
tions applicable to investments made by the Sec-
retary under the Program shall apply to any in-
vestment made by a banking institution under 
this paragraph. 
‘‘(C) LIMITATIONS.—The amount of a spe-
cific investment described under subparagraph 
(A) may not exceed $10,000,000, but the receipt 
of an investment under subparagraph (A) shall 
not preclude the recipient from being eligible for 
other assistance under the Program. 
‘‘(D) BANKING INSTITUTION DEFINED.—In 
this paragraph, the term ‘banking institution’ 
means any entity with respect to which there is 
an appropriate Federal banking agency under 
section 3 of the Federal Deposit Insurance Act.
1724 
‘‘(j) APPLICATION OF THE MILITARY LENDING ACT.— 
‘‘(1) IN GENERAL.—No low- and moderate-in-
come community financial institution that receives 
an equity investment under subsection (i) shall, for so 
long as the investment or participation continues, 
make any loan at an annualized percentage rate 
above 36 percent, as determined in accordance with 
section 987(b) of title 10, United States Code (com-
monly known as the ‘Military Lending Act)’. 
‘‘(2) NO EXEMPTIONS PERMITTED.—The exemp-
tion authority of the Bureau under section 105(f) of 
the Truth in Lending Act (15 U.S.C. 1604(f)) shall 
not apply with respect to this subsection.’’. 
SEC. 706. EMERGENCY SUPPORT FOR CDFIS AND COMMU-
NITIES. 
(a) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to the Community Develop-
ment Financial Institutions Fund $2,000,000,000 for fiscal 
year 2021, for providing financial assistance and technical 
assistance under subparagraphs (A) and (B) of section 
108(a)(1) of the Community Development Banking and Fi-
nancial Institutions Act of 1994 (12 U.S.C. 4707(a)(1)), 
except that subsections (d) and (e) of such section 108 shall 
not apply to the provision of such assistance, for the Bank 
Enterprise Award program, and for financial assistance,
1725 
technical assistance, training, and outreach programs de-
signed to benefit Native American, Native Hawaiian, and 
Alaska Native communities and provided primarily 
through qualified community development lender organiza-
tions with experience and expertise in community develop-
ment banking and lending in Indian country, Native Amer-
ican organizations, Tribes and Tribal organizations, and 
other suitable providers. 
(b) SET ASIDES.—Of the amounts appropriated pur-
suant to the authorization under subsection (a), the fol-
lowing amounts shall be set aside: 
(1) Up to $400,000,000, to remain available 
until expended, to provide grants to community devel-
opment financial institutions— 
(A) to expand lending or investment activ-
ity in low- or moderate-income minority commu-
nities and to minorities that have significant 
unmet capital or financial services needs, of 
which not less than $10,000,000 may be for 
grants to benefit Native American, Native Ha-
waiian, and Alaska Native communities; and 
(B) using a formula that takes into account 
criteria such as certification status, financial 
and compliance performance, portfolio and bal-
ance sheet strength, a diversity of community de-
1726 
velopment financial institution business model 
types, and program capacity, as well as experi-
ence making loans and investments to those 
areas and populations identified in this para-
graph. 
(2) Up to $160,000,000, to remain available 
until expended, for technical assistance, technology, 
and training under sections 108(a)(1)(B) and 109, 
respectively, of the Riegle Community Development 
and Regulatory Improvement Act of 1994 (12 U.S.C. 
4707(a)(1)(B), 4708), with a preference for minority 
lending institutions. 
(3) Up to $800,000,000, to remain available 
until expended, shall be for providing financial assist-
ance, technical assistance, awards, training, and out-
reach programs described under subsection (a) to re-
cipients that are minority lending institutions. 
(c) 
ADMINISTRATIVE
EXPENSES.—Funds 
appro-
priated pursuant to the authorization under subsection (a) 
may be used for administrative expenses, including admin-
istration of Fund programs and the New Markets Tax Cred-
it Program under section 45D of the Internal Revenue Code. 
(d) DEFINITIONS.—In this section: 
(1) CDFI.—The term ‘‘CDFI’’ means a commu-
nity development financial institution, as defined in
1727 
section 103 of the Riegle Community Development 
and Regulatory Improvement Act of 1994 (12 U.S.C. 
4702). 
(2) FUND.—The term ‘‘Fund’’ means the Com-
munity Development Financial Institutions Fund es-
tablished under section 104(a) of the Riegle Commu-
nity Development and Regulatory Improvement Act 
of 1994 (12 U.S.C. 4703(a)). 
(3) MINORITY; 
MINORITY
LENDING
INSTITU-
TION.—The terms ‘‘minority’’ and ‘‘minority lending 
institution’’ have the meaning given those terms, re-
spectively, under section 103 of the Community Devel-
opment Banking and Financial Institutions Act of 
1994 (12 U.S.C. 4702). 
SEC. 707. ENSURING DIVERSITY IN COMMUNITY BANKING. 
(a) 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 established 
by the Riegle Community Development and Regu-
latory Improvement Act of 1994. The mission of the 
CDFI Fund is ‘‘to expand economic opportunity for 
underserved people and communities by supporting
1728 
the growth and capacity of a national network of 
community development lenders, investors, and finan-
cial service providers’’. A community development fi-
nancial institution (a ‘‘CDFI’’) is a specialized fi-
nancial 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, invest-
ments, or financial counseling in low-income commu-
nities. The CDFI Fund certifies CDFIs and CDEs. 
Becoming a certified CDFI or CDE allows organiza-
tions 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 Fi-
nancial and Technical Assistance awards to 
CDFIs to reinvest in the CDFI, and to build the 
capacity of the CDFI, including financing prod-
uct development and loan loss reserves. 
(C) The Native American CDFI Assistance 
Program, which provides CDFIs and sponsoring
1729 
entities Financial and Technical Assistance 
awards to increase lending and grow the number 
of CDFIs owned by Native Americans to help 
build capacity of such CDFIs. 
(D) The New Market Tax Credit Program, 
which provides tax credits for making equity in-
vestments in CDEs that stimulate capital invest-
ments in low-income communities. 
(E) The Capital Magnet Fund, which pro-
vides awards to CDFIs and nonprofit affordable 
housing organizations to finance affordable hous-
ing solutions and related economic development 
activities. 
(F) The Bond Guarantee Program, a source 
of long-term, patient capital for CDFIs to ex-
pand lending and investment capacity for com-
munity 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
1730 
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-
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, community 
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, al-
located 
$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
1731 
Fund. The Administration and the Congress should 
prioritize appropriation of funds for the loan loss re-
serve fund and technical assistance programs admin-
istered by the Community Development Financial In-
stitution Fund. 
(b) DEFINITIONS.—In this section: 
(1) COMMUNITY DEVELOPMENT FINANCIAL INSTI-
TUTION.—The term ‘‘community development finan-
cial institution’’ has the meaning given under section 
103 of the Riegle Community Development and Regu-
latory Improvement Act of 1994 (12 U.S.C. 4702). 
(2) MINORITY
DEPOSITORY
INSTITUTION.—The 
term ‘‘minority depository institution’’ has the mean-
ing given under section 308 of the Financial Institu-
tions Reform, Recovery, and Enforcement Act of 1989 
(12 U.S.C. 1463 note). 
(c) ESTABLISHMENT
OF IMPACT BANK DESIGNA-
TION.— 
(1) IN GENERAL.—Each Federal banking agency 
shall establish a program under which a depository 
institution with total consolidated assets of less than 
$10,000,000,000 may elect to be designated as an im-
pact bank if the total dollar value of the loans ex-
tended by such depository institution to low-income
1733 
to ensure the depository institution’s ongoing 
qualifications to maintain such designation. 
(5) REMOVAL OF DESIGNATION.—If the appro-
priate Federal banking agency determines that a de-
pository institution designated as an impact bank no 
longer meets the criteria for such designation, the ap-
propriate Federal banking agency shall rescind the 
designation and notify the depository institution of 
such rescission. 
(6) RECONSIDERATION
OF
DESIGNATION; AP-
PEALS.—Under such procedures as the Federal bank-
ing agencies may establish, a depository institution 
may— 
(A) submit to the appropriate Federal bank-
ing agency a request to reconsider a determina-
tion that such depository institution no longer 
meets the criteria for the designation; or 
(B) file an appeal of such determination. 
(7) 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 requirements of this subsection, including by pro-
viding a definition of a low-income borrower. 
(8) REPORTS.—Each Federal banking agency 
shall submit an annual report to the Congress con-
1734 
taining a description of actions taken to carry out 
this subsection. 
(9) FEDERAL DEPOSIT INSURANCE ACT DEFINI-
TIONS.—In this subsection, the terms ‘‘depository in-
stitution’’, ‘‘appropriate Federal banking agency’’, 
and ‘‘Federal banking agency’’ have the meanings 
given such terms, respectively, in section 3 of the Fed-
eral Deposit Insurance Act (12 U.S.C. 1813). 
(d) MINORITY
DEPOSITORIES
ADVISORY
COMMIT-
TEES.— 
(1) ESTABLISHMENT.—Each covered regulator 
shall establish an advisory committee to be called the 
‘‘Minority Depositories Advisory Committee’’. 
(2) DUTIES.—Each Minority Depositories Advi-
sory Committee shall provide advice to the respective 
covered regulator on meeting the goals established by 
section 308 of the Financial Institutions Reform, Re-
covery, and Enforcement Act of 1989 (12 U.S.C. 1463 
note) to preserve the present number of covered minor-
ity institutions, preserve the minority character of 
minority-owned institutions in cases involving merg-
ers or acquisitions, provide technical assistance, and 
encourage the creation of new covered minority insti-
tutions. The scope of the work of each such Minority 
Depositories Advisory Committee shall include an as-
1735 
sessment of the current condition 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 covered minority institutions. 
(3) MEMBERSHIP.— 
(A) IN GENERAL.—Each Minority Deposi-
tories Advisory Committee shall consist of no 
more than 10 members, who— 
(i) shall serve for one two-year term; 
(ii) shall serve as a representative of a 
depository institution or an insured credit 
union with respect to which the respective 
covered regulator is the covered regulator of 
such depository institution or insured credit 
union; and 
(iii) shall not receive pay by reason of 
their service on the advisory committee, but 
may receive travel or transportation ex-
penses in accordance with section 5703 of 
title 5, United States Code. 
(B) DIVERSITY.—To the extent practicable, 
each covered regulator shall ensure that the mem-
bers of the Minority Depositories Advisory Com-
1736 
mittee of such agency reflect the diversity of cov-
ered minority institutions. 
(4) MEETINGS.— 
(A) IN GENERAL.—Each Minority Deposi-
tories Advisory Committee shall meet not less fre-
quently than twice each year. 
(B) NOTICE AND INVITATIONS.—Each Mi-
nority Depositories Advisory Committee shall— 
(i) notify the Committee on Financial 
Services of the House of Representatives and 
the Committee on Banking, Housing, and 
Urban Affairs of the Senate in advance of 
each meeting of the Minority Depositories 
Advisory Committee; and 
(ii) invite the attendance at each meet-
ing of the Minority Depositories Advisory 
Committee of— 
(I) one member of the majority 
party and one member of the minority 
party of the Committee on Financial 
Services of the House of Representa-
tives and the Committee on Banking, 
Housing, and Urban Affairs of the 
Senate; and
1737 
(II) one member of the majority 
party and one member of the minority 
party of any relevant subcommittees of 
such committees. 
(5) NO
TERMINATION
OF
ADVISORY
COMMIT-
TEES.—The termination requirements under section 
14 of the Federal Advisory Committee Act (5 U.S.C. 
app.) shall not apply to a Minority Depositories Ad-
visory Committee established pursuant to this sub-
section. 
(6) DEFINITIONS.—In this subsection: 
(A) COVERED REGULATOR.—The term ‘‘cov-
ered regulator’’ means the Comptroller of the 
Currency, the Board of Governors of the Federal 
Reserve System, the Federal Deposit Insurance 
Corporation, and the National Credit Union Ad-
ministration. 
(B) COVERED MINORITY INSTITUTION.—The 
term ‘‘covered minority institution’’ means a mi-
nority depository institution (as defined in sec-
tion 308(b) of the Financial Institutions Reform, 
Recovery, and Enforcement Act of 1989 (12 
U.S.C. 1463 note)). 
(C) DEPOSITORY
INSTITUTION.—The term 
‘‘depository institution’’ has the meaning given
1738 
under section 3 of the Federal Deposit Insurance 
Act (12 U.S.C. 1813). 
(D) INSURED
CREDIT
UNION.—The term 
‘‘insured credit union’’ has the meaning given in 
section 101 of the Federal Credit Union Act (12 
U.S.C. 1752). 
(7) TECHNICAL AMENDMENT.—Section 308(b) of 
the Financial Institutions Reform, Recovery, and En-
forcement 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)).’’. 
(e) FEDERAL DEPOSITS IN MINORITY DEPOSITORY IN-
STITUTIONS.— 
(1) IN GENERAL.—Section 308 of the Financial 
Institutions Reform, Recovery, and Enforcement Act 
of 1989 (12 U.S.C. 1463 note) is amended— 
(A) by adding at the end the following new 
subsection:
1739 
‘‘(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 collateralized or insured, as determined by the Sec-
retary. Such deposits shall include reciprocal deposits as 
defined in section 337.6(e)(2)(v) of title 12, Code of Federal 
Regulations (as in effect on March 6, 2019).’’; and 
(B) in subsection (b), as amended by sub-
section (d)(7), by adding at the end the following 
new paragraph: 
‘‘(4) IMPACT
BANK.—The term ‘impact bank’ 
means a depository institution designated by the ap-
propriate Federal banking agency pursuant to section 
707(c) of the Promoting and Advancing Communities 
of Color through Inclusive Lending Act.’’. 
(2) TECHNICAL AMENDMENTS.—Section 308 of 
the Financial Institutions Reform, Recovery, and En-
forcement Act of 1989 (12 U.S.C. 1463 note) is 
amended— 
(A) in the matter preceding paragraph (1), 
by striking ‘‘section—’’ and inserting ‘‘section:’’; 
and 
(B) in the paragraph heading for para-
graph (1), by striking ‘‘FINANCIAL’’ and insert-
ing ‘‘DEPOSITORY’’.
1740 
(f) MINORITY BANK DEPOSIT PROGRAM.— 
(1) IN GENERAL.—Section 1204 of the Financial 
Institutions Reform, Recovery, and Enforcement Act 
of 1989 (12 U.S.C. 1811 note) is amended to read as 
follows: 
‘‘SEC. 1204. EXPANSION OF USE OF MINORITY DEPOSITORY 
INSTITUTIONS. 
‘‘(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 depository 
institutions. 
‘‘(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 deposi-
tory institution or credit union is a minority de-
pository institution; 
‘‘(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—
1741 
‘‘(i) all Federal departments and agen-
cies; 
‘‘(ii) interested State and local govern-
ments; and 
‘‘(iii) interested private sector compa-
nies. 
‘‘(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 cur-
rent certification from the Secretary of the Treasury 
stating that such depository institution or credit 
union is a minority depository institution shall be 
included on the list described under paragraph 
(2)(B). 
‘‘(b) EXPANDED USE AMONG FEDERAL DEPARTMENTS 
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 prioritize, to the maximum extent pos-
sible as permitted by law and consistent with prin-
ciples of sound financial management, the use of mi-
nority depository institutions to hold the deposits of 
each such department or agency.
1742 
‘‘(2) REPORT TO CONGRESS.—Not later than 2 
years after the establishment of the program described 
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 depository institutions to hold the de-
posits 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 in section 
3 of the Federal Deposit Insurance Act (12 U.S.C. 
1813). 
‘‘(3) MINORITY DEPOSITORY INSTITUTION.—The 
term ‘minority depository institution’ has the mean-
ing given that term under section 308 of this Act.’’. 
(2) CONFORMING AMENDMENTS.—The following 
provisions are amended by striking ‘‘1204(c)(3)’’ and 
inserting ‘‘1204(c)’’: 
(A) Section 808(b)(3) of the Community Re-
investment Act of 1977 (12 U.S.C. 2907(b)(3)).
1743 
(B) Section 40(g)(1)(B) of the Federal De-
posit Insurance Act (12 U.S.C. 1831q(g)(1)(B)). 
(C) Section 704B(h)(4) of the Equal Credit 
Opportunity Act (15 U.S.C. 1691c–2(h)(4)). 
(g) DIVERSITY REPORT AND BEST PRACTICES.— 
(1) ANNUAL
REPORT.—Each covered regulator 
shall submit to Congress an annual report on diver-
sity including the following: 
(A) Data, based on voluntary self-identifica-
tion, on the racial, ethnic, and gender composi-
tion of the examiners of each covered regulator, 
disaggregated by length of time served as an ex-
aminer. 
(B) The status of any examiners of covered 
regulators, based on voluntary self-identification, 
as a veteran. 
(C) Whether any covered regulator, as of the 
date on which the report required under this sec-
tion is submitted, has adopted a policy, plan, or 
strategy to promote racial, ethnic, and gender di-
versity among examiners of the covered regu-
lator. 
(D) Whether any special training is devel-
oped and provided for examiners related specifi-
cally to working with depository institutions and
1744 
credit unions that serve communities that are 
predominantly minorities, low income, or rural, 
and the key focus of such training. 
(2) BEST PRACTICES.—Each Office of Minority 
and Women Inclusion of a covered regulator shall de-
velop, provide to the head of the covered regulator, 
and make publicly available best practices— 
(A) for increasing the diversity of can-
didates applying for examiner positions, includ-
ing through outreach efforts to recruit diverse 
candidate to apply for entry-level examiner posi-
tions; and 
(B) for retaining and providing fair consid-
eration for promotions within the examiner staff 
for purposes of achieving diversity among exam-
iners. 
(3) COVERED
REGULATOR
DEFINED.—In this 
subsection, the term ‘‘covered regulator’’ means the 
Comptroller of the Currency, the Board of Governors 
of the Federal Reserve System, the Federal Deposit 
Insurance Corporation, and the National Credit 
Union Administration. 
(h) INVESTMENTS IN MINORITY DEPOSITORY INSTITU-
TIONS AND IMPACT BANKS.—