munities participating in the demonstration pro-
gram.
SEC. 3. GRANTS FOR ECONOMIC DEVELOPMENT LOAN AS-
SISTANCE.
(a) AUTHORITY.—Under the demonstration program
under this Act, the Secretary may make grants to any
community development corporation sponsored by a bank
or thrift institution, by a nonbank economic development
corporation, or by residents of an enterprise community
selected under section 2(b).
(b) USE.—Each community development corporation
receiving a grant under the demonstration program under
this Act shall use the grant amounts to assist businesses
and nonprofit organizations by reducing interest rates on
loans for economic development activities carried out in
an enterprise community selected under section 2(b).
(c) OTHER REQUIREMENTS.—The Secretary shall re-
quire each community development corporation receiving
a grant under the demonstration program under this Act
to—
(1) use the grant amounts to reduce the inter-
est rate on a loan described in subsection (b) by an
amount not to exceed 60 percent of the market rate
of interest on such loan; and
(2) take any actions necessary to inform busi-
nesses and nonprofit organizations of the availability
of such loans, including holding informational meet-
ings, making public announcements, and placing no-
tices in newspapers and other publications.
SEC. 4. MONITORING.
The Secretary shall monitor the use of grants made
under this Act and the costs of administering such grants.
SEC. 5. REPORTS AND STUDY.
(a) ANNUAL REPORT.—The Secretary shall submit
to the Congress, not later than 1 year after the date that
amounts to carry out this Act are first made available
under appropriations Acts and for each year thereafter in
which amounts are available to carry out the demonstra-
tion program, a report containing an evaluation of the
effectiveness of grants made under the demonstration
program.
(b) STUDY AND REPORT ON EXPANDED PROGRAM.—
(1) STUDY.—The Secretary shall conduct a
study regarding the effects and costs of carrying out
a long-term and expanded program of making grants
for the purposes under this Act. The study shall de-
termine the need for such grants and the amount of
funds necessary to carry out an effective program of
national scope.
(2) REPORT.—The Secretary shall submit to
the Congress, not later than September 30, 1998, a
report regarding the results of the study under para-
graph (1) and any recommendations for carrying out
a program as described in paragraph (1).
SEC. 6. DEFINITIONS.
For the purposes of this Act:
(1) ECONOMIC
DEVELOPMENT
ACTIVITIES.—
The term ‘‘economic development activities’’ means
the construction and rehabilitation of housing, down-
town and neighborhood commercial revitalization, in-
dustrial development and redevelopment, small and
minority business assistance, neighborhood market-
ing, training, and technical assistance, research and
planning for nonprofit development groups, and
other activities which create permanent private sec-
tor jobs.
(2) ENTERPRISE COMMUNITY.—The term ‘‘en-
terprise community’’ means an area that is des-
ignated as an enterprise community under section
1391 of the Internal Revenue Code of 1986.
(3) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Housing and Urban Development.
SEC. 7. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated to carry out
this Act in fiscal years 1996, 1997, and 1998 a total of
$100,000,000.
SEC. 8. REGULATIONS.
The Secretary may issue any regulations necessary
to carry out this Act.
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