Title: Economic Empowerment for Underserved Communities Act
Policy area: Commerce

Summary:
Economic Empowerment for Underserved Communities Act
This bill provides economic assistance to small businesses impacted by COVID-19 (i.e., coronavirus disease 2019), including through (1) the designation of specified amounts for the Community Development Financial Institutions Fund, (2) the establishment of a Small Business and Domestic Production Recovery Investment Facility, and (3) the extension of the requirement that the Small Business Administration subsidize certain loan payments.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 5011 Introduced in Senate (IS)]

<DOC>






116th CONGRESS
  2d Session
                                S. 5011

To codify the Minority Business Development Agency of the Department of 
                   Commerce, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           December 11, 2020

 Mrs. Loeffler (for herself, Mr. Crapo, and Mr. Rubio) introduced the 
 following bill; which was read twice and referred to the Committee on 
                                Finance

_______________________________________________________________________

                                 A BILL


 
To codify the Minority Business Development Agency of the Department of 
                   Commerce, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Economic Empowerment for Underserved 
Communities Act''.

SEC. 2. PURPOSES.

    The purposes of this Act, and the amendments made by this Act, are 
to--
            (1) ensure that underserved communities have access to 
        capital to promote economic revitalization;
            (2) respond to the unprecedented loss of jobs and minority-
        owned businesses as a result of the COVID-19 pandemic; and
            (3) further encourage long-term investments in low-income 
        and minority communities.

SEC. 3. SUPPORTING THE CDFI FUND.

    (a) Appropriations.--Of the amounts made available to the Secretary 
of the Treasury under section 4027 of the CARES Act (15 U.S.C. 9061), 
$7,000,000,000 shall be made available to the Fund to carry out this 
section.
    (b) Set Asides.--Of the amounts made available under subsection 
(a), the following amounts shall be set aside:
            (1) Up to $1,000,000,000, to remain available until 
        September 30, 2022, to support, prepare for, and respond to the 
        economic impact of the coronavirus, provided that the Fund 
        shall--
                    (A) provide grants funded under this paragraph 
                using a formula that takes into account criteria such 
                as certification status, financial and compliance 
                performance, portfolio and balance sheet strength, a 
                diversity of CDFI business model types, and program 
                capacity, of which not less than $30,000,000 may be for 
                grants to benefit Native American, Native Hawaiian, and 
                Alaska Native communities; and
                    (B) make funds available under this paragraph not 
                later than 60 days after the date of enactment of this 
                Act.
            (2) Up to $4,000,000,000, to remain available until 
        September 30, 2025, to provide grants to CDFIs--
                    (A) to expand lending or investment activity in 
                low- or moderate-income minority communities and to 
                minorities that have significant unmet capital or 
                financial services needs; and
                    (B) using a formula that takes into account 
                criteria such as certification status, financial and 
                compliance performance, portfolio and balance sheet 
                strength, a diversity of CDFI business model types, and 
                program capacity, as well as experience making loans 
                and investments to those areas and populations 
                identified in this paragraph.
            (3) Up to $500,000,000, to remain available until expended, 
        for technical assistance, technology, and training under 
        sections 108(a)(1)(B) and 109, respectively, of the Community 
        Development Banking and Financial Institutions Act of 1994 (12 
        U.S.C. 4707(a)(1)(B), 4708), with a preference for minority-led 
        and minority-owned CDFIs that primarily serve low- and 
        moderate-income communities.
            (4) Up to $500,000,000, to remain available until expended, 
        to provide grants to recipients that are minority-led and 
        minority-owned CDFIs.
    (c) Administrative Expenses.--Funds made available under this 
section may be used for administrative expenses, including 
administration of Fund programs and the New Markets Tax Credit Program 
under section 45D of the Internal Revenue Code of 1986.
    (d) Emergency Designation.--
            (1) In general.--The amounts provided under this section 
        are designated as an emergency requirement pursuant to section 
        4(g) of the Statutory Pay-As-You-Go Act of 2010 (2 U.S.C. 
        933(g)).
            (2) Designation in senate.--In the Senate, this section is 
        designated as an emergency requirement pursuant to section 
        4112(a) of H. Con. Res. 71 (115th Congress), the concurrent 
        resolution on the budget for fiscal year 2018.
    (e) Definitions.--In this section:
            (1) CDFI.--The term ``CDFI'' means a community development 
        financial institution, as defined in section 103 of the 
        Community Development Banking and Financial Institutions Act of 
        1994 (12 U.S.C. 4702).
            (2) Fund.--The term ``Fund'' means the Community 
        Development Financial Institutions Fund established under 
        section 104(a) of the Community Development Banking and 
        Financial Institutions Act of 1994 (12 U.S.C. 4703(a)).
            (3) Minority.--The term ``minority'' means any Black 
        American, Native American, Hispanic American, or Asian 
        American.

SEC. 4. PERMANENT EXTENSION OF NEW MARKETS TAX CREDIT.

    (a) Extension.--
            (1) In general.--Subparagraph (H) of section 45D(f)(1) of 
        the Internal Revenue Code of 1986 is amended by inserting ``and 
        each calendar year thereafter'' after ``for 2020''.
            (2) Conforming amendment.--Section 45D(f)(3) of such Code 
        is amended by striking the last sentence.
    (b) Inflation Adjustment.--Subsection (f) of section 45D of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new paragraph:
            ``(4) Inflation adjustment.--
                    ``(A) In general.--In the case of any calendar year 
                beginning after 2020, the dollar amount in paragraph 
                (1)(G) shall be increased by an amount equal to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year, determined by substituting 
                        `calendar year 2019' for `calendar year 2016' 
                        in subparagraph (A)(ii) thereof.
                    ``(B) Rounding rule.--Any increase under 
                subparagraph (A) which is not a multiple of $1,000,000 
                shall be rounded to the nearest multiple of 
                $1,000,000.''.
    (c) Alternative Minimum Tax Relief.--Subparagraph (B) of section 
38(c)(4) of the Internal Revenue Code of 1986 is amended--
            (1) by redesignating clauses (vii) through (xii) as clauses 
        (viii) through (xiii), respectively, and
            (2) by inserting after clause (vi) the following new 
        clause:
                            ``(vii) the credit determined under section 
                        45D, but only with respect to credits 
                        determined with respect to qualified equity 
                        investments (as defined in section 45D(b)) 
                        initially made after December 31, 2019,''.
    (d) Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to taxable years 
        beginning after December 31, 2019.
            (2) Alternative minimum tax relief.--The amendments made by 
        subsection (c) shall apply to credits determined with respect 
        to qualified equity investments (as defined in section 45D(b) 
        of the Internal Revenue Code of 1986) initially made after 
        December 31, 2020.

SEC. 5. OPPORTUNITY ZONE PROGRAM REPRESENTATIVES.

    Section 4 of the Small Business Act (15 U.S.C. 633) is amended by 
adding at the end the following:
    ``(i) Opportunity Zone Program Representatives.--
            ``(1) In general.--The Administrator, through each district 
        office of the Administration, small business development 
        center, women's business center described in section 29, 
        chapter of the Service Corps of Retired Executives authorized 
        by section 8(b)(1), and Veteran Business Outreach Center 
        described in section 32, shall train and educate field 
        representatives on investments in areas that have been 
        designated as qualified opportunity zones under section 1400Z-1 
        of the Internal Revenue Code of 1986.
            ``(2) Duties.--A field representative trained under 
        paragraph (1) shall--
                    ``(A) serve as a point of contact for questions and 
                resources on the investments described in paragraph (1) 
                for the area served by the district office, small 
                business development center, women's business center, 
                chapter of the Service Corps of Retired Executives, and 
                Veteran Business Outreach Center, as applicable;
                    ``(B) educate elected leaders within such area on 
                those investments; and
                    ``(C) hold an annual seminar in each State to 
                educate managers of qualified opportunity funds (as 
                defined in section 1400Z-2(d) of the Internal Revenue 
                Code of 1986), qualified opportunity zone businesses 
                (as defined in such section), State and local 
                government officials, accountants, lawyers, and other 
                interested persons on how to benefit from such 
                investments.
            ``(3) Report.--
                    ``(A) In general.--Not later than 1 year after the 
                date of enactment of this subsection, and annually 
                thereafter through 2026, the director of each regional 
                office of the Administration shall submit to the 
                Administrator a report on the success of the efforts of 
                the field representatives trained under paragraph (1), 
                including any problems faced by, and best practices of, 
                the field representatives.
                    ``(B) Submission by administrator.--The 
                Administrator shall submit each report received under 
                subparagraph (A) to the Committee on Small Business and 
                Entrepreneurship of the Senate and the Committee on 
                Small Business of the House of Representatives.''.

SEC. 6. SMALL BUSINESS INVESTMENT COMPANY PROGRAM.

    (a) In General.--Part A of title III of the Small Business 
Investment Act of 1958 (15 U.S.C. 681 et seq.) is amended--
            (1) in section 302(a) (15 U.S.C. 682(a))--
                    (A) in paragraph (1)--
                            (i) in subparagraph (A), by striking ``or'' 
                        at the end;
                            (ii) in subparagraph (B), by striking the 
                        period at the end and inserting ``; or''; and
                            (iii) by adding at the end the following:
                    ``(C) $20,000,000, adjusted every 5 years for 
                inflation, with respect to each licensee authorized or 
                seeking authority to sell bonds to Administration as a 
                participating investment company under section 321.''; 
                and
            (2) by adding at the end the following:

``SEC. 321. SMALL BUSINESS AND DOMESTIC PRODUCTION RECOVERY INVESTMENT 
              FACILITY.

    ``(a) Definitions.--In this section:
            ``(1) Covered population census tract.--The term `covered 
        population census tract' means a population census tract for 
        which--
                    ``(A) in the case of a tract that is not located 
                within a metropolitan area, the median income does not 
                exceed 80 percent of the statewide (or, with respect to 
                a possession or territory of the United States, the 
                possession- or territory-wide) median family income; or
                    ``(B) in the case of a tract that is located within 
                a metropolitan area, the median family income does not 
                exceed 80 percent of the greater of the statewide (or, 
                with respect to a possession or territory of the United 
                States, the possession- or territory-wide) median 
                family income and the metropolitan area median family 
                income.
            ``(2) Eligible small business concern.--The term `eligible 
        small business concern'--
                    ``(A) means a small business concern that--
                            ``(i)(I) except as provided in subclauses 
                        (II), (III), and (IV), had gross receipts 
                        during the first or second quarter in 2020 that 
                        are not less than 50 percent less than the 
                        gross receipts of the entity during the same 
                        quarter in 2019;
                            ``(II) if the entity was not in business 
                        during the first or second quarter of 2019, but 
                        was in business during the third and fourth 
                        quarter of 2019, had gross receipts during the 
                        first or second quarter of 2020 that are less 
                        than 50 percent of the amount of the gross 
                        receipts of the entity during the third or 
                        fourth quarter of 2019;
                            ``(III) if the entity was not in business 
                        during the first, second, or third quarter of 
                        2019, but was in business during the fourth 
                        quarter of 2019, had gross receipts during the 
                        first or second quarter of 2020 that are less 
                        than 50 percent of the amount of the gross 
                        receipts of the entity during the fourth 
                        quarter of 2019; or
                            ``(IV) if the entity was not in business 
                        during 2019, but was in operation on February 
                        15, 2020, had gross receipts during the second 
                        quarter of 2020 that are less than 50 percent 
                        of the amount of the gross receipts of the 
                        entity during the first quarter of 2020;
                            ``(ii) is a manufacturing business that is 
                        assigned a North American Industry 
                        Classification System code beginning with 31, 
                        32, or 33 at the time at which the small 
                        business concern receives an investment from a 
                        participating investment company under the 
                        facility; or
                            ``(iii) is located in a small business low-
                        income census tract; and
                    ``(B) does not include--
                            ``(i) an issuer, the securities of which 
                        are listed on an exchange registered a national 
                        securities exchange under section 6 of the 
                        Securities Exchange Act of 1934 (15 U.S.C. 
                        78f);
                            ``(ii) any entity that--
                                    ``(I) is a type of business concern 
                                described in paragraph (b), (c), (d), 
                                (e), (f), (h), (l), (m), (p), (q), (r), 
                                or (s) of section 120.110 of title 13, 
                                Code of Federal Regulations, or any 
                                successor regulation;
                                    ``(II) is a type of business 
                                concern described in section 120.110(g) 
                                of title 13, Code of Federal 
                                Regulations, or any successor 
                                regulation, except as otherwise 
                                provided in the interim final rule of 
                                the Administration entitled `Business 
                                Loan Program Temporary Changes; 
                                Paycheck Protection Program--Additional 
                                Eligibility Criteria and Requirements 
                                for Certain Pledges of Loans' (85 Fed. 
                                Reg. 21747 (April 20, 2020));
                                    ``(III) is a type of business 
                                concern described in section 120.110(i) 
                                of title 13, Code of Federal 
                                Regulations, or any successor 
                                regulation, except if--
                                            ``(aa) the business concern 
                                        is described in section 
                                        501(c)(6) of the Internal 
                                        Revenue Code and that is exempt 
                                        from taxation under section 
                                        501(a) of such Code (excluding 
                                        professional football leagues 
                                        and organizations with the 
                                        purpose of promoting or 
                                        participating in a political 
                                        campaign or other activity);
                                            ``(bb) the business concern 
                                        does not receive more than 10 
                                        percent of its receipts from 
                                        lobbying activities;
                                            ``(cc) the lobbying 
                                        activities of the business 
                                        concern do not comprise more 
                                        than 10 percent of the total 
                                        activities of the business 
                                        concern; and
                                            ``(dd) the business concern 
                                        employs not more than 300 
                                        employees;
                                    ``(IV) is a type of business 
                                concern described in section 120.110(j) 
                                of title 13, Code of Federal 
                                Regulations, or any successor 
                                regulation, except as otherwise 
                                provided in the interim final rules of 
                                the Administration entitled `Business 
                                Loan Program Temporary Changes; 
                                Paycheck Protection Program--
                                Eligibility of Certain Electric 
                                Cooperatives' (85 Fed. Reg. 29847 (May 
                                19, 2020)) and `Business Loan Program 
                                Temporary Changes; Paycheck Protection 
                                Program--Eligibility of Certain 
                                Telephone Cooperatives' (85 Fed. Reg. 
                                35550 (June 11, 2020)) or any other 
                                guidance or rule issued or that may be 
                                issued by the Administrator;
                                    ``(V) is a type of business concern 
                                described in section 120.110(n) of 
                                title 13, Code of Federal Regulations, 
                                or any successor regulation, except as 
                                otherwise provided in the interim final 
                                rule of the Administration entitled 
                                `Business Loan Program Temporary 
                                Changes; Paycheck Protection Program--
                                Additional Eligibility Revisions to 
                                First Interim Final Rule' (85 Fed. Reg. 
                                38301 (June 26, 2020)) or any other 
                                guidance or rule issued or that may be 
                                issued by the Administrator;
                                    ``(VI) is a type of business 
                                concern described in section 120.110(o) 
                                of title 13, Code of Federal 
                                Regulations, or any successor 
                                regulation, except as otherwise 
                                provided in any guidance or rule issued 
                                or that may be issued by the 
                                Administrator;
                                    ``(VII) is an entity that is 
                                organized for research or for engaging 
                                in advocacy in areas such as public 
                                policy or political strategy or 
                                otherwise describes itself as a think 
                                tank in any public documents;
                                    ``(VIII) is an entity that would be 
                                described in the provisions listed in 
                                subclauses (I) through (VII) if the 
                                entity were a business concern; or
                                    ``(IX) is assigned, or was approved 
                                for a loan under section 7(a)(36) of 
                                the Small Business Act (15 U.S.C. 
                                636(a)(36)) with, a North American 
                                Industry Classification System code 
                                beginning with 52;
                            ``(iii) any business concern or entity 
                        primarily engaged in political or lobbying 
                        activities, including any entity that is 
                        organized for research or for engaging in 
                        advocacy in areas such as public policy or 
                        political strategy or otherwise describes 
                        itself as a think tank in any public documents; 
                        or
                            ``(iv) any business concern or entity--
                                    ``(I) for which an entity created 
                                in or organized under the laws of the 
                                People's Republic of China or the 
                                Special Administrative Region of Hong 
                                Kong, or that has significant 
                                operations in the People's Republic of 
                                China or the Special Administrative 
                                Region of Hong Kong, owns or holds, 
                                directly or indirectly, not less than 
                                20 percent of the economic interest of 
                                the business concern or entity, 
                                including as equity shares or a capital 
                                or profit interest in a limited 
                                liability company or partnership; or
                                    ``(II) that retains, as a member of 
                                the board of directors of the business 
                                concern, a person who is a resident of 
                                the People's Republic of China.
            ``(3) Facility.--The term `facility' means the facility 
        established under subsection (b).
            ``(4) Fund.--The term `Fund' means the fund established 
        under subsection (h).
            ``(5) Participating investment company.--The term 
        `participating investment company' means a small business 
        investment company approved under subsection (d) to participate 
        in the facility.
            ``(6) Protege investment company.--The term `protege 
        investment company' means a small business investment company 
        that--
                    ``(A) is majority managed by new, inexperienced, or 
                otherwise underrepresented fund managers; and
                    ``(B) elects and is selected by the Administration 
                to participate in the pathway-protege program under 
                subsection (g).
            ``(7) Small business concern.--The term `small business 
        concern' has the meaning given the term in section 3(a) of the 
        Small Business Act (15 U.S.C. 632(a)).
            ``(8) Small business low-income census tract.--The term 
        `small business low-income census tract'--
                    ``(A) means--
                            ``(i) a covered population census tract for 
                        which the poverty rate is not less than 20 
                        percent; or
                            ``(ii) an area--
                                    ``(I) that is not tracted as a 
                                population census tract;
                                    ``(II) for which the poverty rate 
                                in the equivalent county division (as 
                                defined by the Bureau of the Census) is 
                                not less than 20 percent; and
                                    ``(III) for which the median income 
                                in the equivalent county division (as 
                                defined by the Bureau of the Census) 
                                does not exceed 80 percent of the 
                                statewide (or, with respect to a 
                                possession or territory of the United 
                                States, the possession- or territory-
                                wide) median income; and
                    ``(B) does not include any area or population 
                census tract with a median family income that is not 
                less than 120 percent of the median family income in 
                the United States, according to the most recent 
                American Communities Survey data from the Bureau of the 
                Census.
    ``(b) Establishment.--
            ``(1) Facility.--The Administrator shall establish and 
        carry out a facility to improve the recovery of eligible small 
        business concerns from the COVID-19 pandemic, increase 
        resiliency in the manufacturing supply chain of eligible small 
        business concerns, and increase the economic development of 
        small business low-income census tracts by providing financial 
        assistance to participating investment companies that 
        facilitate equity financings to eligible small business 
        concerns in accordance with this section.
            ``(2) Administration of facility.--The facility shall be 
        administered by the Administrator acting through the Associate 
        Administrator described in section 201.
    ``(c) Applications.--
            ``(1) In general.--Any small business investment company 
        may submit to the Administrator an application to participate 
        in the facility.
            ``(2) Requirements for application.--An application to 
        participate in the facility shall include the following:
                    ``(A) A business plan describing how the applicant 
                intends to make successful equity investments in 
                eligible small business concerns.
                    ``(B) Information regarding the relevant investment 
                qualifications and backgrounds of the individuals 
                responsible for the management of the applicant.
                    ``(C) A description of the extent to which the 
                applicant meets the selection criteria under subsection 
                (d)(2).
            ``(3) Exceptions to application for new licensees.--Not 
        later than 90 days after the date of enactment of this section, 
        the Administrator shall reduce requirements for applicants 
        applying to operate as a participating investment company under 
        this section in order to encourage the participation of new 
        small business investment companies in the facility under this 
        section, which may include the requirements established under 
        part 107 of title 13, Code of Federal Regulations, or any 
        successor regulations, relating to--
                    ``(A) the approval of initial management expenses;
                    ``(B) the management ownership diversity 
                requirement;
                    ``(C) the disclosure of general compensatory 
                practices and fee structures; or
                    ``(D) any other requirement that the Administrator 
                determines to be an obstacle to achieving the purposes 
                described in this paragraph.
    ``(d) Selection of Participating Investment Companies.--
            ``(1) Determination.--
                    ``(A) In general.--Except as provided in paragraph 
                (3), not later than 60 days after the date on which the 
                Administrator receives an application under subsection 
                (c), the Administrator shall--
                            ``(i) make a final determination to approve 
                        or disapprove such applicant to participate in 
                        the facility; and
                            ``(ii) transmit the determination to the 
                        applicant in writing.
                    ``(B) Commitment amount.--Except as provided in 
                paragraph (3), at the time of approval of an applicant, 
                the Administrator shall make a determination of the 
                amount of the commitment that may be awarded to the 
                applicant under this section.
            ``(2) Selection criteria.--In making a determination under 
        paragraph (1), the Administrator shall consider--
                    ``(A) the probability that the investment strategy 
                of the applicant will successfully repay any financial 
                assistance provided by the Administration, including 
                the probability of a return significantly in excess 
                thereof;
                    ``(B) the probability that the investments made by 
                the applicant will--
                            ``(i) provide capital to eligible small 
                        business concerns; or
                            ``(ii) create or preserve jobs in the 
                        United States;
                    ``(C) the probability that the applicant will meet 
                the objectives in the business plan of the applicant, 
                including the financial goals, and, if applicable, the 
                pathway-protege program in accordance with subsection 
                (g); and
                    ``(D) the probability that the applicant will 
                assist eligible small business concerns in achieving 
                profitability.
            ``(3) Approval of participating investment companies.--
                    ``(A) Provisional approval.--
                            ``(i) In general.--Notwithstanding 
                        paragraph (1), with respect to an application 
                        submitted by an applicant to operate as a 
                        participating investment company under this 
                        section, the Administrator may provide 
                        provisional approval for the applicant in lieu 
                        of a final determination of approval and 
                        determination of the amount of the commitment 
                        under that paragraph.
                            ``(ii) Purpose.--The purpose of a 
                        provisional approval under clause (i) is to--
                                    ``(I) encourage applications from 
                                investment companies with an investment 
                                mandate from the committed private 
                                market capital of the investment 
                                company that does not conform to the 
                                requirements described in this section 
                                at the time of application;
                                    ``(II) allow the applicant to more 
                                effectively raise capital commitments 
                                in the private markets by referencing 
                                the intent of the Administrator to 
                                award the applicant a commitment; and
                                    ``(III) allow the applicant to more 
                                precisely request the desired amount of 
                                commitment pending the securing of 
                                capital from private market investors.
                            ``(iii) Limit on period of the time.--The 
                        period between a provisional approval under 
                        clause (i) and the final determination of 
                        approval under paragraph (1) shall not exceed 
                        12 months.
    ``(e) Commitments and SBIC Bonds.--
            ``(1) In general.--The Administrator may, out of amounts 
        available in the Fund, purchase or commit to purchase from a 
        participating investment company 1 or more accruing bonds that 
        include equity features as described in this subsection.
            ``(2) Bond terms.--A bond purchased by the Administrator 
        from a participating investment company under this subsection 
        shall have the following terms and conditions:
                    ``(A) Term and interest.--
                            ``(i) In general.--The bond shall be issued 
                        for a term of not less than 15 years and shall 
                        bear interest at a rate determined by the 
                        Administrator of not more than 2 percent.
                            ``(ii) Accrual of interest.--Interest on 
                        the bond shall accrue and shall be payable in 
                        accordance with subparagraph (D).
                            ``(iii) Prepayment.--The bond shall be 
                        prepayable without penalty after the end of the 
                        1-year period beginning on the date on which 
                        the bond was purchased.
                    ``(B) Profits.--
                            ``(i) In general.--The Administration shall 
                        be entitled to receive a share of the profits 
                        net of any profit sharing performance 
                        compensation of the participating investment 
                        company equal to the quotient obtained by 
                        dividing--
                                    ``(I) one-third of the commitment 
                                that the participating investment 
                                company is approved for under 
                                subsection (d); by
                                    ``(II) the commitment approved 
                                under subsection (d) plus the 
                                regulatory capital of the participating 
                                investment company at the time of 
                                approval under that subsection.
                            ``(ii) Determination of percentage.--The 
                        share to which the Administration is entitled 
                        under clause (i)--
                                    ``(I) shall be determined at the 
                                time of approval under subsection (d); 
                                and
                                    ``(II) without the approval of the 
                                Administration, shall not be revised, 
                                including to reflect subsequent 
                                distributions of profits, returns of 
                                capital, or repayments of bonds, or 
                                otherwise.
                    ``(C) Profit sharing performance compensation.--
                            ``(i) Receipt by administration.--The 
                        Administration shall receive a share of profits 
                        of not more than 2 percent, which shall be 
                        deposited into the Fund and be available to 
                        make commitments under this subsection.
                            ``(ii) Receipt by managers.--The managers 
                        of the participating investment company may 
                        receive a maximum profit sharing performance 
                        compensation of 25 percent minus the share of 
                        profits paid to the Administration under clause 
                        (i).
                    ``(D) Prohibition on distributions.--No 
                distributions on capital, including profit 
                distributions, shall be made by the participating 
                investment company to the investors or managers of the 
                participating investment company until the 
                Administration has received payment of all accrued 
                interest on the bond committed under this section.
                    ``(E) Repayment of principal.--Except as described 
                in subparagraph (F), repayments of principal of the 
                bond of a participating investment company shall be--
                            ``(i) made at the same time as returns of 
                        private capital; and
                            ``(ii) in amounts equal to the pro rata 
                        share of the Administration of the total amount 
                        being repaid or returned at such time.
                    ``(F) Liquidation or default.--Upon any liquidation 
                event or default, as defined by the Administration, any 
                unpaid principal or accrued interest on the bond 
                shall--
                            ``(i) have a priority over all equity of 
                        the participating investment company; and
                            ``(ii) be paid before any return of equity 
                        or any other distributions to the investors or 
                        managers of the participating investment 
                        company.
            ``(3) Amount of commitments and purchases.--
                    ``(A) Maximum amount.--The maximum amount of 
                outstanding bonds and commitments to purchase bonds for 
                any participating investment company under the facility 
                shall be the lesser of--
                            ``(i) twice the amount of the regulatory 
                        capital of the participating investment 
                        company; or
                            ``(ii) $200,000,000.
            ``(4) Commitment process.--Commitments by the 
        Administration to purchase bonds under the facility shall 
        remain available to be sold by a participating investment 
        company until the end of the fourth fiscal year following the 
        year in which the commitment is made, subject to review and 
        approval by the Administration based on regulatory compliance, 
        financial status, change in management, deviation from business 
        plan, and such other limitations as may be determined by the 
        Administration by regulation or otherwise.
            ``(5) Commitment conditions.--
                    ``(A) In general.--As a condition of receiving a 
                commitment under the facility, not less than 50 percent 
                of amounts invested by the participating investment 
                company shall be invested in eligible small business 
                concerns.
                    ``(B) Examinations.--In addition to the matters set 
                forth in section 310(c), the Administration shall 
                examine each participating investment company in such 
                detail so as to determine whether the participating 
                investment company has complied with the requirements 
                under this subsection.
    ``(f) Distributions and Fees.--
            ``(1) Distribution requirements.--
                    ``(A) Distributions.--As a condition of receiving a 
                commitment under the facility, a participating 
                investment company shall make all distributions to the 
                Administrator in the same form and in a manner as are 
                made to investors, or otherwise at a time and in a 
                manner consistent with regulations or policies of the 
                Administration.
                    ``(B) Allocations.--A participating investment 
                company shall make allocations of income, gain, loss, 
                deduction, and credit to the Administrator with respect 
                to any outstanding bonds as if the Administrator were 
                an investor.
            ``(2) Fees.--The Administrator may not charge fees for 
        participating investment companies other than examination fees 
        that are consistent with the license of the participating 
        investment company.
            ``(3) Bifurcation.--Losses on bonds issued by participating 
        investment companies shall not be offset by fees or any other 
        charges on debenture small business investment companies.
    ``(g) Protege Program.--The Administrator shall establish a 
pathway-protege program in which a protege investment company may 
receive technical assistance and program support from a participating 
investment company on a voluntary basis and without penalty for non-
participation.
    ``(h) Loss Limiting Fund.--
            ``(1) In general.--There is established in the Treasury a 
        fund for making commitments and purchasing bonds with equity 
        features under the facility and receiving capital returned by 
        participating investment companies.
            ``(2) Use of funds.--Amounts appropriated to the Fund or 
        deposited in the Fund under paragraph (3) shall be available to 
        the Administrator, without further appropriation, for making 
        commitments and purchasing bonds under the facility and 
        expenses and payments, excluding administrative expenses, 
        relating to the operations of the Administrator under the 
        facility.
            ``(3) Depositing of amounts.--
                    ``(A) In general.--All amounts received by the 
                Administrator from a participating investment company 
                relating to the facility, including any moneys, 
                property, or assets derived by the Administrator from 
                operations in connection with the facility, shall be 
                deposited in the Fund.
                    ``(B) Period of availability.--Amounts deposited 
                under subparagraph (A) shall remain available until 
                expended.
    ``(i) Application of Other Sections.--To the extent not 
inconsistent with requirements under this section, the Administrator 
may apply sections 309, 311, 312, 313, and 314 to activities under this 
section and an officer, director, employee, agent, or other participant 
in a participating investment company shall be subject to the 
requirements under such sections.
    ``(j) Authorization of Appropriations.--There is authorized to be 
appropriated for the first fiscal year beginning after the date of 
enactment of this section $10,000,000,000 to carry out the facility. 
Amounts appropriated pursuant to this subsection shall remain available 
until the end of the second fiscal year beginning after the date of 
enactment of this section.''.
    (b) Approval of Bank-Owned, Non-Leveraged Applicants.--Section 
301(c)(2) of the Small Business Investment Act of 1958 (15 U.S.C. 
681(c)(2)) is amended--
            (1) in subparagraph (B), in the matter preceding clause 
        (i), by striking ``Within'' and inserting ``Except as provided 
        in subparagraph (C), within''; and
            (2) by adding at the end the following:
                    ``(C) Exception for bank-owned, non-leveraged 
                applicants.--Not later than 45 days after the date on 
                which the Administrator receives a completed 
                application submitted by a bank-owned, non-leveraged 
                applicant in accordance with this subsection, and in 
                accordance with such requirements as the Administrator 
                may prescribe by regulation, the Administrator shall--
                            ``(i) review the application in its 
                        entirety; and
                            ``(ii)(I) approve the application and issue 
                        a license for such operation to the applicant 
                        if the requirements of this section are 
                        satisfied; or
                            ``(II) disapprove the application and 
                        notify the applicant in writing of the 
                        disapproval.''.
    (c) Electronic Submissions.--Part A of title III of the Small 
Business Investment Act of 1958 (15 U.S.C. 681 et seq.), as amended by 
subsection (a) of this section, is amended by adding at the end the 
following:

``SEC. 322. ELECTRONIC SUBMISSIONS.

    ``The Administration shall permit any document submitted under this 
title, or pursuant to a regulation carrying out this title, to be 
submitted electronically, including by permitting an electronic 
signature for any signature that is required on such a document.''.

SEC. 7. MINORITY BUSINESS DEVELOPMENT AGENCY.

    (a) In General.--There is within the Department of Commerce the 
Minority Business Development Agency (referred to in this section as 
the ``Agency'').
    (b) Assistant Secretary.--
            (1) In general.--The Agency shall be headed by an Assistant 
        Secretary of Commerce for Minority Business Development, who 
        shall be appointed by the President.
            (2) Compensation.--The Assistant Secretary of Commerce for 
        Minority Business Development shall be compensated at an annual 
        rate of basic pay prescribed for level IV of the Executive 
        Schedule under section 5315 of title 5, United States Code.
    (c) Duties.--In addition to the functions, duties, and programs 
carried out by the Agency, as of the day before the date of enactment 
of this Act (including the Business Center program of the Agency), the 
Agency shall--
            (1) promote and administer programs in the public and 
        private sectors that relate to the development of minority 
        business enterprises; and
            (2) carry out programs that increase access to capital and 
        technology for, and provide assistance with respect to the 
        management of, minority business enterprises.
    (d) Office of African American Affairs.--
            (1) Establishment.--There is established within the Agency 
        the Office of African American Affairs.
            (2) Duties.--The Office of African American Affairs 
        established under paragraph (1) shall carry out such functions, 
        duties, and programs as the Assistant Secretary of Commerce for 
        Minority Business Development determines to be appropriate.
    (e) Technical and Conforming Amendment.--Section 5315 of title 5, 
United States Code, is amended, in the item relating to Assistant 
Secretaries of Commerce, by striking ``(11)'' and inserting ``(12)''.

SEC. 8. HRSA GRANT PROGRAM CONSIDERATION.

    In awarding grants for which faith-based entities are eligible, the 
Administrator of the Health Resources and Services Administration shall 
give special consideration to any application from an eligible entity 
that is located in a qualified opportunity zone (as defined in section 
1400Z-1(a) of the Internal Revenue Code of 1986) or that serves a 
community located in such a qualified opportunity zone.

SEC. 9. EXTENSION OF SUBSIDY FOR CERTAIN LOAN PAYMENTS.

    (a) In General.--Section 1112(c)(1) of the CARES Act (15 U.S.C. 
9011(c)(1)) is amended--
            (1) in subparagraph (A), by striking ``6-month'' and 
        inserting ``12-month'';
            (2) in subparagraph (B), by striking ``6-month'' and 
        inserting ``12-month''; and
            (3) in subparagraph (C)--
                    (A) by striking ``6 months'' and inserting ``12 
                months''; and
                    (B) by striking ``6-month'' and inserting ``12-
                month''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect as if included in the enactment of section 1112 of the 
CARES Act (15 U.S.C. 9011).
                                 <all>