Title: To establish a payroll loan facility for small financial institutions affected by COVID-19, and for other purposes.
Policy area: Finance and Financial Sector

Summary:
This bill provides specified funds to the Department of the Treasury to establish a payroll loan facility that provides loans to small financial institutions. These loans must offer, to the maximum extent practicable, benefits and assistance similar to the Paycheck Protection Program created in response to the COVID-19 (i.e., coronavirus disease 2019) pandemic. Treasury must also establish a loan forgiveness program for these loans.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6817 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 6817

 To establish a payroll loan facility for small financial institutions 
             affected by COVID-19, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 12, 2020

 Mr. Green of Texas (for himself, Mr. Cleaver, and Mr. David Scott of 
   Georgia) introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
 To establish a payroll loan facility for small financial institutions 
             affected by COVID-19, 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. PAYROLL LOAN FACILITY FOR SMALL FINANCIAL INSTITUTIONS.

    (a) In General.--The Secretary of the Treasury shall establish a 
payroll loan facility which shall make loans to small financial 
institutions and which shall, to the maximum extent practicable, 
provide equivalent benefits and assistance that are provided by the 
Paycheck Protection Program.
    (b) Loan Forgiveness.--The Secretary of the Treasury shall 
establish a loan forgiveness program with respect to loans made under 
subsection (a), that shall, to the maximum extent practicable, have the 
same requirements as the loan forgiveness program established under 
section 1106 of the CARES Act (15 U.S.C. 9005).
    (c) Definitions.--In this section:
            (1) Community development financial institution.--The term 
        ``community development financial institution'' has the meaning 
        given that term under section 103 of the Riegle Community 
        Development and Regulatory Improvement Act of 1994 (12 U.S.C. 
        4702).
            (2) Small financial institution.--The term ``small 
        financial institution'' means an institution that--
                    (A) is a community development financial 
                institution, minority depository institution, or rural 
                bank; and
                    (B) has consolidated assets of less than 
                $700,000,000.
            (3) Insured credit union.--The term ``insured credit 
        union'' has the meaning given that term under section 101 of 
        the Federal Credit Union Act.
            (4) Insured depository institution.--The term ``insured 
        depository institution'' has the meaning given that term under 
        section 3 of the Federal Deposit Insurance Act.
            (5) Minority depository institution.--The term ``minority 
        depository institution'' has the meaning given that term under 
        section 308(b) of the Financial Institutions Reform, Recovery, 
        and Enforcement Act of 1989 (12 U.S.C. 1463 note).
            (6) Paycheck protection program.--The term ``Paycheck 
        Protection Program'' means section 7(a)(36) of the Small 
        Business Act (15 U.S.C. 636(a)(36)).
            (7) Rural.--With respect to an area, the term ``rural'' has 
        the meaning given that term under section 1026.35(b)(iv)(A) of 
        title 12, Code of Federal Regulations.
            (8) Rural bank.--The term ``rural bank'' means an insured 
        credit union or insured depository institution located in a 
        rural area.
    (d) Direct Appropriation for the Payroll Loan Facility.--There is 
appropriated, out of amounts in the Treasury not otherwise 
appropriated, $25,000,000,000 to the Secretary of the Treasury to carry 
out this subsection.
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