Title: To modify requirements relating to the participation of community development financial institutions in the paycheck protection program of the Small Business Administration, and for other purposes.
Policy area: Commerce

Summary:
This bill authorizes community development financial institutions to make loans under the Paycheck Protection Program established to support small businesses in response to COVID-19 (i.e., coronavirus disease 2019).
The bill also allows the Small Business Administration and the Department of the Treasury to revoke a lender's authority to make paycheck protection loans upon a joint determination that (1) the lender has had recent material operational shortcomings that warrant such a revocation, and (2) the revocation is consistent with the purpose of the program.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6888 Introduced in House (IH)]

<DOC>






116th CONGRESS
  2d Session
                                H. R. 6888

   To modify requirements relating to the participation of community 
 development financial institutions in the paycheck protection program 
     of the Small Business Administration, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 15, 2020

 Ms. Adams (for herself and Ms. Waters) introduced the following bill; 
         which was referred to the Committee on Small Business

_______________________________________________________________________

                                 A BILL


 
   To modify requirements relating to the participation of community 
 development financial institutions in the paycheck protection program 
     of the Small Business Administration, 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. PARTICIPATION OF COMMUNITY DEVELOPMENT FINANCIAL 
              INSTITUTIONS IN THE PAYCHECK PROTECTION PROGRAM.

    (a) Delegated Authority.--Section 7(a)(36)(F) of the Small Business 
Act (15 U.S.C. 636(a)(36)(F)) is amended--
            (1) in clause (ii)(I), by inserting ``and a community 
        development financial institution'' after ``under this 
        subsection'';
            (2) in clause (iii), by striking ``shall be extended to 
        additional lenders'' and inserting the following: ``shall be 
        extended--
                                    ``(I) to community development 
                                financial institutions; and
                                    ``(II) to additional lenders''; and
            (3) by adding at the end the following new clause:
                            ``(vi) Revocation of lenders.--The 
                        authority of a lender to make loans under this 
                        paragraph may be revoked upon a joint 
                        determination by the Administrator and the 
                        Secretary of the Treasury that--
                                    ``(I) such lender has had recent 
                                compliance shortcomings or other 
                                material operational shortcomings that 
                                warrant such a revocation; and
                                    ``(II) such a revocation is 
                                consistent with the purpose of this 
                                paragraph.''.
    (b) Existing Customers of Non-Bank CDFIs.--The Secretary of the 
Treasury and the Administrator of the Small Business Administration 
shall revise any rules or guidance issued to carry out section 7(a)(36) 
of the Small Business Act (15 U.S.C. 636(a)(36)) to specify that a non-
bank CDFI does not have to go through a reverification of information 
about an existing customer for purposes of the Bank Secrecy Act, if the 
non-bank CDFI has maintained an ongoing financial relationship with the 
customer that is well documented, and there is no need for further due 
diligence based on the non-bank CDFI's risk-based approach to Bank 
Secrecy Act compliance.
    (c) Definitions.--In this Act:
            (1) Bank secrecy act.--The term ``Bank Secrecy Act'' 
        means--
                    (A) section 21 of the Federal Deposit Insurance Act 
                (12 U.S.C. 1829b);
                    (B) chapter 2 of title I of Public Law 91-508 (12 
                U.S.C. 1951 et seq.); and
                    (C) subchapter II of chapter 53 of title 31, United 
                States Code;
            (2) 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).
            (3) Non-bank cdfi.--the term ``non-bank CDFI'' means a 
        community development financial institution that is not an 
        insured depository institution or insured credit union.
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