Title: Preserving Equity on Main Street Act of 2020
Policy area: Commerce

Summary:
Preserving Equity on Main Street Act of 2020
This bill authorizes the Department of the Treasury to directly purchase, or provide guarantees to enable the purchase of, preferred equity positions in commercial real estate companies that require capital to satisfy outstanding debt obligations. Treasury may take these actions in order to provide assistance related to losses incurred as a result of COVID-19 (i.e., coronavirus disease 2019).

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 4670 Introduced in Senate (IS)]

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116th CONGRESS
  2d Session
                                S. 4670

   To amend the CARES Act to permit the Secretary of the Treasury to 
 purchase, or to enable the purchase of, preferred equity positions in 
        commercial real estate entities, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 23, 2020

 Mr. Moran (for himself, Mrs. Shaheen, Mr. Rounds, Mr. Blunt, and Mr. 
    Tillis) introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
   To amend the CARES Act to permit the Secretary of the Treasury to 
 purchase, or to enable the purchase of, preferred equity positions in 
        commercial real estate entities, 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 ``Preserving Equity on Main Street Act 
of 2020''.

SEC. 2. COMMERCIAL REAL ESTATE PREFERRED EQUITY INVESTMENTS.

    Section 4003(b)(4) of the CARES Act (15 U.S.C. 9042(b)(4)) is 
amended--
            (1) by redesignating subparagraphs (A), (B), and (C) as 
        clauses (i), (ii), and (iii), respectively;
            (2) by inserting ``(A)'' after ``(4)'';
            (3) in subparagraph (A), as so redesignated--
                    (A) in clause (ii), as so redesignated, by striking 
                ``or'' at the end;
                    (B) in clause (iii), as so redesignated, by 
                striking the period at the end and inserting ``; or''; 
                and
                    (C) by adding at the end the following:
                    ``(iv) purchasing preferred equity positions in 
                commercial real estate companies that require capital 
                to satisfy outstanding debt obligations, which the 
                Secretary, acting alone or in concert with the Board of 
                Governors of the Federal Reserve System, may achieve 
                by--
                            ``(I) directly purchasing those positions; 
                        or
                            ``(II) providing full or partial guarantees 
                        of those positions to financial institutions to 
                        enable the financial institutions to purchase 
                        those positions.''; and
            (4) by adding at the end the following:
            ``(B) If the appropriate Federal banking agency (as that 
        term is defined in section 3 of the Federal Deposit Insurance 
        Act (12 U.S.C. 1813)) or the National Credit Union 
        Administration Board applies a risk-based capital requirement 
        of the applicable agency to a preferred equity position for 
        which there is a full or partial guarantee provided under 
        subparagraph (A)(iv)(II), that position shall receive a risk 
        weight of zero percent for the purposes of the application of 
        that requirement.''.
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