Title: To amend the CARES Act to establish a Community Capital Investment Program, and for other purposes.
Policy area: Finance and Financial Sector

Summary:
This bill establishes the Community Capital Investment Program to provide capital investments and interest-free loans to community development financial institutions, minority depository institutions, and certain small credit unions and banks to support low-income borrowers.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6868 Introduced in House (IH)]

<DOC>






116th CONGRESS
  2d Session
                                H. R. 6868

  To amend the CARES Act to establish a Community Capital Investment 
                    Program, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 14, 2020

Mr. Green of Texas introduced the following bill; which was referred to 
                  the Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
  To amend the CARES Act to establish a Community Capital Investment 
                    Program, 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. COMMUNITY CAPITAL INVESTMENT PROGRAM.

    Section 4003 of the CARES Act (15 U.S.C. 9042) is amended by adding 
at the end the following:
    ``(i) Community Capital Investment Program.--
            ``(1) In general.--The Secretary of the Treasury shall 
        establish a Community Capital Investment Program (the 
        `Program') to support the efforts of community investment 
        institutions to provide loans and forbearance for small 
        businesses, minority-owned businesses, and consumers, 
        especially in low-income and underserved communities, by--
                    ``(A) providing direct capital investments in 
                community investment institutions; and
                    ``(B) providing loans to community investment 
                institutions--
                            ``(i) that are interest-free loans;
                            ``(ii) that have a loan term of 5 years; 
                        and
                            ``(iii) with respect to which no loan 
                        payment is required until at least the end of 
                        the 6-month period beginning on the date the 
                        loan is made, or such longer term as the 
                        Secretary may determine appropriate.
            ``(2) Application date.--The Secretary shall begin 
        accepting applications for capital investments and loans under 
        the Program not later than the end of the 10-day period 
        beginning on the date of enactment of this subsection.
            ``(3) Dividend rate.--Any preferred stock or other 
        financial instrument issued to the Secretary in exchange for a 
        capital investment under the Program shall carry a dividend or 
        interest rate that does not exceed 1 percent.
            ``(4) Restrictions.--The restrictions described under 
        subsection (c)(3)(A)(ii) shall apply to capital investments and 
        loans made under this subsection.
            ``(5) Available amounts.--In carrying out the Program, the 
        Secretary shall use amounts made available under subsection 
        (b), notwithstanding the limitations on the use of such funds 
        under paragraphs (1) through (4) of such subsection (b).
            ``(6) MDI set-aside.--At least $3,000,000,000 of the direct 
        capital investments and loans made by the Secretary under the 
        Program shall be made to minority depository institutions.
            ``(7) Treatment of capital investments.--In making any 
        capital investment under the Program, the Secretary shall 
        ensure that the terms of the investment are designed to ensure 
        the investment receives Tier 1 capital treatment.
            ``(8) Definitions.--In this subsection:
                    ``(A) Community investment institution.--The term 
                `community investment institution' means--
                            ``(i) a community development financial 
                        institution, as defined under section 103 of 
                        the Riegle Community Development and Regulatory 
                        Improvement Act of 1994 (12 U.S.C. 4702);
                            ``(ii) an impact credit union;
                            ``(iii) an impact bank; and
                            ``(iv) a minority depository institution, 
                        as defined under section 308 of the Financial 
                        Institutions Reform, Recovery, and Enforcement 
                        Act of 1989 (12 U.S.C. 1463 note).
                    ``(B) Credit union.--The term `credit union' has 
                the meaning given the terms State credit union and 
                Federal credit union under section 101 of the Federal 
                Credit Union Act (12 U.S.C. 1752).
                    ``(C) Impact credit union.--The term `impact credit 
                union' means a credit union that--
                            ``(i) has total consolidated assets of less 
                        than $10,000,000,000; and
                            ``(ii) extends at least 50 percent of the 
                        loans extended by the credit union to borrowers 
                        who are low-income borrowers, as determined by 
                        the Secretary.
                    ``(D) Impact bank.--The term `impact bank' means a 
                depository institution (as defined under section 3 of 
                the Federal Deposit Insurance Act) that--
                            ``(i) has total consolidated assets of less 
                        than $10,000,000,000; and
                            ``(ii) extends at least 50 percent of the 
                        loans extended by the institution to borrowers 
                        who are low-income borrowers, as determined by 
                        the Secretary.''.
                                 <all>