Title: To require the Board of Governors of the Federal Reserve System to provide zero-interest loans to minority depository institutions and community development financial institutions to combat COVID-19, and for other purposes.
Policy area: Finance and Financial Sector

Summary:
This bill requires the Federal Reserve Board to provide interest-free loans to small minority depository institutions and small community development financial institutions during the COVID-19 (i.e., coronavirus disease 2019) emergency period. The board must charge interest on these loans beginning 18 months after the end of the emergency period.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6381 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 6381

  To require the Board of Governors of the Federal Reserve System to 
  provide zero-interest loans to minority depository institutions and 
 community development financial institutions to combat COVID-19, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 24, 2020

 Mr. Green of Texas (for himself, Ms. Garcia of Texas, Mr. Meeks, Mr. 
  Cleaver, and Mrs. Beatty) introduced the following bill; which was 
            referred to the Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
  To require the Board of Governors of the Federal Reserve System to 
  provide zero-interest loans to minority depository institutions and 
 community development financial institutions to combat 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. LOANS TO MDIS AND CDFIS.

    (a) In General.--During the COVID-19 emergency period, the Board of 
Governors of the Federal Reserve System shall provide zero-interest 
loans to minority depository institutions and community development 
financial institutions to help mitigate the economic impact of COVID-19 
in low-income, underserved communities.
    (b) Asset Limitation.--Subsection (a) shall only apply to minority 
depository institutions and community development financial 
institutions with less than $1,000,000,000 in assets.
    (c) Interest To Resume 18 Months After Pandemic.--Notwithstanding 
subsection (a), the Board of Governors shall charge interest on loans 
made pursuant to subsection (a) after the end of the 18-month period 
beginning at the end of the COVID-19 emergency period, at a rate to be 
determined by the Board of Governors based on the interest amount 
charged under the discount window lending programs.
    (d) COVID-19 Pandemic Defined.--In this section, the term ``COVID-
19 emergency period'' means the period that begins upon the date of the 
enactment of this Act and ends upon the date of the termination by the 
Federal Emergency Management Administration of the emergency declared 
on March 13, 2020, by the President under the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act (42 U.S.C. 4121 et seq.) 
relating to the Coronavirus Disease 2019 (COVID-19) pandemic.
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