Title: A bill 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]
[S. 3774 Introduced in Senate (IS)]

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116th CONGRESS
  2d Session
                                S. 3774

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 20, 2020

  Mr. Peters 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 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 (Public Law 116-136) is amended by 
adding at the end the following:
    ``(i) Community Capital Investment Program.--
            ``(1) In general.--The Secretary shall establish a 
        Community Capital Investment 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;
                            ``(iii) with respect to which no loan 
                        payment is required under at least the end of 
                        the 180-day 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--
                    ``(A) 1 percent, during the 3-year period following 
                the date on which such instrument is issued; and
                    ``(B) 3 percent, after the 3-year period described 
                under subparagraph (A).
            ``(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) Definitions.--In this subsection:
                    ``(A) Community investment institution.--The term 
                `community investment institution' means--
                            ``(i) a community development financial 
                        institution, as defined in section 103 of the 
                        Community Development Banking and Financial 
                        Institutions 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 in 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' means 
                a State credit union and Federal credit union, as 
                defined in 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 in section 3 of the 
                Federal Deposit Insurance Act (12 U.S.C. 1813) 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.
                    ``(E) Program.--The term `Program' means the 
                Community Capital Investment Program.''.
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