Title: Ensuring Diversity in Community Banking Act
Policy area: Finance and Financial Sector

Summary:
Ensuring Diversity in Community Banking Act of 2019
This bill establishes and revises provisions related to minority depository institutions, community development financial institutions, and impact banks.
The bill (1) expands the definition of minority depository institutions to include women-owned banks, and (2) establishes impact banks as depository institutions with total assets less than $10 billion and where at least 50% of loans are extended to low-income borrowers.
The bill establishes a program allowing minority depository institutions and impact banks to receive deposits from certain Department of the Treasury accounts through designated custodial entities. It also establishes the Minority Bank Deposit Program to ensure the use of minority banks and minority credit unions to the maximum extent possible to serve the financial needs of federal departments and agencies.
Federal banking agencies must issue rules allowing new minority depository institutions and impact banks three years to meet capital requirements.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5322 Introduced in House (IH)]

<DOC>






116th CONGRESS
  1st Session
                                H. R. 5322

  To establish or modify requirements relating to minority depository 
institutions, community development financial institutions, and impact 
                     banks, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            December 5, 2019

Mr. Meeks (for himself, Mr. Green of Texas, Ms. Tlaib, Mr. Cleaver, Mr. 
   David Scott of Georgia, Mr. Clay, and Mrs. Beatty) introduced the 
   following bill; which was referred to the Committee on Financial 
  Services, and in addition to the Committee on Small Business, for a 
 period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL


 
  To establish or modify requirements relating to minority depository 
institutions, community development financial institutions, and impact 
                     banks, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Ensuring Diversity 
in Community Banking Act of 2019''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Sense of Congress on funding the loan-loss reserve fund for 
                            small dollar loans.
Sec. 3. Definitions.
Sec. 4. Inclusion of women's banks in the definition of minority 
                            depository institution.
Sec. 5. Establishment of impact bank designation.
Sec. 6. Minority Depository Institutions Advisory Committees.
Sec. 7. Federal deposits in minority depository institutions.
Sec. 8. Minority Bank Deposit Program.
Sec. 9. Diversity report and best practices.
Sec. 10. Investments in minority depository institutions and impact 
                            banks.
Sec. 11. Requirement to mentor minority depository institutions or 
                            community development financial 
                            institutions to serve as a depositary or 
                            financial agent.
Sec. 12. Custodial deposit program for covered minority depository 
                            institutions and impact banks.
Sec. 13. Streamlined community development financial institution 
                            applications and reporting.
Sec. 14. Task force on lending to small business concerns.

SEC. 2. SENSE OF CONGRESS ON FUNDING THE LOAN-LOSS RESERVE FUND FOR 
              SMALL DOLLAR LOANS.

    The sense of Congress is the following:
            (1) The Community Development Financial Institutions Fund 
        (the ``CDFI Fund'') is an agency of the Department of the 
        Treasury, and was established by the Riegle Community 
        Development and Regulatory Improvement Act of 1994. The mission 
        of the CDFI Fund is ``to expand economic opportunity for 
        underserved people and communities by supporting the growth and 
        capacity of a national network of community development 
        lenders, investors, and financial service providers''. A 
        community development financial institution (a ``CDFI'') is a 
        specialized financial institution serving low-income 
        communities and a Community Development Entity (a ``CDE'') is a 
        domestic corporation or partnership that is an intermediary 
        vehicle for the provision of loans, investments, or financial 
        counseling in low-income communities. The CDFI Fund certifies 
        CDFIs and CDEs. Becoming a certified CDFI or CDE allows 
        organizations to participate in various CDFI Fund programs as 
        follows:
                    (A) The Bank Enterprise Award Program, which 
                provides FDIC-insured depository institutions awards 
                for a demonstrated increase in lending and investments 
                in distressed communities and CDFIs.
                    (B) The CDFI Program, which provides Financial and 
                Technical Assistance awards to CDFIs to reinvest in the 
                CDFI, and to build the capacity of the CDFI, including 
                financing product development and loan loss reserves.
                    (C) The Native American CDFI Assistance Program, 
                which provides CDFIs and sponsoring entities Financial 
                and Technical Assistance awards to increase lending and 
                grow the number of CDFIs owned by Native Americans to 
                help build capacity of such CDFIs.
                    (D) The New Market Tax Credit Program, which 
                provides tax credits for making equity investments in 
                CDEs that stimulate capital investments in low-income 
                communities.
                    (E) The Capital Magnet Fund, which provides awards 
                to CDFIs and nonprofit affordable housing organizations 
                to finance affordable housing solutions and related 
                economic development activities.
                    (F) The Bond Guarantee Program, a source of long-
                term, patient capital for CDFIs to expand lending and 
                investment capacity for community and economic 
                development purposes.
            (2) The Department of the Treasury is authorized to create 
        multi-year grant programs designed to encourage low-to-moderate 
        income individuals to establish accounts at federally insured 
        banks, and to improve low-to-moderate income individuals' 
        access to such accounts on reasonable terms.
            (3) Under this authority, grants to participants in CDFI 
        Fund programs may be used for loan-loss reserves and to 
        establish small-dollar loan programs by subsidizing related 
        losses. These grants also allow for the providing recipients 
        with the financial counseling and education necessary to 
        conduct transactions and manage their accounts. These loans 
        provide low-cost alternatives to payday loans and other 
        nontraditional forms of financing that often impose excessive 
        interest rates and fees on borrowers, and lead millions of 
        Americans to fall into debt traps. Small-dollar loans can only 
        be made pursuant to terms, conditions, and practices that are 
        reasonable for the individual consumer obtaining the loan.
            (4) Program participation is restricted to eligible 
        institutions, which are limited to organizations listed in 
        section 501(c)(3) of the Internal Revenue Code and exempt from 
        tax under 501(a) of such Code, federally insured depository 
        institutions, community development financial institutions and 
        State, local, or Tribal government entities.
            (5) Since its founding, the CDFI Fund has awarded over 
        $3,300,000,000 to CDFIs and CDEs, allocated $54,000,000,000 in 
        tax credits, and $1,510,000,000 in bond guarantees. According 
        to the CDFI Fund, some programs attract as much as $10 in 
        private capital for every $1 invested by the CDFI Fund. The 
        Administration and the Congress should prioritize appropriation 
        of funds for the loan loss reserve fund and technical 
        assistance programs administered by the Community Development 
        Financial Institution Fund, as included in the version of the 
        ``Financial Services and General Government Appropriations Act, 
        2020'' (H.R. 3351) that passed the House of Representatives on 
        June, 26, 2019.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Community development financial institution.--The term 
        ``community development financial institution'' has the meaning 
        given under section 103 of the Riegle Community Development and 
        Regulatory Improvement Act of 1994 (12 U.S.C. 4702).
            (2) Minority depository institution.--The term ``minority 
        depository institution'' has the meaning given under section 
        308 of the Financial Institutions Reform, Recovery, and 
        Enforcement Act of 1989 (12 U.S.C. 1463 note), as amended by 
        this Act.

SEC. 4. INCLUSION OF WOMEN'S BANKS IN THE DEFINITION OF MINORITY 
              DEPOSITORY INSTITUTION.

    Section 308(b)(1) of the Financial Institutions Reform, Recovery, 
and Enforcement Act of 1989 (12 U.S.C. 1463 note) is amended--
            (1) by redesignating subparagraphs (A), (B), and (C) as 
        clauses (i), (ii), and (iii), respectively;
            (2) by striking ``means any'' and inserting the following: 
        ``means--
            ``(A) any''; and
            (3) in clause (iii) (as so redesignated), by striking the 
        period at the end and inserting ``; or''; and
            (4) by inserting at the end the following new subparagraph:
                    ``(B) any bank described in clause (i), (ii), or 
                (iii) of section 19(b)(1)(A) of the Federal Reserve 
                Act--
                            ``(i) more than 50 percent of the 
                        outstanding shares of which are held by 1 or 
                        more women; and
                            ``(ii) the majority of the directors on the 
                        board of directors of which are women.''.

SEC. 5. ESTABLISHMENT OF IMPACT BANK DESIGNATION.

    (a) In General.--Each appropriate Federal banking agency shall 
establish a program under which a depository institution with total 
consolidated assets of less than $10,000,000,000 may elect to be 
designated as an impact bank if 50 percent or more of the loans 
extended by such covered bank are extended to low-income borrowers.
    (b) Designation.--Based on data obtained through examinations, an 
appropriate Federal banking agency shall submit a notification to a 
depository institution stating that the depository institution 
qualifies for designation as an impact bank.
    (c) Application.--A depository institution that does not receive a 
notification described in subsection (b) may submit an application to 
the appropriate Federal banking agency demonstrating that the 
depository institution qualifies for designation as an impact bank.
    (d) Additional Data or Oversight.--A depository institution is not 
required to submit additional data to an appropriate Federal banking 
agency or be subject to additional oversight from such an agency if 
such data or oversight is related specifically and solely for 
consideration for a designation as an impact bank.
    (e) Removal of Designation.--If an appropriate Federal banking 
agency determines that a depository institution designated as an impact 
bank no longer meets the criteria for such designation, the appropriate 
Federal banking agency shall rescind the designation and notify the 
depository institution of such rescission.
    (f) Reconsideration of Designation; Appeals.--A depository 
institution may--
            (1) submit to the appropriate Federal banking agency a 
        request to reconsider a determination that such depository 
        institution no longer meets the criteria for the designation; 
        or
            (2) file an appeal in accordance with procedures 
        established by the appropriate Federal banking agency.
    (g) Rulemaking.--Not later than 1 year after the date of the 
enactment of this Act, the appropriate Federal banking agencies shall 
jointly issue rules to carry out the requirements of this section, 
including by providing a definition of a low-income borrower.
    (h) Federal Deposit Insurance Act Definitions.--In this section, 
the terms ``depository institution'' and ``appropriate Federal banking 
agency'' have the meanings given such terms, respectively, in section 3 
of the Federal Deposit Insurance Act (12 U.S.C. 1813).

SEC. 6. MINORITY DEPOSITORY INSTITUTIONS ADVISORY COMMITTEES.

    (a) Establishment.--Each covered regulator shall establish an 
advisory committee to be called the ``Minority Depository Institutions 
Advisory Committee''.
    (b) Duties.--Each Minority Depository Institutions Advisory 
Committee shall provide advice to the respective covered regulator on 
meeting the goals established by section 308 of the Financial 
Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 
1463 note) to preserve the present number of covered minority 
institutions, preserve the minority character of minority-owned 
institutions in cases involving mergers or acquisitions, provide 
technical assistance, and encourage the creation of new covered 
minority institutions. The scope of the work of each such Minority 
Depository Institutions Advisory Committee shall include an assessment 
of the current condition of covered minority institutions, what 
regulatory changes or other steps the respective agencies may be able 
to take to fulfill the requirements of such section 308, and other 
issues of concern to minority depository institutions.
    (c) Membership.--
            (1) In general.--Each Minority Depository Institutions 
        Advisory Committee shall consist of no more than 10 members, 
        who--
                    (A) shall serve for one two-year term;
                    (B) shall serve as a representative of a depository 
                institution or an insured credit union with respect to 
                which the respective covered regulator is the covered 
                regulator of such depository institution or insured 
                credit union; and
                    (C) shall not receive pay by reason of their 
                service on the advisory committee, but may receive 
                travel or transportation expenses in accordance with 
                section 5703 of title 5, United States Code.
            (2) Diversity.--To the extent practicable, each covered 
        regulator shall ensure that the members of Minority Depository 
        Institutions Advisory Committee of such agency reflect the 
        diversity of depository institutions.
    (d) Meetings.--
            (1) In general.--Each Minority Depository Institutions 
        Advisory Committee shall meet not less frequently than twice 
        each year.
            (2) Invitations.--Each Minority Depository Institutions 
        Advisory Committee shall invite the attendance at each meeting 
        of the Minority Depository Institutions Advisory Committee of--
                    (A) one member of the majority party and one member 
                of the minority party of the Committee on Financial 
                Services of the House of Representatives and the 
                Committee on Banking, Housing, and Urban Affairs of the 
                Senate; and
                    (B) one member of the majority party and one member 
                of the minority party of any relevant subcommittees of 
                such committees.
    (e) No Termination of Advisory Committees.--The termination 
requirements under section 14 of the Federal Advisory Committee Act (5 
U.S.C. app.) shall not apply to a Minority Depository Institutions 
Advisory Committee established pursuant to this section.
    (f) Definitions.--In this section:
            (1) Covered regulator.--The term ``covered regulator'' 
        means the Comptroller of the Currency, the Board of Governors 
        of the Federal Reserve System, the Federal Deposit Insurance 
        Corporation, and the National Credit Union Administration.
            (2) Covered minority institution.--The term ``covered 
        minority institution'' means a minority depository institution 
        (as defined in section 308(b) of the Financial Institutions 
        Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1463 
        note)) or a minority credit union (as defined in section 
        1204(c) of the Financial Institutions Reform, Recovery, and 
        Enforcement Act of 1989, as amended by this Act).
            (3) Depository institution.--The term ``depository 
        institution'' has the meaning given under section 3 of the 
        Federal Deposit Insurance Act (12 U.S.C. 1813).
            (4) Insured credit union.--The term ``insured credit 
        union'' has the meaning given in section 101 of the Federal 
        Credit Union Act (12 U.S.C. 1752).
    (g) Technical Amendment.--Section 308(b) of the Financial 
Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 
1463 note) is amended by adding at the end the following new paragraph:
            ``(3) Depository institution.--The term `depository 
        institution' means an `insured depository institution' (as 
        defined in section 3 of the Federal Deposit Insurance Act (12 
        U.S.C. 1813)) and an insured credit union (as defined in 
        section 101 of the Federal Credit Union Act (12 U.S.C. 
        1752)).''.

SEC. 7. FEDERAL DEPOSITS IN MINORITY DEPOSITORY INSTITUTIONS.

    (a) In General.--Section 308 of the Financial Institutions Reform, 
Recovery, and Enforcement Act of 1989 (12 U.S.C. 1463 note) is 
amended--
            (1) by adding at the end the following new subsection:
    ``(d) Federal Deposits.--The Secretary of the Treasury shall ensure 
that deposits made by Federal agencies in minority depository 
institutions and impact banks are fully collateralized or fully 
insured, as determined by the Secretary. Such deposits shall include 
reciprocal deposits as defined in section 337.6(e)(2)(v) of title 12, 
Code of Federal Regulations (as in effect on March 6, 2019).''; and
            (2) in subsection (b), as amended by section 6(g), by 
        adding at the end the following new paragraph:
            ``(4) Impact bank.--The term `impact bank' means a 
        depository institution designated by an appropriate Federal 
        banking agency pursuant to section 5 of the Ensuring Diversity 
        in Community Banking Act of 2019.''.
    (b) Technical Amendments.--Section 308 of the Financial 
Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 
1463 note) is amended--
            (1) in the matter preceding paragraph (1), by striking 
        ``section--'' and inserting ``section:''; and
            (2) in the paragraph heading for paragraph (1), by striking 
        ``financial'' and inserting ``depository''.

SEC. 8. MINORITY BANK DEPOSIT PROGRAM.

    (a) In General.--Section 1204 of the Financial Institutions Reform, 
Recovery, and Enforcement Act of 1989 (12 U.S.C. 1811 note) is amended 
to read as follows:

``SEC. 1204. EXPANSION OF USE OF MINORITY BANKS AND MINORITY CREDIT 
              UNIONS.

    ``(a) Minority Bank Deposit Program.--
            ``(1) Establishment.--There is established a program to be 
        known as the `Minority Bank Deposit Program' to expand the use 
        of minority banks and minority credit unions.
            ``(2) Administration.--The Secretary of the Treasury, 
        acting through the Fiscal Service, shall--
                    ``(A) on application by a depository institution or 
                credit union, certify whether such depository 
                institution or credit union is a minority bank or 
                minority credit union;
                    ``(B) maintain and publish a list of all depository 
                institutions and credit unions that have been certified 
                pursuant to subparagraph (A); and
                    ``(C) periodically distribute the list described in 
                subparagraph (B) to--
                            ``(i) all Federal departments and agencies;
                            ``(ii) interested State and local 
                        governments; and
                            ``(iii) interested private sector 
                        companies.
            ``(3) Inclusion of certain entities on list.--A depository 
        institution or credit union that, on the date of the enactment 
        of this section, has a current certification from the Secretary 
        of the Treasury stating that such depository institution or 
        credit union is a minority bank or minority credit union shall 
        be included on the list described under paragraph (2)(B).
    ``(b) Expanded Use Among Federal Departments and Agencies.--
            ``(1) In general.--Not later than 1 year after the 
        establishment of the program described in subsection (a), the 
        head of each Federal department or agency shall develop and 
        implement standards and procedures to ensure, to the maximum 
        extent possible as permitted by law, the use of minority banks 
        and minority credit unions to serve the financial needs of each 
        such department or agency.
            ``(2) Report to congress.--Not later than 2 years after the 
        establishment of the program described in subsection (a), and 
        annually thereafter, the head of each Federal department or 
        agency shall submit to Congress a report on the actions taken 
        to increase the use of minority banks and minority credit 
        unions to serve the financial needs of each such department or 
        agency.
    ``(c) Definitions.--For purposes of this section:
            ``(1) Credit union.--The term `credit union' has the 
        meaning given the term `insured credit union' in section 101 of 
        the Federal Credit Union Act (12 U.S.C. 1752).
            ``(2) Depository institution.--The term `depository 
        institution' has the meaning given the term `insured depository 
        institution' in section 3 of the Federal Deposit Insurance Act 
        (12 U.S.C. 1813).
            ``(3) Minority.--The term `minority' means any Black 
        American, Native American, Hispanic American, or Asian 
        American.
            ``(4) Minority bank.--The term `minority bank' means a 
        minority depository institution as defined in section 308 of 
        this Act.
            ``(5) Minority credit union.--The term `minority credit 
        union' means any credit union for which more than 50 percent of 
        the membership (including board members) of such credit union 
        are minority individuals, as determined by the National Credit 
        Union Administration pursuant to section 308 of this Act.''.
    (b) Conforming Amendments.--The following provisions are amended by 
striking ``1204(c)(3)'' and inserting ``1204(c)'':
            (1) Section 808(b)(3) of the Community Reinvestment Act of 
        1977 (12 U.S.C. 2907(b)(3)).
            (2) Section 40(g)(1)(B) of the Federal Deposit Insurance 
        Act (12 U.S.C. 1831q(g)(1)(B)).
            (3) Section 704B(h)(4) of the Equal Credit Opportunity Act 
        (15 U.S.C. 1691c-2(h)(4)).

SEC. 9. DIVERSITY REPORT AND BEST PRACTICES.

    (a) Annual Report.--Each covered regulator shall submit to Congress 
an annual report on diversity including the following:
            (1) Data, based on voluntary self-identification, on the 
        racial, ethnic, and gender composition of the examiners of each 
        covered regulator, disaggregated by length of time served as an 
        examiner.
            (2) The status of any examiners of covered regulators, 
        based on voluntary self-identification, as a veteran.
            (3) Whether any covered regulator, as of the date on which 
        the report required under this section is submitted, has 
        adopted a policy, plan, or strategy to promote racial, ethnic, 
        and gender diversity among examiners of the covered regulator.
            (4) Whether any special training is developed and provided 
        for examiners related specifically to working with banks that 
        serve communities that are predominantly minorities, low 
        income, or rural, and the key focus of such training.
    (b) Best Practices.--Each Office of Minority and Women Inclusion of 
a covered regulator shall develop, provide to the head of the covered 
regulator, and make publicly available best practices--
            (1) for increasing the diversity of candidates applying for 
        examiner positions, including through outreach efforts to 
        recruit diverse candidate to apply for entry-level examiner 
        positions; and
            (2) for retaining and providing fair consideration for 
        promotions within the examiner staff for purposes of achieving 
        diversity among examiners.
    (c) Covered Regulator Defined.--In this section, the term ``covered 
regulator'' means the Comptroller of the Currency, the Board of 
Governors of the Federal Reserve System, the Federal Deposit Insurance 
Corporation, and the National Credit Union Administration.

SEC. 10. INVESTMENTS IN MINORITY DEPOSITORY INSTITUTIONS AND IMPACT 
              BANKS.

    (a) Control for Certain Institutions.--Section 7(j)(8)(B) of the 
Federal Deposit Insurance Act (12 U.S.C. 1817(j)(8)(B)) is amended to 
read as follows:
            ``(B) `control' means the power, directly or indirectly--
                    ``(i) to direct the management or policies of an 
                insured depository institution; or
                    ``(ii)(I) with respect to an insured depository 
                institution, of a person to vote 25 per centum or more 
                of any class of voting securities of such institution; 
                or
                    ``(II) with respect to an insured depository 
                institution that is an impact bank (as designated 
                pursuant to section 5 of the Ensuring Diversity in 
                Community Banking Act of 2019) or a minority depository 
                institution (as defined in section 308(b) of the 
                Financial Institutions Reform, Recovery, and 
                Enforcement Act of 1989), of an individual to vote 30 
                percent of more of any class of voting securities of 
                such an impact bank or a minority depository 
                institution.''.
    (b) Rulemaking.--The appropriate Federal banking agency (as defined 
in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)) 
shall jointly issue rules for de novo minority depository institutions 
and de novo impact banks (as designated pursuant to section 5) to allow 
3 years to meet the capital requirements otherwise applicable to 
minority depository institutions and impact banks.
    (c) Report.--Not later than 1 year after the date of the enactment 
of this Act, the appropriate Federal banking agencies shall jointly 
submit to Congress a report on--
            (1) the principal causes for the low number of de novo 
        minority depository institutions during the 10-year period 
        preceding the date of the report;
            (2) the main challenges to the creation of de novo minority 
        depository institutions and de novo impact banks; and
            (3) regulatory and legislative considerations to promote 
        the establishment of de novo minority depository institutions 
        and de novo impact banks.

SEC. 11. REQUIREMENT TO MENTOR MINORITY DEPOSITORY INSTITUTIONS OR 
              COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS TO SERVE AS 
              A DEPOSITARY OR FINANCIAL AGENT.

    (a) In General.--Before a large financial institution may be 
employed as a financial agent of the Department of the Treasury or 
perform any reasonable duties as depositary of public moneys of the 
Department of the Treasury, the large financial institution shall 
demonstrate participation as a mentor in a covered mentor-protege 
program to a protege firm that is a minority depository institution or 
a community development financial institution.
    (b) Report.--Not later than 6 months after the date of the 
enactment of this Act and annually thereafter, the Secretary of the 
Treasury shall submit to Congress a report on participants in a covered 
mentor-protege program, including an analysis of outcomes of such 
program.
    (c) Procedures.--The Secretary of the Treasury shall publish 
procedures for compliance with the requirements of this section for 
large financial institutions.
    (d) Definitions.--In this section:
            (1) Covered mentor-protege program.--The term ``covered 
        mentor-protege program'' means a mentor-protege program 
        established by the Secretary of the Treasury pursuant to 
        section 45 of the Small Business Act (15 U.S.C. 657r).
            (2) Large financial institution.--The term ``large 
        financial institution'' means any entity--
                    (A) regulated by the Comptroller of the Currency, 
                the Board of Governors of the Federal Reserve System, 
                the Federal Deposit Insurance Corporation, or the 
                National Credit Union Administration; and
                    (B) that has total consolidated assets greater than 
                or equal to $50,000,000,000.

SEC. 12. CUSTODIAL DEPOSIT PROGRAM FOR COVERED MINORITY DEPOSITORY 
              INSTITUTIONS AND IMPACT BANKS.

    (a) Establishment.--The Secretary of the Treasury shall establish a 
custodial deposit program (in this section referred to as the 
``Program'') under which a covered bank shall receive monthly deposits 
from a qualifying account.
    (b) Application.--A covered bank shall submit to the Secretary an 
application to participate in the Program at such time, in such manner, 
and containing such information as the Secretary may determine.
    (c) Program Operations.--
            (1) Designation of custodial entities.--The Secretary shall 
        designate eligible custodial entities to make monthly deposits 
        with covered banks selected for participation in the Program on 
        behalf of a qualifying account.
            (2) Custodial accounts.--
                    (A) In general.--The Secretary shall establish a 
                custodial deposit account for each qualifying account 
                with the eligible custodial entity designated to make 
                deposits with covered banks for each such qualifying 
                account.
                    (B) Amount.--The Secretary shall deposit a total 
                amount not greater than 5 percent of a qualifying 
                account into any custodial deposit accounts established 
                under subparagraph (A).
                    (C) Deposits with program participants.--
                            (i) Monthly deposits.--Each month, each 
                        eligible custodial entity designated by the 
                        Secretary shall deposit an amount not greater 
                        than the insured amount, in the aggregate, from 
                        each custodial deposit account, in a single 
                        covered bank.
                            (ii) Limitation.--With respect to the funds 
                        of an individual qualifying account, the 
                        eligible custodial entity may not deposit an 
                        amount greater than the insured amount in a 
                        single covered bank.
                            (iii) Insured amount defined.--In this 
                        subparagraph, the term ``insured amount'' means 
                        the amount that is the greater of--
                                    (I) the standard maximum deposit 
                                insurance amount (as defined in section 
                                11(a)(1)(E) of the Federal Deposit 
                                Insurance Act (12 U.S.C. 
                                1821(a)(1)(E))); or
                                    (II) such higher amount negotiated 
                                between the Secretary and the 
                                Corporation under which the Corporation 
                                will insure all deposits of such higher 
                                amount.
                    (D) Limitations.--The total amount of funds 
                deposited under the Program in a covered bank may not 
                exceed the lesser of--
                            (i) 10 percent of the average amount of 
                        deposits held by such covered bank in the 
                        previous quarter; or
                            (ii) $100,000,000.
            (3) Interest.--
                    (A) In general.--Each eligible custodial entity 
                designated by the Secretary shall--
                            (i) collect interest from each covered bank 
                        in which such custodial entity deposits funds 
                        pursuant to paragraph (2); and
                            (ii) disburse such interest to the 
                        Secretary each month.
                    (B) Interest rate.--The rate of any interest 
                collected under this paragraph may not exceed 50 
                percent of the discount window primary credit interest 
                rate most recently published on the Federal Reserve 
                Statistical Release on selected interest rates (daily 
                or weekly), commonly referred to as the H.15 release 
                (commonly known as the ``Federal funds rate'').
            (4) Statements.--Each eligible custodial entity designated 
        by the Secretary shall submit to the Secretary monthly 
        statements that include the total amount of funds deposited 
        with, and interest rate received from, each covered bank by the 
        eligible custodial entity on behalf of qualifying entities.
            (5) Records.--The Secretary shall issue a quarterly report 
        to Congress and make publicly available a record identifying 
        all covered banks participatinig in the Program and amounts 
        deposited under the Program in covered banks.
    (d) Requirements Relating to Deposits.--Deposits made with covered 
banks under this section may not--
            (1) be considered by the Corporation to be funds obtained, 
        directly or indirectly, by or through any deposit broker for 
        deposit into 1 or more deposit accounts (as described under 
        section 29 of the Federal Deposit Insurance Act (12 U.S.C. 
        1831f)); or
            (2) be subject to insurance fees from the Corporation that 
        are greater than insurance fees for typical demand deposits not 
        obtained, directly or indirectly, by or through any deposit 
        broker (commonly known as ``core deposits'').
    (e) Modifications.--
            (1) In general.--The Secretary shall provide a 3-month 
        period for public notice and comment before making any material 
        change to the operation of the Program.
            (2) Exception.--The requirements of paragraph (1) shall not 
        apply if the Secretary makes a material change to the Program 
        to comply with safety and soundness standards or other law.
    (f) Termination.--
            (1) By covered bank.--A covered bank selected for 
        participation in the Program pursuant to subsection (c) may 
        terminate participation in the Program by providing the 
        Secretary a notification 60 days prior to termination.
            (2) By secretary.--The Secretary may terminate the 
        participation of a covered bank in the Program if the Secretary 
        determines the covered bank--
                    (A) violated any terms of participation in the 
                Program;
                    (B) failed to comply with Federal bank secrecy 
                laws, as documented in writing by the primary regulator 
                of the covered bank;
                    (C) failed to remain well capitalized; or
                    (D) failed comply with safety and soundness 
                standards, as documented in writing by the primary 
                regulator of the covered bank.
    (g) Definitions.--In this section:
            (1) Corporation.--The term ``Corporation'' means the 
        Federal Deposit Insurance Corporation.
            (2) Covered bank.--The term ``covered bank'' means--
                    (A) a minority depository institution that is 
                regulated by the Corporation or the National Credit 
                Union Administration that is well capitalized (as 
                defined in section 38(b) of the Federal Deposit 
                Insurance Act (12 U.S.C. 1831o(b))); or
                    (B) a depository institution designated pursuant to 
                section 5 of the Ensuring Diversity in Community 
                Banking Act of 2019 that is well capitalized (as 
                defined in section 38(b) of the Federal Deposit 
                Insurance Act (12 U.S.C. 1831o(b))).
            (3) Eligible custodial entity.--The term ``eligible 
        custodial entity'' means--
                    (A) an insured depository institution (as defined 
                in section 3 of the Federal Deposit Insurance Act (12 
                U.S.C. 1813)),
                    (B) an insured credit union (as defined in section 
                101 of the Federal Credit Union Act (12 U.S.C. 1752)), 
                or
                    (C) or a well capitalized State-chartered trust 
                company,
        designated by the Secretary under subsection (c)(1).
            (4) Federal bank secrecy laws.--The term ``Federal bank 
        secrecy laws'' means--
                    (A) section 21 of the Federal Deposit Insurance Act 
                (12 U.S.C. 1829b);
                    (B) section 123 of Public Law 91-508; and
                    (C) subchapter II of chapter 53 of title 31, United 
                States Code.
            (5) Qualifying account.--The term ``qualifying account'' 
        means any account established in the Department of the Treasury 
        that--
                    (A) is controlled by the Secretary; and
                    (B) is expected to maintain a balance greater than 
                $200,000,000 for the following calendar month.
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury.
            (7) Well capitalized.--The term ``well capitalized'' has 
        the meaning given in section 38 of the Federal Deposit 
        Insurance Act (12 U.S.C. 1831o).

SEC. 13. STREAMLINED COMMUNITY DEVELOPMENT FINANCIAL INSTITUTION 
              APPLICATIONS AND REPORTING.

    (a) Application Processes.--Not later than 12 months after the date 
of the enactment of this Act and with respect to any person having 
assets under $3,000,000,000 that submits an application for deposit 
insurance with the Federal Deposit Insurance Corporation that could 
also become a community development financial institution, the Federal 
Deposit Insurance Corporation, in consultation with the Administrator 
of the Community Development Financial Institutions Fund, shall--
            (1) develop systems and procedures to record necessary 
        information to allow the Administrator to conduct preliminary 
        analysis for such person to also become a community development 
        financial institution; and
            (2) develop procedures to streamline the application and 
        annual certification processes and to reduce costs for such 
        person to become, and maintain certification as, a community 
        development financial institution that serves low- and 
        moderate-income neighborhoods (as defined under the Community 
        Reinvestment Act of 1977 (12 U.S.C. 2901 et seq.)).
    (b) Report on Implementation.--Not later than 18 months after the 
date of the enactment of this Act, the Federal Deposit Insurance 
Corporation shall submit to Congress a report describing the systems 
and procedures required under subsection (a).
    (c) Annual Report.--
            (1) In general.--Section 17(a)(1) of the Federal Deposit 
        Insurance Act (12 U.S.C. 1827(a)(1)) is amended--
                    (A) in subparagraph (E), by striking ``and'' at the 
                end;
                    (B) by redesignating subparagraph (F) as 
                subparagraph (G);
                    (C) by inserting after subparagraph (E) the 
                following new subparagraph:
                    ``(F) applicants for deposit insurance that could 
                also become a community development financial 
                institution (as defined in section 103 of the Riegle 
                Community Development and Regulatory Improvement Act of 
                1994), a minority depository institution (as defined in 
                section 308 of the Financial Institutions Reform, 
                Recovery, and Enforcement Act of 1989), or an impact 
                bank (as designated pursuant to section 5 of the 
                Ensuring Diversity in Community Banking Act of 2019); 
                and''.
            (2) Application.--The amendment made by this subsection 
        shall apply with respect to the first report to be submitted 
        after the date that is 2 years after the date of the enactment 
        of this Act.

SEC. 14. TASK FORCE ON LENDING TO SMALL BUSINESS CONCERNS.

    (a) In General.--Not later than 6 months after the date of the 
enactment of this Act, the Administrator of the Small Business 
Administration shall establish a task force to examine methods for 
improving relationships between the Small Business Administration and 
community development financial institutions, minority depository 
institutions, and Impact Banks to increase the volume of loans provided 
by such institutions to small business concerns (as defined under 
section 3 of the Small Business Act (15 U.S.C. 632)).
    (b) Report to Congress.--Not later than 18 months after the 
establishment of the task force described in subsection (a), the 
Administrator of the Small Business Administration shall submit to 
Congress a report on the findings of such task force.
                                 <all>