Title: To amend the CARES Act to add requirements for the Main Street Lending Program related to non-profit organizations, small businesses, minority depository institutions, and community development financial institutions, and for other purposes.
Policy area: Finance and Financial Sector

Summary:
This bill expands existing COVID-19 (i.e., coronavirus disease 2019) economic aid programs to include nonprofit organizations and institutions of higher education. Specifically, the Federal Reserve Board must make these organizations eligible for the Main Street Lending Program, which is currently available to small- and mid-sized businesses.
The board must create low-cost loan options for nonprofit organizations, as well offer loan forgiveness to certain nonprofit organizations that predominately serve low-income communities.
The Main Street Lending Program must offer loans that do not have a minimum loan size and includes the ability to defer payments without capitalization of interest to small businesses, nonprofits, and institutions of higher education. The board must authorize community development financial institutions to be eligible lenders.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6892 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 6892

To amend the CARES Act to add requirements for the Main Street Lending 
Program related to non-profit organizations, small businesses, minority 
     depository institutions, and community development financial 
                 institutions, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 15, 2020

 Mrs. Beatty introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
To amend the CARES Act to add requirements for the Main Street Lending 
Program related to non-profit organizations, small businesses, minority 
     depository institutions, and community development financial 
                 institutions, 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. MAIN STREET LENDING PROGRAM REQUIREMENTS.

    (a) In General.--Section 4003(c)(3)(D)(ii) of the CARES Act (15 
U.S.C. 9042(c)(3)(D)(ii)) is amended--
            (1) by striking ``Nothing in this subparagraph shall limit 
        the discretion of the Board of Governors of the Federal Reserve 
        System to'' and inserting the following:
                                    ``(I) In general.--The Board of 
                                Governors of the Federal Reserve System 
                                shall''; and
            (2) by adding at the end the following:
                                    ``(II) Requirements.--In carrying 
                                out subclause (I), the Board of 
                                Governors of the Federal Reserve 
                                System--
                                            ``(aa) shall make non-
                                        profit organizations and 
                                        institutions of higher 
                                        education (as such term is 
                                        defined in section 101(a) of 
                                        the Higher Education Act of 
                                        1965 (20 U.S.C. 1001(a))) 
                                        eligible for any program or 
                                        facility established under such 
                                        subclause; and
                                            ``(bb) shall--

                                                    ``(AA) create a 
                                                low-cost loan option 
                                                tailored to the unique 
                                                needs of non-profit 
                                                organizations, 
                                                including the ability 
                                                to defer payments 
                                                without capitalization 
                                                of interest;

                                                    ``(BB) solely for 
                                                non-profit 
                                                organizations that 
                                                predominantly serve 
                                                low-income communities 
                                                (as determined by the 
                                                Board of Governors), 
                                                have the loans forgiven 
                                                by the Secretary of the 
                                                Treasury for a similar 
                                                purpose to maintain 
                                                payroll and operations 
                                                provided under the 
                                                Paycheck Protection 
                                                Program, 
                                                notwithstanding 
                                                subsection (d)(3); and

                                                    ``(CC) make any 
                                                organization that meets 
                                                the requirements of 
                                                section 501(c)(4) of 
                                                the Internal Revenue 
                                                Code of 1986 eligible 
                                                for any facility, but 
                                                only if such 
                                                organization has not 
                                                made and will not make 
                                                a contribution, 
                                                expenditure, 
                                                independent 
                                                expenditure, or 
                                                electioneering 
                                                communication (within 
                                                the meanings of such 
                                                terms under the Federal 
                                                Election Campaign Act 
                                                of 1971), and has not 
                                                undertaken and will not 
                                                undertake similar 
                                                campaign finance 
                                                activities in State and 
                                                local elections;''.

    (b) Deadline.--Not later than the end of the 5-day period beginning 
on the date of enactment of this Act, the Board of Governors of the 
Federal Reserve System shall issue such rules or take such other 
actions as may be necessary to implement the requirements made by the 
amendments made by this section.

SEC. 2. OPTIONS FOR SMALL BUSINESSES AND NON-PROFITS UNDER THE MAIN 
              STREET LENDING PROGRAM.

    (a) In General.--Section 4003(c)(3)(D)(ii)(II) of the CARES Act (15 
U.S.C. 9042(c)(3)(D)(ii)(II)), as added by section 1, if further 
amended by adding at the end the following:
                                            ``(cc) shall provide at 
                                        least one low-cost loan option 
                                        that small businesses, small 
                                        non-profits, and small 
                                        institutions of higher 
                                        education (as such term is 
                                        defined in section 101(a) of 
                                        the Higher Education Act of 
                                        1965 (20 U.S.C. 1001(a))) are 
                                        eligible for that does not have 
                                        a minimum loan size and 
                                        includes the ability to defer 
                                        payments without capitalization 
                                        of interest, and, solely for 
                                        small non-profit organizations 
                                        that predominantly serve low-
                                        income communities, as 
                                        determined by the Federal 
                                        Reserve, have the loans 
                                        forgiven by the Department of 
                                        the Treasury for a similar 
                                        purpose to maintain payroll and 
                                        operations provided under the 
                                        Paycheck Protection Program, 
                                        notwithstanding section 
                                        4003(d)(3) of the CARES Act;''.
    (b) Deadline.--Not later than the end of the 5-day period beginning 
on the date of enactment of this Act, the Board of Governors of the 
Federal Reserve System shall issue such rules or take such other 
actions as may be necessary to implement the requirements made by the 
amendments made by this section.

SEC. 3. TREATMENT OF CDFIS UNDER THE MAIN STREET LENDING PROGRAM.

    (a) In General.--Section 4003(c)(3)(D)(ii)(II) of the CARES Act (15 
U.S.C. 9042(c)(3)(D)(ii)(II)), as amended by section 2, is further 
amended by adding at the end the following:
                                            ``(dd) shall authorize 
                                        community development financial 
                                        institutions to be eligible 
                                        lenders under such program or 
                                        facility; and
                                            ``(ee) shall provide 
                                        resources, webinars, and 
                                        technical assistance (using 
                                        funds from such program or 
                                        facility) to minority 
                                        depository institutions and 
                                        community development financial 
                                        institutions that wish to be 
                                        eligible lenders under such 
                                        program or facility.''.
    (b) Deadline.--Not later than the end of the 5-day period beginning 
on the date of enactment of this Act, the Board of Governors of the 
Federal Reserve System shall issue such rules or take such other 
actions as may be necessary to implement the requirements made by the 
amendments made by this section.
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