Title: Small Business and Community Investments Expansion Act of 2020
Policy area: Finance and Financial Sector

Summary:
Small Business and Community Investments Expansion Act of 2020
This bill allows a Federal Home Loan Bank to make long-term advances to certain community development financial institutions and insured credit unions for activities related to small businesses, small farms, small agri-businesses, and community development. Currently, only certain community development financial institutions may qualify for these advances.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5612 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 5612

   To amend the Federal Home Loan Bank Act to allow for advances to 
certain community development financial institutions and credit unions, 
                        and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 15, 2020

 Ms. Gabbard introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
   To amend the Federal Home Loan Bank Act to allow for advances to 
certain community development financial institutions and credit unions, 
                        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.

    This Act may be cited as the ``Small Business and Community 
Investments Expansion Act of 2020''.

SEC. 2. EXPANDING THE PURPOSES OF ADVANCES AND COLLATERAL AVAILABLE TO 
              CERTAIN COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS AND 
              CREDIT UNIONS.

    (a) In General.--Section 10(a) of the Federal Home Loan Bank Act 
(12 U.S.C. 1430(a)) is amended--
            (1) in paragraph (2)(B), by inserting ``, eligible 
        community development financial institution, or eligible 
        insured credit union'' after ``community financial 
        institution''; and
            (2) in paragraph (3)(E), by inserting ``, eligible 
        community development financial institution, or eligible 
        insured credit union'' after ``community financial 
        institution''.
    (b) Definitions.--Section 2 of the Federal Home Loan Bank Act (12 
U.S.C. 1422) is amended by adding at the end the following:
            ``(13) Eligible community development financial 
        institution.--The term `eligible community development 
        financial institution' means an entity that--
                    ``(A) has been certified as a community development 
                financial institution (as such term is defined in 
                section 103 of the Riegle Community Development and 
                Regulatory Improvement Act of 1994) by the Secretary of 
                the Treasury; and
                    ``(B) satisfies the average total assets threshold 
                requirement for a community financial institution set 
                forth in paragraph (10).
            ``(14) Eligible insured credit union.--The term `eligible 
        insured credit union' means an insured credit union (as defined 
        in section 101 of the Federal Credit Union Act) that satisfies 
        the average total assets threshold requirement for a community 
        financial institution set forth in paragraph (10).''.
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