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.

Bill: 116-hr-6892
Sponsor: full_name: Rep. Beatty, Joyce [D-OH-3]
Introduced: 2020-05-15
Policy area: Finance and Financial Sector
Subjects: Economic performance and conditions

Educational facilities and institutions

Federal Reserve System

Government lending and loan guarantees

Small business
Latest action: action_date: 2020-05-15
text: Referred to the House Committee on Financial Services.

Summaries:
action_date: 2020-05-15
action_desc: Introduced in House
text: <p>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. </p> <p>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. </p> <p>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.</p>

tv_txt: I 116th CONGRESS 2d Session H. R. 6892 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.

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. 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. 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.