To modify requirements relating to the participation of community development financial institutions in the paycheck protection program of the Small Business Administration, and for other purposes.

Bill: 116-hr-6888
Sponsor: full_name: Rep. Adams, Alma S. [D-NC-12]
Introduced: 2020-05-15
Policy area: Commerce
Subjects: Administrative law and regulatory procedures

Bank accounts, deposits, capital

Banking and financial institutions regulation

Business expenses

Business records

Cardiovascular and respiratory health

Community life and organization

Credit and credit markets

Department of the Treasury

Emergency medical services and trauma care

Government lending and loan guarantees

Infectious and parasitic diseases

Small Business Administration

Small business

Wages and earnings
Latest action: action_date: 2020-05-15
text: Referred to the House Committee on Small Business.

Summaries:
action_date: 2020-05-15
action_desc: Introduced in House
text: <p>This bill authorizes community development financial institutions to make loans under the Paycheck Protection Program established to support small businesses in response to COVID-19 (i.e., coronavirus disease 2019).</p> <p>The bill also allows the Small Business Administration and the Department of the Treasury to revoke a lender's authority to make paycheck protection loans upon a joint determination that (1) the lender has had recent material operational shortcomings that warrant such a revocation, and (2) the revocation is consistent with the purpose of the program.</p>

tv_txt: I 116th CONGRESS 2d Session H. R. 6888 IN THE HOUSE OF REPRESENTATIVES May 15, 2020 Ms. Adams (for herself and Ms. Waters ) introduced the following bill; which was referred to the Committee on Small Business A BILL To modify requirements relating to the participation of community development financial institutions in the paycheck protection program of the Small Business Administration, and for other purposes.

1. Participation of community development financial institutions in the paycheck protection program (a) Delegated authority Section 7(a)(36)(F) of the Small Business Act ( 15 U.S.C. 636(a)(36)(F) ) is amended— (1) in clause (ii)(I), by inserting and a community development financial institution after under this subsection ; (2) in clause (iii), by striking shall be extended to additional lenders and inserting the following: shall be extended— (I) to community development financial institutions; and (II) to additional lenders ; and (3) by adding at the end the following new clause: (vi) Revocation of lenders The authority of a lender to make loans under this paragraph may be revoked upon a joint determination by the Administrator and the Secretary of the Treasury that— (I) such lender has had recent compliance shortcomings or other material operational shortcomings that warrant such a revocation; and (II) such a revocation is consistent with the purpose of this paragraph. . (b) Existing customers of non-Bank CDFIs The Secretary of the Treasury and the Administrator of the Small Business Administration shall revise any rules or guidance issued to carry out section 7(a)(36) of the Small Business Act ( 15 U.S.C. 636(a)(36) ) to specify that a non-bank CDFI does not have to go through a reverification of information about an existing customer for purposes of the Bank Secrecy Act, if the non-bank CDFI has maintained an ongoing financial relationship with the customer that is well documented, and there is no need for further due diligence based on the non-bank CDFI’s risk-based approach to Bank Secrecy Act compliance. (c) Definitions In this Act: (1) Bank Secrecy Act The term Bank Secrecy Act means— (A) section 21 of the Federal Deposit Insurance Act ( 12 U.S.C. 1829b ); (B) chapter 2 of title I of Public Law 91–508 ( 12 U.S.C. 1951 et seq.); and (C) subchapter II of chapter 53 of title 31, United States Code; (2) Community development financial institution The term community development financial institution has the meaning given that term under section 103 of the Riegle Community Development and Regulatory Improvement Act of 1994 ( 12 U.S.C. 4702 ). (3) Non-bank CDFI the term non-bank CDFI means a community development financial institution that is not an insured depository institution or insured credit union.