A bill to appropriate additional amounts to provide loans under the paycheck protection program to community development financial institutions and minority depository institutions, and for other purposes.

Bill: 116-s-3702
Sponsor: full_name: Sen. Markey, Edward J. [D-MA]
Introduced: 2020-05-12
Policy area: Commerce
Subjects: Appropriations

Business expenses

Cardiovascular and respiratory health

Credit and credit markets

Department of the Treasury

Emergency medical services and trauma care

Executive agency funding and structure

Government information and archives

Government lending and loan guarantees

Housing and community development funding

Infectious and parasitic diseases

Minority and disadvantaged businesses

Small business

Wages and earnings
Latest action: action_date: 2020-05-12
text: Read twice and referred to the Committee on Small Business and Entrepreneurship.

Summaries:
action_date: 2020-05-12
action_desc: Introduced in Senate
text: <p>This bill modifies and provides additional funding for the Paycheck Protection Program established to support small businesses in response to COVID-19 (i.e., coronavirus disease 2019).</p> <p>Specifically, the bill provides an additional $10 billion to guarantee paycheck protection loans, $7.5 billion of which shall be for small loans made by community development financial institutions or minority depository institutions.</p> <p>The bill also </p> <ul> <li>establishes a grant program to provide assistance to community development financial institutions and minority depository institutions that primarily make small paycheck protection loans;</li> <li>provides additional funding for the Community Development Financial Institutions Fund and prioritizes support for minority-led community development financial institutions or community development financial institutions that serve communities of color;</li> <li>authorizes community development financial institutions that are certified by the fund to make and approve paycheck protection loans;</li> <li>extends the deadline to apply for a paycheck protection loan;</li> <li>allows recipients up to 24 weeks to use their paycheck protection loan;</li> and <li>extends the deadline by which a paycheck protection loan recipient must eliminate a reduction in employment, salary, or wages to be eligible for loan forgiveness.</li> </ul>

tv_txt: II 116th CONGRESS 2d Session S. 3702 IN THE SENATE OF THE UNITED STATES May 12, 2020 Ms. Duckworth (for Mr. Markey (for himself and Ms. Duckworth )) introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship A BILL To appropriate additional amounts to provide loans under the paycheck protection program to community development financial institutions and minority depository institutions, and for other purposes.

1. Appropriations for CDFIs and minority depository institutions under the paycheck protection program (a) Definitions In this section— (1) the term community development financial institution has the meaning given the term in section 103 of the Riegle Community Development and Regulatory Improvement Act of 1994 ( 12 U.S.C. 4702 ); and (2) the term minority depository institution has the meaning given the term in section 308 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 ( 12 U.S.C. 1463 note). (b) Additional appropriations (1) In general There is appropriated, out of amounts in the Treasury not otherwise appropriated, for the fiscal year ending September 30, 2020, to remain available until expended, for an additional amount $10,000,000,000 under the heading Small Business Administration—Business Loans Program Account, CARES Act for the cost of guaranteed loans as authorized under section 7(a)(36) of the Small Business Act ( 15 U.S.C. 636(a)(36) ) made on or after the date of enactment of this Act by community development financial institutions or minority depository institutions under that section. (2) Set aside Of amounts appropriated under paragraph (1)— (A) $5,000,000,000 shall be for loans of less than $150,000 made by community development financial institutions or minority depository institutions under section 7(a)(36) of the Small Business Act ( 15 U.S.C. 636(a)(36) ); and (B) $2,500,000,000 shall be for loans of less than $75,000 made by community development financial institutions or minority depository institutions under section 7(a)(36) of the Small Business Act ( 15 U.S.C. 636(a)(36) ). (3) Commitment level Section 1102(b)(1) of the CARES Act ( Public Law 116–136 ) is amended by striking $659,000,000,000 and inserting $669,000,000,000 . (c) Technical assistance (1) Grant program The Secretary of the Treasury shall establish a grant program to provide management and technical assistance to community development financial institutions and minority depository institutions making loans under section 7(a)(36) of the Small Business Act ( 15 U.S.C. 636(a)(36) ) for which the average loan amount is less than $50,000. (2) Direct appropriations There is appropriated to the Secretary of the Treasury, out of amounts in the Treasury not otherwise appropriated, for the fiscal year ending September 30, 2020, to remain available until expended, $100,000,000 to provide grants under paragraph (1). (d) Certified CDFIs as lenders under the paycheck protection program Section 7(a)(36)(F) of the Small Business Act ( 15 U.S.C. 636(a)(36)(F) ) is amended by adding at the end the following: (vi) Certified CDFIs as lenders (I) Definition In this clause, the term certified community development financial institution means an entity that is certified as a community development financial institution by the Community Development Financial Institutions Fund established under section 104(a) of the Riegle Community Development and Regulatory Improvement Act of 1994 ( 12 U.S.C. 4703(a) ). (II) Lenders under program A certified community development financial institution shall have the authority to make and approve covered loans. . 2. Amendments to paycheck protection program and loan forgiveness (a) Covered loan period Section 7(a)(36)(A)(iii) of the Small Business Act ( 15 U.S.C. 636(a)(36)(A)(iii) ) is amended by striking June 30, 2020 and inserting December 31, 2020 . (b) Covered period for loan forgiveness and rehires Section 1106 of the CARES Act ( Public Law 116–136 ) is amended— (1) in subsection (a)(3), by striking 8-week and inserting 24-week ; and (2) in subsection (d)(5)(B), by striking June 30, 2020 each place that term appears and inserting December 31, 2020 . 3. Reporting on paycheck protection program loans (a) Definitions In this section— (1) the terms Administration and Administrator mean the Small Business Administration and the Administrator thereof, respectively; and (2) the terms covered loan and eligible recipient have the meanings given those terms in section 7(a)(36)(A) of the Small Business Act ( 15 U.S.C. 636(a)(36)(A) ). (b) Data collection With respect to each covered loan approved under section 7(a)(36) of the Small Business Act ( 15 U.S.C. 636(a)(36) ), the Administrator shall collect data on the eligible recipient of the covered loan, which shall include the gender, race, ethnicity, sex, age, Tribal affiliation, socioeconomic status, and disability status of each eligible recipient. (c) Publication (1) In general The Administrator shall make publicly available on the website of the Administration, in a disaggregated format, the data collected under subsection (b), which shall be updated not later than 7 days after the date on which a covered loan is approved. (2) Privacy considerations In publishing the data under paragraph (1), the Administrator shall take all necessary steps to protect the privacy of individuals whose personally identifiable information is included in that data. 4. Appropriations for CDFI Fund (a) Definitions In this section— (1) the term Administrator means the Administrator of the Fund; (2) the term community development financial institution has the meaning given the term in section 103 of the Riegle Community Development and Regulatory Improvement Act of 1994 ( 12 U.S.C. 4702 ); and (3) the term Fund means the Community Development Financial Institutions Fund established under section 104(a)(1) of the Community Development Banking and Financial Institutions Act of 1994 ( 12 U.S.C. 4703(a)(1) ). (b) Appropriation Subject to subsections (c) and (d), there is appropriated to the Fund, out of amounts in the Treasury not otherwise appropriated, $1,000,000,000 for fiscal year 2020, to remain available until expended. (c) Requirements In providing assistance from the Fund using amounts appropriated under subsection (b), the Administrator shall— (1) give priority to minority-led community development financial institutions or community development financial institutions with demonstrable records of serving communities of color to promote economic recovery, including operational support, due to the impact of the novel Coronavirus (COVID–19); (2) determine the criteria for the selection of organizations to receive awards from the Fund; and (3) make funds available not later than 60 days after the date of enactment of this Act. (d) Transfer Amounts appropriated under subsection (b) may be transferred to and merged with amounts provided for administrative expenses of the Fund under the heading Community development financial institutions fund program account , including administration of Fund programs and the New Markets Tax Credit Program. 5. Emergency designation (a) In general The amounts provided under this Act are designated as an emergency requirement pursuant to section 4(g) of the Statutory Pay-As-You-Go Act of 2010 ( 2 U.S.C. 933(g) ). (b) Designation in senate In the Senate, this Act is designated as an emergency requirement pursuant to section 4112(a) of H. Con. Res. 71 (115th Congress), the concurrent resolution on the budget for fiscal year 2018.