Preserving Equity on Main Street Act of 2020

Bill: 116-s-4670
Sponsor: full_name: Sen. Moran, Jerry [R-KS]
Introduced: 2020-09-23
Policy area: Commerce
Subjects: Business investment and capital

Cardiovascular and respiratory health

Emergency medical services and trauma care

Government lending and loan guarantees

Infectious and parasitic diseases

Real estate business

Securities
Latest action: action_date: 2020-09-23
text: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Summaries:
action_date: 2020-09-23
action_desc: Introduced in Senate
text: <p><b>Preserving Equity on Main Street Act of 2020</b></p> <p>This bill authorizes the Department of the Treasury to directly purchase, or provide guarantees to enable the purchase of, preferred equity positions in commercial real estate companies that require capital to satisfy outstanding debt obligations. Treasury may take these actions in order to provide assistance related to losses incurred as a result of COVID-19 (i.e., coronavirus disease 2019).</p>

tv_txt: II 116th CONGRESS 2d Session S. 4670 IN THE SENATE OF THE UNITED STATES September 23, 2020 Mr. Moran (for himself, Mrs. Shaheen , Mr. Rounds , Mr. Blunt , and Mr. Tillis ) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL To amend the CARES Act to permit the Secretary of the Treasury to purchase, or to enable the purchase of, preferred equity positions in commercial real estate entities, and for other purposes.

1. Short title This Act may be cited as the Preserving Equity on Main Street Act of 2020 . 2. Commercial real estate preferred equity investments Section 4003(b)(4) of the CARES Act ( 15 U.S.C. 9042(b)(4) ) is amended— (1) by redesignating subparagraphs (A), (B), and (C) as clauses (i), (ii), and (iii), respectively; (2) by inserting (A) after (4) ; (3) in subparagraph (A), as so redesignated— (A) in clause (ii), as so redesignated, by striking or at the end; (B) in clause (iii), as so redesignated, by striking the period at the end and inserting ; or ; and (C) by adding at the end the following: (iv) purchasing preferred equity positions in commercial real estate companies that require capital to satisfy outstanding debt obligations, which the Secretary, acting alone or in concert with the Board of Governors of the Federal Reserve System, may achieve by— (I) directly purchasing those positions; or (II) providing full or partial guarantees of those positions to financial institutions to enable the financial institutions to purchase those positions. ; and (4) by adding at the end the following: (B) If the appropriate Federal banking agency (as that term is defined in section 3 of the Federal Deposit Insurance Act ( 12 U.S.C. 1813 )) or the National Credit Union Administration Board applies a risk-based capital requirement of the applicable agency to a preferred equity position for which there is a full or partial guarantee provided under subparagraph (A)(iv)(II), that position shall receive a risk weight of zero percent for the purposes of the application of that requirement. .