To require the Board of Governors of the Federal Reserve System to provide zero-interest loans to minority depository institutions and community development financial institutions to combat COVID-19, and for other purposes.

Bill: 116-hr-6381
Sponsor: full_name: Rep. Green, Al [D-TX-9]
Introduced: 2020-03-24
Policy area: Finance and Financial Sector
Subjects: Bank accounts, deposits, capital

Cardiovascular and respiratory health

Economic performance and conditions

Emergency medical services and trauma care

Government lending and loan guarantees

Infectious and parasitic diseases

Interest, dividends, interest rates

Minority and disadvantaged businesses

Poverty and welfare assistance
Latest action: action_date: 2020-03-24
text: Referred to the House Committee on Financial Services.

Summaries:
action_date: 2020-03-24
action_desc: Introduced in House
text: <p>This bill requires the Federal Reserve Board to provide interest-free loans to small minority depository institutions and small community development financial institutions during the COVID-19 (i.e., coronavirus disease 2019) emergency period. The board must charge interest on these loans beginning 18 months after the end of the emergency period.</p>

tv_txt: I 116th CONGRESS 2d Session H. R. 6381 IN THE HOUSE OF REPRESENTATIVES March 24, 2020 Mr. Green of Texas (for himself, Ms. Garcia of Texas , Mr. Meeks , Mr. Cleaver , and Mrs. Beatty ) introduced the following bill; which was referred to the Committee on Financial Services A BILL To require the Board of Governors of the Federal Reserve System to provide zero-interest loans to minority depository institutions and community development financial institutions to combat COVID–19, and for other purposes.

1. Loans to MDIs and CDFIs (a) In general During the COVID–19 emergency period, the Board of Governors of the Federal Reserve System shall provide zero-interest loans to minority depository institutions and community development financial institutions to help mitigate the economic impact of COVID–19 in low-income, underserved communities. (b) Asset limitation Subsection (a) shall only apply to minority depository institutions and community development financial institutions with less than $1,000,000,000 in assets. (c) Interest To resume 18 months after pandemic Notwithstanding subsection (a), the Board of Governors shall charge interest on loans made pursuant to subsection (a) after the end of the 18-month period beginning at the end of the COVID–19 emergency period, at a rate to be determined by the Board of Governors based on the interest amount charged under the discount window lending programs. (d) COVID–19 pandemic defined In this section, the term COVID–19 emergency period means the period that begins upon the date of the enactment of this Act and ends upon the date of the termination by the Federal Emergency Management Administration of the emergency declared on March 13, 2020, by the President under the Robert T. Stafford Disaster Relief and Emergency Assistance Act ( 42 U.S.C. 4121 et seq.) relating to the Coronavirus Disease 2019 (COVID-19) pandemic.