CDFI Bond Guarantee Program Improvement Act of 2023

Bill: 118-s-869
Sponsor: full_name: Sen. Smith, Tina [D-MN]
Introduced: 2023-03-16
Policy area: Finance and Financial Sector
Subjects: Banking and financial institutions regulation

Business investment and capital

Community Development Financial Institutions Fund

Community life and organization

Congressional oversight

Credit and credit markets

Government information and archives

Government lending and loan guarantees

Government studies and investigations

Housing and community development funding

Securities
Latest action: action_date: 2024-02-01
text: Committee on Banking, Housing, and Urban Affairs. Hearings held.

Summaries:
action_date: 2023-03-16
action_desc: Introduced in Senate
text: <p><strong>CDFI Bond Guarantee Program Improvement Act of 2023 </strong></p> <p>This bill reauthorizes for four years and otherwise revises the Community Development Financial Institutions (CDFI) Bond Guarantee Program. Specifically, the bill (1) reduces the CDFI Bond Guarantee Program minimum issuance amount from $100 million to $25 million, (2) eliminates the cap on the annual number of guarantees, and (3) revises the amount to be held in a CDFI's relending account. </p> <p>(CDFIs are financial institutions serving low-income communities. Designation as a CDFI allows an institution to participate in programs such as the CDFI Bond Guarantee Program. The program provides financing to CDFIs through federal credit subsidies that allow CDFIs to issue bonds.)</p>

tv_txt: II 118th CONGRESS 1st Session S. 869 IN THE SENATE OF THE UNITED STATES March 16, 2023 Ms. Smith (for herself, Mr. Rounds , Ms. Lummis , Mr. Daines , Mr. Moran , Ms. Klobuchar , Mr. Menendez , and Mr. Warner ) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL To amend the Community Development Banking and Financial Institutions Act of 1994 to reauthorize and improve the community development financial institutions bond guarantee program, and for other purposes.

1. Short title This Act may be cited as the CDFI Bond Guarantee Program Improvement Act of 2023 . 2. Sense of Congress It is the sense of Congress that the authority to guarantee bonds under section 114A of the Community Development Banking and Financial Institutions Act of 1994 ( 12 U.S.C. 4713a ) (commonly referred to as the CDFI Bond Guarantee Program ) provides community development financial institutions with a sustainable source of long-term capital and furthers the mission of the Community Development Financial Institutions Fund (established under section 104(a) of such Act ( 12 U.S.C. 4703(a) ) to increase economic opportunity and promote community development investments for underserved populations and distressed communities in the United States. 3. Guarantees for bonds and notes issued for community or economic development purposes (a) In general Section 114A of the Community Development Banking and Financial Institutions Act of 1994 ( 12 U.S.C. 4713a ) is amended— (1) in subsection (c)(2), by striking , multiplied by an amount equal to the outstanding principal balance of issued notes or bonds ; (2) by amending subsection (e)(2) to read as follows: (2) Limitation on guarantee amount The Secretary may not guarantee any amount under the program equal to less than $25,000,000, but the total of all such guarantees in any fiscal year may not exceed $1,000,000,000. ; and (3) in subsection (k), by striking September 30, 2014 and inserting the date that is 4 years after the date of enactment of the CDFI Bond Guarantee Program Improvement Act of 2023 . (b) Clerical amendment The table of contents in section 1(b) of the Riegle Community Development and Regulatory Improvement Act of 1994 ( Public Law 103–315 ; 108 Stat. 2160) is amended by inserting after the item relating to section 114 the following: Sec. 114A. Guarantees for bonds and notes issued for community or economic development purposes. . 4. Report on the CDFI bond guarantee program Not later than 1 year after the date of enactment of this Act, and not later than 3 years after such date of enactment, the Secretary of the Treasury shall issue a report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives on the effectiveness of the CDFI bond guarantee program established under section 114A of the Community Development Banking and Financial Institutions Act of 1994 ( 12 U.S.C. 4713a ).