What This Bill Does
This bill improves and extends a federal program that guarantees bonds (a type of loan) for community development financial institutions. These institutions are lenders that serve underserved populations and distressed communities. The bill updates rules for how much money the government can guarantee through this program.
Who It Affects
Community development financial institutions (lenders that focus on serving low-income and disadvantaged communities) are directly affected. The federal government, specifically the Secretary of the Treasury, must implement these changes. Congress receives reports on the program's results.
Key Provisions
- The federal government can guarantee bonds starting at $25,000,000 but cannot guarantee more than $1,000,000,000 total in any single year (Sec. 3)
- The program is extended for 4 years from when this bill becomes law (Sec. 3)
- The Secretary of the Treasury must report to Congress on how well the program works within 1 year and again within 3 years after the bill passes (Sec. 4)
What Changes
If this bill becomes law, the CDFI Bond Guarantee Program will continue operating beyond its current deadline. The minimum and maximum amounts the government can guarantee through the program are clearly set. The government must regularly report to Congress about whether the program successfully helps underserved communities.
Important Definitions
Community development financial institutions: Lenders that provide capital and financial services to underserved populations and distressed communities.
Effective Date
Not specified in bill text
II
118TH CONGRESS
1ST SESSION
S. 869
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.
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 fol-
lowing bill; which was read twice and referred to the Committee on Bank-
ing, Housing, and Urban Affairs
A BILL
To amend the Community Development Banking and Finan-
cial Institutions Act of 1994 to reauthorize and improve
the community development financial institutions bond
guarantee program, and for other purposes.
Be it enacted by the Senate and House of Representa-
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tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE.
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This Act may be cited as the ‘‘CDFI Bond Guarantee
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Program Improvement Act of 2023’’.
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SEC. 2. SENSE OF CONGRESS.
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It is the sense of Congress that the authority to guar-
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antee bonds under section 114A of the Community Devel-
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opment Banking and Financial Institutions Act of 1994
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(12 U.S.C. 4713a) (commonly referred to as the ‘‘CDFI
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Bond Guarantee Program’’) provides community develop-
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ment financial institutions with a sustainable source of
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long-term capital and furthers the mission of the Commu-
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nity Development Financial Institutions Fund (established
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under section 104(a) of such Act (12 U.S.C. 4703(a)) to
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increase economic opportunity and promote community
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development investments for underserved populations and
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distressed communities in the United States.
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SEC. 3. GUARANTEES FOR BONDS AND NOTES ISSUED FOR
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COMMUNITY OR ECONOMIC DEVELOPMENT
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PURPOSES.
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(a) IN GENERAL.—Section 114A of the Community
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Development Banking and Financial Institutions Act of
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1994 (12 U.S.C. 4713a) is amended—
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(1) in subsection (c)(2), by striking ‘‘, multi-
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plied by an amount equal to the outstanding prin-
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cipal balance of issued notes or bonds’’;
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(2) by amending subsection (e)(2) to read as
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follows:
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‘‘(2) LIMITATION ON GUARANTEE AMOUNT.—
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The Secretary may not guarantee any amount under
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•S 869 IS
the program equal to less than $25,000,000, but the
1
total of all such guarantees in any fiscal year may
2
not exceed $1,000,000,000.’’; and
3
(3) in subsection (k), by striking ‘‘September
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30, 2014’’ and inserting ‘‘the date that is 4 years
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after the date of enactment of the CDFI Bond
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Guarantee Program Improvement Act of 2023’’.
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(b) CLERICAL AMENDMENT.—The table of contents
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in section 1(b) of the Riegle Community Development and
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Regulatory Improvement Act of 1994 (Public Law 103–
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315; 108 Stat. 2160) is amended by inserting after the
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item relating to section 114 the following:
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‘‘Sec. 114A. Guarantees for bonds and notes issued for community or economic
development purposes.’’.
SEC. 4. REPORT ON THE CDFI BOND GUARANTEE PRO-
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GRAM.
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Not later than 1 year after the date of enactment
15
of this Act, and not later than 3 years after such date
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of enactment, the Secretary of the Treasury shall issue
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a report to the Committee on Banking, Housing, and
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Urban Affairs of the Senate and the Committee on Finan-
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cial Services of the House of Representatives on the effec-
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tiveness of the CDFI bond guarantee program established
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under section 114A of the Community Development Bank-
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ing and Financial Institutions Act of 1994 (12 U.S.C.
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4713a).
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Æ
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