To amend the CARES Act to establish a Community Capital Investment Program, and for other purposes.

I 116TH CONGRESS 2D SESSION H. R. 6868 To amend the CARES Act to establish a Community Capital Investment Program, and for other purposes. IN THE HOUSE OF REPRESENTATIVES MAY 14, 2020 Mr. GREEN of Texas introduced the following bill; which was referred to the Committee on Financial Services A BILL To amend the CARES Act to establish a Community Capital Investment Program, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. COMMUNITY CAPITAL INVESTMENT PROGRAM. 3 Section 4003 of the CARES Act (15 U.S.C. 9042) 4 is amended by adding at the end the following: 5 ‘‘(i) COMMUNITY CAPITAL INVESTMENT PROGRAM.— 6 ‘‘(1) IN GENERAL.—The Secretary of the 7 Treasury shall establish a Community Capital In- 8 vestment Program (the ‘Program’) to support the ef- 9 forts of community investment institutions to pro- 10 VerDate Sep 11 2014 15:48 Jun 03, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H6868.IH H6868 pamtmann on DSKBC07HB2PROD with BILLS 2 •HR 6868 IH vide loans and forbearance for small businesses, mi- 1 nority-owned businesses, and consumers, especially 2 in low-income and underserved communities, by— 3 ‘‘(A) providing direct capital investments 4 in community investment institutions; and 5 ‘‘(B) providing loans to community invest- 6 ment institutions— 7 ‘‘(i) that are interest-free loans; 8 ‘‘(ii) that have a loan term of 5 years; 9 and 10 ‘‘(iii) with respect to which no loan 11 payment is required until at least the end 12 of the 6-month period beginning on the 13 date the loan is made, or such longer term 14 as the Secretary may determine appro- 15 priate. 16 ‘‘(2) APPLICATION DATE.—The Secretary shall 17 begin accepting applications for capital investments 18 and loans under the Program not later than the end 19 of the 10-day period beginning on the date of enact- 20 ment of this subsection. 21 ‘‘(3) DIVIDEND RATE.—Any preferred stock or 22 other financial instrument issued to the Secretary in 23 exchange for a capital investment under the Pro- 24 VerDate Sep 11 2014 15:48 Jun 03, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H6868.IH H6868 pamtmann on DSKBC07HB2PROD with BILLS 3 •HR 6868 IH gram shall carry a dividend or interest rate that 1 does not exceed 1 percent. 2 ‘‘(4) RESTRICTIONS.—The restrictions de- 3 scribed under subsection (c)(3)(A)(ii) shall apply to 4 capital investments and loans made under this sub- 5 section. 6 ‘‘(5) AVAILABLE AMOUNTS.—In carrying out 7 the Program, the Secretary shall use amounts made 8 available under subsection (b), notwithstanding the 9 limitations on the use of such funds under para- 10 graphs (1) through (4) of such subsection (b). 11 ‘‘(6) MDI SET-ASIDE.—At least $3,000,000,000 12 of the direct capital investments and loans made by 13 the Secretary under the Program shall be made to 14 minority depository institutions. 15 ‘‘(7) TREATMENT OF CAPITAL INVESTMENTS.— 16 In making any capital investment under the Pro- 17 gram, the Secretary shall ensure that the terms of 18 the investment are designed to ensure the invest- 19 ment receives Tier 1 capital treatment. 20 ‘‘(8) DEFINITIONS.—In this subsection: 21 ‘‘(A) COMMUNITY INVESTMENT INSTITU- 22 TION.—The term ‘community investment insti- 23 tution’ means— 24 VerDate Sep 11 2014 15:48 Jun 03, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H6868.IH H6868 pamtmann on DSKBC07HB2PROD with BILLS 4 •HR 6868 IH ‘‘(i) a community development finan- 1 cial institution, as defined under section 2 103 of the Riegle Community Development 3 and Regulatory Improvement Act of 1994 4 (12 U.S.C. 4702); 5 ‘‘(ii) an impact credit union; 6 ‘‘(iii) an impact bank; and 7 ‘‘(iv) a minority depository institution, 8 as defined under section 308 of the Finan- 9 cial Institutions Reform, Recovery, and 10 Enforcement Act of 1989 (12 U.S.C. 1463 11 note). 12 ‘‘(B) CREDIT UNION.—The term ‘credit 13 union’ has the meaning given the terms State 14 credit union and Federal credit union under 15 section 101 of the Federal Credit Union Act 16 (12 U.S.C. 1752). 17 ‘‘(C) IMPACT CREDIT UNION.—The term 18 ‘impact credit union’ means a credit union 19 that— 20 ‘‘(i) has total consolidated assets of 21 less than $10,000,000,000; and 22 ‘‘(ii) extends at least 50 percent of the 23 loans extended by the credit union to bor- 24 VerDate Sep 11 2014 15:48 Jun 03, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H6868.IH H6868 pamtmann on DSKBC07HB2PROD with BILLS 5 •HR 6868 IH rowers who are low-income borrowers, as 1 determined by the Secretary. 2 ‘‘(D) IMPACT BANK.—The term ‘impact 3 bank’ means a depository institution (as defined 4 under section 3 of the Federal Deposit Insur- 5 ance Act) that— 6 ‘‘(i) has total consolidated assets of 7 less than $10,000,000,000; and 8 ‘‘(ii) extends at least 50 percent of the 9 loans extended by the institution to bor- 10 rowers who are low-income borrowers, as 11 determined by the Secretary.’’. 12 Æ VerDate Sep 11 2014 15:48 Jun 03, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\H6868.IH H6868 pamtmann on DSKBC07HB2PROD with BILLS