To amend the CARES Act to add requirements for the Main Street Lending Program related to non-profit organizations, small businesses, minority depository institutions, and community development financial institutions, and for other purposes.

I 116TH CONGRESS 2D SESSION H. R. 6892 To amend the CARES Act to add requirements for the Main Street Lending Program related to non-profit organizations, small businesses, minority depository institutions, and community development financial institutions, and for other purposes. IN THE HOUSE OF REPRESENTATIVES MAY 15, 2020 Mrs. BEATTY introduced the following bill; which was referred to the Committee on Financial Services A BILL To amend the CARES Act to add requirements for the Main Street Lending Program related to non-profit orga- nizations, small businesses, minority depository institu- tions, and community development financial institutions, 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. MAIN STREET LENDING PROGRAM REQUIRE- 3 MENTS. 4 (a) IN GENERAL.—Section 4003(c)(3)(D)(ii) of the 5 CARES Act (15 U.S.C. 9042(c)(3)(D)(ii)) is amended— 6 VerDate Sep 11 2014 16:28 Jun 05, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H6892.IH H6892 pamtmann on DSKBC07HB2PROD with BILLS 2 •HR 6892 IH (1) by striking ‘‘Nothing in this subparagraph 1 shall limit the discretion of the Board of Governors 2 of the Federal Reserve System to’’ and inserting the 3 following: 4 ‘‘(I) IN GENERAL.—The Board of 5 Governors of the Federal Reserve Sys- 6 tem shall’’; and 7 (2) by adding at the end the following: 8 ‘‘(II) REQUIREMENTS.—In car- 9 rying out subclause (I), the Board of 10 Governors of the Federal Reserve Sys- 11 tem— 12 ‘‘(aa) shall make non-profit 13 organizations and institutions of 14 higher education (as such term is 15 defined in section 101(a) of the 16 Higher Education Act of 1965 17 (20 U.S.C. 1001(a))) eligible for 18 any program or facility estab- 19 lished under such subclause; and 20 ‘‘(bb) shall— 21 ‘‘(AA) create a low-cost 22 loan option tailored to the 23 unique needs of non-profit 24 organizations, including the 25 VerDate Sep 11 2014 16:28 Jun 05, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H6892.IH H6892 pamtmann on DSKBC07HB2PROD with BILLS 3 •HR 6892 IH ability to defer payments 1 without capitalization of in- 2 terest; 3 ‘‘(BB) solely for non- 4 profit organizations that 5 predominantly serve low-in- 6 come communities (as deter- 7 mined by the Board of Gov- 8 ernors), have the loans for- 9 given by the Secretary of the 10 Treasury for a similar pur- 11 pose to maintain payroll and 12 operations provided under 13 the Paycheck Protection 14 Program, notwithstanding 15 subsection (d)(3); and 16 ‘‘(CC) make any orga- 17 nization that meets the re- 18 quirements of section 19 501(c)(4) of the Internal 20 Revenue Code of 1986 eligi- 21 ble for any facility, but only 22 if such organization has not 23 made and will not make a 24 contribution, expenditure, 25 VerDate Sep 11 2014 16:28 Jun 05, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H6892.IH H6892 pamtmann on DSKBC07HB2PROD with BILLS 4 •HR 6892 IH independent expenditure, or 1 electioneering communica- 2 tion (within the meanings of 3 such terms under the Fed- 4 eral Election Campaign Act 5 of 1971), and has not un- 6 dertaken and will not under- 7 take similar campaign fi- 8 nance activities in State and 9 local elections;’’. 10 (b) DEADLINE.—Not later than the end of the 5-day 11 period beginning on the date of enactment of this Act, the 12 Board of Governors of the Federal Reserve System shall 13 issue such rules or take such other actions as may be nec- 14 essary to implement the requirements made by the amend- 15 ments made by this section. 16 SEC. 2. OPTIONS FOR SMALL BUSINESSES AND NON-PROF- 17 ITS UNDER THE MAIN STREET LENDING PRO- 18 GRAM. 19 (a) IN GENERAL.—Section 4003(c)(3)(D)(ii)(II) of 20 the CARES Act (15 U.S.C. 9042(c)(3)(D)(ii)(II)), as 21 added by section 1, if further amended by adding at the 22 end the following: 23 ‘‘(cc) shall provide at least 24 one low-cost loan option that 25 VerDate Sep 11 2014 16:28 Jun 05, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H6892.IH H6892 pamtmann on DSKBC07HB2PROD with BILLS 5 •HR 6892 IH small businesses, small non-prof- 1 its, and small institutions of 2 higher education (as such term is 3 defined in section 101(a) of the 4 Higher Education Act of 1965 5 (20 U.S.C. 1001(a))) are eligible 6 for that does not have a min- 7 imum loan size and includes the 8 ability to defer payments without 9 capitalization of interest, and, 10 solely for small non-profit organi- 11 zations that predominantly serve 12 low-income communities, as de- 13 termined by the Federal Reserve, 14 have the loans forgiven by the 15 Department of the Treasury for 16 a similar purpose to maintain 17 payroll and operations provided 18 under the Paycheck Protection 19 Program, notwithstanding section 20 4003(d)(3) of the CARES Act;’’. 21 (b) DEADLINE.—Not later than the end of the 5-day 22 period beginning on the date of enactment of this Act, the 23 Board of Governors of the Federal Reserve System shall 24 issue such rules or take such other actions as may be nec- 25 VerDate Sep 11 2014 16:28 Jun 05, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H6892.IH H6892 pamtmann on DSKBC07HB2PROD with BILLS 6 •HR 6892 IH essary to implement the requirements made by the amend- 1 ments made by this section. 2 SEC. 3. TREATMENT OF CDFIS UNDER THE MAIN STREET 3 LENDING PROGRAM. 4 (a) IN GENERAL.—Section 4003(c)(3)(D)(ii)(II) of 5 the CARES Act (15 U.S.C. 9042(c)(3)(D)(ii)(II)), as 6 amended by section 2, is further amended by adding at 7 the end the following: 8 ‘‘(dd) shall authorize com- 9 munity development financial in- 10 stitutions to be eligible lenders 11 under such program or facility; 12 and 13 ‘‘(ee) shall provide re- 14 sources, webinars, and technical 15 assistance (using funds from 16 such program or facility) to mi- 17 nority depository institutions and 18 community development financial 19 institutions that wish to be eligi- 20 ble lenders under such program 21 or facility.’’. 22 (b) DEADLINE.—Not later than the end of the 5-day 23 period beginning on the date of enactment of this Act, the 24 Board of Governors of the Federal Reserve System shall 25 VerDate Sep 11 2014 16:28 Jun 05, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H6892.IH H6892 pamtmann on DSKBC07HB2PROD with BILLS 7 •HR 6892 IH issue such rules or take such other actions as may be nec- 1 essary to implement the requirements made by the amend- 2 ments made by this section. 3 Æ VerDate Sep 11 2014 16:28 Jun 05, 2020 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6301 E:\BILLS\H6892.IH H6892 pamtmann on DSKBC07HB2PROD with BILLS