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

II 116TH CONGRESS 2D SESSION S. 3774 To amend the CARES Act to establish a Community Capital Investment Program, and for other purposes. IN THE SENATE OF THE UNITED STATES MAY 20, 2020 Mr. PETERS introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs 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 (Public Law 116– 4 136) is amended by adding at the end the following: 5 ‘‘(i) COMMUNITY CAPITAL INVESTMENT PROGRAM.— 6 ‘‘(1) IN GENERAL.—The Secretary shall estab- 7 lish a Community Capital Investment Program to 8 support the efforts of community investment institu- 9 tions to provide loans and forbearance for small 10 VerDate Sep 11 2014 23:11 Jun 11, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S3774.IS S3774 kjohnson on DSK79L0C42PROD with BILLS 2 •S 3774 IS businesses, minority-owned businesses, and con- 1 sumers, especially in low-income and underserved 2 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 ‘‘(iii) with respect to which no loan 10 payment is required under at least the end 11 of the 180-day period beginning on the 12 date the loan is made, or such longer term 13 as the Secretary may determine appro- 14 priate. 15 ‘‘(2) APPLICATION DATE.—The Secretary shall 16 begin accepting applications for capital investments 17 and loans under the Program not later than the end 18 of the 10-day period beginning on the date of enact- 19 ment of this subsection. 20 ‘‘(3) DIVIDEND RATE.—Any preferred stock or 21 other financial instrument issued to the Secretary in 22 exchange for a capital investment under the Pro- 23 gram shall carry a dividend or interest rate that 24 does not exceed— 25 VerDate Sep 11 2014 23:11 Jun 11, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S3774.IS S3774 kjohnson on DSK79L0C42PROD with BILLS 3 •S 3774 IS ‘‘(A) 1 percent, during the 3-year period 1 following the date on which such instrument is 2 issued; and 3 ‘‘(B) 3 percent, after the 3-year period de- 4 scribed under subparagraph (A). 5 ‘‘(4) RESTRICTIONS.—The restrictions de- 6 scribed under subsection (c)(3)(A)(ii) shall apply to 7 capital investments and loans made under this sub- 8 section. 9 ‘‘(5) AVAILABLE AMOUNTS.—In carrying out 10 the Program, the Secretary shall use amounts made 11 available under subsection (b), notwithstanding the 12 limitations on the use of such funds under para- 13 graphs (1) through (4) of such subsection (b). 14 ‘‘(6) DEFINITIONS.—In this subsection: 15 ‘‘(A) COMMUNITY INVESTMENT INSTITU- 16 TION.—The term ‘community investment insti- 17 tution’ means— 18 ‘‘(i) a community development finan- 19 cial institution, as defined in section 103 of 20 the Community Development Banking and 21 Financial Institutions Act of 1994 (12 22 U.S.C. 4702); 23 ‘‘(ii) an impact credit union; 24 ‘‘(iii) an impact bank; and 25 VerDate Sep 11 2014 23:11 Jun 11, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S3774.IS S3774 kjohnson on DSK79L0C42PROD with BILLS 4 •S 3774 IS ‘‘(iv) a minority depository institution, 1 as defined in section 308 of the Financial 2 Institutions Reform, Recovery, and En- 3 forcement Act of 1989 (12 U.S.C. 1463 4 note). 5 ‘‘(B) CREDIT UNION.—The term ‘credit 6 union’ means a State credit union and Federal 7 credit union, as defined in section 101 of the 8 Federal Credit Union Act (12 U.S.C. 1752). 9 ‘‘(C) IMPACT CREDIT UNION.—The term 10 ‘impact credit union’ means a credit union 11 that— 12 ‘‘(i) has total consolidated assets of 13 less than $10,000,000,000; and 14 ‘‘(ii) extends at least 50 percent of the 15 loans extended by the credit union to bor- 16 rowers who are low-income borrowers, as 17 determined by the Secretary. 18 ‘‘(D) IMPACT BANK.—The term ‘impact 19 bank’ means a depository institution, as defined 20 in section 3 of the Federal Deposit Insurance 21 Act (12 U.S.C. 1813) that— 22 ‘‘(i) has total consolidated assets of 23 less than $10,000,000,000; and 24 VerDate Sep 11 2014 23:11 Jun 11, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S3774.IS S3774 kjohnson on DSK79L0C42PROD with BILLS 5 •S 3774 IS ‘‘(ii) extends at least 50 percent of the 1 loans extended by the institution to bor- 2 rowers who are low-income borrowers, as 3 determined by the Secretary. 4 ‘‘(E) PROGRAM.—The term ‘Program’ 5 means the Community Capital Investment Pro- 6 gram.’’. 7 Æ VerDate Sep 11 2014 23:11 Jun 11, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\S3774.IS S3774 kjohnson on DSK79L0C42PROD with BILLS