Preserving Equity on Main Street Act of 2020

II 116TH CONGRESS 2D SESSION S. 4670 To amend the CARES Act to permit the Secretary of the Treasury to purchase, or to enable the purchase of, preferred equity positions in commercial real estate entities, and for other purposes. IN THE SENATE OF THE UNITED STATES SEPTEMBER 23, 2020 Mr. MORAN (for himself, Mrs. SHAHEEN, Mr. ROUNDS, Mr. BLUNT, and Mr. TILLIS) 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 permit the Secretary of the Treasury to purchase, or to enable the purchase of, pre- ferred equity positions in commercial real estate entities, 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. SHORT TITLE. 3 This Act may be cited as the ‘‘Preserving Equity on 4 Main Street Act of 2020’’. 5 VerDate Sep 11 2014 23:15 Oct 10, 2020 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S4670.IS S4670 pbinns on DSKJLVW7X2PROD with BILLS 2 •S 4670 IS SEC. 2. COMMERCIAL REAL ESTATE PREFERRED EQUITY 1 INVESTMENTS. 2 Section 4003(b)(4) of the CARES Act (15 U.S.C. 3 9042(b)(4)) is amended— 4 (1) by redesignating subparagraphs (A), (B), 5 and (C) as clauses (i), (ii), and (iii), respectively; 6 (2) by inserting ‘‘(A)’’ after ‘‘(4)’’; 7 (3) in subparagraph (A), as so redesignated— 8 (A) in clause (ii), as so redesignated, by 9 striking ‘‘or’’ at the end; 10 (B) in clause (iii), as so redesignated, by 11 striking the period at the end and inserting ‘‘; 12 or’’; and 13 (C) by adding at the end the following: 14 ‘‘(iv) purchasing preferred equity positions 15 in commercial real estate companies that re- 16 quire capital to satisfy outstanding debt obliga- 17 tions, which the Secretary, acting alone or in 18 concert with the Board of Governors of the 19 Federal Reserve System, may achieve by— 20 ‘‘(I) directly purchasing those posi- 21 tions; or 22 ‘‘(II) providing full or partial guaran- 23 tees of those positions to financial institu- 24 tions to enable the financial institutions to 25 purchase those positions.’’; and 26 VerDate Sep 11 2014 23:15 Oct 10, 2020 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S4670.IS S4670 pbinns on DSKJLVW7X2PROD with BILLS 3 •S 4670 IS (4) by adding at the end the following: 1 ‘‘(B) If the appropriate Federal banking agency 2 (as that term is defined in section 3 of the Federal 3 Deposit Insurance Act (12 U.S.C. 1813)) or the Na- 4 tional Credit Union Administration Board applies a 5 risk-based capital requirement of the applicable 6 agency to a preferred equity position for which there 7 is a full or partial guarantee provided under sub- 8 paragraph (A)(iv)(II), that position shall receive a 9 risk weight of zero percent for the purposes of the 10 application of that requirement.’’. 11 Æ VerDate Sep 11 2014 23:15 Oct 10, 2020 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\S4670.IS S4670 pbinns on DSKJLVW7X2PROD with BILLS