S. 3774 (116th Congress) — To amend the CARES Act to establish a Community Capital Investment Program
Summary
S. 3774 was introduced in the Senate on May 20, 2020 by Mr. Peters and referred to the Committee on Banking, Housing, and Urban Affairs. Its stated purpose is to amend the CARES Act to establish a Community Capital Investment Program. The bill adds subsection (i) to section 4003 of the CARES Act, under which the Secretary shall establish a program to support community investment institutions that provide loans and forbearance for small businesses, minority-owned businesses, and consumers, by providing direct capital investments and interest-free loans with a loan term of 5 years. Applications are to be accepted not later than the end of the 10-day period beginning on the date of enactment.
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“S. 3774 (116th Congress) — To amend the CARES Act to establish a Community Capital Investment Program.”
Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/bills-bills-116s3774is-bills-116s3774is/
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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.
1 Be it enacted by the Senate and House of Representa-
2 tives of the United States of America in Congress assembled,
3 SECTION 1. COMMUNITY CAPITAL INVESTMENT PROGRAM.
4 Section 4003 of the CARES Act (Public Law 116–
5 136) is amended by adding at the end the following:
6 ‘‘(i) COMMUNITY CAPITAL INVESTMENT PROGRAM.—
7 ‘‘(1) IN GENERAL.—The Secretary shall estab-
8 lish a Community Capital Investment Program to
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9 support the efforts of community investment institu-
10 tions to provide loans and forbearance for small
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1 businesses, minority-owned businesses, and con-
2 sumers, especially in low-income and underserved
3 communities, by—
4 ‘‘(A) providing direct capital investments
5 in community investment institutions; and
6 ‘‘(B) providing loans to community invest-
7 ment institutions—
8 ‘‘(i) that are interest-free loans;
9 ‘‘(ii) that have a loan term of 5 years;
10 ‘‘(iii) with respect to which no loan
11 payment is required under at least the end
12 of the 180-day 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 gram shall carry a dividend or interest rate that
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25 does not exceed—
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3
1 ‘‘(A) 1 percent, during the 3-year period
2 following the date on which such instrument is
3 issued; and
4 ‘‘(B) 3 percent, after the 3-year period de-
5 scribed under subparagraph (A).
6 ‘‘(4) RESTRICTIONS.—The restrictions de-
7 scribed under subsection (c)(3)(A)(ii) shall apply to
8 capital investments and loans made under this sub-
9 section.
10 ‘‘(5) AVAILABLE AMOUNTS.—In carrying out
11 the Program, the Secretary shall use amounts made
12 available under subsection (b), notwithstanding the
13 limitations on the use of such funds under para-
14 graphs (1) through (4) of such subsection (b).
15 ‘‘(6) DEFINITIONS.—In this subsection:
16 ‘‘(A) COMMUNITY INVESTMENT INSTITU-
17 TION.—The term ‘community investment insti-
18 tution’ means—
19 ‘‘(i) a community development finan-
20 cial institution, as defined in section 103 of
21 the Community Development Banking and
22 Financial Institutions Act of 1994 (12
23 U.S.C. 4702);
24 ‘‘(ii) an impact credit union;
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25 ‘‘(iii) an impact bank; and
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1 ‘‘(iv) a minority depository institution,
2 as defined in section 308 of the Financial
3 Institutions Reform, Recovery, and En-
4 forcement Act of 1989 (12 U.S.C. 1463
5 note).
6 ‘‘(B) CREDIT UNION.—The term ‘credit
7 union’ means a State credit union and Federal
8 credit union, as defined in section 101 of the
9 Federal Credit Union Act (12 U.S.C. 1752).
10 ‘‘(C) IMPACT CREDIT UNION.—The term
11 ‘impact credit union’ means a credit union
12 that—
13 ‘‘(i) has total consolidated assets of
14 less than $10,000,000,000; and
15 ‘‘(ii) extends at least 50 percent of the
16 loans extended by the credit union to bor-
17 rowers who are low-income borrowers, as
18 determined by the Secretary.
19 ‘‘(D) IMPACT BANK.—The term ‘impact
20 bank’ means a depository institution, as defined
21 in section 3 of the Federal Deposit Insurance
22 Act (12 U.S.C. 1813) that—
23 ‘‘(i) has total consolidated assets of
24 less than $10,000,000,000; and
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1 ‘‘(ii) extends at least 50 percent of the
2 loans extended by the institution to bor-
3 rowers who are low-income borrowers, as
4 determined by the Secretary.
5 ‘‘(E) PROGRAM.—The term ‘Program’
6 means the Community Capital Investment Pro-
7 gram.’’.
Æ
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