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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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Bills Bills 116S3774Is Bills 116S3774Is
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Bills Bills 116S3774Is Bills 116S3774Is

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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/, SHA-256 dd52627269d786b240afb4796ef1c51594f63e0c9a87343050d27f9b6b5ddf43.

Full text

                                                                                                                                                                          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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                                                                         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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