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Bill > HR7993


US HR7993

US HR7993
Promoting and Advancing Communities of Color through Inclusive Lending Act


summary

Introduced
08/07/2020
In Committee
08/07/2020
Crossed Over
Passed
Dead
12/31/2020

Introduced Session

116th Congress

Bill Summary

To support the efforts of Community Development Financial Institutions (CDFIs), minority CDFIs, and minority depository institutions to serve consumers, small businesses, and minority-owned businesses, especially in low-income and underserved communities, and for other purposes. This bill revises requirements applicable to Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs) and addresses lending during the COVID-19 (i.e., coronavirus disease 2019) pandemic. The bill establishes mandatory set-asides for (1) minority CDFIs under the CDFI Fund, and (2) CDFIs and MDIs under existing COVID-19 economic aid programs. The bill also establishes an impact bank designation for certain small depository institutions that lend primarily to low-income borrowers and establishes programs for impact banks and MDIs regarding investments, technical assistance, and federal government deposits. Finally, the Department of the Treasury must provide capital and interest-free loans to CDFIs, MDIs, impact banks, and credit unions that primarily serve low-income, underserved communities. The bill also reduces the CDFI Bond Guarantee Program minimum issuance amount from $100 million to $25 million for FY2020, and to $50 million for fiscal years thereafter.

AI Summary

This bill supports the efforts of Community Development Financial Institutions (CDFIs), minority CDFIs, and minority depository institutions to serve consumers, small businesses, and minority-owned businesses, especially in low-income and underserved communities. It establishes mandatory set-asides for minority CDFIs under the CDFI Fund and for CDFIs and minority depository institutions under existing COVID-19 economic aid programs. The bill also establishes an "impact bank" designation for certain small depository institutions that lend primarily to low-income borrowers and creates programs for impact banks and minority depository institutions regarding investments, technical assistance, and federal government deposits. Additionally, the Department of the Treasury must provide capital and interest-free loans to CDFIs, minority depository institutions, impact banks, and credit unions that primarily serve low-income, underserved communities. The bill also reduces the CDFI Bond Guarantee Program minimum issuance amount to provide more flexibility.

Committee Categories

Business and Industry

Sponsors (20)

Last Action

Referred to the Committee on Financial Services, and in addition to the Committee on Small Business, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned. (on 08/07/2020)

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