[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5322 Referred in Senate (RFS)]
<DOC>
116th CONGRESS
2d Session
H. R. 5322
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 22, 2020
Received; read twice and referred to the Committee on Banking, Housing,
and Urban Affairs
_______________________________________________________________________
AN ACT
To establish or modify requirements relating to minority depository
institutions, community development financial institutions, and impact
banks, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Ensuring Diversity
in Community Banking Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Sense of Congress on funding the loan-loss reserve fund for
small dollar loans.
Sec. 3. Definitions.
Sec. 4. Inclusion of women's banks in the definition of minority
depository institution.
Sec. 5. Establishment of impact bank designation.
Sec. 6. Minority Depositories Advisory Committees.
Sec. 7. Federal deposits in minority depository institutions.
Sec. 8. Minority Bank Deposit Program.
Sec. 9. Diversity report and best practices.
Sec. 10. Investments in minority depository institutions and impact
banks.
Sec. 11. Report on covered mentor-protege programs.
Sec. 12. Custodial deposit program for covered minority depository
institutions and impact banks.
Sec. 13. Streamlined community development financial institution
applications and reporting.
Sec. 14. Task force on lending to small business concerns.
Sec. 15. Discretionary surplus funds.
Sec. 16. Determination of Budgetary Effects.
SEC. 2. SENSE OF CONGRESS ON FUNDING THE LOAN-LOSS RESERVE FUND FOR
SMALL DOLLAR LOANS.
The sense of Congress is the following:
(1) The Community Development Financial Institutions Fund
(the ``CDFI Fund'') is an agency of the Department of the
Treasury, and was established by the Riegle Community
Development and Regulatory Improvement Act of 1994. The mission
of the CDFI Fund is ``to expand economic opportunity for
underserved people and communities by supporting the growth and
capacity of a national network of community development
lenders, investors, and financial service providers''. A
community development financial institution (a ``CDFI'') is a
specialized financial institution serving low-income
communities and a Community Development Entity (a ``CDE'') is a
domestic corporation or partnership that is an intermediary
vehicle for the provision of loans, investments, or financial
counseling in low-income communities. The CDFI Fund certifies
CDFIs and CDEs. Becoming a certified CDFI or CDE allows
organizations to participate in various CDFI Fund programs as
follows:
(A) The Bank Enterprise Award Program, which
provides FDIC-insured depository institutions awards
for a demonstrated increase in lending and investments
in distressed communities and CDFIs.
(B) The CDFI Program, which provides Financial and
Technical Assistance awards to CDFIs to reinvest in the
CDFI, and to build the capacity of the CDFI, including
financing product development and loan loss reserves.
(C) The Native American CDFI Assistance Program,
which provides CDFIs and sponsoring entities Financial
and Technical Assistance awards to increase lending and
grow the number of CDFIs owned by Native Americans to
help build capacity of such CDFIs.
(D) The New Market Tax Credit Program, which
provides tax credits for making equity investments in
CDEs that stimulate capital investments in low-income
communities.
(E) The Capital Magnet Fund, which provides awards
to CDFIs and nonprofit affordable housing organizations
to finance affordable housing solutions and related
economic development activities.
(F) The Bond Guarantee Program, a source of long-
term, patient capital for CDFIs to expand lending and
investment capacity for community and economic
development purposes.
(2) The Department of the Treasury is authorized to create
multi-year grant programs designed to encourage low-to-moderate
income individuals to establish accounts at federally insured
banks, and to improve low-to-moderate income individuals'
access to such accounts on reasonable terms.
(3) Under this authority, grants to participants in CDFI
Fund programs may be used for loan-loss reserves and to
establish small-dollar loan programs by subsidizing related
losses. These grants also allow for the providing recipients
with the financial counseling and education necessary to
conduct transactions and manage their accounts. These loans
provide low-cost alternatives to payday loans and other
nontraditional forms of financing that often impose excessive
interest rates and fees on borrowers, and lead millions of
Americans to fall into debt traps. Small-dollar loans can only
be made pursuant to terms, conditions, and practices that are
reasonable for the individual consumer obtaining the loan.
(4) Program participation is restricted to eligible
institutions, which are limited to organizations listed in
section 501(c)(3) of the Internal Revenue Code and exempt from
tax under 501(a) of such Code, federally insured depository
institutions, community development financial institutions and
State, local, or Tribal government entities.
(5) Since its founding, the CDFI Fund has awarded over
$3,300,000,000 to CDFIs and CDEs, allocated $54,000,000,000 in
tax credits, and $1,510,000,000 in bond guarantees. According
to the CDFI Fund, some programs attract as much as $10 in
private capital for every $1 invested by the CDFI Fund. The
Administration and the Congress should prioritize appropriation
of funds for the loan loss reserve fund and technical
assistance programs administered by the Community Development
Financial Institution Fund.
SEC. 3. DEFINITIONS.
In this Act:
(1) Community development financial institution.--The term
``community development financial institution'' has the meaning
given under section 103 of the Riegle Community Development and
Regulatory Improvement Act of 1994 (12 U.S.C. 4702).
(2) Minority depository institution.--The term ``minority
depository institution'' has the meaning given under section
308 of the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989 (12 U.S.C. 1463 note), as amended by
this Act.
SEC. 4. INCLUSION OF WOMEN'S BANKS IN THE DEFINITION OF MINORITY
DEPOSITORY INSTITUTION.
Section 308(b)(1) of the Financial Institutions Reform, Recovery,
and Enforcement Act of 1989 (12 U.S.C. 1463 note) is amended--
(1) by redesignating subparagraphs (A), (B), and (C) as
clauses (i), (ii), and (iii), respectively;
(2) by striking ``means any'' and inserting the following:
``means--
``(A) any''; and
(3) in clause (iii) (as so redesignated), by striking the
period at the end and inserting ``; or''; and
(4) by inserting at the end the following new subparagraph:
``(B) any bank described in clause (i), (ii), or
(iii) of section 19(b)(1)(A) of the Federal Reserve
Act--
``(i) more than 50 percent of the
outstanding shares of which are held by 1 or
more women; and
``(ii) the majority of the directors on the
board of directors of which are women.''.
SEC. 5. ESTABLISHMENT OF IMPACT BANK DESIGNATION.
(a) In General.--Each Federal banking agency shall establish a
program under which a depository institution with total consolidated
assets of less than $10,000,000,000 may elect to be designated as an
impact bank if the total dollar value of the loans extended by such
depository institution to low-income borrowers is greater than or equal
to 50 percent of the assets of such bank.
(b) Notification of Eligibility.--Based on data obtained through
examinations of depository institutions, the appropriate Federal
banking agency shall notify a depository institution if the institution
is eligible to be designated as an impact bank.
(c) Application.--Regardless of whether or not it has received a
notice of eligibility under subsection (b), a depository institution
may submit an application to the appropriate Federal banking agency--
(1) requesting to be designated as an impact bank; and
(2) demonstrating that the depository institution meets the
applicable qualifications.
(d) Limitation on Additional Data Requirements.--The Federal
banking agencies may only impose additional data collection
requirements on a depository institution under this section if such
data is--
(1) necessary to process an application submitted by the
depository institution to be designated an impact bank; or
(2) with respect to a depository institution that is
designated as an impact bank, necessary to ensure the
depository institution's ongoing qualifications to maintain
such designation.
(e) Removal of Designation.--If the appropriate Federal banking
agency determines that a depository institution designated as an impact
bank no longer meets the criteria for such designation, the appropriate
Federal banking agency shall rescind the designation and notify the
depository institution of such rescission.
(f) Reconsideration of Designation; Appeals.--Under such procedures
as the Federal banking agencies may establish, a depository institution
may--
(1) submit to the appropriate Federal banking agency a
request to reconsider a determination that such depository
institution no longer meets the criteria for the designation;
or
(2) file an appeal of such determination.
(g) Rulemaking.--Not later than 1 year after the date of the
enactment of this Act, the Federal banking agencies shall jointly issue
rules to carry out the requirements of this section, including by
providing a definition of a low-income borrower.
(h) Reports.--Each Federal banking agency shall submit an annual
report to the Congress containing a description of actions taken to
carry out this section.
(i) Federal Deposit Insurance Act Definitions.--In this section,
the terms ``depository institution'', ``appropriate Federal banking
agency'', and ``Federal banking agency'' have the meanings given such
terms, respectively, in section 3 of the Federal Deposit Insurance Act
(12 U.S.C. 1813).
SEC. 6. MINORITY DEPOSITORIES ADVISORY COMMITTEES.
(a) Establishment.--Each covered regulator shall establish an
advisory committee to be called the ``Minority Depositories Advisory
Committee''.
(b) Duties.--Each Minority Depositories Advisory Committee shall
provide advice to the respective covered regulator on meeting the goals
established by section 308 of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 (12 U.S.C. 1463 note) to preserve
the present number of covered minority institutions, preserve the
minority character of minority-owned institutions in cases involving
mergers or acquisitions, provide technical assistance, and encourage
the creation of new covered minority institutions. The scope of the
work of each such Minority Depositories Advisory Committee shall
include an assessment of the current condition of covered minority
institutions, what regulatory changes or other steps the respective
agencies may be able to take to fulfill the requirements of such
section 308, and other issues of concern to covered minority
institutions.
(c) Membership.--
(1) In general.--Each Minority Depositories Advisory
Committee shall consist of no more than 10 members, who--
(A) shall serve for one two-year term;
(B) shall serve as a representative of a depository
institution or an insured credit union with respect to
which the respective covered regulator is the covered
regulator of such depository institution or insured
credit union; and
(C) shall not receive pay by reason of their
service on the advisory committee, but may receive
travel or transportation expenses in accordance with
section 5703 of title 5, United States Code.
(2) Diversity.--To the extent practicable, each covered
regulator shall ensure that the members of the Minority
Depositories Advisory Committee of such agency reflect the
diversity of covered minority institutions.
(d) Meetings.--
(1) In general.--Each Minority Depositories Advisory
Committee shall meet not less frequently than twice each year.
(2) Notice and invitations.--Each Minority Depositories
Advisory Committee shall--
(A) notify the Committee on Financial Services of
the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate in
advance of each meeting of the Minority Depositories
Advisory Committee; and
(B) invite the attendance at each meeting of the
Minority Depositories Advisory Committee of--
(i) one member of the majority party and
one member of the minority party of the
Committee on Financial Services of the House of
Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate; and
(ii) one member of the majority party and
one member of the minority party of any
relevant subcommittees of such committees.
(e) No Termination of Advisory Committees.--The termination
requirements under section 14 of the Federal Advisory Committee Act (5
U.S.C. app.) shall not apply to a Minority Depositories Advisory
Committee established pursuant to this section.
(f) Definitions.--In this section:
(1) Covered regulator.--The term ``covered regulator''
means the Comptroller of the Currency, the Board of Governors
of the Federal Reserve System, the Federal Deposit Insurance
Corporation, and the National Credit Union Administration.
(2) Covered minority institution.--The term ``covered
minority institution'' means a minority depository institution
(as defined in section 308(b) of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1463
note)).
(3) Depository institution.--The term ``depository
institution'' has the meaning given under section 3 of the
Federal Deposit Insurance Act (12 U.S.C. 1813).
(4) Insured credit union.--The term ``insured credit
union'' has the meaning given in section 101 of the Federal
Credit Union Act (12 U.S.C. 1752).
(g) Technical Amendment.--Section 308(b) of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C.
1463 note) is amended by adding at the end the following new paragraph:
``(3) Depository institution.--The term `depository
institution' means an `insured depository institution' (as
defined in section 3 of the Federal Deposit Insurance Act (12
U.S.C. 1813)) and an insured credit union (as defined in
section 101 of the Federal Credit Union Act (12 U.S.C.
1752)).''.
SEC. 7. FEDERAL DEPOSITS IN MINORITY DEPOSITORY INSTITUTIONS.
(a) In General.--Section 308 of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 (12 U.S.C. 1463 note) is
amended--
(1) by adding at the end the following new subsection:
``(d) Federal Deposits.--The Secretary of the Treasury shall ensure
that deposits made by Federal agencies in minority depository
institutions and impact banks are collateralized or insured, as
determined by the Secretary. Such deposits shall include reciprocal
deposits as defined in section 337.6(e)(2)(v) of title 12, Code of
Federal Regulations (as in effect on March 6, 2019).''; and
(2) in subsection (b), as amended by section 6(g), by
adding at the end the following new paragraph:
``(4) Impact bank.--The term `impact bank' means a
depository institution designated by the appropriate Federal
banking agency pursuant to section 5 of the Ensuring Diversity
in Community Banking Act.''.
(b) Technical Amendments.--Section 308 of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C.
1463 note) is amended--
(1) in the matter preceding paragraph (1), by striking
``section--'' and inserting ``section:''; and
(2) in the paragraph heading for paragraph (1), by striking
``financial'' and inserting ``depository''.
SEC. 8. MINORITY BANK DEPOSIT PROGRAM.
(a) In General.--Section 1204 of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 (12 U.S.C. 1811 note) is amended
to read as follows:
``SEC. 1204. EXPANSION OF USE OF MINORITY DEPOSITORY INSTITUTIONS.
``(a) Minority Bank Deposit Program.--
``(1) Establishment.--There is established a program to be
known as the `Minority Bank Deposit Program' to expand the use
of minority depository institutions.
``(2) Administration.--The Secretary of the Treasury,
acting through the Fiscal Service, shall--
``(A) on application by a depository institution or
credit union, certify whether such depository
institution or credit union is a minority depository
institution;
``(B) maintain and publish a list of all depository
institutions and credit unions that have been certified
pursuant to subparagraph (A); and
``(C) periodically distribute the list described in
subparagraph (B) to--
``(i) all Federal departments and agencies;
``(ii) interested State and local
governments; and
``(iii) interested private sector
companies.
``(3) Inclusion of certain entities on list.--A depository
institution or credit union that, on the date of the enactment
of this section, has a current certification from the Secretary
of the Treasury stating that such depository institution or
credit union is a minority depository institution shall be
included on the list described under paragraph (2)(B).
``(b) Expanded Use Among Federal Departments and Agencies.--
``(1) In general.--Not later than 1 year after the
establishment of the program described in subsection (a), the
head of each Federal department or agency shall develop and
implement standards and procedures to prioritize, to the
maximum extent possible as permitted by law and consistent with
principles of sound financial management, the use of minority
depository institutions to hold the deposits of each such
department or agency.
``(2) Report to congress.--Not later than 2 years after the
establishment of the program described in subsection (a), and
annually thereafter, the head of each Federal department or
agency shall submit to Congress a report on the actions taken
to increase the use of minority depository institutions to hold
the deposits of each such department or agency.
``(c) Definitions.--For purposes of this section:
``(1) Credit union.--The term `credit union' has the
meaning given the term `insured credit union' in section 101 of
the Federal Credit Union Act (12 U.S.C. 1752).
``(2) Depository institution.--The term `depository
institution' has the meaning given in section 3 of the Federal
Deposit Insurance Act (12 U.S.C. 1813).
``(3) Minority depository institution.--The term `minority
depository institution' has the meaning given that term under
section 308 of this Act.''.
(b) Conforming Amendments.--The following provisions are amended by
striking ``1204(c)(3)'' and inserting ``1204(c)'':
(1) Section 808(b)(3) of the Community Reinvestment Act of
1977 (12 U.S.C. 2907(b)(3)).
(2) Section 40(g)(1)(B) of the Federal Deposit Insurance
Act (12 U.S.C. 1831q(g)(1)(B)).
(3) Section 704B(h)(4) of the Equal Credit Opportunity Act
(15 U.S.C. 1691c-2(h)(4)).
SEC. 9. DIVERSITY REPORT AND BEST PRACTICES.
(a) Annual Report.--Each covered regulator shall submit to Congress
an annual report on diversity including the following:
(1) Data, based on voluntary self-identification, on the
racial, ethnic, and gender composition of the examiners of each
covered regulator, disaggregated by length of time served as an
examiner.
(2) The status of any examiners of covered regulators,
based on voluntary self-identification, as a veteran.
(3) Whether any covered regulator, as of the date on which
the report required under this section is submitted, has
adopted a policy, plan, or strategy to promote racial, ethnic,
and gender diversity among examiners of the covered regulator.
(4) Whether any special training is developed and provided
for examiners related specifically to working with depository
institutions and credit unions that serve communities that are
predominantly minorities, low income, or rural, and the key
focus of such training.
(b) Best Practices.--Each Office of Minority and Women Inclusion of
a covered regulator shall develop, provide to the head of the covered
regulator, and make publicly available best practices--
(1) for increasing the diversity of candidates applying for
examiner positions, including through outreach efforts to
recruit diverse candidate to apply for entry-level examiner
positions; and
(2) for retaining and providing fair consideration for
promotions within the examiner staff for purposes of achieving
diversity among examiners.
(c) Covered Regulator Defined.--In this section, the term ``covered
regulator'' means the Comptroller of the Currency, the Board of
Governors of the Federal Reserve System, the Federal Deposit Insurance
Corporation, and the National Credit Union Administration.
SEC. 10. INVESTMENTS IN MINORITY DEPOSITORY INSTITUTIONS AND IMPACT
BANKS.
(a) Control for Certain Institutions.--Section 7(j)(8)(B) of the
Federal Deposit Insurance Act (12 U.S.C. 1817(j)(8)(B)) is amended to
read as follows:
``(B) `control' means the power, directly or indirectly--
``(i) to direct the management or policies of an
insured depository institution; or
``(ii)(I) with respect to an insured depository
institution, of a person to vote 25 per centum or more
of any class of voting securities of such institution;
or
``(II) with respect to an insured depository
institution that is an impact bank (as designated
pursuant to section 5 of the Ensuring Diversity in
Community Banking Act) or a minority depository
institution (as defined in section 308(b) of the
Financial Institutions Reform, Recovery, and
Enforcement Act of 1989), of an individual to vote 30
percent or more of any class of voting securities of
such an impact bank or a minority depository
institution.''.
(b) Rulemaking.--The Federal banking agencies (as defined in
section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)) shall
jointly issue rules for de novo minority depository institutions and de
novo impact banks (as designated pursuant to section 5) to allow 3
years to meet the capital requirements otherwise applicable to minority
depository institutions and impact banks.
(c) Report.--Not later than 1 year after the date of the enactment
of this Act, the Federal banking agencies shall jointly submit to
Congress a report on--
(1) the principal causes for the low number of de novo
minority depository institutions during the 10-year period
preceding the date of the report;
(2) the main challenges to the creation of de novo minority
depository institutions and de novo impact banks; and
(3) regulatory and legislative considerations to promote
the establishment of de novo minority depository institutions
and de novo impact banks.
SEC. 11. REPORT ON COVERED MENTOR-PROTEGE PROGRAMS.
(a) Report.--Not later than 6 months after the date of the
enactment of this Act and annually thereafter, the Secretary of the
Treasury shall submit to Congress a report on participants in a covered
mentor-protege program, including--
(1) an analysis of outcomes of such program;
(2) the number of minority depository institutions that are
eligible to participate in such program but do not have large
financial institution mentors; and
(3) recommendations for how to match such minority
depository institutions with large financial institution
mentors.
(b) Definitions.--In this section:
(1) Covered mentor-protege program.--The term ``covered
mentor-protege program'' means a mentor-protege program
established by the Secretary of the Treasury pursuant to
section 45 of the Small Business Act (15 U.S.C. 657r).
(2) Large financial institution.--The term ``large
financial institution'' means any entity--
(A) regulated by the Comptroller of the Currency,
the Board of Governors of the Federal Reserve System,
the Federal Deposit Insurance Corporation, or the
National Credit Union Administration; and
(B) that has total consolidated assets greater than
or equal to $50,000,000,000.
SEC. 12. CUSTODIAL DEPOSIT PROGRAM FOR COVERED MINORITY DEPOSITORY
INSTITUTIONS AND IMPACT BANKS.
(a) In General.--Not later than one year after the date of the
enactment of this Act, the Secretary of the Treasury shall issue rules
establishing a custodial deposit program under which a covered bank may
receive deposits from a qualifying account.
(b) Requirements.--In issuing rules under subsection (a), the
Secretary of the Treasury shall--
(1) consult with the Federal banking agencies;
(2) ensure each covered bank participating in the program
established under this section--
(A) has appropriate policies relating to management
of assets, including measures to ensure the safety and
soundness of each such covered bank; and
(B) is compliant with applicable law; and
(3) ensure, to the extent practicable that the rules do not
conflict with goals described in section 308(a) of the
Financial Institutions Reform, Recovery, and Enforcement Act of
1989 (12 U.S.C. 1463 note).
(c) Limitations.--
(1) Deposits.--With respect to the funds of an individual
qualifying account, an entity may not deposit an amount greater
than the insured amount in a single covered bank.
(2) Total deposits.--The total amount of funds deposited in
a covered bank under the custodial deposit program described
under this section may not exceed the lesser of--
(A) 10 percent of the average amount of deposits
held by such covered bank in the previous quarter; or
(B) $100,000,000 (as adjusted for inflation).
(d) Report.--Each quarter, the Secretary of the Treasury shall
submit to Congress a report on the implementation of the program
established under this section including information identifying
participating covered banks and the total amount of deposits received
by covered banks under the program.
(e) Definitions.--In this section:
(1) Covered bank.--The term ``covered bank'' means--
(A) a minority depository institution that is well
capitalized, as defined by the appropriate Federal
banking agency; or
(B) a depository institution designated pursuant to
section 5 of the Ensuring Diversity in Community
Banking Act that is well capitalized, as defined by the
appropriate Federal banking agency.
(2) Insured amount.--The term ``insured amount'' means the
amount that is the greater of--
(A) the standard maximum deposit insurance amount
(as defined in section 11(a)(1)(E) of the Federal
Deposit Insurance Act (12 U.S.C. 1821(a)(1)(E))); or
(B) such higher amount negotiated between the
Secretary of the Treasury and the Federal Deposit
Insurance Corporation under which the Corporation will
insure all deposits of such higher amount.
(3) Federal banking agencies.--The terms ``appropriate
Federal banking agency'' and ``Federal banking agencies'' have
the meaning given those terms, respectively, under section 3 of
the Federal Deposit Insurance Act.
(4) Qualifying account.--The term ``qualifying account''
means any account established in the Department of the Treasury
that--
(A) is controlled by the Secretary; and
(B) is expected to maintain a balance greater than
$200,000,000 for the following 24-month period.
SEC. 13. STREAMLINED COMMUNITY DEVELOPMENT FINANCIAL INSTITUTION
APPLICATIONS AND REPORTING.
(a) Application Processes.--Not later than 12 months after the date
of the enactment of this Act and with respect to any person having
assets under $3,000,000,000 that submits an application for deposit
insurance with the Federal Deposit Insurance Corporation that could
also become a community development financial institution, the Federal
Deposit Insurance Corporation, in consultation with the Administrator
of the Community Development Financial Institutions Fund, shall--
(1) develop systems and procedures to record necessary
information to allow the Administrator to conduct preliminary
analysis for such person to also become a community development
financial institution; and
(2) develop procedures to streamline the application and
annual certification processes and to reduce costs for such
person to become, and maintain certification as, a community
development financial institution.
(b) Implementation Report.--Not later than 18 months after the date
of the enactment of this Act, the Federal Deposit Insurance Corporation
shall submit to Congress a report describing the systems and procedures
required under subsection (a).
(c) Annual Report.--
(1) In general.--Section 17(a)(1) of the Federal Deposit
Insurance Act (12 U.S.C. 1827(a)(1)) is amended--
(A) in subparagraph (E), by striking ``and'' at the
end;
(B) by redesignating subparagraph (F) as
subparagraph (G);
(C) by inserting after subparagraph (E) the
following new subparagraph:
``(F) applicants for deposit insurance that could
also become a community development financial
institution (as defined in section 103 of the Riegle
Community Development and Regulatory Improvement Act of
1994), a minority depository institution (as defined in
section 308 of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989), or an impact
bank (as designated pursuant to section 5 of the
Ensuring Diversity in Community Banking Act); and''.
(2) Application.--The amendment made by this subsection
shall apply with respect to the first report to be submitted
after the date that is 2 years after the date of the enactment
of this Act.
SEC. 14. TASK FORCE ON LENDING TO SMALL BUSINESS CONCERNS.
(a) In General.--Not later than 6 months after the date of the
enactment of this Act, the Administrator of the Small Business
Administration shall establish a task force to examine methods for
improving relationships between the Small Business Administration and
community development financial institutions, minority depository
institutions, and Impact Banks to increase the volume of loans provided
by such institutions to small business concerns (as defined under
section 3 of the Small Business Act (15 U.S.C. 632)).
(b) Report to Congress.--Not later than 18 months after the
establishment of the task force described in subsection (a), the
Administrator of the Small Business Administration shall submit to
Congress a report on the findings of such task force.
SEC. 15. DISCRETIONARY SURPLUS FUNDS.
(a) In General.--Subparagraph (A) of section 7(a)(3) of the Federal
Reserve Act (12 U.S.C. 289(a)(3)(A)) is amended by reducing the dollar
figure described in such subparagraph by $1,400,000,000.
(b) Effective Date.--The amendment made by subsection (a) shall
take effect on September 30, 2030.
SEC. 16. DETERMINATION OF BUDGETARY EFFECTS.
The budgetary effects of this Act, for the purpose of complying
with the Statutory Pay-As-You-Go Act of 2010, shall be determined by
reference to the latest statement titled ``Budgetary Effects of PAYGO
Legislation'' for this Act, submitted for printing in the Congressional
Record by the Chairman of the House Budget Committee, provided that
such statement has been submitted prior to the vote on passage.
Passed the House of Representatives September 21, 2020.
Attest:
CHERYL L. JOHNSON,
Clerk.
Ensuring Diversity in Community Banking Act
#5322 | HR Congress #116
Policy Area: Finance and Financial Sector
Subjects: Advisory bodiesBank accounts, deposits, capitalBanking and financial institutions regulationBusiness investment and capitalBusiness recordsCongressional oversightCredit and credit marketsEconomic developmentFinancial literacyFinancial services and investmentsGovernment information and archivesGovernment lending and loan guaranteesHousing and community development fundingInterest, dividends, interest ratesMinority and disadvantaged businessesMinority employmentSmall businessWomen in businessWomen's employment
Last Action: Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. (9/22/2020)
Bill Text Source: Congress.gov
Summary and Impacts
Original Text