Bill Summary
This bill, titled the Community Development Financial Institutions Fund, authorizes the appropriation of $5 billion to provide financial and technical assistance for the benefit of minority communities. The funds will primarily be used for programs that support Native American, Native Hawaiian, and Alaska Native communities and will be distributed through qualified community development lender organizations. The bill defines "minority lending institution" as an institution that is at least 51% owned by socially and economically disadvantaged individuals and defines "minority" as black American, Native American, Hispanic American, or Asian American.
Possible Impacts
1. This legislation could potentially benefit minority communities by providing them with financial assistance and technical assistance through qualified community development lender organizations. This could help improve economic opportunities and resources for these communities.
2. The provision for a Bank Enterprise Award program could incentivize financial institutions to prioritize lending to minority communities, potentially increasing access to capital for businesses and individuals within these communities.
3. The requirements for institutions to be considered minority lending institutions could lead to increased representation and ownership of these institutions by socially and economically disadvantaged individuals. This could potentially create more diversity and inclusivity within the financial industry.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7121 Introduced in House (IH)]
<DOC>
116th CONGRESS
2d Session
H. R. 7121
To authorize appropriations for the Community Development Financial
Institutions Fund providing financial assistance and technical
assistance for the benefit of certain minority communities, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 8, 2020
Ms. Adams introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To authorize appropriations for the Community Development Financial
Institutions Fund providing financial assistance and technical
assistance for the benefit of certain minority communities, 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. COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS FUND.
(a) In General.--There is authorized to be appropriated to the
Community Development Financial Institutions Fund, out of amounts in
the general fund not otherwise appropriated, $5,000,000,000 for fiscal
year 2020, for providing financial assistance and technical assistance
under subparagraphs (A) and (B) of section 108(a)(1) of the Community
Development Banking and Financial Institutions Act of 1994 (12 U.S.C.
4707(a)(1)), except that subsections (d) and (e) of such section 108
shall not apply to the provision of such assistance, for the Bank
Enterprise Award program, and for financial assistance, technical
assistance, training, and outreach programs designed to benefit Native
American, Native Hawaiian, and Alaska Native communities and provided
primarily through qualified community development lender organizations
with experience and expertise in community development banking and
lending in Indian country, Native American organizations, Tribes and
Tribal organizations, and other suitable providers. Of the amount
appropriated pursuant to this heading, not less than $2,000,000,000
shall be for providing financial assistance, technical assistance,
awards, training, and outreach programs described above to recipients
that are minority lending institutions.
(b) Definitions.--For purposes of this section:
(1) Minority lending institution.--The term ``minority
lending institution'' means any depository institution, loan
fund, or other financial institution that--
(A) if a privately owned institution, 51 percent is
owned by one or more socially and economically
disadvantaged individuals;
(B) if publicly owned, 51 percent of the stock is
owned by one or more socially and economically
disadvantaged individuals; and
(C) in the case of a mutual institution, where the
majority of the Board of Directors, account holders,
and the community which it services is predominantly
minority.
(2) Minority.--The term ``minority'' means any black
American, Native American, Hispanic American, or Asian
American.
<all>