Bill Summary
The Community Capital Investment Program is an amendment to the CARES Act, a law passed in response to the COVID-19 pandemic. This amendment aims to support community investment institutions, such as community development financial institutions, credit unions, and minority depository institutions, in providing loans and forbearance to small businesses, minority-owned businesses, and consumers in low-income and underserved communities. The program will provide direct capital investments and interest-free loans to these institutions, with a loan term of 5 years and a 180-day period of no loan payments. The Secretary of the Treasury will begin accepting applications for these investments and loans within 10 days of the enactment of this amendment. The dividend or interest rate on any preferred stock or financial instrument issued to the Secretary in exchange for a capital investment will not exceed 1% for the first 3 years and 3% thereafter. The restrictions on the use of funds under the CARES Act will also apply to this program. The program will be funded by amounts made available under section 4003(b) of the CARES Act. The amendment also defines key terms, such as "community investment institution", "credit union", and "impact bank", and "Program".
Possible Impacts
1. Small businesses, minority-owned businesses, and consumers in low-income and underserved communities may have greater access to loans and forbearance through the Community Capital Investment Program.
2. Community investment institutions, such as community development financial institutions and minority depository institutions, may receive direct capital investments and loans from the government.
3. The Program may lead to increased financial support and opportunities for low-income borrowers, as well as credit unions and banks that serve them.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3774 Introduced in Senate (IS)]
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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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. COMMUNITY CAPITAL INVESTMENT PROGRAM.
Section 4003 of the CARES Act (Public Law 116-136) is amended by
adding at the end the following:
``(i) Community Capital Investment Program.--
``(1) In general.--The Secretary shall establish a
Community Capital Investment Program to support the efforts of
community investment institutions to provide loans and
forbearance for small businesses, minority-owned businesses,
and consumers, especially in low-income and underserved
communities, by--
``(A) providing direct capital investments in
community investment institutions; and
``(B) providing loans to community investment
institutions--
``(i) that are interest-free loans;
``(ii) that have a loan term of 5 years;
``(iii) with respect to which no loan
payment is required under at least the end of
the 180-day period beginning on the date the
loan is made, or such longer term as the
Secretary may determine appropriate.
``(2) Application date.--The Secretary shall begin
accepting applications for capital investments and loans under
the Program not later than the end of the 10-day period
beginning on the date of enactment of this subsection.
``(3) Dividend rate.--Any preferred stock or other
financial instrument issued to the Secretary in exchange for a
capital investment under the Program shall carry a dividend or
interest rate that does not exceed--
``(A) 1 percent, during the 3-year period following
the date on which such instrument is issued; and
``(B) 3 percent, after the 3-year period described
under subparagraph (A).
``(4) Restrictions.--The restrictions described under
subsection (c)(3)(A)(ii) shall apply to capital investments and
loans made under this subsection.
``(5) Available amounts.--In carrying out the Program, the
Secretary shall use amounts made available under subsection
(b), notwithstanding the limitations on the use of such funds
under paragraphs (1) through (4) of such subsection (b).
``(6) Definitions.--In this subsection:
``(A) Community investment institution.--The term
`community investment institution' means--
``(i) a community development financial
institution, as defined in section 103 of the
Community Development Banking and Financial
Institutions Act of 1994 (12 U.S.C. 4702);
``(ii) an impact credit union;
``(iii) an impact bank; and
``(iv) a minority depository institution,
as defined in section 308 of the Financial
Institutions Reform, Recovery, and Enforcement
Act of 1989 (12 U.S.C. 1463 note).
``(B) Credit union.--The term `credit union' means
a State credit union and Federal credit union, as
defined in section 101 of the Federal Credit Union Act
(12 U.S.C. 1752).
``(C) Impact credit union.--The term `impact credit
union' means a credit union that--
``(i) has total consolidated assets of less
than $10,000,000,000; and
``(ii) extends at least 50 percent of the
loans extended by the credit union to borrowers
who are low-income borrowers, as determined by
the Secretary.
``(D) Impact bank.--The term `impact bank' means a
depository institution, as defined in section 3 of the
Federal Deposit Insurance Act (12 U.S.C. 1813) that--
``(i) has total consolidated assets of less
than $10,000,000,000; and
``(ii) extends at least 50 percent of the
loans extended by the institution to borrowers
who are low-income borrowers, as determined by
the Secretary.
``(E) Program.--The term `Program' means the
Community Capital Investment Program.''.
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