Bill Summary
The legislation outlined above introduces various amendments and provisions to support the Community Development Financial Institutions (CDFI) Fund, including funding and allocations for underserved communities and minority-led CDFIs. It also establishes an Opportunity Zone Program to promote economic development in designated areas. Additionally, the legislation creates a facility to assist small businesses in recovering from the COVID-19 pandemic and increases funding for participating investment companies. It also allows for electronic submissions and signatures, establishes a Minority Business Development Agency, and extends loan payment subsidies under the CARES Act. These changes will be effective for taxable years beginning after December 31, 2019.
Possible Impacts
1. The establishment and administration of a facility to assist small businesses in recovering from the COVID-19 pandemic and increasing economic development in low-income areas will provide much needed financial assistance to struggling businesses and boost economic growth in underserved communities.
2. The amendment allowing for electronic submissions of documents and signatures will streamline the application process for small businesses seeking financial assistance, making it more efficient and accessible.
3. The creation of a Minority Business Development Agency and Office of African American Affairs will provide resources and support for minority-owned businesses, promoting diversity and inclusion in the small business sector.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 5011 Introduced in Senate (IS)]
<DOC>
116th CONGRESS
2d Session
S. 5011
To codify the Minority Business Development Agency of the Department of
Commerce, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
December 11, 2020
Mrs. Loeffler (for herself, Mr. Crapo, and Mr. Rubio) introduced the
following bill; which was read twice and referred to the Committee on
Finance
_______________________________________________________________________
A BILL
To codify the Minority Business Development Agency of the Department of
Commerce, 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.
This Act may be cited as the ``Economic Empowerment for Underserved
Communities Act''.
SEC. 2. PURPOSES.
The purposes of this Act, and the amendments made by this Act, are
to--
(1) ensure that underserved communities have access to
capital to promote economic revitalization;
(2) respond to the unprecedented loss of jobs and minority-
owned businesses as a result of the COVID-19 pandemic; and
(3) further encourage long-term investments in low-income
and minority communities.
SEC. 3. SUPPORTING THE CDFI FUND.
(a) Appropriations.--Of the amounts made available to the Secretary
of the Treasury under section 4027 of the CARES Act (15 U.S.C. 9061),
$7,000,000,000 shall be made available to the Fund to carry out this
section.
(b) Set Asides.--Of the amounts made available under subsection
(a), the following amounts shall be set aside:
(1) Up to $1,000,000,000, to remain available until
September 30, 2022, to support, prepare for, and respond to the
economic impact of the coronavirus, provided that the Fund
shall--
(A) provide grants funded under this paragraph
using a formula that takes into account criteria such
as certification status, financial and compliance
performance, portfolio and balance sheet strength, a
diversity of CDFI business model types, and program
capacity, of which not less than $30,000,000 may be for
grants to benefit Native American, Native Hawaiian, and
Alaska Native communities; and
(B) make funds available under this paragraph not
later than 60 days after the date of enactment of this
Act.
(2) Up to $4,000,000,000, to remain available until
September 30, 2025, to provide grants to CDFIs--
(A) to expand lending or investment activity in
low- or moderate-income minority communities and to
minorities that have significant unmet capital or
financial services needs; and
(B) using a formula that takes into account
criteria such as certification status, financial and
compliance performance, portfolio and balance sheet
strength, a diversity of CDFI business model types, and
program capacity, as well as experience making loans
and investments to those areas and populations
identified in this paragraph.
(3) Up to $500,000,000, to remain available until expended,
for technical assistance, technology, and training under
sections 108(a)(1)(B) and 109, respectively, of the Community
Development Banking and Financial Institutions Act of 1994 (12
U.S.C. 4707(a)(1)(B), 4708), with a preference for minority-led
and minority-owned CDFIs that primarily serve low- and
moderate-income communities.
(4) Up to $500,000,000, to remain available until expended,
to provide grants to recipients that are minority-led and
minority-owned CDFIs.
(c) Administrative Expenses.--Funds made available under this
section may be used for administrative expenses, including
administration of Fund programs and the New Markets Tax Credit Program
under section 45D of the Internal Revenue Code of 1986.
(d) Emergency Designation.--
(1) In general.--The amounts provided under this section
are designated as an emergency requirement pursuant to section
4(g) of the Statutory Pay-As-You-Go Act of 2010 (2 U.S.C.
933(g)).
(2) Designation in senate.--In the Senate, this section is
designated as an emergency requirement pursuant to section
4112(a) of H. Con. Res. 71 (115th Congress), the concurrent
resolution on the budget for fiscal year 2018.
(e) Definitions.--In this section:
(1) CDFI.--The term ``CDFI'' means 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).
(2) Fund.--The term ``Fund'' means the Community
Development Financial Institutions Fund established under
section 104(a) of the Community Development Banking and
Financial Institutions Act of 1994 (12 U.S.C. 4703(a)).
(3) Minority.--The term ``minority'' means any Black
American, Native American, Hispanic American, or Asian
American.
SEC. 4. PERMANENT EXTENSION OF NEW MARKETS TAX CREDIT.
(a) Extension.--
(1) In general.--Subparagraph (H) of section 45D(f)(1) of
the Internal Revenue Code of 1986 is amended by inserting ``and
each calendar year thereafter'' after ``for 2020''.
(2) Conforming amendment.--Section 45D(f)(3) of such Code
is amended by striking the last sentence.
(b) Inflation Adjustment.--Subsection (f) of section 45D of the
Internal Revenue Code of 1986 is amended by adding at the end the
following new paragraph:
``(4) Inflation adjustment.--
``(A) In general.--In the case of any calendar year
beginning after 2020, the dollar amount in paragraph
(1)(G) shall be increased by an amount equal to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment
determined under section 1(f)(3) for the
calendar year, determined by substituting
`calendar year 2019' for `calendar year 2016'
in subparagraph (A)(ii) thereof.
``(B) Rounding rule.--Any increase under
subparagraph (A) which is not a multiple of $1,000,000
shall be rounded to the nearest multiple of
$1,000,000.''.
(c) Alternative Minimum Tax Relief.--Subparagraph (B) of section
38(c)(4) of the Internal Revenue Code of 1986 is amended--
(1) by redesignating clauses (vii) through (xii) as clauses
(viii) through (xiii), respectively, and
(2) by inserting after clause (vi) the following new
clause:
``(vii) the credit determined under section
45D, but only with respect to credits
determined with respect to qualified equity
investments (as defined in section 45D(b))
initially made after December 31, 2019,''.
(d) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to taxable years
beginning after December 31, 2019.
(2) Alternative minimum tax relief.--The amendments made by
subsection (c) shall apply to credits determined with respect
to qualified equity investments (as defined in section 45D(b)
of the Internal Revenue Code of 1986) initially made after
December 31, 2020.
SEC. 5. OPPORTUNITY ZONE PROGRAM REPRESENTATIVES.
Section 4 of the Small Business Act (15 U.S.C. 633) is amended by
adding at the end the following:
``(i) Opportunity Zone Program Representatives.--
``(1) In general.--The Administrator, through each district
office of the Administration, small business development
center, women's business center described in section 29,
chapter of the Service Corps of Retired Executives authorized
by section 8(b)(1), and Veteran Business Outreach Center
described in section 32, shall train and educate field
representatives on investments in areas that have been
designated as qualified opportunity zones under section 1400Z-1
of the Internal Revenue Code of 1986.
``(2) Duties.--A field representative trained under
paragraph (1) shall--
``(A) serve as a point of contact for questions and
resources on the investments described in paragraph (1)
for the area served by the district office, small
business development center, women's business center,
chapter of the Service Corps of Retired Executives, and
Veteran Business Outreach Center, as applicable;
``(B) educate elected leaders within such area on
those investments; and
``(C) hold an annual seminar in each State to
educate managers of qualified opportunity funds (as
defined in section 1400Z-2(d) of the Internal Revenue
Code of 1986), qualified opportunity zone businesses
(as defined in such section), State and local
government officials, accountants, lawyers, and other
interested persons on how to benefit from such
investments.
``(3) Report.--
``(A) In general.--Not later than 1 year after the
date of enactment of this subsection, and annually
thereafter through 2026, the director of each regional
office of the Administration shall submit to the
Administrator a report on the success of the efforts of
the field representatives trained under paragraph (1),
including any problems faced by, and best practices of,
the field representatives.
``(B) Submission by administrator.--The
Administrator shall submit each report received under
subparagraph (A) to the Committee on Small Business and
Entrepreneurship of the Senate and the Committee on
Small Business of the House of Representatives.''.
SEC. 6. SMALL BUSINESS INVESTMENT COMPANY PROGRAM.
(a) In General.--Part A of title III of the Small Business
Investment Act of 1958 (15 U.S.C. 681 et seq.) is amended--
(1) in section 302(a) (15 U.S.C. 682(a))--
(A) in paragraph (1)--
(i) in subparagraph (A), by striking ``or''
at the end;
(ii) in subparagraph (B), by striking the
period at the end and inserting ``; or''; and
(iii) by adding at the end the following:
``(C) $20,000,000, adjusted every 5 years for
inflation, with respect to each licensee authorized or
seeking authority to sell bonds to Administration as a
participating investment company under section 321.'';
and
(2) by adding at the end the following:
``SEC. 321. SMALL BUSINESS AND DOMESTIC PRODUCTION RECOVERY INVESTMENT
FACILITY.
``(a) Definitions.--In this section:
``(1) Covered population census tract.--The term `covered
population census tract' means a population census tract for
which--
``(A) in the case of a tract that is not located
within a metropolitan area, the median income does not
exceed 80 percent of the statewide (or, with respect to
a possession or territory of the United States, the
possession- or territory-wide) median family income; or
``(B) in the case of a tract that is located within
a metropolitan area, the median family income does not
exceed 80 percent of the greater of the statewide (or,
with respect to a possession or territory of the United
States, the possession- or territory-wide) median
family income and the metropolitan area median family
income.
``(2) Eligible small business concern.--The term `eligible
small business concern'--
``(A) means a small business concern that--
``(i)(I) except as provided in subclauses
(II), (III), and (IV), had gross receipts
during the first or second quarter in 2020 that
are not less than 50 percent less than the
gross receipts of the entity during the same
quarter in 2019;
``(II) if the entity was not in business
during the first or second quarter of 2019, but
was in business during the third and fourth
quarter of 2019, had gross receipts during the
first or second quarter of 2020 that are less
than 50 percent of the amount of the gross
receipts of the entity during the third or
fourth quarter of 2019;
``(III) if the entity was not in business
during the first, second, or third quarter of
2019, but was in business during the fourth
quarter of 2019, had gross receipts during the
first or second quarter of 2020 that are less
than 50 percent of the amount of the gross
receipts of the entity during the fourth
quarter of 2019; or
``(IV) if the entity was not in business
during 2019, but was in operation on February
15, 2020, had gross receipts during the second
quarter of 2020 that are less than 50 percent
of the amount of the gross receipts of the
entity during the first quarter of 2020;
``(ii) is a manufacturing business that is
assigned a North American Industry
Classification System code beginning with 31,
32, or 33 at the time at which the small
business concern receives an investment from a
participating investment company under the
facility; or
``(iii) is located in a small business low-
income census tract; and
``(B) does not include--
``(i) an issuer, the securities of which
are listed on an exchange registered a national
securities exchange under section 6 of the
Securities Exchange Act of 1934 (15 U.S.C.
78f);
``(ii) any entity that--
``(I) is a type of business concern
described in paragraph (b), (c), (d),
(e), (f), (h), (l), (m), (p), (q), (r),
or (s) of section 120.110 of title 13,
Code of Federal Regulations, or any
successor regulation;
``(II) is a type of business
concern described in section 120.110(g)
of title 13, Code of Federal
Regulations, or any successor
regulation, except as otherwise
provided in the interim final rule of
the Administration entitled `Business
Loan Program Temporary Changes;
Paycheck Protection Program--Additional
Eligibility Criteria and Requirements
for Certain Pledges of Loans' (85 Fed.
Reg. 21747 (April 20, 2020));
``(III) is a type of business
concern described in section 120.110(i)
of title 13, Code of Federal
Regulations, or any successor
regulation, except if--
``(aa) the business concern
is described in section
501(c)(6) of the Internal
Revenue Code and that is exempt
from taxation under section
501(a) of such Code (excluding
professional football leagues
and organizations with the
purpose of promoting or
participating in a political
campaign or other activity);
``(bb) the business concern
does not receive more than 10
percent of its receipts from
lobbying activities;
``(cc) the lobbying
activities of the business
concern do not comprise more
than 10 percent of the total
activities of the business
concern; and
``(dd) the business concern
employs not more than 300
employees;
``(IV) is a type of business
concern described in section 120.110(j)
of title 13, Code of Federal
Regulations, or any successor
regulation, except as otherwise
provided in the interim final rules of
the Administration entitled `Business
Loan Program Temporary Changes;
Paycheck Protection Program--
Eligibility of Certain Electric
Cooperatives' (85 Fed. Reg. 29847 (May
19, 2020)) and `Business Loan Program
Temporary Changes; Paycheck Protection
Program--Eligibility of Certain
Telephone Cooperatives' (85 Fed. Reg.
35550 (June 11, 2020)) or any other
guidance or rule issued or that may be
issued by the Administrator;
``(V) is a type of business concern
described in section 120.110(n) of
title 13, Code of Federal Regulations,
or any successor regulation, except as
otherwise provided in the interim final
rule of the Administration entitled
`Business Loan Program Temporary
Changes; Paycheck Protection Program--
Additional Eligibility Revisions to
First Interim Final Rule' (85 Fed. Reg.
38301 (June 26, 2020)) or any other
guidance or rule issued or that may be
issued by the Administrator;
``(VI) is a type of business
concern described in section 120.110(o)
of title 13, Code of Federal
Regulations, or any successor
regulation, except as otherwise
provided in any guidance or rule issued
or that may be issued by the
Administrator;
``(VII) is an entity that is
organized for research or for engaging
in advocacy in areas such as public
policy or political strategy or
otherwise describes itself as a think
tank in any public documents;
``(VIII) is an entity that would be
described in the provisions listed in
subclauses (I) through (VII) if the
entity were a business concern; or
``(IX) is assigned, or was approved
for a loan under section 7(a)(36) of
the Small Business Act (15 U.S.C.
636(a)(36)) with, a North American
Industry Classification System code
beginning with 52;
``(iii) any business concern or entity
primarily engaged in political or lobbying
activities, including any entity that is
organized for research or for engaging in
advocacy in areas such as public policy or
political strategy or otherwise describes
itself as a think tank in any public documents;
or
``(iv) any business concern or entity--
``(I) for which an entity created
in or organized under the laws of the
People's Republic of China or the
Special Administrative Region of Hong
Kong, or that has significant
operations in the People's Republic of
China or the Special Administrative
Region of Hong Kong, owns or holds,
directly or indirectly, not less than
20 percent of the economic interest of
the business concern or entity,
including as equity shares or a capital
or profit interest in a limited
liability company or partnership; or
``(II) that retains, as a member of
the board of directors of the business
concern, a person who is a resident of
the People's Republic of China.
``(3) Facility.--The term `facility' means the facility
established under subsection (b).
``(4) Fund.--The term `Fund' means the fund established
under subsection (h).
``(5) Participating investment company.--The term
`participating investment company' means a small business
investment company approved under subsection (d) to participate
in the facility.
``(6) Protege investment company.--The term `protege
investment company' means a small business investment company
that--
``(A) is majority managed by new, inexperienced, or
otherwise underrepresented fund managers; and
``(B) elects and is selected by the Administration
to participate in the pathway-protege program under
subsection (g).
``(7) Small business concern.--The term `small business
concern' has the meaning given the term in section 3(a) of the
Small Business Act (15 U.S.C. 632(a)).
``(8) Small business low-income census tract.--The term
`small business low-income census tract'--
``(A) means--
``(i) a covered population census tract for
which the poverty rate is not less than 20
percent; or
``(ii) an area--
``(I) that is not tracted as a
population census tract;
``(II) for which the poverty rate
in the equivalent county division (as
defined by the Bureau of the Census) is
not less than 20 percent; and
``(III) for which the median income
in the equivalent county division (as
defined by the Bureau of the Census)
does not exceed 80 percent of the
statewide (or, with respect to a
possession or territory of the United
States, the possession- or territory-
wide) median income; and
``(B) does not include any area or population
census tract with a median family income that is not
less than 120 percent of the median family income in
the United States, according to the most recent
American Communities Survey data from the Bureau of the
Census.
``(b) Establishment.--
``(1) Facility.--The Administrator shall establish and
carry out a facility to improve the recovery of eligible small
business concerns from the COVID-19 pandemic, increase
resiliency in the manufacturing supply chain of eligible small
business concerns, and increase the economic development of
small business low-income census tracts by providing financial
assistance to participating investment companies that
facilitate equity financings to eligible small business
concerns in accordance with this section.
``(2) Administration of facility.--The facility shall be
administered by the Administrator acting through the Associate
Administrator described in section 201.
``(c) Applications.--
``(1) In general.--Any small business investment company
may submit to the Administrator an application to participate
in the facility.
``(2) Requirements for application.--An application to
participate in the facility shall include the following:
``(A) A business plan describing how the applicant
intends to make successful equity investments in
eligible small business concerns.
``(B) Information regarding the relevant investment
qualifications and backgrounds of the individuals
responsible for the management of the applicant.
``(C) A description of the extent to which the
applicant meets the selection criteria under subsection
(d)(2).
``(3) Exceptions to application for new licensees.--Not
later than 90 days after the date of enactment of this section,
the Administrator shall reduce requirements for applicants
applying to operate as a participating investment company under
this section in order to encourage the participation of new
small business investment companies in the facility under this
section, which may include the requirements established under
part 107 of title 13, Code of Federal Regulations, or any
successor regulations, relating to--
``(A) the approval of initial management expenses;
``(B) the management ownership diversity
requirement;
``(C) the disclosure of general compensatory
practices and fee structures; or
``(D) any other requirement that the Administrator
determines to be an obstacle to achieving the purposes
described in this paragraph.
``(d) Selection of Participating Investment Companies.--
``(1) Determination.--
``(A) In general.--Except as provided in paragraph
(3), not later than 60 days after the date on which the
Administrator receives an application under subsection
(c), the Administrator shall--
``(i) make a final determination to approve
or disapprove such applicant to participate in
the facility; and
``(ii) transmit the determination to the
applicant in writing.
``(B) Commitment amount.--Except as provided in
paragraph (3), at the time of approval of an applicant,
the Administrator shall make a determination of the
amount of the commitment that may be awarded to the
applicant under this section.
``(2) Selection criteria.--In making a determination under
paragraph (1), the Administrator shall consider--
``(A) the probability that the investment strategy
of the applicant will successfully repay any financial
assistance provided by the Administration, including
the probability of a return significantly in excess
thereof;
``(B) the probability that the investments made by
the applicant will--
``(i) provide capital to eligible small
business concerns; or
``(ii) create or preserve jobs in the
United States;
``(C) the probability that the applicant will meet
the objectives in the business plan of the applicant,
including the financial goals, and, if applicable, the
pathway-protege program in accordance with subsection
(g); and
``(D) the probability that the applicant will
assist eligible small business concerns in achieving
profitability.
``(3) Approval of participating investment companies.--
``(A) Provisional approval.--
``(i) In general.--Notwithstanding
paragraph (1), with respect to an application
submitted by an applicant to operate as a
participating investment company under this
section, the Administrator may provide
provisional approval for the applicant in lieu
of a final determination of approval and
determination of the amount of the commitment
under that paragraph.
``(ii) Purpose.--The purpose of a
provisional approval under clause (i) is to--
``(I) encourage applications from
investment companies with an investment
mandate from the committed private
market capital of the investment
company that does not conform to the
requirements described in this section
at the time of application;
``(II) allow the applicant to more
effectively raise capital commitments
in the private markets by referencing
the intent of the Administrator to
award the applicant a commitment; and
``(III) allow the applicant to more
precisely request the desired amount of
commitment pending the securing of
capital from private market investors.
``(iii) Limit on period of the time.--The
period between a provisional approval under
clause (i) and the final determination of
approval under paragraph (1) shall not exceed
12 months.
``(e) Commitments and SBIC Bonds.--
``(1) In general.--The Administrator may, out of amounts
available in the Fund, purchase or commit to purchase from a
participating investment company 1 or more accruing bonds that
include equity features as described in this subsection.
``(2) Bond terms.--A bond purchased by the Administrator
from a participating investment company under this subsection
shall have the following terms and conditions:
``(A) Term and interest.--
``(i) In general.--The bond shall be issued
for a term of not less than 15 years and shall
bear interest at a rate determined by the
Administrator of not more than 2 percent.
``(ii) Accrual of interest.--Interest on
the bond shall accrue and shall be payable in
accordance with subparagraph (D).
``(iii) Prepayment.--The bond shall be
prepayable without penalty after the end of the
1-year period beginning on the date on which
the bond was purchased.
``(B) Profits.--
``(i) In general.--The Administration shall
be entitled to receive a share of the profits
net of any profit sharing performance
compensation of the participating investment
company equal to the quotient obtained by
dividing--
``(I) one-third of the commitment
that the participating investment
company is approved for under
subsection (d); by
``(II) the commitment approved
under subsection (d) plus the
regulatory capital of the participating
investment company at the time of
approval under that subsection.
``(ii) Determination of percentage.--The
share to which the Administration is entitled
under clause (i)--
``(I) shall be determined at the
time of approval under subsection (d);
and
``(II) without the approval of the
Administration, shall not be revised,
including to reflect subsequent
distributions of profits, returns of
capital, or repayments of bonds, or
otherwise.
``(C) Profit sharing performance compensation.--
``(i) Receipt by administration.--The
Administration shall receive a share of profits
of not more than 2 percent, which shall be
deposited into the Fund and be available to
make commitments under this subsection.
``(ii) Receipt by managers.--The managers
of the participating investment company may
receive a maximum profit sharing performance
compensation of 25 percent minus the share of
profits paid to the Administration under clause
(i).
``(D) Prohibition on distributions.--No
distributions on capital, including profit
distributions, shall be made by the participating
investment company to the investors or managers of the
participating investment company until the
Administration has received payment of all accrued
interest on the bond committed under this section.
``(E) Repayment of principal.--Except as described
in subparagraph (F), repayments of principal of the
bond of a participating investment company shall be--
``(i) made at the same time as returns of
private capital; and
``(ii) in amounts equal to the pro rata
share of the Administration of the total amount
being repaid or returned at such time.
``(F) Liquidation or default.--Upon any liquidation
event or default, as defined by the Administration, any
unpaid principal or accrued interest on the bond
shall--
``(i) have a priority over all equity of
the participating investment company; and
``(ii) be paid before any return of equity
or any other distributions to the investors or
managers of the participating investment
company.
``(3) Amount of commitments and purchases.--
``(A) Maximum amount.--The maximum amount of
outstanding bonds and commitments to purchase bonds for
any participating investment company under the facility
shall be the lesser of--
``(i) twice the amount of the regulatory
capital of the participating investment
company; or
``(ii) $200,000,000.
``(4) Commitment process.--Commitments by the
Administration to purchase bonds under the facility shall
remain available to be sold by a participating investment
company until the end of the fourth fiscal year following the
year in which the commitment is made, subject to review and
approval by the Administration based on regulatory compliance,
financial status, change in management, deviation from business
plan, and such other limitations as may be determined by the
Administration by regulation or otherwise.
``(5) Commitment conditions.--
``(A) In general.--As a condition of receiving a
commitment under the facility, not less than 50 percent
of amounts invested by the participating investment
company shall be invested in eligible small business
concerns.
``(B) Examinations.--In addition to the matters set
forth in section 310(c), the Administration shall
examine each participating investment company in such
detail so as to determine whether the participating
investment company has complied with the requirements
under this subsection.
``(f) Distributions and Fees.--
``(1) Distribution requirements.--
``(A) Distributions.--As a condition of receiving a
commitment under the facility, a participating
investment company shall make all distributions to the
Administrator in the same form and in a manner as are
made to investors, or otherwise at a time and in a
manner consistent with regulations or policies of the
Administration.
``(B) Allocations.--A participating investment
company shall make allocations of income, gain, loss,
deduction, and credit to the Administrator with respect
to any outstanding bonds as if the Administrator were
an investor.
``(2) Fees.--The Administrator may not charge fees for
participating investment companies other than examination fees
that are consistent with the license of the participating
investment company.
``(3) Bifurcation.--Losses on bonds issued by participating
investment companies shall not be offset by fees or any other
charges on debenture small business investment companies.
``(g) Protege Program.--The Administrator shall establish a
pathway-protege program in which a protege investment company may
receive technical assistance and program support from a participating
investment company on a voluntary basis and without penalty for non-
participation.
``(h) Loss Limiting Fund.--
``(1) In general.--There is established in the Treasury a
fund for making commitments and purchasing bonds with equity
features under the facility and receiving capital returned by
participating investment companies.
``(2) Use of funds.--Amounts appropriated to the Fund or
deposited in the Fund under paragraph (3) shall be available to
the Administrator, without further appropriation, for making
commitments and purchasing bonds under the facility and
expenses and payments, excluding administrative expenses,
relating to the operations of the Administrator under the
facility.
``(3) Depositing of amounts.--
``(A) In general.--All amounts received by the
Administrator from a participating investment company
relating to the facility, including any moneys,
property, or assets derived by the Administrator from
operations in connection with the facility, shall be
deposited in the Fund.
``(B) Period of availability.--Amounts deposited
under subparagraph (A) shall remain available until
expended.
``(i) Application of Other Sections.--To the extent not
inconsistent with requirements under this section, the Administrator
may apply sections 309, 311, 312, 313, and 314 to activities under this
section and an officer, director, employee, agent, or other participant
in a participating investment company shall be subject to the
requirements under such sections.
``(j) Authorization of Appropriations.--There is authorized to be
appropriated for the first fiscal year beginning after the date of
enactment of this section $10,000,000,000 to carry out the facility.
Amounts appropriated pursuant to this subsection shall remain available
until the end of the second fiscal year beginning after the date of
enactment of this section.''.
(b) Approval of Bank-Owned, Non-Leveraged Applicants.--Section
301(c)(2) of the Small Business Investment Act of 1958 (15 U.S.C.
681(c)(2)) is amended--
(1) in subparagraph (B), in the matter preceding clause
(i), by striking ``Within'' and inserting ``Except as provided
in subparagraph (C), within''; and
(2) by adding at the end the following:
``(C) Exception for bank-owned, non-leveraged
applicants.--Not later than 45 days after the date on
which the Administrator receives a completed
application submitted by a bank-owned, non-leveraged
applicant in accordance with this subsection, and in
accordance with such requirements as the Administrator
may prescribe by regulation, the Administrator shall--
``(i) review the application in its
entirety; and
``(ii)(I) approve the application and issue
a license for such operation to the applicant
if the requirements of this section are
satisfied; or
``(II) disapprove the application and
notify the applicant in writing of the
disapproval.''.
(c) Electronic Submissions.--Part A of title III of the Small
Business Investment Act of 1958 (15 U.S.C. 681 et seq.), as amended by
subsection (a) of this section, is amended by adding at the end the
following:
``SEC. 322. ELECTRONIC SUBMISSIONS.
``The Administration shall permit any document submitted under this
title, or pursuant to a regulation carrying out this title, to be
submitted electronically, including by permitting an electronic
signature for any signature that is required on such a document.''.
SEC. 7. MINORITY BUSINESS DEVELOPMENT AGENCY.
(a) In General.--There is within the Department of Commerce the
Minority Business Development Agency (referred to in this section as
the ``Agency'').
(b) Assistant Secretary.--
(1) In general.--The Agency shall be headed by an Assistant
Secretary of Commerce for Minority Business Development, who
shall be appointed by the President.
(2) Compensation.--The Assistant Secretary of Commerce for
Minority Business Development shall be compensated at an annual
rate of basic pay prescribed for level IV of the Executive
Schedule under section 5315 of title 5, United States Code.
(c) Duties.--In addition to the functions, duties, and programs
carried out by the Agency, as of the day before the date of enactment
of this Act (including the Business Center program of the Agency), the
Agency shall--
(1) promote and administer programs in the public and
private sectors that relate to the development of minority
business enterprises; and
(2) carry out programs that increase access to capital and
technology for, and provide assistance with respect to the
management of, minority business enterprises.
(d) Office of African American Affairs.--
(1) Establishment.--There is established within the Agency
the Office of African American Affairs.
(2) Duties.--The Office of African American Affairs
established under paragraph (1) shall carry out such functions,
duties, and programs as the Assistant Secretary of Commerce for
Minority Business Development determines to be appropriate.
(e) Technical and Conforming Amendment.--Section 5315 of title 5,
United States Code, is amended, in the item relating to Assistant
Secretaries of Commerce, by striking ``(11)'' and inserting ``(12)''.
SEC. 8. HRSA GRANT PROGRAM CONSIDERATION.
In awarding grants for which faith-based entities are eligible, the
Administrator of the Health Resources and Services Administration shall
give special consideration to any application from an eligible entity
that is located in a qualified opportunity zone (as defined in section
1400Z-1(a) of the Internal Revenue Code of 1986) or that serves a
community located in such a qualified opportunity zone.
SEC. 9. EXTENSION OF SUBSIDY FOR CERTAIN LOAN PAYMENTS.
(a) In General.--Section 1112(c)(1) of the CARES Act (15 U.S.C.
9011(c)(1)) is amended--
(1) in subparagraph (A), by striking ``6-month'' and
inserting ``12-month'';
(2) in subparagraph (B), by striking ``6-month'' and
inserting ``12-month''; and
(3) in subparagraph (C)--
(A) by striking ``6 months'' and inserting ``12
months''; and
(B) by striking ``6-month'' and inserting ``12-
month''.
(b) Effective Date.--The amendments made by subsection (a) shall
take effect as if included in the enactment of section 1112 of the
CARES Act (15 U.S.C. 9011).
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