Bill Summary
This legislation establishes the Industrial Finance Corporation of the United States, which is responsible for providing support to industries critical to national security and economic competitiveness, particularly small and medium-sized businesses and those vulnerable to underinvestment and import competition. It also outlines the structure and organization of the Corporation, including the Board of Directors and various officers, and the roles and responsibilities of each. The Corporation is also subject to oversight by an Inspector General and has the authority to engage in various financing activities. The legislation also sets forth terms and conditions for support provided by the Corporation, as well as establishing a risk committee and audit committee to assist the Board. Additionally, the Corporation is required to engage with private sector entities and coordinate with other federal agencies.
Possible Impacts
1. The establishment of the Industrial Finance Corporation of the United States under this legislation will provide support to industries critical to national security and economic competitiveness, including small and medium-sized businesses and those vulnerable to underinvestment and import competition.
2. The structure and organization of the Corporation, as outlined in sections 103 and 201, will impact the appointment of key officers and the establishment of an Advisory Council to advise the Board on development objectives.
3. The establishment of risk and audit committees under section 304 and the requirement for the Corporation to engage with private sector entities, as outlined in section 305, will have a direct impact on reducing business risks and promoting fair labor practices.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 2662 Introduced in Senate (IS)]
<DOC>
117th CONGRESS
1st Session
S. 2662
To establish the Industrial Finance Corporation of the United States,
and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
August 5, 2021
Mr. Coons (for himself, Ms. Klobuchar, Mr. Van Hollen, Mr. Warnock, Mr.
Peters, Mr. Bennet, and Mr. Warner) introduced the following bill;
which was read twice and referred to the Committee on Banking, Housing,
and Urban Affairs
_______________________________________________________________________
A BILL
To establish the Industrial Finance Corporation of the United States,
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 ``Industrial Finance
Corporation Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
TITLE I--ESTABLISHMENT
Sec. 101. Findings.
Sec. 102. Establishment of Corporation.
Sec. 103. Structure and organization.
Sec. 104. Inspector General of the Corporation.
TITLE II--AUTHORITIES
Sec. 201. Authorities relating to provision of support.
Sec. 202. Terms and conditions.
Sec. 203. Payment of losses.
TITLE III--ADMINISTRATIVE AND GENERAL PROVISIONS
Sec. 301. Operations.
Sec. 302. Corporate powers.
Sec. 303. Maximum contingent liability.
Sec. 304. Corporate funds.
TITLE IV--MONITORING, EVALUATION, AND REPORTING
Sec. 401. Establishment of risk and audit committees.
Sec. 402. Performance measures, evaluation, and learning.
Sec. 403. Annual report.
Sec. 404. Publicly available project information.
Sec. 405. Engagement with investors.
Sec. 406. Notifications by the Corporation.
TITLE V--CONDITIONS, RESTRICTIONS, AND PROHIBITIONS
Sec. 501. Limitations and preferences.
Sec. 502. Additionality and avoidance of market distortion.
Sec. 503. Prevailing wages.
SEC. 2. DEFINITIONS.
In this Act:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Banking, Housing, and Urban
Affairs of the Senate; and
(B) the Committee on Financial Services of the
House of Representatives.
(2) Board.--The term ``Board'' means the Board of Directors
of the Corporation.
(3) Corporation.--The term ``Corporation'' means the
Industrial Finance Corporation of the United States established
under section 102(a).
(4) Project.--The term ``project'' means a project or
activity supported by the Corporation under title II.
TITLE I--ESTABLISHMENT
SEC. 101. FINDINGS.
Congress finds the following:
(1) The COVID-19 pandemic exposed long-existing
vulnerabilities and harmful concentration in supply chains, as
demonstrated by the semiconductor shortage and the
reverberating effects of that shortage on the production
capabilities of industries within the United States.
(2) Vulnerable or concentrated supply chains have harmful
implications for the national security of the United States,
including by--
(A) creating bottlenecks and delays for goods and
innovations necessary to military preparedness;
(B) increasing economic and political leverage for
adversarial nations in international negotiations; and
(C) providing leverage for adversarial nations to
use their supply chain dominance to exert economic
pressure or destabilize the defense capabilities of the
United States.
(3) To promote the national defense and national security
of the United States, the Federal Government must provide
investment to ensure that certain goods and innovations are
produced in the United States.
(4) Vulnerable supply chains also have harmful economic
repercussions for the United States, including by--
(A) weakening the ability of the United States to
lead commercial development of the technological
frontier;
(B) limiting the availability of financing and
investment for businesses in the United States; and
(C) causing higher prices for consumers and
businesses in the United States.
(5) In order for the United States to remain the economic
leader of the world, it is critical for the Federal Government
to ensure that the United States leads the development,
furtherance, and commercialization of the technological
frontier through investments in manufacturing and fields and
technologies with and without military applications,
including--
(A) nanotechnology;
(B) biotechnology;
(C) advanced manufacturing;
(D) quantum computing;
(E) advanced communications;
(F) advanced energy;
(G) semiconductors;
(H) advanced computing;
(I) cybersecurity;
(J) artificial intelligence;
(K) green manufacturing; and
(L) other fields with high potential to contribute
to the economic and national security of the United
States that may lack sufficient private sector
investment.
(6) Historically, the Federal Government has used public
funds to fill gaps in private sector investment, often without
sharing in the potential benefits. When the Federal Government
invests in high-risk, high-reward industries, the taxpayers of
the United States should share in the potential benefits and
not just the risks of the investment.
(7) It is in the economic interest of the United States to
ensure that resilient supply chains remain economically
competitive. Accordingly, it is crucial--
(A) for the Federal Government to invest in
building and retaining a vibrant manufacturing sector;
(B) for the Federal Government to invest in
manufacturing and production that leads to good jobs
for workers in the United States; and
(C) that investments in manufacturers in the United
States lead to good jobs for workers in the United
States.
(8) All too often, excessive short-termism precludes
companies in the United States from accessing investment
capital. It is in the interest of the Federal Government to
ensure that patient capital (or capital with an investment
horizon of not less than 7 years) is available to boost supply
chains and manufacturing in the United States. Innovative
industries, including industries described in, or that produce
the products described in, paragraph (5), suffer from limited
access to patient capital.
SEC. 102. ESTABLISHMENT OF CORPORATION.
(a) In General.--There is established within the executive branch
of the Federal Government the Industrial Finance Corporation of the
United States.
(b) Wholly Owned Government Corporation.--Section 9101(3) of title
31, United States Code, is amended by adding at the end the following:
``(Q) the Industrial Finance Corporation of the
United States.''.
(c) Statement of Policy.--It shall be the policy of the Corporation
to--
(1) provide support to ensure resilient supply chains in
industries that are critical to--
(A) the national security of the United States;
(B) the economic competitiveness of the United
States; and
(C) the maintenance of a strong manufacturing base
in the United States;
(2) provide support to manufacturing in the United States,
which is crucial to--
(A) growing the economy of the United States;
(B) providing good jobs and manufacturing skills
training to workers in the United States; and
(C) ensuring the economic and national security of
the United States;
(3) provide support to industries that are critical to
ensuring that companies in the United States commercialize
products on the technological frontier of production across a
wide array of goods and industries, including by helping vital
technologies (and products that use those technologies) make
the transition from universities and labs to commercial
success, including--
(A) technologies and products with civilian and
military applications, including applications described
in section 101(5); and
(B) other technologies that enhance the influence
of the United States through exportation to other
countries;
(4) restore the entrepreneurial dynamism of the economy of
the United States by supporting the growth of small- and
medium-sized businesses with not more than 500 employees--
(A) that support, or are capable of supporting, the
growth of the industries and products described in
paragraph (3) as contractors or customers, especially
in sectors such as manufacturing that compete in an
international marketplace;
(B) with innovative potential to increase the
productivity and economic development of the United
States; and
(C) that are--
(i) located in regions of the United States
that have historically suffered from low access
to capital; or
(ii) owned by an individual who is a member
of a demographic group that has historically
suffered from low access to capital; and
(5) provide support to critical industries that are
vulnerable to systematic patterns of underinvestment, import
competition, and targeted industrial policies from foreign
nations, in order to--
(A) ensure that those industries preserve and
ideally expand production capacity for consumers of
those industries; and
(B) invest in strategies to promote the deployment
of more advanced technologies.
(d) Support.--In providing support under title II, the Corporation
shall ensure that the support furthers not less than 1 policy described
in subsection (c).
SEC. 103. STRUCTURE AND ORGANIZATION.
(a) Structure of Corporation.--There shall be within the
Corporation--
(1) a Board of Directors;
(2) a Chief Executive Officer, as described in subsection
(d);
(3) a Deputy Chief Executive Officer, as described in
subsection (e);
(4) a Chief Risk Officer, as described in subsection (f);
(5) a Chief Development Officer, as described in subsection
(g);
(6) a Chief Technology and Data Officer, as described in
subsection (h); and
(7) such other officers as the Board may determine.
(b) Board of Directors.--
(1) Powers and duties.--
(A) In general.--Every power of the Corporation
shall vest in and be exercised by or under the
authority of the Board.
(B) Duties.--The Board--
(i) shall perform the functions required to
be carried out by the Board under this Act;
(ii) may prescribe, amend, and repeal
bylaws, rules, regulations, policies, and
procedures governing the manner in which the
business of the Corporation may be conducted
and in which the powers granted to the
Corporation by law may be exercised; and
(iii) shall develop, in consultation with
stakeholders and other interested parties, a
publicly available policy with respect to
consultations, hearings, and other forms of
engagement of the Board in order to provide for
meaningful public participation in the
activities of the Board.
(2) Membership of board.--
(A) In general.--The Board shall consist of--
(i) the Chief Executive Officer of the
Corporation;
(ii) the officers described in subparagraph
(B); and
(iii) 4 other individuals, who shall be
appointed by the President, by and with the
advice and consent of the Senate.
(B) Officers described.--
(i) In general.--The officers described in
this subparagraph are the following:
(I) The Secretary of the Treasury
or a designee of the Secretary.
(II) The Administrator of the Small
Business Administration or a designee
of the Administrator.
(III) The Secretary of Commerce or
a designee of the Secretary.
(IV) The Secretary of Defense or a
designee of the Secretary.
(V) The Chair of the Board of
Governors of the Federal Reserve System
or a designee of the Chair.
(ii) Requirements for designees.--A
designee under clause (i) shall--
(I) be selected from among
officers--
(aa) appointed by the
President, by and with the
advice and consent of the
Senate; and
(bb) with duties relating
to the programs of the
Corporation; and
(II) serve on the Board at the
pleasure of the President.
(C) Nongovernment members.--A member of the Board
described in subparagraph (A)(iii)--
(i) may not be an officer or employee of
the Federal Government;
(ii) shall have relevant experience to
carry out the purpose of the Corporation, which
may include experience relating to the private
sector, the environment, labor organizations,
or economic development;
(iii) shall be appointed for a term of 8
years and may be reappointed for 1 additional
term;
(iv) shall serve until the successor of the
member is appointed and confirmed;
(v) shall be compensated at a rate
equivalent to the rate under level IV of the
Executive Schedule under section 5315 of title
5, United States Code, when engaged in the
business of the Corporation; and
(vi) may be paid per diem in lieu of
subsistence at the applicable rate under the
Federal Travel Regulation under subtitle F of
title 41, Code of Federal Regulations, or any
successor regulations, from time to time, while
away from the home or usual place of business
of the member.
(D) Staggered terms.--Notwithstanding subparagraph
(C)(iii), in appointing the initial members of the
Board described in subparagraph (C), the President
shall stagger the terms of the members so that, during
any 2-year period, the term of not more than 1 member
ends.
(3) Chairperson.--The Secretary of the Treasury, or the
designee of the Secretary under paragraph (2)(B)(i)(I), shall
serve as the Chairperson of the Board.
(4) Vice chairperson.--The Administrator of the Small
Business Administration, or the designee of the Administrator
under paragraph (2)(B)(i)(II), shall serve as the Vice
Chairperson of the Board.
(5) Quorum.--5 members of the Board shall constitute a
quorum for the transaction of business by the Board.
(6) Affirmation of mission.--The members of the Board shall
affirm support for the mission and objectives of the
Corporation.
(c) Public Hearings.--The Board shall hold not less than 2 public
hearings annually in order to afford an opportunity for any person to
present views with respect to whether--
(1) the Corporation is carrying out its activities in
accordance with this Act; and
(2) any support provided by the Corporation under title II
should be suspended, expanded, or extended.
(d) Chief Executive Officer.--
(1) Appointment.--There shall be within the Corporation a
Chief Executive Officer, who shall--
(A) be appointed by the President, by and with the
advice and consent of the Senate; and
(B) serve at the pleasure of the President.
(2) Authorities and duties.--The Chief Executive Officer
shall--
(A) be responsible for the management of the
Corporation; and
(B) exercise the powers and discharge the duties of
the Corporation subject to the bylaws, rules,
regulations, and procedures established by the Board.
(3) Relationship to board.--The Chief Executive Officer
shall report to, and be under the direct authority of, the
Board.
(4) Compensation.--Section 5313 of title 5, United States
Code, is amended by adding at the end the following:
``Chief Executive Officer, Industrial Finance Corporation
of the United States.''.
(e) Deputy Chief Executive Officer.--There shall be within the
Corporation a Deputy Chief Executive Officer, who shall--
(1) be appointed by the President, by and with the advice
and consent of the Senate; and
(2) serve at the pleasure of the President.
(f) Chief Risk Officer.--
(1) Appointment.--Subject to the approval of the Board, the
Chief Executive Officer of the Corporation shall appoint a
Chief Risk Officer, from among individuals with experience at a
senior level in financial risk management, who shall--
(A) report directly to the Board; and
(B) be removable only by a majority vote of the
Board.
(2) Duties.--The Chief Risk Officer, in coordination with
the audit committee of the Board established under section
401(a), shall develop, implement, and manage a comprehensive
process for identifying, assessing, monitoring, and limiting
risks to the Corporation, including the overall portfolio
diversification of the Corporation.
(g) Chief Development Officer.--
(1) Appointment.--Subject to the approval of the Board, the
Chief Executive Officer shall appoint a Chief Development
Officer, who shall--
(A) report directly to the Board; and
(B) be removable only by a majority vote of the
Board.
(2) Duties.--The Chief Development Officer shall--
(A) in coordination with the Chief Technology and
Data Officer, develop, track, and report metrics to
assess the impact of the activities of the Corporation
with respect to the policies described in section
102(c);
(B) convene potential investment partners who can
provide additional private investments into projects
and companies supported by the Corporation;
(C) coordinate the development policies and
implementation efforts of the Corporation with--
(i) the Export-Import Bank of the United
States;
(ii) the United States International
Domestic Finance Corporation;
(iii) the Department of Commerce;
(iv) the Small Business Administration;
(v) the Manufacturing USA Institutes
described in section 34(d) of the National
Institute of Standards and Technology Act (15
U.S.C. 278s(d));
(vi) the manufacturing extension centers
established under section 25(b) of the National
Institute of Standards and Technology Act (15
U.S.C. 278k(b));
(vii) the Office of Science and Technology
Policy; and
(viii) other relevant Federal agencies;
(D) authorize and coordinate transfers of funds or
other resources to and from the Federal agencies
described in subparagraph (C) or Federal missions upon
the concurrence of those agencies or missions in
support of the projects of the Corporation; and
(E) serve as an ex officio member of the Advisory
Council established under subsection (j) and
participate in, or send a representative to, each
meeting of that Council.
(h) Chief Technology and Data Officer.--
(1) Appointment.--Subject to the approval of the Board, the
Chief Executive Officer shall appoint a Chief Technology and
Data Officer, who shall--
(A) report directly to the Board; and
(B) be removable only by a majority vote of the
Board.
(2) Duties.--The Chief Technology and Data Officer shall
ensure that the Corporation--
(A) collects proper data from each project; and
(B) develops and implements proper data analytics
within the Corporation to ensure that the Corporation
can analyze the data collected under subparagraph (A)
to--
(i) in coordination with the Chief
Development Officer, measure the impact of the
activities of the Corporation on the policies
described in section 102(c);
(ii) inform future activities of the
Corporation; and
(iii) provide publicly available reporting
on the activities of the Corporation, including
the impacts described in clause (i).
(i) Officers and Employees.--
(1) In general.--Except as otherwise provided in this
section, each officer, employee, and agent of the Corporation
shall be--
(A) selected and appointed by the Corporation; and
(B) vested with such powers and duties as the
Corporation may determine.
(2) Administratively determined employees.--
(A) Appointment; compensation; removal.--Of the
officers, employees, and agents appointed by the
Corporation under paragraph (1), not more than 250 may
be appointed, compensated, or removed without regard to
the provisions of title 5, United States Code.
(B) Reinstatement.--Under such regulations as the
President may prescribe, an officer, employee, or agent
appointed to a position under subparagraph (A) may be
entitled, upon removal from such position (unless the
removal was for cause), to--
(i) if the officer, employee, or agent
occupied a position in the Federal Government
on the day before the date on which the
officer, employee, or agent was appointed to
the Corporation under subparagraph (A),
reinstatement to that position; or
(ii) appointment to a position of
comparable grade and salary.
(C) Additional positions.--The officers, employees,
and agents described in subparagraph (A) shall be in
addition to officers, employees, and agents otherwise
authorized by law, including in positions authorized
under section 5108 of title 5, United States Code.
(D) Rates of pay for officers and employees.--The
Corporation may set and adjust rates of basic pay for
officers, employees, and agents appointed under
subparagraph (A) without regard to the provisions of
chapter 51 or subchapter III of chapter 53 of title 5,
United States Code, relating to classification of
positions and General Schedule pay rates, respectively.
(3) Liability of employees.--
(A) In general.--An individual who is a member of
the Board or an officer or employee of the Corporation
may not be liable under this Act with respect to any
claim arising out of or resulting from any act or
omission by the individual within the scope of the
employment of the individual in connection with any
transaction by the Corporation.
(B) Rule of construction.--Subparagraph (A) shall
not be construed to limit the personal liability of an
individual for--
(i) criminal acts or omissions;
(ii) willful or malicious misconduct;
(iii) acts or omissions for the private
gain of the individual or family members of the
individual; or
(iv) any other acts or omissions outside
the scope of the employment of the individual.
(C) Conflicts of interest.--The Corporation shall
establish and publish procedures for avoiding conflicts
of interest on the part of officers and employees of
the Corporation and members of the Advisory Council
established under subsection (j).
(D) Savings provision.--Nothing in this paragraph
shall be construed--
(i) to affect--
(I) any other immunities and
protections that may be available to an
individual described in subparagraph
(A) under applicable law with respect
to a transaction described in that
subparagraph; or
(II) any other right or remedy
against the Corporation, against the
United States under applicable law, or
against any person other than an
individual described in subparagraph
(A) participating in such a
transaction; or
(ii) to limit or alter in any way the
immunities that are available under applicable
law for Federal officers and employees not
described in this paragraph.
(j) Advisory Council.--
(1) In general.--There is established within the
Corporation an Advisory Council to advise the Board on
development objectives of the Corporation referred to in this
subsection as the ``Advisory Council''.
(2) Membership.--The Advisory Council shall consist of not
more than 9 members appointed by the Board, on the
recommendation of the Chief Executive Officer and the Chief
Development Officer of the Corporation, from among individuals
who are broadly representative of--
(A) nongovernmental organizations;
(B) think tanks;
(C) advocacy organizations;
(D) foundations; and
(E) other institutions engaged in manufacturing and
workforce development.
(3) Functions.--The Board shall call upon members of the
Advisory Council, either collectively or individually, to
advise the Board with respect to--
(A) the extent to which the Corporation is meeting
the mandate of the Corporation; and
(B) any suggestions for improvements with respect
to meeting that mandate, including project development
and implementation challenges and opportunities.
(4) Permanence.--Section 14 of the Federal Advisory
Committee Act (5 U.S.C. App.) shall not apply to the Advisory
Council.
SEC. 104. INSPECTOR GENERAL OF THE CORPORATION.
(a) In General.--Section 8G(a)(2) of the Inspector General Act of
1978 (5 U.S.C. App.) is amended by inserting ``the Industrial Finance
Corporation of the United States,'' after ``the United States
International Development Finance Corporation,''.
(b) Oversight Independence.--Section 8G(a)(4) of the Inspector
General Act of 1978 (5 U.S.C. App.) is amended--
(1) in subparagraph (I), by striking ``and'' at the end;
(2) in subparagraph (J), by adding ``and'' at the end; and
(3) by adding at the end the following:
``(K) with respect to the Industrial Finance
Corporation of the United States, such term means the
Board of Directors of the Industrial Finance
Corporation of the United States;''.
TITLE II--AUTHORITIES
SEC. 201. AUTHORITIES RELATING TO PROVISION OF SUPPORT.
(a) In General.--In carrying out this title, the Corporation
shall--
(1) exercise the authorities of the Corporation only to the
extent that such an exercise of authority--
(A) carries out a policy of the Corporation, as
described in section 102(c);
(B) mitigates risks to the taxpayers of the United
States by sharing risks with private sector entities
through co-financing and structuring of tools; and
(C) ensures that support provided under this title
is in addition to private sector resources by
mobilizing private capital that would otherwise not be
deployed without such support; and
(2) determine--
(A) the character and necessity of the obligations
and expenditures of the Corporation; and
(B) the manner in which the obligations and
expenditures described in subparagraph (A) shall be
incurred, allowed, and paid.
(b) Lending and Guaranties.--
(1) In general.--The Corporation may make loans or
guaranties upon such terms and conditions as the Corporation
may determine.
(2) Applicability of federal credit reform act of 1990.--
Loans and guaranties issued under paragraph (1) shall be
subject to the requirements of the Federal Credit Reform Act of
1990 (2 U.S.C. 661 et seq.).
(c) Programs and Facilities.--The Corporation may create programs,
facilities, or other entities determined necessary by the Corporation,
for the purpose of providing liquidity in markets and sectors integral
to the mission of the Corporation, by--
(1) purchasing obligations or other interests directly from
the issuers of those obligations or other interests;
(2) purchasing obligations or other interests in secondary
markets or otherwise; or
(3) making loans, including loans or other advances secured
by collateral.
(d) Equity Investments.--
(1) In general.--The Corporation may, as a minority
investor, support projects with funds or use other mechanisms
for the purpose of purchasing, and may make and fund
commitments to purchase, invest in, make pledges in respect of,
or otherwise acquire, equity or quasi-equity securities or
shares or financial interests of any entity, including as a
limited partner or other investor in investment funds, upon
such terms and conditions as the Corporation may determine.
(2) Guidelines and criteria.--The Corporation shall develop
guidelines and criteria to require that the use of the
authority under paragraph (1) with respect to a project has a
clearly defined developmental purpose, taking into account the
following objectives:
(A) The support for the project would be more
likely than not to substantially reduce or overcome the
effect of an identified market imperfection.
(B) The project would not have proceeded, or would
have been substantially delayed, without the support.
(C) The support will contribute positively to the
long-term commercial sustainability of the target
industry in the United States.
(D) The support furthers a policy of the
Corporation described in section 102(c).
(3) Limitations on equity investments.--
(A) Per project limit.--The aggregate amount of
support provided under this subsection with respect to
any project shall not exceed 30 percent of the
aggregate amount of all equity investment made to the
project at the time that the Corporation approves
support of the project, except that such percentage may
be raised with the unanimous consent of the Board.
(B) Total limit.--Support provided under this
subsection shall be limited to not more than 35 percent
of the aggregate exposure of the Corporation on the
date on which that support is provided, except that
such percentage may be raised with the unanimous
consent of the Board.
(4) Sales and liquidation of position.--The Corporation
shall seek to sell and liquidate any support for a project
provided under this subsection as soon as commercially
feasible, taking into consideration--
(A) the actions of other similar investors in the
project;
(B) how the interests of the taxpayers of the
United States will be served through equity
investments; and
(C) the national security interests of the United
States.
(5) Timetable.--The Corporation shall create a project-
specific timetable for support provided under this subsection.
(e) Promotion of and Support for Private Investment
Opportunities.--
(1) In general.--In order to carry out the policies
described in section 102(c), the Corporation may initiate and
support, through financial participation, incentive grants, or
otherwise, and under such terms and conditions as the
Corporation may determine, feasibility studies for the
planning, development, and management of, and procurement for,
potential bilateral and multilateral projects eligible for
support under this title, including training activities
undertaken in connection with those projects, for the purpose
of promoting investment in those projects and the
identification, assessment, surveying, and promotion of private
investment opportunities, utilizing wherever feasible and
effective, the facilities of private investors.
(2) Contributions to costs.--The Corporation shall, to the
maximum extent practicable, require any person receiving funds
under this subsection to--
(A) share the costs of feasibility studies and
other project planning services for which support is
provided under this subsection; and
(B) if the person succeeds in project
implementation, reimburse the Corporation for the
amount of support provided by the Corporation to the
person under this subsection.
(f) Special Projects and Programs.--The Corporation may administer
and manage special projects and programs in support of specific
transactions undertaken by the Corporation, including programs of
financial and advisory support that provide private technical,
professional, or managerial assistance in the development of human
resources, skills, technology, capital savings, or intermediate
financial and investment institutions or cooperatives.
(g) Asset Acquisition.--With respect to asset acquisition, the
Corporation may--
(1) acquire tangible and intangible assets at fair market
value; and
(2) engage in purchase order guarantees.
(h) Enterprise Funds.--
(1) In general.--The Corporation may, following
consultation with the Secretary of the Treasury and the heads
of other relevant Federal departments or agencies, establish
and operate enterprise funds in accordance with this
subsection.
(2) Private character of funds.--Nothing in this subsection
may be construed to make--
(A) an enterprise fund established or operated by
the Corporation an agency or establishment of the
United States Government; or
(B) any officer, employee, or member of the board
of directors of an enterprise fund described in
subparagraph (A) an officer or employee of the United
States.
(3) Purposes for which support may be provided.--The
Corporation, subject to the approval of the Board, may
designate private, nonprofit organizations as eligible to
receive support under this subsection for the following
purposes:
(A) To promote the development of domestic
manufacturing, the commercialization of advanced
technologies, and the building of resilient supply
chains.
(B) To facilitate access to credit or capital for
small- and medium-sized enterprises--
(i) in industry sectors or geographic areas
with limited means of accessing credit on
market terms; or
(ii) with owners who are members of
demographic groups that have historically had
limited access to private capital.
(C) To complement the work of the Small Business
Administration and the Economic Development
Administration of the Department of Commerce to improve
the overall business-enabling environment by financing
the expansion of the private business sector.
(D) To make financially sustainable investments
designed to generate measurable social benefits and
build technical capacity in addition to financial
returns.
(4) Operation of funds.--
(A) Expenditures.--Funds made available to an
enterprise fund established or operated under this
subsection shall be expended at the minimum rate
necessary to make timely payments for projects and
activities carried out under this subsection.
(B) Administrative expenses.--Not more than 3
percent per annum of the funds made available to an
enterprise fund established or operated under this
subsection may be obligated or expended for the
administrative expenses of the enterprise fund.
(5) Board of directors.--Each enterprise fund established
or operated under this subsection shall be governed by a board
of directors comprised of private citizens of the United
States--
(A) who--
(i) shall be appointed by the President
after consultation with the chairmen and
ranking members of the appropriate
congressional committees;
(ii) have pursued careers in innovative
technologies or manufacturing; and
(iii) have demonstrated expertise in
investment activities; and
(B) a majority of whom shall--
(i) be citizens of the United States; and
(ii) have relevant experience relating to
the purposes described in paragraph (3).
(6) Reports.--Not later than 1 year after the date on which
an enterprise fund is established under this subsection, and
annually thereafter until the enterprise fund terminates in
accordance with paragraph (9), the board of directors of the
enterprise fund shall--
(A) submit to the appropriate congressional
committees a report--
(i) detailing the administrative expenses
of the enterprise fund during the year covered
by the report;
(ii) describing the operations, activities,
engagement with civil society and relevant
local private sector entities, development
objectives and outcomes, financial condition,
and accomplishments of the enterprise fund
during the year covered by the report;
(iii) describing the results of any audit
conducted under paragraph (7) during the year
covered by the report; and
(iv) describing how audits conducted under
paragraph (7) during the year covered by the
report are informing the operations and
activities of the enterprise fund for the year
in which the report is submitted; and
(B) publish, on a publicly available internet
website of the enterprise fund, each report required
under subparagraph (A).
(7) Oversight.--
(A) Inspector general performance audits.--
(i) In general.--The Inspector General of
the Corporation shall conduct periodic audits
of the activities of each enterprise fund
established under this subsection.
(ii) Consideration.--In conducting an audit
under clause (i), the Inspector General shall
assess whether the activities of the enterprise
fund--
(I) support the purposes described
in paragraph (3);
(II) result in profitable private
sector investing; and
(III) generate measurable economic
and social benefits.
(B) Recordkeeping requirements.--The Corporation
shall ensure that each enterprise fund receiving
support under this subsection--
(i) keeps separate accounts with respect to
that support; and
(ii) maintains such records as may be
reasonably necessary to facilitate effective
audits under this paragraph.
(8) Return of funds to the corporate capital account.--Any
funds resulting from any liquidation, dissolution, or winding
up of an enterprise fund, in whole or in part, shall be
returned to the Corporate Capital Account established under
section 304(b).
(9) Termination.--The authority of an enterprise fund to
provide support under this subsection shall terminate on the
earlier of--
(A) the date that is 10 years after the date on
which amounts from the enterprise fund are first
expended; or
(B) the date on which the enterprise fund is
liquidated.
(i) Structured Finance.--With respect to structured finance, the
Corporation may--
(1) securitize an investment described in any of
subsections (a) through (h); and
(2) design and provide seed funding for new financing
vehicles that aggregate invested funds from businesses with not
more than 500 employees in order to attract larger private
capital providers, such as pension funds.
(j) Small Business Development.--
(1) In general.--The Corporation, in cooperation with
appropriate departments, agencies, and instrumentalities of the
United States, as well as private entities and others, shall
undertake activities to broaden the participation of United
States small businesses and cooperatives, and other small
United States investors, in the development of small private
enterprise.
(2) Outreach to minority-owned and women-owned
businesses.--
(A) In general.--The Corporation shall collect data
on the involvement of minority- and women-owned
businesses in projects, including--
(i) the amount of insurance and financing
provided by the Corporation to those businesses
in connection with projects supported by the
Corporation; and
(ii) to the extent such information is
available, the involvement of those businesses
in procurement activities conducted or
supported by the Corporation.
(B) Inclusion in annual report.--The Corporation
shall include, in each annual report submitted under
section 403, the aggregate data collected under this
paragraph, in such form as to quantify the
effectiveness of the outreach activities of the
Corporation with respect to minority- and women-owned
businesses.
(k) Private Investment Vehicles.--In addition to the other
authorities under this section, the Corporation may, as the Chief
Executive Officer of the Corporation determines necessary, create or
participate in any other investment vehicle used by investors in the
private sector, as determined by the Chief Executive Officer.
SEC. 202. TERMS AND CONDITIONS.
(a) In General.--Except as provided in subsection (b), support
provided by the Corporation under this title shall be on such terms and
conditions as the Corporation may prescribe.
(b) Requirements.--The following requirements apply to support
provided by the Corporation under this title:
(1) The Corporation shall provide support using authorities
under this title only if it is necessary--
(A) to alleviate a credit or capital market
imperfection; or
(B) to achieve specified development objectives of
the Government by providing support in the most
efficient way to meet those objectives on a case-by-
case basis.
(2) The final maturity of a loan made or guaranteed by the
Corporation shall not exceed the lesser of--
(A) 30 years; or
(B) the debt servicing capabilities of the project
to be financed by the loan, as determined by the
Corporation.
(3) The Corporation shall, with respect to providing any
loan guaranty to a project, require the parties to the project
to bear the risk of loss in an amount equal to not less than 20
percent of the guaranteed support by the Corporation in the
project.
(4) The Corporation may not make or guarantee a loan unless
the Corporation determines that the borrower or lender is
responsible and that adequate provision is made for servicing
the loan on reasonable terms and protecting the financial
interest of the United States.
(5) The interest rate for direct loans and interest
supplements on guaranteed loans shall be set by reference to a
benchmark interest rate (yield) on marketable Treasury
securities or other widely recognized or appropriate benchmarks
with a similar maturity to the loans being made or guaranteed,
as determined in consultation with the Director of the Office
of Management and Budget and the Secretary of the Treasury. The
Corporation shall establish appropriate minimum interest rates
for loans, guaranties, and other instruments as necessary.
(6) The minimum interest rate for new loans as established
by the Corporation shall be adjusted periodically to take
account of changes in the interest rate of the benchmark
financial instrument.
(7)(A) The Corporation shall set fees or premiums for
support provided under this title at levels that minimize the
cost to the Government while supporting achievement of the
objectives of support.
(B) The Corporation shall review fees for loan guaranties
periodically to ensure that the fees assessed on new loan
guaranties are at a level sufficient to cover the most recent
estimates of the Corporation of the costs of the Corporation.
(8) Any loan guaranty provided by the Corporation shall be
conclusive evidence that--
(A) the guaranty has been properly obtained;
(B) the loan qualified for the guaranty; and
(C) but for fraud or material misrepresentation by
the holder of the guaranty, the guaranty is presumed to
be valid, legal, and enforceable.
(9) The Corporation shall prescribe explicit standards for
use in periodically assessing the credit risk of new and
existing direct loans or guaranteed loans.
(10) The Corporation may not make loans or loan guaranties
except to the extent that budget authority to cover the costs
of the loans or guaranties is provided in advance in an
appropriations Act, as required by section 504 of the Federal
Credit Reform Act of 1990 (2 U.S.C. 661c).
(11) The Corporation shall rely upon specific standards to
assess the developmental and strategic value of projects and
should only provide the minimum level of support necessary in
order to support such projects.
(12) Any loan or loan guaranty made by the Corporation
should be provided on a senior basis or pari passu with other
senior debt unless there is a substantive policy rationale to
provide that support otherwise.
SEC. 203. PAYMENT OF LOSSES.
(a) Payments for Defaults on Guaranteed Loans.--
(1) In general.--If the Corporation determines that the
holder of a loan guaranteed by the Corporation suffers a loss
as a result of a default by a borrower on the loan, the
Corporation shall pay to the holder the percent of the loss, as
specified in the guaranty contract, after the holder of the
loan has made such further collection efforts and instituted
such enforcement proceedings as the Corporation may require.
(2) Subrogation.--Upon making a payment described in
paragraph (1), the Corporation shall ensure the Corporation
will be subrogated to all the rights of the recipient of the
payment.
(3) Recovery efforts.--The Corporation shall pursue
recovery from the borrower of the amount of any payment made
under paragraph (1) with respect to the loan.
(b) Limitation on Payments.--
(1) In general.--Except as provided in paragraph (2),
compensation for insurance, reinsurance, or a guaranty issued
under this title shall not exceed the dollar value of the
tangible or intangible contributions or commitments made in the
project, plus interest, earnings, or profits actually accrued
on those contributions or commitments, to the extent provided
by the insurance, reinsurance, or guaranty.
(2) Exception.--
(A) In general.--The Corporation may provide that--
(i) appropriate adjustments in the insured
dollar value be made to reflect the replacement
cost of project assets; and
(ii) compensation for a claim of loss under
insurance of an equity investment under section
201(d) may be computed on the basis of the net
book value attributable to the equity
investment on the date of loss.
(3) Additional limitation.--
(A) In general.--Notwithstanding paragraph
(2)(A)(ii) and except as provided in subparagraph (B),
the Corporation shall limit the amount of direct
insurance and reinsurance issued under section 201 with
respect to a project so as to require that the insured
and affiliates of the insured bear the risk of loss for
not less than 10 percent of the amount of the exposure
of the Corporation to that insured and affiliates of
the insured in the project.
(B) Exception.--The limitation under subparagraph
(A) shall not apply to direct insurance or reinsurance
of loans provided by banks or other financial
institutions to unrelated parties.
(c) Actions by Attorney General.--The Attorney General shall take
such action as may be appropriate to enforce any right accruing to the
United States as a result of the issuance of any loan or loan guaranty
under this title.
(d) Rule of Construction.--Nothing in this section shall be
construed to preclude any forbearance for the benefit of a borrower
that may be agreed upon by the parties to a loan guaranteed by the
Corporation if budget authority for any resulting costs to the
Government, as defined in section 502 of the Federal Credit Reform Act
of 1990 (2 U.S.C. 661a), is available.
TITLE III--ADMINISTRATIVE AND GENERAL PROVISIONS
SEC. 301. OPERATIONS.
(a) In General.--The Corporation may sue and be sued in its
corporate name.
(b) Judicial Remedy.--A court of competent jurisdiction may
prescribe a judicial remedy to the prevailing party in a lawsuit
involving the Corporation.
(c) Claims Settlement.--
(1) In general.--The Corporation may, on such terms and
conditions as the Corporation may determine--
(A) settle claims arising as a result of support
provided under title II; and
(B) arbitrate disputes arising as a result of
support provided under title II with the consent of the
parties.
(2) Settlements conclusive.--Notwithstanding any other
provision of law, a payment made under any settlement agreement
entered into under paragraph (1)(A), or as a result of an
arbitration award awarded under paragraph (1)(B), shall be
final and conclusive.
(d) Electronic Payments and Documents.--The Corporation shall
implement policies to accept electronic documents and electronic
payments in every program of the Corporation.
SEC. 302. CORPORATE POWERS.
(a) In General.--The Corporation--
(1) may adopt, alter, and use a seal, which may include an
identifiable symbol of the United States;
(2) notwithstanding division C of subtitle I of title 41,
United States Code, may make and perform with any person
contracts, including no-cost contracts (as defined by the
Corporation), grants, and other agreements, that are necessary
for carrying out the functions of the Corporation;
(3) may lease, purchase, or otherwise acquire, improve, and
use real property that is necessary to carry out the functions
of the Corporation;
(4) may accept cash gifts or donations of services or of
property (real, personal, or mixed), tangible or intangible,
for the purpose of carrying out the functions of the
Corporation;
(5) may use the United States mails in the same manner and
on the same conditions as the Executive departments (as defined
in section 101 of title 5, United States Code);
(6) may contract with individuals for personal services,
who shall not be considered Federal employees for any provision
of law administered by the Director of the Office of Personnel
Management;
(7) may hire or obtain passenger motor vehicles;
(8) may acquire, hold, or dispose of, upon such terms and
conditions as the Corporation may determine, any property,
real, personal, or mixed, tangible or intangible, or any
interest in such property;
(9) may lease office space for the Corporation's own use,
with the obligation of amounts for such lease limited to the
current fiscal year for which payments are due until the
expiration of the current lease under predecessor authority, as
of the day before the date of enactment of this Act;
(10) may indemnify directors, officers, employees, and
agents of the Corporation for liabilities and expenses incurred
in connection with their activities on behalf of the
Corporation;
(11) notwithstanding any other provision of law, may
represent itself or contract for representation in any legal or
arbitral proceeding;
(12) may exercise any priority of the Government of the
United States in collecting debts from bankrupt, insolvent, or
decedents' estates;
(13) may collect, notwithstanding section 3711(g)(1) of
title 31, United States Code, or compromise any obligations
assigned to or held by the Corporation, including any legal or
equitable rights accruing to the Corporation;
(14) may sell direct investments of the Corporation to
private investors upon such terms and conditions as the
Corporation may determine; and
(15) shall have such other powers as may be necessary and
incident to carrying out the functions of the Corporation.
(b) Treatment of Property.--Notwithstanding any other provision of
law relating to the acquisition, handling, or disposal of property by
the United States, the Corporation shall have the right in its
discretion to complete, recondition, reconstruct, renovate, repair,
maintain, operate, or sell any property acquired by the Corporation
pursuant to the provisions of this Act.
SEC. 303. MAXIMUM CONTINGENT LIABILITY.
(a) In General.--The maximum contingent liability of the
Corporation outstanding at any time shall not exceed in the aggregate
the greater of--
(1) the amount specified in subsection (b); or
(2) an amount equal to 10 times the balance of the
Corporate Capital Account.
(b) Amount Specified.--
(1) Initial 5-year period.--The amount specified in this
subsection for the 5-year period beginning on the date of
enactment of this Act is $500,000,000,000.
(2) Subsequent 5-year periods.--Not later than 5 years
after the date of enactment of this Act, and not less
frequently than every 5 years thereafter, the amount specified
in paragraph (1) shall be adjusted to reflect the percentage of
the increase (if any) in the average of the Consumer Price
Index for All Urban Consumers published by the Bureau of Labor
Statistics of the Department of Labor during the preceding 5-
year period.
SEC. 304. CORPORATE FUNDS.
(a) Definitions.--In this section:
(1) Administrative expenses.--The term ``administrative
expenses'' does not include project-specific transaction costs.
(2) Cost.--The term ``cost'' has the meaning given the term
in section 502 of the Federal Credit Reform Act of 1990 (2
U.S.C. 661a).
(3) Information technology.--The term ``information
technology'' has the meaning given the term in section 11101 of
title 40, United States Code.
(4) Project-specific transaction costs.--The term
``project-specific transaction costs''--
(A) means those costs incurred by the Corporation
for travel, legal expenses, and direct and indirect
costs incurred in claims settlements associated with
the provision of support under title; and
(B) does not include information technology.
(b) Corporate Capital Account.--There is established in the
Treasury of the United States a fund to be known as the ``Corporate
Capital Account'' to carry out the purposes of the Corporation.
(c) Funding.--The Corporate Capital Account shall consist of--
(1) fees charged and collected pursuant to subsection (d);
(2) any amounts received pursuant to subsection (f);
(3) investments and returns on such investments pursuant to
subsection (h);
(4) unexpended balances transferred to the Corporation;
(5) payments received in connection with settlements of all
insurance and reinsurance claims of the Corporation; and
(6) all other collections transferred to or earned by the
Corporation, excluding the cost of loans and loan guaranties.
(d) Fee Authority.--Fees may be charged and collected for providing
services in amounts to be determined by the Corporation.
(e) Uses.--
(1) In general.--Subject to Acts making appropriations, the
Corporation is authorized to pay--
(A) the cost of loans and loan guaranties;
(B) administrative expenses of the Corporation;
(C) for the cost of providing support authorized by
subsections (c), (e), (f), and (g) of section 201; and
(D) project-specific transaction costs.
(2) Income and revenue.--In order to carry out the purposes
of the Corporation, all collections transferred to or earned by
the Corporation, excluding the cost of loans and loan
guaranties, shall be deposited into the Corporate Capital
Account and shall be available to carry out its purpose,
including without limitation--
(A) payment of all insurance and reinsurance claims
of the Corporation;
(B) repayments to the Treasury of amounts borrowed
under subsection (f); and
(C) dividend payments to the Treasury under
subsection (g).
(f) Full Faith and Credit.--
(1) In general.--All support provided pursuant to
predecessor authorities or title II shall continue to
constitute obligations of the United States, and the full faith
and credit of the United States is hereby pledged for the full
payment and performance of such obligations.
(2) Bonds.--With the approval of the Secretary of the
Treasury, the Corporation is authorized to issue bonds, notes,
debentures, and other similar obligations, subject to the
maximum contingent liability established in Section 303. Such
obligations shall be in such forms and denominations, shall
have such maturities, shall bear such rates of interest, shall
be subject to such terms and conditions, and shall be issued in
such manner and sold at such prices as may be prescribed by the
Corporation with the approval of the Secretary of the Treasury.
Such obligations shall be fully and unconditionally guaranteed
both as to interest and principal by the United States, and
such guaranty shall be expressed on the face thereof, and such
obligations shall be lawful investments and may be accepted as
security for all fiduciary, trust, and public funds the
investment or deposit of which shall be under the authority or
control of the United States or any officer or officers
thereof.
(3) Authority to borrow.--The Corporation is authorized to
borrow from the Treasury such sums as may be necessary to
fulfill such obligations of the United States and any such
borrowing shall be at a rate determined by the Secretary of the
Treasury, taking into consideration the current average market
yields on outstanding marketable obligations of the United
States of comparable maturities, for a period jointly
determined by the Corporation and the Secretary, and subject to
such terms and conditions as the Secretary may require.
(4) Treatment of debt.--Any obligation of, or fully
guaranteed by, the Corporation shall be eligible for purchase
under section 14(b)(2) of the Federal Reserve Act (12 U.S.C.
355(b)(2)).
(g) Dividends.--The Board, in consultation with the Director of the
Office of Management and Budget, shall annually assess a dividend
payment to the Treasury if the Corporation's insurance portfolio is
more than 100 percent reserved.
(h) Investment Authority.--
(1) In general.--The Corporation may request the Secretary
of the Treasury to invest such portion of the Corporate Capital
Account as is not, in the Corporation's judgment, required to
meet the current needs of the Corporate Capital Account.
(2) Form of investments.--Such investments shall be made by
the Secretary of the Treasury in public debt obligations, with
maturities suitable to the needs of the Corporate Capital
Account, as determined by the Corporation, and bearing interest
at rates determined by the Secretary, taking into consideration
current market yields on outstanding marketable obligations of
the United States of comparable maturities.
(i) Collections.--Interest earnings made pursuant to subsection
(h), earnings collected related to equity investments, and amounts,
excluding fees related to insurance or reinsurance, collected pursuant
to subsection (d), shall not be collected for any fiscal year except to
the extent provided in advance in appropriations Acts.
(j) Authorization of Appropriations.--There is authorized to be
appropriated $50,000,000,000 to the Corporate Capital Account.
TITLE IV--MONITORING, EVALUATION, AND REPORTING
SEC. 401. ESTABLISHMENT OF RISK AND AUDIT COMMITTEES.
(a) In General.--Not later than 1 year after the date of enactment
of this Act, the Corporation shall establish--
(1) a risk committee; and
(2) an audit committee.
(b) Purpose.--The purpose of the committees established under
subsection (a) shall be to assist the Board in fulfilling the duties
and responsibilities of the Board under section 201(a).
(c) Duties and Responsibilities of Risk Committee.--Subject to the
direction of the Board, the risk committee established under subsection
(a) shall be responsible for--
(1) formulating risk management policies of the operations
of the Corporation;
(2) reviewing and providing guidance on the operation of
the global risk management framework of the Corporation;
(3) developing policies for enterprise risk management,
risk monitoring, and the management of strategic, reputational,
regulatory, operational, developmental, environmental, social,
and financial risks; and
(4) developing the risk profile of the Corporation,
including a risk management and compliance framework and
governance structure to support such framework.
(d) Duties and Responsibilities of Audit Committee.--Subject to the
direction of the Board, the audit committee established under
subsection (a) be responsible for--
(1) the integrity of--
(A) the financial reporting of the Corporation;
(B) systems of internal controls relating to
finance and accounting of the Corporation; and
(C) the financial statements of the Corporation;
(2) the performance of the internal audit function of the
Corporation; and
(3) the compliance of the Corporation with legal and
regulatory requirements relating to the finances of the
Corporation.
SEC. 402. PERFORMANCE MEASURES, EVALUATION, AND LEARNING.
(a) In General.--Not later than 1 year after the date of enactment
of this Act, the Corporation shall develop a performance measurement
system to--
(1) evaluate and monitor projects; and
(2) guide future projects.
(b) Considerations.--In developing the performance measurement
system required under subsection (a), the Corporation shall--
(1) develop an impact measurement system for measuring the
net effect of the activities of the Corporation on the policies
described in section 102(c);
(2) develop a mechanism for ensuring that support provided
by the Corporation for a project is in addition to private
investment for the project;
(3) develop standards for, and a method for ensuring,
appropriate financial performance of the portfolio of the
Corporation; and
(4) develop standards for, and a method for ensuring,
appropriate performance of the portfolio of the Corporation,
including--
(A) measurement of the projected and ex post impact
of a project; and
(B) the information necessary to comply with
section 403.
(c) Public Availability of Certain Information.--On a regular
basis, the Corporation shall make available to the public information
relating to--
(1) support provided by the Corporation under title II; and
(2) performance metrics about that support.
(d) Consultation.--In developing the performance measurement system
required under subsection (a), the Corporation shall consult with--
(1) the Advisory Council established under section 103(j);
and
(2) other stakeholders and interested parties engaged in
the policy of the Corporation described in section 102(c).
SEC. 403. ANNUAL REPORT.
(a) In General.--Not later than October 1 of each year, the
Corporation shall submit to the appropriate congressional committees a
complete and detailed report of the operations of the Corporation
during the preceding fiscal year, including an assessment of--
(1) the impacts of projects on the policies described in
section 102(c);
(2) the extent to which the operations of the Corporation
complement or are compatible with the domestic economic
development programs of the Federal Government;
(3) the institutional linkages of the Corporation with
other relevant Federal agencies and efforts to strengthen those
linkages; and
(4) the compliance of projects with Federal law and
policies that govern the support of the Corporation for
projects promulgated or otherwise administered by the
Corporation.
(b) Elements.--Each report required under subsection (a) shall
include analyses of the effects of projects, including--
(1) reviews and analyses of--
(A) the desired outcomes for projects and whether
or not the Corporation is meeting the associated
metrics, goals, and development objectives, including,
to the extent practicable, during the years after
conclusion of projects;
(B) the effect of the support of the Corporation on
access to capital;
(C) ways in which the Corporation addresses
identifiable market gaps or inefficiencies; and
(D) what impact, if any, the support described in
subparagraph (B) has on access to credit for a specific
project or sector;
(2) projections of--
(A) outcomes of projects and whether support for
those projects are meeting performance measures
associated with those projects--
(i) during the start-up phase of those
projects; and
(ii) throughout the duration of the those
projects; and
(B) the value of private sector assets brought to
bear relative to the amount of support provided by the
Corporation and the value of any other public sector
support; and
(3) an assessment of the extent to which the Corporation
has applied lessons learned from monitoring and evaluating
activities of the Corporation and annual reports from previous
years compiled by the Corporation to projects.
SEC. 404. QUARTERLY REPORT.
(a) In General.--Not later than 30 days after the date of enactment
of this Act, and quarterly thereafter, the Corporation shall submit to
the appropriate congressional committees a detailed report that--
(1) with respect to the first report submitted under this
section, describes the progress of the Corporation with respect
to the appointment and, if applicable, the confirmation of--
(A) members of the Board;
(B) the Chief Executive Officer of the Corporation;
(C) the Deputy Chief Executive Officer of the
Corporation; and
(D) other officers of the Corporation described in
section 103(a); and
(2) with respect to each report submitted thereafter,
covers the period beginning on the date of the most recent
submission of a report under this section and describes--
(A) new activities of the Corporation; and
(B) any activities of the Corporation that have
concluded.
(b) Contents.--Each report submitted under subsection (a) shall
include, with respect to support provided by the Corporation--
(1) the name of the entity receiving the support;
(2) the location of the entity receiving the support;
(3) the amount of support provided;
(4) the nature of the support;
(5) if applicable, the term or duration during which the
Corporation will provide the support;
(6) if applicable, the term over which the support will be
repaid to the Corporation; and
(7) any other relevant details determined important or
necessary by the Chief Executive Officer of the Corporation.
SEC. 405. PUBLICLY AVAILABLE PROJECT INFORMATION.
(a) In General.--The Corporation shall maintain a database with
detailed project-level information, as appropriate.
(b) Attributes.--The database maintained under subsection (a)
shall--
(1) be user-friendly;
(2) be publicly available; and
(3) to the extent practicable, include a description of the
support provided for each project, which should include, to the
extent feasible, the information included in the report to
Congress under section 403(a) relating to the project.
SEC. 406. ENGAGEMENT WITH INVESTORS.
(a) In General.--The Corporation, acting through the Chief
Development Officer, shall--
(1) develop a strategic relationship with private sector
entities focused at the nexus of business opportunities and
development priorities;
(2) engage the entities described in paragraph (1);
(3) reduce business risks primarily through direct
transaction support and the facilitation of investment
partnerships;
(4) develop and support tools, approaches, and
intermediaries that can mobilize private finance in support of
the policy described in section 101(c); and
(5) pursue projects consistent with the policy described in
section 101(c).
(b) Assistance.--To carry out the duties of the Corporation under
subsection (a), the Corporation shall--
(1) develop risk mitigation tools;
(2) provide transaction structuring support for blended
finance models;
(3) support intermediaries by linking capital supply and
demand;
(4) coordinate with other Federal agencies to support or
accelerate transactions;
(5) convene financial, donor, civil society, and public
sector partners around opportunities for private finance within
development priorities;
(6) offer strategic planning and programming assistance to
catalyze investment into priority sectors;
(7) provide transaction structuring support;
(8) deliver training and knowledge management tools for
engaging private investors;
(9) partner with private sector entities that provide
access to capital and expertise; and
(10) identify and screen new investment partners.
(c) Technical Assistance.--The Corporation shall coordinate with
the Small Business Administration, the Department of Commerce, the
Office of Science and Technology Policy, and other Federal agencies, as
necessary, on projects and programs supported by the Corporation that
include technical assistance.
SEC. 407. NOTIFICATIONS BY THE CORPORATION.
Not later than 15 days before the date on which the Corporation
makes a financial commitment associated with the provision of support
under title II in an amount greater than $10,000,000, the Chief
Executive Officer of the Corporation shall submit to the appropriate
congressional committees a report in writing that--
(1) contains the amount of the financial commitment;
(2) identifies the recipient or beneficiary of the
commitment; and
(3) describes the project, activity, or asset and the
development goal or purpose to be achieved by the commitment.
TITLE V--CONDITIONS, RESTRICTIONS, AND PROHIBITIONS
SEC. 501. LIMITATIONS AND PREFERENCES.
(a) Policies.--Not later than 1 year after the date of enactment of
this Act, the Chief Executive Officer of the Corporation, in
consultation with the Secretary of the Treasury, shall establish
policies to ensure that, with respect to support provided to an entity
under the activities of the Corporation under title II, the support--
(1) is contingent on the entity using the support to invest
in manufacturing activity in the United States;
(2) retains public benefits in the United States after the
date on which the support concludes according to binding
commitments that, as determined by the Chief Executive Officer
of the Corporation--
(A) are satisfactory; and
(B) remain in place for the longest feasible period
of time, consistent with sound economics and the
purposes of this Act; and
(3) contains safeguards to minimize the transfer of
intellectual property from companies in the United States to
foreign entities, especially to countries of concern, including
the People's Republic of China.
(b) Limitation on Support for Single Entity.--An entity receiving
support from the Corporation under title II may not receive more than
an amount that is equal to 5 percent of the maximum contingent
liability of the Corporation authorized under section 303.
(c) Promotion.--The Corporation shall make efforts to ensure that
the activities of the Corporation promote--
(1) regional diversity, such that businesses located in a
diverse range of States receive investment support under title
II;
(2) competition, such that target industries and sectors
maintain a competitive environment and are not controlled by
single entities;
(3) sustainability, such that raw materials sourcing and
manufacturing practices minimize environmental harm;
(4) equity, such that businesses from historically
marginalized communities receive business development support;
and
(5) fair labor, such that businesses with unionized
workforces are supported.
SEC. 502. ADDITIONALITY AND AVOIDANCE OF ADVERSE IMPACT.
(a) In General.--Before the Corporation provides support for a
project, the Corporation shall ensure that private sector entities are
afforded an opportunity to support the project.
(b) Safeguards, Policies, and Guidelines.--The Corporation shall
develop appropriate safeguards, policies, and guidelines to ensure that
support provided by the Corporation under title II--
(1) supplements, encourages, and does not compete with
private sector support; and
(2) does not have a significant adverse impact on
employment in the United States.
SEC. 503. PREVAILING WAGES.
Section 602 of the Public Works and Economic Development Act of
1965 (42 U.S.C. 3212) shall apply to a construction project that
receives financial assistance from the Corporation. For purposes of
applying such section 602 to such a project, any reference in such
section 602--
(1) to a project assisted by the Secretary of Commerce
under such Act shall be deemed to be reference to a project
that receives financial assistance from the Corporation; and
(2) to the Secretary of Commerce shall be deemed to be a
reference to the Corporation.
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