,i #aadth ,,congress #b;d ,session ,h4 ,r4 #eaac ,,in ,,the ,,house ,,of ,,representatives ,april #bh1 #bjaf ,mrs4 ,carolyn ,b4 ,maloney of ,new ,york 7for herself1 ,ms4 ,velzquez1 ,ms4 ,hahn1 ,mr4 ,vargas1 ,mr4 ,rangel1 ,ms4 ,moore1 ,mr4 ,johnson of ,georgia1 ,ms4 ,clarke of ,new ,york1 ,mr4 ,hinojosa1 ,ms4 ,norton1 ,mr4 ,honda1 and ,mr4 ,richmond7 introduced the following bill2 which was referred to the ,committee on ,financial ,services ,a ,,bill ,to encourage initiatives for financial products and services that are appropriate and accessible for millions of ,american small businesses that do not have access to the financial mainstream4 #a4 ,short title ,this ,act may be cited as the ,investing in ,america's ,small ,businesses ,act of #bjaf4 #b4 ,findings ,the ,congress finds the following3 7#a7 ,small businesses in underserved areas have for generations been unable to access affordable credit4 7#b7 ,a #bjac report commissioned by the ,u4,s4 ,small ,business ,administration shows the major constraint limiting the growth1 expansion1 and wealth creation of small firms--especially women- and minority-owned businesses--is inadequate capital4 7#c7 ,small businesses revitalize communities by creating jobs1 and also contribute to the local tax base1 which helps finance investments in schools1 hospitals1 infrastructure1 and public safety4 7#d7 ,a #bjae report from the ,carsey ,school of ,public ,policy at the ,university of ,new ,hampshire found that #gi percent of ,,cdfi loan volume went to borrowers from underserved populations4 7#e7 ,during the financial crisis1 ,,cdfi loan funds expanded their activity to meet increased demand from borrowers that could not access traditional lending4 ,from #bjjf to #bjji1 the median fund deployment ratio grew #c4a percent annually4 7#f7 ,after ,superstorm ,sandy1 ,c,d,f,is launched disaster recovery loan programs and reached out to affected businesses and organizations to provide credit to help grocery stores and social service organizations re-open to help communities in need4 7#g7 ,a #bjad report by the ,dardin ,school of ,business at the ,university of ,virginia found that despite serving predominately low-income markets1 ,,cdfi banks and credit unions had virtually the same level of performance as mainstream financial institutions4 #c4 ,grants to establish loan-loss reserve funds for small business lending 7a7 ,in general ,the ,community ,development ,banking and ,financial ,institutions ,act of #aiid 7#ab ,u4,s4,c4 #dgja et seq47 is amended by adding at the end the following3 #abc4 ,grants to establish loan-loss reserve funds for small business lending 7a7 ,purposes ,the purposes of this section are-- 7#a7 to make financial assistance available from the ,fund in order to help community development financial institutions defray the costs of operating small business loan programs1 by providing the amounts necessary for such institutions to establish their own loan loss reserve funds to mitigate some of the losses on such small business loan programs2 7#b7 to encourage community development financial institutions to establish and maintain small business loan programs that would help provide borrowers access to mainstream financial institutions and combat high cost small business lending2 and 7#c7 to encourage community development financial institutions to expand the development services they offer and to serve new investment areas and new targeted populations4 7b7 ,grants 7#a7 ,loan-loss reserve fund grants 7,a7 ,in general ,the ,fund shall make grants to community development financial institutions to enable such institutions to establish a loan-loss reserve fund in order to defray the costs of a small business loan program established or maintained by such institution4 7,b7 ,application ,a community development financial institution that wishes to receive a grant under this paragraph shall submit an application to the ,administrator in such form and manner and containing such information as the ,administrator may require4 7,c7 ,matching requirement ,a community development financial institution shall provide non-,federal matching funds in an amount equal to #ej percent of the amount of any grant received under this paragraph4 7,d7 ,use of funds ,any grant amounts received by a community development financial institution under this paragraph-- 7i7 may not be used by such institution to provide direct loans to small businesses2 7ii7 may be used by such institution to help recapture a portion or all of a defaulted loan made under the small business loan program of such institution on or after the date of the enactment of this section2 and 7iii7 may be used to designate and utilize a fiscal agent for services normally provided by such an agent4 7#b7 ,technical assistance grants 7,a7 ,in general ,the ,fund shall make technical assistance grants to community development financial institutions to create1 support1 or maintain a small business loan program4 ,any grant amounts received under this paragraph may be used for-- 7i7 technology1 staff support1 staff capacity building1 and other costs associated with establishing1 supporting1 or maintaining a small business loan program2 and 7ii7 establishing1 supporting1 or maintaining technical assistance programs for borrowers4 7,b7 ,application ,a community development financial institution that wishes to receive a grant under this paragraph shall submit an application to the ,administrator in such form and manner and containing such information as the ,administrator may require4 7c7 ,reports ,for each fiscal year for which grants are made under this section1 the ,administrator shall submit a report to the ,committee on ,financial ,services of the ,house of ,representatives and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate containing a description of the activities funded and amounts distributed under this section for such fiscal year1 as well as measurable results of such actions4 7d7 ,authorization of appropriations 7#a7 ,in general ,there are authorized to be appropriated to the ,fund #be1jjj1jjj for each of fiscal years #bjag to #bjbb to carry out this section4 7#b7 ,administrative costs ,there are authorized to be appropriated to the ,fund #b1jjj1jjj for each of fiscal years #bjag to #bjbb for the administrative costs of carrying out this section4 7e7 ,definitions ,for purposes of this section3 7#a7 ,small business ,the term small business has the meaning given the term small business concern under section #c7;a7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcb7;a774 7#b7 ,small business loan program ,the term small business loan program means a loan program wherein a community development financial institution offers loans to small businesses that-- 7,a7 are made in amounts not exceeding #ej1jjj2 7,b7 have no pre-payment penalty2 and 7,c7 meet any other affordability requirements as may be established by the ,administrator4 4 7b7 ,conforming amendment ,the table of contents for the ,riegle ,community ,development and ,regulatory ,improvement ,act of #aiid is amended by inserting after the item relating to section #aba the following3 ,sec4 #abb4 ,grants to establish loan-loss reserve funds4 ,sec4 #abc4 ,grants to establish loan-loss reserve funds for small business lending4 4