,i #aafth ,,congress #b;d ,session ,h4 ,r4 #giic ,,in ,,the ,,house ,,of ,,representatives ,august #g1 #bjbj ,ms4 ,waters 7for herself1 ,mr4 ,clay1 ,mr4 ,green of ,texas1 ,mr4 ,gonzalez of ,texas1 ,mr4 ,lawson of ,florida1 ,ms4 ,pressley1 ,ms4 ,tlaib1 ,ms4 ,adams1 ,mr4 ,phillips1 ,ms4 ,garcia of ,texas1 ,mr4 ,cleaver1 ,mrs4 ,beatty1 ,mr4 ,garca of ,illinois1 ,mr4 ,david ,scott of ,georgia1 ,mr4 ,gottheimer1 and ,mr4 ,meeks7 introduced the following bill2 which was referred to the ,committee on ,financial ,services1 and in addition to the ,committee on ,small ,business1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to support the efforts of ,community ,development ,financial ,institutions 7,c,d,f,is71 minority ,c,d,f,is1 and minority depository institutions to serve consumers1 small businesses1 and minority-owned businesses1 especially in low-income and underserved communities1 and for other purposes4 #a4 ,short title2 ,table of contents 7a7 ,short title ,this ,act may be cited as the ,promoting and ,advancing ,communities of ,color through ,inclusive ,lending ,act4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4 ,sec4 #b4 ,findings2 sense of ,congress4 ,sec4 #c4 ,strengthening minority community development financial institutions4 ,sec4 #d4 ,community ,development ,financial ,institutions ,fund4 ,sec4 #e4 ,minimum issuance amounts under the ,,cdfi ,bond ,guarantee ,program4 ,sec4 #f4 ,community ,capital ,investment ,program4 ,sec4 #g4 ,ensuring ,diversity in ,community ,banking4 ,sec4 #h4 ,establishment of ,financial ,agent ,mentor-,protg ,program4 ,sec4 #i4 ,study and report with respect to impact of programs on low- and moderate-income and minority communities4 #b4 ,findings2 ,sense of ,congress 7a7 ,findings ,the ,congress finds the following3 7#a7 ,the ,coronavirus #bjai 7,,covid-#ai7 pandemic and the resulting recession have led to more than #d4h million cases and at least #aeg1jjj deaths in the ,united ,states as of ,august #f1 #bjbj2 a #g4f percent increase in the unemployment rate from ,february to ,june1 or approximately #ab million more persons who have lost their job2 and an estimated #cf percent of renters and #d4a million homeowners who are struggling to pay their rent and mortgages4 7#b7 ,according to the ,centers for ,disease ,control1 long-standing systemic health and social inequities have put some members of racial and ethnic minority groups at increased risk of getting ,,covid-#ai or experiencing severe illness4 7#c7 ,minority-owned businesses are also facing more difficult economic circumstances than others as a result of the ,,covid-#ai pandemic4 ,in ,april #bjbj1 the ,federal ,reserve ,bank of ,new ,york reported that minority- and women-owned businesses were not only more likely to show signs of limited financial health1 but also twice as likely to be classified as at risk or distressed than their non-minority counterparts4 7#d7 ,during the ,coronavirus #bjai 7,,covid-#ai7 pandemic1 community development financial institutions 7,c,d,f,is7 and minority depository institutions 7,m,d,is7 have delivered needed capital and relief to underserved communities1 many of which have borne a disproportionate impact of the ,,covid-#ai pandemic4 ,through ,july #ca1 #bjbj1 ,c,d,f,is and ,m,d,is have provided more than #af4b billion in ,paycheck ,protection ,program 7,,ppp7 loans to small businesses with a smaller median loan size of about #ge1jjj compared to the overall program median loan size of #ajc1jjj4 7#e7 ,in addition to establishing relief funds and services for local businesses and individuals experiencing loss of income1 ,c,d,f,is and ,m,d,is have provided mortgage forbearances1 loan deferments1 and modifications to help address the needs of their borrowers4 ,c,d,f,is and ,m,d,is are reaching underserved communities and minority-owned businesses at a critical time4 7#f7 ,the ,community ,development ,financial ,institutions ,fund 7,,cdfi ,fund7 is an agency of the ,u4,s4 ,department of the ,treasury and was established by the ,riegle ,community ,development and ,regulatory ,improvement ,act of #aiid4 ,the mission of the ,,cdfi ,fund is to expand economic opportunity for underserved people and communities by supporting the growth and capacity of a national network of community development lenders1 investors1 and financial service providers4 ,as of ,july #ac1 #bjbj1 there were #a1abi certified ,c,d,f,is in all #ej ,states1 ,district of ,columbia1 ,guam1 and ,puerto ,rico4 7#g7 ,following the #bjjh financial crisis and the disproportionate impact the ,great ,recession had on minority communities1 the number of ,,mdi banks fell more than #cj percent over the following decade1 to #adc as of the first quarter of #bjbj4 ,meanwhile1 ,,mdi credit unions have seen similar declines1 with more than one-third of such institutions disappearing since #bjac4 7#h7 ,the ,committee on ,financial ,services of the ,house of ,representatives has examined the importance of ,c,d,f,is and ,m,d,is through three hearings held during the #aafth ,congress4 ,at these hearings1 the ,committee received testimony from #ac witnesses1 most of whom were representatives of ,c,d,f,is or ,m,d,is1 and four of whom were ,federal regulators4 ,these hearings include3 7,a7 ,october #bb1 #bjai1 ,an ,examination of the ,decline of ,minority ,depository ,institutions and the ,impact on ,underserved ,communities4 7,b7 ,november #bj1 #bjai1 ,an ,examination of ,regulators' ,efforts to ,preserve and ,promote ,minority ,depository ,institutions4 7,c7 ,june #c1 #bjbj1 ,virtual ,hearing--,promoting ,inclusive ,lending ,during the ,pandemic3 ,community ,development ,financial ,institutions and ,minority ,depository ,institutions4 ,at these hearings1 the ,committee discussed the opportunities and challenges facing ,c,d,f,is and ,m,d,is4 ,the ,committee discussed #i different pieces of legislation to address some of these challenges and fully support the work of ,m,d,is and ,c,d,f,is4 7b7 ,sense of ,congress ,the following is the sense of the ,congress3 7#a7 ,the ,department of the ,treasury1 ,board of ,governors of the ,federal ,reserve ,system1 ,small ,business ,administration 7,,sba71 ,office of the ,comptroller of the ,currency1 ,federal ,deposit ,insurance ,corporation1 ,national ,credit ,union ,administration1 and other ,federal agencies should take steps to support1 engage with1 and utilize minority depository institutions and community development financial institutions in the near term1 especially as they carry out programs to respond to the ,,covid-#ai pandemic1 and the long term4 7#b7 ,the ,department of the ,treasury and prudential regulators should establish a strategic plan identifying concrete steps that they can take to support existing minority depository institutions1 as well as the formation of new minority depository institutions consistent with the goals established in the ,financial ,institutions ,reform1 ,recovery1 and ,enforcement ,act of #aihi 7,,firrea7 to preserve and promote minority depository institutions4 7#c7 ,congress should increase funding and make other enhancements1 including those provided by this legislation1 to enhance the effectiveness of the ,,cdfi ,fund1 especially reforms to support minority-owned and minority led ,c,d,f,is in times of crisis and beyond4 7#d7 ,congress should conduct robust and ongoing oversight of the ,department of the ,treasury1 ,,cdfi ,fund1 ,federal prudential regulators1 ,,sba1 and other ,federal agencies to ensure they fulfill their obligations under the law as well as implement this ,act and other laws in a manner that supports and fully utilizes minority depository institutions and community development financial intuitions1 as appropriate4 #c4 ,strengthening minority community development financial institutions 7a7 ,minority community development financial institution set-,aside in providing assistance 7#a7 ,in general ,section #ajh of the ,community ,development ,banking and ,financial ,institutions ,act of #aiid 7#ab ,u4,s4,c4 #dgjg7 is amended by adding at the end the following3 7i7 ,minority community development financial institution set-,aside in providing assistance ,notwithstanding any other provision of law1 in providing any assistance1 the ,fund shall reserve #dj percent of such assistance for minority community development financial institutions4 4 7#b7 ,definitions ,section #ajc of the ,community ,development ,banking and ,financial ,institutions ,act of #aiid 7#ab ,u4,s4,c4 #dgjb7 is amended by adding at the end the following3 7#bb7 ,minority community development financial institution definitions 7,a7 ,minority ,the term minority means any ,black ,american1 ,native ,american1 ,hispanic ,american1 or ,asian ,american4 7,b7 ,minority community development financial institution ,the term minority community development financial institution means a community development financial institution that-- 7i7 if a privately owned institution1 #ea percent is owned by one or more socially and economically disadvantaged individuals2 7ii7 if publicly owned1 #ea percent of the stock is owned by one or more socially and economically disadvantaged individuals2 7iii7 in the case of a mutual institution1 where the majority of the ,board of ,directors1 account holders1 and the community which the institution services is predominantly minority2 and 7iv7 in the case of any other institution1 is a minority-owned or minority-led institution1 as determined by the ,administrator4 4 7b7 ,office of ,minority ,community ,development ,financial ,institutions ,section #ajd of the ,community ,development ,banking and ,financial ,institutions ,act of #aiid 7#ab ,u4,s4,c4 #dgjc7 is amended by adding at the end the following3 7l7 ,office of ,minority ,community ,development ,financial ,institutions 7#a7 ,establishment ,there is established within the ,fund an ,office of ,minority ,community ,development ,financial ,institutions1 which shall oversee assistance provided by the ,fund to minority community development financial institutions4 7#b7 ,deputy ,director ,the head of the ,office shall be the ,deputy ,director of ,minority ,community ,development ,financial ,institutions1 who shall report directly to the ,administrator of the ,fund4 4 7c7 ,reporting on minority community development financial institutions ,section #aag of the ,community ,development ,banking and ,financial ,institutions ,act of #aiid 7#ab ,u4,s4,c4 #dgaf7 is amended by adding at the end the following3 7g7 ,reporting on minority community development financial institutions ,each report required under subsection 7a7 shall include a description of the extent to which assistance from the ,fund are provided to minority community development financial institutions4 4 #d4 ,community ,development ,financial ,institutions ,fund 7a7 ,in ,general ,of any unobligated amounts that were appropriated to the fund established under section #ecjb7;a77#a7 of title #ca1 ,united ,states ,code1 by section #djbg of the ,,cares ,act 7#ae ,u4,s4,c4 #ijfa71 #e1jjj1jjj1jjj shall be transferred to the ,community ,development ,financial ,institutions ,fund for fiscal years #bjbj and #bjba1 for providing financial assistance and technical assistance under subparagraphs 7,a7 and 7,b7 of section #ajh7;a77#a7 of the ,community ,development ,banking and ,financial ,institutions ,act of #aiid 7#ab ,u4,s4,c4 #dgjg7;a77#a771 except that subsections 7d7 and 7e7 of such section #ajh shall not apply to the provision of such assistance1 for the ,bank ,enterprise ,award program1 and for financial assistance1 technical assistance1 training1 and outreach programs designed to benefit ,native ,american1 ,native ,hawaiian1 and ,alaska ,native communities and provided primarily through qualified community development lender organizations with experience and expertise in community development banking and lending in ,indian country1 ,native ,american organizations1 ,tribes and ,tribal organizations1 and other suitable providers4 ,of such amount1 not less than #b1jjj1jjj1jjj shall be for providing financial assistance1 technical assistance1 awards1 training1 and outreach programs described above to recipients that are minority lending institutions4 7b7 ,definitions ,for purposes of this section3 7#a7 ,minority lending institution ,the term minority lending institution means any depository institution1 loan fund1 or other financial institution that-- 7,a7 if a privately owned institution1 #ea percent is owned by one or more socially and economically disadvantaged individuals2 7,b7 if publicly owned1 #ea percent of the stock is owned by one or more socially and economically disadvantaged individuals2 7,c7 in the case of a mutual institution1 where the majority of the ,board of ,directors1 account holders1 and the community which it services is predominantly minority2 and 7,d7 in the case of any other institution1 is a minority-owned or minority-led institution1 as determined by the ,administrator of the ,community ,development ,financial ,institutions ,fund4 7#b7 ,minority ,the term minority means any ,black ,american1 ,native ,american1 ,hispanic ,american1 or ,asian ,american4 #e4 ,minimum issuance amounts under the ,,cdfi ,bond ,guarantee ,program 7a7 ,reduction for fiscal year #bjbj 7#a7 ,in general ,section #aad;,a7e77#b77;,b7 of the ,riegle ,community ,development and ,regulatory ,improvement ,act of #aiid 7#ab ,u4,s4,c4 #dgac;a7e77#b77;,b77 is amended by striking #ajj1jjj1jjj and inserting #be1jjj1jjj4 7#b7 ,rule of application ,the ,notice of ,guarantee ,availability issued for the ,bond ,guarantee ,program in fiscal year #bjai 7,,cfda #ba4jaa7 shall apply for purposes of carrying out the ,program 7as defined under section #aad;,a7a7 of the ,riegle ,community ,development and ,regulatory ,improvement ,act of #aiid7 with regard to commitments to guarantee bonds and notes during fiscal year #bjbj4 7b7 ,permanent adjustment ,effective ,october #a1 #bjbj1 section #aad;,a7e77#b77;,b7 of the ,riegle ,community ,development and ,regulatory ,improvement ,act of #aiid 7#ab ,u4,s4,c4 #dgac;a7e77#b77;,b77 is amended by striking #be1jjj1jjj and inserting #ej1jjj1jjj4 #f4 ,community ,capital ,investment ,program ,section #djjc of the ,,cares ,act 7#ae ,u4,s4,c4 #ijdb7 is amended by adding at the end the following3 7i7 ,community ,capital ,investment ,program 7#a7 ,in general ,the ,secretary of the ,treasury shall establish a ,community ,capital ,investment ,program 7the ,program7 to support the efforts of community investment institutions to provide loans and forbearance for small businesses1 minority-owned businesses1 and consumers1 especially in low-income and underserved communities1 by-- 7,a7 providing direct capital investments in community investment institutions2 and 7,b7 providing loans to community investment institutions-- 7i7 that are interest-free loans2 7ii7 that have a loan term of #e years2 and 7iii7 with respect to which no loan payment is required until at least the end of the #f-month period beginning on the date the loan is made1 or such longer term as the ,secretary may determine appropriate4 7#b7 ,application date ,the ,secretary shall begin accepting applications for capital investments and loans under the ,program not later than the end of the #aj-;day period beginning on the date of enactment of this subsection4 7#c7 ,community ,investment ,plan ,at the time that an applicant submits an application to the ,secretary for a capital investment under the ,program1 the applicant shall-- 7,a7 provide the ,secretary with a ,community ,investment ,plan that specifies how the applicant intends to use the capital investment or loans made available under the ,program to provide loans and forbearance for small businesses1 minority-owned businesses1 and consumers1 especially in low-income and underserved communities2 and 7,b7 include with such application an attestation by the applicant that the applicant-- 7i7 does not own1 service1 or offer any financial product at an annual percentage rate of more than #cf percent interest1 as defined in section #ihg7;i77#d7 of title #aj1 ,united ,states ,code2 and 7ii7 is compliant with all ,state interest rate laws4 7#d7 ,dividend rate ,any preferred stock or other financial instrument issued to the ,secretary in exchange for a capital investment under the ,program shall carry a dividend or interest rate that does not exceed #a percent4 7#e7 ,restrictions ,the restrictions described under subsection 7c77#c77;,a77ii7 shall apply to capital investments and loans made under this subsection4 7#f7 ,available amounts ,in carrying out the ,program1 the ,secretary shall use amounts made available under subsection 7b71 notwithstanding the limitations on the use of such funds under paragraphs 7#a7 through 7#d7 of such subsection 7b74 7#g7 ,,mdi set-aside ,at least #c1jjj1jjj1jjj of the direct capital investments and loans made by the ,secretary under the ,program shall be made to minority depository institutions4 7#h7 ,treatment of capital investments ,in making any capital investment under the ,program1 the ,secretary shall ensure that the terms of the investment are designed to ensure the investment receives ,tier #a capital treatment4 7#i7 ,collection of data ,notwithstanding the ,equal ,opportunity ,credit ,act 7#ae ,u4,s4,c4 #afia et seq47-- 7,a7 a community investment institution may collect data described in section #gja7;a77#a7 of that ,act 7#ae ,u4,s4,c4 #afia7;a77#a77 from borrowers and applicants for credit for the purpose of monitoring compliance under the ,community ,investment ,plan required under paragraph 7#c72 and 7,b7 a community investment institution that collects the data described in subparagraph 7,a7 shall not be subject to adverse action related to that collection by the ,bureau of ,consumer ,financial ,protection or any other ,federal agency4 7#aj7 ,definitions ,in this subsection1 subsection 7j71 and subsection 7k73 7,a7 ,community investment institution ,the term community investment institution means-- 7i7 a community development financial institution1 as defined under section #ajc of the ,riegle ,community ,development and ,regulatory ,improvement ,act of #aiid 7#ab ,u4,s4,c4 #dgjb72 7ii7 an impact credit union2 7iii7 an impact bank2 and 7iv7 a minority depository institution1 as defined under section #cjh of the ,financial ,institutions ,reform1 ,recovery1 and ,enforcement ,act of #aihi 7#ab ,u4,s4,c4 #adfc note74 7,b7 ,credit union ,the term credit union has the meaning given the terms ,state credit union and ,federal credit union under section #aja of the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #ageb74 7,c7 ,impact credit union ,the term impact credit union means a credit union that-- 7i7 has total consolidated assets of less than #aj1jjj1jjj1jjj2 and 7ii7 extends at least #ej percent of the loans extended by the credit union to borrowers who are low-income borrowers1 as determined by the ,secretary4 7,d7 ,impact bank ,the term impact bank means a depository institution 7as defined under section #c of the ,federal ,deposit ,insurance ,act7 that-- 7i7 has total consolidated assets of less than #aj1jjj1jjj1jjj2 and 7ii7 extends at least #ej percent of the loans extended by the institution to borrowers who are low-income borrowers1 as determined by the ,secretary4 7j7 ,application of the ,military lending ,act 7#a7 ,in general ,no community investment institution that receives an equity investment under subsection 7i7 shall1 for so long as the investment continues1 make any loan at an annualized percentage rate above #cf percent1 as determined in accordance with section #ihg7;b7 of title #aj1 ,united ,states ,code 7commonly known as the ,military ,lending ,act74 7#b7 ,no exemptions permitted ,the exemption authority of the ,bureau under section #aje7;f7 of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afjd7;f77 shall not apply with respect to this subsection4 4 #g4 ,ensuring ,diversity in ,community ,banking 7a7 ,sense of ,congress on funding the loan-,loss reserve fund for small dollar loans ,the sense of ,congress is the following3 7#a7 ,the ,community ,development ,financial ,institutions ,fund 7the ,,cdfi ,fund7 is an agency of the ,department of the ,treasury1 and was established by the ,riegle ,community ,development and ,regulatory ,improvement ,act of #aiid4 ,the mission of the ,,cdfi ,fund is to expand economic opportunity for underserved people and communities by supporting the growth and capacity of a national network of community development lenders1 investors1 and financial service providers4 ,a community development financial institution 7a ,,cdfi7 is a specialized financial institution serving low-income communities and a ,community ,development ,entity 7a ,,cde7 is a domestic corporation or partnership that is an intermediary vehicle for the provision of loans1 investments1 or financial counseling in low-income communities4 ,the ,,cdfi ,fund certifies ,c,d,f,is and ,c,d,es4 ,becoming a certified ,,cdfi or ,,cde allows organizations to participate in various ,,cdfi ,fund programs as follows3 7,a7 ,the ,bank ,enterprise ,award ,program1 which provides ,,fdic-insured depository institutions awards for a demonstrated increase in lending and investments in distressed communities and ,c,d,f,is4 7,b7 ,the ,,cdfi ,program1 which provides ,financial and ,technical ,assistance awards to ,c,d,f,is to reinvest in the ,,cdfi1 and to build the capacity of the ,,cdfi1 including financing product development and loan loss reserves4 7,c7 ,the ,native ,american ,,cdfi ,assistance ,program1 which provides ,c,d,f,is and sponsoring entities ,financial and ,technical ,assistance awards to increase lending and grow the number of ,c,d,f,is owned by ,native ,americans to help build capacity of such ,c,d,f,is4 7,d7 ,the ,new ,market ,tax ,credit ,program1 which provides tax credits for making equity investments in ,c,d,es that stimulate capital investments in low-income communities4 7,e7 ,the ,capital ,magnet ,fund1 which provides awards to ,c,d,f,is and nonprofit affordable housing organizations to finance affordable housing solutions and related economic development activities4 7,f7 ,the ,bond ,guarantee ,program1 a source of long-term1 patient capital for ,c,d,f,is to expand lending and investment capacity for community and economic development purposes4 7#b7 ,the ,department of the ,treasury is authorized to create multi-year grant programs designed to encourage low-to-moderate income individuals to establish accounts at federally insured banks1 and to improve low-to-moderate income individuals' access to such accounts on reasonable terms4 7#c7 ,under this authority1 grants to participants in ,,cdfi ,fund programs may be used for loan-loss reserves and to establish small-dollar loan programs by subsidizing related losses4 ,these grants also allow for the providing recipients with the financial counseling and education necessary to conduct transactions and manage their accounts4 ,these loans provide low-cost alternatives to payday loans and other nontraditional forms of financing that often impose excessive interest rates and fees on borrowers1 and lead millions of ,americans to fall into debt traps4 ,small-dollar loans can only be made pursuant to terms1 conditions1 and practices that are reasonable for the individual consumer obtaining the loan4 7#d7 ,program participation is restricted to eligible institutions1 which are limited to organizations listed in section #eja7;c77#c7 of the ,internal ,revenue ,code and exempt from tax under #eja7;a7 of such ,code1 federally insured depository institutions1 community development financial institutions and ,state1 local1 or ,tribal government entities4 7#e7 ,since its founding1 the ,,cdfi ,fund has awarded over #c1cjj1jjj1jjj to ,c,d,f,is and ,c,d,es1 allocated #ed1jjj1jjj1jjj in tax credits1 and #a1eaj1jjj1jjj in bond guarantees4 ,according to the ,,cdfi ,fund1 some programs attract as much as #aj in private capital for every #a invested by the ,,cdfi ,fund4 ,the ,administration and the ,congress should prioritize appropriation of funds for the loan loss reserve fund and technical assistance programs administered by the ,community ,development ,financial ,institution ,fund4 7b7 ,definitions ,in this section3 7#a7 ,community development financial institution ,the term community development financial institution has the meaning given under section #ajc of the ,riegle ,community ,development and ,regulatory ,improvement ,act of #aiid 7#ab ,u4,s4,c4 #dgjb74 7#b7 ,minority depository institution ,the term minority depository institution has the meaning given under section #cjh of the ,financial ,institutions ,reform1 ,recovery1 and ,enforcement ,act of #aihi 7#ab ,u4,s4,c4 #adfc note71 as amended by this ,act4 7c7 ,establishment of impact bank designation 7#a7 ,in general ,each ,federal banking agency shall establish a program under which a depository institution with total consolidated assets of less than #aj1jjj1jjj1jjj may elect to be designated as an impact bank if the total dollar value of the loans extended by such depository institution to low-income borrowers is greater than or equal to #ej percent of the assets of such bank4 7#b7 ,notification of eligibility ,based on data obtained through examinations of depository institutions1 the appropriate ,federal banking agency shall notify a depository institution if the institution is eligible to be designated as an impact bank4 7#c7 ,application ,regardless of whether or not it has received a notice of eligibility under paragraph 7#a71 a depository institution may submit an application to the appropriate ,federal banking agency-- 7,a7 requesting to be designated as an impact bank2 and 7,b7 demonstrating that the depository institution meets the applicable qualifications4 7#d7 ,limitation on additional data requirements ,the ,federal banking agencies may only impose additional data collection requirements on a depository institution under this subsection if such data is-- 7,a7 necessary to process an application submitted by the depository institution to be designated an impact bank2 or 7,b7 with respect to a depository institution that is designated as an impact bank1 necessary to ensure the depository institution's ongoing qualifications to maintain such designation4 7#e7 ,removal of designation ,if the appropriate ,federal banking agency determines that a depository institution designated as an impact bank no longer meets the criteria for such designation1 the appropriate ,federal banking agency shall rescind the designation and notify the depository institution of such rescission4 7#f7 ,reconsideration of designation2 appeals ,under such procedures as the ,federal banking agencies may establish1 a depository institution may-- 7,a7 submit to the appropriate ,federal banking agency a request to reconsider a determination that such depository institution no longer meets the criteria for the designation2 or 7,b7 file an appeal of such determination4 7#g7 ,rulemaking ,not later than #a year after the date of the enactment of this ,act1 the ,federal banking agencies shall jointly issue rules to carry out the requirements of this subsection1 including by providing a definition of a low-income borrower4 7#h7 ,reports ,each ,federal banking agency shall submit an annual report to the ,congress containing a description of actions taken to carry out this subsection4 7#i7 ,federal ,deposit ,insurance ,act definitions ,in this subsection1 the terms depository institution1 appropriate ,federal banking agency1 and ,federal banking agency have the meanings given such terms1 respectively1 in section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac74 7d7 ,minority ,depositories ,advisory ,committees 7#a7 ,establishment ,each covered regulator shall establish an advisory committee to be called the ,minority ,depositories ,advisory ,committee4 7#b7 ,duties ,each ,minority ,depositories ,advisory ,committee shall provide advice to the respective covered regulator on meeting the goals established by section #cjh of the ,financial ,institutions ,reform1 ,recovery1 and ,enforcement ,act of #aihi 7#ab ,u4,s4,c4 #adfc note7 to preserve the present number of covered minority institutions1 preserve the minority character of minority-owned institutions in cases involving mergers or acquisitions1 provide technical assistance1 and encourage the creation of new covered minority institutions4 ,the scope of the work of each such ,minority ,depositories ,advisory ,committee shall include an assessment of the current condition of covered minority institutions1 what regulatory changes or other steps the respective agencies may be able to take to fulfill the requirements of such section #cjh1 and other issues of concern to covered minority institutions4 7#c7 ,membership 7,a7 ,in general ,each ,minority ,depositories ,advisory ,committee shall consist of no more than #aj members1 who-- 7i7 shall serve for one two-year term2 7ii7 shall serve as a representative of a depository institution or an insured credit union with respect to which the respective covered regulator is the covered regulator of such depository institution or insured credit union2 and 7iii7 shall not receive pay by reason of their service on the advisory committee1 but may receive travel or transportation expenses in accordance with section #egjc of title #e1 ,united ,states ,code4 7,b7 ,diversity ,to the extent practicable1 each covered regulator shall ensure that the members of the ,minority ,depositories ,advisory ,committee of such agency reflect the diversity of covered minority institutions4 7#d7 ,meetings 7,a7 ,in general ,each ,minority ,depositories ,advisory ,committee shall meet not less frequently than twice each year4 7,b7 ,notice and invitations ,each ,minority ,depositories ,advisory ,committee shall-- 7i7 notify the ,committee on ,financial ,services of the ,house of ,representatives and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate in advance of each meeting of the ,minority ,depositories ,advisory ,committee2 and 7ii7 invite the attendance at each meeting of the ,minority ,depositories ,advisory ,committee of-- 7,i7 one member of the majority party and one member of the minority party of the ,committee on ,financial ,services of the ,house of ,representatives and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate2 and 7,,ii7 one member of the majority party and one member of the minority party of any relevant subcommittees of such committees4 7#e7 ,no termination of advisory committees ,the termination requirements under section #ad of the ,federal ,advisory ,committee ,act 7#e ,u4,s4,c4 ,app47 shall not apply to a ,minority ,depositories ,advisory ,committee established pursuant to this subsection4 7#f7 ,definitions ,in this subsection3 7,a7 ,covered regulator ,the term covered regulator means the ,comptroller of the ,currency1 the ,board of ,governors of the ,federal ,reserve ,system1 the ,federal ,deposit ,insurance ,corporation1 and the ,national ,credit ,union ,administration4 7,b7 ,covered minority institution ,the term covered minority institution means a minority depository institution 7as defined in section #cjh7;b7 of the ,financial ,institutions ,reform1 ,recovery1 and ,enforcement ,act of #aihi 7#ab ,u4,s4,c4 #adfc note774 7,c7 ,depository institution ,the term depository institution has the meaning given under section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac74 7,d7 ,insured credit union ,the term insured credit union has the meaning given in section #aja of the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #ageb74 7#g7 ,technical amendment ,section #cjh7;b7 of the ,financial ,institutions ,reform1 ,recovery1 and ,enforcement ,act of #aihi 7#ab ,u4,s4,c4 #adfc note7 is amended by adding at the end the following new paragraph3 7#c7 ,depository institution ,the term depository institution means an insured depository institution 7as defined in section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac77 and an insured credit union 7as defined in section #aja of the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #ageb774 4 7e7 ,federal deposits in minority depository institutions 7#a7 ,in general ,section #cjh of the ,financial ,institutions ,reform1 ,recovery1 and ,enforcement ,act of #aihi 7#ab ,u4,s4,c4 #adfc note7 is amended-- 7,a7 by adding at the end the following new subsection3 7d7 ,federal deposits ,the ,secretary of the ,treasury shall ensure that deposits made by ,federal agencies in minority depository institutions and impact banks are collateralized or insured1 as determined by the ,secretary4 ,such deposits shall include reciprocal deposits as defined in section #ccg4f7;e77#b77v7 of title #ab1 ,code of ,federal ,regulations 7as in effect on ,march #f1 #bjai74 2 and 7,b7 in subsection 7b71 as amended by section #f7;g71 by adding at the end the following new paragraph3 7#d7 ,impact bank ,the term impact bank means a depository institution designated by the appropriate ,federal banking agency pursuant to section #g7;c7 of the ,promoting and ,advancing ,communities of ,color through ,inclusive ,lending ,act4 4 7#b7 ,technical amendments ,section #cjh of the ,financial ,institutions ,reform1 ,recovery1 and ,enforcement ,act of #aihi 7#ab ,u4,s4,c4 #adfc note7 is amended-- 7,a7 in the matter preceding paragraph 7#a71 by striking section-- and inserting section32 and 7,b7 in the paragraph heading for paragraph 7#a71 by striking financial and inserting depository4 7f7 ,minority ,bank ,deposit ,program 7#a7 ,in general ,section #abjd of the ,financial ,institutions ,reform1 ,recovery1 and ,enforcement ,act of #aihi 7#ab ,u4,s4,c4 #ahaa note7 is amended to read as follows3 #abjd4 ,expansion of use of minority depository institutions 7a7 ,minority ,bank ,deposit ,program 7#a7 ,establishment ,there is established a program to be known as the ,minority ,bank ,deposit ,program to expand the use of minority depository institutions4 7#b7 ,administration ,the ,secretary of the ,treasury1 acting through the ,fiscal ,service1 shall-- 7,a7 on application by a depository institution or credit union1 certify whether such depository institution or credit union is a minority depository institution2 7,b7 maintain and publish a list of all depository institutions and credit unions that have been certified pursuant to subparagraph 7,a72 and 7,c7 periodically distribute the list described in subparagraph 7,b7 to-- 7i7 all ,federal departments and agencies2 7ii7 interested ,state and local governments2 and 7iii7 interested private sector companies4 7#c7 ,inclusion of certain entities on list ,a depository institution or credit union that1 on the date of the enactment of this section1 has a current certification from the ,secretary of the ,treasury stating that such depository institution or credit union is a minority depository institution shall be included on the list described under paragraph 7#b77;,b74 7b7 ,expanded ,use ,among ,federal ,departments and ,agencies 7#a7 ,in general ,not later than #a year after the establishment of the program described in subsection 7a71 the head of each ,federal department or agency shall develop and implement standards and procedures to prioritize1 to the maximum extent possible as permitted by law and consistent with principles of sound financial management1 the use of minority depository institutions to hold the deposits of each such department or agency4 7#b7 ,report to ,congress ,not later than #b years after the establishment of the program described in subsection 7a71 and annually thereafter1 the head of each ,federal department or agency shall submit to ,congress a report on the actions taken to increase the use of minority depository institutions to hold the deposits of each such department or agency4 7c7 ,definitions ,for purposes of this section3 7#a7 ,credit union ,the term credit union has the meaning given the term insured credit union in section #aja of the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #ageb74 7#b7 ,depository institution ,the term depository institution has the meaning given in section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac74 7#c7 ,minority depository institution ,the term minority depository institution has the meaning given that term under section #cjh of this ,act4 4 7#b7 ,conforming ,amendments ,the following provisions are amended by striking #abjd7;c77#c7 and inserting #abjd7;c73 7,a7 ,section #hjh7;b77#c7 of the ,community ,reinvestment ,act of #aigg 7#ab ,u4,s4,c4 #bijg7;b77#c774 7,b7 ,section #dj7;g77#a77;,b7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahcaq7g77#a77;,b774 7,c7 ,section #gjd;,b7h77#d7 of the ,equal ,credit ,opportunity ,act 7#ae ,u4,s4,c4 #afia;c-#b7;h77#d774 7g7 ,diversity report and best practices 7#a7 ,annual report ,each covered regulator shall submit to ,congress an annual report on diversity including the following3 7,a7 ,data1 based on voluntary self-identification1 on the racial1 ethnic1 and gender composition of the examiners of each covered regulator1 disaggregated by length of time served as an examiner4 7,b7 ,the status of any examiners of covered regulators1 based on voluntary self-identification1 as a veteran4 7,c7 ,whether any covered regulator1 as of the date on which the report required under this subsection is submitted1 has adopted a policy1 plan1 or strategy to promote racial1 ethnic1 and gender diversity among examiners of the covered regulator4 7,d7 ,whether any special training is developed and provided for examiners related specifically to working with depository institutions and credit unions that serve communities that are predominantly minorities1 low income1 or rural1 and the key focus of such training4 7#b7 ,best practices ,each ,office of ,minority and ,women ,inclusion of a covered regulator shall develop1 provide to the head of the covered regulator1 and make publicly available best practices-- 7,a7 for increasing the diversity of candidates applying for examiner positions1 including through outreach efforts to recruit diverse candidate to apply for entry-level examiner positions2 and 7,b7 for retaining and providing fair consideration for promotions within the examiner staff for purposes of achieving diversity among examiners4 7#c7 ,covered regulator defined ,in this subsection1 the term covered regulator means the ,comptroller of the ,currency1 the ,board of ,governors of the ,federal ,reserve ,system1 the ,federal ,deposit ,insurance ,corporation1 and the ,national ,credit ,union ,administration4 7h7 ,investments in minority depository institutions and impact banks 7#a7 ,control for certain institutions ,section #g7;j77#h77;,b7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahag7;j77#h77;,b77 is amended to read as follows3 7,b7 control means the power1 directly or indirectly-- 7i7 to direct the management or policies of an insured depository institution2 or 7ii7 7,i7 with respect to an insured depository institution1 of a person to vote #be per centum or more of any class of voting securities of such institution2 or 7,,ii7 with respect to an insured depository institution that is an impact bank 7as designated pursuant to section #g7;c7 of ,promoting and ,advancing ,communities of ,color through ,inclusive ,lending ,act7 or a minority depository institution 7as defined in section #cjh7;b7 of the ,financial ,institutions ,reform1 ,recovery1 and ,enforcement ,act of #aihi71 of an individual to vote #cj percent or more of any class of voting securities of such an impact bank or a minority depository institution4 4 7#b7 ,rulemaking ,the ,federal banking agencies 7as defined in section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac77 shall jointly issue rules for de novo minority depository institutions and de novo impact banks 7as designated pursuant to subsection 7c77 to allow #c years to meet the capital requirements otherwise applicable to minority depository institutions and impact banks4 7#c7 ,report ,not later than #a year after the date of the enactment of this ,act1 the ,federal banking agencies shall jointly submit to ,congress a report on-- 7,a7 the principal causes for the low number of de novo minority depository institutions during the #aj-year period preceding the date of the report2 7,b7 the main challenges to the creation of de novo minority depository institutions and de novo impact banks2 and 7,c7 regulatory and legislative considerations to promote the establishment of de novo minority depository institutions and de novo impact banks4 7i7 ,report on covered mentor-,protege programs 7#a7 ,report ,not later than #f months after the date of the enactment of this ,act and annually thereafter1 the ,secretary of the ,treasury shall submit to ,congress a report on participants in a covered mentor-protege program1 including-- 7,a7 an analysis of outcomes of such program2 7,b7 the number of minority depository institutions that are eligible to participate in such program but do not have large financial institution mentors2 and 7,c7 recommendations for how to match such minority depository institutions with large financial institution mentors4 7#b7 ,definitions ,in this subsection3 7,a7 ,covered mentor-protege program ,the term covered mentor-protege program means a mentor-protege program established by the ,secretary of the ,treasury pursuant to section #de of the ,small ,business ,act 7#ae ,u4,s4,c4 #fegr74 7,b7 ,large financial institution ,the term large financial institution means any entity-- 7i7 regulated by the ,comptroller of the ,currency1 the ,board of ,governors of the ,federal ,reserve ,system1 the ,federal ,deposit ,insurance ,corporation1 or the ,national ,credit ,union ,administration2 and 7ii7 that has total consolidated assets greater than or equal to #ej1jjj1jjj1jjj4 7j7 ,custodial deposit program for covered minority depository institutions and impact banks 7#a7 ,in general ,not later than one year after the date of the enactment of this ,act1 the ,secretary of the ,treasury shall issue rules establishing a custodial deposit program under which a covered bank may receive deposits from a qualifying account4 7#b7 ,requirements ,in issuing rules under paragraph 7#a71 the ,secretary of the ,treasury shall-- 7,a7 consult with the ,federal banking agencies2 7,b7 ensure each covered bank participating in the program established under this section-- 7i7 has appropriate policies relating to management of assets1 including measures to ensure the safety and soundness of each such covered bank2 and 7ii7 is compliant with applicable law2 and 7,c7 ensure1 to the extent practicable that the rules do not conflict with goals described in section #cjh7;a7 of the ,financial ,institutions ,reform1 ,recovery1 and ,enforcement ,act of #aihi 7#ab ,u4,s4,c4 #adfc note74 7#c7 ,report ,each quarter1 the ,secretary of the ,treasury shall submit to ,congress a report on the implementation of the program established under this subsection including information identifying participating covered banks and the total amount of deposits received by covered banks under the program4 7#d7 ,definitions ,in this subsection3 7,a7 ,covered bank ,the term covered bank means-- 7i7 a minority depository institution that is well capitalized1 as defined by the appropriate ,federal banking agency2 or 7ii7 a depository institution designated pursuant to subsection 7c7 that is well capitalized1 as defined by the appropriate ,federal banking agency4 7,b7 ,federal banking agencies ,the terms appropriate ,federal banking agency and ,federal banking agencies have the meaning given those terms1 respectively1 under section #c of the ,federal ,deposit ,insurance ,act4 7,c7 ,qualifying account ,the term qualifying account means any account established in the ,department of the ,treasury that-- 7i7 is controlled by the ,secretary2 and 7ii7 is expected to maintain a balance greater than #bjj1jjj1jjj for the following #bd-month period4 7k7 ,streamlined community development financial institution applications and reporting 7#a7 ,application processes ,not later than #ab months after the date of the enactment of this ,act and with respect to any person having assets under #c1jjj1jjj1jjj that submits an application for deposit insurance with the ,federal ,deposit ,insurance ,corporation that could also become a community development financial institution1 the ,federal ,deposit ,insurance ,corporation1 in consultation with the ,administrator of the ,community ,development ,financial ,institutions ,fund1 shall-- 7,a7 develop systems and procedures to record necessary information to allow the ,administrator to conduct preliminary analysis for such person to also become a community development financial institution2 and 7,b7 develop procedures to streamline the application and annual certification processes and to reduce costs for such person to become1 and maintain certification as1 a community development financial institution4 7#b7 ,implementation report ,not later than #ah months after the date of the enactment of this ,act1 the ,federal ,deposit ,insurance ,corporation shall submit to ,congress a report describing the systems and procedures required under paragraph 7#a74 7#c7 ,annual report 7,a7 ,in general ,section #ag7;a77#a7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbg7;a77#a77 is amended-- 7i7 in subparagraph 7,e71 by striking and at the end2 7ii7 by redesignating subparagraph 7,f7 as subparagraph 7,g72 7iii7 by inserting after subparagraph 7,e7 the following new subparagraph3 7,f7 applicants for deposit insurance that could also become a community development financial institution 7as defined in section #ajc of the ,riegle ,community ,development and ,regulatory ,improvement ,act of #aiid71 a minority depository institution 7as defined in section #cjh of the ,financial ,institutions ,reform1 ,recovery1 and ,enforcement ,act of #aihi71 or an impact bank 7as designated pursuant to section #g7;c7 of the ,promoting and ,advancing ,communities of ,color through ,inclusive ,lending ,act72 and 4 7,b7 ,application ,the amendment made by this paragraph shall apply with respect to the first report to be submitted after the date that is #b years after the date of the enactment of this ,act4 7l7 ,task force on lending to small business concerns 7#a7 ,in general ,not later than #f months after the date of the enactment of this ,act1 the ,administrator of the ,small ,business ,administration shall establish a task force to examine methods for improving relationships between the ,small ,business ,administration and community development financial institutions1 minority depository institutions1 and ,impact ,banks to increase the volume of loans provided by such institutions to small business concerns 7as defined under section #c of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcb774 7#b7 ,report to ,congress ,not later than #ah months after the establishment of the task force described in paragraph 7#a71 the ,administrator of the ,small ,business ,administration shall submit to ,congress a report on the findings of such task force4 #h4 ,establishment of ,financial ,agent ,mentor-,protg ,program 7a7 ,in general ,section #cjh of the ,financial ,institutions ,reform1 ,recovery1 and ,enforcement ,act of #aihi 7#ab ,u4,s4,c4 #adfc note71 as amended by section #f7;f71 is further amended by adding at the end the following new subsection3 7e7 ,financial ,agent ,mentor-,protg ,program 7#a7 ,in general ,the ,secretary of the ,treasury shall establish a program to be known as the ,financial ,agent ,mentor-,protg ,program 7in this subsection referred to as the ,program7 under which a financial agent designated by the ,secretary or a large financial institution may serve as a mentor1 under guidance or regulations prescribed by the ,secretary1 to a small financial institution to allow such small financial institution-- 7,a7 to be prepared to perform as a financial agent2 or 7,b7 to improve capacity to provide services to the customers of the small financial institution4 7#b7 ,outreach ,the ,secretary shall hold outreach events to promote the participation of financial agents1 large financial institutions1 and small financial institutions in the ,program at least once a year4 7#c7 ,exclusion ,the ,secretary shall issue guidance or regulations to establish a process under which a financial agent1 large financial institution1 or small financial institution may be excluded from participation in the ,program4 7#d7 ,report ,the ,office of ,minority and ,women ,inclusion of the ,department of the ,treasury shall include in the report submitted to ,congress under section #cdb7;e7 of the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act information pertaining to the ,program1 including-- 7,a7 the number of financial agents1 large financial institutions1 and small financial institutions participating in such ,program2 and 7,b7 the number of outreach events described in paragraph 7#b7 held during the year covered by such report4 7#e7 ,definitions ,in this subsection3 7,a7 ,financial agent ,the term financial agent means any national banking association designated by the ,secretary of the ,treasury to be employed as a financial agent of the ,government4 7,b7 ,large financial institution ,the term large financial institution means any entity regulated by the ,comptroller of the ,currency1 the ,board of ,governors of the ,federal ,reserve ,system1 the ,federal ,deposit ,insurance ,corporation1 or the ,national ,credit ,union ,administration that has total consolidated assets greater than or equal to #ej1jjj1jjj1jjj4 7,c7 ,small financial institution ,the term small financial institution means-- 7i7 any entity regulated by the ,comptroller of the ,currency1 the ,board of ,governors of the ,federal ,reserve ,system1 the ,federal ,deposit ,insurance ,corporation1 or the ,national ,credit ,union ,administration that has total consolidated assets lesser than or equal to #b1jjj1jjj1jjj2 or 7ii7 a minority depository institution4 4 7b7 ,effective date ,this section and the amendments made by this section shall take effect #ij days after the date of the enactment of this ,act4 #i4 ,study and report with respect to impact of programs on low- and moderate-income and minority communities 7a7 ,study ,the ,secretary of the ,treasury shall conduct a study of the impact of the programs established under this ,act or any amendment made by this ,act on low- and moderate-income and minority communities4 7b7 ,report ,not later than #ah months after the date of enactment of this ,act1 the ,secretary shall submit to ,congress a report on the results of the study conducted pursuant to subsection 7a71 which shall include1 to the extent possible1 the results of the study disaggregated by racial and ethnic group4 7c7 ,information provided to the ,secretary ,eligible institutions that participate in any of the programs described in subsection 7a7 shall provide the ,secretary of the ,treasury with such information as the ,secretary may require to carry out the study required by this section4