Sec. 6. Community Capital Investment Program
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Section 4003 of the CARES Act ( 15 U.S.C. 9042 ) is amended by adding at the end the following: The Secretary of the Treasury shall establish a Community Capital Investment Program (the Program ) to support the efforts of community investment institutions to provide loans and forbearance for small businesses, minority-owned businesses, and consumers, especially in low-income and underserved communities, by— providing direct capital investments in community investment institutions; and providing loans to community investment institutions— that are interest-free loans; that have a loan term of 5 years; and with respect to which no loan payment is required until at least the end of the 6-month period beginning on the date the loan is made, or such longer term as the Secretary may determine appropriate.
The Secretary shall begin accepting applications for capital investments and loans under the Program not later than the end of the 10-day period beginning on the date of enactment of this subsection. At the time that an applicant submits an application to the Secretary for a capital investment under the Program, the applicant shall— 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 businesses, minority-owned businesses, and consumers, especially in low-income and underserved communities; and include with such application an attestation by the applicant that the applicant— does not own, service, or offer any financial product at an annual percentage rate of more than 36 percent interest, as defined in section 987(i)(4) of title 10, United States Code; and is compliant with all State interest rate laws.
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 1 percent. The restrictions described under subsection (c)(3)(A)(ii) shall apply to capital investments and loans made under this subsection. In carrying out the Program, the Secretary shall use amounts made available under subsection (b), notwithstanding the limitations on the use of such funds under paragraphs
(1)through
(4)of such subsection (b). At least $3,000,000,000 of the direct capital investments and loans made by the Secretary under the Program shall be made to minority depository institutions. In making any capital investment under the Program, the Secretary shall ensure that the terms of the investment are designed to ensure the investment receives Tier 1 capital treatment. Notwithstanding the Equal Opportunity Credit Act ( 15 U.S.C. 1691 et seq.)— a community investment institution may collect data described in section 701(a)(1) of that Act ( 15 U.S.C. 1691(a)(1) ) from borrowers and applicants for credit for the purpose of monitoring compliance under the Community Investment Plan required under paragraph (3); and a community investment institution that collects the data described in subparagraph
(A)shall not be subject to adverse action related to that collection by the Bureau of Consumer Financial Protection or any other Federal agency. In this subsection, subsection (j), and subsection (k): The term community investment institution means— a community development financial institution, as defined under section 103 of the Riegle Community Development and Regulatory Improvement Act of 1994 ( 12 U.S.C. 4702 ); an impact credit union; an impact bank; and a minority depository institution, as defined under section 308 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 ( 12 U.S.C. 1463 note). The term credit union has the meaning given the terms State credit union and Federal credit union under section 101 of the Federal Credit Union Act ( 12 U.S.C. 1752 ). The term impact credit union means a credit union that— has total consolidated assets of less than $10,000,000,000; and extends at least 50 percent of the loans extended by the credit union to borrowers who are low-income borrowers, as determined by the Secretary. The term impact bank means a depository institution (as defined under section 3 of the Federal Deposit Insurance Act) that— has total consolidated assets of less than $10,000,000,000; and extends at least 50 percent of the loans extended by the institution to borrowers who are low-income borrowers, as determined by the Secretary. No community investment institution that receives an equity investment under subsection
(i)shall, for so long as the investment continues, make any loan at an annualized percentage rate above 36 percent, as determined in accordance with section 987(b) of title 10, United States Code (commonly known as the Military Lending Act) . The exemption authority of the Bureau under section 105(f) of the Truth in Lending Act ( 15 U.S.C. 1604(f) ) shall not apply with respect to this subsection. .
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Sec. 6
Community Capital Investment Program
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