[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 4532 Introduced in Senate (IS)]
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117th CONGRESS
2d Session
S. 4532
To amend the Community Reinvestment Act of 1977 to provide financial
institutions with credit for providing community business development
referrals or resources, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 14, 2022
Ms. Hassan introduced the following bill; which was read twice and
referred to the Committee on Banking, Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To amend the Community Reinvestment Act of 1977 to provide financial
institutions with credit for providing community business development
referrals or resources, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Strengthening Community Business
Development Act''.
SEC. 2. CRA CREDIT FOR PROVIDING COMMUNITY BUSINESS DEVELOPMENT
REFERRALS OR RESOURCES.
Section 804 of the Community Reinvestment Act of 1977 (12 U.S.C.
2903) is amended by adding at the end the following:
``(e) Referrals to Community Business Development Organizations.--
``(1) Definition.--In this subsection, the term `community
business development organization'--
``(A) means an organization that provides low- and
moderate-income borrowers with business development
resources, including--
``(i) credit improvement programs;
``(ii) business counseling and mentoring;
``(iii) financial literacy programs; and
``(iv) business development courses; and
``(B) includes--
``(i) a district office of the Small
Business Administration;
``(ii) a small business development center
described in section 21 of the Small Business
Act (15 U.S.C. 648);
``(iii) a women's business center described
in section 29 of the Small Business Act (15
U.S.C. 649);
``(iv) an entrepreneurial center that
offers business development resources,
including--
``(I) workshops, training,
educational programs, and other
business development services; and
``(II) mentorship and business
counseling services;
``(v) the Service Corps of Retired
Executives authorized under section 8(b)(1)(B)
of the Small Business Act (15 U.S.C.
637(b)(1)(B)); and
``(vi) a Veteran Business Outreach Center
described in section 32 of the Small Business
Act (15 U.S.C. 657b).
``(2) Requirement.--In assessing and taking into account,
under subsection (a), the record of a financial institution,
the appropriate Federal financial supervisory agency may
consider, as a factor, efforts of the financial institution
to--
``(A) refer low- and moderate-income borrowers to
whom they have denied business loans to community
business development organizations; or
``(B) directly provide low- and moderate-income
borrowers with business development resources.
``(3) Guidance.--
``(A) In general.--Not later than 60 days after the
date of enactment of this subsection, the appropriate
Federal financial supervisory agencies shall issue
guidance to carry out this subsection.
``(B) Consideration of small financial
institutions.--In issuing the guidance required under
subparagraph (A), the appropriate Federal financial
supervisory agencies shall consider ways for small
financial institutions to receive credit for referrals
and resources provided under paragraph (2).
``(C) Additional guidance.--The Secretary of the
Treasury shall issue guidance for financial
institutions on the process of referring a borrower to
a community business development organization in a
manner that responds to community needs.''.
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