[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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