Short title

This Act may be cited as the

Expanding Financial Access for Underserved Communities Act

Credit union service to underserved areas

Section 109 of the Federal Credit Union Act (12 U.S.C. 1759) is amended—(1)in subsection (c)(2)—(A)by striking the field of membership category of which is described in subsection (b)(2),;(B)by amending subparagraph (A) to read as follows:

(A)the Board determines that the local community, neighborhood, or rural district is an underserved area; and

; and

(C)in subparagraph (B), by inserting not later than 2 years after having such underserved area added to the credit union’s charter, before the credit union; and(2)by adding at the end the following:

(h)

Change of field of membership To include underserved areas

(1)

In general

If an existing Federal credit union applies to the Board to alter or expand the field of membership of the credit union to serve an underserved area, the credit union shall submit a business and marketing plan with such application that explains the ability and intent of the credit union to serve the population of the underserved area through the change in field of membership.(2)

Report by credit union

Not later than 2 years after the date on which an application described under paragraph (1) is approved, the credit union, as part of the ordinary course of the examination cycle and supervision process, shall submit a report to the Administration that includes—(A)an estimate of the number of members of the credit union who are members by reason of the application, including breakdowns by each State (including the District of Columbia and each territory of the United States), Tribal government entity, and congressional district;(B)a description of the types of financial services utilized by members of the credit union who are members by reason of the application; (C)an update of the implementation of the credit union of the business and marketing plan described under paragraph (1); and(D)a description of the types of financial education programs made available to members of the credit union, including those who are members by reason of the application and those in rural areas, where applicable.

Member business lending in underserved areas

Section 107A(c)(1)(B) of the Federal Credit Union Act (12 U.S.C. 1757a(c)(1)(B)) is amended—(1)in clause (iv), by striking or at the end;(2)in clause (v), by striking the period and inserting ; or; and(3)by adding at the end the following:

(vi)that is made to a member or associated borrower that lives in or operates in an underserved area.

Underserved area defined

Section 101 of the Federal Credit Union Act (12 U.S.C. 1752) is amended—(1)in paragraph (8), by striking ; and and inserting a period;(2)in paragraph (9), by striking the period at the end and inserting ; and; and(3)by adding at the end the following:

(10)the term underserved area means a geographic area consisting of 1 or more population census tracts or 1 or more counties, that encompass or are located within—(A)an investment area, as defined in section 103(16) of the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4702(16));(B)groups of contiguous census tracts in which at least 85 percent individually qualify as low-income communities, as defined in section 45D(e) of the Internal Revenue Code of 1986; or(C)an area that is more than 10 miles, as measured from each point along the perimeter of the area, from the nearest branch of a depository institution, as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813) or credit union.

Reports by the National Credit Union Administration

(a)

Initial report

During the 1-year period beginning on the date that is 2 years after the date of enactment of this Act, the National Credit Union Administration shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report on the implementation of the amendments made by this Act.(b)

Update

On the date that is 5 years after the date on which the report required under subsection (a) is submitted, the National Credit Union Administration shall submit to the committees described that subsection an updated report.

Rule of construction

Nothing in this Act or the amendments made by this Act may be construed to prevent or otherwise impede the ability of insured depository institutions, as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813) to establish branches and provide banking services in underserved areas.