[Congressional Record Volume 168, Number 124 (Tuesday, July 26, 2022)]
[House]
[Pages H7127-H7128]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          CDFI BOND GUARANTEE PROGRAM IMPROVEMENT ACT OF 2022

  Ms. WATERS. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 7733) to amend the Community Development Banking and 
Financial Institutions Act of 1994 to reauthorize and improve the 
community development financial institutions bond guarantee program, 
and for other purposes, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 7733

       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 ``CDFI Bond Guarantee Program 
     Improvement Act of 2022''.

     SEC. 2. SENSE OF CONGRESS.

       It is the sense of Congress that the authority to guarantee 
     bonds under section 114A of the Community Development Banking 
     and Financial Institutions Act of 1994 (12 U.S.C. 4713a) 
     (commonly referred to as the ``CDFI Bond Guarantee Program'') 
     provides community development financial institutions with a 
     sustainable source of long-term capital and furthers the 
     mission of the Community Development Financial Institutions 
     Fund (established under section 104(a) of such Act (12 U.S.C. 
     4703(a)) to increase economic opportunity and promote 
     community development investments for underserved populations 
     and distressed communities in the United States.

     SEC. 3. GUARANTEES FOR BONDS AND NOTES ISSUED FOR COMMUNITY 
                   OR ECONOMIC DEVELOPMENT PURPOSES.

       Section 114A of the Community Development Banking and 
     Financial Institutions Act of 1994 (12 U.S.C. 4713a) is 
     amended--
       (1) in subsection (c)(2), by striking ``, multiplied by an 
     amount equal to the outstanding principal balance of issued 
     notes or bonds'';
       (2) in subsection (e)(2)(B), by striking ``$100,000,000'' 
     and inserting ``$25,000,000''; and
       (3) in subsection (k), by striking ``September 30, 2014'' 
     and inserting ``the date that is 4 years after the date of 
     enactment of the CDFI Bond Guarantee Program Improvement Act 
     of 2022''.

     SEC. 4. REPORT ON THE CDFI BOND GUARANTEE PROGRAM.

       Not later than 1 year after the date of enactment of this 
     Act, and not later than 3 years after such date of enactment, 
     the Secretary of the Treasury shall issue a report to the 
     Committee on Financial Services of the House of 
     Representatives and the Committee on Banking, Housing, and 
     Urban Affairs of the Senate on the effectiveness of the CDFI 
     bond guarantee program established under section 114A of the 
     Community Development Banking and Financial Institutions Act 
     of 1994 (12 U.S.C. 4713a).

  The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from 
California (Ms. Waters) and the gentlewoman from Missouri (Mrs. Wagner) 
each will control 20 minutes.
  The Chair recognizes the gentlewoman from California.


                             General Leave

  Ms. WATERS. Mr. Speaker, I ask unanimous consent that all Members may 
have 5 legislative days within which to revise and extend their remarks 
on this legislation and to insert extraneous material thereon.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentlewoman from California?
  There was no objection.
  Ms. WATERS. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I support H.R. 7733, the CDFI Bond Guarantee Program 
Improvement Act, led by Representative Cleaver, who also is the chair 
of the Subcommittee on Housing, Community Development, and Insurance.
  The CDFI Fund's Bond Guarantee Program provides CDFIs with federally 
guaranteed, long-term, low-cost capital to support existing and new 
economic development projects in their communities.
  Unfortunately, small-sized CDFIs currently have difficulty applying 
for this financing directly because the current $100 million minimum 
financing amount is much higher than the amount many small CDFIs are 
seeking. As a result, some CDFIs can only access the program by 
applying with larger CDFIs.
  This bill would lower the minimum threshold for a bond issuance from 
$100 million to $25 million, giving smaller CDFIs a fairer shot at 
being able to access this program. This will help expand financing and 
investments to support small businesses, healthcare facilities, and 
affordable housing.
  This bill builds upon the work I led last Congress to provide CDFIs 
with $12 billion in equity and grant funding. In particular, that 
legislation, which has already distributed $1.25 billion to CDFIs, 
represented the largest public investment in CDFIs ever.
  Mr. Cleaver's bill complements those efforts by helping smaller CDFIs 
better access private dollars to further their efforts to serve low-
income and underserved communities.
  While the Bond Guarantee Program's authorization ended in 2014, 
Congress has extended it on a year-by-year basis in annual 
appropriations bills. This bill would extend the program for 4 years, 
creating longer-term certainty. The bill also includes studies to 
examine areas where the program can be strengthened.

[[Page H7128]]

  Furthermore, this bill is a House companion to a bipartisan bill in 
the Senate, S. 3441, introduced by Senators Tina Smith and Mike Rounds.
  I urge my colleagues to support this bill to ensure that more CDFIs 
have access to long-term financing through the Bond Guarantee Program 
so they continue to spur economic development in communities across the 
Nation.
  Mr. Speaker, I reserve the balance of my time.
  Mrs. WAGNER. Mr. Speaker, I yield myself such time as I may consume.
  I thank my colleague from Missouri, Mr. Cleaver, for offering this 
bill and for working with Republicans on the Financial Services 
Committee to make it a better bill.
  H.R. 7733, as amended through bipartisan negotiations, would lower 
the CDFI Fund's Bond Guarantee Program minimum issuance threshold from 
$100 million to $25 million. It would also require the Secretary of the 
Treasury to review the effectiveness of the CDFI Bond Guarantee Program 
and report its findings to Congress; and the program would sunset after 
4 years allowing Congress adequate time to make adjustments and ensure 
proper stewardship of taxpayer dollars.
  This increased accountability will allow Congress to make certain 
that the programs that we authorize match the needs of the communities 
to be served.
  Mr. Speaker, I urge my colleagues to support this bill, and I reserve 
the balance of my time.

                              {time}  1730

  Ms. WATERS. Mr. Speaker, I yield 3 minutes to the gentleman from 
Missouri (Mr. Cleaver).
  Mr. CLEAVER. Mr. Speaker, I thank Chairwoman Waters for her 
longstanding support of CDFIs.
  I speak today in support of my bill, the CDFI Bond Guarantee Program 
Improvement Act of 2022, which would open up a significant source of 
long-term, low-cost capital to support CDFI projects in low-income 
urban, rural, and indigenous areas of the country.
  Community development financial institutions, CDFIs, deliver critical 
lending opportunities to low- and moderate-income communities and 
communities of color. CDFIs are banks, credit unions, and other 
financial institutions that provide products and services specifically 
aimed at the needs of low-income and marginalized communities and are 
certified by the CDFI fund, which is operated by the United States 
Department of the Treasury.
  CDFIs support people and businessowners in underserved communities by 
providing affordable capital to communities typically excluded from the 
mainstream financial system. According to Treasury, in 2019, 33 percent 
of CDFI lending was in high poverty areas, nearly 75 percent of lending 
was to underserved populations and distressed areas, and 17 percent was 
to rural areas. I think that ought to make all the people committed to 
this concept of everybody participating quite happy.
  CDFIs in my district, including Central Bank of Kansas City, LISC of 
Greater Kansas City, AltCap, and others, are instrumental in the effort 
to narrow the racial wealth gap and increase financial opportunities in 
underserved communities. However, we know that the high demand for CDFI 
services far exceeds available funding.
  One tool the Federal Government has to support CDFIs in their mission 
is by making significant capital for economic development available to 
CDFIs through the bond guarantee program. Enacted through the Small 
Business Administration, the CDFI bond guarantee program is 
administered by Treasury, which guarantees bonds issued by qualified 
issuers and injects new and substantial capital into our Nation's most 
distressed communities.
  Unlike CDFI fund programs, the bond guarantee program does not offer 
grants or direct loans but is instead a Federal credit subsidy that is 
designed to be repaid and function at no cost to the taxpayers.
  Since inception, the bond guarantee program has guaranteed over $1.7 
billion in bonds used to finance schools, not-for-profit facilities, 
small businesses, healthcare facilities, and commercial and residential 
real estate, among others.
  My bill, H.R. 7733, endorsed by the CDFI Coalition, Community 
Reinvestment Fund, Opportunity Finance Network, and others, would 
recognize and reauthorize this program.
  The bill was a bipartisan effort and unanimously voted out of our 
committee. Mr. Speaker, I thank Chairwoman Waters, Ranking Member 
McHenry, and my colleagues for partnership on this legislation, and I 
urge swift passage today.
  Mrs. WAGNER. Mr. Speaker, I urge my colleagues to support H.R. 7733, 
and I yield back the balance of my time.
  Ms. WATERS. Mr. Speaker, I yield myself the balance of my time.
  H.R. 7733 is supported by a number of groups, including the CDFI 
Coalition, Credit Union National Association, Independent Community 
Bankers of America, National Association of Federally-Insured Credit 
Unions, National Community Reinvestment Coalition, and Opportunity 
Finance Network.
  Mr. Speaker, I urge my colleagues to support this bill, and I yield 
back the balance of my time.
  The SPEAKER pro tempore (Mr. Mrvan). The question is on the motion 
offered by the gentlewoman from California (Ms. Waters) that the House 
suspend the rules and pass the bill, H.R. 7733, as amended.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Mr. CLYDE. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further 
proceedings on this motion will be postponed.

                          ____________________