A bill to amend the Community Development Banking and Financial Institutions Act of 1994 to provide for capitalization assistance to enhance liquidity.

Q: What does Preamble of A bill to amend the Community Development Banking and Financial Institutions Act of 1994 to provide for capitalization assistance to enhance liquidity. do?

This bill proposes to amend the Community Development Banking and Financial Institutions Act of 1994. The proposed amendment aims to provide capitalization assistance. The stated purpose of the capitalization assistance is to enhance liquidity.

Q: What does CAPITALIZATION ASSISTANCE TO ENHANCE LIQUIDITY. of A bill to amend the Community Development Banking and Financial Institutions Act of 1994 to provide for capitalization assistance to enhance liquidity. do?

This section amends Section 113 of the Community Development Banking and Financial Institutions Act of 1994 to authorize the Fund to provide funds to organizations for purchasing loans originated by community development financial institutions (CDFIs), providing credit enhancements, and otherwise enhancing CDFI liquidity. The selection of organizations receiving assistance will be at the discretion of the Fund, based on established criteria, and organizations need not be CDFIs to be eligible. The Fund will prioritize organizations demonstrating experience with loan purchase structures and the capacity to increase loan originations or expand CDFI services, particularly those serving underserved communities. The maximum amount of funds that can be used during a period is increased from $5,000,000 to $20,000,000. Section 104A of the Community Development Banking and Financial Institutions Act of 1994 is amended to specify how funds received by the Secretary, including interest and proceeds from sales, are to be deposited into and used from the Fund. The Secretary is required to submit annual reports to Congress detailing the Fund’s use, including the amounts of loans purchased, guarantees provided, and the impact on CDFI competitiveness and liquidity, through 2028.

Last updated: 9/4/2025 · Introduced: 9/4/2025

Author: Mark Warner (D-VA)

TL;DR (AI)

This bill allows the Community Development Banking and Financial Institutions Fund to provide up to $20 million in capitalization assistance to organizations to purchase loans and enhance liquidity for community development financial institutions (CDFIs).
The Fund will prioritize organizations with experience in loan purchasing and the capacity to expand CDFI services, particularly in underserved communities.
The bill requires annual reports to Congress detailing the Fund’s activities, including loan purchases and guarantees, through 2028.

119th Congressin committeeS. 3940(In Committee)Official page

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Includes provisions on preamble, capitalization assistance to enhance liquidity..

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