text: SECTION 1. CDFI SMALL DOLLAR LOAN-LOSS GUARANTEE FUND.
  
      The Community Development Banking and Financial Institutions Act of 
  1994 (12 U.S.C. 4701 et seq.) is amended by adding at the end the 
  following:
  
  ``SEC. 122. CDFI SMALL DOLLAR LOAN-LOSS GUARANTEE FUND.
  
      ``(a) Purpose.--The purpose of this section are to establish a 
  small dollar loan-loss guarantee fund to--
              ``(1) serve as a loss reserve for qualifying loans to 
          consumers offered by eligible financial institutions;
              ``(2) increase the number of qualifying loan products 
          offered to consumers by such institutions; and
              ``(3) increase consumer access to mainstream financial 
          institutions and provide consumers with alternative choices to 
          pay day loans.
      ``(b) Definitions.--For purposes of this section, the following 
  definitions shall apply:
              ``(1) Consumer reporting agency that compiles and maintains 
          files on consumers on a nationwide basis.--The term `consumer 
          reporting agency that compiles and maintains files on consumers 
          on a nationwide basis' has the same meaning given such term in 
          section 603(p) of the Fair Credit Reporting Act (15 U.S.C. 
          1681a(p)).
              ``(2) Eligible financial institution.--The term `eligible 
          financial institution' means--
                      ``(A) any community development financial 
                  institution, provided that if such institution is 
                  subject to examination under the Community Reinvestment 
                  Act of 1977, that such institution received a 
                  satisfactory or an outstanding rating in meeting the 
                  needs of the community as part of its last examination 
                  under such Act; and
                      ``(B) any other entity, organization, or 
                  institution whose primary mission is to serve low- to 
                  moderate-income individuals, as determined appropriate 
                  by the Administrator.
              ``(3) Fund.--The term `Fund' means the CDFI Small Dollar 
          Loan-Loss Guarantee Fund established under subsection (c).
              ``(4) Qualifying loan.--The term `qualifying loan' means a 
          loan that satisfies the following requirements:
                      ``(A) The loan is made to a consumer by an eligible 
                  financial institution.
                      ``(B) The loan is made in an amount not exceeding 
                  $2,500.
                      ``(C) The loan--
                              ``(i) has a repayment period of at least 60 
                          days;
                              ``(ii) is repaid in installments, and such 
                          installment payments result in the reduction in 
                          the principle balance owed on the loan;
                              ``(iii) has an annual percentage rate that 
                          the Administrator determines to be acceptable 
                          through the application process for the 
                          purposes of this section, but in no event shall 
                          such annual percentage rate exceed 36 percent; 
                          and
                              ``(iv) has no pre-payment penalty.
                      ``(D) At the time of origination of the loan, the 
                  eligible financial institution that made the loan 
                  offered the consumer information.
                      ``(E) The eligible financial institution making the 
                  loan reports payments regarding the loan to at least 1 
                  of the consumer reporting agencies that compiles and 
                  maintains files on consumers on a nationwide basis.
      ``(c) Establishment.--
              ``(1) In general.--There is established a CDFI Small Dollar 
          Loan-Loss Guarantee Fund, which shall be used by the 
          Administrator to defray the cost of losses on qualifying loans 
          to consumers made by eligible financial institutions.
              ``(2) Use of fund amounts.--
                      ``(A) Reimbursement.--From amounts available in the 
                  Fund, the Administrator may provide reimbursement of a 
                  qualifying loan loss that is up to 60 percent of the 
                  loss on the qualifying loan to an eligible financial 
                  institution that has submitted an application pursuant 
                  to the requirements of subparagraph (B). The 
                  Administrator shall take into consideration the overall 
                  default rates of the qualifying loan portfolio in an 
                  eligible financial institution when determining the 
                  reimbursement rate of loan loss.
                      ``(B) Application.--In order to receive any amounts 
                  from the Fund under this section, each eligible 
                  financial institution shall submit an application at 
                  such time, in, such form, and with such information and 
                  assurances as the Administrator may require.
              ``(3) Deposits.--
                      ``(A) In general.--The Fund shall consist of--
                              ``(i) any amounts deposited pursuant to 
                          subsection (d)(4);
                              ``(ii) any amounts borrowed pursuant to 
                          subsection (e);
                              ``(iii) a portion, as determined by the 
                          Administrator, of the proceeds of fees 
                          collected by an eligible financial institution 
                          for the origination of the qualifying loans to 
                          consumers; and
                              ``(iv) any amounts transferred, credited, 
                          donated, or bequeathed to the Fund by any 
                          individual, foundation, corporation, or other 
                          legal entity.
                      ``(B) Solvency of fund.--In making the 
                  determination required under subparagraph (A), the 
                  Administrator shall give priority consideration to that 
                  amount that would best protect and ensure the solvency 
                  of the Fund.
                      ``(C) Investment authority.--Funds that are not 
                  otherwise distributed by the Fund to eligible financial 
                  institutions for reimbursement of qualifying loan 
                  losses shall be invested in obligations of the United 
                  States or in obligations guaranteed as principle and 
                  interest by the United States.
      ``(d) Authorization of Appropriations.--
              ``(1) In general.--There are authorized to be appropriated 
          for each fiscal year such sums as are necessary to carry out 
          this section.
              ``(2) Administrative costs.--From amounts made available 
          under this section, the Administrator may reserve not more than 
          10 percent for administrative costs.
              ``(3) Technical assistance grants.--Amounts made available 
          under this section may be used to make technical assistance 
          grants to applicants to develop and support a small dollar loan 
          program. Any technical assistance grants made under this 
          paragraph shall be made in accordance with subsections (b), 
          (c), and (d) of section 108, provided that the Administrator 
          may waive the requirements of subsection (e) of such section 
          108 with respect to such grants.
              ``(4) Deposit into fund.--Amounts made available under this 
          section may be deposited into the CDFI Small Dollar Loan-Loss 
          Guarantee Fund established under this section.
      ``(e) Borrowing Authority.--The Administrator is authorized to 
  borrow from the Treasury, and the Secretary of the Treasury is 
  authorized and directed to loan to the Administrator on such terms as 
  may be fixed by the Administrator and the Secretary, such funds as in 
  the judgment of the Administrator are from time to time required to 
  maintain the solvency of the Fund, not exceeding in the aggregate 
  $75,000,000 outstanding at any one time, subject to the approval of the 
  Secretary of the Treasury: Provided, That the rate of interest to be 
  charged in connection with any loan made pursuant to this subsection 
  shall not be less than an amount determined by the Secretary of the 
  Treasury, taking into consideration current market yields on 
  outstanding marketable obligations of the United States of comparable 
  maturity. For such purpose the Secretary of the Treasury is authorized 
  to use as a public-debt transaction the proceeds of the sale of any 
  securities hereafter issued under the Second Liberty Bond Act, as 
  amended, and the purposes for which securities may be issued under the 
  Second Liberty Bond Act, as amended, are extended to include such 
  loans. Any such loan shall be used by the Administrator solely in 
  carrying out its functions with respect to the Fund. All loans and 
  repayments under this subsection shall be treated as public-debt 
  transactions of the United States. The Administrator may employ any 
  amounts obtained under this subsection for purposes of the Fund and the 
  borrowing shall become a liability of the Fund to the extent funds are 
  employed therefor.
      ``(f) Report to Congress.--Not later than 1 year after the CDFI 
  Small Dollar Loan-Loss Guarantee Fund makes its first reimbursement to 
  an eligible financial institution, and every year thereafter, the 
  Administrator shall submit to the Banking, Housing, and Urban Affairs 
  Committee of the Senate, the Financial Services Committee of the House 
  of Representatives, and the Committee on Appropriations of both the 
  Senate and the House of Representatives a report describing--
              ``(1) the activities of the Fund, including the cumulative 
          volume and amounts of loan reimbursements that have been 
          distributed from the Fund during the prior 12 months;
              ``(2) the solvency of the Fund;
              ``(3) the default rate of qualifying loans; and
              ``(4) any measurable results, as appropriate and available, 
          related to the achievement of the purposes of this section as 
          such purposes are set forth under subsection (a).''.
target: Amends the Community Development Banking and Financial Institutions Act of 1994 to establish the Community Development Financial Institutions (CDFI) Small Dollar Loan-Loss Guarantee Fund to defray the cost of losses on specified qualifying consumer loans (not exceeding $2500) made by certain CDFIs and institutions whose primary mission is to serve low- to moderate-income individuals.
  
  Authorizes appropriations to implement the program and to provide technical assistance grants to applicants to develop and support a small dollar loan program.
  
  Authorizes the Administrator of the CFDI Fund to borrow from the Treasury as necessary to maintain Fund solvency.
feat_title: A bill to establish a small dollar loan-loss guarantee fund, and for other purposes.