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Congress·In Committee·S. 2718

Community Banks: Increasing Loans for Underserved Areas

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

7 months ago·View on Congress.gov

Legislative Progress

Senate
House
President
Law

Key Points

  • This bill helps small banks and credit unions that focus on low-income neighborhoods, known as Community Development Financial Institutions. It allows a federal fund to buy loans from these banks, which gives them immediate cash to turn around and lend to more people in their communities.
  • People living in underserved areas or looking for affordable housing will benefit most. By giving these local banks more ready-to-use cash, the bill makes it easier for small businesses and families to get mortgages or business loans that big national banks might turn down.
  • Currently, these small lenders can get stuck if all their money is tied up in long-term loans. This plan raises the limit on federal support from $5 million to $20 million per organization. It also uses money already being paid back from previous emergency programs to fund these new efforts.
  • The Treasury Department will be required to track how this money is used and report back to Congress. They will specifically look at how many affordable housing loans are made and how much these changes help small community banks compete with larger financial institutions.

Milestones

2 milestones2 actions
Sep 4, 2025Senate

Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Sep 4, 2025

Introduced in Senate

Related Bills

1 bill
S. 3940Related bill

Access to Fair Financing for Opportunity and Resilient Development Act

Feb 26 — Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Source Information

Document Type

Congressional Bill

Official Title

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

Bill NumberS 2718
Congress119th Congress
ChamberSenate
Latest ActionRead twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Sponsor

Cosponsors

(6)
D: 2R: 4

Analysis generated by AI. Always verify with official sources.