2021 Session

Budget Amendments - HB1800 (Member Request)

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Chief Patron: Reid
Create the Virginia Community Development Financial Institution Fund

Item 114 #4h

Item 114 #4h

First Year - FY2021 Second Year - FY2022
Commerce and Trade
Department of Housing and Community Development FY2021 $7,500,000 FY2022 $7,500,000 GF
FY2021 $17,500,000 FY2022 $17,500,000 NGF
FY2021 3.00 FY2022 3.00 FTE

Page 110, line 42, strike "$129,138,362" and insert "$154,138,362".
Page 110, line 42, strike "$128,538,362" and insert "$153,538,362".

Page 114, after line 46, insert:

“O.1. Out of the amounts provided in this appropriation, $7,500,000 from the general fund and $17,500,000 from the nongeneral fund in the first year and $7,500,000 from the general fund and $17,500,000 from the nongeneral fund in the second year shall be used to create a special, non-reverting Virginia Community Development Financial Institution (CDFI) Fund. This fund shall be comprised of appropriations, grants and loans from federal, state and private sources, and other types of financial assistance, to provide capital through grants and loans to Virginia-based community development financial institutions (CDFIs), community development enterprises (CDE), or other such similar entities as permitted by law, whose primary purpose is to provide financing in the form of loans, grants or forgivable loans to small businesses or community revitalization real estate projects in Virginia.

2. The Department is hereby authorized to enter into a contractual agreement with an eligible CDFI or similar private entity to make grants and lending to small businesses adversely impacted by the COVID pandemic. An eligible qualifying CDFI shall be a community development bank, community development credit union, or other similar private entity that the Department finds is (i) established to conduct business legally within the Commonwealth; (ii) subject to oversight by federal or state financial institutions or insurance regulatory agencies, as appropriate; and (iii) eligible for certification by the U.S. Department of Treasury as a community development financial institution or other similar charter or principles which require support of small businesses.

3. The community development bank, community development credit union, or other similar organizations is intended to be a source of targeted lending and investment with the capacity to provide a high degree of leveraging for economic development and business support activities within communities throughout the Commonwealth. These activities may include loans and investments to start or expand small businesses, operating and working capital, property renovation or development, and financial services needed by adversely impacted small businesses. The entity may also provide services that help ensure that credit is used effectively, such as technical assistance to small businesses and credit counseling to consumers.

4. On or before December 1 of each year, the Department shall report to the Secretary of Commerce and Trade, the Governor, and the Chairs of the House Committee on Appropriations and the Senate Committee on Finance and Appropriations on such other matters regarding the CDFI Fund as the Department may deem appropriate, including the amount of funding committed to projects from the CDFI Fund, or other items as may be requested by any of the foregoing persons to whom such report is to be submitted."


(This amendment creates and capitalizes the Community Development Financial Institution Fund to provide grants and loans to community lending institutions that will deploy funds to support small business development and community revitalization efforts.)