[Congressional Record Volume 166, Number 171 (Thursday, October 1, 2020)]
[House]
[Pages H5189-H5190]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
REINVIGORATING LENDING FOR THE FUTURE ACT
Mr. CARBAJAL. Mr. Speaker, I move to suspend the rules and pass the
bill (S. 4075) to amend the Public Works and Economic Development Act
of 1965 to provide for the release of certain Federal interests in
connection with certain grants under that Act, and for other purposes.
The Clerk read the title of the bill.
The text of the bill is as follows:
S. 4075
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 ``Reinvigorating Lending for
the Future Act'' or the ``RLF Act''.
[[Page H5190]]
SEC. 2. RELEASE OF CERTAIN INTERESTS.
Section 601(d)(2) of the Public Works and Economic
Development Act of 1965 (42 U.S.C. 3211(d)(2)) is amended--
(1) by striking the paragraph designation and heading and
all that follows through ``The Secretary may'' and inserting
the following:
``(2) Release.--
``(A) In general.--Except as provided in subparagraph (B),
the Secretary may''; and
(2) by adding at the end the following:
``(B) Certain releases.--
``(i) In general.--On written request from a recipient of a
grant under section 209(d), the Secretary shall release, in
accordance with this subparagraph, any Federal interest in
connection with the grant, if--
``(I) the request is made not less than 7 years after the
final disbursement of the original grant;
``(II) the recipient has complied with the terms and
conditions of the grant to the satisfaction of the Secretary;
``(III) any proceeds realized from the grant will be used
for 1 or more activities that continue to carry out the
economic development purposes of this Act; and
``(IV) the recipient includes in the written request a
description of how the recipient will use the proceeds of the
grant in accordance with subclause (III).
``(ii) Deadline.--
``(I) In general.--Except as provided in subclause (II),
the Secretary shall complete all closeout actions for the
grant by not later than 180 days after receipt and acceptance
of the written request under clause (i).
``(II) Extension.--The Secretary may extend a deadline
under subclause (I) by an additional 180 days if the
Secretary determines the extension to be necessary.
``(iii) Savings provision.--Section 602 shall continue to
apply to a project assisted with a grant under section 209(d)
regardless of whether the Secretary releases a Federal
interest under clause (i).''.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
California (Mr. Carbajal) and the gentlewoman from West Virginia (Mrs.
Miller) each will control 20 minutes.
The Chair recognizes the gentleman from California.
General Leave
Mr. CARBAJAL. Mr. Speaker, I ask unanimous consent that all Members
may have 5 legislative days within which to revise and extend their
remarks and include extraneous material on S. 4075.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from California?
There was no objection.
Mr. CARBAJAL. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise today in support of S. 4075, the Reinvigorating
Lending for the Future Act.
This bipartisan legislation will help cut the red tape and allow
greater levels of local investment in economic development projects by
allowing the Economic Development Administration to waive Federal
interest in certain revolving loan funds.
The EDA supports economic development by providing seed capital to
revolving loan funds that offer low-interest loans to help new
businesses get off the ground. Those loans are repaid with interest to
the RLF manager, which then loans the funds out again to other
businesses. This strategy has been highly effective, and more than 500
RLFs are in operation today.
But unlike other EDA grants, the Federal interest in these funds
remain in perpetuity. RLF managers must report and the EDA must track
these funds, no matter how many times they are lent out and repaid. The
funds can never be repurposed for other economic development projects.
The RLF Act fixes this bureaucratic nightmare by allowing the
Secretary of Commerce to release the Federal interest in these funds
after 7 years, provided that the funds are used for other approved
economic development projects like the development of public
infrastructure or workforce training.
This bill cuts through the red tape and allows for the local control
our regions need to invest in the most beneficial economic development
projects for their communities.
This legislation has broad bipartisan support and is endorsed by the
National Association of Development Organizations and the International
Economic Development Council, two of the largest economic development
advocacy groups in the country.
Mr. Speaker, I urge my fellow colleagues to support this bill, and I
reserve the balance of my time.
{time} 1615
Mrs. MILLER. Mr. Speaker, I yield myself such time as I may consume.
S. 4075, the RLF Act, would release the Federal interest in the
Economic Development Administration's revolving loan funds after 7
years if requested by the recipient.
I thank Congressman Katko, the ranking member of the Subcommittee on
Economic Development, Public Buildings, and Emergency Management, for
his leadership and work on this issue.
This fix to reduce the administrative burden of RLF funds was
requested by the administration, as well as by State and local economic
development officials.
Even after the funds have turned over in these RLFs, local officials
continue to be saddled with unnecessary paperwork. Releasing the
Federal interest when the government's role is over will also release
officials of the extra paperwork.
Mr. Speaker, I urge support of this legislation, and I reserve the
balance of my time.
Mr. CARBAJAL. Mr. Speaker, I reserve the balance of my time.
Mrs. MILLER. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, S. 4075 will cut red tape and reduce paperwork for the
communities that receive EDA grants for revolving loan funds.
Mr. Speaker, I urge support of this important legislation, and I
yield back the balance of my time.
Mr. CARBAJAL. Mr. Speaker, I urge my colleagues to support this
legislation, and I yield back the balance of my time.
Mr. PETERSON. Mr. Speaker, I rise today in support of the Senate
companion to my bill, S. 4075 the Reinvigorating Lending for the Future
Act of 2020. The U.S. Economic Development Administration and its
Revolving Loan Fund program provide desperately needed loans to small
businesses and local community organizations across the United States.
This funding is often a lifeline to rural communities overlooked by
traditional financing. However, under current burdensome regulations,
EDA RLF grantees must report on these funds ``in perpetuity''--even on
loans made and paid back decades ago. I have heard from the Minnesota
Association of Development Organizations, 8 of the 10 organizations
serve my district, that this requirement takes away valuable time from
the work at hand which is providing access to capital and supporting
businesses.
Now more than ever, as many Americans are struggling to stay afloat
during the COVID-19 pandemic, the RLF Act is a vital sign of support to
our small businesses back home. My bill would remove this unnecessary
requirement and allow local communities the freedom they need to
recover their economies. This bipartisan legislation requires no
additional funding, and creates more flexibility for regional economic
development. The RLF Act returns decision making to the local units of
government, eliminates unnecessary reporting and is just good common
sense. I urge my colleagues to support this important bill.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from California (Mr. Carbajal) that the House suspend the
rules and pass the bill, S. 4075.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill was passed.
A motion to reconsider was laid on the table.
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