Reinvigorating Lending for the Future Act

Floor Speech

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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''. 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).''.

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Mr. CARBAJAL. 4075.

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.
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Mr. CARBAJAL. Mr. Speaker, I urge my colleagues to support this legislation, and I yield back the balance of my time.

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