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

This bill aims to help community lenders keep making loans in neighborhoods that need them most. It lets a federal fund give money to organizations to buy loans from community lenders, provide guarantees, and offer other credit support. This gives those lenders more cash on hand so they can make more small business, home, and community loans, including for affordable housing . The fund can support groups whose main purpose is community development, even if they aren’t themselves community lenders, with priority for groups that have experience, can grow lending by drawing in private dollars, and will serve places with big unmet needs or broad areas of the country .

Money earned from certain past federal investments (like interest and dividends) must be put back into this fund to support more lending and technical help. The Treasury must report each year through 2028 on how much was done, including loans bought from community lenders, support for affordable housing, and the impact on lender competition and access to cash .

• Who is affected: Community lenders and the groups that support them, plus borrowers in underserved areas who need business, housing, or community loans .
• What changes: The fund can buy loans, offer guarantees, and back other credit tools; it can fund qualified organizations beyond just community lenders; and it recycles earnings back into more community lending .
• Why it matters: More cash flow for lenders means more loans for small businesses, housing, and neighborhood projects in places that often get overlooked .
• When: Annual public reports run through 2028 to track results and impact on affordable housing and lender liquidity .