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

# Plain Language Summary: S 2718 **What the Bill Would Do** This bill aims to strengthen Community Development Financial Institutions (CDFIs)—specialized banks and lenders that serve low-income communities and underserved areas. The bill would provide additional funding to help these institutions maintain adequate cash reserves and liquidity, making it easier for them to continue lending to small businesses, homebuyers, and families in communities that traditional banks often overlook. **Who It Affects** The bill primarily benefits CDFIs themselves, as well as their customers: small business owners, low-income individuals seeking mortgages, and residents of economically disadvantaged neighborhoods. Taxpayers would be affected as federal funds would support this initiative. **Current Status** As of now, S 2718 is in committee, meaning it has been introduced but has not yet advanced to a full Senate vote.

The bill was sponsored by Senator Mark Warner (D-VA). Without additional action, it remains in the early stages of the legislative process.