1. Short title This Act may be cited as the Scaling Community Lenders Act of 2023 . 2. Capitalization assistance to enhance liquidity (a) In general Section 113 of the Community Development Banking and Financial Institutions Act of 1994 ( 12 U.S.C. 4712 ) is amended— (1) by striking subsection (a) and inserting the following: (a) Assistance (1) In general The Fund may provide funds to organizations for the purpose of— (A) purchasing loans, loan participations, or interests therein from community development financial institutions; (B) providing guarantees, loan loss reserves, or other forms of credit enhancement to promote liquidity for community development financial institutions; and (C) otherwise enhancing the liquidity of community development financial institutions. (2) Construction of Federal Government funds For purposes of this subsection, notwithstanding section 105(a)(9) of the Housing and Community Development Act of 1974 ( 42 U.S.C. 5305(a)(9) ), funds provided pursuant to such Act shall be considered to be Federal Government funds. ; (2) by striking subsection (b) and inserting the following: (b) Selection (1) In general The selection of organizations to receive assistance and the amount of assistance to be provided to any organization under this section shall be at the discretion of the Fund and in accordance with criteria established by the Fund. (2) Eligibility Organizations eligible to receive assistance under this section— (A) shall have a primary purpose of promoting community development