[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6268 Introduced in House (IH)]
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116th CONGRESS
2d Session
H. R. 6268
To establish a business stabilization direct loan program and the
authority to establish a secondary market guarantee in the Small
Business Administration, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 12, 2020
Ms. Velazquez introduced the following bill; which was referred to the
Committee on Small Business
_______________________________________________________________________
A BILL
To establish a business stabilization direct loan program and the
authority to establish a secondary market guarantee in the Small
Business Administration, and for other purposes.
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 ``SBA Business Stabilization Direct
Loan Program Act of 2020''.
SEC. 2. BUSINESS STABILIZATION DIRECT LOAN PROGRAM.
(a) In General.--The Administrator of the Small Business
Administration shall carry out a program to make loans directly to
eligible borrowers.
(b) Eligible Borrower Defined.--In this section, the term
``eligible borrower'' means a person who--
(1) is a small business concern as defined under section 3
of the Small Business Act (15 U.S.C. 632); and
(2) is located in a State or territory of the United States
with a confirmed or presumed positive case of COVID-19.
(c) Use of Funds.--In addition to the use of proceeds currently
permitted under section 7(a) of the Small Business Act (15 U.S.C.
636(a)), loans made under this section may be used for the following
purposes:
(1) To make periodic payments of principal and interest,
for a period not to exceed 12 months, on a loan or a loan
guarantee made to an eligible borrower that meets the
eligibility standards of such section 7(a).
(2) To provide benefits to employees of the eligible
borrower, including group life insurance, disability insurance,
sick leave, annual leave, educational benefits, paid family
leave, or retirement benefits (including a pension plan or
IRA).
(3) To pay wages to employees of the eligible borrower, and
related State and Federal payroll taxes, except that loan
proceeds may not be used to pay amounts under a garnishment
order issued by an agency of a State or Federal Government.
(4) To provide technology, hardware, or software for a
shift to telework or remote work for employees of the eligible
borrower to enable continuity of operations.
(5) To pay rent or utilities due or owed on any place of
business of the eligible borrower.
(6) To refinance an existing debt (including interest) in
an amount not to exceed 50 percent of the amount of the debt.
(7) To provide floor plan financing or other revolving line
of credit.
(8) To pay past-due Federal, State, or local payroll taxes,
sales taxes, or other similar taxes that are required to be
collected by the eligible borrower and held in trust on behalf
of a Federal, State, or local government entity.
(9) To provide employees and patrons of the eligible
borrower with the necessary items specified by any public
health authority to mitigate the spread of COVID-19.
(d) Loan Terms.--
(1) Amount.--Loans made under this section may not exceed
$2,500,000.
(2) Disbursement.--Not more than 20 percent of the proceeds
of a loan made under this section shall be disbursed not later
than 5 calendar days after a loan is approved under this
section.
(3) Term.--Loans made under this section shall be for a
term of 10 years, and a borrower shall not be required to repay
such loan during the 12-month period beginning on the date of
disbursement of the loan.
(4) Interest; fees.--The Administrator may not charge any
interest or fees for a loan made under this section.
(e) Collateral.--The Administrator shall not decline to make a loan
under this section to an otherwise eligible borrower due solely to
inadequate collateral. The Administrator shall accept any available
collateral, including subordinated liens, to secure a loan made under
this section.
(f) Sunset.--
(1) In general.--Except as provided in paragraph (2), the
Administrator of the Small Business Administration may not make
a loan under this section after September 30, 2022.
(2) Extension.--The Administrator may extend authority to
make loans under this section by an additional 6 months by
notifying Congress, in writing, within 10 calendar days before
any extension.
(g) Emergency Rulemaking Authority.--
(1) In general.--Within 15 days after the date of the
enactment of this section, the Administrator of the Small
Business Administration--
(A) shall issue rules to carry out this section;
and
(B) may issue rules to establish a secondary market
for loans made under this section.
(2) Notice.--The notice requirements of section 553(b) of
title 5, United States Code shall not apply to any issuance of
rules under paragraph (1).
(h) Authorization of Appropriations.--There is authorized to be
appropriated to the Administrator of the Small Business Administration
such sums as may be necessary to pay for the cost of making
$25,000,000,000 in direct loans under this section. In the previous
sentence, the cost of direct loans shall be as defined in section 502
of the Congressional Budget Act of 1974 (2 U.S.C. 661a).
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