[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6304 Introduced in House (IH)]
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116th CONGRESS
2d Session
H. R. 6304
To authorize the Administrator of the Small Business Administration to
subsidize payments on loans guaranteed under the 7(a) and 504 loan
programs or made using funds under the microloan program, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 19, 2020
Mr. Delgado introduced the following bill; which was referred to the
Committee on Small Business
_______________________________________________________________________
A BILL
To authorize the Administrator of the Small Business Administration to
subsidize payments on loans guaranteed under the 7(a) and 504 loan
programs or made using funds under the microloan program, 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 ``Small Business Repayment Relief Act
of 2020''.
SEC. 2. SUBSIDY FOR CERTAIN LOAN PAYMENTS.
(a) Definitions.--In this section--
(1) the terms ``Administration'' and ``Administrator'' mean
the Small Business Administration and the Administrator
thereof; and
(2) the term ``covered loan'' means a loan that is--
(A) guaranteed by the Administration under--
(i) section 7(a) of the Small Business Act
(15 U.S.C. 636(a)), including a loan made under
the Community Advantage Pilot Program of the
Administration; or
(ii) title V of the Small Business
Investment Act of 1958 (15 U.S.C. 695 et seq.);
or
(B) made by an intermediary to a small business
concern (as defined in section 3 of the Small Business
Act (15 U.S.C. 632)) using loans or grants received
under section 7(m) of the Small Business Act (15 U.S.C.
636(m)).
(b) Sense of Congress.--It is the sense of Congress that--
(1) all borrowers are adversely affected by COVID-19;
(2) relief payments by the Administration are appropriate
for all borrowers; and
(3) in addition to the relief provided under this Act, the
Administration should encourage lenders to provide payment
deferments, when appropriate, and to extend the maturity of
covered loans, so as to avoid balloon payments or any
requirement for increases in debt payments resulting from
deferments provided by lenders during the period of the
national emergency declared by the President under the National
Emergencies Act (50 U.S.C. 1601 et seq.) with respect to the
Coronavirus Disease 2019 (COVID-19).
(c) Principal and Interest Payments.--
(1) In general.--The Administrator shall pay the principal,
interest, and any associated fees that are owed on a covered
loan in a regular servicing status--
(A) with respect to a covered loan made before the
date of enactment of this Act and not on deferment, for
the 6-month period beginning with the next payment due
on the covered loan;
(B) with respect to a covered loan made before the
date of enactment of this Act and on deferment, for the
6-month period beginning with the next payment due on
the covered loan after the deferment period; and
(C) with respect to a covered loan made during the
period beginning on the date of enactment of this Act
and ending on the date that is 6 months after such date
of enactment, for the 6-month period beginning with the
first payment due on the covered loan.
(2) Timing of payment.--The Administrator shall begin
making payments under paragraph (1) on a covered loan not later
than 30 days after the date on which the first such payment is
due.
(3) Application of payment.--Any payment made by the
Administrator under paragraph (1) shall be applied to the
covered loan such that the borrower is relieved of the
obligation to pay that amount.
(d) Other Requirements.--The Administrator shall--
(1) communicate and coordinate with the Federal Deposit
Insurance Corporation, the Office of the Comptroller of the
Currency, and State bank regulators to encourage those entities
to not require lenders to increase their reserves on account of
receiving payments made by the Administrator under subsection
(c);
(2) waive statutory limits on maximum loan maturities for
any covered loan durations where the lender provides a deferral
and extends the maturity of covered loans during the 1-year
period following the date of enactment of this Act; and
(3) when necessary to provide more time because of the
potential of higher volumes, travel restrictions, and the
inability to access some properties during the COVID-19
pandemic, extend lender site visit requirements to--
(A) not more than 60 days (which may be extended at
the discretion of the Administration) after the
occurrence of an adverse event, other than a payment
default, causing a loan to be classified as in
liquidation; and
(B) not more than 90 days after a payment default.
(e) Rule of Construction.--Nothing in this section may be construed
to limit the authority of the Administrator to make payments pursuant
to subsection (c) with respect to a covered loan solely because the
covered loan has been sold in the secondary market.
(f) Authorization of Appropriations.--There is authorized to be
appropriated to the Administrator $16,800,000,000 to carry out this
section.
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