[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6341 Introduced in House (IH)]
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116th CONGRESS
2d Session
H. R. 6341
To establish a business stabilization guaranteed loan program and
authority to establish a secondary market in the Small Business
Administration, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 23, 2020
Ms. Craig introduced the following bill; which was referred to the
Committee on Small Business
_______________________________________________________________________
A BILL
To establish a business stabilization guaranteed loan program and
authority to establish a secondary market 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 ``Small Business Relief Guaranteed
Loan Program Act of 2020''.
SEC. 2. BUSINESS STABILIZATION GUARANTEED LOAN PROGRAM.
(a) In General.--The Administrator of the Small Business
Administration shall carry out a program to guarantee loans to eligible
borrowers, made by banks or other lenders.
(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 guaranteed 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 guaranteed under this section may not
exceed $2,500,000.
(2) Disbursement.--With respect to a loan guaranteed under
this section, loan amounts shall be disbursed as follows:
(A) Not less than 10 percent, but not more than 20
percent, of such amount shall be disbursed not later
than 5 calendar days after such approval.
(B) Not later than 14 calendar days after such
approval, any remaining amounts shall be disbursed.
(3) Guarantee.--Loans guaranteed under this section shall
be 100 percent guaranteed by the Administrator of the Small
Business Administration.
(4) Interest.--The Administrator and participating lenders
shall not charge interest on any loan guaranteed under this
section.
(e) Repayment.--Repayment for loans guaranteed under this section--
(1) shall be amortized over a period of time not to exceed
10 years; and
(2) may not begin until 12 months (which may be extended by
the Administrator of the Small Business Administration) after
the final disbursement of loan amounts pursuant to subsection
(d)(2).
(f) Collateral.--A lender may not decline to make a loan described
under this section to an otherwise eligible borrower due solely to
inadequate collateral. The Administrator shall not decline to honor a
guarantee on a loan made by a lender that is guaranteed under this
section solely due to inadequate collateral. Lenders shall accept any
available collateral, including subordinated liens, to secure a loan
guaranteed under this section.
(g) Fees.--Neither the Administrator of the Small Business
Administration nor any lender may charge any fees to an applicant in
connection with a loan guaranteed under this section.
(h) Forgiveness.--If an eligible borrower that receives loan
proceeds under this section demonstrates to the Administrator that the
number of employees of such eligible borrower on December 31, 2021, is
greater than or equal to the number of employees of such eligible
borrower on December 31, 2019, the Administrator shall pay to the
lender of such eligible borrower's loan not more than 50 percent of the
outstanding principal on such loan.
(i) Sunset.--
(1) In general.--Except as provided in paragraph (2), the
Administrator of the Small Business Administration may not
guarantee a loan under this section after September 30, 2022.
(2) Extension.--The Administrator may extend authority to
guarantee loans under this section by an additional 6 months by
notifying Congress, in writing, within 10 calendar days before
any extension.
(j) 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).
(k) Authorization of Appropriations.--There is authorized to be
appropriated $100,000,000,000 to the Administrator of the Small
Business Administration to carry out this section.
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