II 

116TH CONGRESS 

2D SESSION S. 4676 

To improve the debt relief program under the CARES Act, and for other 

purposes. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 23, 2020 

Mr. COONS (for himself, Mr. CARDIN, Ms. KLOBUCHAR, Mrs. SHAHEEN, Ms. 

CANTWELL, Mr. MARKEY, Ms. HIRONO, Mrs. GILLIBRAND, Mr. VAN

HOLLEN, and Mr. KING) introduced the following bill; which was read 

twice and referred to the Committee on Finance 

A BILL 

To improve the debt relief program under the CARES Act, 

and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Small Business Debt 

5 Relief Extension Act of 2020’’. 

6 SEC. 2. SUBSIDY FOR CERTAIN LOAN PAYMENTS. 

7 (a) IN GENERAL.—Section 1112 of the CARES Act 

8 (15 U.S.C. 9011) is amended— 

9 (1) in subsection (c)— 


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1 (A) in paragraph (1)— 

2 (i) in the matter preceding subpara3 graph (A), by inserting ‘‘, without regard 

4 to the date on which the covered loan is 

5 fully disbursed and subject to availability 

6 of funds’’ after ‘‘status’’; 

7 (ii) by amending subparagraphs (A) 

8 and (B) to read as follows: 

9 ‘‘(A) with respect to a covered loan ap10 proved by the Administration before the date of 

11 enactment of this Act and not on deferment— 

12 ‘‘(i) except as provided in clauses (ii) 

13 and (iii), for the 6-month period beginning 

14 with the next payment due on the covered 

15 loan after the covered loan is fully dis16 bursed; 

17 ‘‘(ii) for the 11-month period begin18 ning with the next payment due on the 

19 covered loan after the covered loan is fully 

20 disbursed, with respect to a covered loan 

21 that— 

22 ‘‘(I) is described in subsection 

23 (a)(1)(B) or is a loan guaranteed by 

24 the Administration under section 7(a) 

25 of the Small Business Act (15 U.S.C. 


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1 636(a)) other than a loan described in 

2 clause (i) or (ii) of subsection 

3 (a)(1)(A); and 

4 ‘‘(II) is made to a borrower oper5 ating primarily in an industry other 

6 than an industry that is assigned a 

7 North American Industry Classifica8 tion System code beginning with 61, 

9 71, or 72; and 

10 ‘‘(iii) for the 18-month period begin11 ning with the next payment due on the 

12 covered loan after the covered loan is fully 

13 disbursed, with respect to— 

14 ‘‘(I) a covered loan described in 

15 paragraph (1)(A)(i) or paragraph (2) 

16 of subsection (a); or 

17 ‘‘(II) any covered loan made to a 

18 borrower operating primarily in an in19 dustry that is assigned— 

20 ‘‘(aa) a North American In21 dustry Classification System code 

22 beginning with 61, 71, or 72; or 

23 ‘‘(bb) the North American 

24 Industry Classification System 

25 Code 485510; 


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1 ‘‘(B) with respect to a covered loan ap2 proved by the Administration before the date of 

3 enactment of this Act and on deferment— 

4 ‘‘(i) except as provided in clauses (ii) 

5 and (iii), for the 6-month period beginning 

6 with the next payment due on the covered 

7 loan after the deferment period and after 

8 the covered loan is fully disbursed; 

9 ‘‘(ii) for the 11-month period begin10 ning with the next payment due on the 

11 covered loan after the deferment period 

12 and after the covered loan is fully dis13 bursed, with respect to a covered loan de14 scribed in subclause (I) or (II) of subpara15 graph (A)(ii); and 

16 ‘‘(iii) for the 18-month period begin17 ning with the next payment due on the 

18 covered loan after the deferment period 

19 and after the covered loan is fully dis20 bursed, with respect to a covered loan de21 scribed in subclause (I) or (II) of subpara22 graph (A)(iii); and’’; and 

23 (iii) in subparagraph (C)— 


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1 (I) by striking ‘‘covered loan 

2 made’’ and inserting ‘‘covered loan 

3 approved by the Administration’’; 

4 (II) by striking ‘‘6 months after’’ 

5 and inserting ‘‘18 months after’’; 

6 (III) by inserting ‘‘(or, for a cov7 ered loan made by an intermediary to 

8 a small business concern using loans 

9 or grants received under section 7(m) 

10 of the Small Business Act (15 U.S.C. 

11 636(m)) or guaranteed by the Admin12 istration under the Community Ad13 vantage Pilot Program of the Admin14 istration, for the 12-month period)’’ 

15 after ‘‘6-month period’’; and 

16 (IV) by inserting ‘‘after the cov17 ered loan is fully disbursed’’ after 

18 ‘‘due on the covered loan’’; and 

19 (B) by adding at the end the following: 

20 ‘‘(4) ADDITIONAL PROVISIONS FOR NEW

21 LOANS.—With respect to a loan described in para22 graph (1)(C)— 

23 ‘‘(A) the Administrator may further extend 

24 the 18-month period described in paragraph 


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1 (1)(C) if there are sufficient funds to continue 

2 those payments; and 

3 ‘‘(B) during the underwriting process, a 

4 lender of such a loan may consider the pay5 ments under this section as part of a com6 prehensive review to determine the ability to 

7 repay over the entire period of maturity of the 

8 loan. 

9 ‘‘(5) ELIGIBILITY.—Eligibility for a covered 

10 loan to receive such payments of principal, interest, 

11 and any associated fees under this subsection shall 

12 be based on the date on which the covered loan is 

13 approved by the Administration. 

14 ‘‘(6) AUTHORITY TO REVISE EXTENSIONS.— 

15 ‘‘(A) IN GENERAL.—As part of preparing 

16 the reports under subsection (i)(5) that are re17 quired to be submitted not later than January 

18 15, 2021, and not later than June 15, 2021, 

19 the Administrator conduct an evaluation of 

20 whether amounts made available to make pay21 ments under this subsection are sufficient to 

22 make the payments for the period described in 

23 paragraph (1). 

24 ‘‘(B) PLAN.—If the Administrator deter25 mines under subparagraph (A) that the 


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1 amounts made available to make payments 

2 under this subsection are insufficient, the Ad3 ministrator shall— 

4 ‘‘(i) develop a plan to proportionally 

5 reduce the number of months provided for 

6 each period described in paragraph (1), 

7 while ensuring all amounts made available 

8 to make payments under this subsection 

9 are fully expended; and 

10 ‘‘(ii) before taking action under the 

11 plan developed under clause (i), include in 

12 the applicable report under subsection 

13 (i)(5) the plan and the data that informs 

14 the plan. 

15 ‘‘(7) RULE OF CONSTRUCTION.—Nothing in 

16 this subsection shall preclude a borrower from re17 ceiving full payments of principal, interest, and any 

18 associated fees as authorized by subsection.’’; 

19 (2) by redesignating subsection (f) as sub20 section (k); and 

21 (3) by inserting after subsection (e) the fol22 lowing: 

23 ‘‘(f) ELIGIBILITY FOR NEW LOANS.—For each indi24 vidual lending program under this section, the Adminis25 trator may establish a minimum loan maturity period, takVerDate Sep 11 2014 23:16 Oct 10, 2020 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S4676.IS S4676

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1 ing into consideration the normal underwriting require2 ments for each such program, with the goal of preventing 

3 abuse under the program. 

4 ‘‘(g) LIMITATION ON ASSISTANCE.—A borrower may 

5 not receive assistance under subsection (c) for more than 

6 1 covered loan of the borrower described in paragraph 

7 (1)(C) of that subsection. 

8 ‘‘(h) TAXABILITY.—For purposes of the Internal 

9 Revenue Code of 1986— 

10 ‘‘(1) any payment made under subsection (c) 

11 shall be treated as paid by the person on whose be12 half such payment is made, 

13 ‘‘(2) no amount shall be included in the gross 

14 income of the borrower by reason of a payment 

15 made under subsection (c), and 

16 ‘‘(3) no deduction shall be denied or reduced, 

17 no tax attribute shall be reduced, and no basis in18 crease shall be denied, by reason of the exclusion 

19 from gross income provided by paragraph (2). 

20 ‘‘(i) REPORTING AND OUTREACH.— 

21 ‘‘(1) UPDATED INFORMATION.— 

22 ‘‘(A) IN GENERAL.—Not later than 7 days 

23 after the date of enactment of the Small Busi24 ness Debt Relief Extension Act of 2020, the 

25 Administrator shall make publicly available inVerDate Sep 11 2014 23:16 Oct 10, 2020 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S4676.IS S4676

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1 formation regarding the modifications to the as2 sistance provided under this section under the 

3 amendments made by such Act. 

4 ‘‘(B) GUIDANCE.—Not later than 14 days 

5 after the date of enactment of the Small Busi6 ness Debt Relief Extension Act of 2020, the 

7 Administrator shall issue guidance on imple8 menting the modifications to the assistance pro9 vided under this section under the amendments 

10 made by such Act. 

11 ‘‘(2) PUBLICATION OF LIST.—Not later than 14 

12 days after the date of enactment of the Small Busi13 ness Debt Relief Extension Act of 2020, the Admin14 istrator shall transmit to each lender of a covered 

15 loan a list of each borrower of a covered loan that 

16 includes the North American Industry Classification 

17 System code assigned to the borrower, based on the 

18 records of the Administration, to assist the lenders 

19 in identifying which borrowers qualify for an exten20 sion of payments under subsection (c). 

21 ‘‘(3) EDUCATION AND OUTREACH.—The Ad22 ministrator shall provide education, outreach, and 

23 communication to lenders, borrowers, district offices, 

24 and resource partners of the Administration in order 

25 to ensure full and proper compliance with this secVerDate Sep 11 2014 23:16 Oct 10, 2020 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S4676.IS S4676

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1 tion, encourage broad participation with respect to 

2 covered loans that have not yet been approved by the 

3 Administrator, and help lenders transition borrowers 

4 from subsidy payments under this section directly to 

5 a deferral when suitable for the borrower. 

6 ‘‘(4) NOTIFICATION.—Not later than 30 days 

7 after the date of enactment of the Small Business 

8 Debt Relief Extension Act of 2020, the Adminis9 trator shall mail a letter to each borrower of a cov10 ered loan that includes— 

11 ‘‘(A) an overview of assistance provided 

12 under this section; 

13 ‘‘(B) the rights of the borrower to receive 

14 that assistance; 

15 ‘‘(C) how to seek recourse with the Admin16 istrator or the lender of the covered loan if the 

17 borrower has not received that assistance; and 

18 ‘‘(D) the rights of the borrower to request 

19 a loan deferral from a lender, and guidance on 

20 how to do successfully transition directly to a 

21 loan deferral once subsidy payments under this 

22 section are concluded. 

23 ‘‘(5) MONTHLY REPORTING.—Not later than 

24 the 15th of each month beginning after the date of 

25 enactment of the Small Business Debt Relief ExtenVerDate Sep 11 2014 23:16 Oct 10, 2020 Jkt 019200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S4676.IS S4676

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1 sion Act of 2020, the Administrator shall submit to 

2 Congress a report on assistance provided under this 

3 section, which shall include— 

4 ‘‘(A) monthly and cumulative data on pay5 ments made under this section as of the date of 

6 the report, including a breakdown by— 

7 ‘‘(i) the number of participating bor8 rowers; 

9 ‘‘(ii) the volume of payments made for 

10 each type of covered loan; and 

11 ‘‘(iii) the volume of payments made 

12 for covered loans made before the date of 

13 enactment of this Act and loans made 

14 after such date of enactment; 

15 ‘‘(B) the names of any lenders of covered 

16 loans that have not submitted information on 

17 the covered loans to the Administrator during 

18 the preceding month; and 

19 ‘‘(C) an update on the education and out20 reach activities of the Administration carried 

21 out under paragraph (3).’’. 

22 (b) EFFECTIVE DATE.—The amendments made by 

23 this section shall apply as if included in the enactment 

24 of section 1112 of the CARES Act (15 U.S.C. 9011). 

Æ 


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