II 

116TH CONGRESS 

2D SESSION S. 4817 

To modify the 7(a) loan guaranty program of the Small Business 

Administration, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

OCTOBER 20 (legislative day, OCTOBER 19), 2020 

Mr. RUBIO (for himself, Mr. RISCH, Ms. COLLINS, and Mr. HAWLEY) introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship 

A BILL 

To modify the 7(a) loan guaranty program of the Small 

Business Administration, 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 Access 

5 to Recovery Capital Act’’. 

6 SEC. 2. CHANGES TO THE 7(a) LOAN GUARANTY PROGRAM. 

7 (a) FEE WAIVER.—During the 1-year period fol8 lowing the date of enactment of this Act, and to the extent 

9 that the cost of such elimination or reduction of fees is 

10 offset by appropriations, with respect to each loan guaranVerDate Sep 11 2014 21:46 Oct 28, 2020 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S4817.IS S4817

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1 teed under section 7(a) of the Small Business Act (15 

2 U.S.C. 636(a))— 

3 (1) in lieu of the fee otherwise applicable under 

4 section 7(a)(23)(A) of the Small Business Act (15 

5 U.S.C. 636(a)(23)(A)), the Administrator shall col6 lect no fee or reduce fees to the maximum extent 

7 possible; and 

8 (2) for which the application is approved on or 

9 after the date of enactment of this Act, the Adminis10 trator shall, in lieu of the fee otherwise applicable 

11 under section 7(a)(18)(A) of the Small Business Act 

12 (15 U.S.C. 636(a)(18)(A)), collect no fee or reduce 

13 fees to the maximum extent possible. 

14 (b) GUARANTEE AMOUNT.— 

15 (1) IN GENERAL.—Section 7(a)(2) of the Small 

16 Business Act (15 U.S.C. 636(a)(2)) is amended— 

17 (A) in the matter preceding subparagraph 

18 (A), by striking ‘‘(E), and (F)’’ and inserting 

19 ‘‘and (E)’’; 

20 (B) in subparagraph (A), by striking 

21 ‘‘equal to—’’ and all that follows through the 

22 end of the subparagraph and inserting ‘‘equal 

23 to 95 percent of the balance of the financing 

24 outstanding at the time of disbursement of the 

25 loan.’’; 


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1 (C) by striking subparagraphs (D) and (E) 

2 and inserting the following: 

3 ‘‘(D) PARTICIPATION UNDER THE EX4 PRESS LOAN PROGRAM.—In an agreement to 

5 participate in a loan on a deferred basis under 

6 paragraph (31), the participation by the Admin7 istration shall be equal to— 

8 ‘‘(i) 75 percent of the balance of the 

9 financing outstanding at the time of dis10 bursement of the loan, if such balance ex11 ceeds $150,000; or 

12 ‘‘(ii) 85 percent of the balance of the 

13 financing outstanding at the time of dis14 bursement of the loan, if such balance is 

15 less than or equal to $150,000.’’; and 

16 (D) by redesignating subparagraph (F) as 

17 subparagraph (E). 

18 (2) PROSPECTIVE REPEAL.—Effective 1 year 

19 after the date of enactment of this Act, section 

20 7(a)(2) of the Small Business Act (15 U.S.C. 

21 636(a)(2)) is amended— 

22 (A) in the matter preceding subparagraph 

23 (A), by striking ‘‘and (E)’’ and inserting ‘‘(E), 

24 and (F)’’; 


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1 (B) in subparagraph (A), by striking 

2 ‘‘equal to 95 percent of the balance of financing 

3 outstanding at the time of disbursement of the 

4 loan.’’ and inserting ‘‘equal to— 

5 ‘‘(i) 75 percent of the balance of the 

6 financing outstanding at the time of dis7 bursement of the loan, if such balance ex8 ceeds $150,000; or 

9 ‘‘(ii) 85 percent of the balance of the 

10 financing outstanding at the time of dis11 bursement of the loan, if such balance is 

12 less than or equal to $150,000.’’; 

13 (C) by redesignating subparagraph (E) as 

14 subparagraph (F); and 

15 (D) by striking subparagraph (D) and in16 serting the following: 

17 ‘‘(D) PARTICIPATION UNDER EXPORT

18 WORKING CAPITAL PROGRAM.—In an agreement 

19 to participate in a loan on a deferred basis 

20 under the Export Working Capital Program es21 tablished pursuant to paragraph (14)(A), such 

22 participation by the Administration shall be 90 

23 percent. 

24 ‘‘(E) PARTICIPATION IN INTERNATIONAL

25 TRADE LOAN.—In an agreement to participate 


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1 in a loan on a deferred basis under paragraph 

2 (16), the participation by the Administration 

3 may not exceed 90 percent.’’. 

4 (c) MAXIMUM LOAN AMOUNT.— 

5 (1) IN GENERAL.—Section 7(a)(3) of the Small 

6 Business Act (15 U.S.C. 636(a)(3)) is amended— 

7 (A) in subparagraph (A)— 

8 (i) by striking ‘‘$3,750,000’’ and in9 serting ‘‘$9,500,000’’; and 

10 (ii) by striking ‘‘$5,000,000’’ and in11 serting ‘‘$10,000,000’’; and 

12 (B) in subparagraph (B)— 

13 (i) by striking ‘‘$4,500,000’’ and in14 serting ‘‘$9,500,000’’; and 

15 (ii) by striking ‘‘$5,000,000’’ and in16 serting ‘‘$10,000,000’’. 

17 (2) PROSPECTIVE REPEAL.—Effective 1 year 

18 after the date of enactment of this Act, section 

19 7(a)(3) of the Small Business Act (15 U.S.C. 

20 636(a)(3)) is amended— 

21 (A) in subparagraph (A)— 

22 (i) by striking ‘‘$9,500,000’’ and in23 serting ‘‘$3,750,000’’; and 

24 (ii) by striking ‘‘$10,000,000’’ and in25 serting ‘‘$5,000,000’’; and 


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1 (B) in subparagraph (B)— 

2 (i) by striking ‘‘$9,500,000’’ and in3 serting ‘‘$4,500,000’’; and 

4 (ii) by striking ‘‘$10,000,000’’ and in5 serting ‘‘$5,000,000’’. 

6 (d) COVID–19 GUIDANCE.—Not later than 10 days 

7 after the date of enactment of this Act, the Administrator 

8 shall issue guidance that— 

9 (1) temporarily updates the standard operating 

10 procedures of the Administration to provide require11 ments for appropriate lending given the economic 

12 conditions and considerations as of the date of en13 actment of this Act; and 

14 (2) shall be utilized with respect to all approval 

15 and subsequent actions taken on loans made under 

16 such section 7(a) during the 1-year period following 

17 the date of enactment of this Act. 

18 (e) EXTENSION OF SUBSIDY ON 7(a) LOAN PAY19 MENTS.—Section 1112 of the CARES Act (15 U.S.C. 

20 9011) is amended— 

21 (1) in subsection (c)— 

22 (A) in paragraph (1)— 

23 (i) in the matter preceding subpara24 graph (A), by inserting ‘‘or loan described 


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1 in subparagraph (D)’’ after ‘‘covered 

2 loan’’; 

3 (ii) in subparagraph (B), by striking 

4 ‘‘and’’ at the end; 

5 (iii) in subparagraph (C), by striking 

6 the period at the end and inserting ‘‘; 

7 and’’; and 

8 (iv) by adding at the end the fol9 lowing: 

10 ‘‘(D) with respect to a loan that is guaran11 teed by the Administration under section 7(a) 

12 of the Small Business Act (15 U.S.C. 636(a)), 

13 including a loan made under the Community 

14 Advantage Pilot Program of the Administration 

15 and a loan made under paragraph (36) of such 

16 section 7(a), that was made during the period 

17 beginning on the date of enactment of this sub18 paragraph and ending on the date that is 1 

19 year after such date of enactment, for the 1- 

20 year period beginning with the first payment 

21 due on the loan.’’; 

22 (B) in paragraph (2), by inserting ‘‘or loan 

23 described in paragraph (1)(D), as applicable,’’ 

24 after ‘‘covered loan’’; and 


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1 (C) in paragraph (3), by inserting ‘‘or loan 

2 described in paragraph (1)(D), as applicable,’’ 

3 after ‘‘covered loan’’; 

4 (2) in subsection (d)(2)— 

5 (A) by striking ‘‘covered loan durations’’ 

6 and inserting ‘‘the duration of any covered loan 

7 or loan described in subsection (c)(1)(D)’’; and 

8 (B) by inserting ‘‘or loans described in 

9 subsection (c)(1)(D), as applicable,’’ after ‘‘cov10 ered loans’’; and 

11 (3) in subsection (e)— 

12 (A) by inserting ‘‘or loan described in sub13 section (c)(1)(D)’’ after ‘‘a covered loan’’; and 

14 (B) by inserting ‘‘or loan described in sub15 section (c)(1)(D), as applicable,’’ after ‘‘the cov16 ered loan’’. 

Æ 


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