Increasing Access to Capital Act of 2020

To temporarily reduce fees for certain loans under the Small Business Administration, to increase guarantee amounts on certain loans, and for other purposes. 1. Short title This Act may be cited as the Increasing Access to Capital Act of 2020 2. Temporary fee reductions (a) Purpose The purpose of the section is to waive borrower and lender fees on loans, including a permanent fix to waive fees for veterans and their spouses. (b) Administrative fee waiver (1) In general During the period beginning on the date of enactment of this Act and ending on September 30, 2021, and to the extent that the cost of such elimination or reduction of fees is offset by appropriations, with respect to each loan guaranteed under section 7(a) of the Small Business Act ( 15 U.S.C. 636(a) (A) in lieu of the fee otherwise applicable under section 7(a)(23)(A) of the Small Business Act ( 15 U.S.C. 636(a)(23)(A) (B) in lieu of the fee otherwise applicable under section 7(a)(18)(A) of the Small Business Act ( 15 U.S.C. 636(a)(18)(A) (2) Application of fee eliminations or reductions To the extent that amounts are made available to the Administrator for the purpose of fee eliminations or reductions under paragraph (1), the Administrator shall— (A) first use any amounts provided to eliminate or reduce fees paid by small business borrowers under clauses (i) through (iii) of section 7(a)(18)(A) of the Small Business Act ( 15 U.S.C. 636(a)(18)(A) (B) then use any amounts provided to eliminate or reduce fees under 7(a)(23)(A) of the Small Business Act ( 15 U.S.C. 636(a)(23)(A) (c) Exception To guarantee fee waiver for veterans Section 7(a)(31)(G) of the Small Business Act ( 15 U.S.C. 636(a)(31)(G) (1) by striking clause (ii); and (2) by redesignating clause (iii) as clause (ii). (d) Temporary fee elimination for the 504 loan program (1) In general During the period beginning on the date of enactment of this Act and ending on September 30, 2021, and to the extent the cost of such elimination in fees is offset by appropriations, with respect to each project or loan guaranteed by the Administrator pursuant to title V of the Small Business Investment Act of 1958 ( 15 U.S.C. 695 (A) the Administrator shall, in lieu of the fee otherwise applicable under section 503(d)(2) of the Small Business Investment Act of 1958 ( 15 U.S.C. 697(d)(2) (B) a development company shall, in lieu of the processing fee under section 120.971(a)(1) of title 13, Code of Federal Regulations (relating to fees paid by borrowers), or any successor thereto, collect no fee. (2) Reimbursement for waived fees (A) In general To the extent that the cost of such payments is offset by appropriations, the Administrator shall reimburse each development company that does not collect a processing fee pursuant to paragraph (1)(B). (B) Amount The payment to a development company under subparagraph (A) shall be in an amount equal to 1.5 percent of the net debenture proceeds for which the development company does not collect a processing fee pursuant to paragraph (1)(B). 3. Guarantee amounts (a) Purpose The purpose of this section is to increase loan guarantee amounts in order to mitigate risk for lenders and keep credit flowing, including an emphasis on underserved borrowers. (b) 7 (a) (1) In general Section 7(a)(2)(A) of the Small Business Act ( 15 U.S.C. 636(a)(2)(A) ), such participation by the Administration shall be equal to or the Community Advantage Pilot Program of the Administration), such participation by the Administration shall be equal to 90 percent of the balance of the financing outstanding at the time of disbursement of the loan. (2) Termination Effective September 30, 2021, section 7(a)(2)(A) of the Small Business Act ( 15 U.S.C. 636(a)(2)(A) (A) In general Except as provided in subparagraphs (B), (D), and (E), in an agreement to participate in a loan on a deferred basis under this subsection (including a loan made under the Preferred Lenders Program), such participation by the Administration shall be equal to— (i) 75 percent of the balance of the financing outstanding at the time of disbursement of the loan, if such balance exceeds $150,000; or (ii) 85 percent of the balance of the financing outstanding at the time of disbursement of the loan, if such balance is less than or equal to $150,000. . (c) Express loan guarantee amounts and loan size increases (1) Temporary modification Section 7(a)(31) of the Small Business Act ( 15 U.S.C. 636(a)(31) (A) in subparagraph (A)(iv), by striking with a guaranty rate of not more than 50 percent. with a guarantee rate— (I) for a loan in an amount less than or equal to $350,000, of not more than 90 percent; and (II) for a loan in an amount greater than $350,000, of not more than 75 percent. ; and (B) in subparagraph (D), by striking $350,000 $1,000,000 (2) Increase in availability Effective September 30, 2021, section 7(a)(31) of the Small Business Act ( 15 U.S.C. 636(a)(31) (A) in subparagraph (A)(iv), by striking guarantee rate guarantee rate of not more than 50 percent. (B) in subparagraph (D), by striking $1,000,000 $500,000 4. Maximum loan amount and program levels for 7 (a) (a) Purpose The purpose of this section is to temporarily increase the maximum loan size in order to expand the reach of this long-term capital. (b) Maximum loan amount During the period beginning on the date of enactment of this Act and ending on September 30, 2021, with respect to any loan guaranteed under section 7(a) of the Small Business Act ( 15 U.S.C. 636(a) (c) Program levels During each of fiscal years 2020 and 2021, commitments for general business loans authorized under section 7(a) of the Small Business Act ( 15 U.S.C. 636(a) 5. Maximum loan amount for 504 loans (a) Purpose The purpose of this section is to make refinancing of fixed assets more flexible for small business concerns seeking immediate financing and relief from the COVID–19 crisis. (b) Temporary increase During the period beginning on the date of enactment of this Act and ending on September 30, 2021, with respect to each project or loan guaranteed by the Administrator pursuant to title V of the Small Business Investment Act of 1958 ( 15 U.S.C. 695 (c) Permanent increase for small manufacturers Effective on October 1, 2021, section 502(2)(A)(iii) of the Small Business Investment Act of 1958 ( 15 U.S.C. 696(2)(A)(iii) $5,500,000 $10,000,000

Summary: Increasing Access to Capital Act of 2020 This bill requires the Small Business Administration (SBA) to temporarily waive, or reduce to the maximum extent possible, certain fees on SBA loans. The bill also temporarily increases the guarantee amount and loan size for certain SBA loans, including express loans, and it permanently waives the guarantee fee on SBA loans for veterans.