Expediting the EIDL Program Act of 2020

To modify the economic injury disaster loan of the Small Business Administration in response to COVID–19, and for other purposes. 1. Short title This Act may be cited as the Expediting the EIDL Program Act of 2020 2. Economic injury disaster loans (a) Terms With respect to a loan made under section 7(b)(2) of the Small Business Act ( 15 U.S.C. 636(b)(2) (1) may make such a loan to a start-up small business concern; (2) may waive any rules related to affiliation; and (3) shall, with respect to such a loan made to a cooperative, waive any requirement that the borrower of such loan provide a personal guarantee to repay such loan. (b) Preliminary amounts (1) In general An applicant for a loan under section 7(b)(2) of the Small Business Act ( 15 U.S.C. 636(b)(2) (2) Verification Before disbursing amounts under this subsection, the Administrator shall verify that the applicant is a small business concern (as defined under section 3 of such Act ( 15 U.S.C. 632 (3) Repayment An applicant that is subsequently denied a loan under such section 7(b)(2) shall not be required to repay any amounts of an advance provided under this subsection. (c) Approval and ability To repay for small dollar loans With respect to a loan made under section 7(b)(2) of the Small Business Act ( 15 U.S.C. 636(b)(2) (1) may approve an applicant based solely on the credit score of the applicant and shall not require an applicant to submit a tax return or a tax return transcript for such approval; or (2) use alternative appropriate methods to determine an applicant’s ability to repay. (d) Emergencies involving federal primary responsibility qualifying for small business administration assistance Section 7(b)(2) of the Small Business Act ( 15 U.S.C. 636(b)(2) (1) in subparagraph (A), by striking or (2) in subparagraph (B), by striking or (3) in subparagraph (C), by striking or (4) by redesignating subparagraph (D) as subparagraph (E); (5) by inserting after subparagraph (C) the following: (D) an emergency involving Federal primary responsibility determined to exist by the President under section 501(b) of the Robert T. Stafford Disaster Relief and Emergency Assistance Act ( 42 U.S.C. 5191(b) ; (6) in subparagraph (E), as so redesignated— (A) by striking or (C) (C), or (D) (B) by striking disaster declaration disaster or emergency declaration (C) by striking disaster has occurred disaster or emergency has occurred (D) by striking such disaster such disaster or emergency (E) by striking disaster stricken disaster- or emergency-stricken (7) in the flush matter following subparagraph (E) (as so redesignated), by striking the period at the end and inserting the following: : Provided further, (e) Credit elsewhere requirements The flush matter following subparagraph (E) (as so redesignated) of section 7(b)(2) of the Small Business Act ( 15 U.S.C. 636(b)(2) That no loan or guarantee credit elsewhere. The interest rate on a loan or guarantee made under this paragraph shall be not more than 2 percent, if the Administrator determines the applicant is not able to obtain credit elsewhere, or not more than 4 percent, if the Administrator determines the applicant is able to obtain credit elsewhere. (f) Eligibility Section 7(b)(2) of the Small Business Act is amended by striking small agricultural cooperative small cooperative (g) Additional amounts (1) In general The Administrator of the Small Business Administration may increase by 20 percent the amount received by an eligible small business concern under section 7(b)(2) of the Small Business Act ( 15 U.S.C. 636(b)(2) (2) Definition In this section, the term eligible small business concern (A) meets the applicable size standard established under section 3 of the Small Business Act ( 15 U.S.C. 632 (B) is receiving assistance under section 7(b)(2) of the Small Business Act ( 15 U.S.C. 636(b)(2) (h) Authorization of appropriations There is authorized to be appropriated to the Administrator to carry out the loan program under section 7(b)(2) of the Small Business Act ( 15 U.S.C. 636(b)(2) (1) $177,000,000 for administration costs; and (2) $1,000,000,000 to provide loans or other assistance.

Summary: Expediting the EIDL Program Act of 2020 This bill modifies the disbursement of economic injury disaster loans by the Small Business Administration (SBA) with respect to such loans made in response to COVID-19 (i.e., coronavirus disease 2019). Specifically, the bill authorizes the SBA to increase the amount of a disaster loan to a small business by 20% to cover costs related to continuity of operations and risk mitigation improvements. The bill also authorizes the SBA to make such loans to startups and to waive rules related to affiliation, and it requires the SBA to waive the personal guarantee requirement on such loans made to cooperatives. In addition, an applicant for a disaster loan may request an advance on such loan up to a specified amount, and they shall not be required to repay any amount of an advance if they are subsequently denied a disaster loan. The bill also authorizes the SBA to approve an applicant for a disaster loan that is below a certain amount based solely on the applicant's credit score and to use alternative methods to determine such applicant's ability to repay. Further, the bill establishes a maximum interest rate on a disaster loan based on an applicant's ability to obtain credit elsewhere, and it expands the qualifying events for which a disaster loan may be awarded to include emergencies involving federal primary responsibility.