Small Business Access to Recovery Capital Act

To modify the 7(a) loan guaranty program of the Small Business Administration, and for other purposes. 1. Short title This Act may be cited as the Small Business Access to Recovery Capital Act 2. Changes to the 7 (a) (a) Fee waiver During the 1-year period following the date of enactment of this Act, 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) (1) 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) (2) for which the application is approved on or after the date of enactment of this Act, the Administrator shall, 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) (b) Guarantee amount (1) In general Section 7(a)(2) of the Small Business Act ( 15 U.S.C. 636(a)(2) (A) in the matter preceding subparagraph (A), by striking (E), and (F) and (E) (B) in subparagraph (A), by striking equal to— equal to 95 percent of the balance of the financing outstanding at the time of disbursement of the loan. (C) by striking subparagraphs (D) and (E) and inserting the following: (D) Participation under the express loan program In an agreement to participate in a loan on a deferred basis under paragraph (31), the 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. ; and (D) by redesignating subparagraph (F) as subparagraph (E). (2) Prospective repeal Effective 1 year after the date of enactment of this Act, section 7(a)(2) of the Small Business Act ( 15 U.S.C. 636(a)(2) (A) in the matter preceding subparagraph (A), by striking and (E) (E), and (F) (B) in subparagraph (A), by striking equal to 95 percent of the balance of financing outstanding at the time of disbursement of the loan. (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) by redesignating subparagraph (E) as subparagraph (F); and (D) by striking subparagraph (D) and inserting the following: (D) Participation under export working capital program In an agreement to participate in a loan on a deferred basis under the Export Working Capital Program established pursuant to paragraph (14)(A), such participation by the Administration shall be 90 percent. (E) Participation in international trade loan In an agreement to participate in a loan on a deferred basis under paragraph (16), the participation by the Administration may not exceed 90 percent. . (c) Maximum loan amount (1) In general Section 7(a)(3) of the Small Business Act ( 15 U.S.C. 636(a)(3) (A) in subparagraph (A)— (i) by striking $3,750,000 $9,500,000 (ii) by striking $5,000,000 $10,000,000 (B) in subparagraph (B)— (i) by striking $4,500,000 $9,500,000 (ii) by striking $5,000,000 $10,000,000 (2) Prospective repeal Effective 1 year after the date of enactment of this Act, section 7(a)(3) of the Small Business Act ( 15 U.S.C. 636(a)(3) (A) in subparagraph (A)— (i) by striking $9,500,000 $3,750,000 (ii) by striking $10,000,000 $5,000,000 (B) in subparagraph (B)— (i) by striking $9,500,000 $4,500,000 (ii) by striking $10,000,000 $5,000,000 (d) COVID–19 guidance Not later than 10 days after the date of enactment of this Act, the Administrator shall issue guidance that— (1) temporarily updates the standard operating procedures of the Administration to provide requirements for appropriate lending given the economic conditions and considerations as of the date of enactment of this Act; and (2) shall be utilized with respect to all approval and subsequent actions taken on loans made under such section 7(a) during the 1-year period following the date of enactment of this Act. (e) Extension of subsidy on 7 (a) Section 1112 of the CARES Act ( 15 U.S.C. 9011 (1) in subsection (c)— (A) in paragraph (1)— (i) in the matter preceding subparagraph (A), by inserting or loan described in subparagraph (D) covered loan (ii) in subparagraph (B), by striking and (iii) in subparagraph (C), by striking the period at the end and inserting ; and (iv) by adding at the end the following: (D) with respect to a loan that is guaranteed by the Administration under section 7(a) of the Small Business Act ( 15 U.S.C. 636(a) ; (B) in paragraph (2), by inserting or loan described in paragraph (1)(D), as applicable, covered loan (C) in paragraph (3), by inserting or loan described in paragraph (1)(D), as applicable, covered loan (2) in subsection (d)(2)— (A) by striking covered loan durations the duration of any covered loan or loan described in subsection (c)(1)(D) (B) by inserting or loans described in subsection (c)(1)(D), as applicable, covered loans (3) in subsection (e)— (A) by inserting or loan described in subsection (c)(1)(D) a covered loan (B) by inserting or loan described in subsection (c)(1)(D), as applicable, the covered loan

Summary: Small Business Access to Recovery Capital Act This bill temporarily modifies the 7(a) Loan Guaranty Program of the Small Business Administration (SBA) by waiving borrower and lender fees, increasing the government guarantee to 95%, increasing the maximum loan value to $10 million, and waiving repayment for any new 7(a) loans for one year. The SBA must issue temporary COVID-19 (i.e., coronavirus disease 2019) guidance that reflects these changes.