Women Small Business Growth Act

To amend the Higher Education Act of 1965 to establish a student loan forgiveness program for women who are small business owners. 1. Short title This Act may be cited as the Women Small Business Growth Act 2. Loan forgiveness program for small business owners who are women Part G of title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1087a 493E. Loan forgiveness program for small business owners who are women (a) Program authorized The Secretary shall repay or cancel a qualified loan amount in accordance with subsection (b) for a loan made, insured, or guaranteed under part B or D for any borrower who meets one or more of the following: (1) The borrower is a woman who has been an owner of a small business concern owned and controlled by women for not less than 3 consecutive years. (2) The borrower is a woman who has been an owner of a small business concern that— (A) meets the requirements of paragraph (1); and (B) has created not less than 1 new job. (b) Qualified loan amount (1) Ownership Upon completion of the third or fourth year of the ownership described in subsection (a)(1), the qualified loan amount for a borrower, for each such year, shall be an amount equal to— (A) 15 percent of the original, aggregate principal amount of the loans; and (B) the amount of interest on such loans that accrues during the most recent year of such ownership. (2) Job creation For each year that a borrower meets the requirements of subsection (a)(2), the qualified loan amount shall be an amount equal to— (A) 20 percent of the original, aggregate principal amount of the loans; and (B) the amount of interest on such loans which has accrued (and which has not been forgiven under subsection (a)(1))— (i) in the case of the first new job created that meets the requirements of subsection (a)(2) after the borrower’s ownership period of not less than 3 consecutive years, during such ownership period and until such first job is created; and (ii) in the case of each succeeding job created after such first job, during the period beginning on the date such first job was created and ending on the date of creation of such succeeding job. (c) Exclusion from income The amount of a loan, and interest on a loan, which is canceled under this section shall not be considered income for purposes of the Internal Revenue Code of 1986. (d) Prevention of double benefits No borrower may receive a reduction of loan obligations under both this section and section 428J, 428K, 428L, 455(m), or 460. (e) Definitions In this section: (1) Annual adjustment percentage The term annual adjustment percentage (2) New job The term new job (A) employs an individual who is not a owner of such small business concern; and (B) provides a salary of not less than $30,000 per calendar year, increased by a percentage equal to the annual adjustment percentage for the calendar year for which the salary amount under this paragraph is being determined. (3) Small business concern owned and controlled by women The term small business concern owned and controlled by women 15 U.S.C. 632(n) .

Summary: Women Small Business Growth Act This bill amends the Higher Education Act of 1965 to establish a loan forgiveness program for a women borrower who owns a small business that has been owned and controlled by women for at least three consecutive years.