I 
116TH CONGRESS 
2D SESSION 
H. R. 6361 
To provide loan and obligation payment relief for small businesses and 
nonprofits affected by the COVID–19 emergency, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 23, 2020 
Mr. PERLMUTTER introduced the following bill; which was referred to the 
Committee on Financial Services 
A BILL 
To provide loan and obligation payment relief for small busi-
nesses and nonprofits affected by the COVID–19 emer-
gency, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Relief for Small Busi-
nesses and Nonprofits Act’’. 
SEC. 2. LOAN AND OBLIGATION PAYMENT RELIEF FOR AF-
FECTED 
SMALL 
BUSINESSES 
AND 
NON-
PROFITS. 
(a) IN GENERAL.— 
VerDate Sep 11 2014 
22:40 Apr 17, 2020
Jkt 099200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H6361.IH
H6361
pbinns on DSKJLVW7X2PROD with BILLS
(1) IN
GENERAL.—During the COVID–19 
emergency, a debt collector may not, with respect to 
a debt of a small business or nonprofit (other than 
debt related to a federally related mortgage loan)— 
(A) capitalize unpaid interest; 
(B) apply a higher interest rate triggered 
by the nonpayment of a debt to the debt bal-
ance; 
(C) charge a fee triggered by the non-
payment of a debt; 
(D) sue or threaten to sue for nonpayment 
of a debt; 
(E) continue litigation to collect a debt 
that was initiated before the date of enactment 
of this section; 
(F) submit or cause to be submitted a con-
fession of judgment to any court; 
(G) enforce a security interest through re-
possession, limitation of use, or foreclosure; 
(H) take or threaten to take any action to 
enforce collection, or any adverse action for 
nonpayment of a debt, or for nonappearance at 
any hearing relating to a debt; 
(I) commence or continue any action to 
cause or to seek to cause the collection of a 
VerDate Sep 11 2014 
22:40 Apr 17, 2020
Jkt 099200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H6361.IH
H6361
pbinns on DSKJLVW7X2PROD with BILLS
debt, including pursuant to a court order issued 
before the end of the 120-day period following 
the end of the COVID–19 emergency, from 
wages, Federal benefits, or other amounts due 
to a small business or nonprofit by way of gar-
nishment, deduction, offset, or other seizure; 
(J) cause or seek to cause the collection of 
a debt, including pursuant to a court order 
issued before the end of the 120-day period fol-
lowing the end of the COVID–19 emergency, by 
levying on funds from a bank account or seizing 
any other assets of a small business or non-
profit; 
(K) commence or continue an action to 
evict a small business or nonprofit from real or 
personal property; or 
(L) disconnect or terminate service from 
utility service, including electricity, natural gas, 
telecommunications or broadband, water, or 
sewer. 
(2) RULE OF CONSTRUCTION.—Nothing in this 
subsection may be construed to prohibit a small 
business or nonprofit from voluntarily paying, in 
whole or in part, a debt. 
VerDate Sep 11 2014 
22:40 Apr 17, 2020
Jkt 099200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H6361.IH
H6361
pbinns on DSKJLVW7X2PROD with BILLS
(3) REPAYMENT PERIOD.—After the expiration 
of the COVID–19 emergency, with respect to a debt 
described under paragraph (1), a debt collector— 
(A) may not add to the debt balance any 
interest or fee prohibited by paragraph (1); 
(B) shall, for credit with a defined term or 
payment period, extend the time period to repay 
the debt balance by 1 payment period for each 
payment that a small business or nonprofit 
missed during the COVID–19 emergency, with 
the payments due in the same amounts and at 
the same intervals as the pre-existing payment 
schedule; 
(C) shall, for an open end credit plan (as 
defined under section 103 of the Truth in 
Lending Act) or other credit without a defined 
term, allow the small business or nonprofit to 
repay the debt balance in a manner that does 
not exceed the amounts permitted by formulas 
under section 170(c) of the Truth in Lending 
Act and regulations promulgated thereunder; 
and 
(D) shall, when the small business or non-
profit notifies the debt collector, offer reason-
able and affordable repayment plans, loan 
VerDate Sep 11 2014 
22:40 Apr 17, 2020
Jkt 099200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H6361.IH
H6361
pbinns on DSKJLVW7X2PROD with BILLS
modifications, refinancing, options with a rea-
sonable time in which to repay the debt. 
(4) COMMUNICATIONS
IN
CONNECTION
WITH 
THE COLLECTION OF A DEBT.— 
(A) IN GENERAL.—During the COVID–19 
emergency, without prior consent of a small 
business or nonprofit given directly to a debt 
collector during the COVID–19 emergency, or 
the express permission of a court of competent 
jurisdiction, a debt collector may only commu-
nicate in writing in connection with the collec-
tion of any debt (other than debt related to a 
federally related mortgage loan). 
(B) REQUIRED DISCLOSURES.— 
(i) IN GENERAL.—All written commu-
nications described under subparagraph 
(A) shall inform the small business or non-
profit that the communication is for infor-
mational purposes and is not an attempt to 
collect a debt. 
(ii) REQUIREMENTS.—The disclosure 
required under clause (i) shall be made— 
(I) in type or lettering not small-
er than 14-point bold type; 
VerDate Sep 11 2014 
22:40 Apr 17, 2020
Jkt 099200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H6361.IH
H6361
pbinns on DSKJLVW7X2PROD with BILLS
(II) separate from any other dis-
closure; 
(III) in a manner designed to en-
sure that the recipient sees the disclo-
sure clearly; 
(IV) in English and Spanish and 
in any additional languages in which 
the debt collector communicates, in-
cluding the language in which the 
loan was negotiated, to the extent 
known by the debt collector; and 
(V) may be provided by first- 
class mail or electronically, if the bor-
rower has otherwise consented to elec-
tronic communication with the debt 
collector and has not revoked such 
consent. 
(iii) ORAL NOTIFICATION.—Any oral 
notification shall be provided in the lan-
guage the debt collector otherwise uses to 
communicate with the borrower. 
(iv) 
WRITTEN
TRANSLATIONS.—In 
providing written notifications in languages 
other than English in this section, a debt 
collector may rely on written translations 
VerDate Sep 11 2014 
22:40 Apr 17, 2020
Jkt 099200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H6361.IH
H6361
pbinns on DSKJLVW7X2PROD with BILLS
developed by the Bureau of Consumer Fi-
nancial Protection. 
(5) VIOLATIONS.— 
(A) IN
GENERAL.—Any person who vio-
lates this section shall be subject to civil liabil-
ity in accordance with section 813 of the Fair 
Debt Collection Practices Act, as if the person 
is a debt collector for purposes of that section. 
(B) PREDISPUTE
ARBITRATION
AGREE-
MENTS.—Notwithstanding any other provision 
of law, no predispute arbitration agreement or 
predispute joint-action waiver shall be valid or 
enforceable with respect to a dispute brought 
under this section, including a dispute as to the 
applicability of this section, which shall be de-
termined under Federal law. 
(6) TOLLING.—Except as provided in para-
graph (7)(D), any applicable time limitations, in-
cluding statutes of limitations, related to a debt 
under Federal or State law shall be tolled during the 
COVID–19 emergency. 
(7) CLAIMS
OF
AFFECTED
CREDITORS
AND 
DEBT COLLECTORS.— 
(A) VALUATION OF PROPERTY.—With re-
spect to any action asserting a taking under the 
VerDate Sep 11 2014 
22:40 Apr 17, 2020
Jkt 099200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H6361.IH
H6361
pbinns on DSKJLVW7X2PROD with BILLS
Fifth Amendment of the Constitution of the 
United States as a result of this section or 
seeking a declaratory judgment regarding the 
constitutionality of this section, the value of the 
property alleged to have been taken without 
just compensation shall be evaluated— 
(i) with consideration of the likelihood 
of full and timely payment of the obliga-
tion without the actions taken pursuant to 
this section; and 
(ii) without consideration of any as-
sistance provided directly or indirectly to 
the small business or nonprofit from other 
Federal, State, and local government pro-
grams instituted or legislation enacted in 
response to the COVID–19 emergency. 
(B) SCOPE OF JUST COMPENSATION.—In 
an action described in subparagraph (A), any 
assistance or benefit provided directly or indi-
rectly to the person from other Federal, State, 
and local government programs instituted in or 
legislation enacted response to the COVID–19 
emergency, shall be deemed to be compensation 
for the property taken, even if such assistance 
VerDate Sep 11 2014 
22:40 Apr 17, 2020
Jkt 099200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H6361.IH
H6361
pbinns on DSKJLVW7X2PROD with BILLS
or benefit is not specifically provided as com-
pensation for property taken by this section. 
(C) APPEALS.—Any appeal from an action 
under this section shall be treated under section 
158 of title 28, United States Code, as if it 
were an appeal in a case under title 11, United 
States Code. 
(D) REPOSE.—Any action asserting a tak-
ing under the Fifth Amendment to the Con-
stitution of the United States as a result of this 
section shall be brought within not later than 
180 days after the end of the COVID–19 emer-
gency. 
(8) DEFINITIONS.—In this section: 
(A) COVID–19 EMERGENCY.—The term 
‘‘COVID–19 emergency’’ means the period that 
begins upon the date of the enactment of this 
Act and ends on the date of the termination by 
the Federal Emergency Management Agency of 
the emergency declared on March 13, 2020, by 
the President under the Robert T. Stafford Dis-
aster Relief and Emergency Assistance Act (42 
U.S.C. 
4121 
et 
seq.) 
relating 
to 
the 
Coronavirus Disease 2019 (COVID–19) pan-
demic. 
VerDate Sep 11 2014 
22:40 Apr 17, 2020
Jkt 099200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H6361.IH
H6361
pbinns on DSKJLVW7X2PROD with BILLS
(B) 
CREDITOR.—The 
term 
‘‘creditor’’ 
means— 
(i) any person who offers or extends 
credit creating a debt or to whom a debt 
is owed or other obligation for payment; 
(ii) any lessor of real or personal 
property; or 
(iii) any provider of utility services. 
(C) DEBT.—The term ‘‘debt’’— 
(i) means any obligation or alleged ob-
ligation— 
(I) for which the original agree-
ment, or if there is no agreement, the 
original obligation to pay was created 
before or during the COVID–19 emer-
gency, whether or not such obligation 
has been reduced to judgment; and 
(II) that arises out of a trans-
action with a small business or non-
profit; and 
(ii) does not include a federally re-
lated mortgage loan. 
(D) DEBT COLLECTOR.—The term ‘‘debt 
collector’’ means a creditor, and any person or 
entity that engages in the collection of debt, in-
VerDate Sep 11 2014 
22:40 Apr 17, 2020
Jkt 099200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H6361.IH
H6361
pbinns on DSKJLVW7X2PROD with BILLS
cluding the Federal Government and a State 
government, irrespective of whether the debt is 
allegedly owed to or assigned to that person or 
to the entity. 
(E) 
FEDERALLY
RELATED
MORTGAGE 
LOAN.—The term ‘‘federally related mortgage 
loan’’ has the meaning given that term under 
section 3 of the Real Estate Settlement Proce-
dures Act of 1974 (12 U.S.C. 2602). 
(F) NONPROFIT.—The term ‘‘nonprofit’’ 
means an organization described in section 
501(c)(3) of the Internal Revenue Code of 1986 
and exempt from taxation under section 501(a) 
of such Code. 
(G) SMALL BUSINESS.—The term ‘‘small 
business’’ has the meaning given the term 
‘‘small business concern’’ under section 3 of the 
Small Business Act. 
(b) CREDIT FACILITY FOR OTHER PURPOSES.—The 
Board of Governors of the Federal Reserve System shall 
establish a facility that the Board of Governors shall use 
to make payments to holders of loans or obligations to 
compensate such holders for documented financial 
losses— 
VerDate Sep 11 2014 
22:40 Apr 17, 2020
Jkt 099200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H6361.IH
H6361
pbinns on DSKJLVW7X2PROD with BILLS
(1) with respect to a loan or obligation made to 
an individual, small business, or nonprofit; and 
(2) where such losses were caused by a suspen-
sion of payments required under Federal law in con-
nection with the COVID–19 emergency. 
Æ 
VerDate Sep 11 2014 
22:40 Apr 17, 2020
Jkt 099200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6301
E:\BILLS\H6361.IH
H6361
pbinns on DSKJLVW7X2PROD with BILLS