I 
116TH CONGRESS 
1ST SESSION H. R. 4805 
To amend the Internal Revenue Code of 1986 to provide an exclusion from 
gross income for interest on certain small business loans. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 23, 2019 
Mr. KIM (for himself, Mr. BURCHETT, and Ms. KENDRA S. HORN of Okla-
homa) introduced the following bill; which was referred to the Committee 
on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to provide 
an exclusion from gross income for interest on certain 
small business loans. 
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 ‘‘Access Business Credit 
Act of 2019’’ or as the ‘‘ABC Act of 2019’’. 
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SEC. 2. EXCLUSION OF INTEREST ON CERTAIN SMALL BUSI-
NESS LOANS. 
(a) IN GENERAL.—Part III of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 is amended 
by inserting after section 139G the following new section: 
‘‘SEC. 139H. INTEREST ON CERTAIN SMALL BUSINESS 
LOANS. 
‘‘(a) IN GENERAL.—In the case of a bank described 
in subsection (c), gross income shall not include qualified 
interest received from a small business during the taxable 
year. 
‘‘(b) QUALIFIED INTEREST.—The term ‘qualified in-
terest’ means, with respect to a small business, interest 
on indebtedness of not more than $5,000,000— 
‘‘(1) secured by land situated in the United 
States that is used or held by the small business in 
connection with the active conduct of a farming 
business, or 
‘‘(2) incurred in the ordinary course of the 
trade or business of the small business. 
‘‘(c) BANK DESCRIBED.— 
‘‘(1) IN GENERAL.—A bank is described in this 
subsection if the bank has less than $50 billion in 
assets at the close of the preceding taxable year. 
‘‘(2) BANK
DEFINED.—For purposes of this 
subsection— 
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‘‘(A) IN
GENERAL.—The term ‘bank’ 
means— 
‘‘(i) any financial institution described 
in section 581 or 591, and 
‘‘(ii) a corporation which, under the 
laws of the State of its incorporation, is 
subject to supervision and examination by 
the Commissioner of Banking or other offi-
cer of such State in charge of the adminis-
tration of the banking laws of such State. 
‘‘(B) 
HOLDING
COMPANY.—The 
term 
‘bank’ includes— 
‘‘(i) any bank holding company (with-
in the meaning of section 2(a) of the Bank 
Holding Company Act of 1956), and 
‘‘(ii) any subsidiary of a financial in-
stitution described in section 581 or 591 or 
of any bank holding company if such sub-
sidiary is predominantly engaged (directly 
or indirectly) in the active conduct of a 
banking, financing, or similar business. 
‘‘(d) SMALL BUSINESS.—The term ‘small business’ 
means a small business concern as defined under section 
3 of the Small Business Act (15 U.S.C. 632). 
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‘‘(e) FARMING BUSINESS.—The term ‘farming busi-
ness’ has the meaning given such term by section 
263A(e)(4). 
‘‘(f) TERMINATION.—This section shall not apply to 
interest received after December 31, 2025.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for part III of subchapter B of chapter 1 of such Code 
is amended by inserting after the item relating to section 
139G the following new item: 
‘‘Sec. 139H. Interest on certain small business loans.’’. 
(c) REPORT TO CONGRESS.—Not later than Decem-
ber 31, 2024, the Commissioner of Internal Revenue, after 
consultation with the Federal reserve banks, shall submit 
to Congress a written report providing the recommenda-
tion of the Commissioner regarding whether the exclusion 
provided under section 139H of the Internal Revenue 
Code of 1986 (as added by this section) should be ex-
tended or should be allowed to terminate and the reasons 
for such recommendation. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to interest received after December 
31, 2020, in taxable years ending after such date. 
Æ 
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