I 
117TH CONGRESS 
1ST SESSION H. R. 4293 
To amend the Higher Education Act of 1965 to provide loan deferment 
and loan cancellation for certain founders and employees of small busi-
ness start-ups, to amend the Small Business Act to establish a young 
entrepreneurs business center, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 30, 2021 
Ms. VELA´ZQUEZ (for herself, Mr. PHILLIPS, Ms. CHU, Mr. EVANS, and Mr. 
KIM of New Jersey) introduced the following bill; which was referred to 
the Committee on Education and Labor, and in addition to the Commit-
tees on Ways and Means, and Small Business, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such 
provisions as fall within the jurisdiction of the committee concerned 
A BILL 
To amend the Higher Education Act of 1965 to provide 
loan deferment and loan cancellation for certain founders 
and employees of small business start-ups, to amend 
the Small Business Act to establish a young entre-
preneurs business center, 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 ‘‘Supporting America’s 
Young Entrepreneurs Act of 2021’’. 
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SEC. 2. SMALL BUSINESS START-UP EMPLOYEE LOAN 
DEFERMENT AND CANCELLATION. 
(a) DEFERMENT.—Section 455(f) of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1087e(f)) is amended— 
(1) in paragraph (1), by striking ‘‘A borrower 
of a loan’’ and inserting ‘‘Except as provided in 
paragraph (5), a borrower of a loan’’; and 
(2) by adding at the end the following: 
‘‘(5) NO
INTEREST
DEFERMENT
ELIGIBILITY 
FOR FOUNDERS OF SMALL BUSINESS START-UPS.— 
A borrower of a loan made under this part shall be 
eligible for a deferment, during which periodic in-
stallments of principal and interest need not be paid, 
during any period not in excess of 3 years during 
which the borrower is employed as a founder of a 
small business start-up (as defined in subsection 
(r)(3)).’’. 
(b) LOAN CANCELLATION.—Section 455 of the High-
er Education Act of 1965 (20 U.S.C. 1087e) is amended 
by adding at the end the following: 
‘‘(r) LOAN CANCELLATION
FOR CERTAIN SMALL 
BUSINESS START-UP FOUNDERS AND EMPLOYEES.— 
‘‘(1) FOUNDERS OF A SMALL BUSINESS START- 
UP IN A DISTRESSED AREA.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
cancel $20,000 of the balance of interest and 
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principal due, in accordance with subparagraph 
(B), on any eligible Federal Direct Loan not in 
default for a borrower who— 
‘‘(i) has made 24 monthly payments 
on the eligible Federal Direct Loan after 
the date of the enactment of this sub-
section pursuant to any one or a combina-
tion of payments under a repayment plan 
under subsection (d)(1) or (g); 
‘‘(ii) has been employed as a founder 
of a small business start-up in a distressed 
area during the period in which the bor-
rower makes each of the 24 payments; 
‘‘(iii) is employed as a founder of a 
small business start-up in a distressed area 
at the time of such cancellation; and 
‘‘(iv) is approved for loan cancellation 
by the young entrepreneurs business center 
under section 49 of the Small Business Act 
(16 U.S.C. 631 et seq.). 
‘‘(B) LOAN CANCELLATION AMOUNT.— 
‘‘(i) IN GENERAL.—After the conclu-
sion of the employment period described in 
subparagraph (A), the Secretary shall can-
cel the obligation to repay $20,000 of the 
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balance of interest and principal due as of 
the time of such cancellation, on the eligi-
ble Federal Direct Loans made to the bor-
rower under this part. 
‘‘(ii) LIMITATION.—A borrower may 
not receive an aggregate amount of more 
than $20,000 under this subparagraph. 
‘‘(C) INELIGIBILITY
FOR
DOUBLE
BENE-
FITS.—No borrower may, for the same service, 
receive a reduction of loan obligations under 
both this paragraph and— 
‘‘(i) paragraph (2); 
‘‘(ii) subsection (m); or 
‘‘(iii) section 428J, 428K, 428L, or 
460. 
‘‘(2) EMPLOYEES
OF
A
SMALL
BUSINESS 
START-UP.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
cancel $3,000 of the balance of interest and 
principal due, in accordance with subparagraph 
(B), on any eligible Federal Direct Loan not in 
default for a borrower who— 
‘‘(i) has made 12 monthly payments 
on the eligible Federal Direct Loan after 
the date of the enactment of this sub-
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‘‘(E) SMALL BUSINESS START-UP JOB.— 
The term ‘small business start-up job’ means a 
full-time job as an employee of a small business 
start-up.’’. 
SEC. 3. YOUNG ENTREPRENEURS BUSINESS CENTER. 
The Small Business Act (15 U.S.C. 631 et seq.) is 
amended— 
(1) by redesignating section 49 as section 50; 
and 
(2) by inserting after section 48 the following 
new section: 
‘‘SEC. 49. YOUNG ENTREPRENEURS BUSINESS CENTER. 
‘‘(a) ESTABLISHMENT.—There is established within 
the Administration a young entrepreneurs business center 
that shall, for purposes of determining eligibility for loan 
cancellation for a founder of small business start-up under 
section 455(r)(1) of the Higher Education Act of 1965— 
‘‘(1) certify small business start-ups under sub-
section (b); 
‘‘(2) identify distressed areas under subsection 
(c); and 
‘‘(3) approve loan cancellation for any founder 
of a small business start-up in a distressed area 
under subsection (d). 
‘‘(b) CERTIFICATION.— 
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‘‘(1) APPLICATION.—To be certified by the 
young entrepreneurs business center, the founder of 
a small business start-up shall submit an application 
to the Administrator that includes— 
‘‘(A) a 5-year business plan for such small 
business start-up; and 
‘‘(B) the number of employees the small 
business start-up intends to employ on a yearly 
basis. 
‘‘(2) REQUIREMENTS.—To be certified under 
this section, a small business start-up shall have, on 
the date an application is submitted under para-
graph (1), a founder who is an employee of such 
small business start-up and who is a recent graduate 
of an institution of higher education. 
‘‘(c) DISTRESSED AREA.— 
‘‘(1) IN GENERAL.—Not less than once every 3 
years after the date of the enactment of this section, 
the young entrepreneurs business center shall iden-
tify and make publically available on the website of 
the Administration a list of distressed areas. 
‘‘(2) REQUIREMENTS.—A distressed area iden-
tified under paragraph (1) shall be a county or 
equivalent division of local government of a State in 
which the small business concern is located— 
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‘‘(A) that has, for the most recent 24- 
month period for which statistics are avail-
able— 
‘‘(i) a per capita income of 80 percent 
or less of the national average; or 
‘‘(ii) an unemployment rate that is 1 
percent greater than the national average; 
and 
‘‘(B) for which the young entrepreneurs 
business center determines would economically 
benefit from having small business start-ups es-
tablished in such area. 
‘‘(d) LOAN
CANCELLATION
FOR
FOUNDERS
OF 
SMALL BUSINESS START-UPS IN A DISTRESSED AREA.— 
For purposes of loan cancellation under section 455(r)(1) 
of the Higher Education Act of 1965, the young entre-
preneurs business center shall approve a founder of a 
small business start-up in a distressed area if such found-
er— 
‘‘(1) established a small business start-up 
that— 
‘‘(A) was located in a distressed area (as 
identified under subsection (c)) for not more 
than 3 years before the date on which such 
small business start-up was established; 
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‘‘(B) was certified under subsection (b); 
and 
‘‘(C) on the date of approval under this 
subsection, has been operating continuously for 
not less than 5 years; and 
‘‘(2) was a founder of a small business start-up 
in a distressed area during the period in which such 
founder made the 24 payments described in section 
455(r)(1)(A) of such Act. 
‘‘(e) DEFINITIONS.—In this section: 
‘‘(1) INSTITUTION OF HIGHER EDUCATION.— 
The term ‘institution of higher education’ has the 
meaning given such term in section 102 of the High-
er Education Act (20 U.S.C. 1002). 
‘‘(2) SMALL
BUSINESS
START-UP.—The term 
‘small business start-up’ means a small business 
concern that, as of the date of submission of an ap-
plication under subsection (b)— 
‘‘(A) does not exist; or 
‘‘(B) has been in existence for not more 
than 3 years.’’. 
SEC. 4. TREATMENT OF LOAN CANCELLATION. 
(a) IN GENERAL.—Section 108(f) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following new paragraph: 
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‘‘(6) CANCELLATION
OF
CERTAIN
FEDERAL 
STUDENT
LOANS.—In the case of an individual, 
gross income shall not include the discharge (in 
whole or in part) of any student loan pursuant to 
the cancellation (in whole or in part) of such loan 
by the Secretary of Education under subsection (r) 
of section 455 of the Higher Education Act of 1965 
(20 U.S.C. 1087e).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to discharges of indebtedness oc-
curring after the date of the enactment of this Act. 
Æ 
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