I 
116TH CONGRESS 
2D SESSION 
H. R. 6268 
To establish a business stabilization direct loan program and the authority 
to establish a secondary market guarantee in the Small Business Admin-
istration, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 12, 2020 
Ms. VELA´ZQUEZ introduced the following bill; which was referred to the 
Committee on Small Business 
A BILL 
To establish a business stabilization direct loan program 
and the authority to establish a secondary market guar-
antee in the Small Business Administration, 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 ‘‘SBA Business Sta-
bilization Direct Loan Program Act of 2020’’. 
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SEC. 2. BUSINESS STABILIZATION DIRECT LOAN PROGRAM. 
(a) IN GENERAL.—The Administrator of the Small 
Business Administration shall carry out a program to 
make loans directly to eligible borrowers. 
(b) ELIGIBLE BORROWER DEFINED.—In this sec-
tion, the term ‘‘eligible borrower’’ means a person who— 
(1) is a small business concern as defined under 
section 3 of the Small Business Act (15 U.S.C. 
632); and 
(2) is located in a State or territory of the 
United States with a confirmed or presumed positive 
case of COVID–19. 
(c) USE OF FUNDS.—In addition to the use of pro-
ceeds currently permitted under section 7(a) of the Small 
Business Act (15 U.S.C. 636(a)), loans made under this 
section may be used for the following purposes: 
(1) To make periodic payments of principal and 
interest, for a period not to exceed 12 months, on 
a loan or a loan guarantee made to an eligible bor-
rower that meets the eligibility standards of such 
section 7(a). 
(2) To provide benefits to employees of the eli-
gible borrower, including group life insurance, dis-
ability insurance, sick leave, annual leave, edu-
cational benefits, paid family leave, or retirement 
benefits (including a pension plan or IRA). 
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(3) To pay wages to employees of the eligible 
borrower, and related State and Federal payroll 
taxes, except that loan proceeds may not be used to 
pay amounts under a garnishment order issued by 
an agency of a State or Federal Government. 
(4) To provide technology, hardware, or soft-
ware for a shift to telework or remote work for em-
ployees of the eligible borrower to enable continuity 
of operations. 
(5) To pay rent or utilities due or owed on any 
place of business of the eligible borrower. 
(6) To refinance an existing debt (including in-
terest) in an amount not to exceed 50 percent of the 
amount of the debt. 
(7) To provide floor plan financing or other re-
volving line of credit. 
(8) To pay past-due Federal, State, or local 
payroll taxes, sales taxes, or other similar taxes that 
are required to be collected by the eligible borrower 
and held in trust on behalf of a Federal, State, or 
local government entity. 
(9) To provide employees and patrons of the eli-
gible borrower with the necessary items specified by 
any public health authority to mitigate the spread of 
COVID–19. 
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(d) LOAN TERMS.— 
(1) AMOUNT.—Loans made under this section 
may not exceed $2,500,000. 
(2) DISBURSEMENT.—Not more than 20 per-
cent of the proceeds of a loan made under this sec-
tion shall be disbursed not later than 5 calendar 
days after a loan is approved under this section. 
(3) TERM.—Loans made under this section 
shall be for a term of 10 years, and a borrower shall 
not be required to repay such loan during the 12- 
month period beginning on the date of disbursement 
of the loan. 
(4) INTEREST; FEES.—The Administrator may 
not charge any interest or fees for a loan made 
under this section. 
(e) COLLATERAL.—The Administrator shall not de-
cline to make a loan under this section to an otherwise 
eligible borrower due solely to inadequate collateral. The 
Administrator shall accept any available collateral, includ-
ing subordinated liens, to secure a loan made under this 
section. 
(f) SUNSET.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the Administrator of the Small Business 
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Administration may not make a loan under this sec-
tion after September 30, 2022. 
(2) EXTENSION.—The Administrator may ex-
tend authority to make loans under this section by 
an additional 6 months by notifying Congress, in 
writing, within 10 calendar days before any exten-
sion. 
(g) EMERGENCY RULEMAKING AUTHORITY.— 
(1) IN
GENERAL.—Within 15 days after the 
date of the enactment of this section, the Adminis-
trator of the Small Business Administration— 
(A) shall issue rules to carry out this sec-
tion; and 
(B) may issue rules to establish a sec-
ondary market for loans made under this sec-
tion. 
(2) NOTICE.—The notice requirements of sec-
tion 553(b) of title 5, United States Code shall not 
apply to any issuance of rules under paragraph (1). 
(h) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to the Administrator of the 
Small Business Administration such sums as may be nec-
essary to pay for the cost of making $25,000,000,000 in 
direct loans under this section. In the previous sentence, 
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the cost of direct loans shall be as defined in section 502 
of the Congressional Budget Act of 1974 (2 U.S.C. 661a). 
Æ 
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