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 in a small 
business start-up job during the period in 
which the borrower makes each of the 12 
payments; and 
‘‘(iii) is employed in a small business 
start-up job at the time of such cancella-
tion. 
‘‘(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 $3,000 of the 
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 $15,000 under this subparagraph. 
‘‘(C) INELIGIBILITY
FOR
DOUBLE
BENE-
FITS.—No borrower may, for the same service, 
VerDate Sep 11 2014 
21:42 Jan 16, 2019
Jkt 089200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H231.IH
H231
pamtmann on DSKBFK8HB2PROD with BILLS
receive a reduction of loan obligations under 
both this paragraph and— 
‘‘(i) paragraph (1); 
‘‘(ii) subsection (m); or 
‘‘(iii) section 428J, 428K, 428L, or 
460. 
‘‘(3) DEFINITIONS.—In this subsection: 
‘‘(A) DISTRESSED AREA.—The term ‘dis-
tressed area’ means an area identified under 
section 49 of the Small Business Act. 
‘‘(B) ELIGIBLE FEDERAL DIRECT LOAN.— 
The term ‘eligible Federal Direct Loan’ means 
a Federal Direct Stafford Loan, Federal Direct 
PLUS Loan, or Federal Direct Unsubsidized 
Stafford Loan, or a Federal Direct Consolida-
tion Loan. 
‘‘(C) FOUNDER.—The term ‘founder’ shall 
have the meaning given such term by the Ad-
ministrator of the Small Business Administra-
tion under this paragraph. 
‘‘(D) SMALL
BUSINESS
START-UP.—The 
term ‘small business start-up’ means a business 
that is certified by the young entrepreneurs 
business center under section 49 of the Small 
Business Act. 
VerDate Sep 11 2014 
21:42 Jan 16, 2019
Jkt 089200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H231.IH
H231
pamtmann on DSKBFK8HB2PROD with BILLS
‘‘(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 loan cancellation for start-up 
employees established under subsection (r) of section 455 
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 founders of 
small business start-ups in distressed areas under 
subsection (d). 
‘‘(b) CERTIFICATION.— 
VerDate Sep 11 2014 
21:42 Jan 16, 2019
Jkt 089200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H231.IH
H231
pamtmann on DSKBFK8HB2PROD with BILLS
‘‘(1) APPLICATION.—To be certified by the 
young entrepreneurs business center, a small busi-
ness start-up shall submit an application to the Ad-
ministrator 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.—The 
young 
entre-
preneurs business center may not certify a small 
business start-up unless such small business start- 
up, on the date the application is submitted under 
paragraph (1)— 
‘‘(A) has a founder who is a recent grad-
uate of a 4-year institution of higher education; 
‘‘(B) is a start-up for which at least 50 
percent of the employees of the start-up are re-
cent graduates of such an institution. 
‘‘(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. 
VerDate Sep 11 2014 
21:42 Jan 16, 2019
Jkt 089200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H231.IH
H231
pamtmann on DSKBFK8HB2PROD with BILLS
‘‘(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— 
‘‘(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 A 
SMALL BUSINESS START-UP IN A DISTRESSED AREA.— 
For purposes of loan cancellation under subsection (r)(1) 
of section 455 of the Higher Education Act of 1965, the 
young entrepreneurs business center shall approve a 
founder of a small business start-up in a distressed area 
if such founder— 
‘‘(1) established a small business start-up 
that— 
VerDate Sep 11 2014 
21:42 Jan 16, 2019
Jkt 089200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H231.IH
H231
pamtmann on DSKBFK8HB2PROD with BILLS
‘‘(A) on the date such small business start- 
up was established, was located in a distressed 
area identified by the young entrepreneurs busi-
ness center under subsection (c) not more than 
3 years before such date of establishment; 
‘‘(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 employed as a founder of a small busi-
ness start-up in a distressed area during the period 
in which such founder made the 24 payments de-
scribed in subsection (r)(1)(A) of such section 455. 
‘‘(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— 
‘‘(A) is not yet in existence; or 
‘‘(B) has been in existence for not more 
than 3 years.’’. 
VerDate Sep 11 2014 
21:42 Jan 16, 2019
Jkt 089200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H231.IH
H231
pamtmann on DSKBFK8HB2PROD with BILLS