SEC. 2. LOAN FORGIVENESS PROGRAM FOR SMALL BUSI-
NESS OWNERS WHO ARE WOMEN. 
Part G of title IV of the Higher Education Act of 
1965 (20 U.S.C. 1087a) is amended by adding at the end 
the following: 
‘‘SEC. 493E. LOAN FORGIVENESS PROGRAM FOR SMALL 
BUSINESS OWNERS WHO ARE WOMEN. 
‘‘(a) PROGRAM AUTHORIZED.—The Secretary shall 
repay or cancel a qualified loan amount in accordance with 
subsection (b) for a loan made, insured, or guaranteed 
under part B or D for any borrower who meets one or 
more of the following: 
‘‘(1) The borrower is a woman who has been an 
owner of a small business concern owned and con-
trolled by women for not less than 3 consecutive 
years. 
‘‘(2) The borrower is a woman who has been an 
owner of a small business concern that— 
‘‘(A) meets the requirements of paragraph 
(1); and 
‘‘(B) has created not less than 1 new job. 
‘‘(b) QUALIFIED LOAN AMOUNT.— 
‘‘(1) OWNERSHIP.—Upon completion of the 
third or fourth year of the ownership described in 
subsection (a)(1), the qualified loan amount for a 
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borrower, for each such year, shall be an amount 
equal to— 
‘‘(A) 15 percent of the original, aggregate 
principal amount of the loans; and 
‘‘(B) the amount of interest on such loans 
that accrues during the most recent year of 
such ownership. 
‘‘(2) JOB
CREATION.—For each year that a 
borrower meets the requirements of subsection 
(a)(2), the qualified loan amount shall be an amount 
equal to— 
‘‘(A) 20 percent of the original, aggregate 
principal amount of the loans; and 
‘‘(B) the amount of interest on such loans 
which has accrued (and which has not been for-
given under subsection (a)(1))— 
‘‘(i) in the case of the first new job 
created that meets the requirements of 
subsection (a)(2) after the borrower’s own-
ership period of not less than 3 consecutive 
years, during such ownership period and 
until such first job is created; and 
‘‘(ii) in the case of each succeeding 
job created after such first job, during the 
period beginning on the date such first job 
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was created and ending on the date of cre-
ation of such succeeding job. 
‘‘(c) EXCLUSION FROM INCOME.—The amount of a 
loan, and interest on a loan, which is canceled under this 
section shall not be considered income for purposes of the 
Internal Revenue Code of 1986. 
‘‘(d) PREVENTION OF DOUBLE BENEFITS.—No bor-
rower may receive a reduction of loan obligations under 
both this section and section 428J, 428K, 428L, 455(m), 
or 460. 
‘‘(e) DEFINITIONS.—In this section: 
‘‘(1) ANNUAL
ADJUSTMENT
PERCENTAGE.— 
The term ‘annual adjustment percentage’ is equal to 
the estimated percentage change in the Consumer 
Price Index (as determined by the Secretary, using 
the definition in section 478(f)) for the most recent 
calendar year. 
‘‘(2) NEW JOB.—The term ‘new job’ means an 
employment position at a small business concern 
owned and controlled by women that— 
‘‘(A) employs an individual who is not a 
owner of such small business concern; and 
‘‘(B) provides a salary of not less than 
$30,000 per calendar year, increased by a per-
centage equal to the annual adjustment per-
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centage for the calendar year for which the sal-
ary amount under this paragraph is being de-
termined. 
‘‘(3) SMALL BUSINESS CONCERN OWNED AND 
CONTROLLED BY WOMEN.—The term ‘small business 
concern owned and controlled by women’ has the 
meaning given under section 3(n) of the Small Busi-
ness Act (15 U.S.C. 632(n)).’’. 
Æ 
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