I 
116TH CONGRESS 
1ST SESSION H. R. 4915 
To amend the Small Business Act to provide loan guarantees for the acquisi-
tion of cybersecurity technology and services by eligible small businesses, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 30, 2019 
Mr. SCHNEIDER (for himself, Mr. FITZPATRICK, and Mr. CROW) introduced 
the following bill; which was referred to the Committee on Small Business 
A BILL 
To amend the Small Business Act to provide loan guarantees 
for the acquisition of cybersecurity technology and serv-
ices by eligible small businesses, 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 ‘‘Small Business Cyber-
security Enhancement Act’’. 
SEC. 2. LOAN GUARANTEES FOR CYBERSECURITY TECH-
NOLOGY AND SERVICES. 
(a) IN GENERAL.—The Small Business Act (15 
U.S.C. 631 et seq.) is amended— 
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(1) by redesignating section 49 as section 50; 
and 
(2) by inserting the following new section after 
section 48: 
‘‘SEC. 49. LOAN GUARANTEES FOR CYBERSECURITY TECH-
NOLOGY AND SERVICES. 
‘‘(a) DEFINITIONS.—As used in this section: 
‘‘(1) CYBERSECURITY TECHNOLOGY AND SERV-
ICES.—The term ‘cybersecurity technology and serv-
ices’— 
‘‘(A) means— 
‘‘(i) computer hardware, software, and 
related technology that— 
‘‘(I) supports the prevention of 
damage to, protection of, and restora-
tion of computers, electronic commu-
nications systems, electronic commu-
nications services, wire communica-
tion, and electronic communication, 
including information contained there-
in, to ensure its availability, integrity, 
authentication, 
confidentiality, 
and 
nonrepudiation; 
‘‘(II) is purchased by an eligible 
small business; 
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‘‘(III) provides for encryption of 
data, detection of malware, or protec-
tion of information and information 
systems from unauthorized access, 
use, disclosure, disruption, modifica-
tion, or destruction; 
‘‘(IV) meets any requirements es-
tablished by the Small Business De-
velopment Center Cyber Strategy de-
veloped under section 1841(a) of the 
National Defense Authorization Act 
for Fiscal Year 2017 (Public Law 
114–328; 130 Stat. 2662); and 
‘‘(V) meets any industry best 
practices standards; 
‘‘(ii) an insurance product available 
for purchase by an eligible small business 
that provides coverage for losses caused by 
a cyber attack on such business; 
‘‘(iii) services related to— 
‘‘(I) the installation of computer 
hardware, software, and related tech-
nology described under clause (i); or 
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‘‘(II) training on security prin-
ciples for employees of an eligible 
small business; or 
‘‘(iv) has the meaning given such term 
by the Administrator; and 
‘‘(B) does not include information tech-
nology whose sole use is financial management, 
maintenance of inventory of basic supplies, or 
appointment scheduling. 
‘‘(2) ELIGIBLE
SMALL
BUSINESS.—The term 
‘eligible small business’ means a small business con-
cern that— 
‘‘(A) has 100 or fewer employees; 
‘‘(B) has been in business for at least 1 
year; and 
‘‘(C) has obtained training from a small 
business development center. 
‘‘(3) PRIME
RATE.—The term ‘prime rate’ 
means the discount window primary credit interest 
rate most recently published in the Federal Reserve 
Statistical Release on selected interest rates (daily or 
weekly), commonly referred to as the H.15 release, 
or any successor publication. 
‘‘(b) LOAN GUARANTEES
FOR ELIGIBLE SMALL 
BUSINESSES.— 
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‘‘(1) GUARANTEE
PERCENTAGE.—Subject to 
paragraph (2), the Administrator may guarantee up 
to 90 percent of the amount of a loan made to an 
eligible small business for— 
‘‘(A) the acquisition of cybersecurity tech-
nology and services for use in the business oper-
ations of the eligible small business; and 
‘‘(B) the costs associated with the installa-
tion or use of such cybersecurity technology and 
services. 
‘‘(2) LIMITATIONS ON GUARANTEE AMOUNTS.— 
The maximum amount of the principal of a loan 
guaranteed under this section may not exceed 
$50,000. The aggregate total amount of the prin-
cipal of loans guaranteed under this section in a 
year may not exceed $500,000,000. 
‘‘(c) FEES.—With respect to each loan guaranteed 
under this section, the Administration shall assess, collect, 
and retain such fees as are necessary to reduce to zero 
the cost to the Administration of making guarantees under 
this section. As used in this subsection, the term ‘cost’ 
has the meaning given that term in section 502 of the 
Federal Credit Reform Act of 1990 (2 U.S.C. 661a). 
‘‘(d) INTEREST RATES.— 
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‘‘(1) FIXED RATE LOANS.—With respect to a 
fixed rate loan guaranteed under this section, the in-
terest rate for such a loan may not exceed— 
‘‘(A) for a loan in an amount greater than 
$25,000, the prime rate; and 
‘‘(B) for a loan in an amount less than or 
equal to $25,000, the prime rate plus 3.25 per-
cent. 
‘‘(2) VARIABLE RATE LOANS.— 
‘‘(A) IN
GENERAL.—With respect to a 
variable rate loan guaranteed under this sec-
tion, the interest rate for such a loan shall 
equal— 
‘‘(i) the prime rate plus the spread de-
scribed under subparagraph (B); or 
‘‘(ii) the optional peg rate, as cal-
culated quarterly by the Administrator and 
published in the Federal Register, plus the 
spread described under subparagraph (B). 
‘‘(B) NEGOTIATION OF SPREAD AND RATE 
OF
CHANGE.—The lender and the borrower 
shall negotiate the amount of the spread which 
will be added to the interest rate described 
under subparagraph (A) and select the fre-
quency at which the spread will change, which 
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shall be no more often than monthly and shall 
be consistent over the term of the loan. 
‘‘(e) DEFERRAL PERIOD.—The Administrator may 
defer payment of the principal and interest on a loan guar-
anteed under this section for a period not to exceed 3 
years. 
‘‘(f) TERMS AND CONDITIONS FOR LOAN GUARAN-
TEES.— 
‘‘(1) IN GENERAL.—A loan guaranteed under 
this section shall be subject to such terms and condi-
tions as the Administrator may prescribe, includ-
ing— 
‘‘(A) explicit standards for use in periodi-
cally assessing the credit risk of guaranteed 
loans; 
‘‘(B) a requirement that the final maturity 
of such a loan may not exceed 7 years; and 
‘‘(C) a requirement that such a loan may 
not be subordinated to another debt contracted 
by the borrower or to any other claims against 
the borrower in the case of default. 
‘‘(2) RESTRICTIONS.—The Administrator may 
not guarantee a loan under this section— 
‘‘(A) unless the Administrator determines 
that the lender is responsible, that there is a 
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