I 
116TH CONGRESS 
2D SESSION 
H. R. 6341 
To establish a business stabilization guaranteed loan program and authority 
to establish a secondary market in the Small Business Administration, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 23, 2020 
Ms. CRAIG introduced the following bill; which was referred to the Committee 
on Small Business 
A BILL 
To establish a business stabilization guaranteed loan program 
and authority to establish a secondary market 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 ‘‘Small Business Relief 
Guaranteed Loan Program Act of 2020’’. 
SEC. 2. BUSINESS STABILIZATION GUARANTEED LOAN PRO-
GRAM. 
(a) IN GENERAL.—The Administrator of the Small 
Business Administration shall carry out a program to 
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guarantee loans to eligible borrowers, made by banks or 
other lenders. 
(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 guaranteed 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 guaranteed under this 
section may not exceed $2,500,000. 
(2) DISBURSEMENT.—With respect to a loan 
guaranteed under this section, loan amounts shall be 
disbursed as follows: 
(A) Not less than 10 percent, but not more 
than 20 percent, of such amount shall be dis-
bursed not later than 5 calendar days after 
such approval. 
(B) Not later than 14 calendar days after 
such approval, any remaining amounts shall be 
disbursed. 
(3) GUARANTEE.—Loans guaranteed under this 
section shall be 100 percent guaranteed by the Ad-
ministrator of the Small Business Administration. 
(4) INTEREST.—The Administrator and partici-
pating lenders shall not charge interest on any loan 
guaranteed under this section. 
(e) REPAYMENT.—Repayment for loans guaranteed 
under this section— 
(1) shall be amortized over a period of time not 
to exceed 10 years; and 
(2) may not begin until 12 months (which may 
be extended by the Administrator of the Small Busi-
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ness Administration) after the final disbursement of 
loan amounts pursuant to subsection (d)(2). 
(f) COLLATERAL.—A lender may not decline to make 
a loan described under this section to an otherwise eligible 
borrower due solely to inadequate collateral. The Adminis-
trator shall not decline to honor a guarantee on a loan 
made by a lender that is guaranteed under this section 
solely due to inadequate collateral. Lenders shall accept 
any available collateral, including subordinated liens, to 
secure a loan guaranteed under this section. 
(g) FEES.—Neither the Administrator of the Small 
Business Administration nor any lender may charge any 
fees to an applicant in connection with a loan guaranteed 
under this section. 
(h) FORGIVENESS.—If an eligible borrower that re-
ceives loan proceeds under this section demonstrates to the 
Administrator that the number of employees of such eligi-
ble borrower on December 31, 2021, is greater than or 
equal to the number of employees of such eligible borrower 
on December 31, 2019, the Administrator shall pay to the 
lender of such eligible borrower’s loan not more than 50 
percent of the outstanding principal on such loan. 
(i) SUNSET.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the Administrator of the Small Business 
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Administration may not guarantee a loan under this 
section after September 30, 2022. 
(2) EXTENSION.—The Administrator may ex-
tend authority to guarantee loans under this section 
by an additional 6 months by notifying Congress, in 
writing, within 10 calendar days before any exten-
sion. 
(j) 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). 
(k) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated $100,000,000,000 to the 
Administrator of the Small Business Administration to 
carry out this section. 
Æ 
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