I 
116TH CONGRESS 
2D SESSION 
H. R. 8376 
To improve the debt relief program under the CARES Act, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 24, 2020 
Mr. DELGADO introduced the following bill; which was referred to the Com-
mittee on Small Business, and in addition to the Committee on Ways and 
Means, for a period to be subsequently determined by the Speaker, in 
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned 
A BILL 
To improve the debt relief program under the CARES Act, 
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 Debt 
Relief Extension Act of 2020’’. 
SEC. 2. SUBSIDY FOR CERTAIN LOAN PAYMENTS. 
(a) IN GENERAL.—Section 1112 of the CARES Act 
(15 U.S.C. 9011) is amended— 
(1) in subsection (c)— 
VerDate Sep 11 2014 
02:53 Oct 18, 2020
Jkt 019200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H8376.IH
H8376
kjohnson on DSK79L0C42PROD with BILLS
‘‘(B) with respect to a covered loan ap-
proved by the Administration before the date of 
enactment of this Act and on deferment— 
‘‘(i) except as provided in clauses (ii) 
and (iii), for the 6-month period beginning 
with the next payment due on the covered 
loan after the deferment period and after 
the covered loan is fully disbursed; 
‘‘(ii) for the 11-month period begin-
ning with the next payment due on the 
covered loan after the deferment period 
and after the covered loan is fully dis-
bursed, with respect to a covered loan de-
scribed in subclause (I) or (II) of subpara-
graph (A)(ii); and 
‘‘(iii) for the 18-month period begin-
ning with the next payment due on the 
covered loan after the deferment period 
and after the covered loan is fully dis-
bursed, with respect to a covered loan de-
scribed in subclause (I) or (II) of subpara-
graph (A)(iii); and’’; and 
(iii) in subparagraph (C)— 
VerDate Sep 11 2014 
02:53 Oct 18, 2020
Jkt 019200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H8376.IH
H8376
kjohnson on DSK79L0C42PROD with BILLS
(I) by striking ‘‘covered loan 
made’’ and inserting ‘‘covered loan 
approved by the Administration’’; 
(II) by striking ‘‘6 months after’’ 
and inserting ‘‘18 months after’’; 
(III) by inserting ‘‘(or, for a cov-
ered loan made by an intermediary to 
a small business concern using loans 
or grants received under section 7(m) 
of the Small Business Act (15 U.S.C. 
636(m)) or guaranteed by the Admin-
istration under the Community Ad-
vantage Pilot Program of the Admin-
istration, for the 12-month period)’’ 
after ‘‘6-month period’’; and 
(IV) by inserting ‘‘after the cov-
ered loan is fully disbursed’’ after 
‘‘due on the covered loan’’; and 
(B) by adding at the end the following: 
‘‘(4) 
ADDITIONAL
PROVISIONS
FOR
NEW 
LOANS.—With respect to a loan described in para-
graph (1)(C)— 
‘‘(A) the Administrator may further extend 
the 18-month period described in paragraph 
VerDate Sep 11 2014 
02:53 Oct 18, 2020
Jkt 019200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H8376.IH
H8376
kjohnson on DSK79L0C42PROD with BILLS
(1)(C) if there are sufficient funds to continue 
those payments; and 
‘‘(B) during the underwriting process, a 
lender of such a loan may consider the pay-
ments under this section as part of a com-
prehensive review to determine the ability to 
repay over the entire period of maturity of the 
loan. 
‘‘(5) ELIGIBILITY.—Eligibility for a covered 
loan to receive such payments of principal, interest, 
and any associated fees under this subsection shall 
be based on the date on which the covered loan is 
approved by the Administration. 
‘‘(6) AUTHORITY TO REVISE EXTENSIONS.— 
‘‘(A) IN GENERAL.—As part of preparing 
the reports under subsection (i)(5) that are re-
quired to be submitted not later than January 
15, 2021, and not later than June 15, 2021, 
the Administrator conduct an evaluation of 
whether amounts made available to make pay-
ments under this subsection are sufficient to 
make the payments for the period described in 
paragraph (1). 
‘‘(B) PLAN.—If the Administrator deter-
mines under subparagraph (A) that the 
VerDate Sep 11 2014 
02:53 Oct 18, 2020
Jkt 019200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H8376.IH
H8376
kjohnson on DSK79L0C42PROD with BILLS
amounts made available to make payments 
under this subsection are insufficient, the Ad-
ministrator shall— 
‘‘(i) develop a plan to proportionally 
reduce the number of months provided for 
each period described in paragraph (1), 
while ensuring all amounts made available 
to make payments under this subsection 
are fully expended; and 
‘‘(ii) before taking action under the 
plan developed under clause (i), include in 
the applicable report under subsection 
(i)(5) the plan and the data that informs 
the plan. 
‘‘(7) RULE
OF
CONSTRUCTION.—Nothing in 
this subsection shall preclude a borrower from re-
ceiving full payments of principal, interest, and any 
associated fees as authorized by subsection.’’; 
(2) by redesignating subsection (f) as sub-
section (k); and 
(3) by inserting after subsection (e) the fol-
lowing: 
‘‘(f) ELIGIBILITY FOR NEW LOANS.—For each indi-
vidual lending program under this section, the Adminis-
trator may establish a minimum loan maturity period, tak-
VerDate Sep 11 2014 
02:53 Oct 18, 2020
Jkt 019200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H8376.IH
H8376
kjohnson on DSK79L0C42PROD with BILLS
ing into consideration the normal underwriting require-
ments for each such program, with the goal of preventing 
abuse under the program. 
‘‘(g) LIMITATION ON ASSISTANCE.—A borrower may 
not receive assistance under subsection (c) for more than 
1 covered loan of the borrower described in paragraph 
(1)(C) of that subsection. 
‘‘(h) TAXABILITY.—For purposes of the Internal 
Revenue Code of 1986— 
‘‘(1) any payment made under subsection (c) 
shall be treated as paid by the person on whose be-
half such payment is made; 
‘‘(2) no amount shall be included in the gross 
income of the borrower by reason of a payment 
made under subsection (c); and 
‘‘(3) no deduction shall be denied or reduced, 
no tax attribute shall be reduced, and no basis in-
crease shall be denied, by reason of the exclusion 
from gross income provided by paragraph (2). 
‘‘(i) REPORTING AND OUTREACH.— 
‘‘(1) UPDATED INFORMATION.— 
‘‘(A) IN GENERAL.—Not later than 7 days 
after the date of enactment of the Small Busi-
ness Debt Relief Extension Act of 2020, the 
Administrator shall make publicly available in-
VerDate Sep 11 2014 
02:53 Oct 18, 2020
Jkt 019200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H8376.IH
H8376
kjohnson on DSK79L0C42PROD with BILLS
formation regarding the modifications to the as-
sistance provided under this section under the 
amendments made by such Act. 
‘‘(B) GUIDANCE.—Not later than 14 days 
after the date of enactment of the Small Busi-
ness Debt Relief Extension Act of 2020, the 
Administrator shall issue guidance on imple-
menting the modifications to the assistance pro-
vided under this section under the amendments 
made by such Act. 
‘‘(2) PUBLICATION OF LIST.—Not later than 14 
days after the date of enactment of the Small Busi-
ness Debt Relief Extension Act of 2020, the Admin-
istrator shall transmit to each lender of a covered 
loan a list of each borrower of a covered loan that 
includes the North American Industry Classification 
System code assigned to the borrower, based on the 
records of the Administration, to assist the lenders 
in identifying which borrowers qualify for an exten-
sion of payments under subsection (c). 
‘‘(3) EDUCATION
AND
OUTREACH.—The Ad-
ministrator shall provide education, outreach, and 
communication to lenders, borrowers, district offices, 
and resource partners of the Administration in order 
to ensure full and proper compliance with this sec-
VerDate Sep 11 2014 
02:53 Oct 18, 2020
Jkt 019200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H8376.IH
H8376
kjohnson on DSK79L0C42PROD with BILLS
tion, encourage broad participation with respect to 
covered loans that have not yet been approved by the 
Administrator, and help lenders transition borrowers 
from subsidy payments under this section directly to 
a deferral when suitable for the borrower. 
‘‘(4) NOTIFICATION.—Not later than 30 days 
after the date of enactment of the Small Business 
Debt Relief Extension Act of 2020, the Adminis-
trator shall mail a letter to each borrower of a cov-
ered loan that includes— 
‘‘(A) an overview of assistance provided 
under this section; 
‘‘(B) the rights of the borrower to receive 
that assistance; 
‘‘(C) how to seek recourse with the Admin-
istrator or the lender of the covered loan if the 
borrower has not received that assistance; and 
‘‘(D) the rights of the borrower to request 
a loan deferral from a lender, and guidance on 
how to do successfully transition directly to a 
loan deferral once subsidy payments under this 
section are concluded. 
‘‘(5) MONTHLY
REPORTING.—Not later than 
the 15th of each month beginning after the date of 
enactment of the Small Business Debt Relief Exten-
VerDate Sep 11 2014 
02:53 Oct 18, 2020
Jkt 019200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H8376.IH
H8376
kjohnson on DSK79L0C42PROD with BILLS
sion Act of 2020, the Administrator shall submit to 
Congress a report on assistance provided under this 
section, which shall include— 
‘‘(A) monthly and cumulative data on pay-
ments made under this section as of the date of 
the report, including a breakdown by— 
‘‘(i) the number of participating bor-
rowers; 
‘‘(ii) the volume of payments made for 
each type of covered loan; and 
‘‘(iii) the volume of payments made 
for covered loans made before the date of 
enactment of this Act and loans made 
after such date of enactment; 
‘‘(B) the names of any lenders of covered 
loans that have not submitted information on 
the covered loans to the Administrator during 
the preceding month; and 
‘‘(C) an update on the education and out-
reach activities of the Administration carried 
out under paragraph (3).’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply as if included in the enactment 
of section 1112 of the CARES Act (15 U.S.C. 9011). 
Æ 
VerDate Sep 11 2014 
02:53 Oct 18, 2020
Jkt 019200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6301
E:\BILLS\H8376.IH
H8376
kjohnson on DSK79L0C42PROD with BILLS