I 
116TH CONGRESS 
1ST SESSION 
H. R. 231 
To amend the Higher Education Act of 1965 to provide loan deferment 
and loan cancellation for founders and employees of small business start- 
ups, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 3, 2019 
Ms. VELA´ZQUEZ (for herself and Mr. SERRANO) introduced the following bill; 
which was referred to the Committee on Education and Labor, and in 
addition to the Committees on Ways and Means, and Small Business, for 
a period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the com-
mittee concerned 
A BILL 
To amend the Higher Education Act of 1965 to provide 
loan deferment and loan cancellation for founders and 
employees of small business start-ups, and for other pur-
poses. 
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 ‘‘Supporting America’s 
Young Entrepreneurs Act of 2019’’. 
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SEC. 2. SMALL BUSINESS START-UP EMPLOYEE LOAN 
DEFERMENT AND CANCELLATION. 
(a) DEFERMENT.—Section 455(f) of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1087e(f)) is amended— 
(1) in paragraph (1), by striking ‘‘A borrower 
of a loan’’ and inserting ‘‘Except as provided in 
paragraph (5), a borrower of a loan’’; and 
(2) by adding at the end the following: 
‘‘(5) NO
INTEREST
DEFERMENT
ELIGIBILITY 
FOR FOUNDERS OF SMALL BUSINESS START-UPS.— 
A borrower of a loan made under this part shall be 
eligible for a deferment, during which periodic in-
stallments of principal and interest need not be paid, 
during any period not in excess of 3 years during 
which the borrower is employed as a founder of a 
small business start-up (as defined in subsection 
(r)(3)).’’. 
(b) LOAN CANCELLATION.—Section 455 of the High-
er Education Act of 1965 (20 U.S.C. 1087e) is amended 
by adding at the end the following: 
‘‘(r) LOAN CANCELLATION
FOR CERTAIN SMALL 
BUSINESS START-UP EMPLOYEES.— 
‘‘(1) FOUNDER OF A SMALL BUSINESS START- 
UP IN A DISTRESSED AREA.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
cancel $20,000 of the balance of interest and 
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principal due, in accordance with subparagraph 
(B), on any eligible Federal Direct Loan not in 
default for a borrower who— 
‘‘(i) has made 24 monthly payments 
on the eligible Federal Direct Loan after 
the date of the enactment of this sub-
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 as a founder 
of a small business start-up in a distressed 
area during the period in which the bor-
rower makes each of the 24 payments; 
‘‘(iii) is employed as a founder of a 
small business start-up in a distressed area 
at the time of such cancellation; and 
‘‘(iv) is approved for loan cancellation 
by the young entrepreneurs business center 
under section 47 of the Small Business Act 
(16 U.S.C. 631 et seq.). 
‘‘(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 $20,000 of the 
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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 $20,000 under this subparagraph. 
‘‘(C) INELIGIBILITY
FOR
DOUBLE
BENE-
FITS.—No borrower may, for the same service, 
receive a reduction of loan obligations under 
both this paragraph and— 
‘‘(i) paragraph (2); 
‘‘(ii) subsection (m); or 
‘‘(iii) section 428J, 428K, 428L, or 
460. 
‘‘(2) EMPLOYEE OF A SMALL BUSINESS START- 
UP.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
cancel $3,000 of the balance of interest and 
principal due, in accordance with subparagraph 
(B), on any eligible Federal Direct Loan not in 
default for a borrower who— 
‘‘(i) has made 12 monthly payments 
on the eligible Federal Direct Loan after 
the date of the enactment of this sub-
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