‘‘(i) employs at the business entity de-
scribed in subparagraph (A)(ii) not fewer 
than 1 full-time employee who is not the 
borrower or relative of the borrower; and 
‘‘(ii) pays such employees at a rate 
not less than the minimum wage pre-
scribed by the State or locality in which 
the business entity is located.’’. 
SEC. 3. LOAN CANCELLATION FOR ENTREPRENEURS. 
Part D of title IV of the Higher Education Act of 
1965 (20 U.S.C. 1087a et seq.) is further amended by 
adding at the end the following: 
‘‘SEC. 460A. LOAN CANCELLATION FOR ENTREPRENEURS. 
‘‘(a) PROGRAM AUTHORIZED.—The Secretary is au-
thorized to carry out a program of canceling the obligation 
to repay a qualified loan amount in accordance with sub-
section (b) for Federal Direct Stafford Loans and Federal 
Direct Unsubsidized Stafford Loans made under this part 
for any borrower who— 
‘‘(1) for not less than a 3-year period and not 
more than a 10-year period ending on the date on 
which the borrower requests a cancellation under 
this section, has owned and controlled a qualified 
HUBZone small business concern (as determined by 
the Administrator of the Small Business Administra-
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tion), which has been registered as business in a 
State; and 
‘‘(2) is not in default on a loan for which the 
borrower seeks forgiveness. 
‘‘(b) QUALIFIED LOAN AMOUNT.— 
‘‘(1) IN GENERAL.—The Secretary shall cancel 
not more than $17,500 in the aggregate of the loan 
obligation on a Federal Direct Stafford Loan or a 
Federal Direct Unsubsidized Stafford Loan that is 
outstanding. 
‘‘(2) TREATMENT OF CONSOLIDATION LOANS.— 
A loan amount for a Federal Direct Consolidation 
Loan may be a qualified loan amount for the pur-
poses of this subsection only to the extent that such 
loan amount was used to repay a Federal Direct 
Stafford Loan, a Federal Direct Unsubsidized Staf-
ford Loan, or a loan made under section 428 or 
428H, for a borrower who meets the requirements of 
subsection (a), as determined in accordance with 
regulations prescribed by the Secretary. 
‘‘(c) PRIORITY.—The Secretary shall grant loan for-
giveness under this section on a first-come, first-served 
basis, and subject to the availability of appropriations. 
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‘‘(d) RULE OF CONSTRUCTION.—Nothing in this sec-
tion shall be construed to authorize the refunding of any 
repayment of a loan.’’. 
SEC. 4. PUBLICATION AND REPORT. 
(a) PUBLICATION.—The Secretary of Education and 
the Administrator of the Small Business Administration 
shall each make available, on publicly accessible websites 
of the Department of Education and the Small Business 
Administration, respectively, information on the student 
loan deferment program for qualified entrepreneurs under 
section 455(f) of the Higher Education Act of 1965 (20 
U.S.C. 1087e(f)), as amended by this Act. 
(b) REPORT TO CONGRESS.—Not later than 180 days 
after the date of the enactment of this Act, the Secretary 
of Education shall submit to Congress a report that in-
cludes— 
(1) an assessment of the progress of the Sec-
retary in carrying out the student loan deferment 
program for qualified entrepreneurs under section 
455(f) of the Higher Education Act of 1965 (20 
U.S.C. 1087e(f)), as amended by this Act; and 
(2) a description of any ongoing efforts to in-
crease participation in such program. 
Æ 
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