Small Business Access to Recovery Capital Act
Bill: S.174 | Sponsor: Sen. Rubio, Marco (R-FL)
Policy area: Commerce

Summary:
Small Business Access to Recovery Capital Act
This bill temporarily modifies the 7(a) Loan Guaranty Program of the Small Business Administration (SBA) by waiving borrower and lender fees, increasing the government guarantee to 95%, and increasing the maximum loan value to $10 million. The SBA must issue temporary COVID-19 guidance that reflects these changes.

To modify the 7(a) loan guaranty program of the Small Business 
                Administration, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Small Business Access to Recovery 
Capital Act''.

SEC. 2. CHANGES TO THE 7(A) LOAN GUARANTY PROGRAM.

    (a) Fee Waiver.--During the 1-year period following the date of 
enactment of this Act, and to the extent that the cost of such 
elimination or reduction of fees is offset by appropriations, with 
respect to each loan guaranteed under section 7(a) of the Small 
Business Act (15 U.S.C. 636(a))--
            (1) in lieu of the fee otherwise applicable under section 
        7(a)(23)(A) of the Small Business Act (15 U.S.C. 
        636(a)(23)(A)), the Administrator shall collect no fee or 
        reduce fees to the maximum extent possible; and
            (2) for which the application is approved on or after the 
        date of enactment of this Act, the Administrator shall, in lieu 
        of the fee otherwise applicable under section 7(a)(18)(A) of 
        the Small Business Act (15 U.S.C. 636(a)(18)(A)), collect no 
        fee or reduce fees to the maximum extent possible.
    (b) Guarantee Amount.--
            (1) In general.--Section 7(a)(2) of the Small Business Act 
        (15 U.S.C. 636(a)(2)), as amended by section 326(a)(1) of the 
        Economic Aid to Hard-Hit Small Businesses, Nonprofits, and 
        Venues Act, is amended--
                    (A) in subparagraph (A)--
                            (i) by striking ``(E), and (F)'' and 
                        inserting ``and (E),''; and
                            (ii) by striking ``90 percent'' and 
                        inserting ``95 percent'';
                    (B) by striking subparagraphs (D) and (E) and 
                inserting the following:
                    ``(D) Participation under the express loan 
                program.--In an agreement to participate in a loan on a 
                deferred basis under paragraph (31), the participation 
                by the Administration shall be equal to--
                            ``(i) 75 percent of the balance of the 
                        financing outstanding at the time of 
                        disbursement of the loan, if such balance 
                        exceeds $150,000; or
                            ``(ii) 85 percent of the balance of the 
                        financing outstanding at the time of 
                        disbursement of the loan, if such balance is 
                        less than or equal to $150,000.''; and
                    (C) by redesignating subparagraph (F) as 
                subparagraph (E).
            (2) Prospective repeal.--Effective 1 year after the date of 
        enactment of this Act, section 7(a)(2) of the Small Business 
        Act (15 U.S.C. 636(a)(2)) is amended--
                    (A) by striking subparagraph (A) and inserting the 
                following:
                    ``(A) In general.--Except as provided in 
                subparagraphs (B), (D), (E), and (F), in an agreement 
                to participate in a loan on a deferred basis under this 
                subsection (including a loan made under the Preferred 
                Lenders Program), such participation by the 
                Administrator shall be equal to--
                            ``(i) 75 percent of the balance of the 
                        financing outstanding at the time of 
                        disbursement of the loan, if such balance 
                        exceeds $150,000; or
                            ``(ii) 85 percent of the balance of the 
                        financing outstanding at the time of 
                        disbursement of the loan, if such balance is 
                        less than or equal to $150,000.'';
                    (B) by redesignating subparagraph (E) as 
                subparagraph (F); and
                    (C) by striking subparagraph (D) and inserting the 
                following:
                    ``(D) Participation under export working capital 
                program.--In an agreement to participate in a loan on a 
                deferred basis under the Export Working Capital Program 
                established pursuant to paragraph (14)(A), such 
                participation by the Administration shall be 90 
                percent.
                    ``(E) Participation in international trade loan.--
                In an agreement to participate in a loan on a deferred 
                basis under paragraph (16), the participation by the 
                Administration may not exceed 90 percent.''.
            (3) Repeal of other prospective amendment.--Section 
        326(a)(2) of the the Economic Aid to Hard-Hit Small Businesses, 
        Nonprofits, and Venues Act is repealed.
    (c) Maximum Loan Amount.--
            (1) In general.--Section 7(a)(3) of the Small Business Act 
        (15 U.S.C. 636(a)(3)) is amended--
                    (A) in subparagraph (A)--
                            (i) by striking ``$3,750,000'' and 
                        inserting ``$9,500,000''; and
                            (ii) by striking ``$5,000,000'' and 
                        inserting ``$10,000,000''; and
                    (B) in subparagraph (B)--
                            (i) by striking ``$4,500,000'' and 
                        inserting ``$9,500,000''; and
                            (ii) by striking ``$5,000,000'' and 
                        inserting ``$10,000,000''.
            (2) Prospective repeal.--Effective 1 year after the date of 
        enactment of this Act, section 7(a)(3) of the Small Business 
        Act (15 U.S.C. 636(a)(3)) is amended--
                    (A) in subparagraph (A)--
                            (i) by striking ``$9,500,000'' and 
                        inserting ``$3,750,000''; and
                            (ii) by striking ``$10,000,000'' and 
                        inserting ``$5,000,000''; and
                    (B) in subparagraph (B)--
                            (i) by striking ``$9,500,000'' and 
                        inserting ``$4,500,000''; and
                            (ii) by striking ``$10,000,000'' and 
                        inserting ``$5,000,000''.
    (d) COVID-19 Guidance.--Not later than 10 days after the date of 
enactment of this Act, the Administrator shall issue guidance that--
            (1) temporarily updates the standard operating procedures 
        of the Administration to provide requirements for appropriate 
        lending given the economic conditions and considerations as of 
        the date of enactment of this Act; and
            (2) shall be utilized with respect to all approval and 
        subsequent actions taken on loans made under such section 7(a) 
        during the 1-year period following the date of enactment of 
        this Act.
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