Title: Increasing Access to Capital Act of 2020
Policy area: Commerce

Summary:
Increasing Access to Capital Act of 2020
This bill requires the Small Business Administration (SBA) to temporarily waive, or reduce to the maximum extent possible, certain fees on SBA loans. The bill also temporarily increases the guarantee amount and loan size for certain SBA loans, including express loans, and it permanently waives the guarantee fee on SBA loans for veterans.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6303 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 6303

 To temporarily reduce fees for certain loans under the Small Business 
Administration, to increase guarantee amounts on certain loans, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 19, 2020

   Mr. Crow introduced the following bill; which was referred to the 
                      Committee on Small Business

_______________________________________________________________________

                                 A BILL


 
 To temporarily reduce fees for certain loans under the Small Business 
Administration, to increase guarantee amounts on certain loans, 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 ``Increasing Access to Capital Act of 
2020''.

SEC. 2. TEMPORARY FEE REDUCTIONS.

    (a) Purpose.--The purpose of the section is to waive borrower and 
lender fees on loans, including a permanent fix to waive fees for 
veterans and their spouses.
    (b) Administrative Fee Waiver.--
            (1) In general.--During the period beginning on the date of 
        enactment of this Act and ending on September 30, 2021, 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)) (including a recipient of assistance under the 
        Community Advantage Pilot Program of the Administration) for 
        which an application is approved or pending approval on or 
        after the date of enactment of this Act, the Administrator 
        shall--
                    (A) 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)), collect no fee or reduce fees to 
                the maximum extent possible; and
                    (B) 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.
            (2) Application of fee eliminations or reductions.--To the 
        extent that amounts are made available to the Administrator for 
        the purpose of fee eliminations or reductions under paragraph 
        (1), the Administrator shall--
                    (A) first use any amounts provided to eliminate or 
                reduce fees paid by small business borrowers under 
                clauses (i) through (iii) of section 7(a)(18)(A) of the 
                Small Business Act (15 U.S.C. 636(a)(18)(A)), to the 
                maximum extent possible; and
                    (B) then use any amounts provided to eliminate or 
                reduce fees under 7(a)(23)(A) of the Small Business Act 
                (15 U.S.C. 636(a)(23)(A)).
    (c) Exception To Guarantee Fee Waiver for Veterans.--Section 
7(a)(31)(G) of the Small Business Act (15 U.S.C. 636(a)(31)(G)) is 
amended--
            (1) by striking clause (ii); and
            (2) by redesignating clause (iii) as clause (ii).
    (d) Temporary Fee Elimination for the 504 Loan Program.--
            (1) In general.--During the period beginning on the date of 
        enactment of this Act and ending on September 30, 2021, and to 
        the extent the cost of such elimination in fees is offset by 
        appropriations, with respect to each project or loan guaranteed 
        by the Administrator pursuant to title V of the Small Business 
        Investment Act of 1958 (15 U.S.C. 695 et seq.) for which an 
        application is approved or pending approval on or after the 
        date of enactment of this Act--
                    (A) the Administrator shall, in lieu of the fee 
                otherwise applicable under section 503(d)(2) of the 
                Small Business Investment Act of 1958 (15 U.S.C. 
                697(d)(2)), collect no fee; and
                    (B) a development company shall, in lieu of the 
                processing fee under section 120.971(a)(1) of title 13, 
                Code of Federal Regulations (relating to fees paid by 
                borrowers), or any successor thereto, collect no fee.
            (2) Reimbursement for waived fees.--
                    (A) In general.--To the extent that the cost of 
                such payments is offset by appropriations, the 
                Administrator shall reimburse each development company 
                that does not collect a processing fee pursuant to 
                paragraph (1)(B).
                    (B) Amount.--The payment to a development company 
                under subparagraph (A) shall be in an amount equal to 
                1.5 percent of the net debenture proceeds for which the 
                development company does not collect a processing fee 
                pursuant to paragraph (1)(B).

SEC. 3. GUARANTEE AMOUNTS.

    (a) Purpose.--The purpose of this section is to increase loan 
guarantee amounts in order to mitigate risk for lenders and keep credit 
flowing, including an emphasis on underserved borrowers.
    (b) 7(a) Loan Guarantees.--
            (1) In general.--Section 7(a)(2)(A) of the Small Business 
        Act (15 U.S.C. 636(a)(2)(A)) is amended by striking ``), such 
        participation by the Administration shall be equal to'' and all 
        that follows through the period at the end and inserting ``or 
        the Community Advantage Pilot Program of the Administration), 
        such participation by the Administration shall be equal to 90 
        percent of the balance of the financing outstanding at the time 
        of disbursement of the loan.''.
            (2) Termination.--Effective September 30, 2021, section 
        7(a)(2)(A) of the Small Business Act (15 U.S.C. 636(a)(2)(A)), 
        as amended by paragraph (1), is amended to read as follows:
                    ``(A) In general.--Except as provided in 
                subparagraphs (B), (D), and (E), 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 
                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.''.
    (c) Express Loan Guarantee Amounts and Loan Size Increases.--
            (1) Temporary modification.--Section 7(a)(31) of the Small 
        Business Act (15 U.S.C. 636(a)(31)) is amended--
                    (A) in subparagraph (A)(iv), by striking ``with a 
                guaranty rate of not more than 50 percent.'' and 
                inserting the following: ``with a guarantee rate--
                                    ``(I) for a loan in an amount less 
                                than or equal to $350,000, of not more 
                                than 90 percent; and
                                    ``(II) for a loan in an amount 
                                greater than $350,000, of not more than 
                                75 percent.''; and
                    (B) in subparagraph (D), by striking ``$350,000'' 
                and inserting ``$1,000,000''.
            (2) Increase in availability.--Effective September 30, 
        2021, section 7(a)(31) of the Small Business Act (15 U.S.C. 
        636(a)(31)), as amended by paragraph (1), is amended--
                    (A) in subparagraph (A)(iv), by striking 
                ``guarantee rate'' and all that follows through the 
                period at the end and inserting ``guarantee rate of not 
                more than 50 percent.''; and
                    (B) in subparagraph (D), by striking ``$1,000,000'' 
                and inserting ``$500,000''.

SEC. 4. MAXIMUM LOAN AMOUNT AND PROGRAM LEVELS FOR 7(A) LOANS.

    (a) Purpose.--The purpose of this section is to temporarily 
increase the maximum loan size in order to expand the reach of this 
long-term capital.
    (b) Maximum Loan Amount.--During the period beginning on the date 
of enactment of this Act and ending on September 30, 2021, with respect 
to any loan guaranteed under section 7(a) of the Small Business Act (15 
U.S.C. 636(a)) for which an application is approved or pending approval 
on or after the date of enactment of this Act, the maximum loan amount 
shall be $10,000,000.
    (c) Program Levels.--During each of fiscal years 2020 and 2021, 
commitments for general business loans authorized under section 7(a) of 
the Small Business Act (15 U.S.C. 636(a)) shall not exceed 
$75,000,000,000.

SEC. 5. MAXIMUM LOAN AMOUNT FOR 504 LOANS.

    (a) Purpose.--The purpose of this section is to make refinancing of 
fixed assets more flexible for small business concerns seeking 
immediate financing and relief from the COVID-19 crisis.
    (b) Temporary Increase.--During the period beginning on the date of 
enactment of this Act and ending on September 30, 2021, with respect to 
each project or loan guaranteed by the Administrator pursuant to title 
V of the Small Business Investment Act of 1958 (15 U.S.C. 695 et seq.) 
for which an application is approved or pending approval on or after 
the date of enactment of this Act, the maximum loan amount shall be 
$10,000,000.
    (c) Permanent Increase for Small Manufacturers.--Effective on 
October 1, 2021, section 502(2)(A)(iii) of the Small Business 
Investment Act of 1958 (15 U.S.C. 696(2)(A)(iii)) is amended by 
striking ``$5,500,000'' and inserting ``$10,000,000''.
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