Title: Small Business Access to Recovery Capital Act
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%, increasing the maximum loan value to $10 million, and waiving repayment for any new 7(a) loans for one year. The SBA must issue temporary COVID-19 (i.e., coronavirus disease 2019) guidance that reflects these changes.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 4817 Introduced in Senate (IS)]

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116th CONGRESS
  2d Session
                                S. 4817

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

             October 20 (legislative day, October 19), 2020

    Mr. Rubio (for himself, Mr. Risch, Ms. Collins, and Mr. Hawley) 
introduced the following bill; which was read twice and referred to the 
            Committee on Small Business and Entrepreneurship

_______________________________________________________________________

                                 A BILL


 
    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)) is amended--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``(E), and (F)'' and inserting ``and (E)'';
                    (B) in subparagraph (A), by striking ``equal to--'' 
                and all that follows through the end of the 
                subparagraph and inserting ``equal to 95 percent of the 
                balance of the financing outstanding at the time of 
                disbursement of the loan.'';
                    (C) 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
                    (D) 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) in the matter preceding subparagraph (A), by 
                striking ``and (E)'' and inserting ``(E), and (F)'';
                    (B) in subparagraph (A), by striking ``equal to 95 
                percent of the balance of financing outstanding at the 
                time of disbursement of the loan.'' and inserting 
                ``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) by redesignating subparagraph (E) as 
                subparagraph (F); and
                    (D) 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.''.
    (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.
    (e) Extension of Subsidy on 7(a) Loan Payments.--Section 1112 of 
the CARES Act (15 U.S.C. 9011) is amended--
            (1) in subsection (c)--
                    (A) in paragraph (1)--
                            (i) in the matter preceding subparagraph 
                        (A), by inserting ``or loan described in 
                        subparagraph (D)'' after ``covered loan'';
                            (ii) in subparagraph (B), by striking 
                        ``and'' at the end;
                            (iii) in subparagraph (C), by striking the 
                        period at the end and inserting ``; and''; and
                            (iv) by adding at the end the following:
                    ``(D) with respect to a loan that is guaranteed by 
                the Administration under section 7(a) of the Small 
                Business Act (15 U.S.C. 636(a)), including a loan made 
                under the Community Advantage Pilot Program of the 
                Administration and a loan made under paragraph (36) of 
                such section 7(a), that was made during the period 
                beginning on the date of enactment of this subparagraph 
                and ending on the date that is 1 year after such date 
                of enactment, for the 1-year period beginning with the 
                first payment due on the loan.'';
                    (B) in paragraph (2), by inserting ``or loan 
                described in paragraph (1)(D), as applicable,'' after 
                ``covered loan''; and
                    (C) in paragraph (3), by inserting ``or loan 
                described in paragraph (1)(D), as applicable,'' after 
                ``covered loan'';
            (2) in subsection (d)(2)--
                    (A) by striking ``covered loan durations'' and 
                inserting ``the duration of any covered loan or loan 
                described in subsection (c)(1)(D)''; and
                    (B) by inserting ``or loans described in subsection 
                (c)(1)(D), as applicable,'' after ``covered loans''; 
                and
            (3) in subsection (e)--
                    (A) by inserting ``or loan described in subsection 
                (c)(1)(D)'' after ``a covered loan''; and
                    (B) by inserting ``or loan described in subsection 
                (c)(1)(D), as applicable,'' after ``the covered loan''.
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