Title: Small Business Disaster Loan Enhancement Act of 2020
Policy area: Commerce

Summary:
Small Business Disaster Loan Enhancement Act of 2020
This bill authorizes and provides funding for additional disaster loans and grants made to small businesses by the Small Business Administration (SBA) and temporarily limits the interest rate for certain economic injury disaster loans.
Specifically, the bill authorizes an additional disaster loan to a prior recipient that received such a loan during the period between February 15, 2020, and December 31, 2020, up to an aggregate amount of $2 million. Further, the bill prohibits the SBA from imposing a maximum loan amount limit that is lower than $2 million for an initial disaster loan; rather, the SBA shall only consider the financial need and ability of the applicant to repay.
The bill also authorizes a recipient of such additional lending to request an additional advance, up to an aggregate amount of $10,000. A recipient that suffered a decline in revenue of not less than 50% between March 2, 2020, and December 31, 2020, may request an advance of not more than $25,000.
Further, the interest rate for any economic injury disaster loan made between February 15, 2020, and December 31, 2020, shall not exceed 1%.
Any amounts made available to provide loans under the Paycheck Protection Program established to support small businesses in response to COVID-19 (i.e., coronavirus disease 2019) that are unobligated as of August 8, 2020, shall be made available for SBA disaster loans.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 4167 Introduced in Senate (IS)]

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116th CONGRESS
  2d Session
                                S. 4167

To set the interest rate applicable to certain economic injury disaster 
                     loans, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              July 2, 2020

Mr. Schatz (for himself and Ms. Cortez Masto) introduced the following 
   bill; which was read twice and referred to the Committee on Small 
                     Business and Entrepreneurship

_______________________________________________________________________

                                 A BILL


 
To set the interest rate applicable to certain economic injury disaster 
                     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 ``Small Business Disaster Loan 
Enhancement Act of 2020''.

SEC. 2. ECONOMIC INJURY DISASTER LOANS.

    (a) Definitions.--In this section, the terms ``Administration'' and 
``Administrator'' means the Administration and the Administrator 
thereof.
    (b) Interest Rate.--Notwithstanding any other provision of law, any 
economic injury disaster loan made under section 7(b)(2) of the Small 
Business Act (15 U.S.C. 636(b)(2)) during the period beginning on 
February 15, 2020, and ending on December 31, 2020, shall have an 
interest rate of not more than 1 percent.
    (c) Additional Loan for Existing Borrowers.--
            (1) In general.--A recipient of an economic disaster injury 
        loan made under section 7(b)(2) of the Small Business Act (15 
        U.S.C. 636(b)(2)) during the period beginning on February 15, 
        2020, and ending on December 31, 2020, may submit to the 
        Administration an application for an additional amount to 
        increase in the amount of that loan, provided that the 
        aggregate amount received under such section by the recipient 
        during that period shall be not more than $2,000,000.
            (2) Consideration.--In considering an application submitted 
        under paragraph (1), the Administrator shall only consider the 
        financial need and ability to repay of the applicant.
    (d) Loans for New Borrowers.--With respect to an economic injury 
disaster loan made under section 7(b)(2) of the Small Business Act (15 
U.S.C. 636(b)(2)) during the period beginning on the date of enactment 
of this Act and ending on December 31, 2020--
            (1) the Administrator shall not impose a maximum loan 
        amount limit that is lower than $2,000,000; and
            (2) in determining the amount of the loan, the 
        Administrator shall only consider the financial need and 
        ability to repay of the applicant.
    (e) Emergency EIDL Grants.--Section 1110(e) of division A of the 
CARES Act (Public Law 116-136) is amended--
            (1) in paragraph (1), by inserting ``full'' before 
        ``amount'';
            (2) in paragraph (3)--
                    (A) by striking ``The'' and inserting the 
                following:
                    ``(A) In general.--Except as provided in this 
                paragraph, the''; and
                    (B) by adding at the end the following:
                    ``(B) Additional amount.--A recipient of an advance 
                under this subsection of less than the full amount 
                requested may submit to the Administrator a request for 
                an additional amount, provided that the aggregate 
                amount received shall be not more than $10,000 or, in 
                the case of an entity described in subparagraph (C), 
                not more than $25,000.
                    ``(C) Increased amount for certain applicants.--
                            ``(i) In general.--An eligible entity 
                        described in paragraph (1) that suffered a 
                        decline in gross receipts of not less than 50 
                        percent during an 8-week period between March 
                        2, 2020, and December 31, 2020, relative to a 
                        comparable 8-week period immediately preceding 
                        March 2, 2020, or during 2019 may request an 
                        advance of not more than $25,000.
                            ``(ii) Determination of need.--In 
                        determining the amount of the advance under 
                        clause (i), the Administrator shall only 
                        consider the financial need of the 
                        applicant.''; and
            (3) in paragraph (7), by striking ``$20,000,000,000'' and 
        inserting ``$40,000,000,000''.
    (f) Appropriations.--Out of amounts in the Treasury not otherwise 
appropriated, there is appropriated--
            (1) to the Administration $80,000,000,000 to carry out 
        subsection (c); and
            (2) for an additional amount for ``Emergency EIDL Grants'' 
        for the cost of emergency EIDL grants authorized by section 
        1110 of division A of the CARES Act (Public Law 116-136), 
        $20,000,000,000, to remain available until expended, to 
        prevent, prepare for, and respond to coronavirus, domestically 
        or internationally.
    (g) Transfer of Unobligated PP Amounts to EIDL Account.--Any 
amounts appropriated for loans made under section 7(a)(36) of the Small 
Business Act (15 U.S.C. 636(a)(36)) that are unobligated as of August 
8, 2020 shall be transferred to the appropriations account under the 
heading ``Small Business Administration--Disaster Loans Program 
Account'' and made available for the purpose of carrying out section 
7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2)).
    (h) Emergency Designation.--
            (1) In general.--The amounts provided under this section 
        are designated as an emergency requirement pursuant to section 
        4(g) of the Statutory Pay-As-You-Go Act of 2010 (2 U.S.C. 
        933(g)).
            (2) Designation in senate.--In the Senate, this section is 
        designated as an emergency requirement pursuant to section 
        4112(a) of H. Con. Res. 71 (115th Congress), the concurrent 
        resolution on the budget for fiscal year 2018.
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