Title: Small Business Relief Guaranteed Loan Program Act of 2020
Policy area: Commerce

Summary:
Small Business Relief Guaranteed Loan Program Act of 2020
This bill requires the Small Business Administration (SBA) to carry out a temporary program to guarantee loans made by banks or other lenders to small businesses affected by COVID-19 (i.e., coronavirus disease 2019).
Such loans shall be zero-interest, fee-free loans, and up to 50% of the principal on such loans shall be forgiven if a recipient demonstrates that its employment has not decreased between December 31, 2019, and December 31, 2021.
In addition to permitted uses of SBA loans, such guaranteed loans may also be used for purposes such as providing employees of the borrower with (1) benefits and wages, (2) technology for shifting to telework or remote work, or (3) necessary items specified by a public health authority to mitigate the spread of COVID-19.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6341 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 6341

   To establish a business stabilization guaranteed loan program and 
    authority to establish a secondary market in the Small Business 
                Administration, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 23, 2020

  Ms. Craig introduced the following bill; which was referred to the 
                      Committee on Small Business

_______________________________________________________________________

                                 A BILL


 
   To establish a business stabilization guaranteed loan program and 
    authority to establish a secondary market in 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 Relief Guaranteed 
Loan Program Act of 2020''.

SEC. 2. BUSINESS STABILIZATION GUARANTEED LOAN PROGRAM.

    (a) In General.--The Administrator of the Small Business 
Administration shall carry out a program to guarantee loans to eligible 
borrowers, made by banks or other lenders.
    (b) Eligible Borrower Defined.--In this section, the term 
``eligible borrower'' means a person who--
            (1) is a small business concern as defined under section 3 
        of the Small Business Act (15 U.S.C. 632); and
            (2) is located in a State or territory of the United States 
        with a confirmed or presumed positive case of COVID-19.
    (c) Use of Funds.--In addition to the use of proceeds currently 
permitted under section 7(a) of the Small Business Act (15 U.S.C. 
636(a)), loans guaranteed under this section may be used for the 
following purposes:
            (1) To make periodic payments of principal and interest, 
        for a period not to exceed 12 months, on a loan or a loan 
        guarantee made to an eligible borrower that meets the 
        eligibility standards of such section 7(a).
            (2) To provide benefits to employees of the eligible 
        borrower, including group life insurance, disability insurance, 
        sick leave, annual leave, educational benefits, paid family 
        leave, or retirement benefits (including a pension plan or 
        IRA).
            (3) To pay wages to employees of the eligible borrower, and 
        related State and Federal payroll taxes, except that loan 
        proceeds may not be used to pay amounts under a garnishment 
        order issued by an agency of a State or Federal Government.
            (4) To provide technology, hardware, or software for a 
        shift to telework or remote work for employees of the eligible 
        borrower to enable continuity of operations.
            (5) To pay rent or utilities due or owed on any place of 
        business of the eligible borrower.
            (6) To refinance an existing debt (including interest) in 
        an amount not to exceed 50 percent of the amount of the debt.
            (7) To provide floor plan financing or other revolving line 
        of credit.
            (8) To pay past-due Federal, State, or local payroll taxes, 
        sales taxes, or other similar taxes that are required to be 
        collected by the eligible borrower and held in trust on behalf 
        of a Federal, State, or local government entity.
            (9) To provide employees and patrons of the eligible 
        borrower with the necessary items specified by any public 
        health authority to mitigate the spread of COVID-19.
    (d) Loan Terms.--
            (1) Amount.--Loans guaranteed under this section may not 
        exceed $2,500,000.
            (2) Disbursement.--With respect to a loan guaranteed under 
        this section, loan amounts shall be disbursed as follows:
                    (A) Not less than 10 percent, but not more than 20 
                percent, of such amount shall be disbursed not later 
                than 5 calendar days after such approval.
                    (B) Not later than 14 calendar days after such 
                approval, any remaining amounts shall be disbursed.
            (3) Guarantee.--Loans guaranteed under this section shall 
        be 100 percent guaranteed by the Administrator of the Small 
        Business Administration.
            (4) Interest.--The Administrator and participating lenders 
        shall not charge interest on any loan guaranteed under this 
        section.
    (e) Repayment.--Repayment for loans guaranteed under this section--
            (1) shall be amortized over a period of time not to exceed 
        10 years; and
            (2) may not begin until 12 months (which may be extended by 
        the Administrator of the Small Business Administration) after 
        the final disbursement of loan amounts pursuant to subsection 
        (d)(2).
    (f) Collateral.--A lender may not decline to make a loan described 
under this section to an otherwise eligible borrower due solely to 
inadequate collateral. The Administrator shall not decline to honor a 
guarantee on a loan made by a lender that is guaranteed under this 
section solely due to inadequate collateral. Lenders shall accept any 
available collateral, including subordinated liens, to secure a loan 
guaranteed under this section.
    (g) Fees.--Neither the Administrator of the Small Business 
Administration nor any lender may charge any fees to an applicant in 
connection with a loan guaranteed under this section.
    (h) Forgiveness.--If an eligible borrower that receives loan 
proceeds under this section demonstrates to the Administrator that the 
number of employees of such eligible borrower on December 31, 2021, is 
greater than or equal to the number of employees of such eligible 
borrower on December 31, 2019, the Administrator shall pay to the 
lender of such eligible borrower's loan not more than 50 percent of the 
outstanding principal on such loan.
    (i) Sunset.--
            (1) In general.--Except as provided in paragraph (2), the 
        Administrator of the Small Business Administration may not 
        guarantee a loan under this section after September 30, 2022.
            (2) Extension.--The Administrator may extend authority to 
        guarantee loans under this section by an additional 6 months by 
        notifying Congress, in writing, within 10 calendar days before 
        any extension.
    (j) Emergency Rulemaking Authority.--
            (1) In general.--Within 15 days after the date of the 
        enactment of this section, the Administrator of the Small 
        Business Administration--
                    (A) shall issue rules to carry out this section; 
                and
                    (B) may issue rules to establish a secondary market 
                for loans made under this section.
            (2) Notice.--The notice requirements of section 553(b) of 
        title 5, United States Code, shall not apply to any issuance of 
        rules under paragraph (1).
    (k) Authorization of Appropriations.--There is authorized to be 
appropriated $100,000,000,000 to the Administrator of the Small 
Business Administration to carry out this section.
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