Disaster Loan Forgiveness Act

Bill: 118-hr-8581
Sponsor: full_name: Rep. Brownley, Julia [D-CA-26]
Introduced: 2024-05-31
Policy area: Commerce
Latest action: action_date: 2024-05-31
text: Referred to the House Committee on Small Business.

Summaries:

tv_txt: I 118th CONGRESS 2d Session H. R. 8581 IN THE HOUSE OF REPRESENTATIVES May 31, 2024 Ms. Brownley introduced the following bill; which was referred to the Committee on Small Business A BILL To amend the Small Business Act to provide for cancellation or repayment for certain Small Business Administration disaster loans, and for other purposes.

1. Short title This Act may be cited as the Disaster Loan Forgiveness Act . 2. Cancellation or repayment for certain Small Business Administration disaster loans Section 7(b) of the Small Business Act ( 15 U.S.C. 636(b) ) is amended— (1) by redesignating the second paragraph (16) (relating to statute of limitations) as paragraph (17); and (2) by inserting after paragraph (17), as so redesignated, the following new paragraph: (17) Cancellation or repayment for certain loans (A) In general The Administrator may cancel or repay an amount described under subparagraph (B) of the balance of interest and principal due on a loan made under paragraph (1)(A) for a borrower described in such subparagraph. (B) Amounts The amounts described under this paragraph are as follows: (i) With respect to borrower who is an individual— (I) with an income less than or equal to 400 percent of the poverty line applicable to the borrower's family size as determined in accordance with section 673(2) of the Community Services Block Grant Act, 100 percent of such balance; and (II) with an income greater than 400 percent of such poverty line and less than $250,000, 50 percent of such balance. (ii) With respect to a borrower that is a small business concern or a small nonprofit organization (as defined by the Administrator), not more than 50 percent of such balance. .