[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8376 Introduced in House (IH)]
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116th CONGRESS
2d Session
H. R. 8376
To improve the debt relief program under the CARES Act, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 24, 2020
Mr. Delgado introduced the following bill; which was referred to the
Committee on Small Business, and in addition to the Committee on Ways
and Means, for a period to be subsequently determined by the Speaker,
in each case for consideration of such provisions as fall within the
jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To improve the debt relief program under the CARES Act, 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 Debt Relief Extension
Act of 2020''.
SEC. 2. SUBSIDY FOR CERTAIN LOAN PAYMENTS.
(a) In General.--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 ``, without regard to the
date on which the covered loan is fully
disbursed and subject to availability of
funds'' after ``status'';
(ii) by amending subparagraphs (A) and (B)
to read as follows:
``(A) with respect to a covered loan approved by
the Administration before the date of enactment of this
Act and not on deferment--
``(i) except as provided in clauses (ii)
and (iii), for the 6-month period beginning
with the next payment due on the covered loan
after the covered loan is fully disbursed;
``(ii) for the 11-month period beginning
with the next payment due on the covered loan
after the covered loan is fully disbursed, with
respect to a covered loan that--
``(I) is described in subsection
(a)(1)(B) or is a loan guaranteed by
the Administration under section 7(a)
of the Small Business Act (15 U.S.C.
636(a)) other than a loan described in
clause (i) or (ii) of subsection
(a)(1)(A); and
``(II) is made to a borrower
operating primarily in an industry
other than an industry that is assigned
a North American Industry
Classification System code beginning
with 61, 71, or 72; and
``(iii) for the 18-month period beginning
with the next payment due on the covered loan
after the covered loan is fully disbursed, with
respect to--
``(I) a covered loan described in
paragraph (1)(A)(i) or paragraph (2) of
subsection (a); or
``(II) any covered loan made to a
borrower operating primarily in an
industry that is assigned--
``(aa) a North American
Industry Classification System
code beginning with 61, 71, or
72; or
``(bb) the North American
Industry Classification System
Code 485510;
``(B) with respect to a covered loan approved by
the Administration before the date of enactment of this
Act and on deferment--
``(i) except as provided in clauses (ii)
and (iii), for the 6-month period beginning
with the next payment due on the covered loan
after the deferment period and after the
covered loan is fully disbursed;
``(ii) for the 11-month period beginning
with the next payment due on the covered loan
after the deferment period and after the
covered loan is fully disbursed, with respect
to a covered loan described in subclause (I) or
(II) of subparagraph (A)(ii); and
``(iii) for the 18-month period beginning
with the next payment due on the covered loan
after the deferment period and after the
covered loan is fully disbursed, with respect
to a covered loan described in subclause (I) or
(II) of subparagraph (A)(iii); and''; and
(iii) in subparagraph (C)--
(I) by striking ``covered loan
made'' and inserting ``covered loan
approved by the Administration'';
(II) by striking ``6 months after''
and inserting ``18 months after'';
(III) by inserting ``(or, for a
covered loan made by an intermediary to
a small business concern using loans or
grants received under section 7(m) of
the Small Business Act (15 U.S.C.
636(m)) or guaranteed by the
Administration under the Community
Advantage Pilot Program of the
Administration, for the 12-month
period)'' after ``6-month period''; and
(IV) by inserting ``after the
covered loan is fully disbursed'' after
``due on the covered loan''; and
(B) by adding at the end the following:
``(4) Additional provisions for new loans.--With respect to
a loan described in paragraph (1)(C)--
``(A) the Administrator may further extend the 18-
month period described in paragraph (1)(C) if there are
sufficient funds to continue those payments; and
``(B) during the underwriting process, a lender of
such a loan may consider the payments under this
section as part of a comprehensive review to determine
the ability to repay over the entire period of maturity
of the loan.
``(5) Eligibility.--Eligibility for a covered loan to
receive such payments of principal, interest, and any
associated fees under this subsection shall be based on the
date on which the covered loan is approved by the
Administration.
``(6) Authority to revise extensions.--
``(A) In general.--As part of preparing the reports
under subsection (i)(5) that are required to be
submitted not later than January 15, 2021, and not
later than June 15, 2021, the Administrator conduct an
evaluation of whether amounts made available to make
payments under this subsection are sufficient to make
the payments for the period described in paragraph (1).
``(B) Plan.--If the Administrator determines under
subparagraph (A) that the amounts made available to
make payments under this subsection are insufficient,
the Administrator shall--
``(i) develop a plan to proportionally
reduce the number of months provided for each
period described in paragraph (1), while
ensuring all amounts made available to make
payments under this subsection are fully
expended; and
``(ii) before taking action under the plan
developed under clause (i), include in the
applicable report under subsection (i)(5) the
plan and the data that informs the plan.
``(7) Rule of construction.--Nothing in this subsection
shall preclude a borrower from receiving full payments of
principal, interest, and any associated fees as authorized by
subsection.'';
(2) by redesignating subsection (f) as subsection (k); and
(3) by inserting after subsection (e) the following:
``(f) Eligibility for New Loans.--For each individual lending
program under this section, the Administrator may establish a minimum
loan maturity period, taking into consideration the normal underwriting
requirements for each such program, with the goal of preventing abuse
under the program.
``(g) Limitation on Assistance.--A borrower may not receive
assistance under subsection (c) for more than 1 covered loan of the
borrower described in paragraph (1)(C) of that subsection.
``(h) Taxability.--For purposes of the Internal Revenue Code of
1986--
``(1) any payment made under subsection (c) shall be
treated as paid by the person on whose behalf such payment is
made;
``(2) no amount shall be included in the gross income of
the borrower by reason of a payment made under subsection (c);
and
``(3) no deduction shall be denied or reduced, no tax
attribute shall be reduced, and no basis increase shall be
denied, by reason of the exclusion from gross income provided
by paragraph (2).
``(i) Reporting and Outreach.--
``(1) Updated information.--
``(A) In general.--Not later than 7 days after the
date of enactment of the Small Business Debt Relief
Extension Act of 2020, the Administrator shall make
publicly available information regarding the
modifications to the assistance provided under this
section under the amendments made by such Act.
``(B) Guidance.--Not later than 14 days after the
date of enactment of the Small Business Debt Relief
Extension Act of 2020, the Administrator shall issue
guidance on implementing the modifications to the
assistance provided under this section under the
amendments made by such Act.
``(2) Publication of list.--Not later than 14 days after
the date of enactment of the Small Business Debt Relief
Extension Act of 2020, the Administrator shall transmit to each
lender of a covered loan a list of each borrower of a covered
loan that includes the North American Industry Classification
System code assigned to the borrower, based on the records of
the Administration, to assist the lenders in identifying which
borrowers qualify for an extension of payments under subsection
(c).
``(3) Education and outreach.--The Administrator shall
provide education, outreach, and communication to lenders,
borrowers, district offices, and resource partners of the
Administration in order to ensure full and proper compliance
with this section, encourage broad participation with respect
to covered loans that have not yet been approved by the
Administrator, and help lenders transition borrowers from
subsidy payments under this section directly to a deferral when
suitable for the borrower.
``(4) Notification.--Not later than 30 days after the date
of enactment of the Small Business Debt Relief Extension Act of
2020, the Administrator shall mail a letter to each borrower of
a covered loan that includes--
``(A) an overview of assistance provided under this
section;
``(B) the rights of the borrower to receive that
assistance;
``(C) how to seek recourse with the Administrator
or the lender of the covered loan if the borrower has
not received that assistance; and
``(D) the rights of the borrower to request a loan
deferral from a lender, and guidance on how to do
successfully transition directly to a loan deferral
once subsidy payments under this section are concluded.
``(5) Monthly reporting.--Not later than the 15th of each
month beginning after the date of enactment of the Small
Business Debt Relief Extension Act of 2020, the Administrator
shall submit to Congress a report on assistance provided under
this section, which shall include--
``(A) monthly and cumulative data on payments made
under this section as of the date of the report,
including a breakdown by--
``(i) the number of participating
borrowers;
``(ii) the volume of payments made for each
type of covered loan; and
``(iii) the volume of payments made for
covered loans made before the date of enactment
of this Act and loans made after such date of
enactment;
``(B) the names of any lenders of covered loans
that have not submitted information on the covered
loans to the Administrator during the preceding month;
and
``(C) an update on the education and outreach
activities of the Administration carried out under
paragraph (3).''.
(b) Effective Date.--The amendments made by this section shall
apply as if included in the enactment of section 1112 of the CARES Act
(15 U.S.C. 9011).
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