[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3519 Introduced in Senate (IS)]

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116th CONGRESS
  2d Session
                                S. 3519

To authorize the Administrator of the Small Business Administration to 
  subsidize payments on loans guaranteed under the 7(a) and 504 loan 
programs or made using funds under the microloan program, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 18, 2020

 Mr. Coons (for himself, Mr. Cardin, Ms. Klobuchar, Ms. Duckworth, Mr. 
Wyden, Mr. Markey, Mrs. Shaheen, Mr. Tester, Mrs. Gillibrand, Mr. King, 
 Ms. Hirono, and Ms. Hassan) introduced the following bill; which was 
    read twice and referred to the Committee on Small Business and 
                            Entrepreneurship

_______________________________________________________________________

                                 A BILL


 
To authorize the Administrator of the Small Business Administration to 
  subsidize payments on loans guaranteed under the 7(a) and 504 loan 
programs or made using funds under the microloan program, 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. SUBSIDY FOR CERTAIN LOAN PAYMENTS.

    (a) Definitions.--In this section--
            (1) the terms ``Administration'' and ``Administrator'' mean 
        the Small Business Administration and the Administrator 
        thereof; and
            (2) the term ``covered loan'' means a loan that is--
                    (A) guaranteed by the Administration under--
                            (i) 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; or
                            (ii) title V of the Small Business 
                        Investment Act of 1958 (15 U.S.C. 695 et seq.); 
                        or
                    (B) made by an intermediary to a small business 
                concern (as defined in section 3 of the Small Business 
                Act (15 U.S.C. 632)) using loans or grants received 
                under section 7(m) of the Small Business Act (15 U.S.C. 
                636(m)).
    (b) Sense of Congress.--It is the sense of Congress that--
            (1) all borrowers are adversely affected by COVID-19;
            (2) relief payments by the Administration are appropriate 
        for all borrowers; and
            (3) in addition to the relief provided under this Act, the 
        Administration should encourage lenders to provide payment 
        deferments, when appropriate, and to extend the maturity of 
        covered loans, so as to avoid balloon payments or any 
        requirement for increases in debt payments resulting from 
        deferments provided by lenders during the period of the 
        national emergency declared by the President under the National 
        Emergencies Act (50 U.S.C. 1601 et seq.) with respect to the 
        Coronavirus Disease 2019 (COVID-19).
    (c) Principal and Interest Payments.--
            (1) In general.--The Administrator shall pay the principal, 
        interest, and any associated fees that are owed on a covered 
        loan in a regular servicing status--
                    (A) with respect to a covered loan made before the 
                date of enactment of this Act and not on deferment, for 
                the 6-month period beginning with the next payment due 
                on the covered loan;
                    (B) with respect to a covered loan made before the 
                date of enactment of this Act and on deferment, for the 
                6-month period beginning with the next payment due on 
                the covered loan after the deferment period; and
                    (C) with respect to a covered loan made during the 
                period beginning on the date of enactment of this Act 
                and ending on the date that is 6 months after such date 
                of enactment, for the 6-month period beginning with the 
                first payment due on the covered loan.
            (2) Timing of payment.--The Administrator shall begin 
        making payments under paragraph (1) on a covered loan not later 
        than 30 days after the date on which the first such payment is 
        due.
            (3) Application of payment.--Any payment made by the 
        Administrator under paragraph (1) shall be applied to the 
        covered loan such that the borrower is relieved of the 
        obligation to pay that amount.
    (d) Other Requirements.--The Administrator shall--
            (1) communicate and coordinate with the Federal Deposit 
        Insurance Corporation, the Office of the Comptroller of the 
        Currency, and State bank regulators to encourage those entities 
        to not require lenders to increase their reserves on account of 
        receiving payments made by the Administrator under subsection 
        (c);
            (2) waive statutory limits on maximum loan maturities for 
        any covered loan durations where the lender provides a deferral 
        and extends the maturity of covered loans during the 1-year 
        period following the date of enactment of this Act; and
            (3) when necessary to provide more time because of the 
        potential of higher volumes, travel restrictions, and the 
        inability to access some properties during the COVID-19 
        pandemic, extend lender site visit requirements to--
                    (A) not more than 60 days (which may be extended at 
                the discretion of the Administration) after the 
                occurrence of an adverse event, other than a payment 
                default, causing a loan to be classified as in 
                liquidation; and
                    (B) not more than 90 days after a payment default.
    (e) Rule of Construction.--Nothing in this section may be construed 
to limit the authority of the Administrator to make payments pursuant 
to subsection (c) with respect to a covered loan solely because the 
covered loan has been sold in the secondary market.
    (f) Authorization of Appropriations.--There is authorized to be 
appropriated to the Administrator $16,800,000,000 to carry out this 
section.
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