Small Business Access to Recovery Capital Act

II 117TH CONGRESS 1ST SESSION S. 174 To modify the 7(a) loan guaranty program of the Small Business Administration, and for other purposes. IN THE SENATE OF THE UNITED STATES FEBRUARY 2, 2021 Mr. RUBIO (for himself, Mr. RISCH, and Ms. COLLINS) introduced the fol- lowing bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship A BILL To modify the 7(a) loan guaranty program of the Small Business Administration, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Small Business Access 4 to Recovery Capital Act’’. 5 SEC. 2. CHANGES TO THE 7(a) LOAN GUARANTY PROGRAM. 6 (a) FEE WAIVER.—During the 1-year period fol- 7 lowing the date of enactment of this Act, and to the extent 8 that the cost of such elimination or reduction of fees is 9 offset by appropriations, with respect to each loan guaran- 10 VerDate Sep 11 2014 20:50 Feb 14, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S174.IS S174 pamtmann on DSKBC07HB2PROD with BILLS 2 •S 174 IS teed under section 7(a) of the Small Business Act (15 1 U.S.C. 636(a))— 2 (1) in lieu of the fee otherwise applicable under 3 section 7(a)(23)(A) of the Small Business Act (15 4 U.S.C. 636(a)(23)(A)), the Administrator shall col- 5 lect no fee or reduce fees to the maximum extent 6 possible; and 7 (2) for which the application is approved on or 8 after the date of enactment of this Act, the Adminis- 9 trator shall, in lieu of the fee otherwise applicable 10 under section 7(a)(18)(A) of the Small Business Act 11 (15 U.S.C. 636(a)(18)(A)), collect no fee or reduce 12 fees to the maximum extent possible. 13 (b) GUARANTEE AMOUNT.— 14 (1) IN GENERAL.—Section 7(a)(2) of the Small 15 Business Act (15 U.S.C. 636(a)(2)), as amended by 16 section 326(a)(1) of the Economic Aid to Hard-Hit 17 Small Businesses, Nonprofits, and Venues Act, is 18 amended— 19 (A) in subparagraph (A)— 20 (i) by striking ‘‘(E), and (F)’’ and in- 21 serting ‘‘and (E),’’; and 22 (ii) by striking ‘‘90 percent’’ and in- 23 serting ‘‘95 percent’’; 24 VerDate Sep 11 2014 20:50 Feb 14, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S174.IS S174 pamtmann on DSKBC07HB2PROD with BILLS 3 •S 174 IS (B) by striking subparagraphs (D) and (E) 1 and inserting the following: 2 ‘‘(D) PARTICIPATION UNDER THE EX- 3 PRESS LOAN PROGRAM.—In an agreement to 4 participate in a loan on a deferred basis under 5 paragraph (31), the participation by the Admin- 6 istration shall be equal to— 7 ‘‘(i) 75 percent of the balance of the 8 financing outstanding at the time of dis- 9 bursement of the loan, if such balance ex- 10 ceeds $150,000; or 11 ‘‘(ii) 85 percent of the balance of the 12 financing outstanding at the time of dis- 13 bursement of the loan, if such balance is 14 less than or equal to $150,000.’’; and 15 (C) by redesignating subparagraph (F) as 16 subparagraph (E). 17 (2) PROSPECTIVE REPEAL.—Effective 1 year 18 after the date of enactment of this Act, section 19 7(a)(2) of the Small Business Act (15 U.S.C. 20 636(a)(2)) is amended— 21 (A) by striking subparagraph (A) and in- 22 serting the following: 23 ‘‘(A) IN GENERAL.—Except as provided in 24 subparagraphs (B), (D), (E), and (F), in an 25 VerDate Sep 11 2014 20:50 Feb 14, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S174.IS S174 pamtmann on DSKBC07HB2PROD with BILLS 4 •S 174 IS agreement to participate in a loan on a deferred 1 basis under this subsection (including a loan 2 made under the Preferred Lenders Program), 3 such participation by the Administrator shall be 4 equal to— 5 ‘‘(i) 75 percent of the balance of the 6 financing outstanding at the time of dis- 7 bursement of the loan, if such balance ex- 8 ceeds $150,000; or 9 ‘‘(ii) 85 percent of the balance of the 10 financing outstanding at the time of dis- 11 bursement of the loan, if such balance is 12 less than or equal to $150,000.’’; 13 (B) by redesignating subparagraph (E) as 14 subparagraph (F); and 15 (C) by striking subparagraph (D) and in- 16 serting the following: 17 ‘‘(D) PARTICIPATION UNDER EXPORT 18 WORKING CAPITAL PROGRAM.—In an agreement 19 to participate in a loan on a deferred basis 20 under the Export Working Capital Program es- 21 tablished pursuant to paragraph (14)(A), such 22 participation by the Administration shall be 90 23 percent. 24 VerDate Sep 11 2014 20:50 Feb 14, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S174.IS S174 pamtmann on DSKBC07HB2PROD with BILLS 5 •S 174 IS ‘‘(E) PARTICIPATION IN INTERNATIONAL 1 TRADE LOAN.—In an agreement to participate 2 in a loan on a deferred basis under paragraph 3 (16), the participation by the Administration 4 may not exceed 90 percent.’’. 5 (3) REPEAL OF OTHER PROSPECTIVE AMEND- 6 MENT.—Section 326(a)(2) of the the Economic Aid 7 to Hard-Hit Small Businesses, Nonprofits, and 8 Venues Act is repealed. 9 (c) MAXIMUM LOAN AMOUNT.— 10 (1) IN GENERAL.—Section 7(a)(3) of the Small 11 Business Act (15 U.S.C. 636(a)(3)) is amended— 12 (A) in subparagraph (A)— 13 (i) by striking ‘‘$3,750,000’’ and in- 14 serting ‘‘$9,500,000’’; and 15 (ii) by striking ‘‘$5,000,000’’ and in- 16 serting ‘‘$10,000,000’’; and 17 (B) in subparagraph (B)— 18 (i) by striking ‘‘$4,500,000’’ and in- 19 serting ‘‘$9,500,000’’; and 20 (ii) by striking ‘‘$5,000,000’’ and in- 21 serting ‘‘$10,000,000’’. 22 (2) PROSPECTIVE REPEAL.—Effective 1 year 23 after the date of enactment of this Act, section 24 VerDate Sep 11 2014 20:50 Feb 14, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S174.IS S174 pamtmann on DSKBC07HB2PROD with BILLS 6 •S 174 IS 7(a)(3) of the Small Business Act (15 U.S.C. 1 636(a)(3)) is amended— 2 (A) in subparagraph (A)— 3 (i) by striking ‘‘$9,500,000’’ and in- 4 serting ‘‘$3,750,000’’; and 5 (ii) by striking ‘‘$10,000,000’’ and in- 6 serting ‘‘$5,000,000’’; and 7 (B) in subparagraph (B)— 8 (i) by striking ‘‘$9,500,000’’ and in- 9 serting ‘‘$4,500,000’’; and 10 (ii) by striking ‘‘$10,000,000’’ and in- 11 serting ‘‘$5,000,000’’. 12 (d) COVID–19 GUIDANCE.—Not later than 10 days 13 after the date of enactment of this Act, the Administrator 14 shall issue guidance that— 15 (1) temporarily updates the standard operating 16 procedures of the Administration to provide require- 17 ments for appropriate lending given the economic 18 conditions and considerations as of the date of en- 19 actment of this Act; and 20 (2) shall be utilized with respect to all approval 21 and subsequent actions taken on loans made under 22 such section 7(a) during the 1-year period following 23 the date of enactment of this Act. 24 Æ VerDate Sep 11 2014 20:50 Feb 14, 2021 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6301 E:\BILLS\S174.IS S174 pamtmann on DSKBC07HB2PROD with BILLS