II 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. GILLI- BRAND, Mr. KING, Ms. HIRONO, and Ms. HASSAN) introduced the fol- lowing 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 Ad- ministration 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 pur- poses. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SUBSIDY FOR CERTAIN LOAN PAYMENTS. 3 (a) DEFINITIONS.—In this section— 4 VerDate Sep 11 2014 23:14 Apr 01, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S3519.IS S3519 kjohnson on DSK79L0C42PROD with BILLS 2 •S 3519 IS (1) the terms ‘‘Administration’’ and ‘‘Adminis- 1 trator’’ mean the Small Business Administration 2 and the Administrator thereof; and 3 (2) the term ‘‘covered loan’’ means a loan that 4 is— 5 (A) guaranteed by the Administration 6 under— 7 (i) section 7(a) of the Small Business 8 Act (15 U.S.C. 636(a)), including a loan 9 made under the Community Advantage 10 Pilot Program of the Administration; or 11 (ii) title V of the Small Business In- 12 vestment Act of 1958 (15 U.S.C. 695 et 13 seq.); or 14 (B) made by an intermediary to a small 15 business concern (as defined in section 3 of the 16 Small Business Act (15 U.S.C. 632)) using 17 loans or grants received under section 7(m) of 18 the Small Business Act (15 U.S.C. 636(m)). 19 (b) SENSE OF CONGRESS.—It is the sense of Con- 20 gress that— 21 (1) all borrowers are adversely affected by 22 COVID–19; 23 (2) relief payments by the Administration are 24 appropriate for all borrowers; and 25 VerDate Sep 11 2014 23:14 Apr 01, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S3519.IS S3519 kjohnson on DSK79L0C42PROD with BILLS 3 •S 3519 IS (3) in addition to the relief provided under this 1 Act, the Administration should encourage lenders to 2 provide payment deferments, when appropriate, and 3 to extend the maturity of covered loans, so as to 4 avoid balloon payments or any requirement for in- 5 creases in debt payments resulting from deferments 6 provided by lenders during the period of the national 7 emergency declared by the President under the Na- 8 tional Emergencies Act (50 U.S.C. 1601 et seq.) 9 with respect to the Coronavirus Disease 2019 10 (COVID–19). 11 (c) PRINCIPAL AND INTEREST PAYMENTS.— 12 (1) IN GENERAL.—The Administrator shall pay 13 the principal, interest, and any associated fees that 14 are owed on a covered loan in a regular servicing 15 status— 16 (A) with respect to a covered loan made 17 before the date of enactment of this Act and 18 not on deferment, for the 6-month period begin- 19 ning with the next payment due on the covered 20 loan; 21 (B) with respect to a covered loan made 22 before the date of enactment of this Act and on 23 deferment, for the 6-month period beginning 24 VerDate Sep 11 2014 23:14 Apr 01, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S3519.IS S3519 kjohnson on DSK79L0C42PROD with BILLS 4 •S 3519 IS with the next payment due on the covered loan 1 after the deferment period; and 2 (C) with respect to a covered loan made 3 during the period beginning on the date of en- 4 actment of this Act and ending on the date that 5 is 6 months after such date of enactment, for 6 the 6-month period beginning with the first 7 payment due on the covered loan. 8 (2) TIMING OF PAYMENT.—The Administrator 9 shall begin making payments under paragraph (1) 10 on a covered loan not later than 30 days after the 11 date on which the first such payment is due. 12 (3) APPLICATION OF PAYMENT.—Any payment 13 made by the Administrator under paragraph (1) 14 shall be applied to the covered loan such that the 15 borrower is relieved of the obligation to pay that 16 amount. 17 (d) OTHER REQUIREMENTS.—The Administrator 18 shall— 19 (1) communicate and coordinate with the Fed- 20 eral Deposit Insurance Corporation, the Office of the 21 Comptroller of the Currency, and State bank regu- 22 lators to encourage those entities to not require 23 lenders to increase their reserves on account of re- 24 VerDate Sep 11 2014 23:14 Apr 01, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S3519.IS S3519 kjohnson on DSK79L0C42PROD with BILLS 5 •S 3519 IS ceiving payments made by the Administrator under 1 subsection (c); 2 (2) waive statutory limits on maximum loan 3 maturities for any covered loan durations where the 4 lender provides a deferral and extends the maturity 5 of covered loans during the 1-year period following 6 the date of enactment of this Act; and 7 (3) when necessary to provide more time be- 8 cause of the potential of higher volumes, travel re- 9 strictions, and the inability to access some properties 10 during the COVID–19 pandemic, extend lender site 11 visit requirements to— 12 (A) not more than 60 days (which may be 13 extended at the discretion of the Administra- 14 tion) after the occurrence of an adverse event, 15 other than a payment default, causing a loan to 16 be classified as in liquidation; and 17 (B) not more than 90 days after a pay- 18 ment default. 19 (e) RULE OF CONSTRUCTION.—Nothing in this sec- 20 tion may be construed to limit the authority of the Admin- 21 istrator to make payments pursuant to subsection (c) with 22 respect to a covered loan solely because the covered loan 23 has been sold in the secondary market. 24 VerDate Sep 11 2014 23:14 Apr 01, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S3519.IS S3519 kjohnson on DSK79L0C42PROD with BILLS 6 •S 3519 IS (f) AUTHORIZATION OF APPROPRIATIONS.—There is 1 authorized to be appropriated to the Administrator 2 $16,800,000,000 to carry out this section. 3 Æ VerDate Sep 11 2014 23:14 Apr 01, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6301 E:\BILLS\S3519.IS S3519 kjohnson on DSK79L0C42PROD with BILLS