Small Business Disaster Loan Enhancement Act of 2020

II 116TH CONGRESS 2D SESSION S. 4167 To set the interest rate applicable to certain economic injury disaster loans, and for other purposes. IN THE SENATE OF THE UNITED STATES JULY 2, 2020 Mr. SCHATZ (for himself and Ms. CORTEZ MASTO) introduced the following bill; which was read twice and referred to the Committee on Small Busi- ness and Entrepreneurship A BILL To set the interest rate applicable to certain economic injury disaster loans, 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 Dis- 4 aster Loan Enhancement Act of 2020’’. 5 SEC. 2. ECONOMIC INJURY DISASTER LOANS. 6 (a) DEFINITIONS.—In this section, the terms ‘‘Ad- 7 ministration’’ and ‘‘Administrator’’ means the Adminis- 8 tration and the Administrator thereof. 9 VerDate Sep 11 2014 21:42 Jul 12, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S4167.IS S4167 pbinns on DSKJLVW7X2PROD with BILLS 2 •S 4167 IS (b) INTEREST RATE.—Notwithstanding any other 1 provision of law, any economic injury disaster loan made 2 under section 7(b)(2) of the Small Business Act (15 3 U.S.C. 636(b)(2)) during the period beginning on Feb- 4 ruary 15, 2020, and ending on December 31, 2020, shall 5 have an interest rate of not more than 1 percent. 6 (c) ADDITIONAL LOAN FOR EXISTING BOR- 7 ROWERS.— 8 (1) IN GENERAL.—A recipient of an economic 9 disaster injury loan made under section 7(b)(2) of 10 the Small Business Act (15 U.S.C. 636(b)(2)) dur- 11 ing the period beginning on February 15, 2020, and 12 ending on December 31, 2020, may submit to the 13 Administration an application for an additional 14 amount to increase in the amount of that loan, pro- 15 vided that the aggregate amount received under such 16 section by the recipient during that period shall be 17 not more than $2,000,000. 18 (2) CONSIDERATION.—In considering an appli- 19 cation submitted under paragraph (1), the Adminis- 20 trator shall only consider the financial need and abil- 21 ity to repay of the applicant. 22 (d) LOANS FOR NEW BORROWERS.—With respect to 23 an economic injury disaster loan made under section 24 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2)) 25 VerDate Sep 11 2014 21:42 Jul 12, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S4167.IS S4167 pbinns on DSKJLVW7X2PROD with BILLS 3 •S 4167 IS during the period beginning on the date of enactment of 1 this Act and ending on December 31, 2020— 2 (1) the Administrator shall not impose a max- 3 imum loan amount limit that is lower than 4 $2,000,000; and 5 (2) in determining the amount of the loan, the 6 Administrator shall only consider the financial need 7 and ability to repay of the applicant. 8 (e) EMERGENCY EIDL GRANTS.—Section 1110(e) of 9 division A of the CARES Act (Public Law 116–136) is 10 amended— 11 (1) in paragraph (1), by inserting ‘‘full’’ before 12 ‘‘amount’’; 13 (2) in paragraph (3)— 14 (A) by striking ‘‘The’’ and inserting the 15 following: 16 ‘‘(A) IN GENERAL.—Except as provided in 17 this paragraph, the’’; and 18 (B) by adding at the end the following: 19 ‘‘(B) ADDITIONAL AMOUNT.—A recipient 20 of an advance under this subsection of less than 21 the full amount requested may submit to the 22 Administrator a request for an additional 23 amount, provided that the aggregate amount 24 received shall be not more than $10,000 or, in 25 VerDate Sep 11 2014 21:42 Jul 12, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S4167.IS S4167 pbinns on DSKJLVW7X2PROD with BILLS 4 •S 4167 IS the case of an entity described in subparagraph 1 (C), not more than $25,000. 2 ‘‘(C) INCREASED AMOUNT FOR CERTAIN 3 APPLICANTS.— 4 ‘‘(i) IN GENERAL.—An eligible entity 5 described in paragraph (1) that suffered a 6 decline in gross receipts of not less than 50 7 percent during an 8-week period between 8 March 2, 2020, and December 31, 2020, 9 relative to a comparable 8-week period im- 10 mediately preceding March 2, 2020, or 11 during 2019 may request an advance of 12 not more than $25,000. 13 ‘‘(ii) DETERMINATION OF NEED.—In 14 determining the amount of the advance 15 under clause (i), the Administrator shall 16 only consider the financial need of the ap- 17 plicant.’’; and 18 (3) in paragraph (7), by striking 19 ‘‘$20,000,000,000’’ and inserting 20 ‘‘$40,000,000,000’’. 21 (f) APPROPRIATIONS.—Out of amounts in the Treas- 22 ury not otherwise appropriated, there is appropriated— 23 (1) to the Administration $80,000,000,000 to 24 carry out subsection (c); and 25 VerDate Sep 11 2014 21:42 Jul 12, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S4167.IS S4167 pbinns on DSKJLVW7X2PROD with BILLS 5 •S 4167 IS (2) for an additional amount for ‘‘Emergency 1 EIDL Grants’’ for the cost of emergency EIDL 2 grants authorized by section 1110 of division A of 3 the CARES Act (Public Law 116–136), 4 $20,000,000,000, to remain available until ex- 5 pended, to prevent, prepare for, and respond to 6 coronavirus, domestically or internationally. 7 (g) TRANSFER OF UNOBLIGATED PP AMOUNTS TO 8 EIDL ACCOUNT.—Any amounts appropriated for loans 9 made under section 7(a)(36) of the Small Business Act 10 (15 U.S.C. 636(a)(36)) that are unobligated as of August 11 8, 2020 shall be transferred to the appropriations account 12 under the heading ‘‘Small Business Administration—Dis- 13 aster Loans Program Account’’ and made available for the 14 purpose of carrying out section 7(b)(2) of the Small Busi- 15 ness Act (15 U.S.C. 636(b)(2)). 16 (h) EMERGENCY DESIGNATION.— 17 (1) IN GENERAL.—The amounts provided under 18 this section are designated as an emergency require- 19 ment pursuant to section 4(g) of the Statutory Pay- 20 As-You-Go Act of 2010 (2 U.S.C. 933(g)). 21 (2) DESIGNATION IN SENATE.—In the Senate, 22 this section is designated as an emergency require- 23 ment pursuant to section 4112(a) of H. Con. Res. 24 VerDate Sep 11 2014 21:42 Jul 12, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S4167.IS S4167 pbinns on DSKJLVW7X2PROD with BILLS 6 •S 4167 IS 71 (115th Congress), the concurrent resolution on 1 the budget for fiscal year 2018. 2 Æ VerDate Sep 11 2014 21:42 Jul 12, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6301 E:\BILLS\S4167.IS S4167 pbinns on DSKJLVW7X2PROD with BILLS