Small Business Access to Recovery Capital Act

II 116TH CONGRESS 2D SESSION S. 4817 To modify the 7(a) loan guaranty program of the Small Business Administration, and for other purposes. IN THE SENATE OF THE UNITED STATES OCTOBER 20 (legislative day, OCTOBER 19), 2020 Mr. RUBIO (for himself, Mr. RISCH, Ms. COLLINS, and Mr. HAWLEY) intro- duced the following bill; which was read twice and referred to the Com- mittee 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 21:46 Oct 28, 2020 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S4817.IS S4817 pbinns on DSKJLVW7X2PROD with BILLS 2 •S 4817 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)) is amended— 16 (A) in the matter preceding subparagraph 17 (A), by striking ‘‘(E), and (F)’’ and inserting 18 ‘‘and (E)’’; 19 (B) in subparagraph (A), by striking 20 ‘‘equal to—’’ and all that follows through the 21 end of the subparagraph and inserting ‘‘equal 22 to 95 percent of the balance of the financing 23 outstanding at the time of disbursement of the 24 loan.’’; 25 VerDate Sep 11 2014 21:46 Oct 28, 2020 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S4817.IS S4817 pbinns on DSKJLVW7X2PROD with BILLS 3 •S 4817 IS (C) 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 (D) 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) in the matter preceding subparagraph 22 (A), by striking ‘‘and (E)’’ and inserting ‘‘(E), 23 and (F)’’; 24 VerDate Sep 11 2014 21:46 Oct 28, 2020 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S4817.IS S4817 pbinns on DSKJLVW7X2PROD with BILLS 4 •S 4817 IS (B) in subparagraph (A), by striking 1 ‘‘equal to 95 percent of the balance of financing 2 outstanding at the time of disbursement of the 3 loan.’’ and inserting ‘‘equal to— 4 ‘‘(i) 75 percent of the balance of the 5 financing outstanding at the time of dis- 6 bursement of the loan, if such balance ex- 7 ceeds $150,000; or 8 ‘‘(ii) 85 percent of the balance of the 9 financing outstanding at the time of dis- 10 bursement of the loan, if such balance is 11 less than or equal to $150,000.’’; 12 (C) by redesignating subparagraph (E) as 13 subparagraph (F); and 14 (D) by striking subparagraph (D) and in- 15 serting the following: 16 ‘‘(D) PARTICIPATION UNDER EXPORT 17 WORKING CAPITAL PROGRAM.—In an agreement 18 to participate in a loan on a deferred basis 19 under the Export Working Capital Program es- 20 tablished pursuant to paragraph (14)(A), such 21 participation by the Administration shall be 90 22 percent. 23 ‘‘(E) PARTICIPATION IN INTERNATIONAL 24 TRADE LOAN.—In an agreement to participate 25 VerDate Sep 11 2014 21:46 Oct 28, 2020 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S4817.IS S4817 pbinns on DSKJLVW7X2PROD with BILLS 5 •S 4817 IS in a loan on a deferred basis under paragraph 1 (16), the participation by the Administration 2 may not exceed 90 percent.’’. 3 (c) MAXIMUM LOAN AMOUNT.— 4 (1) IN GENERAL.—Section 7(a)(3) of the Small 5 Business Act (15 U.S.C. 636(a)(3)) is amended— 6 (A) in subparagraph (A)— 7 (i) by striking ‘‘$3,750,000’’ and in- 8 serting ‘‘$9,500,000’’; and 9 (ii) by striking ‘‘$5,000,000’’ and in- 10 serting ‘‘$10,000,000’’; and 11 (B) in subparagraph (B)— 12 (i) by striking ‘‘$4,500,000’’ and in- 13 serting ‘‘$9,500,000’’; and 14 (ii) by striking ‘‘$5,000,000’’ and in- 15 serting ‘‘$10,000,000’’. 16 (2) PROSPECTIVE REPEAL.—Effective 1 year 17 after the date of enactment of this Act, section 18 7(a)(3) of the Small Business Act (15 U.S.C. 19 636(a)(3)) is amended— 20 (A) in subparagraph (A)— 21 (i) by striking ‘‘$9,500,000’’ and in- 22 serting ‘‘$3,750,000’’; and 23 (ii) by striking ‘‘$10,000,000’’ and in- 24 serting ‘‘$5,000,000’’; and 25 VerDate Sep 11 2014 21:46 Oct 28, 2020 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S4817.IS S4817 pbinns on DSKJLVW7X2PROD with BILLS 6 •S 4817 IS (B) in subparagraph (B)— 1 (i) by striking ‘‘$9,500,000’’ and in- 2 serting ‘‘$4,500,000’’; and 3 (ii) by striking ‘‘$10,000,000’’ and in- 4 serting ‘‘$5,000,000’’. 5 (d) COVID–19 GUIDANCE.—Not later than 10 days 6 after the date of enactment of this Act, the Administrator 7 shall issue guidance that— 8 (1) temporarily updates the standard operating 9 procedures of the Administration to provide require- 10 ments for appropriate lending given the economic 11 conditions and considerations as of the date of en- 12 actment of this Act; and 13 (2) shall be utilized with respect to all approval 14 and subsequent actions taken on loans made under 15 such section 7(a) during the 1-year period following 16 the date of enactment of this Act. 17 (e) EXTENSION OF SUBSIDY ON 7(a) LOAN PAY- 18 MENTS.—Section 1112 of the CARES Act (15 U.S.C. 19 9011) is amended— 20 (1) in subsection (c)— 21 (A) in paragraph (1)— 22 (i) in the matter preceding subpara- 23 graph (A), by inserting ‘‘or loan described 24 VerDate Sep 11 2014 21:46 Oct 28, 2020 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S4817.IS S4817 pbinns on DSKJLVW7X2PROD with BILLS 7 •S 4817 IS in subparagraph (D)’’ after ‘‘covered 1 loan’’; 2 (ii) in subparagraph (B), by striking 3 ‘‘and’’ at the end; 4 (iii) in subparagraph (C), by striking 5 the period at the end and inserting ‘‘; 6 and’’; and 7 (iv) by adding at the end the fol- 8 lowing: 9 ‘‘(D) with respect to a loan that is guaran- 10 teed by the Administration under section 7(a) 11 of the Small Business Act (15 U.S.C. 636(a)), 12 including a loan made under the Community 13 Advantage Pilot Program of the Administration 14 and a loan made under paragraph (36) of such 15 section 7(a), that was made during the period 16 beginning on the date of enactment of this sub- 17 paragraph and ending on the date that is 1 18 year after such date of enactment, for the 1- 19 year period beginning with the first payment 20 due on the loan.’’; 21 (B) in paragraph (2), by inserting ‘‘or loan 22 described in paragraph (1)(D), as applicable,’’ 23 after ‘‘covered loan’’; and 24 VerDate Sep 11 2014 21:46 Oct 28, 2020 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S4817.IS S4817 pbinns on DSKJLVW7X2PROD with BILLS 8 •S 4817 IS (C) in paragraph (3), by inserting ‘‘or loan 1 described in paragraph (1)(D), as applicable,’’ 2 after ‘‘covered loan’’; 3 (2) in subsection (d)(2)— 4 (A) by striking ‘‘covered loan durations’’ 5 and inserting ‘‘the duration of any covered loan 6 or loan described in subsection (c)(1)(D)’’; and 7 (B) by inserting ‘‘or loans described in 8 subsection (c)(1)(D), as applicable,’’ after ‘‘cov- 9 ered loans’’; and 10 (3) in subsection (e)— 11 (A) by inserting ‘‘or loan described in sub- 12 section (c)(1)(D)’’ after ‘‘a covered loan’’; and 13 (B) by inserting ‘‘or loan described in sub- 14 section (c)(1)(D), as applicable,’’ after ‘‘the cov- 15 ered loan’’. 16 Æ VerDate Sep 11 2014 21:46 Oct 28, 2020 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6301 E:\BILLS\S4817.IS S4817 pbinns on DSKJLVW7X2PROD with BILLS