What This Bill Does
This bill stops the Small Business Administration (a government agency that helps small businesses) from pausing or canceling collection efforts on certain loans given out during COVID-19. Instead of the Small Business Administration handling these unpaid loans, it must send them to the Department of the Treasury (the federal agency that manages money) to decide what to do with them.
Who It Affects
The Small Business Administration and the Department of the Treasury. Businesses and individuals who borrowed money through the Paycheck Protection Program or economic injury disaster loans related to COVID-19 may also be affected if collection actions continue.
Key Provisions
* The Small Business Administration cannot stop, pause or end collection actions on certain COVID-19 related loans (Sec. 2(b)(1))
* The Small Business Administration must send claims about these loans to the Department of the Treasury, which keeps the power to decide whether to collect, pause or cancel them (Sec. 2(b)(2) and 2(c))
* The Small Business Administration Administrator must give monthly briefings to Congress about progress on collecting these loans and sending them to the Treasury (Sec. 2(d)(1))
* The Small Business Administration Administrator must testify once per year before Congress about how collection of these loans is being carried out (Sec. 2(d)(2))
What Changes
The Small Business Administration loses the ability to suspend or end collection actions on covered loans. The Department of the Treasury gains the responsibility to make final decisions about what happens with these claims.
Important Definitions
* Administrator: The head of the Small Business Administration (Sec. 2(a)(1))
* Covered loan: Paycheck Protection Program loans or economic injury disaster loans related to COVID-19 (Sec. 2(a)(2))
* Department: The Department of the Treasury (Sec. 2(a)(3))
Effective Date
Not specified in bill text
II
118TH CONGRESS
1ST SESSION
S. 1142
To prohibit the Small Business Administration from suspending collections
on Paycheck Protection Program loans and economic injury disaster
loans related to COVID–19.
IN THE SENATE OF THE UNITED STATES
MARCH 30, 2023
Ms. ERNST introduced the following bill; which was read twice and referred
to the Committee on Small Business and Entrepreneurship
A BILL
To prohibit the Small Business Administration from sus-
pending collections on Paycheck Protection Program
loans and economic injury disaster loans related to
COVID–19.
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 ‘‘SBA Collections Act
4
of 2023’’.
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SEC. 2. PROHIBITION ON SUSPENDING COLLECTIONS ON
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SBA LOANS RELATED TO COVID–19.
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(a) DEFINITIONS.—In this section:
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•S 1142 IS
(1) ADMINISTRATOR.—The term ‘‘Adminis-
1
trator’’ means the Administrator of the Small Busi-
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ness Administration.
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(2) COVERED LOAN.—The term ‘‘covered loan’’
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means—
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(A) a loan guaranteed under paragraph
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(36) or (37) of section 7(a) of the Small Busi-
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ness Act (15 U.S.C. 636(a)); and
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(B) a loan made under section 7(b)(2) of
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the Small Business Act (15 U.S.C. 636(b)(2))
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related to COVID–19.
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(3) DEPARTMENT.—The term ‘‘Department’’
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means the Department of the Treasury.
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(b) PROHIBITION OF THE ADMINISTRATOR.—
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(1) IN GENERAL.—The Administrator may not
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discharge, suspend, or end collection action on any
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claim related to a covered loan.
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(2) REFERRAL.—The Administrator shall refer
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to the Department any claim related to a covered
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loan for which the Administrator could use the au-
20
thorities provided in section 3711 of title 31, United
21
States Code, to discharge, suspend, or end that
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claim, but for the prohibition under paragraph (1).
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(c) DEPARTMENT OF TREASURY DETERMINATION.—
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The Department shall—
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•S 1142 IS
(1) retain the authorities provided in section
1
3711 of title 31, United States Code, or any similar
2
provision of law; and
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(2) render a final decision as to discharge, sus-
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pend, end, or make collection on a claim referred to
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the Department under subsection (b)(2).
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(d) BRIEFINGS AND TESTIMONY.—
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(1) MONTHLY BRIEFINGS.—Not later than 30
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days after the date of enactment of this Act, and
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every 30 days thereafter, the Administrator shall
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brief the Committee on Small Business and Entre-
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preneurship of the Senate and the Committee on
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Small Business of the House of Representatives on
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the progress of the Administrator in pursuing the
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collection of claims related to covered loans and
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transferring claims to the Department of the Treas-
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ury for collection in accordance with subchapter II
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of chapter 37 of title 31, United States Code.
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(2) TESTIMONY.—
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(A) IN
GENERAL.—The Administrator
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shall testify annually before the Committee on
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Small Business and Entrepreneurship of the
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Senate and the Committee on Small Business
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of the House of Representatives on the imple-
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•S 1142 IS
mentation of collections of claims related to cov-
1
ered loans.
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(B) NONDELEGATION.—The Administrator
3
may not delegate the responsibility under sub-
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paragraph (A) to any other individual.
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Æ
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