EIDL Relief Act

I 118TH CONGRESS 1ST SESSION H. R. 2727 To require the Administrator of the Small Business Administration to modify the interest rate for eligible loans made to borrowers experiencing short- term financial challenges, and for other purposes. IN THE HOUSE OF REPRESENTATIVES APRIL 19, 2023 Ms. STRICKLAND (for herself, Ms. CLARKE of New York, Mr. GRIJALVA, Mr. CARSON, and Mr. PAYNE) introduced the following bill; which was re- ferred to the Committee on Small Business A BILL To require the Administrator of the Small Business Adminis- tration to modify the interest rate for eligible loans made to borrowers experiencing short-term financial challenges, 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 ‘‘EIDL Relief Act’’. 4 VerDate Sep 11 2014 00:45 Apr 26, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2727.IH H2727 pbinns on DSKJLVW7X2PROD with $$_JOB 2 •HR 2727 IH SEC. 2. MODIFICATION TO INTEREST RATE FOR ELIGIBLE 1 LOANS MADE TO BORROWERS EXPERI- 2 ENCING SHORT-TERM FINANCIAL CHAL- 3 LENGES. 4 (a) IN GENERAL.—Notwithstanding section 7(d)(5) 5 of the Small Business Act (15 U.S.C. 636(d)(5)), the Ad- 6 ministrator shall carry out a program under which, during 7 the 12-month period beginning on the date of the enact- 8 ment of this Act— 9 (1) the interest rate on the Federal share of an 10 eligible loan made to an eligible borrower is zero per- 11 cent; and 12 (2) the monthly payment for such eligible loan 13 shall be the greater of— 14 (A) an amount equal to 10 percent of the 15 principal for such eligible loan; or 16 (B) $25. 17 (b) APPLICABILITY.—The requirements of this sec- 18 tion shall apply with respect to any interest due on an 19 eligible loan on or after the date of the enactment of this 20 Act. 21 (c) AUTHORIZATION OF APPROPRIATIONS.—There is 22 authorized to be appropriated to the Administrator of the 23 Small Business Administration such sums as may be nec- 24 essary to carry out this section. 25 (d) DEFINITIONS.—In this Act: 26 VerDate Sep 11 2014 00:45 Apr 26, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2727.IH H2727 pbinns on DSKJLVW7X2PROD with $$_JOB 3 •HR 2727 IH (1) COVERED PERIOD.—The term ‘‘covered pe- 1 riod’’ has the meaning given in section 1110(a) of 2 the CARES Act (15 U.S.C. 9009(a)). 3 (2) ELIGIBLE BORROWER.—The term ‘‘eligible 4 borrower’’ means a recipient of an eligible loan, if 5 the Administrator has determined— 6 (A) that such recipient is experiencing 7 short-term financial challenges; and 8 (B) participation in the program described 9 in subsection (a) is necessary for such recipient 10 to avoid severe financial hardship. 11 (3) ELIGIBLE LOAN.—The term ‘‘eligible loan’’ 12 means a loan made under section 7(b)(2) of the 13 Small Business Act (15 U.S.C. 636(b)(2)) in re- 14 sponse to COVID–19 during the covered period. 15 Æ VerDate Sep 11 2014 00:45 Apr 26, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\H2727.IH H2727 pbinns on DSKJLVW7X2PROD with $$_JOB