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Bill > HR6268


US HR6268

US HR6268
SBA Business Stabilization Direct Loan Program Act of 2020


summary

Introduced
03/12/2020
In Committee
03/12/2020
Crossed Over
Passed
Dead
12/31/2020

Introduced Session

116th Congress

Bill Summary

To establish a business stabilization direct loan program and the authority to establish a secondary market guarantee in the Small Business Administration, and for other purposes. This bill requires the Small Business Administration (SBA) to temporarily make loans directly to small businesses located in a U.S. state or territory with a confirmed or presumed positive case of COVID-19 (i.e., coronavirus disease 2019). A recipient of such a loan may use the funds to, among other things (1) make periodic payments of principal and interest on outstanding SBA loans; (2) provide benefits to employees such as disability insurance, sick leave, and paid family leave; (3) pay wages to employees; or (4) provide employees and patrons with the necessary items specified by a public health authority to mitigate the spread of the coronavirus. The SBA shall accept any available collateral to secure such a loan and shall not decline to make a loan to an otherwise eligible borrower due solely to inadequate collateral.

AI Summary

This bill, the SBA Business Stabilization Direct Loan Program Act of 2020, establishes a new direct loan program within the Small Business Administration (SBA) to provide assistance to small businesses located in states or territories with confirmed or presumed positive cases of COVID-19. The loans can be used for various purposes, including making payments on existing SBA loans, providing benefits to employees, paying wages, and purchasing technology to enable remote work. The loans have a maximum amount of $2.5 million, a 10-year term with no repayment required for the first 12 months, and no interest or fees charged by the SBA. The bill also allows the SBA to accept any available collateral, including subordinated liens, and authorizes appropriations of up to $25 billion to cover the cost of the loan program.

Committee Categories

Business and Industry

Sponsors (9)

Last Action

Referred to the House Committee on Small Business. (on 03/12/2020)

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