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Bill > HR6344


US HR6344

Expediting the EIDL Program Act of 2020


summary

Introduced
03/23/2020
In Committee
03/23/2020
Crossed Over
Passed
Dead
12/31/2020

Introduced Session

116th Congress

Bill Summary

To modify the economic injury disaster loan of the Small Business Administration in response to COVID-19, and for other purposes. This bill modifies the disbursement of economic injury disaster loans by the Small Business Administration (SBA) with respect to such loans made in response to COVID-19 (i.e., coronavirus disease 2019). Specifically, the bill authorizes the SBA to increase the amount of a disaster loan to a small business by 20% to cover costs related to continuity of operations and risk mitigation improvements. The bill also authorizes the SBA to make such loans to startups and to waive rules related to affiliation, and it requires the SBA to waive the personal guarantee requirement on such loans made to cooperatives. In addition, an applicant for a disaster loan may request an advance on such loan up to a specified amount, and they shall not be required to repay any amount of an advance if they are subsequently denied a disaster loan. The bill also authorizes the SBA to approve an applicant for a disaster loan that is below a certain amount based solely on the applicant's credit score and to use alternative methods to determine such applicant's ability to repay. Further, the bill establishes a maximum interest rate on a disaster loan based on an applicant's ability to obtain credit elsewhere, and it expands the qualifying events for which a disaster loan may be awarded to include emergencies involving federal primary responsibility.

AI Summary

This bill modifies the Economic Injury Disaster Loan (EIDL) program of the Small Business Administration (SBA) in response to COVID-19. It allows the SBA to make EIDL loans to startups, waive affiliation rules, and waive personal guarantee requirements for cooperatives. The bill also authorizes the SBA to provide advance EIDL loan amounts, approve small-dollar EIDL loans based solely on credit scores, and expand the qualifying events for EIDL loans to include certain federal emergencies. Additionally, the bill sets maximum interest rates for EIDL loans based on the applicant's ability to obtain credit elsewhere, and it allows the SBA to increase EIDL loan amounts by 20% to cover continuity-of-operations and risk mitigation improvements. Finally, the bill authorizes additional appropriations for the EIDL program.

Committee Categories

Business and Industry

Sponsors (1)

Last Action

Referred to the House Committee on Small Business. (on 03/23/2020)

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