Bill > HR2727

This bill, known as the EIDL Relief Act, requires the Administrator of the Small Business Administration (SBA) to modify the interest rate for eligible loans made to borrowers experiencing short-term financial challenges due to the COVID-19 pandemic. Specifically, the bill sets the interest rate on the Federal share of these eligible loans at 0% and requires the monthly payment to be the greater of 10% of the principal or $25 for a 12-month period after the bill's enactment. The bill also authorizes the necessary appropriations for the SBA to carry out this program. An "eligible loan" refers to a loan made under Section 7(b)(2) of the Small Business Act in response to COVID-19 during the "covered period," which is defined in the CARES Act. An "eligible borrower" is a recipient of an eligible loan who is experiencing short-term financial challenges, and the SBA has determined that participation in the program is necessary to avoid severe financial hardship.