Sec. 15. Business stabilization direct loan program
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In this section, the term eligible borrower means a small business concern that is located in the United States (as defined in section 4(a) of the Small Business Act ( 15 U.S.C. 633(a) )) with a confirmed or presumed positive case of COVID–19. The Administrator shall carry out a program to make loans directly to eligible borrowers. In addition to the use of loan proceeds permitted under section 7(a) of the Small Business Act ( 15 U.S.C. 636(a) ), loans made under this section may be used for the following purposes:
To make periodic payments of principal and interest, for a period not to exceed 12 months, on a loan or a loan guarantee made to an eligible borrower that meets the eligibility standards of such section 7(a). To provide benefits to employees of the eligible borrower, including group life insurance, disability insurance, sick leave, annual leave, educational benefits, paid family leave, or retirement benefits, including a pension plan or individual retirement account. To pay wages to employees of the eligible borrower, and related State and Federal payroll taxes, except that loan proceeds may not be used to pay amounts under a garnishment order issued by an agency of a State or Federal Government.
To provide technology, hardware, or software for a shift to telework or remote work for employees of the eligible borrower to enable continuity of operations. To pay rent or utilities due or owed on any place of business of the eligible borrower. To refinance an existing debt, including interest, in an amount not to exceed 50 percent of the amount of the debt. To provide floor plan financing or other revolving line of credit. To pay past-due Federal, State, or local payroll taxes, sales taxes, or other similar taxes that are required to be collected by the eligible borrower and held in trust on behalf of a Federal, State, or local government entity.
To provide employees and patrons of the eligible borrower with the necessary items specified by any public health authority to mitigate the spread of COVID–19. Loans made under this section may not exceed $2,500,000. Not less than 10 percent, but not more than 20 percent, of the proceeds of a loan made under this section shall be disbursed not later than 5 calendar days after a loan is approved under this section. Loans made under this section shall be for a term of 10 years, and an eligible borrower shall not be required to repay such loan during the 12-month period beginning on the date of disbursement of the loan.
The Administrator may not charge any interest or fees for a loan made under this section. The Administrator— shall not decline to make a loan under this section to an otherwise eligible borrower due solely to inadequate collateral; and shall accept any available collateral, including subordinated liens, to secure a loan made under this section. If an eligible borrower that receives loan proceeds under this section demonstrates to the Administrator that the number of employees of the eligible borrower on December 31, 2021, is greater than or equal to the number of employees of the eligible borrower on December 31, 2019, the Administrator shall forgive not more than 50 percent of the outstanding principal on such loan.
Except as provided in paragraph (2), the Administrator may not make a loan under this section after September 30, 2022. The Administrator may extend authority to make loans under this section by an additional 6 months by notifying Congress, in writing, within 10 calendar days before any extension. In issuing rules to carry out this section under section 25, the Administrator may issue rules to establish a secondary market for loans made under this section. There is authorized to be appropriated to the Administrator of the Small Business Administration such sums as may be necessary to pay for the cost (as defined in section 502 of the Congressional Budget Act of 1974 ( 2 U.S.C. 661a )) of making $100,000,000,000 in direct loans under this section.
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