Sec. 18. Small business intermediary lending program
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Section 7(l) of the Small Business Act ( 15 U.S.C. 636(l) ) is amended— in the subsection heading, by striking ; Pilot in paragraph (1)— in subparagraph (A), by striking and at the end; by redesignating subparagraph
(B)as subparagraph (C); by inserting after subparagraph
(A)the following: the term newly established small business concern means a small business concern that has been existence for not more than 2 years on the date on which a loan is made to the small business concern under the Program; ; in subparagraph (C), as so redesignated— by striking pilot ; and by striking the period at the end and inserting a semicolon; and by adding at the end the following: the term small business concern in an underserved market means a small business concern— that is located in— a low- to moderate-income community; a HUBZone; a community that has been designated as an empowerment zone or an enterprise community under section 1391 of the Internal Revenue Code of 1986; a community that has been designated as a promise zone by the Secretary of Housing and Urban Development; a community that has been designated as a qualified opportunity zone under section 1400Z–1 of the Internal Revenue Code of 1986; or a rural area; that has more than 50 percent of employees residing in a low- or moderate-income community; that is a startup or new business; owned and controlled by socially and economically disadvantaged individuals, including Black Americans, Hispanic Americans, Native Americans, Asian Pacific Americans, and other minorities; owned and controlled by women; owned and controlled by veterans; owned and controlled by service-disabled veterans; not less than 51 percent owned and controlled by 1 or more— members of the Armed Forces participating in the Transition Assistance Program of the Department of Defense; Reservists; spouses of veterans, members of the Armed Forces, or Reservists; or surviving spouses of veterans who died on active duty or as a result of a service-connected disability; or individuals who have completed a term of imprisonment in Federal, State, or local jail or prison; or that is eligible to receive a veterans advantage loan; the term small business concern owned and controlled by socially and economically disadvantaged individuals has the meaning given the term in section 8(d)(3)(C); and the term startup means a business that has not yet opened. ; in paragraph (2)— by striking 3-year ; and by striking pilot ; in paragraph (3)— in subparagraph (A), by striking and at the end; in subparagraph (B), by striking the period at the end and inserting ; and ; and by adding at the end the following: to provide flexible capital to and through mission lenders who are best positioned to understand community need and respond quickly to it during times of economic downturn, especially as a result of a disaster, including those caused by public health threats. ; in paragraph (4)— by striking subparagraph
(B)and inserting the following: Except as provided in subclause (II), no single loan to an eligible intermediary under this subsection may exceed $1,000,000. If an eligible intermediary makes not less than 60 percent of its loans to small business concerns in underserved markets, the eligible intermediary may receive a single loan under this subsection of $1,500,000. The total amount outstanding and committed to an eligible intermediary by the Administrator under the Program may not exceed $5,000,000. In determining whether to make a loan to an eligible intermediary before prior loans made to the eligible intermediary under the Program are paid off, the Administrator shall take into consideration the lending experience and track record of the eligible intermediary within the Program. ; and by striking subparagraphs
(F)and
(G)and inserting the following: The Administrator shall not require the repayment of principal or interest on a loan made to an eligible intermediary under the Program during the 2-year period beginning on the date of the initial disbursement of funds under that loan. An eligible intermediary shall not require the repayment of principal or interest on a loan made to a manufacturing or high-tech, innovative small business concern for the purposes of commercialization, including firms involved in the SBIR and STTR programs under section 9, until the earlier of— that date that is 6 months after the date of the initial disbursement of funds under that loan; or the date on which the small business concern brings in revenue. The Administrator may allow eligible intermediaries to engage borrowers in prudent repayment structures, including revenue-based financing, based on the type of business and business industry needs. In each fiscal year, the Administrator may make loans under the Program in a total amount of not more than $30,000,000. ; and by striking paragraph
(6)and inserting the following: Not later than 1 year after the date of enactment of the COVID–19 Recovery by Enhancing Loan, Investment, and Education Funds for Small Businesses Act of 2020 , the Administrator shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report regarding the performance and effectiveness of the Program, which shall include— the number and dollar amount of loans made in each year the Program has been in effect; each eligible intermediary that received a loan under the Program; and any recommendations for improvements to the Program. There is authorized to be appropriated to carry out this section— $20,000,000 for fiscal year 2020; and $30,000,000 for fiscal year 2021. . Not later than 180 days after the date of enactment of this Act, the Administrator shall issue regulations to carry out section 7(l) of the Small Business Act ( 15 U.S.C. 636(l) ), as amended by subsection (a).
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Sec. 18
Small business intermediary lending program
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