§ 636. Additional powers

(III) an agency of or nonprofit entity established by a Native American Tribal Government; and

(B) the term “Program” means the small business intermediary lending pilot program established under paragraph (2).

(2) Establishment There is established a 3-year small business intermediary lending pilot program, under which the Administrator may make direct loans to eligible intermediaries, for the purpose of making loans to startup, newly established, and growing small business concerns.

(3) Purposes The purposes of the Program are—

(A) to assist small business concerns in areas suffering from a lack of credit due to poor economic conditions or changes in the financial market; and

(B) to establish a loan program under which the Administrator may provide loans to eligible intermediaries to enable the eligible intermediaries to provide loans to startup, newly established, and growing small business concerns for working capital, real estate, or the acquisition of materials, supplies, or equipment.

(4) Loans to eligible intermediaries

(A) Application Each eligible intermediary desiring a loan under this subsection shall submit an application to the Administrator that describes—

(i) the type of small business concerns to be assisted;

(ii) the size and range of loans to be made;

(iii) the interest rate and terms of loans to be made;

(iv) the geographic area to be served and the economic, poverty, and unemployment characteristics of the area;

(v) the status of small business concerns in the area to be served and an analysis of the availability of credit; and

(vi) the qualifications of the applicant to carry out this subsection.

(B) Loan limits No loan may be made to an eligible intermediary under this subsection if the total amount outstanding and committed to the eligible intermediary by the Administrator would, as a result of such loan, exceed $1,000,000 during the participation of the eligible intermediary in the Program.

(C) Loan duration Loans made by the Administrator under this subsection shall be for a term of 20 years.

(D) Applicable interest rates Loans made by the Administrator to an eligible intermediary under the Program shall bear an annual interest rate equal to 1.00 percent.

(E) Fees; collateral The Administrator may not charge any fees or require collateral with respect to any loan made to an eligible intermediary under this subsection.

(F) Delayed payments 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.

(G) Maximum participants and amounts During each of fiscal years 2011, 2012, and 2013, the Administrator may make loans under the Program—

(i) to not more than 20 eligible intermediaries; and

(ii) in a total amount of not more than $20,000,000.

(5) Loans to small business concerns

(A) In general The Administrator, through an eligible intermediary, shall make loans to startup, newly established, and growing small business concerns for working capital, real estate, and the acquisition of materials, supplies, furniture, fixtures, and equipment.

(B) Maximum loan An eligible intermediary may not make a loan under this subsection of more than $200,000 to any 1 small business concern.

(C) Applicable interest rates A loan made by an eligible intermediary to a small business concern under this subsection, may have a fixed or a variable interest rate, and shall bear an interest rate specified by the eligible intermediary in the application of the eligible intermediary for a loan under this subsection.

(D) Review restrictions The Administrator may not review individual loans made by an eligible intermediary to a small business concern before approval of the loan by the eligible intermediary.

(6) Termination The authority of the Administrator to make loans under the Program shall terminate 3 years after September 27, 2010.

(m) Microloan Program

(1)

(A) Purposes The purposes of the Microloan Program are—

(i) to assist women, low-income, veteran (within the meaning of such term under section 632(q) of this title), and minority entrepreneurs and business owners and other such individuals possessing the capability to operate successful business concerns;

(ii) to assist small business concerns in those areas suffering from a lack of credit due to economic downturns;

(iii) to establish a microloan program to be administered by the Small Business Administration—

(I) to make loans to eligible intermediaries to enable such intermediaries to provide small-scale loans, particularly loans in amounts averaging not more than $10,000, to startup, newly established, or growing small business concerns for working capital or the acquisition of materials, supplies, or equipment;

(II) to make grants to eligible intermediaries that, together with non-Federal matching funds, will enable such intermediaries to provide intensive marketing, management, and technical assistance to microloan borrowers;

(III) to make grants to eligible nonprofit entities that, together with non-Federal matching funds, will enable such entities to provide intensive marketing, management, and technical assistance to assist low-income entrepreneurs and other low-income individuals obtain private sector financing for their businesses, with or without loan guarantees; and

(IV) to report to the Committees on Small Business of the Senate and the House of Representatives on the effectiveness of the microloan program and the advisability and feasibility of implementing such a program nationwide; and

(iv) to establish a welfare-to-work microloan initiative, which shall be administered by the Administration, in order to test the feasibility of supplementing the technical assistance grants provided under clauses (ii) and (iii) of subparagraph (B) to individuals who are receiving assistance under the State program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.), or under any comparable State funded means tested program of assistance for low-income individuals, in order to adequately assist those individuals in—

(I) establishing small businesses; and

(II) eliminating their dependence on that assistance.

(B) Establishment There is established a microloan program, under which the Administration may—

(i) make direct loans to eligible intermediaries, as provided under paragraph (3), for the purpose of making short-term, fixed interest rate microloans to startup, newly established, and growing small business concerns under paragraph (6);

(ii) in conjunction with such loans and subject to the requirements of paragraph (4), make grants to such intermediaries for the purpose of providing intensive marketing, management, and technical assistance to small business concerns that are borrowers under this subsection; and

(iii) subject to the requirements of paragraph (5), make grants to nonprofit entities for the purpose of providing marketing, management, and technical assistance to low-income individuals seeking to start or enlarge their own businesses, if such assistance includes working with the grant recipient to secure loans in amounts not to exceed $50,000 from private sector lending institutions, with or without a loan guarantee from the nonprofit entity.

(2) Eligibility for participation An intermediary shall be eligible to receive loans and grants under subparagraphs (B)(i) and (B)(ii) of paragraph (1) if it—

(A) meets the definition in paragraph (10); ^2 and

(B) has at least 1 year of experience making microloans to startup, newly established, or growing small business concerns and providing, as an integral part of its microloan program, intensive marketing, management, and technical assistance to its borrowers.

(3) Loans to intermediaries

(A) Intermediary applications

(i) In general As part of its application for a loan, each intermediary shall submit a description to the Administration of—

(I) the type of businesses to be assisted;

(II) the size and range of loans to be made;

(III) the geographic area to be served and its economic, poverty, and unemployment characteristics;

(IV) the status of small business concerns in the area to be served and an analysis of their credit and technical assistance needs;

(V) any marketing, management, and technical assistance to be provided in connection with a loan made under this subsection;

(VI) the local economic credit markets, including the costs associated with obtaining credit locally;

(VII) the qualifications of the applicant to carry out the purpose of this subsection; and

(VIII) any plan to involve other technical assistance providers (such as counselors from the Service Corps of Retired Executives or small business development centers) or private sector lenders in assisting selected business concerns.

(ii) Selection of intermediaries In selecting intermediaries to participate in the program established under this subsection, the Administration shall give priority to those applicants that provide loans in amounts averaging not more than $10,000.

(B) Intermediary contribution As a condition of any loan made to an intermediary under subparagraph (B)(i) of paragraph (1), the Administrator shall require the intermediary to contribute not less than 15 percent of the loan amount in cash from non-Federal sources.

(C) Loan limits Notwithstanding subsection (a)(3), no loan shall be made under this subsection if the total amount outstanding and committed to one intermediary (excluding outstanding grants) from the business loan and investment fund established by this chapter would, as a result of such loan, exceed $750,000 in the first year of such intermediary’s participation in the program, $7,000,000 (in the aggregate) in the remaining years of the intermediary’s participation in the program, and $3,000,000 in any of those remaining years.

(D)

(i) In general The Administrator shall, by regulation, require each intermediary to establish a loan loss reserve fund, and to maintain such reserve fund until all obligations owed to the Administration under this subsection are repaid.

(ii) Level of loan loss reserve fund

(I) In general Subject to subclause (III), the Administrator shall require the loan loss reserve fund of an intermediary to be maintained at a level equal to 15 percent of the outstanding balance of the notes receivable owed to the intermediary.

(II) Review of loan loss reserve After the initial 5 years of an intermediary’s participation in the program authorized by this subsection, the Administrator shall, at the request of the intermediary, conduct a review of the annual loss rate of the intermediary. Any intermediary in operation under this subsection prior to October 1, 1994, that requests a reduction in its loan loss reserve shall be reviewed based on the most recent 5-year period preceding the request.

(III) Reduction of loan loss reserve Subject to the requirements of clause IV,1919 So in original. Probably should be “subclause (IV),”. the Administrator may reduce the annual loan loss reserve requirement of an intermediary to reflect the actual average loan loss rate for the intermediary during the preceding 5-year period, except that in no case shall the loan loss reserve be reduced to less than 10 percent of the outstanding balance of the notes receivable owed to the intermediary.

(IV) Requirements The Administrator may reduce the annual loan loss reserve requirement of an intermediary only if the intermediary demonstrates to the satisfaction of the Administrator that—

(aa) the average annual loss rate for the intermediary during the preceding 5-year period is less than 15 percent; and

(bb) that 2020 So in original. The word “that” probably should not appear. no other factors exist that may impair the ability of the intermediary to repay all obligations owed to the Administration under this subsection.

(E) Unavailability of comparable credit An intermediary may make a loan under this subsection of more than $20,000 to a small business concern only if such small business concern demonstrates that it is unable to obtain credit elsewhere at comparable interest rates and that it has good prospects for success. In no case shall an intermediary make a loan under this subsection of more than $50,000, or have outstanding or committed to any 1 borrower more than $50,000.

(F) Loan duration; interest rates

(i) Loan duration Loans made by the Administration under this subsection shall be for a term of 10 years.

(ii) Applicable interest rates Except as provided in clause (iii), loans made by the Administration under this subsection to an intermediary shall bear an interest rate equal to 1.25 percentage points below the rate determined by the Secretary of the Treasury for obligations of the United States with a period of maturity of 5 years, adjusted to the nearest one-eighth of 1 percent.

(iii) Rates applicable to certain small loans Loans made by the Administration to an intermediary that makes loans to small business concerns and entrepreneurs averaging not more than $7,500, shall bear an interest rate that is 2 percentage points below the rate determined by the Secretary of the Treasury for obligations of the United States with a period of maturity of 5 years, adjusted to the nearest one-eighth of 1 percent.

(iv) Rates applicable to multiple sites or offices The interest rate prescribed in clause (ii) or (iii) shall apply to each separate loan-making site or office of 1 intermediary only if such site or office meets the requirements of that clause.

(v) Rate basis The applicable rate of interest under this paragraph shall—

(I) be applied retroactively for the first year of an intermediary’s participation in the program, based upon the actual lending practices of the intermediary as determined by the Administration prior to the end of such year; and

(II) be based in the second and subsequent years of an intermediary’s participation in the program, upon the actual lending practices of the intermediary during the term of the intermediary’s participation in the program.

(vii) 2121 So in original. Probably should be “(vi)”. Covered intermediaries The interest rates prescribed in this subparagraph shall apply to all loans made to intermediaries under this subsection on or after October 28, 1991.

(G) Delayed payments The Administration shall not require repayment of interest or principal of a loan made to an intermediary under this subsection during the first year of the loan.

(H) Fees; collateral Except as provided in subparagraphs (B) and (D), the Administration shall not charge any fees or require collateral other than an assignment of the notes receivable of the microloans with respect to any loan made to an intermediary under this subsection.

(4) Marketing, management and technical assistance grants to intermediaries Grants made in accordance with subparagraph (B)(ii) of paragraph (1) shall be subject to the following requirements:

(A) Grant amounts Except as otherwise provided in subparagraphs (C) and (G) and subject to subparagraph (B), each intermediary that receives a loan under subparagraph (B)(i) of paragraph (1) shall be eligible to receive a grant to provide marketing, management, and technical assistance to small business concerns that are borrowers under this subsection. Except as provided in subparagraphs (C) and (G), each intermediary meeting the requirements of subparagraph (B) may receive a grant of not more than 25 percent of the total outstanding balance of loans made to it under this subsection.

(B) Contribution As a condition of a grant made under subparagraph (A), the Administrator shall require the intermediary to contribute an amount equal to 25 percent of the amount of the grant, obtained solely from non-Federal sources. In addition to cash or other direct funding, the contribution may include indirect costs or in-kind contributions paid for under non-Federal programs.

(C) Additional technical assistance grants for making certain loans

(i) In general In addition to grants made under subparagraph (A) or (G), each intermediary shall be eligible to receive a grant equal to 5 percent of the total outstanding balance of loans made to the intermediary under this subsection if—

(I) the intermediary provides not less than 25 percent of its loans to small business concerns located in or owned by 1 or more residents of an economically distressed area; or

(II) the intermediary has a portfolio of loans made under this subsection—

(aa) that averages not more than $10,000 during the period of the intermediary’s participation in the program; or

(bb) of which not less than 25 percent is serving rural areas during the period of the intermediary’s participation in the program.

(ii) Purposes A grant awarded under clause (i) may be used to provide marketing, management, and technical assistance to small business concerns that are borrowers under this subsection.

(iii) Contribution exception The contribution requirements in subparagraph (B) do not apply to grants made under this subparagraph.

(D) Eligibility for multiple sites or offices The eligibility for a grant described in subparagraph (A),^9 or (C) shall be determined separately for each loan-making site or office of 1 intermediary.

(E) Assistance to certain small business concerns

(i) In general Each intermediary may expend an amount not to exceed 50 percent of the grant funds received under paragraph (1)(B)(ii) to provide information and technical assistance to small business concerns that are prospective borrowers under this subsection.

(ii) Technical assistance An intermediary may expend not more than 50 percent of the funds received under paragraph (1)(B)(ii) to enter into third party contracts for the provision of technical assistance.

(F) Supplemental grant

(i) In general The Administration may accept any funds transferred to the Administration from other departments or agencies of the Federal Government to make grants in accordance with this subparagraph and section 202(b) of the Small Business Reauthorization Act of 1997 to participating intermediaries and technical assistance providers under paragraph (5), for use in accordance with clause (iii) to provide additional technical assistance and related services to recipients of assistance under a State program described in paragraph (1)(A)(iv) at the time they initially apply for assistance under this subparagraph.

(ii) Eligible recipients; grant amounts In making grants under this subparagraph, the Administration may select, from among participating intermediaries and technical assistance providers described in clause (i), not more than 20 grantees in fiscal year 1998, not more than 25 grantees in fiscal year 1999, and not more than 30 grantees in fiscal year 2000, each of whom may receive a grant under this subparagraph in an amount not to exceed $200,000 per year.

(iii) Use of grant amounts Grants under this subparagraph—

(I) are in addition to other grants provided under this subsection and shall not require the contribution of matching amounts as a condition of eligibility; and

(II) may be used by a grantee—

(aa) to pay or reimburse a portion of child care and transportation costs of recipients of assistance described in clause (i), to the extent such costs are not otherwise paid by State block grants under the Child Care Development Block Grant Act of 1990 (42 U.S.C. 9858 ^2 et seq.) or under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.); and

(bb) for marketing, management, and technical assistance to recipients of assistance described in clause (i).

(iv) Memorandum of Understanding Prior to accepting any transfer of funds under clause (i) from a department or agency of the Federal Government, the Administration shall enter into a Memorandum of Understanding with the department or agency, which shall—

(I) specify the terms and conditions of the grants under this subparagraph; and

(II) provide for appropriate monitoring of expenditures by each grantee under this subparagraph and each recipient of assistance described in clause (i) who receives assistance from a grantee under this subparagraph, in order to ensure compliance with this subparagraph by those grantees and recipients of assistance.

(G) Grant amounts based on appropriations In any fiscal year in which the amount appropriated to make grants under subparagraph (A) is sufficient to provide to each intermediary that receives a loan under paragraph (1)(B)(i) a grant of not less than 25 percent of the total outstanding balance of loans made to the intermediary under this subsection, the Administration shall make a grant under subparagraph (A) to each intermediary of not less than 25 percent and not more than 30 percent of that total outstanding balance for the intermediary.

(5) Private sector borrowing technical assistance grants Grants made in accordance with subparagraph (B)(iii) of paragraph (1) shall be subject to the following requirements:

(A) Grant amounts Subject to the requirements of subparagraph (B), the Administration may make not more than 55 grants annually, each in amounts not to exceed $200,000 for the purposes specified in subparagraph (B)(iii) of paragraph (1).

(B) Contribution As a condition of any grant made under subparagraph (A), the Administration shall require the grant recipient to contribute an amount equal to 20 percent of the amount of the grant, obtained solely from non-Federal sources. In addition to cash or other direct funding, the contribution may include indirect costs or in-kind contributions paid for under non-Federal programs.

(6) Loans to small business concerns from eligible intermediaries

(A) In general An eligible intermediary shall make short-term, fixed rate loans to startup, newly established, and growing small business concerns from the funds made available to it under subparagraph (B)(i) of paragraph (1) for working capital and the acquisition of materials, supplies, furniture, fixtures, and equipment.

(B) Portfolio requirement To the extent practicable, each intermediary that operates a microloan program under this subsection shall maintain a microloan portfolio with an average loan size of not more than $15,000.

(C) Interest limit Notwithstanding any provision of the laws of any State or the constitution of any State pertaining to the rate or amount of interest that may be charged, taken, received, or reserved on a loan, the maximum rate of interest to be charged on a microloan funded under this subsection shall not exceed the rate of interest applicable to a loan made to an intermediary by the Administration—

(i) in the case of a loan of more than $7,500 made by the intermediary to a small business concern or entrepreneur by more than 7.75 percentage points; and

(ii) in the case of a loan of not more than $7,500 made by the intermediary to a small business concern or entrepreneur by more than 8.5 percentage points.

(D) Review restriction The Administration shall not review individual microloans made by intermediaries prior to approval.

(E) Establishment of child care or transportation businesses In addition to other eligible small businesses concerns, borrowers under any program under this subsection may include individuals who will use the loan proceeds to establish for-profit or nonprofit child care establishments or businesses providing for-profit transportation services.

(7) Program funding for microloans

(A) Number of participants Under the program authorized by this subsection, the Administration may fund, on a competitive basis, not more than 300 intermediaries.

(B) Allocation

(i) Minimum allocation Subject to the availability of appropriations, of the total amount of new loan funds made available for award under this subsection in each fiscal year, the Administration shall make available for award in each State (including the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, and American Samoa) an amount equal to the sum of—

(I) the lesser of—

(aa) $800,000; or

(bb) ^1⁄55 of the total amount of new loan funds made available for award under this subsection for that fiscal year; and

(II) any additional amount, as determined by the Administration.

(ii) Redistribution If, at the beginning of the third quarter of a fiscal year, the Administration determines that any portion of the amount made available to carry out this subsection is unlikely to be made available under clause (i) during that fiscal year, the Administration may make that portion available for award in any one or more States (including the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, and American Samoa) without regard to clause (i).

(8) Equitable distribution of intermediaries In approving microloan program applicants and providing funding to intermediaries under this subsection, the Administration shall select and provide funding to such intermediaries as will ensure appropriate availability of loans for small businesses in all industries located throughout each State, particularly those located in urban and in rural areas.

(9) Grants for management, marketing, technical assistance, and related services

(A) In general The Administration may procure technical assistance for intermediaries participating in the Microloan Program to ensure that such intermediaries have the knowledge, skills, and understanding of microlending practices necessary to operate successful microloan programs.

(B) Assistance amount The Administration shall transfer 7 percent of its annual appropriation for loans and loan guarantees under this subsection to the Administration’s Salaries and Expense Account for the specific purpose of providing 1 or more technical assistance grants to experienced microlending organizations and national and regional nonprofit organizations that have demonstrated experience in providing training support for microenterprise development and financing.2222 So in original. The period probably should not appear. to achieve the purpose set forth in subparagraph (A).

(C) Welfare-to-work microloan initiative Of amounts made available to carry out the welfare-to-work microloan initiative under paragraph (1)(A)(iv) in any fiscal year, the Administration may use not more than 5 percent to provide technical assistance, either directly or through contractors, to welfare-to-work microloan initiative grantees, to ensure that, as grantees, they have the knowledge, skills, and understanding of microlending and welfare-to-work transition, and other related issues, to operate a successful welfare-to-work microloan initiative.

(10) Report to Congress On November 1, 1995, the Administration shall submit to the Committees on Small Business of the Senate and the House of Representatives a report, including the Administration’s evaluation of the effectiveness of the first 3½ years of the microloan program and the following:

(A) the numbers and locations of the intermediaries funded to conduct microloan programs;

(B) the amounts of each loan and each grant to intermediaries;

(C) a description of the matching contributions of each intermediary;

(D) the numbers and amounts of microloans made by the intermediaries to small business concern borrowers;

(E) the repayment history of each intermediary;

(F) a description of the loan portfolio of each intermediary including the extent to which it provides microloans to small business concerns in rural areas; and

(G) any recommendations for legislative changes that would improve program operations.

(11) Definitions For purposes of this subsection—

(A) the term “intermediary” means—

that seeks to borrow or has borrowed funds from the Administration to make microloans to small business concerns under this subsection;

(i) a private, nonprofit entity;

(ii) a private, nonprofit community development corporation;

(iii) a consortium of private, nonprofit organizations or nonprofit community development corporations;

(iv) a quasi-governmental economic development entity (such as a planning and development district), other than a State, county, municipal government, or any agency thereof, if—

(I) no application is received from an eligible nonprofit organization; or

(II) the Administration determines that the needs of a region or geographic area are not adequately served by an existing, eligible nonprofit organization that has submitted an application; or

(v) an agency of or nonprofit entity established by a Native American Tribal Government,

(B) the term “microloan” means a short-term, fixed rate loan of not more than $50,000, made by an intermediary to a startup, newly established, or growing small business concern;

(C) the term “rural area” means any political subdivision or unincorporated area—

(i) in a nonmetropolitan county (as defined by the Secretary of Agriculture) or its equivalent thereof; or

(ii) in a metropolitan county or its equivalent that has a resident population of less than 20,000 if the Small Business Administration has determined such political subdivision or area to be rural; and

(D) the term “economically distressed area”, as used in paragraph (4), means a county or equivalent division of local government of a State in which the small business concern is located, in which, according to the most recent data available from the Bureau of the Census, Department of Commerce, not less than 40 percent of residents have an annual income that is at or below the poverty level.

(12) Deferred participation loan pilot In lieu of making direct loans to intermediaries as authorized in paragraph (1)(B), during fiscal years 1998 through 2000, the Administration may, on a pilot program basis, participate on a deferred basis of not less than 90 percent and not more than 100 percent on loans made to intermediaries by a for-profit or nonprofit entity or by alliances of such entities, subject to the following conditions:

(A) Number of loans In carrying out this paragraph, the Administration shall not participate in providing financing on a deferred basis to more than 10 intermediaries in urban areas or more than 10 intermediaries in rural areas.

(B) Term of loans The term of each loan shall be 10 years. During the first year of the loan, the intermediary shall not be required to repay any interest or principal. During the second through fifth years of the loan, the intermediary shall be required to pay interest only. During the sixth through tenth years of the loan, the intermediary shall be required to make interest payments and fully amortize the principal.

(C) Interest rate The interest rate on each loan shall be the rate specified by paragraph (3)(F) for direct loans.

(13) Evaluation of welfare-to-work microloan initiative On January 31, 1999, and annually thereafter, the Administration shall submit to the Committees on Small Business of the House of Representatives and the Senate a report on any monies distributed pursuant to paragraph (4)(F).

(n) Repayment deferred for active service reservists

(1) Definitions In this subsection:

(A) Active service The term “active service” has the meaning given that term in section 101(d)(3) of title 10.

(B) Eligible reservist The term “eligible reservist” means a member of a reserve component of the Armed Forces ordered to perform active service for a period of more than 30 consecutive days.

(C) Essential employee The term “essential employee” means an individual who is employed by a small business concern and whose managerial or technical expertise is critical to the successful day-to-day operations of that small business concern.

(D) Qualified borrower The term “qualified borrower” means—

(i) an individual who is an eligible reservist and who received a direct loan under subsection (a) or (b) before being ordered to active service; or

(ii) a small business concern that received a direct loan under subsection (a) or (b) before an eligible reservist, who is an essential employee, was ordered to active service.

(2) Deferral of direct loans

(A) In general The Administration shall, upon written request, defer repayment of principal and interest due on a direct loan made under subsection (a) or (b), if such loan was incurred by a qualified borrower.

(B) Period of deferral The period of deferral for repayment under this paragraph shall begin on the date on which the eligible reservist is ordered to active service and shall terminate on the date that is 180 days after the date such eligible reservist is discharged or released from active service.

(C) Interest rate reduction during deferral Notwithstanding any other provision of law, during the period of deferral described in subparagraph (B), the Administration may, in its discretion, reduce the interest rate on any loan qualifying for a deferral under this paragraph.

(3) Deferral of loan guarantees and other financings The Administration shall—

(A) encourage intermediaries participating in the program under subsection (m) to defer repayment of a loan made with proceeds made available under that subsection, if such loan was incurred by a small business concern that is eligible to apply for assistance under subsection (b)(3); and

(B) not later than 30 days after August 17, 1999, establish guidelines to—

(i) encourage lenders and other intermediaries to defer repayment of, or provide other relief relating to, loan guarantees under subsection (a) and financings under section 697a of this title that were incurred by small business concerns that are eligible to apply for assistance under subsection (b)(3), and loan guarantees provided under subsection (m) if the intermediary provides relief to a small business concern under this paragraph; and

(ii) implement a program to provide for the deferral of repayment or other relief to any intermediary providing relief to a small business borrower under this paragraph.

(Pub. L. 85–536, § 2[7], July 18, 1958, 72 Stat. 387; Pub. L. 85–699, title VI, § 602(c), Aug. 21, 1958, 72 Stat. 698; Pub. L. 86–367, § 2, Sept. 22, 1959, 73 Stat. 647; Pub. L. 87–70, title III, § 305[a], June 30, 1961, 75 Stat. 167; Pub. L. 87–305, § 9, Sept. 26, 1961, 75 Stat. 668; Pub. L. 88–264, § 1, Feb. 5, 1964, 78 Stat. 7; Pub. L. 88–560, title III, § 319, Sept. 2, 1964, 78 Stat. 794; Pub. L. 89–59, § 1(a), (b), June 30, 1965, 79 Stat. 206; Pub. L. 89–409, § 3(a), May 2, 1966, 80 Stat. 133; Pub. L. 89–769, § 7(b), Nov. 6, 1966, 80 Stat. 1319; Pub. L. 90–104, title I, §§ 103, 104, Oct. 11, 1967, 81 Stat. 268; Pub. L. 90–448, title XI, § 1106(a), Aug. 1, 1968, 82 Stat. 567; Pub. L. 90–495, § 31, Aug. 23, 1968, 82 Stat. 835; Pub. L. 91–173, title V, § 504(a), (b), Dec. 30, 1969, 83 Stat. 802; Pub. L. 91–596, § 28(a), (b), Dec. 29, 1970, 84 Stat. 1618; Pub. L. 91–597, § 25(a), (b), Dec. 29, 1970, 84 Stat. 1633, 1634; Pub. L. 92–385, §§ 1(a), 2(a), Aug. 16, 1972, 86 Stat. 554, 555; Pub. L. 92–500, § 8(a), Oct. 18, 1972, 86 Stat. 898; Pub. L. 92–595, § 3(b), Oct. 27, 1972, 86 Stat. 1316; Pub. L. 93–237, §§ 2(a), (b), 3(a), 5, 6, Jan. 2, 1974, 87 Stat. 1023, 1024; Pub. L. 93–386, §§ 2(a)(4), 3(2), 8, 9, 12, Aug. 23, 1974, 88 Stat. 742, 746, 748, 749; Pub. L. 94–305, title I, §§ 108(b), 109, 111, 112(c), (d), 114, June 4, 1976, 90 Stat. 666, 667; Pub. L. 95–89, title I, § 101(d), (e), title III, §§ 301, 302, title IV, §§ 402–405, Aug. 4, 1977, 91 Stat. 553, 558–560; Pub. L. 95–315, §§ 2, 3, July 4, 1978, 92 Stat. 377, 378; Pub. L. 95–507, title II, §§ 204, 205, 231, Oct. 24, 1978, 92 Stat. 1764, 1766, 1772; Pub. L. 95–510, § 104, Oct. 24, 1978, 92 Stat. 1782; Pub. L. 96–38, title I, § 101(a), (b), July 25, 1979, 93 Stat. 118; Pub. L. 96–302, title I, §§ 119(a), (b), 122–124, title II, § 203, title V, § 505, July 2, 1980, 94 Stat. 840, 841, 843, 848, 852; Pub. L. 96–481, title I, §§ 104, 106(a), 107, 112, Oct. 21, 1980, 94 Stat. 2322, 2323; Pub. L. 97–35, title XIX, §§ 1902, 1910–1912, 1913(a), (c), 1914, Aug. 13, 1981, 95 Stat. 767, 778–780; Pub. L. 98–270, title III, §§ 301, 304, 308, 309, 311, Apr. 18, 1984, 98 Stat. 159–161; Pub. L. 98–395, § 5, Aug. 21, 1984, 98 Stat. 1368; Pub. L. 99–272, title XVIII, §§ 18006(a)(1), (2), 18007, 18013, Apr. 7, 1986, 100 Stat. 366, 370; Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095; Pub. L. 100–418, title VIII, §§ 8005, 8007(a), Aug. 23, 1988, 102 Stat. 1557, 1559; Pub. L. 100–533, title III, § 302(a), Oct. 25, 1988, 102 Stat. 2693; Pub. L. 100–590, title I, §§ 102(a), 103, 111(c), 119(a), 120–122, Nov. 3, 1988, 102 Stat. 2992, 2995, 2999, 3000; Pub. L. 100–656, title II, §§ 201(a), 202, 203, 205, 206, 208, title III, §§ 301–303(a), title IV, § 408, title V, § 505(h), Nov. 15, 1988, 102 Stat. 3856, 3858, 3859, 3861, 3862, 3865–3868, 3877, 3887; Pub. L. 100–707, title I, § 109(f), Nov. 23, 1988, 102 Stat. 4708; Pub. L. 101–37, §§ 4–6(a), 7(a), 8–10(b), June 15, 1989, 103 Stat. 70–73; Pub. L. 101–162, title V, (1), (2), Nov. 21, 1989, 103 Stat. 1024, 1025; Pub. L. 101–574, title II, §§ 202, 204(a), 206, 242, 245, title III, § 307, Nov. 15, 1990, 104 Stat. 2818–2820, 2827, 2830; Pub. L. 102–140, title VI, § 609(b), (h), Oct. 28, 1991, 105 Stat. 825, 827; Pub. L. 102–191, § 4, Dec. 5, 1991, 105 Stat. 1591; Pub. L. 102–366, title I, §§ 104, 113(a), title II, § 211, Sept. 4, 1992, 106 Stat. 988, 989, 997; Pub. L. 102–564, title III, § 307(b), (c), Oct. 28, 1992, 106 Stat. 4263, 4264; Pub. L. 103–81, §§ 4, 5(a), 8, Aug. 13, 1993, 107 Stat. 781, 782; Pub. L. 103–403, title II, §§ 201, 202, 204–208(b), 209–211, title VI, §§ 603–605(a), Oct. 22, 1994, 108 Stat. 4180–4183, 4202, 4203; Pub. L. 104–36, §§ 2–4(a), 5, Oct. 12, 1995, 109 Stat. 295–297; Pub. L. 104–208, div. D, title I, §§ 103(a)–(d), (f), 105, 107, 111, Sept. 30, 1996, 110 Stat. 3009–726, 3009–727, 3009–731 to 3009–733; Pub. L. 105–135, title II, §§ 201, 202(a), 231, title VII, § 706, Dec. 2, 1997, 111 Stat. 2597, 2598, 2606, 2637; Pub. L. 105–277, div. A, § 101(f) [title VIII, § 405(d)(10), (f)(9)], Oct. 21, 1998, 112 Stat. 2681–337, 2681–420, 2681–430; Pub. L. 106–8, § 3(a), (c), Apr. 2, 1999, 113 Stat. 13, 16; Pub. L. 106–22, §§ 2, 3, Apr. 27, 1999, 113 Stat. 36, 37; Pub. L. 106–24, § 1(a), Apr. 27, 1999, 113 Stat. 39; Pub. L. 106–50, title IV, §§ 401(b), 402(a), (b), 403, 404, Aug. 17, 1999, 113 Stat. 244–246; Pub. L. 106–554, § 1(a)(9) [title II, §§ 202–208(a), 210, title VIII, § 802(a)], Dec. 21, 2000, 114 Stat. 2763, 2763A–681 to 2763A–684, 2763A–702; Pub. L. 107–100, § 6(a), Dec. 21, 2001, 115 Stat. 970; Pub. L. 108–447, div. K, title I, §§ 101(a), 102, 103(a), 107(a), (b), Dec. 8, 2004, 118 Stat. 3442–3446; Pub. L. 109–163, div. A, title VIII, § 845(a)(2), (c), Jan. 6, 2006, 119 Stat. 3390, 3391; Pub. L. 110–140, title XII, §§ 1201, 1202, Dec. 19, 2007, 121 Stat. 1764, 1765; Pub. L. 110–186, title II, §§ 201(a), 203, 204, 208, Feb. 14, 2008, 122 Stat. 627, 629, 631; Pub. L. 110–234, title XII, §§ 12061, 12063(a), (c)(2), 12065, 12066(a), 12068(a), (b)(2), 12070, 12074(a), 12077–12078(b)(1), (c), 12081–12083(a), May 22, 2008, 122 Stat. 1406, 1407, 1409–1411, 1414–1418; Pub. L. 110–246, § 4(a), title XII, §§ 12061, 12063(a), (c)(2), 12065, 12066(a), 12068(a), (b)(2), 12070, 12074(a), 12077–12078(b)(1), (c), 12081–12083(a), June 18, 2008, 122 Stat. 1664, 2168, 2169, 2171–2173, 2176–2180; Pub. L. 111–240, title I, §§ 1111, 1113, 1131(a), 1133, 1135, 1206(a)–(g), 1401(a), (c)(1), Sept. 27, 2010, 124 Stat. 2507, 2508, 2512, 2514, 2520, 2530–2532, 2547, 2549; Pub. L. 112–74, div. C, title V, § 531, Dec. 23, 2011, 125 Stat. 922; Pub. L. 112–239, div. A, title XVI, § 1622(c), Jan. 2, 2013, 126 Stat. 2069; Pub. L. 113–128, title V, § 512(cc), July 22, 2014, 128 Stat. 1717; Pub. L. 114–38, §§ 2, 4(b), July 28, 2015, 129 Stat. 437, 438; Pub. L. 114–88, div. A, title I, §§ 1101–1104, div. B, title I, §§ 2101, 2102(a), (b), 2105–2107, 2109, title II, § 2201, title III, § 2301(a), Nov. 25, 2015, 129 Stat. 687–690, 692, 694, 695; Pub. L. 114–92, div. A, title VIII, § 865(a)(2), Nov. 25, 2015, 129 Stat. 928; Pub. L. 115–141, div. E, title V, § 532, Mar. 23, 2018, 132 Stat. 581; Pub. L. 115–189, § 4(a)(2), June 21, 2018, 132 Stat. 1497; Pub. L. 115–232, div. A, title VIII, §§ 853(b), 861(c), 862(b)(1), (f), Aug. 13, 2018, 132 Stat. 1885, 1896, 1897, 1900; Pub. L. 115–370, § 2, Dec. 21, 2018, 132 Stat. 5105; Pub. L. 116–92, div. A, title VIII, § 877(a), Dec. 20, 2019, 133 Stat. 1529; Pub. L. 116–136, div. A, title I, §§ 1102(a), (c), (d), 1110(f), Mar. 27, 2020, 134 Stat. 286, 294, 308; Pub. L. 116–139, div. A, § 101(d), Apr. 24, 2020, 134 Stat. 621; Pub. L. 116–142, §§ 2(a), 3(a), (c), June 5, 2020, 134 Stat. 641, 642; Pub. L. 116–260, div. N, title III, §§ 304(a), (b)(1)(C)(ii), 308(a), 310(a)(1), (b), 311(a), 313(a), 315(a), 316–319, 326, 329(a), 334, 335(a), 336(a), 337(a), 338(a), 339(b), 340(a), (b)(1), 341–343(a), 344, Dec. 27, 2020, 134 Stat. 1993, 1994, 2000, 2001, 2008, 2011–2015, 2036, 2037, 2041, 2042, 2047, 2048, 2049–2051; Pub. L. 116–283, div. A, title VIII, § 866(b), Jan. 1, 2021, 134 Stat. 3785; Pub. L. 117–2, title V, § 5001(a), (b), (c)(2), Mar. 11, 2021, 135 Stat. 81–84; Pub. L. 117–6, § 2(a), Mar. 30, 2021, 135 Stat. 250; Pub. L. 117–165, § 2(a), Aug. 5, 2022, 136 Stat. 1363; Pub. L. 117–166, § 2, Aug. 5, 2022, 136 Stat. 1365; Pub. L. 117–249, § 2(a), Dec. 20, 2022, 136 Stat. 2350.)

Editorial Notes

References in Text

Subsections (b) and (c) of section 631 of this title, referred to in subsecs. (a)(11) and (i)(1), were redesignated subsections (c) and (d), respectively, and a new subsection (b) was added by Pub. L. 100–418, title VIII, § 8002, Aug. 23, 1988, 102 Stat. 1553.

The Small Business Investment Act of 1958, referred to in subsecs. (a)(13), (36)(A)(xi)(III) and (j)(10)(A)(vi), (13)(D)(i), is Pub. L. 85–699, Aug. 21, 1958, 72 Stat. 689. Title IV, part B of title IV, and title V of the Act are classified generally to subchapter IV–A (§ 692 et seq.), part B (§ 694a et seq.) of subchapter IV–A, and subchapter V (§ 695 et seq.), respectively, of chapter 14B of this title. For complete classification of this Act to the Code, see Short Title note set out under section 661 of this title and Tables.

The Trade Act of 1974, referred to in subsec. (a)(16)(E), is Pub. L. 93–618, Jan. 3, 1975, 88 Stat. 1978. Chapter 3 of title II of the Act is classified generally to part 3 (§ 2341 et seq.) of subchapter II of chapter 12 of Title 19, Customs Duties. For complete classification of this Act to the Code, see section 2101 of Title 19 and Tables.

Section 7002(b) of the Families First Coronavirus Response Act, referred to in subsec. (a)(36)(A)(v), is section 7002(b) of Pub. L. 116–127, which is set out in a note under section 1401 of Title 26, Internal Revenue Code.

Section 7001 of the Families First Coronavirus Response Act, referred to in subsec. (a)(36)(A)(viii)(II)(dd), is section 7001 of Pub. L. 116–127, which is set out as a note under section 3111 of Title 26, Internal Revenue Code.

Section 7003 of the Families First Coronavirus Response Act, referred to in subsec. (a)(36)(A)(viii)(II)(ee), is section 7003 of Pub. L. 116–127, which is set out as a note under section 3111 of Title 26, Internal Revenue Code.

Section 308 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, referred to in subsec. (a)(36)(A)(xi)(II), is section 308 of Pub. L. 101–73, which is set out as a note under section 1463 of Title 12, Banks and Banking.

The Communications Act of 1934, referred to in subsec. (a)(36)(D)(iii)(II)(aa), (IV)(aa), is act June 19, 1934, ch. 652, 48 Stat. 1064. Title III of the Act is classified generally to subchapter III (§ 301 et seq.) of chapter 5 of Title 47, Telecommunications. For complete classification of this Act to the Code, see section 609 of Title 47 and Tables.

The Federal Deposit Insurance Act, referred to in subsec. (a)(36)(O)(ii), is act Sept. 21, 1950, ch. 967, § 2, 64 Stat. 873, which is classified generally to chapter 16 (§ 1811 et seq.) of Title 12, Banks and Banking. For complete classification of this Act to the Code, see Short Title note set out under section 1811 of Title 12 and Tables.

Section 9009a of this title and such section 9009a, referred to in subsec. (a)(36)(U), (37)(A)(iv)(III)(ee), were in the original “section 24 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act” and “such section 24”, respectively. The named Act was enacted as title III of div. N of Pub. L. 116–260, and section 324 of such title III, which defines “eligible person or entity” for purposes of that section, is classified to section 9009a of this title.

Section 2301 of the CARES Act, referred to in subsec. (a)(37)(J)(iii)(I)(aa), is section 2301 of Pub. L. 116–136, which is set out as a note under section 3111 of Title 26, Internal Revenue Code.

Section 303 of the Taxpayer Certainty and Disaster Relief Act of 2020, referred to in subsec. (a)(37)(J)(iii)(I)(bb), is section 303 of of div. EE of Pub. L. 116–260, title III, Dec. 27, 2020, 134 Stat. 3075. Subsec. (a) of section 303 is not classified to the Code. Subsec. (d) of section 303 amended provisions set out as notes under section 3111 of Title 26, Internal Revenue Code, and is otherwise not classified to the Code. For complete classification of section 303 to the Code, see Tables.

The Robert T. Stafford Disaster Relief and Emergency Assistance Act, referred to in subsec. (b), is Pub. L. 93–288, May 22, 1974, 88 Stat. 143, formerly known as the Disaster Relief and Emergency Assistance Act, which is classified principally to chapter 68 (§ 5121 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note set out under section 5121 of Title 42 and Tables.

Section 231 of the Disaster Relief Act of 1970 [15 U.S.C. 636a], referred to in penultimate par. of subsec. (b), was repealed by Pub. L. 97–35, title XIX, § 1917, Aug. 13, 1981, 95 Stat. 781.

The date of enactment of the Small Business Disaster Response and Loan Improvements Act of 2008, referred to in subsec. (c)(10), is the date of enactment of subtitle B (§§ 12051–12091) of title XII of Pub. L. 110–246, which was approved June 18, 2008.

Reorganization Plan Numbered 2 of 1954, referred to in subsec. (d)(1), is set out in the Appendix to Title 5, Government Organization and Employees.

Reorganization Plan Numbered 1 of 1957, referred to in subsec. (d)(1), is set out in the Appendix to Title 5.

The Economic Opportunity Act of 1964, referred to in subsec. (i)(3), is Pub. L. 88–452, Aug. 20, 1964, 78 Stat. 508. Title III of the Act was classified generally to subchapter III (§ 2841 et seq.) of chapter 34 of Title 42, The Public Health and Welfare, prior to its repeal by Pub. L. 97–35, title VI, § 683(a), Aug. 13, 1981, 95 Stat. 519. For complete classification of this Act to the Code, see Tables.

The Public Works and Economic Development Act of 1965, referred to in subsec. (i)(5)(D), is Pub. L. 89–136, Aug. 26, 1965, 79 Stat. 552, which is classified generally to chapter 38 (§ 3121 et seq.) of Title 42. For complete classification of this Act to the Code, see Short Title note set out under section 3121 of Title 42 and Tables.

Section 602(b) of Public Law 100–656, the “Business Opportunity Development Reform Act of 1988”, referred to in subsec. (j)(10)(J)(ii)(III), is set out as a note under section 637 of this title.

Section 35(a) of title 41, referred to in subsec. (j)(13)(C), was struck out and former section 35(b) of title 41 redesignated section 35(a) by Pub. L. 103–355, title VII, § 7201(1), Oct. 13, 1994, 108 Stat. 3378. Section 35 of title 41 was subsequently repealed and restated as sections 6501(1) and 6502 of Title 41, Public Contracts, by Pub. L. 111–350, §§ 3, 7(b), Jan. 4, 2011, 124 Stat. 3677, 3855. For disposition of sections of former Title 41, see Disposition Table preceding section 101 of Title 41.

The Workforce Innovation and Opportunity Act, referred to in subsec. (j)(13)(E), is Pub. L. 113–128, July 22, 2014, 128 Stat. 1425. Title I of the Act is classified generally to subchapter I (§ 3111 et seq.) of chapter 32 of Title 29, Labor. For complete classification of this Act to the Code, see Short Title note set out under section 3101 of Title 29 and Tables.

The Social Security Act, referred to in subsec. (m)(1)(A)(iv), (4)(F)(iii)(II)(aa), is act Aug. 14, 1935, ch. 531, 49 Stat. 620. Part A of title IV of the Act is classified generally to part A (§ 601 et seq.) of subchapter IV of chapter 7 of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see section 1305 of Title 42 and Tables.

Paragraph (10), referred to in subsec. (m)(2)(A), was redesignated paragraph (11) by Pub. L. 102–366, title I, § 113(a)(8), Sept. 4, 1992, 106 Stat. 992.

Section 202(b) of the Small Business Reauthorization Act of 1997, referred to in subsec. (m)(4)(F)(i), is section 202(b) of Pub. L. 105–135, which is set out as a note below.

The Child Care and Development Block Grant Act of 1990, referred to in subsec. (m)(4)(F)(iii)(II)(aa), is subchapter C (§ 658A et seq.) of chapter 8 of subtitle A of title VI of Pub. L. 97–35, as added by Pub. L. 101–508, title V, § 5082(2), Nov. 5, 1990, 104 Stat. 1388–236, which is classified generally to subchapter II–B (§ 9857 et seq.) of chapter 105 of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see section 9857(a) of Title 42 and Tables.

Codification

September 30, 1996, referred to in subsec. (a)(25)(C), was in the original “the date of enactment of this subsection” which was translated as meaning the date of enactment of Pub. L. 104–208, which enacted par. (25) of subsec. (a), to reflect the probable intent of Congress.

In subsec. (d)(3), “August 13, 1981” substituted for “the effective date of this Act”, such words having been inserted in place of “to October 1, 1983” by section 1914 of Pub. L. 97–35. “This Act” probably meant the Small Business Budget Reconciliation and Loan Consolidation/Improvement Act of 1981 (title XIX of Pub. L. 97–35) rather than the Small Business Act (Pub. L. 85–536). See Effective Date of 1981 Amendment note set out under section 631 of this title.

In subsec. (j)(11)(B)(i), as enacted by the amendments made by Pub. L. 101–37, “August 15, 1989” substituted for “the effective date of this subparagraph” and “such effective date”. Section 32 of Pub. L. 101–37 provided that the amendments made by Pub. L. 101–37 shall apply as if included in Pub. L. 100–656. Section 803(b)(1)(A) of Pub. L. 100–656 provided that the amendment made by section 201(a) thereof to subsec. (j)(11) shall take effect on June 1, 1989. Section 31 of Pub. L. 101–37 amended section 803(b) of Pub. L. 100–656 to make such amendments effective on August 15, 1989, in place of June 1, 1989. See 1988 and 1989 Effective Date of Amendment notes below.

“Sections 3131 and 3133 of title 40” substituted in subsec. (j)(13)(D) for “the Act entitled ‘An Act requiring contracts for the construction, alteration and repair of any public building or public work of the United States to be accompanied by a performance bond protecting the United States and by an additional bond for the protection of persons furnishing material and labor for the construction, alteration, or repair of said public buildings or public works’, approved August 24, 1935 (49 Stat. 793)” on authority of Pub. L. 107–217, § 5(c), Aug. 21, 2002, 116 Stat. 1303, the first section of which enacted Title 40, Public Buildings, Property, and Works.

In subsec. (k)(3), “section 1342 of title 31” substituted for “section 3679(b) of the Revised Statutes (31 U.S.C. 665(b))” on authority of Pub. L. 97–258, § 4(b), Sept. 13, 1982, 96 Stat. 1067, the first section of which enacted Title 31, Money and Finance.

Section 3109 of title 5, referred to in subsec. (k)(4), substituted for “section 15 of the Administrative Expenses Act of 1946 (5 U.S.C. 55a)” on authority of Pub. L. 89–554, § 7(b), Sept. 6, 1966, 80 Stat. 631, the first section of which enacted Title 5, Government Organization and Employees.

Section 5703 of title 5, referred to in subsec. (k)(4), substituted for “section 5 of such Act (5 U.S.C. 73b–2)” on authority of section 7(b) of Pub. L. 89–554, Sept. 6, 1966, 80 Stat. 631, section 1 of which enacted Title 5.

Pub. L. 110–234 and Pub. L. 110–246 made identical amendments to this section. The amendments by Pub. L. 110–234 were repealed by section 4(a) of Pub. L. 110–246.

Prior Provisions

Provisions similar to those comprising subsec. (e) of this section were contained in section 2(a) and (b) of Pub. L. 87–550, July 25, 1962, 76 Stat. 221 (formerly classified to section 637a(a) and (b) of this title) prior to repeal thereof by section 3(b) of Pub. L. 89–409.

Prior similar provisions were contained in section 207 of act July 30, 1953, ch. 282, title II, 67 Stat. 235, as amended by acts Aug. 9, 1955, ch. 628, §§ 2, 5, 69 Stat. 547; Feb. 2, 1956, ch. 29, §§ 2, 3, 70 Stat. 10; Pub. L. 85–335, Feb. 22, 1958, 72 Stat. 27, which was previously classified to this section. See Codification note set out under section 631 of this title.

Amendments

2022—Subsec. (a)(36)(W). Pub. L. 117–166, § 2(a), added subpar. (W).

Subsec. (a)(37)(P). Pub. L. 117–166, § 2(b), added subpar. (P).

Subsec. (b)(16). Pub. L. 117–249 added par. (16) relating to disaster declaration in rural areas.

Pub. L. 117–165 added par. (16) relating to statute of limitations.

2021—Subsec. (a)(36)(A)(iii). Pub. L. 117–6 substituted “June 30, 2021” for “March 31, 2021”.

Subsec. (a)(36)(A)(xvii). Pub. L. 117–2, § 5001(a)(1)(A), added cl. (xvii).

Subsec. (a)(36)(D)(iii)(III). Pub. L. 117–2, § 5001(a)(1)(B)(i), added subcl. (III).

Subsec. (a)(36)(D)(iii)(IV). Pub. L. 117–2, § 5001(b)(1)(A), added subcl. (IV).

Subsec. (a)(36)(D)(iv)(V). Pub. L. 117–2, § 5001(b)(1)(B), added subcl. (V).

Subsec. (a)(36)(D)(v). Pub. L. 117–2, § 5001(b)(1)(C), substituted “subclause (II), (III), or (IV) of clause (iii), subclause (IV) or (V) of clause (iv), clause (vii), or clause (ix)” for “clause (iii)(II), (iv)(IV), or (vii)”.

Subsec. (a)(36)(D)(viii)(II). Pub. L. 117–2, § 5001(b)(1)(D), substituted “business concern made eligible by subclause (II) or (IV) of clause (iii) or subclause (IV) or (V) of clause (iv) of this subparagraph” for “business concern made eligible by clause (iii)(II) or clause (iv)(IV) of this subparagraph” and inserted “or organization” after “business concern” in two places.

Subsec. (a)(36)(D)(ix). Pub. L. 117–2, § 5001(a)(1)(B)(ii), added cl. (ix).

Subsec. (a)(37)(A)(i). Pub. L. 117–2, § 5001(a)(2), inserted “ ‘additional covered nonprofit entity’,” after “the terms”.

Subsec. (a)(37)(A)(iv)(II). Pub. L. 117–2, § 5001(b)(2), substituted “subclause (II), (III), or (IV) of clause (iii), subclause (IV) or (V) of clause (iv), clause (vii), or clause (ix)” for “clause (iii)(II), (iv)(IV), or (vii)”.

Subsec. (a)(37)(J)(iii)(I)(cc). Pub. L. 117–2, § 5001(c)(2), added item (cc).

Subsec. (j)(13)(F)(iii)(I). Pub. L. 116–283, § 866(b)(1), substituted “means—” and items (aa) and (bb) for “means the period beginning on August 13, 2018, and ending on the date on which the Oversight Board established under section 2121 of title 48 terminates.”

Subsec. (j)(13)(F)(iii)(II). Pub. L. 116–283, § 866(b)(2), inserted “or a covered territory business” after “a Puerto Rico business” and, in two places, substituted “either such business” for “the Puerto Rico business”.

2020—Subsec. (a)(2)(A). Pub. L. 116–260, § 326(a)(2), amended subpar. (A) generally. Prior to amendment, text read as follows: “Except as provided in subparagraphs (B), (D), (E), and (F), in an agreement to participate in a loan on a deferred basis under this subsection (including a loan made under the Preferred Lenders Program or the Community Advantage Pilot Program of the Administration), such participation by the Administration shall be equal to 90 percent of the balance of the financing outstanding at the time of disbursement of the loan.”

Pub. L. 116–260, § 326(a)(1), substituted “the Preferred Lenders Program or the Community Advantage Pilot Program of the Administration), such participation by the Administration shall be equal to 90 percent of the balance of the financing outstanding at the time of disbursement of the loan.” for “the Preferred Lenders Program), such participation by the Administration shall be equal to—

“(i) 75 percent of the balance of the financing outstanding at the time of disbursement of the loan, if such balance exceeds $150,000; or

“(ii) 85 percent of the balance of the financing outstanding at the time of disbursement of the loan, if such balance is less than or equal to $150,000.”

Pub. L. 116–136, § 1102(a)(1)(A), substituted “(E), and (F)” for “and (E)” in introductory provisions.

Subsec. (a)(2)(F). Pub. L. 116–136, § 1102(a)(1)(B), added subpar. (F).

Subsec. (a)(7). Pub. L. 116–260, § 334, designated existing provisions as subpar. (A), inserted heading, substituted “The Administrator” for “The Administration”, inserted “and interest” after “principal”, and added subpars. (B) and (C).

Subsec. (a)(31)(A)(iv). Pub. L. 116–260, § 326(b)(2)(B), substituted “guarantee rate of not more than 50 percent.” for “guarantee rate—

“(I) for a loan in an amount less than or equal to $350,000, of not more than 75 percent; and

“(II) for a loan in an amount greater than $350,000, of not more than 50 percent.”

Pub. L. 116–260, § 326(b)(2)(A), substituted “with a guarantee rate—

“(I) for a loan in an amount less than or equal to $350,000, of not more than 75 percent; and

“(II) for a loan in an amount greater than $350,000, of not more than 50 percent.”

for “with a guaranty rate of not more than 50 percent.”

Subsec. (a)(31)(D). Pub. L. 116–136, § 1102(c)(2), as amended by Pub. L. 116–260, § 326(b)(1), substituted “$500,000” for “$1,000,000”.

Pub. L. 116–136, § 1102(c)(1), substituted “$1,000,000” for “$350,000”.

Subsec. (a)(31)(G)(ii), (iii). Pub. L. 116–136, § 1102(d), redesignated cl. (iii) as (ii) and struck out former cl. (ii). Prior to amendment, text read as follows: “If the President’s budget for the upcoming fiscal year, submitted to Congress pursuant to section 1105(a) of title 31, includes a cost for the program established under this subsection that is above zero, the requirements of clause (i) shall not apply to loans made during such upcoming fiscal year.”

Subsec. (a)(36). Pub. L. 116–136, § 1102(a)(2), added par. (36).

Subsec. (a)(36)(A)(iii). Pub. L. 116–260, § 343(a), substituted “March 31, 2021” for “December 31, 2020”.

Pub. L. 116–142, § 3(a), substituted “December 31, 2020” for “June 30, 2020”.

Subsec. (a)(36)(A)(viii)(I)(aa)(EE). Pub. L. 116–260, § 308(a), inserted “or group life, disability, vision, or dental insurance” before “benefits”.

Subsec. (a)(36)(A)(viii)(I)(bb). Pub. L. 116–260, § 344(1), substituted “on an annualized basis, as prorated for the period during which the payments are made or the obligation to make the payments is incurred” for “in 1 year, as prorated for the covered period”.

Subsec. (a)(36)(A)(viii)(II)(aa). Pub. L. 116–260, § 344(2)(A), substituted “$100,000 on an annualized basis, as prorated for the period during which the compensation is paid or the obligation to pay the compensation is incurred” for “an annual salary of $100,000, as prorated for the covered period”.

Subsec. (a)(36)(A)(viii)(II)(bb). Pub. L. 116–260, § 344(2)(B), substituted “applicable period” for “covered period”.

Subsec. (a)(36)(A)(x) to (xii). Pub. L. 116–139, § 101(d)(1), added cls. (x) to (xii).

Subsec. (a)(36)(A)(xiii). Pub. L. 116–260, § 315(a), added cl. (xiii).

Subsec. (a)(36)(A)(xiv). Pub. L. 116–260, § 316(1), added cl. (xiv).

Subsec. (a)(36)(A)(xv). Pub. L. 116–260, § 318(1), added cl. (xv).

Subsec. (a)(36)(A)(xvi). Pub. L. 116–260, § 342(1), added cl. (xvi).

Subsec. (a)(36)(D)(i). Pub. L. 116–260, § 316(2)(A), inserted “housing cooperative,” before “veterans organization,” wherever appearing.

Subsec. (a)(36)(D)(ii)(II). Pub. L. 116–260, § 335(a), substituted “as determined necessary by the Administrator and the Secretary, to establish the applicant as eligible” for “as is necessary to establish such individual as eligible, including payroll tax filings reported to the Internal Revenue Service, Forms 1099–MISC, and income and expenses from the sole proprietorship, as determined by the Administrator and the Secretary”.

Subsec. (a)(36)(D)(iii). Pub. L. 116–260, § 317(a), designated existing provisions as subcl. (I), inserted heading, and added subcl. (II).

Subsec. (a)(36)(D)(iv)(IV). Pub. L. 116–260, § 317(b), added subcl. (IV).

Subsec. (a)(36)(D)(v). Pub. L. 116–260, § 318(2)(A), inserted “or for purposes of determining the number of employees of a housing cooperative or a business concern or organization made eligible for a loan under this paragraph under clause (iii)(II), (iv)(IV), or (vii),” before “the term ‘employee’ ”.

Subsec. (a)(36)(D)(vi). Pub. L. 116–260, § 318(2)(B), inserted “a business concern or organization made eligible for a loan under this paragraph under clause (vii),” after “a nonprofit organization,”.

Pub. L. 116–260, § 316(2)(B), which directed the insertion of “, a housing cooperative,” before “a veterans organization”, was executed by making the insertion before “and a veterans organization” to reflect the probable intent of Congress.

Subsec. (a)(36)(D)(vii). Pub. L. 116–260, § 318(2)(C), added cl. (vii).

Subsec. (a)(36)(D)(viii). Pub. L. 116–260, § 317(c), in cl. (viii) added by section 342(2) of Pub. L. 116–260, designated existing provisions as subcl. (I), inserted heading, substituted “Subject to subclause (II), and notwithstanding” for “Notwithstanding”, and added subcl. (II).

Pub. L. 116–260, § 342(2), added cl. (viii).

Subsec. (a)(36)(E). Pub. L. 116–260, § 313(a)(1), substituted “Except as provided in subparagraph (V), during” for “During” in introductory provisions.