Section 1 Short title
This Act may be cited as the “Recent Grads in Start-Ups and Innovation Act”.
Recent Grads in Start-Ups and Innovation Act
A BILL
To amend the Higher Education Act of 1965 to provide no interest deferment eligibility for certain small business concerns, and for other purposes.
Sec. 2 No interest deferment eligibility for owners of certain small businesses
Amendments— Section 455(f)(2) of the Higher Education Act of 1965 (20 U.S.C. 1087e(f)(2)) is amended—
by striking “or” at the end of subparagraph (C);
by striking the period at the end of subparagraph (D) and inserting “; or”; and
by adding at the end the following:
“(E) not in excess of 4 years during which the borrower is the owner of a small business concern (as defined in section 3 of the Small Business Act) that—
“(i) has at least one employee other than the owner; and
“(ii) has its principal place of business located in a qualified opportunity zone (as defined in section 1400Z–1 of the Internal Revenue Code of 1986).”
Effective date— The amendments made by this section shall take effect 1 year after the date of enactment of this Act.
Sec. 3 Report
In general— Not later than 1 year after the first deferment is granted under section 455(f)(2)(E) of the Higher Education Act of 1965 (20 U.S.C. 1087e(f)(2)), as added by this Act, the Secretary of Education, in coordination with the Small Business Administration, shall submit a report to Congress on—
the number of recent college graduates who applied to receive a deferment under such section, disaggregated by—
the number of such individuals who were granted such a deferment; and
the number of such individuals who were not granted such a deferment;
a description of the recent college graduates who were granted such a deferment, disaggregated by—
the demographic information of the graduate;
the type of small business concern for which the deferment was granted;
the location of the small business concern;
the number of jobs created by the small business concern; and
any relevant information on the growth of the small business concern; and
recommendations to improve or create more awareness of such deferment program.
Definition— In this section:
Institution of higher education— The term institution of higher education has the meaning given the term in section 102 of the Higher Education Act of 1965 (20 U.S.C. 1002).
Recent college graduate— The term recent college graduate means an individual who has been a graduate of an institution of higher education with an associate or baccalaureate degree for not more than 2 years.
Small business concern— The term small business concern has the meaning given under section 3 of the Small Business Act (15 U.S.C. 632).