Section 1 Short title
This Act may be cited as the “EIDL Relief Act”.
EIDL Relief Act
A BILL
To require the Administrator of the Small Business Administration to modify the interest rate for eligible loans made to borrowers experiencing short-term financial challenges, and for other purposes.
Sec. 2 Modification to interest rate for eligible loans made to borrowers experiencing short-term financial challenges
In general— Notwithstanding section 7(d)(5) of the Small Business Act (15 U.S.C. 636(d)(5)), the Administrator shall carry out a program under which, during the 12-month period beginning on the date of the enactment of this Act—
the interest rate on the Federal share of an eligible loan made to an eligible borrower is zero percent; and
the monthly payment for such eligible loan shall be the greater of—
an amount equal to 10 percent of the principal for such eligible loan; or
$25.
Applicability— The requirements of this section shall apply with respect to any interest due on an eligible loan on or after the date of the enactment of this Act.
Authorization of appropriations— There is authorized to be appropriated to the Administrator of the Small Business Administration such sums as may be necessary to carry out this section.
Definitions— In this Act:
Covered period— The term covered period has the meaning given in section 1110(a) of the CARES Act (15 U.S.C. 9009(a)).
Eligible borrower— The term eligible borrower means a recipient of an eligible loan, if the Administrator has determined—
that such recipient is experiencing short-term financial challenges; and
participation in the program described in subsection (a) is necessary for such recipient to avoid severe financial hardship.
Eligible loan— The term eligible loan means a loan made under section 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2)) in response to COVID–19 during the covered period.