Section 1 Short title
This Act may be cited as the “Disaster Loan Forgiveness Act”.
Disaster Loan Forgiveness Act
A BILL
To amend the Small Business Act to provide for cancellation or repayment for certain Small Business Administration disaster loans, and for other purposes.
Sec. 2 Cancellation or repayment for certain Small Business Administration disaster loans
Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) is amended—
by redesignating the second paragraph (16) (relating to statute of limitations) as paragraph (17); and
by inserting after paragraph (17), as so redesignated, the following new paragraph:
“(17) Cancellation or repayment for certain loans
“(A) In general—The Administrator may cancel or repay an amount described under subparagraph (B) of the balance of interest and principal due on a loan made under paragraph (1)(A) for a borrower described in such subparagraph.
“(B) Amounts—The amounts described under this paragraph are as follows:
“(i) With respect to borrower who is an individual—
“(I) with an income less than or equal to 400 percent of the poverty line applicable to the borrower's family size as determined in accordance with section 673(2) of the Community Services Block Grant Act, 100 percent of such balance; and
“(II) with an income greater than 400 percent of such poverty line and less than $250,000, 50 percent of such balance.
“(ii) With respect to a borrower that is a small business concern or a small nonprofit organization (as defined by the Administrator), not more than 50 percent of such balance.”