,i #aafth ,,congress #ast ,session ,h4 ,r4 #bca ,,in ,,the ,,house ,,of ,,representatives ,january #c1 #bjai,ms4 ,velzquez 7for herself and ,mr4 ,serrano7 introduced the following bill2 which was referred to the ,committee on ,education and ,labor1 and in addition to the ,committees on ,ways and ,means1 and ,small ,business1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to amend the ,higher ,education ,act of #aife to provide loan deferment and loan cancellation for founders and employees of small business start-ups1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,supporting ,america's ,young ,entrepreneurs ,act of #bjai4 #b4 ,small business start-up employee loan deferment and cancellation 7a7 ,deferment ,section #dee7;f7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;e7f77 is amended-- 7#a7 in paragraph 7#a71 by striking ,a borrower of a loan and inserting ,except as provided in paragraph 7#e71 a borrower of a loan2 and 7#b7 by adding at the end the following3 7#e7 ,no interest deferment eligibility for founders of small business start-ups ,a borrower of a loan made under this part shall be eligible for a deferment1 during which periodic installments of principal and interest need not be paid1 during any period not in excess of #c years during which the borrower is employed as a founder of a small business start-up 7as defined in subsection 7r77#c774 4 7b7 ,loan cancellation ,section #dee of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;e7 is amended by adding at the end the following3 7r7 ,loan cancellation for certain small business start-,up employees 7#a7 ,founder of a small business start-up in a distressed area 7,a7 ,in general ,the ,secretary shall cancel #bj1jjj of the balance of interest and principal due1 in accordance with subparagraph 7,b71 on any eligible ,federal ,direct ,loan not in default for a borrower who-- 7i7 has made #bd monthly payments on the eligible ,federal ,direct ,loan after the date of the enactment of this subsection pursuant to any one or a combination of payments under a repayment plan under subsection 7d77#a7 or 7g72 7ii7 has been employed as a founder of a small business start-up in a distressed area during the period in which the borrower makes each of the #bd payments2 7iii7 is employed as a founder of a small business start-up in a distressed area at the time of such cancellation2 and 7iv7 is approved for loan cancellation by the young entrepreneurs business center under section #dg of the ,small ,business ,act 7#af ,u4,s4,c4 #fca et seq474 7,b7 ,loan cancellation amount 7i7 ,in general ,after the conclusion of the employment period described in subparagraph 7,a71 the ,secretary shall cancel the obligation to repay #bj1jjj of the balance of interest and principal due as of the time of such cancellation1 on the eligible ,federal ,direct ,loans made to the borrower under this part4 7ii7 ,limitation ,a borrower may not receive an aggregate amount of more than #bj1jjj under this subparagraph4 7,c7 ,ineligibility for double benefits ,no borrower may1 for the same service1 receive a reduction of loan obligations under both this paragraph and-- 7i7 paragraph 7#b72 7ii7 subsection 7m72 or 7iii7 section #dbh;,j1 #dbh,k1 #dbh,l1 or #dfj4 7#b7 ,employee of a small business start-up 7,a7 ,in general ,the ,secretary shall cancel #c1jjj of the balance of interest and principal due1 in accordance with subparagraph 7,b71 on any eligible ,federal ,direct ,loan not in default for a borrower who-- 7i7 has made #ab monthly payments on the eligible ,federal ,direct ,loan after the date of the enactment of this subsection pursuant to any one or a combination of payments under a repayment plan under subsection 7d77#a7 or 7g72 7ii7 has been employed in a small business start-up job during the period in which the borrower makes each of the #ab payments2 and 7iii7 is employed in a small business start-up job at the time of such cancellation4 7,b7 ,loan cancellation amount 7i7 ,in general ,after the conclusion of the employment period described in subparagraph 7,a71 the ,secretary shall cancel the obligation to repay #c1jjj of the balance of interest and principal due as of the time of such cancellation1 on the eligible ,federal ,direct ,loans made to the borrower under this part4 7ii7 ,limitation ,a borrower may not receive an aggregate amount of more than #ae1jjj under this subparagraph4 7,c7 ,ineligibility for double benefits ,no borrower may1 for the same service1 receive a reduction of loan obligations under both this paragraph and-- 7i7 paragraph 7#a72 7ii7 subsection 7m72 or 7iii7 section #dbh;,j1 #dbh,k1 #dbh,l1 or #dfj4 7#c7 ,definitions ,in this subsection3 7,a7 ,distressed area ,the term distressed area means an area identified under section #di of the ,small ,business ,act4 7,b7 ,eligible ,federal ,direct ,loan ,the term eligible ,federal ,direct ,loan means a ,federal ,direct ,stafford ,loan1 ,federal ,direct ,,plus ,loan1 or ,federal ,direct ,unsubsidized ,stafford ,loan1 or a ,federal ,direct ,consolidation ,loan4 7,c7 ,founder ,the term founder shall have the meaning given such term by the ,administrator of the ,small ,business ,administration under this paragraph4 7,d7 ,small business start-up ,the term small business start-up means a business that is certified by the young entrepreneurs business center under section #di of the ,small ,business ,act4 7,e7 ,small business start-up job ,the term small business start-up job means a full-time job as an employee of a small business start-up4 4 #c4 ,young entrepreneurs business center ,the ,small ,business ,act 7#ae ,u4,s4,c4 #fca et seq47 is amended-- 7#a7 by redesignating section #di as section #ej2 and 7#b7 by inserting after section #dh the following new section3 #di4 ,young entrepreneurs business center 7a7 ,establishment ,there is established within the ,administration a young entrepreneurs business center that shall1 for purposes of loan cancellation for start-up employees established under subsection 7r7 of section #dee of the ,higher ,education ,act of #aife-- 7#a7 certify small business start-ups under subsection 7b72 7#b7 identify distressed areas under subsection 7c72 and 7#c7 approve loan cancellation for founders of small business start-ups in distressed areas under subsection 7d74 7b7 ,certification 7#a7 ,application ,to be certified by the young entrepreneurs business center1 a small business start-up shall submit an application to the ,administrator that includes-- 7,a7 a #e-year business plan for such small business start-up2 and 7,b7 the number of employees the small business start-up intends to employ on a yearly basis4 7#b7 ,requirements ,the young entrepreneurs business center may not certify a small business start-up unless such small business start-up1 on the date the application is submitted under paragraph 7#a7-- 7,a7 has a founder who is a recent graduate of a #d-year institution of higher education2 7,b7 is a start-up for which at least #ej percent of the employees of the start-up are recent graduates of such an institution4 7c7 ,distressed area 7#a7 ,in general ,not less than once every #c years after the date of the enactment of this section1 the young entrepreneurs business center shall identify and make publically available on the website of the ,administration a list of distressed areas4 7#b7 ,requirements ,a distressed area identified under paragraph 7#a7 shall be a county or equivalent division of local government of a ,state in which the small business concern is located-- 7,a7 that has1 for the most recent #bd-month period for which statistics are available-- 7i7 a per capita income of #hj percent or less of the national average2 or 7ii7 an unemployment rate that is #a percent greater than the national average2 and 7,b7 for which the young entrepreneurs business center determines would economically benefit from having small business start-ups established in such area4 7d7 ,loan cancellation for founders of a small business start-,up in a distressed area ,for purposes of loan cancellation under subsection 7r77#a7 of section #dee of the ,higher ,education ,act of #aife1 the young entrepreneurs business center shall approve a founder of a small business start-up in a distressed area if such founder-- 7#a7 established a small business start-up that-- 7,a7 on the date such small business start-up was established1 was located in a distressed area identified by the young entrepreneurs business center under subsection 7c7 not more than #c years before such date of establishment2 7,b7 was certified under subsection 7b72 and 7,c7 on the date of approval under this subsection1 has been operating continuously for not less than #e years2 and 7#b7 was employed as a founder of a small business start-up in a distressed area during the period in which such founder made the #bd payments described in subsection 7r77#a77;,a7 of such section #dee4 7e7 ,definitions ,in this section3 7#a7 ,institution of higher education ,the term institution of higher education has the meaning given such term in section #ajb of the ,higher ,education ,act 7#bj ,u4,s4,c4 #ajjb74 7#b7 ,small business start-up ,the term small business start-up means a small business concern that-- 7,a7 is not yet in existence2 or 7,b7 has been in existence for not more than #c years4 4 #d4 ,treatment of loan cancellation 7a7 ,in general ,section #ajh7;f7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new paragraph3 7#e7 ,cancellation of certain ,federal student loans ,in the case of an individual1 gross income shall not include the discharge 7in whole or in part7 of any student loan pursuant to the cancellation 7in whole or in part7 of such loan by the ,secretary of ,education under subsection 7r7 of section #dee of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;e74 4 7b7 ,effective date ,the amendment made by this section shall apply to discharges of indebtedness occurring after the date of the enactment of this ,act4