,i  #aaf? ,,congress  #a/ ,session  ,h4 
,r4 #bca  ,,9 ,,! ,,h\se ,,(            
,,repres5tatives  ,janu>y #c1 #bjai,ms4 
,velzquez 7= h]self & ,mr4 ,s]rano7     
introduc$ ! foll[+ bill2 :i* 0 ref]r$ to
 ! ,committee on ,education & ,labor1 & 
9 addition to ! ,committees on ,ways &  
,means1 & ,small ,bus9ess1 = a p]iod to 
be subsequ5tly det]m9$ by ! ,speak]1 9  
ea* case = consid]ation ( su* provisions
 z fall )9 ! jurisdiction ( ! committee 
conc]n$  ,a ,,bill  ,to am5d ! ,high]   
,education ,act ( #aife to provide loan 
def]m5t & loan cancellation = f\nd]s &  
employees ( small bus9ess />t-ups1 & =  
o!r purposes4  #a4 ,%ort title ,?is ,act
 may be cit$ z ! ,support+ ,am]ica's ,"y
 ,entrepr5eurs ,act ( #bjai4  #b4 ,small
 bus9ess />t-up employee loan def]m5t & 
cancellation  7a7 ,def]m5t ,section     
#dee7;f7 ( ! ,high] ,education ,act (   
#aife 7#bj ,u4,s4,c4 #ajhg;e7f77 is     
am5d$--  7#a7 9 p>agraph 7#a71 by /rik+ 
,a borr[] ( a loan & ins]t+ ,except z   
provid$ 9 p>agraph 7#e71 a borr[] ( a   

loan2 &  7#b7 by add+ at ! end ! foll[+3
  7#e7 ,no int]e/ def]m5t eligibility = 
f\nd]s ( small bus9ess />t-ups ,a borr[]
 ( a loan made "u ?is "p %all be        
eligible = a def]m5t1 dur+ :i* p]iodic  
in/allm5ts ( pr9cipal & int]e/ ne$ n be 
paid1 dur+ any p]iod n 9 excess ( #c    
ye>s dur+ :i* ! borr[] is employ$ z a   
f\nd] ( a small bus9ess />t-up 7z def9$ 
9 subsection 7r77#c774  4  7b7 ,loan    
cancellation ,section #dee ( ! ,high]   
,education ,act ( #aife 7#bj ,u4,s4,c4  
#ajhg;e7 is am5d$ by add+ at ! end !    
foll[+3  7r7 ,loan cancellation = c]ta9 
small bus9ess />t-,up employees  7#a7   
,f\nd] ( a small bus9ess />t-up 9 a     
di/ress$ area  7,a7 ,9 g5]al ,!         
,secret>y %all cancel #bj1jjj ( !       
balance ( int]e/ & pr9cipal due1 9      
accordance ) subp>agraph 7,b71 on any   
eligible ,f$]al ,direct ,loan n 9       
default = a borr[] :o--  7i7 has made   
#bd mon?ly paym5ts on ! eligible ,f$]al 
,direct ,loan aft] ! date ( ! enactm5t (
 ?is subsection pursuant to any "o or a 

comb9ation ( paym5ts "u a repaym5t plan 
"u subsection 7d77#a7 or 7g72  7ii7 has 
be5 employ$ z a f\nd] ( a small bus9ess 
/>t-up 9 a di/ress$ area dur+ ! p]iod 9 
:i* ! borr[] makes ea* ( ! #bd paym5ts2 
7iii7 is employ$ z a f\nd] ( a small    
bus9ess />t-up 9 a di/ress$ area at ! "t
 ( su* cancellation2 &  7iv7 is approv$ 
= loan cancellation by ! "y entrepr5eurs
 bus9ess c5t] "u section #dg ( ! ,small 
,bus9ess ,act 7#af ,u4,s4,c4 #fca et    
seq474  7,b7 ,loan cancellation am\nt   
7i7 ,9 g5]al ,aft] ! conclusion ( !     
employm5t p]iod describ$ 9 subp>agraph  
7,a71 ! ,secret>y %all cancel !         
obligation to repay #bj1jjj ( ! balance 
( int]e/ & pr9cipal due z ( ! "t ( su*  
cancellation1 on ! eligible ,f$]al      
,direct ,loans made to ! borr[] "u ?is  
"p4  7ii7 ,limitation ,a borr[] may n   
receive an aggregate am\nt ( m ?an      
#bj1jjj "u ?is subp>agraph4  7,c7       
,ineligibility = d\ble b5efits ,no      
borr[] may1 = ! same s]vice1 receive a  
r$uction ( loan obligations "u bo? ?is  

p>agraph &--  7i7 p>agraph 7#b72  7ii7  
subsection 7m72 or  7iii7 section       
#dbh;,j1 #dbh,k1 #dbh,l1 or #dfj4  7#b7 
,employee ( a small bus9ess />t-up  7,a7
 ,9 g5]al ,! ,secret>y %all cancel      
#c1jjj ( ! balance ( int]e/ & pr9cipal  
due1 9 accordance ) subp>agraph 7,b71 on
 any eligible ,f$]al ,direct ,loan n 9  
default = a borr[] :o--  7i7 has made   
#ab mon?ly paym5ts on ! eligible ,f$]al 
,direct ,loan aft] ! date ( ! enactm5t (
 ?is subsection pursuant to any "o or a 
comb9ation ( paym5ts "u a repaym5t plan 
"u subsection 7d77#a7 or 7g72  7ii7 has 
be5 employ$ 9 a small bus9ess />t-up job
 dur+ ! p]iod 9 :i* ! borr[] makes ea* (
 ! #ab paym5ts2 &  7iii7 is employ$ 9 a 
small bus9ess />t-up job at ! "t ( su*  
cancellation4  7,b7 ,loan cancellation  
am\nt  7i7 ,9 g5]al ,aft] ! conclusion (
 ! employm5t p]iod describ$ 9           
subp>agraph 7,a71 ! ,secret>y %all      
cancel ! obligation to repay #c1jjj ( ! 
balance ( int]e/ & pr9cipal due z ( ! "t
 ( su* cancellation1 on ! eligible      

,f$]al ,direct ,loans made to ! borr[]  
"u ?is "p4  7ii7 ,limitation ,a borr[]  
may n receive an aggregate am\nt ( m ?an
 #ae1jjj "u ?is subp>agraph4  7,c7      
,ineligibility = d\ble b5efits ,no      
borr[] may1 = ! same s]vice1 receive a  
r$uction ( loan obligations "u bo? ?is  
p>agraph &--  7i7 p>agraph 7#a72  7ii7  
subsection 7m72 or  7iii7 section       
#dbh;,j1 #dbh,k1 #dbh,l1 or #dfj4  7#c7 
,def9itions ,9 ?is subsection3  7,a7    
,di/ress$ area ,! t]m di/ress$ area     
means an area id5tifi$ "u section #di ( 
! ,small ,bus9ess ,act4  7,b7 ,eligible 
,f$]al ,direct ,loan ,! t]m eligible    
,f$]al ,direct ,loan means a ,f$]al     
,direct ,/af=d ,loan1 ,f$]al ,direct    
,,plus ,loan1 or ,f$]al ,direct         
,unsubsidiz$ ,/af=d ,loan1 or a ,f$]al  
,direct ,consolidation ,loan4  7,c7     
,f\nd] ,! t]m f\nd] %all h ! mean+ giv5 
su* t]m by ! ,adm9i/rator ( ! ,small    
,bus9ess ,adm9i/ration "u ?is p>agraph4 
7,d7 ,small bus9ess />t-up ,! t]m small 
bus9ess />t-up means a bus9ess t is     

c]tifi$ by ! "y entrepr5eurs bus9ess    
c5t] "u section #di ( ! ,small ,bus9ess 
,act4  7,e7 ,small bus9ess />t-up job ,!
 t]m small bus9ess />t-up job means a   
full-"t job z an employee ( a small     
bus9ess />t-up4  4  #c4 ,"y entrepr5eurs
 bus9ess c5t] ,! ,small ,bus9ess ,act   
7#ae ,u4,s4,c4 #fca et seq47 is am5d$-- 
7#a7 by r$esignat+ section #di z section
 #ej2 &  7#b7 by ins]t+ aft] section #dh
 ! foll[+ new section3  #di4 ,"y        
entrepr5eurs bus9ess c5t]  7a7          
,e/abli%m5t ,!re is e/abli%$ )9 !       
,adm9i/ration a "y entrepr5eurs bus9ess 
c5t] t %all1 = purposes ( loan          
cancellation = />t-up employees e/abli%$
 "u subsection 7r7 ( section #dee ( !   
,high] ,education ,act ( #aife--  7#a7  
c]tify small bus9ess />t-ups "u         
subsection 7b72  7#b7 id5tify di/ress$  
areas "u subsection 7c72 &  7#c7 approve
 loan cancellation = f\nd]s ( small     
bus9ess />t-ups 9 di/ress$ areas "u     
subsection 7d74  7b7 ,c]tification  7#a7
 ,application ,to be c]tifi$ by ! "y    

entrepr5eurs bus9ess c5t]1 a small      
bus9ess />t-up %all submit an           
application to ! ,adm9i/rator t         
includes--  7,a7 a #e-ye> bus9ess plan =
 su* small bus9ess />t-up2 &  7,b7 !    
numb] ( employees ! small bus9ess />t-up
 int5ds to employ on a ye>ly basis4     
7#b7 ,requirem5ts ,! "y entrepr5eurs    
bus9ess c5t] may n c]tify a small       
bus9ess />t-up unless su* small bus9ess 
/>t-up1 on ! date ! application is      
submitt$ "u p>agraph 7#a7--  7,a7 has a 
f\nd] :o is a rec5t graduate ( a #d-ye> 
in/itution ( high] education2  7,b7 is a
 />t-up = :i* at lea/ #ej p]c5t ( !     
employees ( ! />t-up are rec5t graduates
 ( su* an in/itution4  7c7 ,di/ress$    
area  7#a7 ,9 g5]al ,n less ?an once e  
#c ye>s aft] ! date ( ! enactm5t ( ?is  
section1 ! "y entrepr5eurs bus9ess c5t] 
%all id5tify & make publically available
 on ! website ( ! ,adm9i/ration a li/ ( 
di/ress$ areas4  7#b7 ,requirem5ts ,a   
di/ress$ area id5tifi$ "u p>agraph 7#a7 
%all be a c\nty or equival5t division ( 

local gov]nm5t ( a ,/ate 9 :i* ! small  
bus9ess conc]n is locat$--  7,a7 t has1 
= ! mo/ rec5t #bd-mon? p]iod = :i*      
/ati/ics are available-- 7i7 a p] capita
 income ( #hj p]c5t or less ( ! national
 av]age2 or  7ii7 an unemploym5t rate t 
is #a p]c5t great] ?an ! national       
av]age2 &  7,b7 = :i* ! "y entrepr5eurs 
bus9ess c5t] det]m9es w\ld economically 
b5efit f hav+ small bus9ess />t-ups     
e/abli%$ 9 su* area4  7d7 ,loan         
cancellation = f\nd]s ( a small bus9ess 
/>t-,up 9 a di/ress$ area ,= purposes ( 
loan cancellation "u subsection 7r77#a7 
( section #dee ( ! ,high] ,education    
,act ( #aife1 ! "y entrepr5eurs bus9ess 
c5t] %all approve a f\nd] ( a small     
bus9ess />t-up 9 a di/ress$ area if su* 
f\nd]--  7#a7 e/abli%$ a small bus9ess  
/>t-up t-- 7,a7 on ! date su* small     
bus9ess />t-up 0 e/abli%$1 0 locat$ 9 a 
di/ress$ area id5tifi$ by ! "y          
entrepr5eurs bus9ess c5t] "u subsection 
7c7 n m ?an #c ye>s be=e su* date (     
e/abli%m5t2  7,b7 0 c]tifi$ "u          

subsection 7b72 &  7,c7 on ! date (     
approval "u ?is subsection1 has be5     
op]at+ cont9u\sly = n less ?an #e ye>s2 
&  7#b7 0 employ$ z a f\nd] ( a small   
bus9ess />t-up 9 a di/ress$ area dur+ ! 
p]iod 9 :i* su* f\nd] made ! #bd paym5ts
 describ$ 9 subsection 7r77#a77;,a7 (   
su* section #dee4  7e7 ,def9itions ,9   
?is section3 7#a7 ,in/itution ( high]   
education ,! t]m in/itution ( high]     
education has ! mean+ giv5 su* t]m 9    
section #ajb ( ! ,high] ,education ,act 
7#bj ,u4,s4,c4 #ajjb74  7#b7 ,small     
bus9ess />t-up ,! t]m small bus9ess     
/>t-up means a small bus9ess conc]n t-- 
7,a7 is n yet 9 exi/5ce2 or  7,b7 has   
be5 9 exi/5ce = n m ?an #c ye>s4  4  #d4
 ,treatm5t ( loan cancellation  7a7 ,9  
g5]al ,section #ajh7;f7 ( ! ,int]nal    
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+ new p>agraph3  7#e7   
,cancellation ( c]ta9 ,f$]al /ud5t loans
 ,9 ! case ( an individual1 gross income
 %all n include ! dis*>ge 79 :ole or 9  
"p7 ( any /ud5t loan pursuant to !      

cancellation 79 :ole or 9 "p7 ( su* loan
 by ! ,secret>y ( ,education "u         
subsection 7r7 ( section #dee ( ! ,high]
 ,education ,act ( #aife 7#bj ,u4,s4,c4 
#ajhg;e74  4  7b7 ,effective date ,!    
am5dm5t made by ?is section %all apply  
to dis*>ges ( indebt$ness occurr+ aft] !
 date ( ! enactm5t ( ?is ,act4