Relief for Small Businesses and Nonprofits Act

Relief for Small Businesses and Nonprofits Act

This bill places restrictions on the collection of debts owed by small businesses and nonprofit organizations during the COVID-19 (i.e., coronavirus disease 2019) emergency period. Among other things, debt collectors may not during such a period

• enforce a security interest through a repossession or foreclosure,
• commence or continue litigation to collect a debt,
• terminate utility service,
• seize assets,
• commence or continue an eviction, or
• charge fees or apply a higher interest rate as a result of nonpayment.

After such a period, debt collectors must provide certain repayment options including extending the repayment period for debts.

Violations of these provisions are subject to civil enforcement.

The Federal Reserve Board must establish a facility to compensate loan holders for losses caused by the suspension of payments.