; and (ii) the term qualifying small business startup borrower means a borrower of a loan made under this part whose employment as a small business startup founder or full-time employee is approved by a small business development center under section 21(o)(5) of the Small Business Act ( 15 U.S.C. 648(o)(5) ). . (b) Loan cancellation Section 455 of the Higher Education Act of 1965 ( 20 U.S.C. 1087e ) is amended by adding at the end the following: (r) Loan cancellation for founders and employees of small business startups in distressed areas (1) Loan cancellation (A) In general The Secretary shall cancel the balance of interest and principal due, subject to subparagraph (B), on any eligible Federal Direct Loan not in default for a borrower who— (i) at the time of such cancellation, is employed as a founder or full-time employee of a small business startup in a distressed area who— (I) has been approved for loan cancellation by a small business development center under section 21(o)(6) of the Small Business Act ( 15 U.S.C. 648(o)(6) ); and (II) began such employment during the 5-year period beginning on the date that the small business startup was established (as determined by such small business development center)