1. Short title This Act may be cited as the Recent Grads in Start-Ups and Innovation Act . 2. No interest deferment eligibility for owners of certain small businesses (a) Amendments Section 455(f)(2) of the Higher Education Act of 1965 ( 20 U.S.C. 1087e(f)(2) ) is amended— (1) by striking or at the end of subparagraph (C); (2) by striking the period at the end of subparagraph (D) and inserting ; or ; and (3) by adding at the end the following: (E) not in excess of 4 years during which the borrower is the owner of a small business concern (as defined in section 3 of the Small Business Act) that— (i) has at least one employee other than the owner; and (ii) has its principal place of business located in a qualified opportunity zone (as defined in section 1400Z–1 of the Internal Revenue Code of 1986). . (b) Effective date The amendments made by this section shall take effect 1 year after the date of enactment of this Act. 3. Report (a) In general Not later than 1 year after the first deferment is granted under section 455(f)(2)(E) of the Higher Education Act of 1965 ( 20 U.S.C. 1087e(f)(2) ), as added by this Act, the Secretary of Education, in coordination with the Small Business Administration, shall submit a report to Congress on— (1) the number of recent college graduates who applied to receive a deferment under such section, disaggregated by— (A) the number of such individuals who were granted such a deferment; and (B) the number of such individuals who were not granted such a deferment; (2) a description of the recent college graduates who were granted such a deferment, disaggregated by— (A) the demographic information of the graduate; (B) the type of small business concern for which the deferment was granted; (C) the location of the small business concern; (D) the number of jobs created by the small business concern; and (E) any relevant information on the growth of the small business concern