; (ii) registers at least 1 business entity in a State during the 18-month period ending on the date on which the borrower requests a deferment under paragraph (2)(E); (iii) raises capital investment of not less than $15,000 for such business entity; and (iv) has an outstanding balance of principal and interest on a loan made under this part of not less than $5,000. (B) Minimum employee requirement A borrower granted deferment under paragraph (2)(E) shall not be eligible to continue such deferment unless, on the date that is 1 year after the date on which such deferment is granted, the borrower— (i) employs at the business entity described in subparagraph (A)(ii) not fewer than 1 full-time employee who is not the borrower or relative of the borrower; and (ii) pays such employees at a rate not less than the minimum wage prescribed by the State or locality in which the business entity is located. . 3. Loan cancellation for entrepreneurs Part D of title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1087a et seq.) is further amended by adding at the end the following: 460A. Loan cancellation for entrepreneurs (a) Program authorized The Secretary is authorized to carry out a program of canceling the obligation to repay a qualified loan amount in accordance with subsection (b) for Federal Direct Stafford Loans and Federal Direct Unsubsidized Stafford Loans made under this part for any borrower who— (1) for not less than a 3-year period and not more than a 10-year period ending on the date on which the borrower requests a cancellation under this section, has owned and controlled a qualified HUBZone small business concern (as determined by the Administrator of the Small Business Administration), which has been registered as business in a State