; or (ii) 85 percent of the balance of the financing outstanding at the time of disbursement of the loan, if such balance is less than or equal to $150,000. . (b) Express loans (1) Loan amount Section 1102(c)(2) of the CARES Act ( Public Law 116–36 ; 15 U.S.C. 636 note) is amended to read as follows: (2) Prospective repeal Section 7(a)(31)(D) of the Small Business Act (15 U.S.C. (A) by striking $1,000,000 and inserting $500,000 , effective during the period beginning on January 1, 2021, and ending on September 30, 2021; and (B) (B) by striking $500,000 and inserting $350,000 , effective October 1, 2021. . (2) Guarantee rates (A) Temporary modification Section 7(a)(31)(A)(iv) of the Small Business Act ( 15 U.S.C. 636(a)(31)(A)(iv) ) is amended by striking with a guaranty rate of not more than 50 percent. and inserting the following: with a guarantee rate— (I) for a loan in an amount less than or equal to $350,000, of not more than 75 percent; and (II) for a loan in an amount greater than $350,000, of not more than 50 percent. . (B) Prospective repeal Effective October 1, 2021, section 7(a)(31)(A)(iv) of the Small Business Act ( 15 U.S.C. 636(a)(31) ), as amended by subparagraph (A), is amended by striking guarantee rate and all that follows through the period at the end and inserting guarantee rate of not more than 50 percent. . 604. Flexibility in deferral of payments of 7(a) loans Section 7(a)(7) of the Small Business Act ( 15 U.S.C. 636(a)(7) ) is amended— (1) by striking The Administration and inserting (A) In general.— The Administrator ; (2) by inserting and interest after principal ; and (3) by adding at the end the following new subparagraphs: (B) Deferral requirements With respect to a deferral provided under this paragraph, the Administrator may allow lenders under this subsection— (i) to provide full payment deferment relief (including payment of principal and interest) for a period of not more than 1 year