; and (B) if the Administrator verifies the information submitted in such application, the young entrepreneurs business center shall approve such an employee. (3) Submission The young entrepreneurs business center shall submit to the Secretary of Education any approval for loan cancellation made under this subsection. (e) Termination An approval made under this section shall terminate 5 years after the date of submission to the Secretary of Education under subsection (d)(3). (f) Definitions In this section: (1) Distressed area business The term distressed area business means a small business concern located in a distressed area (as identified under subsection (c)) that has been in operation for not more than 8 years as of the date of submission of an application under subsection (b). (2) Institution of higher education The term institution of higher education has the meaning given such term in section 102 of the Higher Education Act. (3) Small business start-up The term small business start-up means a small business concern that, as of the date of submission of an application under subsection (b)— (A) does not exist; or (B) has been in existence for not more than 3 years. . 4. Treatment of loan cancellation (a) In general Section 108(f) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (6) Cancellation of certain Federal student loans In the case of an individual, gross income shall not include the discharge (in whole or in part) of any student loan pursuant to the cancellation (in whole or in part) of such loan by the Secretary of Education under subsection (r) of section 455 of the Higher Education Act of 1965 ( 20 U.S.C. 1087e ). . (b) Effective date The amendment made by this section shall apply to discharges of indebtedness occurring after the date of the enactment of this Act.