SUBCHAPTER I—KEEPING AMERICAN WORKERS PAID AND EMPLOYED
§9001. Definitions
In this title— 1
(1) the terms "Administration" and "Administrator" mean the Small Business Administration and the Administrator thereof, respectively; and
(2) the term "small business concern" has the meaning given the term in
(
References in Text
This title, referred to in text, is title I of div. A of
Short Title of 2020 Amendment
Short Title
1 See References in Text note below.
§9002. Entrepreneurial development
(a) Definitions
In this section—
(1) the term "covered small business concern" means a small business concern that has experienced, as a result of COVID–19—
(A) supply chain disruptions, including changes in—
(i) quantity and lead time, including the number of shipments of components and delays in shipments;
(ii) quality, including shortages in supply for quality control reasons; and
(iii) technology, including a compromised payment network;
(B) staffing challenges;
(C) a decrease in gross receipts or customers; or
(D) a closure;
(2) the term "resource partner" means—
(A) a small business development center; and
(B) a women's business center;
(3) the term "small business development center" has the meaning given the term in
(4) the term "women's business center" means a women's business center described in
(b) Education, training, and advising grants
(1) In general
The Administration may provide financial assistance in the form of grants to resource partners to provide education, training, and advising to covered small business concerns.
(2) Use of funds
Grants under this subsection shall be used for the education, training, and advising of covered small business concerns and their employees on—
(A) accessing and applying for resources provided by the Administration and other Federal resources relating to access to capital and business resiliency;
(B) the hazards and prevention of the transmission and communication of COVID–19 and other communicable diseases;
(C) the potential effects of COVID–19 on the supply chains, distribution, and sale of products of covered small business concerns and the mitigation of those effects;
(D) the management and practice of telework to reduce possible transmission of COVID–19;
(E) the management and practice of remote customer service by electronic or other means;
(F) the risks of and mitigation of cyber threats in remote customer service or telework practices;
(G) the mitigation of the effects of reduced travel or outside activities on covered small business concerns during COVID–19 or similar occurrences; and
(H) any other relevant business practices necessary to mitigate the economic effects of COVID–19 or similar occurrences.
(3) Grant determination
(A) Small business development centers
The Administration shall award 80 percent of funds authorized to carry out this subsection to small business development centers, which shall be awarded pursuant to a formula jointly developed, negotiated, and agreed upon, with full participation of both parties, between the association formed under
(B) Women's business centers
The Administration shall award 20 percent of funds authorized to carry out this subsection to women's business centers, which shall be awarded pursuant to a process established by the Administration in consultation with recipients of assistance.
(C) No matching funds required
Matching funds shall not be required for any grant under this subsection.
(4) Goals and metrics
(A) In general
Goals and metrics for the funds made available under this subsection shall be jointly developed, negotiated, and agreed upon, with full participation of both parties, between the resource partners and the Administrator, which shall—
(i) take into consideration the extent of the circumstances relating to the spread of COVID–19, or similar occurrences, that affect covered small business concerns located in the areas covered by the resource partner, particularly in rural areas or economically distressed areas;
(ii) generally follow the use of funds outlined in paragraph (2), but shall not restrict the activities of resource partners in responding to unique situations; and
(iii) encourage resource partners to develop and provide services to covered small business concerns.
(B) Public availability
The Administrator shall make publicly available the methodology by which the Administrator and resource partners jointly develop the metrics and goals described in subparagraph (A).
(c) Resource partner association grants
(1) In general
The Administrator may provide grants to an association or associations representing resource partners under which the association or associations shall establish a single centralized hub for COVID–19 information, which shall include—
(A) 1 online platform that consolidates resources and information available across multiple Federal agencies for small business concerns related to COVID–19; and
(B) a training program to educate resource partner counselors, members of the Service Corps of Retired Executives established under
(2) Goals and metrics
Goals and metrics for the funds made available under this subsection shall be jointly developed, negotiated, and agreed upon, with full participation of both parties, between the association or associations receiving a grant under this subsection and the Administrator.
(d) Report
Not later than 6 months after March 27, 2020, and annually thereafter, the Administrator shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report that describes—
(1) with respect to the initial year covered by the report—
(A) the programs and services developed and provided by the Administration and resource partners under subsection (b);
(B) the initial efforts to provide those services under subsection (b); and
(C) the online platform and training developed and provided by the Administration and the association or associations under subsection (c); and
(2) with respect to the subsequent years covered by the report—
(A) with respect to the grant program under subsection (b)—
(i) the efforts of the Administrator and resource partners to develop services to assist covered small business concerns;
(ii) the challenges faced by owners of covered small business concerns in accessing services provided by the Administration and resource partners;
(iii) the number of unique covered small business concerns that were served by the Administration and resource partners; and
(iv) other relevant outcome performance data with respect to covered small business concerns, including the number of employees affected, the effect on sales, the disruptions of supply chains, and the efforts made by the Administration and resource partners to mitigate these effects; and
(B) with respect to the grant program under subsection (c)—
(i) the efforts of the Administrator and the association or associations to develop and evolve an online resource for small business concerns; and
(ii) the efforts of the Administrator and the association or associations to develop a training program for resource partner counselors, including the number of counselors trained.
(
§9003. State trade expansion program
(a) In general
Notwithstanding paragraph (3)(C)(iii) of
(b) Reimbursement
The Administrator shall reimburse any recipient of assistance under
(
§9004. Waiver of matching funds requirement under the Women's Business Center program
During the 3-month period beginning on March 27, 2020, the requirement relating to obtaining cash contributions from non-Federal sources under
(
§9005. Loan forgiveness
(a) Definitions
In this section—
(1) the term "covered loan" means a loan guaranteed under paragraph (36) of
(2) the term "covered mortgage obligation" means any indebtedness or debt instrument incurred in the ordinary course of business that—
(A) is a liability of the borrower;
(B) is a mortgage on real or personal property; and
(C) was incurred before February 15, 2020;
(3) the term "covered period" means, subject to subsection (l), the period beginning on the date of the origination of a covered loan and ending the earlier of—
(A) the date that is 24 weeks after such date of origination; or
(B) December 31, 2020;
(4) the term "covered rent obligation" means rent obligated under a leasing agreement in force before February 15, 2020;
(5) the term "covered utility payment" means payment for a service for the distribution of electricity, gas, water, transportation, telephone, or internet access for which service began before February 15, 2020;
(6) the term "eligible recipient" means the recipient of a covered loan;
(7) the term "expected forgiveness amount" means the amount of principal that a lender reasonably expects a borrower to expend during the covered period on the sum of any—
(A) payroll costs;
(B) payments of interest on any covered mortgage obligation (which shall not include any prepayment of or payment of principal on a covered mortgage obligation);
(C) payments on any covered rent obligation; and
(D) covered utility payments; and
(8) the term "payroll costs" has the meaning given that term in paragraph (36) of
(b) Forgiveness
An eligible recipient shall be eligible for forgiveness of indebtedness on a covered loan in an amount equal to the sum of the following costs incurred and payments made during the covered period:
(1) Payroll costs.
(2) Any payment of interest on any covered mortgage obligation (which shall not include any prepayment of or payment of principal on a covered mortgage obligation).
(3) Any payment on any covered rent obligation.
(4) Any covered utility payment.
(c) Treatment of amounts forgiven
(1) In general
Amounts which have been forgiven under this section shall be considered canceled indebtedness by a lender authorized under
(2) Purchase of guarantees
For purposes of the purchase of the guarantee for a covered loan by the Administrator, amounts which are forgiven under this section shall be treated in accordance with the procedures that are otherwise applicable to a loan guaranteed under
(3) Remittance
Not later than 90 days after the date on which the amount of forgiveness under this section is determined, the Administrator shall remit to the lender an amount equal to the amount of forgiveness, plus any interest accrued through the date of payment.
(4) Advance purchase of covered loan
(A) Report
A lender authorized under
(B) Purchase
The Administrator shall purchase the expected forgiveness amount described in subparagraph (A) as if the amount were the principal amount of a loan guaranteed under
(C) Timing
Not later than 15 days after the date on which the Administrator receives a report under subparagraph (A), the Administrator shall purchase the expected forgiveness amount under subparagraph (B) with respect to each covered loan to which the report relates.
(d) Limits on amount of forgiveness
(1) Amount may not exceed principal
The amount of loan forgiveness under this section shall not exceed the principal amount of the financing made available under the applicable covered loan.
(2) Reduction based on reduction in number of employees
(A) In general
The amount of loan forgiveness under this section shall be reduced, but not increased, by multiplying the amount described in subsection (b) by the quotient obtained by dividing—
(i) the average number of full-time equivalent employees per month employed by the eligible recipient during the covered period; by
(ii)(I) at the election of the borrower—
(aa) the average number of full-time equivalent employees per month employed by the eligible recipient during the period beginning on February 15, 2019 and ending on June 30, 2019; or
(bb) the average number of full-time equivalent employees per month employed by the eligible recipient during the period beginning on January 1, 2020 and ending on February 29, 2020; or
(II) in the case of an eligible recipient that is seasonal employer, as determined by the Administrator, the average number of full-time equivalent employees per month employed by the eligible recipient during the period beginning on February 15, 2019 and ending on June 30, 2019.
(B) Calculation of average number of employees
For purposes of subparagraph (A), the average number of full-time equivalent employees shall be determined by calculating the average number of full-time equivalent employees for each pay period falling within a month.
(3) Reduction relating to salary and wages
(A) In general
The amount of loan forgiveness under this section shall be reduced by the amount of any reduction in total salary or wages of any employee described in subparagraph (B) during the covered period that is in excess of 25 percent of the total salary or wages of the employee during the most recent full quarter during which the employee was employed before the covered period.
(B) Employees described
An employee described in this subparagraph is any employee who did not receive, during any single pay period during 2019, wages or salary at an annualized rate of pay in an amount more than $100,000.
(4) Tipped workers
An eligible recipient with tipped employees described in
(5) Exemption for re-hires
(A) In general
In a circumstance described in subparagraph (B), the amount of loan forgiveness under this section shall be determined without regard to a reduction in the number of full-time equivalent employees of an eligible recipient or a reduction in the salary of 1 or more employees of the eligible recipient, as applicable, during the period beginning on February 15, 2020 and ending on the date that is 30 days after March 27, 2020.
(B) Circumstances
A circumstance described in this subparagraph is a circumstance—
(i) in which—
(I) during the period beginning on February 15, 2020 and ending on the date that is 30 days after March 27, 2020, there is a reduction, as compared to February 15, 2020, in the number of full-time equivalent employees of an eligible recipient; and
(II) not later than December 31, 2020, the eligible employer has eliminated the reduction in the number of full-time equivalent employees;
(ii) in which—
(I) during the period beginning on February 15, 2020 and ending on the date that is 30 days after March 27, 2020, there is a reduction, as compared to February 15, 2020, in the salary or wages of 1 or more employees of the eligible recipient; and
(II) not later than December 31, 2020, the eligible employer has eliminated the reduction in the salary or wages of such employees; or
(iii) in which the events described in clause (i) and (ii) occur.
(6) Exemptions
The Administrator and the Secretary of the Treasury may prescribe regulations granting de minimis exemptions from the requirements under this subsection.
(7) Exemption based on employee availability
During the period beginning on February 15, 2020, and ending on December 31, 2020, the amount of loan forgiveness under this section shall be determined without regard to a proportional reduction in the number of full-time equivalent employees if an eligible recipient, in good faith—
(A) is able to document—
(i) an inability to rehire individuals who were employees of the eligible recipient on February 15, 2020; and
(ii) an inability to hire similarly qualified employees for unfilled positions on or before December 31, 2020; or
(B) is able to document an inability to return to the same level of business activity as such business was operating at before February 15, 2020, due to compliance with requirements established or guidance issued by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and Prevention, or the Occupational Safety and Health Administration during the period beginning on March 1, 2020, and ending December 31, 2020, related to the maintenance of standards for sanitation, social distancing, or any other worker or customer safety requirement related to COVID–19.
(8) Limitation on forgiveness
To receive loan forgiveness under this section, an eligible recipient shall use at least 60 percent of the covered loan amount for payroll costs, and may use up to 40 percent of such amount for any payment of interest on any covered mortgage obligation (which shall not include any prepayment of or payment of principal on a covered mortgage obligation), any payment on any covered rent obligation, or any covered utility payment.
(e) Application
An eligible recipient seeking loan forgiveness under this section shall submit to the lender that is servicing the covered loan an application, which shall include—
(1) documentation verifying the number of full-time equivalent employees on payroll and pay rates for the periods described in subsection (d), including—
(A) payroll tax filings reported to the Internal Revenue Service; and
(B) State income, payroll, and unemployment insurance filings;
(2) documentation, including cancelled checks, payment receipts, transcripts of accounts, or other documents verifying payments on covered mortgage obligations, payments on covered lease obligations, and covered utility payments;
(3) a certification from a representative of the eligible recipient authorized to make such certifications that—
(A) the documentation presented is true and correct; and
(B) the amount for which forgiveness is requested was used to retain employees, make interest payments on a covered mortgage obligation, make payments on a covered rent obligation, or make covered utility payments; and
(4) any other documentation the Administrator determines necessary.
(f) Prohibition on forgiveness without documentation
No eligible recipient shall receive forgiveness under this section without submitting to the lender that is servicing the covered loan the documentation required under subsection (e).
(g) Decision
Not later than 60 days after the date on which a lender receives an application for loan forgiveness under this section from an eligible recipient, the lender shall issue a decision on the an 1 application.
(h) Hold harmless
If a lender has received the documentation required under this section from an eligible recipient attesting that the eligible recipient has accurately verified the payments for payroll costs, payments on covered mortgage obligations, payments on covered lease obligations, or covered utility payments during covered 2 period—
(1) an enforcement action may not be taken against the lender under
(2) the lender shall not be subject to any penalties by the Administrator relating to loan forgiveness for the payments for payroll costs, payments on covered mortgage obligations, payments on covered lease obligations, or covered utility payments, as the case may be.
(i) Taxability
For purposes of title 26, any amount which (but for this subsection) would be includible in gross income of the eligible recipient by reason of forgiveness described in subsection (b) shall be excluded from gross income.
(j) Rule of construction
The cancellation of indebtedness on a covered loan under this section shall not otherwise modify the terms and conditions of the covered loan.
(k) Regulations
Not later than 30 days after March 27, 2020, the Administrator shall issue guidance and regulations implementing this section."
(l) Application to certain eligible recipients
An eligible recipient that received a covered loan before June 5, 2020, may elect for the covered period applicable to such covered loan to end on the date that is 8 weeks after the date of the origination of such covered loan.
(
References in Text
Section 1102 and section 1102 of this Act, referred to in subsec. (a)(1), (8), mean section 1102 of div. A of
Amendments
2020—Subsec. (a)(3).
Subsec. (d)(5)(B)(i)(II), (ii)(II).
Subsec. (d)(7), (8).
Subsec. (l).
2 So in original. Probably should be preceded by "the".
§9006. Direct appropriations
(a) In general
There is appropriated, out of amounts in the Treasury not otherwise appropriated, for the fiscal year ending September 30, 2020, to remain available until September 30, 2021, for additional amounts—
(1) $670,335,000,000 under the heading "Small Business Administration—Business Loans Program Account, CARES Act" for the cost of guaranteed loans as authorized under paragraph (36) of
(2) $675,000,000 under the heading "Small Business Administration—Salaries and Expenses" for salaries and expenses of the Administration;
(3) $25,000,000 under the heading "Small Business Administration—Office of Inspector General", to remain available until September 30, 2024, for necessary expenses of the Office of Inspector General of the Administration in carrying out the provisions of the Inspector General Act of 1978 (5 U.S.C. App.);
(4) $265,000,000 under the heading "Small Business Administration—Entrepreneurial Development Programs", of which—
(A) $240,000,000 shall be for carrying out
(B) $25,000,000 shall be for carrying out
(5) $10,000,000 under the heading "Department of Commerce—Minority Business Development Agency" for minority business centers of the Minority Business Development Agency to provide technical assistance to small business concerns;
(6) $10,000,000,000 under the heading "Small Business Administration—Emergency EIDL Grants" shall be for carrying out
(7) $17,000,000,000 under the heading "Small Business Administration—Business Loans Program Account, CARES Act" shall be for carrying out
(8) $25,000,000 under the heading "Department of the Treasury—Departmental Offices—Salaries and Expenses" shall be for carrying out
(b) Secondary market
During the period beginning on March 27, 2020, and ending on September 30, 2021, guarantees of trust certificates authorized by
(c) Reports
Not later than 180 days after March 27, 2020, the Administrator shall submit to the Committee on Appropriations of the Senate and the Committee on Appropriations of the House of Representatives a detailed expenditure plan for using the amounts appropriated to the Administration under subsection (a).
(
References in Text
The CARES Act, referred to in subsec. (a)(1), (7), is
Section 1102(a) of this Act, referred to in subsec. (a)(1), means section 1102(a) of div. A of
The Inspector General Act of 1978, referred to in subsec. (a)(3), is
Amendments
2020—Subsec. (a)(1).
§9007. Minority Business Development Agency
(a) Definitions
In this section—
(1) the term "Agency" means the Minority Business Development Agency of the Department of Commerce;
(2) the term "minority business center" means a Business Center of the Agency;
(3) the term "minority business enterprise" means a for-profit business enterprise—
(A) not less than 51 percent of which is owned by 1 or more socially disadvantaged individuals, as determined by the Agency; and
(B) the management and daily business operations of which are controlled by 1 or more socially disadvantaged individuals, as determined by the Agency; and
(4) the term "minority chamber of commerce" means a chamber of commerce developed specifically to support minority business enterprises.
(b) Education, training, and advising grants
(1) In general
The Agency may provide financial assistance in the form of grants to minority business centers and minority chambers of commerce to provide education, training, and advising to minority business enterprises.
(2) Use of funds
Grants under this section shall be used for the education, training, and advising of minority business enterprises and their employees on—
(A) accessing and applying for resources provided by the Agency and other Federal resources relating to access to capital and business resiliency;
(B) the hazards and prevention of the transmission and communication of COVID–19 and other communicable diseases;
(C) the potential effects of COVID–19 on the supply chains, distribution, and sale of products of minority business enterprises and the mitigation of those effects;
(D) the management and practice of telework to reduce possible transmission of COVID–19;
(E) the management and practice of remote customer service by electronic or other means;
(F) the risks of and mitigation of cyber threats in remote customer service or telework practices;
(G) the mitigation of the effects of reduced travel or outside activities on minority business enterprises during COVID–19 or similar occurrences; and
(H) any other relevant business practices necessary to mitigate the economic effects of COVID–19 or similar occurrences.
(3) No matching funds required
Matching funds shall not be required for any grant under this section.
(4) Goals and metrics
(A) In general
Goals and metrics for the funds made available under this section shall be jointly developed, negotiated, and agreed upon, with full participation of both parties, between the minority business centers, minority chambers of commerce, and the Agency, which shall—
(i) take into consideration the extent of the circumstances relating to the spread of COVID–19, or similar occurrences, that affect minority business enterprises located in the areas covered by minority business centers and minority chambers of commerce, particularly in rural areas or economically distressed areas;
(ii) generally follow the use of funds outlined in paragraph (2), but shall not restrict the activities of minority business centers and minority chambers of commerce in responding to unique situations; and
(iii) encourage minority business centers and minority chambers of commerce to develop and provide services to minority business enterprises.
(B) Public availability
The Agency shall make publicly available the methodology by which the Agency, minority business centers, and minority chambers of commerce jointly develop the metrics and goals described in subparagraph (A).
(c) Waivers
(1) In general
Notwithstanding any other provision of law or regulation, the Agency may, during the 3-month period that begins on March 27, 2020, waive any matching requirement imposed on a minority business center or a specialty center of the Agency under a cooperative agreement between such a center and the Agency if the applicable center is unable to raise funds, or has suffered a loss of revenue, because of the effects of COVID–19.
(2) Remaining compliant
Notwithstanding any provision of a cooperative agreement between the Agency and a minority business center, if, during the period beginning on March 27, 2020, and ending on September 30, 2021, such a center decides not to collect fees because of the economic consequences of COVID–19, the center shall be considered to be in compliance with that agreement if—
(A) the center notifies the Agency with respect to that decision, which the center may provide through electronic mail; and
(B) the Agency, not later than 15 days after the date on which the center provides notice to the Agency under subparagraph (A)—
(i) confirms receipt of the notification under subparagraph (A); and
(ii) accepts the decision of the center.
(d) Report
Not later than 6 months after March 27, 2020, and annually thereafter, the Agency shall submit to the Committee on Small Business and Entrepreneurship and the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Small Business and the Committee on Energy and Commerce of the House of Representatives a report that describes—
(1) with respect to the period covered by the initial report—
(A) the programs and services developed and provided by the Agency, minority business centers, and minority chambers of commerce under subsection (b); and
(B) the initial efforts to provide those services under subsection (b); and
(2) with respect to subsequent years covered by the report—
(A) 1 with respect to the grant program under subsection (b)—
(i) the efforts of the Agency, minority business centers, and minority chambers of commerce to develop services to assist minority business enterprises;
(ii) the challenges faced by owners of minority business enterprises in accessing services provided by the Agency, minority business centers, and minority chambers of commerce;
(iii) the number of unique minority business enterprises that were served by the Agency, minority business centers, or minority chambers of commerce; and
(iv) other relevant outcome performance data with respect to minority business enterprises, including the number of employees affected, the effect on sales, the disruptions of supply chains, and the efforts made by the Agency, minority business centers, and minority chambers of commerce to mitigate these effects.
(e) Authorization of appropriations
There is authorized to be appropriated $10,000,000 to carry out this section, to remain available until expended.
(
1 So in original. No subpar. (B) has been enacted.
§9008. United States Treasury program management authority
(a) Definitions
In this section—
(1) the terms "appropriate Federal banking agency" and "insured depository institution" have the meanings given those terms in
(2) the term "insured credit union" has the meaning given the term in
(3) the term "Secretary" means the Secretary of the Treasury.
(b) Authority to include additional financial institutions
The Department of the Treasury, in consultation with the Administrator, and the Chairman of the Farm Credit Administration shall establish criteria for insured depository institutions, insured credit unions, institutions of the Farm Credit System chartered under the Farm Credit Act of 1971 (
(c) Safety and soundness
An insured depository institution, insured credit union, institution of the Farm Credit System chartered under the Farm Credit Act of 1971 (
(d) Regulations for lenders and loans
(1) In general
The Secretary may issue regulations and guidance as necessary to carry out the purposes of this section, including to—
(A) allow additional lenders to originate loans under this section; and
(B) establish terms and conditions for loans under this section, including terms and conditions concerning compensation, underwriting standards, interest rates, and maturity.
(2) Requirements
The terms and conditions established under paragraph (1) shall provide for the following:
(A) A rate of interest that does not exceed the maximum permissible rate of interest available on a loan of comparable maturity under paragraph (36) of section 7(a) of the Small Business Act (
(B) Terms and conditions that, to the maximum extent practicable, are consistent with the terms and conditions required under the following provisions of paragraph (36) of section 7(a) of the Small Business Act (
(i) Subparagraph (D), pertaining to borrower eligibility.
(ii) Subparagraph (E), pertaining to the maximum loan amount.
(iii) Subparagraph (F)(i), pertaining to allowable uses of program loans.
(iv) Subparagraph (H), pertaining to fee waivers.
(v) Subparagraph (M), pertaining to loan deferment.
(C) A guarantee percentage that, to the maximum extent practicable, is consistent with the guarantee percentage required under subparagraph (F) of section 7(a)(2) of the Small Business Act (
(D) Loan forgiveness under terms and conditions that, to the maximum extent practicable, is consistent with the terms and conditions for loan forgiveness under
(e) Additional regulations generally
The Secretary may issue regulations and guidance as necessary to carry out the purposes of this section, including to allow additional lenders to originate loans under this title 1 and to establish terms and conditions such as compensation, underwriting standards, interest rates, and maturity for under this section.
(f) Certification
As a condition of receiving a loan under this section, a borrower shall certify under terms acceptable to the Secretary that the borrower—
(1) does not have an application pending for a loan under section 7(a) of the Small Business Act (
(2) has not received such a loan during the period beginning on February 15, 2020 and ending on December 31, 2020.
(g) Opt-in for SBA qualified lenders
Lenders qualified to participate as a lender under 7(a) 2 of the Small Business Act (
(h) Program administration
With guidance from the Secretary, the Administrator shall administer the program established under this section, including the making and purchasing of guarantees on loans under the program, until the date on which the national emergency declared by the President under the National Emergencies Act (
(i) Criminal penalties
A loan under this section shall be deemed to be a loan under the Small Business Act (
(
References in Text
The Farm Credit Act of 1971, referred to in subsecs. (b) and (c), is
The National Emergencies Act, referred to in subsecs. (b) and (h), is
Section 1102 of this Act, referred to in subsec. (d)(2), means section 1102 of div. A of
This title, referred to in subsec. (e), is title I of div. A of
The Small Business Act, referred to in subsec. (i), is
1 See References in Text note below.
2 So in original. Probably should be preceded by "section".
§9009. Emergency EIDL grants
(a) Definitions
In this section—
(1) the term "covered period" means the period beginning on January 31, 2020 and ending on December 31, 2020; and
(2) the term "eligible entity" means—
(A) a business with not more than 500 employees;
(B) any individual who operates under a sole proprietorship, with or without employees, or as an independent contractor;
(C) a cooperative with not more than 500 employees;
(D) an ESOP (as defined in
(E) a tribal small business concern, as described in
(F) an agricultural enterprise (as defined in
(b) Eligible entities
During the covered period, in addition to small business concerns, private nonprofit organizations, and small agricultural cooperatives, an eligible entity shall be eligible for a loan made under
(c) Terms; credit elsewhere
With respect to a loan made under
(1) any rules related 1 the personal guarantee on advances and loans of not more than $200,000 during the covered period for all applicants;
(2) the requirement that an applicant needs to be in business for the 1-year period before the disaster, except that no waiver may be made for a business that was not in operation on January 31, 2020; and
(3) the requirement in the flush matter following subparagraph (E) of
(d) Approval and ability to repay for small dollar loans
With respect to a loan made under
(1) approve an applicant based solely on the credit score of the applicant and shall not require an applicant to submit a tax return or a tax return transcript for such approval; or
(2) use alternative appropriate methods to determine an applicant's ability to repay.
(e) Emergency grant
(1) In general
During the covered period, an entity included for eligibility in subsection (b), including small business concerns, private nonprofit organizations, and small agricultural cooperatives, that applies for a loan under
(2) Verification
Before disbursing amounts under this subsection, the Administrator shall verify that the applicant is an eligible entity by accepting a self-certification from the applicant under penalty of perjury pursuant to
(3) Amount
The amount of an advance provided under this subsection shall be not more than $10,000.
(4) Use of funds
An advance provided under this subsection may be used to address any allowable purpose for a loan made under
(A) providing paid sick leave to employees unable to work due to the direct effect of the COVID–19;
(B) maintaining payroll to retain employees during business disruptions or substantial slowdowns;
(C) meeting increased costs to obtain materials unavailable from the applicant's original source due to interrupted supply chains;
(D) making rent or mortgage payments; and
(E) repaying obligations that cannot be met due to revenue losses.
(5) Repayment
An applicant shall not be required to repay any amounts of an advance provided under this subsection, even if subsequently denied a loan under
(6) Unemployment grant
If an applicant that receives an advance under this subsection transfers into, or is approved for, the loan program under
(7) Authorization of appropriations
There is authorized to be appropriated to the Administration $20,000,000,000 to carry out this subsection.
(8) Termination
The authority to carry out grants under this subsection shall terminate on December 31, 2020.
(
Codification
Section is comprised of section 1110 of
Amendments
2020—Subsec. (a)(2)(F).
Subsec. (e)(7).
1 So in original. Probably should be followed by "to".
2 See Codification note below.
§9010. Resources and services in languages other than English
(a) In general
The Administrator shall provide the resources and services made available by the Administration to small business concerns in the 10 most commonly spoken languages, other than English, in the United States, which shall include Mandarin, Cantonese, Japanese, and Korean.
(b) Authorization of appropriations
There is authorized to be appropriated to the Administrator $25,000,000 to carry out this section.
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§9011. Subsidy for certain loan payments
(a) Definition of covered loan
In this section, the term "covered loan" means a loan that is—
(1) guaranteed by the Administration under—
(A)
(i) including a loan made under the Community Advantage Pilot Program of the Administration; and
(ii) excluding a loan made under paragraph (36) of such
(B) title V of the Small Business Investment Act of 1958 (
(2) made by an intermediary to a small business concern using loans or grants received under
(b) Sense of Congress
It is the sense of Congress that—
(1) all borrowers are adversely affected by COVID–19;
(2) relief payments by the Administration are appropriate for all borrowers; and
(3) in addition to the relief provided under this Act, the Administration should encourage lenders to provide payment deferments, when appropriate, and to extend the maturity of covered loans, so as to avoid balloon payments or any requirement for increases in debt payments resulting from deferments provided by lenders during the period of the national emergency declared by the President under the National Emergencies Act (
(c) Principal and interest payments
(1) In general
The Administrator shall pay the principal, interest, and any associated fees that are owed on a covered loan in a regular servicing status—
(A) with respect to a covered loan made before March 27, 2020, and not on deferment, for the 6-month period beginning with the next payment due on the covered loan;
(B) with respect to a covered loan made before March 27, 2020, and on deferment, for the 6-month period beginning with the next payment due on the covered loan after the deferment period; and
(C) with respect to a covered loan made during the period beginning on March 27, 2020, and ending on the date that is 6 months after March 27, 2020, for the 6-month period beginning with the first payment due on the covered loan.
(2) Timing of payment
The Administrator shall begin making payments under paragraph (1) on a covered loan not later than 30 days after the date on which the first such payment is due.
(3) Application of payment
Any payment made by the Administrator under paragraph (1) shall be applied to the covered loan such that the borrower is relieved of the obligation to pay that amount.
(d) Other requirements
The Administrator shall—
(1) communicate and coordinate with the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, and State bank regulators to encourage those entities to not require lenders to increase their reserves on account of receiving payments made by the Administrator under subsection (c);
(2) waive statutory limits on maximum loan maturities for any covered loan durations where the lender provides a deferral and extends the maturity of covered loans during the 1-year period following March 27, 2020; and
(3) when necessary to provide more time because of the potential of higher volumes, travel restrictions, and the inability to access some properties during the COVID–19 pandemic, extend lender site visit requirements to—
(A) not more than 60 days (which may be extended at the discretion of the Administration) after the occurrence of an adverse event, other than a payment default, causing a loan to be classified as in liquidation; and
(B) not more than 90 days after a payment default.
(e) Rule of construction
Nothing in this section may be construed to limit the authority of the Administrator to make payments pursuant to subsection (c) with respect to a covered loan solely because the covered loan has been sold in the secondary market.
(f) Authorization of appropriations
There is authorized to be appropriated to the Administrator $17,000,000,000 to carry out this section.
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References in Text
Section 1102, referred to in subsec. (a)(1)(A)(ii), means section 1102 of
The Small Business Investment Act of 1958, referred to in subsec. (a)(1)(B), is
This Act, referred to in subsec. (b)(3), is div. A of
The National Emergencies Act, referred to in subsec. (b)(3), is
§9012. Emergency rulemaking authority
Not later than 15 days after March 27, 2020, the Administrator shall issue regulations to carry out this title 1 and the amendments made by this title 1 without regard to the notice requirements under
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References in Text
This title, referred to in text, is title I of div. A of