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II
116TH CONGRESS
2D SESSION
S. 3554
To provide assistance to small businesses impacted by COVID–19, and for
other purposes.
IN THE SENATE OF THE UNITED STATES
MARCH 20, 2020
Mr. CARDIN (for himself, Ms. CANTWELL, Mrs. SHAHEEN, Mr. MARKEY, Mr.
BOOKER, Mr. COONS, Ms. HIRONO, Ms. DUCKWORTH, and Ms. ROSEN)
introduced the following bill; which was read twice and referred to the
Committee on Small Business and Entrepreneurship
A BILL
To provide assistance to small businesses impacted by
COVID–19, and for other purposes.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE.
3
This Act may be cited as the ‘‘COVID–19 Recovery
4
by Enhancing Loan, Investment, and Education Funds
5
for Small Businesses Act of 2020’’ or the ‘‘COVID–19
6
RELIEF for Small Businesses Act of 2020’’.
7
SEC. 2. FINDINGS.
8
Congress finds that—
9
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(1) the 30,700,000 small businesses in the
1
United States employ more than 47 percent of the
2
private workforce;
3
(2) small business supply chain firms account
4
for almost 1,000,000 small businesses and about
5
10,000,000 jobs, playing a key role in the United
6
States supply chain by providing goods and services
7
to large corporations and Federal, State, and local
8
government agencies;
9
(3)
the
economic
disruptions
related
to
10
COVID–19 in the United States are unlike any that
11
we have seen in the past couple of decades;
12
(4) as a result of the global pandemic caused by
13
COVID–19, many small businesses in the United
14
States have suffered because—
15
(A) their supply chains have been dis-
16
rupted;
17
(B) their establishments are experiencing
18
decreased foot traffic and sales; and
19
(C) their employees who have contracted
20
the virus will need paid time off to avoid infect-
21
ing others;
22
(5) small business owners affected by COVID–
23
19 are finding it difficult or impossible to—
24
(A) make loan payments on existing debts;
25
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•S 3554 IS
(B) pay their employees;
1
(C) pay their vendors;
2
(D) purchase materials, supplies, or inven-
3
tory;
4
(E) pay their rent, mortgage, or other op-
5
erating expenses; or
6
(F) secure financing for their business;
7
(6) a significant number of small businesses will
8
not qualify for loans under the existing disaster loan
9
program of the Administration;
10
(7) the absence of resources for vulnerable
11
small businesses that cannot access programs of the
12
Administration will undoubtedly leave many of them
13
to fail; and
14
(8) a new source of Federal support is nec-
15
essary to help businesses that have no other place to
16
turn.
17
SEC. 3. PURPOSE.
18
The purpose of this Act is to mitigate economic injury
19
to small business concerns and stabilize the United States
20
economy by strengthening the loan, investment, procure-
21
ment assistance, and management education programs of
22
the Administration and by establishing a new grant pro-
23
gram at the Administration for the small business con-
24
cerns hardest hit by COVID–19.
25
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•S 3554 IS
SEC. 4. DEFINITIONS.
1
In this Act—
2
(1) the term ‘‘Administration’’ and ‘‘Adminis-
3
trator’’ mean the Small Business Administration
4
and the Administrator thereof; and
5
(2) the term ‘‘small business concern’’ has the
6
meaning given the term in section 3 of the Small
7
Business Act (15 U.S.C. 632).
8
SEC. 5. ECONOMIC INJURY GRANTS FOR SMALL BUSINESS
9
CONCERNS.
10
(a) PURPOSE.—The purpose of this section is to—
11
(1) make grants available to small business con-
12
cerns affected by COVID–19 that lack access to
13
credit through the existing disaster loan program of
14
the Administration; and
15
(2) ensure resources are available for vulnerable
16
small business concerns that are unlikely to survive
17
without a new source of Federal support.
18
(b) DEFINITION
OF ELIGIBLE SMALL BUSINESS
19
CONCERN.—The term ‘‘eligible small business concern’’
20
means a small business concern that—
21
(1) meets the applicable size standard estab-
22
lished under section 3 of the Small Business Act (15
23
U.S.C. 632);
24
(2) has not less than 2 employees and not more
25
than 50 employees;
26
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(3) due to the effects of COVID–19, suffered—
1
(A) a loss of revenue in 1 month greater
2
than 50 percent as compared to the same
3
month in the previous year; or
4
(B) in the case of a business concern that
5
has been in operation for not less than 4
6
months, a loss of revenue in 1 month greater
7
than 50 percent as compared to the average of
8
the 3 previous months;
9
(4) can demonstrate an inability to pay obliga-
10
tions or stay up-to-date on accounts or payroll; and
11
(5) submitted an application for a loan under
12
section 7(b)(2) of the Small Business Act (15 U.S.C.
13
636(b)(2)) and was denied assistance under such
14
section because the small business concern is unable
15
to repay the loan.
16
(c) GRANTS.—The Administration shall provide as-
17
sistance to eligible small business concerns, private non-
18
profit organizations, and small agricultural cooperatives
19
that have suffered a substantial economic injury, directly
20
or indirectly, as a result of COVID–19.
21
(d) AWARDING OF GRANTS AND UPDATES.—The Ad-
22
ministration shall—
23
(1) award grants under this section as expedi-
24
tiously as possible; and
25
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(2) on a monthly basis until the date on which
1
the authority under this section terminates, update
2
the Committee on Small Business and Entrepre-
3
neurship and the Committee on Appropriations of
4
the Senate and the Committee on Small Business
5
and the Committee on Appropriations of the House
6
of Representatives on—
7
(A) the number of grants awarded under
8
this section; and
9
(B) the geographic distribution of the
10
grants by State and county.
11
(e) AMOUNT OF GRANT.—
12
(1) IN GENERAL.—Except as provided in para-
13
graph (2), a grant provided under this section shall
14
be in an amount that is not more than $50,000.
15
(2) INCREASED GRANT AMOUNT.—The Admin-
16
istrator may make a grant under this section of not
17
more than $100,000 if the Administrator dem-
18
onstrates that doing so is necessary to assist eligible
19
small business concerns, private nonprofit organiza-
20
tions, and small agricultural cooperatives that the
21
Administrator determines are vital to their local
22
economies.
23
(3) SINGLE AWARD.—No eligible small business
24
concern, private nonprofit organization, or small ag-
25
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ricultural cooperative may receive or directly benefit
1
from more than 1 award made under this section.
2
(f) USE OF FUNDS.—An eligible small business con-
3
cern, private nonprofit organization, or small agricultural
4
cooperative that receives a grant under this section may
5
use the grant funds to address the effects of COVID–19
6
through any of the permissible uses of funds under section
7
7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2)).
8
(g) APPLICATION.—
9
(1) IN GENERAL.—An eligible small business
10
concern, private nonprofit organization, or small ag-
11
ricultural cooperative desiring a grant under this
12
section shall submit to the Administration an appli-
13
cation at such time, in such manner, and containing
14
such information as the Administration may require.
15
(2) PRIORITY.—The Administrator shall—
16
(A) establish selection criteria to ensure
17
that eligible small business concerns, private
18
nonprofit organizations, and small agricultural
19
cooperatives that are hardest hit by the effects
20
of COVID–19 receive priority in the event that
21
funding is not sufficient to provide grants to all
22
that submit applications under paragraph (1);
23
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(B)
identify
industry
sectors
for
1
prioritization that have suffered uniquely and
2
disproportionately from COVID–19; and
3
(C) give priority to an applicant proposing
4
to use grant funds for—
5
(i) providing paid sick leave to em-
6
ployees unable to work due to the direct ef-
7
fects of COVID–19;
8
(ii) maintaining payroll to retain em-
9
ployees during business disruptions or sub-
10
stantial slowdowns;
11
(iii) making rent and mortgage pay-
12
ments; or
13
(iv) repaying obligations that cannot
14
be met due to revenue losses.
15
(h) PROCEDURES.—The Administrator shall estab-
16
lish procedures to discourage and prevent waste, fraud,
17
and abuse by applicants and recipients of grants under
18
this section.
19
(i) PENALTIES FOR FRAUD AND MISAPPLICATION OF
20
FUNDS.—Any applicant or recipient of a grant provided
21
under this section shall be subject to all applicable provi-
22
sions of Federal law, including section 1001 of title 18,
23
United States Code, and the provisions of section 123.9
24
of title 13, Code of Federal Regulations, or any successor
25
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regulation, relating to the misapplication of loan proceeds
1
shall apply to grants provided under this section to the
2
same extent as if those grants were loans provided under
3
section 7(b)(2) of the Small Business Act (15 U.S.C.
4
636(b)(2)).
5
(j) INSPECTOR GENERAL AUDIT.—Not later than
6
180 days after the date on which the Administrator begins
7
to provide assistance under this section, the Inspector
8
General of the Administration shall—
9
(1) conduct an audit of grants made under this
10
section, which shall identify any discrepancies or
11
irregularities in the grants; and
12
(2) submit to the Committee on Small Business
13
and Entrepreneurship and the Committee on Appro-
14
priations of the Senate and the Committee on Small
15
Business and the Committee on Appropriations of
16
the House of Representatives a copy of the audit
17
conducted under paragraph (1).
18
(k) AUTHORIZATION OF APPROPRIATIONS.—There is
19
authorized to be appropriated to the Administration
20
$10,000,000,000 to carry out this section.
21
(l) TERMINATION.—The authority to carry out grants
22
under this section shall terminate on September 30, 2021.
23
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SEC. 6. ECONOMIC INJURY DISASTER LOANS.
1
(a) PURPOSE.—The purpose of this section is to en-
2
sure that owners of small business concerns have access
3
to additional necessary funding to cover continuity-of-op-
4
eration and risk mitigation improvements.
5
(b) DEFINITION
OF ELIGIBLE SMALL BUSINESS
6
CONCERN.—In this section, the term ‘‘eligible small busi-
7
ness concern’’ means a small business concern that—
8
(1) meets the applicable size standard estab-
9
lished under section 3 of the Small Business Act (15
10
U.S.C. 632); and
11
(2) is receiving assistance under section 7(b)(2)
12
of the Small Business Act (15 U.S.C. 636(b)(2)) re-
13
lated to COVID–19.
14
(c) ADDITIONAL AMOUNTS.—The Administrator may
15
increase by 20 percent the amount received by an eligible
16
small business concern under section 7(b)(2) of the Small
17
Business Act (15 U.S.C. 636(b)(2)) to cover continuity-
18
of-operation and risk mitigation improvements, including
19
telework capability, offsite record keeping, redundancy,
20
the administrative costs of establishing paid sick leave,
21
and presenteeism prevention.
22
(d) EXPEDITING SMALL ECONOMIC INJURY DIS-
23
ASTER LOANS.—With respect to a loan made under sec-
24
tion 7(b)(2) of the Small Business Act (15 U.S.C.
25
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636(b)(2)) in response to COVID–19, if the loan does not
1
exceed $350,000, the Administration may—
2
(1) approve an applicant based solely on the
3
credit score of the applicant, and in this cir-
4
cumstance, shall not require an applicant to submit
5
a tax return or a tax return transcript; or
6
(2) use other appropriate methods to determine
7
an applicant’s ability to repay.
8
(e) EMERGENCIES INVOLVING FEDERAL PRIMARY
9
RESPONSIBILITY QUALIFYING FOR SMALL BUSINESS AD-
10
MINISTRATION
ASSISTANCE.—Section 7(b)(2) of the
11
Small Business Act (15 U.S.C. 636(b)(2)) is amended—
12
(1) in subparagraph (A), by striking ‘‘or’’ at
13
the end;
14
(2) in subparagraph (B), by striking ‘‘or’’ at
15
the end;
16
(3) in subparagraph (C), by striking ‘‘or’’ at
17
the end;
18
(4) by redesignating subparagraph (D) as sub-
19
paragraph (E);
20
(5) by inserting after subparagraph (C) the fol-
21
lowing:
22
‘‘(D) an emergency involving Federal pri-
23
mary responsibility determined to exist by the
24
President under the section 501(b) of the Rob-
25
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•S 3554 IS
ert T. Stafford Disaster Relief and Emergency
1
Assistance Act (42 U.S.C. 5191(b)); or’’;
2
(6) in subparagraph (E), as so redesignated—
3
(A) by striking ‘‘or (C)’’ and inserting
4
‘‘(C), or (D)’’;
5
(B) by striking ‘‘disaster declaration’’ each
6
place it appears and inserting ‘‘disaster or
7
emergency declaration’’;
8
(C) by striking ‘‘disaster has occurred’’
9
and inserting ‘‘disaster or emergency has oc-
10
curred’’;
11
(D) by striking ‘‘such disaster’’ and insert-
12
ing ‘‘such disaster or emergency’’; and
13
(E) by striking ‘‘disaster stricken’’ and in-
14
serting ‘‘disaster- or emergency-stricken’’; and
15
(7) in the flush matter following subparagraph
16
(E), by striking the period at the end and inserting
17
the following: ‘‘: Provided further, That for purposes
18
of subparagraph (
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