Plain English summary not yet available
The full original text is available below. Check back soon as we process this bill.
I
116TH CONGRESS
2D SESSION
H. R. 6324
To amend the Small Business Act to provide no interest rate loans to
small businesses and non-profit entities impacted by the coronavirus
(COVID-19), and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MARCH 23, 2020
Mr. PAPPAS (for himself, Mr. ROSE of New York, Ms. KENDRA S. HORN of
Oklahoma, Ms. NORTON, Mr. CARSON of Indiana, Ms. WILD, Ms.
MUCARSEL-POWELL, Mr. PANETTA, Mrs. HAYES, Ms. KUSTER of New
Hampshire, and Ms. PINGREE) introduced the following bill; which was
referred to the Committee on Small Business
A BILL
To amend the Small Business Act to provide no interest
rate loans to small businesses and non-profit entities
impacted by the coronavirus (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 ‘‘Too Small to Fail
4
Act’’.
5
VerDate Sep 11 2014
00:39 Apr 08, 2020
Jkt 099200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H6324.IH
H6324
pamtmann on DSKBC07HB2PROD with BILLS
2
•HR 6324 IH
SEC. 2. FINANCIAL ASSISTANCE TO SMALL BUSINESSES
1
AND NON-PROFIT ENTITIES.
2
Section 7 of the Small Business Act (15 U.S.C. 636)
3
is amended by adding at the end the following new sub-
4
section:
5
‘‘(k) CORONAVIRUS RELATED LOANS.—
6
‘‘(1) IN GENERAL.—The Administration shall
7
waive the credit elsewhere requirement of subsection
8
(a)(1) for loans to small businesses and non-profit
9
entities affected by the coronavirus (COVID-19).
10
Such loans shall be provided by the Administration
11
at no interest rate.
12
‘‘(2) AUTHORIZATION
OF
APPROPRIATIONS.—
13
For an additional amount for the ‘Disaster Loans
14
Program Account’ for the cost of direct loans au-
15
thorized by section 7(b) of the Small Business Act
16
and
for
subsidizing
interest
rates,
17
$350,000,000,000, to remain available until ex-
18
pended, except that—
19
‘‘(A) not to exceed $225,000,000 may be
20
transferred to and merged with ‘Salaries and
21
Expenses’ for administrative expenses to carry
22
out the disaster loan program authorized by
23
section 7(b) of the Small Business Act; and
24
VerDate Sep 11 2014
00:39 Apr 08, 2020
Jkt 099200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H6324.IH
H6324
pamtmann on DSKBC07HB2PROD with BILLS
3
•HR 6324 IH
‘‘(B) none of the funds provided under this
1
heading may be used for indirect administrative
2
expenses.
3
‘‘(3) EMERGENCY REQUIREMENT.—The amount
4
provided under paragraph (2) is designated as an
5
emergency
requirement
pursuant
to
section
6
251(b)(2)(A)(i) of the Balanced Budget and Emer-
7
gency Deficit Control Act of 1985 and the amount
8
designated under such paragraph as an emergency
9
requirement
pursuant
to
such
section
10
251(b)(2)(A)(i) shall be available only if the Presi-
11
dent subsequently so designates such amount and
12
transmits such designation to the Congress.
13
‘‘(4) SUSPENSION OF PAYMENT.—The Adminis-
14
tration is authorized to suspend the payment of any
15
loan made under this Act to any small business or
16
non-profit
entity
affected
by
the
coronavirus
17
(COVID-19) for a period determined by the Admin-
18
istration.’’.
19
SEC. 3. EMERGENCY EIDL GRANTS.
20
(a) EIDL EMERGENCY GRANT.—
21
(1) IN GENERAL.—During the covered period,
22
an eligible entity that applies for a loan under sec-
23
tion 7(b)(2) of the Small Business Act (15 U.S.C.
24
636(b)(2)) in response to COVID–19 may request
25
VerDate Sep 11 2014
23:41 Apr 10, 2020
Jkt 099200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H6324.IH
H6324
pamtmann on DSKBC07HB2PROD with BILLS
4
•HR 6324 IH
that the Administrator provide an advance in the
1
amount requested by such applicant (not to exceed
2
$15,000) to such applicant within 3 days after the
3
Administrator receives an application from such ap-
4
plicant.
5
(2) VERIFICATION.—Before disbursing amounts
6
under this subsection, the Administrator shall verify
7
that the applicant is an eligible entity.
8
(3) USE
OF
FUNDS.—An advance provided
9
under this subsection may be used to address any al-
10
lowable purpose for a loan made under section
11
7(b)(2) of the Small Business Act (15 U.S.C.
12
636(b)(2)), including—
13
(A) providing paid sick leave to employees
14
unable to work due to the direct effect of the
15
COVID–19;
16
(B) maintaining payroll to retain employ-
17
ees during business disruptions or substantial
18
slowdowns;
19
(C) meeting increased costs to obtain ma-
20
terials unavailable from the applicant’s original
21
source due to interrupted supply chains;
22
(D) making rent or mortgage payments;
23
and
24
VerDate Sep 11 2014
23:41 Apr 10, 2020
Jkt 099200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H6324.IH
H6324
pamtmann on DSKBC07HB2PROD with BILLS
5
•HR 6324 IH
(E) repaying obligations that cannot be
1
met due to revenue losses.
2
(4) REPAYMENT.—An applicant shall not be re-
3
quired to repay any amounts of an advance provided
4
under this subsection, even if subsequently denied a
5
loan under section 7(b)(2) of the Small Business Act
6
(15 U.S.C. 636(b)(2)).
7
(5) UNEMPLOYMENT GRANT.—If an applicant
8
that receives an advance under this subsection trans-
9
fers into the loan program under section 7(a) of the
10
Small Business Act (15 U.S.C. 636(a)), the advance
11
amount shall be considered when determining loan
12
forgiveness for a loan for payroll costs made under
13
such section 7(a).
14
(6) AUTHORIZATION
OF
APPROPRIATIONS.—
15
There is authorized to be appropriated to the Small
16
Business Administration $10,000,000,000 to carry
17
out this subsection.
18
(7) TERMINATION.—The authority to carry out
19
grants under this subsection shall terminate on De-
20
cember 31, 2020.
21
(b) DEFINITIONS.—In this Act—
22
(1) the term ‘‘covered period’’ means the period
23
beginning on January 31, 2020, and ending on De-
24
cember 31, 2020;
25
VerDate Sep 11 2014
23:41 Apr 10, 2020
Jkt 099200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H6324.IH
H6324
pamtmann on DSKBC07HB2PROD with BILLS
6
•HR 6324 IH
(2) the term ‘‘eligible entity’’ means—
1
(A) a startup with not more than 500 em-
2
ployees;
3
(B) any individual who operates under a
4
sole proprietorship or as an independent con-
5
tractor;
6
(C) a cooperative with not more than 500
7
employees; or
8
(D) an ESOP (as defined in section 3 of
9
the Small Business Act (15 U.S.C. 632)) with
10
not more than 500 employees; and
11
(3) the term ‘‘COVID-19’’ means the virus
12
SARS–CoV–2 and the resulting disease COVID-19
13
or another coronavirus with pandemic potential.
14
Æ
VerDate Sep 11 2014
00:39 Apr 08, 2020
Jkt 099200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6301
E:\BILLS\H6324.IH
H6324
pamtmann on DSKBC07HB2PROD with BILLS