II
116TH CONGRESS
2D SESSION
S. 3604
To require the Administrator of the Small Business Administration to report
on COVID–19 recovery small business programs, and for other purposes.
IN THE SENATE OF THE UNITED STATES
MAY 5, 2020
Mr. CARDIN (for himself, Mrs. SHAHEEN, Mr. BROWN, Mr. SCHUMER, Mr.
MANCHIN, and Mr. REED) introduced the following bill; which was read
twice and referred to the Committee on Small Business and Entrepre-
neurship
A BILL
To require the Administrator of the Small Business Adminis-
tration to report on COVID–19 recovery small business
programs, 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 ‘‘Transparency and
4
Oversight of COVID–19 Small Business Assistance Act’’.
5
SEC. 2. FINDINGS AND PURPOSE.
6
(a) FINDINGS.—Congress finds that—
7
(1) on January 21, 2020, the first case of
8
COVID–19 was confirmed in the United States;
9
VerDate Sep 11 2014
04:11 May 06, 2020
Jkt 099200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\S3604.IS
S3604
rfrederick on DSKBCBPHB2PROD with BILLS
2
•S 3604 IS
(2) more than 1,031,659 people in the United
1
States have since tested positive and 60,057 people
2
in the United States have died from complications
3
related to COVID–19;
4
(3) nearly a quarter of the 30,700,000 small
5
business concerns in the United States are at risk
6
of permanent closure over the coming months;
7
(4) on March 27, 2020, the Coronavirus Aid,
8
Relief, and Economic Security Act (Public Law
9
116–136), also known as the CARES Act, was
10
signed into law to provide relief to owners of small
11
business concerns that need support for ongoing op-
12
erations during this unprecedented public health and
13
economic crisis;
14
(5) the CARES Act (Public Law 116–136) in-
15
cluded $377,000,000,000 to establish the paycheck
16
protection program under section 7(a)(36) of the
17
Small Business Act (15 U.S.C. 636(a)(36)), the
18
emergency economic injury disaster loan grant pro-
19
gram under section 1110 of the CARES Act (Public
20
Law 116–136), and the debt relief program under
21
section 1112 of such Act;
22
(6) on April 24, 2020, the Paycheck Protection
23
Program and Health Care Enhancement Act (Public
24
Law 116–139) was enacted to replenish funding for
25
VerDate Sep 11 2014
04:11 May 06, 2020
Jkt 099200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\S3604.IS
S3604
rfrederick on DSKBCBPHB2PROD with BILLS
3
•S 3604 IS
those small business programs along with important
1
policy reforms to expand access to assistance from
2
the Administration to more unbanked and under-
3
served businesses;
4
(7) the funding in the Paycheck Protection Pro-
5
gram and Health Care Enhancement Act (Public
6
Law 116–139) included $310,000,000,000 for the
7
paycheck protection program established under sec-
8
tion 7(a)(36) of the Small Business Act (15 U.S.C.
9
636(a)(36)), $50,000,000,000 to leverage more than
10
$350,000,000,000 for the economic injury disaster
11
loan program under section 7(b)(2) of the Small
12
Business
Act
(15
U.S.C.
636(b)(2),
and
13
$10,000,000,000 for the emergency economic injury
14
disaster loan grant program established under sec-
15
tion 1110 of the CARES Act (Public Law 116–136);
16
(8) to support implementation and oversight of
17
these programs, which are unprecedented in scale
18
for the Administration, the CARES Act (Public Law
19
116–136) and the Paycheck Protection Program and
20
Health Care Enhancement Act (Public Law 116–
21
139) provided the Administration with $675,000,000
22
and $2,100,000,000 for salaries and expenses of the
23
Administration, respectively;
24
VerDate Sep 11 2014
04:11 May 06, 2020
Jkt 099200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\S3604.IS
S3604
rfrederick on DSKBCBPHB2PROD with BILLS
4
•S 3604 IS
(9) in spite of this support, and precedent for
1
posting borrower and lender information through
2
Freedom of Information Act requests and program
3
spending updates under the Veterans Entrepreneur-
4
ship Act of 2015 (Public Law 114–38; 129 Stat.
5
437), neither the public nor policymakers are getting
6
information in a timely or complete way about how
7
many loans and grants are being approved and dis-
8
bursed, who is getting the funding, activity by lend-
9
er, how many jobs have been saved, geographic and
10
demographic information about the borrowers, or
11
when the funding will run out;
12
(10) the first time Congress received data on
13
the paycheck protection program established under
14
section 7(a)(36) of the Small Business Act (15
15
U.S.C. 636(a)(36)) was April 14, 2020, almost a
16
week after the Administration announced that the
17
program was running out of funding and requested
18
an additional $250,000,000,000 to meet demand;
19
(11) the Administration has provided limited
20
data on both the availability and the distribution of
21
funds under the economic injury disaster loan and
22
emergency economic injury disaster loan grant pro-
23
grams, making it difficult for Congress to assess de-
24
VerDate Sep 11 2014
04:11 May 06, 2020
Jkt 099200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\S3604.IS
S3604
rfrederick on DSKBCBPHB2PROD with BILLS
5
•S 3604 IS
mand and to determine the need for additional fund-
1
ing; and
2
(12) the Administration should provide essential
3
data on small business programs established under
4
the CARES Act (Public Law 116–136) and the Pay-
5
check Protection Program and Health Care En-
6
hancement Act (Public Law 116–139) on a daily
7
and weekly basis, along with other longer term re-
8
porting requirements to provide transparency and
9
oversight of these loans and grants that are vital to
10
small business concerns and nonprofit organizations.
11
(b) PURPOSE.—The purpose of this Act is to provide
12
transparency and oversight of recovery programs of the
13
Administration related to COVID–19 by requiring timely
14
and complete reporting and public availability of data re-
15
lating to the paycheck protection program under section
16
7(a)(36) of the Small Business Act (15 U.S.C.
17
636(a)(36)), the economic injury disaster loan program
18
under section 7(b)(2) of the Small Business Act (15
19
U.S.C. 636(b)(2)) in accordance with section 1110 of the
20
CARES Act (Public Law 116–136), the emergency eco-
21
nomic injury disaster loan grant program established
22
under section 1110 of the CARES Act (Public Law 116–
23
136), and the debt relief program under section 1112 of
24
such Act.
25
VerDate Sep 11 2014
04:11 May 06, 2020
Jkt 099200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\S3604.IS
S3604
rfrederick on DSKBCBPHB2PROD with BILLS
6
•S 3604 IS
SEC. 3. DEFINITIONS.
1
In this Act—
2
(1) the terms ‘‘Administration’’ and ‘‘Adminis-
3
trator’’ mean the Small Business Administration
4
and the Administrator thereof;
5
(2) the term ‘‘appropriate congressional com-
6
mittees’’ means—
7
(A) Committee on Appropriations, the
8
Committee on Banking, Housing, and Urban
9
Affairs, and the Committee on Small Business
10
and Entrepreneurship of the Senate; and
11
(B) the Committee on Appropriations, the
12
Committee on Financial Services, and the Com-
13
mittee on Small Business of the House of Rep-
14
resentatives;
15
(3) the term ‘‘community financial institutions’’
16
has the meaning given the term in section
17
7(a)(36)(A) of the Small Business Act (15 U.S.C.
18
636(a)(36)(A));
19
(4) the term ‘‘covered assistance’’ means—
20
(A) loans made under section 7(a)(36) of
21
the Small Business Act (15 U.S.C. 636(a)(36));
22
(B) emergency grants made under section
23
1110(e) of the CARES Act (Public Law 116–
24
136);
25
VerDate Sep 11 2014
04:11 May 06, 2020
Jkt 099200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\S3604.IS
S3604
rfrederick on DSKBCBPHB2PROD with BILLS
7
•S 3604 IS
(C) loans made under section 7(b)(2) of
1
the Small Business Act (15 U.S.C. 636(b)(2))
2
in accordance with section 1110 of the CARES
3
Act (Public Law 116–136);
4
(D) loan forgiveness under section 1106 of
5
the CARES Act (Public Law 116–136); and
6
(E) the payment of principal, interest, and
7
fees under section 1112(c) of the CARES Act
8
(Public Law 116–136);
9
(5) the term ‘‘covered loan’’ has the meaning
10
given the term in section 1112(a) of the CARES Act
11
(Public Law 116–136);
12
(6) the term ‘‘demographics’’ means veteran
13
status, gender, race, and ethnicity, as reported on
14
Form 1919 of the Administration or any similar
15
loan application form of the Administration; and
16
(7) the term ‘‘State’’—
17
(A) means any State of the United States,
18
the District of Columbia, the Commonwealth of
19
Puerto Rico, the United States Virgin Islands,
20
Guam, American Samoa, the Commonwealth of
21
the Northern Mariana Islands, and any posses-
22
sion of the United States; and
23
VerDate Sep 11 2014
04:11 May 06, 2020
Jkt 099200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\S3604.IS
S3604
rfrederick on DSKBCBPHB2PROD with BILLS
8
•S 3604 IS
(B) includes an Indian tribe, as defined in
1
section 4 of the Indian Self-Determination and
2
Education Assistance Act (25 U.S.C. 450b).
3
SEC. 4. REPORTING REQUIREMENTS FOR COVID–19 RECOV-
4
ERY SMALL BUSINESS PROGRAMS.
5
(a) DAILY REPORTING.—
6
(1) IN GENERAL.—During the period beginning
7
on the day after the date of enactment of this Act
8
and ending on the date on which loan, grant, or pay-
9
ment activity described in this subsection related to
10
COVID–19 has ceased, the Administrator shall, on
11
a daily basis, report to Congress on—
12
(A) the total number and dollar amount of
13
loans or grants, broken down by loans and
14
grants approved and loans and grants dis-
15
bursed, under—
16
(i) section 7(a)(36) of the Small Busi-
17
ness Act (15 U.S.C. 636(a)(36));
18
(ii) section 1110(e) of the CARES Act
19
(Public Law 116–136); and
20
(iii) section 7(b)(2) of the Small Busi-
21
ness Act (15 U.S.C. 636(b)(2)) in accord-
22
ance with section 1110 of the CARES Act
23
(Public Law 116–136);
24
VerDate Sep 11 2014
04:11 May 06, 2020
Jkt 099200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\S3604.IS
S3604
rfrederick on DSKBCBPHB2PROD with BILLS
9
•S 3604 IS
(B) for loans made under section 7(a)(36)
1
of
the
Small
Business
Act
(15
U.S.C.
2
636(a)(36))—
3
(i) the amount of remaining authority
4
and funds for the loans, in dollar amount
5
and as a percentage; and
6
(ii) an estimate of the date on which
7
the net and gross dollar amount of loans
8
will reach the maximum amount author-
9
ized for commitments and related funds
10
for such loans;
11
(C) for grants made under section 1110(e)
12
of the CARES Act (Public Law 116–136)—
13
(i) the amount of remaining authority
14
and funds appropriated for the grants, in
15
dollar amount and as a percentage; and
16
(ii) an estimate of the date on which
17
the net and gross dollar amount of loans
18
will reach the maximum amount author-
19
ized for commitments and related funds
20
for such grants; and
21
(D) for loans made under section 7(b)(2)
22
of
the
Small
Business
Act
(15
U.S.C.
23
636(b)(2)) in accordance with section 1110 of
24
the CARES Act (Public Law 116–136)—
25
VerDate Sep 11 2014
04:11 May 06, 2020
Jkt 099200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\S3604.IS
S3604
rfrederick on DSKBCBPHB2PROD with BILLS
10
•S 3604 IS
(i) the amount of remaining authority
1
and funds for the loans, in dollar amount
2
and as a percentage; and
3
(ii) an estimate of the date on which
4
the net and gross dollar amount of loans
5
will reach the maximum amount author-
6
ized for commitments and related funds
7
for such loans.
8
(2)
REPORTING
ON
DEBT
RELIEF
FOR
9
MICROLOANS, 7(A) LOANS, AND 504 LOANS.—The Ad-
10
ministrator shall include in each daily report sub-
11
mitted under paragraph (1), and update as fre-
12
quently as the data is available and not less fre-
13
quently than on a monthly basis until the date de-
14
scribed in paragraph (1), with respect to payments
15
made on covered loans under section 1112(c) of the
16
CARES Act (Public Law 116–136)—
17
(A) the amount of remaining funds appro-
18
priated for the payments, in dollar amount and
19
as a percentage; and
20
(B) an estimate of the date on which the
21
funds will be expended.
22
(3) RETROACTIVE
DATA.—Not later than 14
23
days after the date of enactment of this Act, the Ad-
24
ministrator shall submit to Congress a report that
25
VerDate Sep 11 2014
04:11 May 06, 2020
Jkt 099200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\S3604.IS
S3604
rfrederick on DSKBCBPHB2PROD with BILLS
11
•S 3604 IS
contains the data described in paragraphs (1) and
1
(2), broken down on a daily basis in accordance with
2
those paragraphs, with respect to the assistance de-
3
scribed in those paragraphs that was made available
4
during the period beginning on the date of enact-
5
ment of the CARES Act (Public Law 116–136) and
6
ending on the day before the date of enactment of
7
this Act.
8
(b) WEEKLY REPORTING.—
9
(1) IN GENERAL.—Not later than 1 week after
10
the date of enactment of this Act, and every week
11
thereafter until the date on which loan, grant, or
12
payment activity described in this subsection related
13
to COVID–19 has ceased, the Administrator shall
14
submit to Congress a report on—
15
(A) loans made under section 7(a)(36) of
16
the Small Business Act (15 U.S.C. 636(a)(36)),
17
which shall include—
18
(i) the number and dollar amount of
19
loans approved for and the number and
20
dollar amount of loans disbursed to all bor-
21
rowers, including—
22
(I) a breakout of loans by State,
23
congressional district, demographics,
24
industry, and loan size; and
25
VerDate Sep 11 2014
04:11 May 06, 2020
Jkt 099200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\S3604.IS
S3604
rfrederick on DSKBCBPHB2PROD with BILLS
12
•S 3604 IS
(II) a breakout of loans by type
1
of participating lender, including a
2
breakout for loans made by insured
3
depository institutions, credit unions,
4
and community financial institutions
5
described in section 7(a)(36)(S) of the
6
Small
Business
Act
(15
U.S.C.
7
636(a)(36)(S));
8
(ii) the number and dollar amount of
9
loans approved for and the number and
10
dollar amount of loans disbursed to busi-
11
ness concerns assigned a North American
12
Industry Classification System code begin-
13
ning with 72, including a breakout of loans
14
by State, congressional district, demo-
15
graphics, and loan size;
16
(iii) the number and dollar amount of
17
loans approved for and the number and
18
dollar amount of loans disbursed to fran-
19
chises, nonprofit organizations, and vet-
20
erans organizations (as those terms are de-
21
fined in section 7(a)(36)(A) of the Small
22
Busin
[Text truncated for display. Full text available on Congress.gov.]