I
116TH CONGRESS
2D SESSION
H. R. 7481
To establish a loan program for businesses affected by COVID–19, and
for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JULY 2, 2020
Mr. GOLDEN (for himself and Mr. KELLY of Pennsylvania) introduced the fol-
lowing bill; which was referred to the Committee on Small Business, and
in addition to the Committee on Ways and Means, for a period to be sub-
sequently determined by the Speaker, in each case for consideration of
such provisions as fall within the jurisdiction of the committee concerned
A BILL
To establish a loan program for businesses affected 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 ‘‘Reviving the Economy
4
Sustainably Towards A Recovery in Twenty-twenty Act’’
5
or the ‘‘RESTART Act’’.
6
SEC. 2. RESTART LOAN PROGRAM.
7
(a) DEFINITIONS.—In this section:
8
VerDate Sep 11 2014
19:24 Jul 27, 2020
Jkt 099200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H7481.IH
H7481
pamtmann on DSKBC07HB2PROD with BILLS
2
•HR 7481 IH
(1) ADMINISTRATION; ADMINISTRATOR.—The
1
terms ‘‘Administration’’ and ‘‘Administrator’’ mean
2
the Small Business Administration and the Adminis-
3
trator thereof, respectively.
4
(2) COMMUNITY DEVELOPMENT FINANCIAL IN-
5
STITUTION.—The term ‘‘community development fi-
6
nancial institution’’ has the meaning given the term
7
in section 103 of the Riegle Community Develop-
8
ment and Regulatory Improvement Act of 1994 (12
9
U.S.C. 4702).
10
(3) COMPARABLE PERIOD.—
11
(A) DEFINITION.—The term ‘‘comparable
12
period’’ means a period that—
13
(i) begins on the date that is 1 year
14
or 2 years earlier than the beginning of a
15
covered period; and
16
(ii) may be adjusted to begin at the
17
beginning of a pay period that is imme-
18
diately before or immediately after the date
19
described in clause (i).
20
(B) HOLIDAYS.—If a holiday occurs dur-
21
ing the covered period or the period described
22
in subparagraph (A)(i), the holiday shall be in-
23
cluded as part of both periods.
24
VerDate Sep 11 2014
19:24 Jul 27, 2020
Jkt 099200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H7481.IH
H7481
pamtmann on DSKBC07HB2PROD with BILLS
3
•HR 7481 IH
(4) COVERED LOAN.—The term ‘‘covered loan’’
1
means a loan made under this section during the
2
covered period.
3
(5) COVERED PERIOD.—The term ‘‘covered pe-
4
riod’’ means—
5
(A) except as provided in subparagraph
6
(B), and as determined by the eligible recipient
7
of a covered loan, the 6-month period beginning
8
on—
9
(i) the date of the origination of the
10
covered loan;
11
(ii) the first day of the next scheduled
12
pay period following the date of the origi-
13
nation of the covered loan;
14
(iii) the first day of the first full
15
month following the date of the origination
16
of the covered loan; or
17
(iv) April 15, 2020; or
18
(B) with respect to an eligible recipient of
19
a covered loan that suffered a decline in gross
20
receipts of more than 80 percent in 2020 as
21
compared to 2019 or in the 6-month period be-
22
ginning on the date of the origination of the
23
covered loan as compared to a comparable pe-
24
riod, and as determined by the eligible recipient
25
VerDate Sep 11 2014
19:24 Jul 27, 2020
Jkt 099200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H7481.IH
H7481
pamtmann on DSKBC07HB2PROD with BILLS
4
•HR 7481 IH
of a covered loan, the 12-month period begin-
1
ning on—
2
(i) the date of the origination of the
3
covered loan;
4
(ii) the first day of the next scheduled
5
pay period following the date of the origi-
6
nation of the covered loan;
7
(iii) the first day of the first full
8
month following the date of the origination
9
of the covered loan; or
10
(iv) April 15, 2020.
11
(6) ELIGIBLE RECIPIENT.—The term ‘‘eligible
12
recipient’’—
13
(A) means an individual or entity that—
14
(i) is eligible to receive a loan made
15
under section 7(a)(36) of the Small Busi-
16
ness Act (15 U.S.C. 636(a)(36)); or
17
(ii) as of February 15, 2020, has not
18
more than 5,000 full-time employees;
19
(B) includes—
20
(i) a nonprofit organization that—
21
(I) as of February 15, 2020, has
22
not more than 5,000 full-time employ-
23
ees; and
24
VerDate Sep 11 2014
19:24 Jul 27, 2020
Jkt 099200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H7481.IH
H7481
pamtmann on DSKBC07HB2PROD with BILLS
5
•HR 7481 IH
(II) is not more than 50 percent
1
owned or controlled by a State, local,
2
or Tribal government;
3
(ii) a business concern that—
4
(I) deals in rare coins and
5
stamps; and
6
(II) as of February 15, 2020, has
7
not more than 5,000 full-time employ-
8
ees; and
9
(iii) a business concern that leases or
10
finances equipment to other businesses, if
11
the business concern—
12
(I) as of February 15, 2020, has
13
not more than 5,000 full-time employ-
14
ees; and
15
(II) is not—
16
(aa) a mortgage lender; or
17
(bb) a lender participating
18
in the loan program under sec-
19
tion 7(a)(36) of the Small Busi-
20
ness Act (15 U.S.C. 636(a)(36)).
21
(7) MINORITY DEPOSITORY INSTITUTION.—The
22
term ‘‘minority depository institution’’ has the
23
meaning given the term in section 308 of the Finan-
24
VerDate Sep 11 2014
19:24 Jul 27, 2020
Jkt 099200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H7481.IH
H7481
pamtmann on DSKBC07HB2PROD with BILLS
6
•HR 7481 IH
cial Institutions Reform, Recovery, and Enforcement
1
Act of 1989 (12 U.S.C. 1463 note).
2
(8) NONPROFIT
ORGANIZATION.—The term
3
‘‘nonprofit organization’’ means an entity described
4
in paragraph (3), (5), (6), (7) (related to housing),
5
(12), (13), or (19) of section 501(c) of the Internal
6
Revenue Code and that is exempt from taxation
7
under section 501(a) of such Code.
8
(9) PAYROLL COSTS.—The term ‘‘payroll costs’’
9
has the meaning given the term in section
10
7(a)(36)(A) of the Small Business Act (15 U.S.C.
11
636(a)(36)(A)), except that such costs shall not in-
12
clude—
13
(A) qualified wages taken into account in
14
determining the credit allowed under section
15
2301(g) of the CARES Act (Public Law 116–
16
136); or
17
(B) any payments made to an independent
18
contractor.
19
(10)
SECRETARY.—The
term
‘‘Secretary’’
20
means the Secretary of the Treasury.
21
(11) UNDERSERVED
BORROWER.—The term
22
‘‘underserved borrower’’ means any business concern
23
that has traditionally had difficulty accessing fi-
24
nance, including—
25
VerDate Sep 11 2014
19:24 Jul 27, 2020
Jkt 099200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H7481.IH
H7481
pamtmann on DSKBC07HB2PROD with BILLS
7
•HR 7481 IH
(A) business concerns that—
1
(i) have fewer than 25 full-time equiv-
2
alent employees as of February 15, 2020,
3
and do not have a strong relationship with
4
a bank;
5
(ii) are owned or controlled by minori-
6
ties;
7
(iii) are owned or controlled by
8
women;
9
(iv) are owned or controlled by vet-
10
erans, including service-disabled veterans
11
(as those terms are defined in section 3(q)
12
of the Small Business Act (15 U.S.C.
13
632(q))); or
14
(v) are located in low-income and
15
rural communities, including low-income
16
communities as defined in section 45D(e)
17
of the Internal Revenue Code of 1986; and
18
(B) Tribal business concerns.
19
(b) ESTABLISHMENT.—The Administrator shall es-
20
tablish a program to guarantee loans made to eligible re-
21
cipients affected by COVID–19.
22
(c) PARTICIPATION.—In an agreement to participate
23
in a covered loan on a deferred basis, the participation
24
by the Administration shall be 100 percent.
25
VerDate Sep 11 2014
19:24 Jul 27, 2020
Jkt 099200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H7481.IH
H7481
pamtmann on DSKBC07HB2PROD with BILLS
8
•HR 7481 IH
(d) TERMS AND REQUIREMENTS.—
1
(1) DURATION.—Except as provided in para-
2
graph (4), the duration of a covered loan shall be for
3
not more than 7 years.
4
(2) AMOUNT.—
5
(A) IN GENERAL.—The amount of a cov-
6
ered loan made to an eligible recipient shall be
7
not more than the lesser of—
8
(i) 45 percent of the 2019 gross re-
9
ceipts of the eligible recipient; and
10
(ii) $12,000,000.
11
(B) DUPLICATION OF ASSISTANCE.—An el-
12
igible recipient of a covered loan shall not use
13
proceeds of the covered loan for the same ex-
14
penses that are covered using funds received
15
under subsection (a)(36) or (b)(2) of section 7
16
of the Small Business Act (15 U.S.C. 636), sec-
17
tion 1110 of the CARES Act (Public Law 116–
18
136), or section 4003 of the CARES Act (Pub-
19
lic Law 116–136).
20
(3) INTEREST RATE.—
21
(A) IN GENERAL.—Except as provided in
22
paragraph (4), the interest rate on a covered
23
loan shall be, as determined by the Adminis-
24
trator and the Secretary—
25
VerDate Sep 11 2014
19:24 Jul 27, 2020
Jkt 099200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H7481.IH
H7481
pamtmann on DSKBC07HB2PROD with BILLS
9
•HR 7481 IH
(i) for the first 2 years of the covered
1
loan, not less than 2 percent and not more
2
than 4 percent; and
3
(ii) for the third through seventh
4
years of the covered loan, the Applicable
5
Federal Rate plus 250 to 600 basis points
6
based on the decline in gross receipts of
7
the eligible recipient.
8
(B) NO PAYMENTS FOR 12 MONTHS.—No
9
interest payments shall be due on a covered
10
loan for the first 12 months of the covered loan.
11
(4) SPECIAL PROVISIONS FOR NONPROFIT OR-
12
GANIZATIONS.—At the time of application for a cov-
13
ered loan, a nonprofit organization described in sub-
14
section (a)(5)(B) shall make an election—
15
(A) for a covered loan with a maturity of
16
not more than 14 years and an interest rate of
17
not more than 2 percent for the first 4 years
18
and the Applicable Federal Rate plus 100 to
19
300 basis points for the remaining duration of
20
a covered loan, with no eligibility for forgiveness
21
of the covered loan under subsection (j); or
22
(B) for a covered loan with the maturity
23
and interest rate terms described in paragraphs
24
(1) and (3), respectively, with the ability to ob-
25
VerDate Sep 11 2014
19:24 Jul 27, 2020
Jkt 099200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H7481.IH
H7481
pamtmann on DSKBC07HB2PROD with BILLS
10
•HR 7481 IH
tain forgiveness of the covered loan if the non-
1
profit organization qualifies under subsection
2
(j)(2).
3
(5) PAYMENT DEFERRAL.—
4
(A) IN GENERAL.—No payment of prin-
5
cipal shall be due on a covered loan for the first
6
2 years of the covered loan.
7
(B) ADDITIONAL DEFERRAL.—After the 2-
8
year deferral period described in subparagraph
9
(A), the Administrator may grant not more
10
than an additional 2 years of principal deferral
11
to an eligible recipient of a covered loan if the
12
eligible recipient is certified by the Adminis-
13
trator and the Secretary as economically dis-
14
tressed based on publicly available criteria es-
15
tablished by the Administrator and the Sec-
16
retary.
17
(6) ORIGINATION FEES.—
18
(A) IN GENERAL.—The origination fee for
19
a covered loan shall be as follows:
20
(i) 3.75 percent for a covered loan of
21
not more than $100,000.
22
(ii) 3.5 percent for a covered loan of
23
more than $100,000 and not more than
24
$250,000.
25
VerDate Sep 11 2014
19:24 Jul 27, 2020
Jkt 099200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H7481.IH
H7481
pamtmann on DSKBC07HB2PROD with BILLS
11
•HR 7481 IH
(iii) 3.25 percent for a covered loan of
1
more than $250,000 and not more than
2
$500,000.
3
(iv) 3 percent for a covered loan of
4
more than $500,000 and not more than
5
$750,000.
6
(v) 2.75 percent for a covered loan of
7
more than $750,000 and not more than
8
$1,000,000.
9
(vi) 2.5 percent for a covered loan of
10
more than $1,000,000 and not more than
11
$1,500,000.
12
(vii) 2.25 percent for a covered loan of
13
more than $1,500,000 and not more than
14
$1,750,000.
15
(viii) 2 percent for a covered loan of
16
more than $1,750,000 and not more than
17
$2,000,000.
18
(ix) 1.75 percent for a covered loan of
19
more than $2,000,000 and not more than
20
$2,500,000.
21
(x) 1.5 percent for a covered loan of
22
more than $2,500,000 and not more than
23
$3,000,000.
24
VerDate Sep 11 2014
19:24 Jul 27, 2020
Jkt 099200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H7481.IH
H7481
pamtmann on DSKBC07HB2PROD with BILLS
12
•HR 7481 IH
(xi) 1.25 percent for a covered loan of
1
more than $3,000,000 and not more than
2
$3,500,000.
3
(xii) 1 percent for a covered loan of
4
more than $3,500,000 and not more than
5
$4,000,000.
6
(xiii) 0.75 percent for a covered loan
7
of more than $4,000,000 and not more
8
than $12,000,000.
9
(B) PAYMENT
BY
FEDERAL
GOVERN-
10
MENT.—The Administrator shall—
11
(i) for any covered loan that is made
12
to an eligible recipient with not more than
13
500 full-time employees as of February 15,
14
2020, together with all its affiliates in the
15
aggregate, without regard to any waiver of
16
applicable affiliation rules, pay the applica-
17
ble origination fee described in subpara-
18
graph (A); and
19
(ii) for any covered loan of not more
20
than $10,000,000 that is made to an eligi-
21
ble recipient with more than 500 full-time
22
employees as of February 15, 2020, in the
23
aggregate, without regard to any waiver of
24
applicable affiliation rules, pay 50 percent
25
VerDate Sep 11 2014
19:24 Jul 27, 2020
Jkt 099200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H7481.IH
H7481
pamtmann on DSKBC07HB2PROD with BILLS
13
•HR 7481 IH
of the amount of the applicable origination
1
fee described in subparagraph (A).
2
(C) PAYMENT BY ELIGIBLE RECIPIENT.—
3
After any applicable payments by the Adminis-
4
trator under subparagraph (B), the eligible re-
5
cipient of a covered loan—
6
(i) shall be responsible for paying the
7
remainder of any applicable origination fee
8
under subparagraph (A); and
9
(ii) may finance the amount of the ap-
10
plicable origination fee as part of the cov-
11
ered loan amount, with such origination
12
fee amount not counting toward the limita-
13
tion on covered loan amounts described in
14
paragraph (2)(A).
15
(7) STREAMLINED PROCEDURES.—The Admin-
16
istrator and the Secretary shall establish streamlined
17
application and loan approval procedures for eligible
18
recipients with not more than 500 full-time employ-
19
ees, including by allowing an eligible recipient to use
20
an existing application submitted to a lender for the
21
loan program under section 7(a)(36) of the Small
22
Business Act (15 U.S.C. 636(a)(36)) and update the
23
application as necessary for purposes of applying for
24
a covered loan.
25
VerDate Sep 11 2014
19:24 Jul 27, 2020
Jkt 099200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H7481.IH
H7481
pamtmann on DSKBC07HB2PROD with BILLS
14
•HR
[Text truncated for display. Full text available on Congress.gov.]