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Division I — Small Business Provisions

H.R. 6800 · 116th Congress · May 20, 2020 · Lineage

I Small Business Provisions

Sec. 90001 Amendments to the paycheck protection program

(a)
Extension of covered period— Section 7(a)(36)(A)(iii) of the Small Business Act (15 U.S.C. 636(a)(36)(A)(iii)) is amended by striking “June 30, 2020” and inserting “December 31, 2020”.
(b)
Tribal business concerns— Section 7(a)(36)(D) of the Small Business Act (15 U.S.C. 636(a)(36)(D)) is amended by striking “described in section 31(b)(2)(C)” each place it appears.
(c)
Inclusion of critical access hospitals in the paycheck protection program— Section 7(a)(36)(D) of the Small Business Act (15 U.S.C. 636(a)(36)(D)) is amended by adding at the end the following new clause:

“(vii) Inclusion of critical access hospitals—During the covered period, any nonprofit organization that is a critical access hospital (as defined in section 1861(mm) of the Social Security Act (42 U.S.C. 1395x(mm))) shall be eligible to receive a covered loan, regardless of the status of such a hospital as a debtor in a case under chapter 11 of title 11, Unites States Code, or the status of any debts owed by such a hospital to the Federal Government.”

(d)
Modification to eligible entities— Section 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36)) is amended—
(1)
in subparagraph (A)—
(A)
in clause (vii), by striking “section 501(c)(3)” and inserting “section 501(c)”;
(B)
in clause (viii)(II)—
(i)
in item (dd), by striking “or” at the end;
(ii)
in item (ee), by inserting “or”; and
(iii)
by adding at the end the following new item:

“(ff) any compensation of an employee who is a registered lobbyist under the Lobbying Disclosure Act of 1995;”

(C)
in clause (xi)(IV), by striking “and” at the end;
(D)
in clause (xii), by striking the period at the end and inserting “; and”; and
(E)
by adding at the end the following new clause:

“(xiii) the term housing cooperative means a cooperative housing corporation (as defined in section 216(b) of the Internal Revenue Code of 1986).”

(2)
in subparagraph (D)—
(A)
by striking “nonprofit organization,” each place it appears and inserting “housing cooperative,”;
(B)
by adding at the end the following new clause:

“(vii) Nonprofit organization eligibility—During the covered period, any nonprofit organization shall be eligible to receive a covered loan. Any 501(c)(4) organization (as defined in section 501(c)(4) of the Internal Revenue Code of 1986) may receive a covered loan provided that such 501(c)(4) organization has not made and will not make a contribution, expenditure, independent expenditure, or electioneering communication within the meaning of the Federal Election Campaign Act, and has not undertaken and will not undertake similar campaign finance activities in State and local elections, during the election cycle which ends on the date of the general election in this calendar year;”

(C)
in clause (iv)—
(i)
in subclause (II), by striking “and” at the end;
(ii)
in subclause (III), by striking the period at the end and inserting “; and”; and
(iii)
by adding at the end the following new subclause:

“(IV) any nonprofit organization.”

(D)
in clause (vi), by striking “nonprofit organization” and inserting “housing cooperative”.
(e)
Application to Certain Local News Media— Section 7(a)(36)(D) of the Small Business Act (15 U.S.C. 636(a)(36)(D)) is amended—
(1)
in clause (iii)—
(A)
by striking “business concern that employs” and inserting the following:

“(I) employs”

(B)
in subclause (I), by striking the period at the end and inserting “; and”; and
(C)
by adding at the end the following:

“(II) is assigned a North American Industry Classification System code beginning with 511110, 515112, or 515120 and the individual physical location at the time of disbursal does not exceed the size standard established by the Administrator for the applicable code shall be eligible to receive a covered loan for expenses associated with an individual physical location of that business concern to support the continued provision of local news, information, content, or emergency information, and, at the time of disbursal, the individual physical location.”

(2)
in clause (iv) (as amended by subsection (d))—
(A)
in subclause (III), by striking “and” at the end;
(B)
in subclause (IV), by striking the period at the end and inserting “; and”; and
(C)
by adding at the end the following:

“(V) an individual physical location of a business concern described in clause (iii)(II), if such concern shall not pay, distribute, or otherwise provide any portion of the covered loan to any other entity other than the individual physical location that is the intended recipient of the covered loan.”

(3)
by adding at the end the following new clause:

“(viii) Additional requirements for news broadcast entities

“(I) In general—With respect to an individual physical location of a business concern described in clause (iii)(II), each such location shall be treated as an independent, nonaffiliated entity for purposes of this paragraph. A parent company, investment company, or management company of one or more physical locations of a business concern described in clause (iii)(II) shall not be eligible for a covered loan.

“(II) Demonstration of need—Any such location that is a franchise or affiliate of, or owned or controlled by a parent company, investment company, or the management thereof, shall demonstrate, upon request of the Administrator, the need for a covered loan to support the continued provision of local news, information, content, or emergency information, and, at the time of disbursal, the individual physical location.

“(III) Report—The Administrator and Secretary of the Treasury shall submit to the Committee on Small Business of the House of Representatives, the Committee on Small Business and Entrepreneurship of the Senate, and the Congressional Oversight Commission established under section 4020 of the CARES Act a report including information on loans made to an entity described under this clause.”

(f)
Application of certain terms through life of covered loan— Section 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36)) is amended—
(1)
in subparagraph (H), by striking “During the covered period, with” and inserting “With”;
(2)
in subparagraph (I), by striking “During the covered period, the” and inserting “The”;
(3)
in subparagraph (J), by striking “During the covered period, with” and inserting “With”;
(4)
in subparagraph (M)—
(A)
in clause (ii), by striking “During the covered period, the” and inserting “The”; and
(B)
in clause (iii), by striking “During the covered period, with” and inserting “With”.
(g)
Loan maturity— Section 7(a)(36)(K)(ii) of the Small Business Act (15 U.S.C. 636(a)(36)(K)(ii)) is amended by inserting “minimum maturity of 5 years” before “maximum maturity”.
(h)
Interest calculation— Section 7(a)(36)(L) of the Small Business Act (15 U.S.C. 636(a)(36)(L)) is amended by inserting “, calculated on a non-compounding, non-adjustable basis” after “4 percent”.
(i)
Funding for the paycheck protection program—
(1)
In general— Section 7(a)(36)(S) of the Small Business Act (15 U.S.C. 636(a)(36)(S)) is amended to read as follows:

“(S) Set aside for certain entities—The Administrator shall provide for the cost to guarantee covered loans made under this paragraph—

“(i) a set aside of not less than 25 percent of each such amount for covered loans made to eligible recipients with 10 or fewer employees; and

“(ii) a set aside of 25 percent of each such amount for covered loans made to nonprofit organizations, of which not more than 12.5 percent of each such amount set aside may be used to make covered loans to nonprofit organizations with 500 or more employees.”

(2)
Set aside for community financial institutions— Of amounts appropriated by the Paycheck Protection Program and Health Care Enhancement Act (Public Law 116–139) under the heading “Small Business Administration—Business Loans Program Account, CARES Act” that have not been obligated or expended, the lesser of 25 percent of such amounts or $10,000,000,000 shall be set aside for the cost to guarantee covered loans made under section 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36)) by community financial institutions (as such term is defined in subparagraph (A)(xi) of such section).
(3)
Amounts returned— Section 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36)) is amended by adding at the end the following new subparagraph:

“(T) Amounts returned—Any amounts returned to the Secretary of the Treasury due to the cancellation of a covered loan shall be solely used for the cost to guarantee covered loans made to eligible recipients with 10 or fewer employees.”

(j)
Treatment of certain criminal violations—
(1)
In general— Section 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36)), as amended by subsection (i), is further amended by adding at the end the following new subparagraph:

“(U) Treatment of certain criminal violations

“(i) Financial fraud or deception—A entity that is a business, organization, cooperative, or enterprise may not receive a covered loan if an owner of 20 percent or more of the equity of such entity, during the 5-year period preceding the date on which such entity applies for a covered loan, has been convicted of a felony of financial fraud or deception under Federal, State, or Tribal law.

“(ii) Arrests or convictions—An entity that is a business, organization, cooperative, or enterprise shall be an eligible recipient notwithstanding a prior arrest or conviction under Federal, State, or Tribal law of an owner of 20 percent or more of the equity of such entity, unless such owner is currently incarcerated.

“(iii) Waiver—The Administrator may waive the requirements of clause (i).”

(2)
Rulemaking— Not later than 15 days after the date of enactment of this Act, the Administrator of the Small Business Administration shall make necessary revisions to any rules to carry out the amendment made by this subsection.
(k)
Technical assistance for community financial institutions— Section 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36)), as amended by subsection (i), is further amended by adding at the end the following new subparagraph:

“(V) Technical assistance for community financial institutions—Of amounts appropriated to carry out this paragraph, the Secretary of the Treasury, in consultation with the Administrator, shall use $250,000,000 of such amounts to provide grants to community financial institutions, insured depository institutions with consolidated assets of less than $10,000,000,000, and credit unions with consolidated assets of less than $10,000,000,000, to ensure such institutions can update their systems (including updates related to compliance with the Bank Secrecy Act) and efficiently provide loans that are guaranteed under this paragraph.”

(l)
Technical amendment— Section 7(a)(36)(G) of the Small Business Act (15 U.S.C. 636(a)(36)) is amended—
(1)
in the subparagraph heading, by striking “Borrower requirements” and all that follows through “eligible recipient applying” and inserting “Borrower certification requirements.—An eligible recipient applying”; and
(2)
by redesignating subclauses (I) through (IV) as clauses (i) through (iv), respectively.

Sec. 90002 Commitments for Paycheck Protection Program

Section 1102(b) of the CARES Act (Public Law 116–136) is amended by striking “June 30, 2020” and all that follows through the period at the end and inserting “December 31, 2020, the amount authorized for commitments for loans made under paragraph (36) of section 7(a) of the Small Business Act, as added by subsection (a), shall be $659,000,000,000. The amount authorized under this section for commitments for loans made under section 7(a)(36) of the Small Business Act shall be in addition to the amount authorized under the heading “Small Business Administration—Business Loans Program Account” in the Financial Services and General Government Appropriations Act, 2020 (division C of Public Law 116–93) for commitments for general business loans made under section 7(a) of the Small Business Act.”.

Sec. 90003 Inclusion of SCORE and Veteran Business Outreach Centers in entrepreneurial development programs

(a)
In general— Section 1103(a)(2) of the CARES Act (Public Law 116–136) is amended—
(1)
in subparagraph (A), by striking “and” at the end; and
(2)
by adding at the end the following new subparagraphs:

“(C) a Veteran Business Outreach Center (as described under section 32(d) of the Small Business Act); and

“(D) the Service Corps of Retired Executives Association, or any successor or other organization, that receives a grant from the Administrator to operate the SCORE program established under section 8(b)(2)(A) of the Small Business Act;”

(b)
Funding— Section 1107(a)(4) of the CARES Act (Public Law 116–136) is amended—
(1)
in subparagraph (A)—
(A)
by striking “$240,000,000” and inserting “$220,000,000”;
(B)
by striking “and” at the end; and
(2)
by adding at the end the following new subparagraphs:

“(C) $10,000,000 shall be for a Veteran Business Outreach Center described in section 1103(a)(2)(C) of this Act to carry out activities under such section; and

“(D) $10,000,000 shall be for the Service Corps of Retired Executives Association described in section 1103(a)(2)(D) of this Act to carry out activities under such section;”

Sec. 90004 Amendments to paycheck protection program loan forgiveness

(a)
Covered period—
(1)
In general— Section 1106(a)(3) of the CARES Act (Public Law 116–136) is amended to read as follows:

“(3) the term covered period means the period beginning on the date of the origination of a covered loan and ending on the earlier of—

“(A) the date that is 24 weeks after such date of origination; or

“(B) December 31, 2020;”

(2)
Exemption for rehires— Section 1106(d)(5)(B) of such Act is amended by striking “June 30, 2020” each place it appears and inserting “December 31, 2020”.
(b)
Definition of expected forgiveness amount—
(1)
Definition of expected forgiveness amount— Section 1106(a)(7) of the CARES Act (Public Law 116–136) is amended—
(A)
in subparagraph (C), by striking “and” at the end;
(B)
in subparagraph (D), by striking “and” at the end; and
(C)
by adding at the end the following new subparagraphs:

“(E) interest on any other debt obligations that were incurred before the covered period;

“(F) any amount that was a loan made under subsection (b)(2) that was refinanced as part of a covered loan and authorized by section 7(a)(36)(F)(iv) of the Small Business Act; and”

(2)
Forgiveness— Section 1106(b) of the CARES Act (Public Law 116–136) is amended by adding at the end the following new paragraphs:

“(5) Any payment of interest on any other debt obligations that were incurred before the covered period.

“(6) Any amount that was a loan made under section 7(b)(2) of the Small Business Act that was refinanced as part of a covered loan and authorized by section 7(a)(36)(F)(iv) of such Act.”

(3)
Conforming amendments— Section 1106 of the CARES Act (Public Law 116–136) is amended—
(A)
in subsection (e)—
(i)
in paragraph (2), by striking “payments on covered mortgage obligations, payments on covered lease obligations, and covered utility payments” and inserting “payments or amounts refinanced described under subsection (b) (other than payroll costs)”;
(ii)
in paragraph (3)(B), by striking “, make interest payments” and all that follows through “or make covered utility payments” and inserting “, make payments described under subsection (b), or that was refinanced as part of a covered loan and authorized by section 7(a)(36)(F)(iv) of the Small Business Act”; and
(B)
in subsection (h), by striking “payments for payroll costs, payments on covered mortgage obligations, payments on covered lease obligations, or covered utility payments” each place it appears and inserting “payments or amounts refinanced described under subsection (b)”.
(c)
Application requirements for paycheck protection program loan forgiveness— Section 1106(e) of the CARES Act (Public Law 116–136) as amended by subsection (b), is further amended—
(1)
in paragraph (3)(B), by striking “and” at the end;
(2)
by redesignating paragraph (4) as paragraph (6); and
(3)
by inserting after paragraph (3) the following new paragraphs:

“(4) information on the veteran status, gender, race, and ethnicity, as reported on Form 1919 of the Administration or any similar loan application form of the Administration, of the eligible recipient;

“(5) the number of full-time equivalent employees of the eligible recipient—

“(A) on February 15, 2020;

“(B) on the day the eligible recipient submitted an application for a covered loan; and

“(C) on the day the eligible recipient submitted an application for forgiveness of a covered loan under this section; and”

(d)
Hold harmless for eligible recipients— Section 1106(d) of the CARES Act (Public Law 116–136) is amended by adding at the end the following new paragraph:

“(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 reduction in the number of full-time equivalent employees if an eligible recipient—

“(A) is unable rehire an individual who was an employee of the eligible recipient on or before February 15, 2020;

“(B) is able to demonstrate an inability to find similarly qualified employees on or before December 31, 2020; or

“(C) is able to demonstrate an inability to return to the same level of business activity as such business was operating at prior to February 15, 2020.”

(e)
Prohibition on limiting forgiveness— Section 1106(d) of the CARES Act (Public Law 116–136), as amended by subsection (d), is further amended by adding at the end the following new paragraph:

“(8) No limitations—In carrying out this section, the Administrator may not limit the non-payroll portion of a forgivable covered loan amount.”

(f)
Hold harmless— Section 1106(h) of the CARES Act (Public Law 116–136), as amended by subsection (b)(3)(B), is further amended by striking “If a lender” and all that follows through “during covered period” inserting the following: “If a lender has received any documentation required under this Act related to payments or amounts refinanced described under subsection (b) (other than payroll costs) made by an eligible recipient attesting that the eligible recipient has accurately verified such payments”.

Sec. 90005 Improved coordination between paycheck protection program and employee retention tax credit

(a)
Amendment to paycheck protection program— Section 1106(a)(8) of the CARES Act (Public Law 116–136) is amended by inserting “, except that such costs shall not include qualified wages taken into account in determining the credit allowed under section 2301 of this Act” before the period at the end.
(b)
Amendments to employee retention tax credit—
(1)
In general— Section 2301(g) of the CARES Act (Public Law 116–136) is amended to read as follows:

“(g) Election to not take certain wages into account

“(1) In general—This section shall not apply to qualified wages paid by an eligible employer with respect to which such employer makes an election (at such time and in such manner as the Secretary may prescribe) to have this section not apply to such wages.

“(2) Coordination with paycheck protection program—The Secretary, in consultation with the Administrator of the Small Business Administration, shall issue guidance providing that payroll costs paid or incurred during the covered period shall not fail to be treated as qualified wages under this section by reason of an election under paragraph (1) to the extent that a covered loan of the eligible employer is not forgiven by reason of a decision under section 1106(g). Terms used in the preceding sentence which are also used in section 1106 shall have the same meaning as when used in such section.”

(2)
Conforming amendments—
(A)
Section 2301 of the CARES Act (Public Law 116–136) is amended by striking subsection (j).
(B)
Section 2301(l) of the CARES Act (Public Law 116–136) is amended by striking paragraph (3) and by redesignating paragraphs (4) and (5) as paragraphs (3) and (4), respectively.
(c)
Effective date— The amendments made by this section shall take effect as if included in the provisions of the CARES Act (Public Law 116–136) to which they relate.

Sec. 90006 Allowable uses of covered loans; forgiveness

(a)
Paycheck protection program— Section 7(a)(36)(F)(i) of the Small Business Act (15 U.S.C. 636(a)(36)(F)(i)) is amended—
(1)
in subclause (VI), by striking “and” at the end;
(2)
in subclause (VII), by striking the period at the end and inserting “; and”; and
(3)
by adding at the end the following new subclause:

“(VIII) costs related to the provision of personal protective equipment for employees or other equipment or supplies determined by the employer to be necessary to protect the health and safety of employees.”

(b)
Forgiveness—
(1)
Definition of expected forgiveness amount— Section 1106(a)(7) of the CARES Act (Public Law 116–136), as amended by section 90004(b)(1), is further amended by adding at the end the following new subparagraph:

“(G) payments made for the provision of personal protective equipment for employees or other equipment or supplies determined by the employer to be necessary to protect the health and safety of employees; and”

(2)
Forgiveness— Section 1106(b) of the CARES Act (Public Law 116–136), as amended by section 90004(b)(2), is further amended by adding at the end the following new paragraph:

“(7) Any payment made for the provision of personal protective equipment for employees or other equipment or supplies determined by the employer to be necessary to protect the health and safety of employees.”

Sec. 90007 Prohibiting conflicts of interest for small business programs under the CARES Act

Section 4019 of the CARES Act (Public Law 116–136) is amended—
(1)
in subsection (a), by adding at the end the following:

“(7) Small business assistance—The term small business assistance means assistance provided under—

“(A) paragraph (36) of section 7(a) of the Small Business Act (15 U.S.C. 636(a)), as added by section 1102 of this Act;

“(B) subsection (b) or (c) of section 1103 of this Act;

“(C) section 1110 of this Act; or

“(D) section 1112 of this Act.”

(2)
in subsection (b)—
(A)
by inserting “or provisions relating to small business assistance” after “this subtitle”; and
(B)
by inserting “or for any small business assistance” before the period at the end; and
(3)
in subsection (c)—
(A)
by inserting “or seeking any small business assistance” after “4003”;
(B)
by inserting “or small business assistance” after “that transaction”;
(C)
by inserting “or the Administrator of the Small Business Administration, as applicable,” after “System”; and
(D)
by inserting “or receive the small business assistance” after “in that transaction”.

Sec. 90008 Flexibility in deferral of payments of 7(a) loans

Section 7(a)(7) of the Small Business Act (15 U.S.C. 636(a)(7)) is amended—
(1)
by striking “The Administration” and inserting “(A) In general.—The Administrator”;
(2)
by inserting “and interest” after “principal”; and
(3)
by adding at the end the following new subparagraphs:

“(B) Deferral requirements—With respect to a deferral provided under this paragraph, the Administrator—

“(i) shall require lenders under this subsection to provide full payment deferment relief (including payment of principal and interest) for a period of not more than 1 year; and

“(ii) may allow lenders under this subsection provide an additional deferment period if the borrower provides documentation justifying such additional deferment.

“(C) Secondary market—If an investor declines to approve a deferral or additional deferment requested by a lender under subparagraph (B), the Administrator shall exercise the authority to purchase the loan so that the borrower may receive full payment deferment relief (including payment of principal and interest) or an additional deferment as described under subparagraph (B).”

Sec. 90009 Certain criminal violations and disaster loan applications

(a)
In general— The flush matter following subparagraph (E) of section 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2)) is amended by striking the period at the end and inserting the following: “: Provided further, That any application for a loan or guarantee made pursuant to this paragraph (2) shall include a statement that an applicant is not ineligible for assistance under this paragraph solely because of the applicant’s involvement in the criminal justice system.”.
(b)
Rulemaking— Not later than 15 days after the date of enactment of this Act, the Administrator of the Small Business Administration shall make necessary revisions to any rules to carry out the amendment made by this section.

Sec. 90010 Temporary fee reductions

(a)
Administrative fee waiver—
(1)
In general— During the period beginning on the date of enactment of this Act and ending on September 30, 2021, and to the extent that the cost of such elimination or reduction of fees is offset by appropriations, with respect to each loan guaranteed under section 7(a) of the Small Business Act (15 U.S.C. 636(a)) (including a recipient of assistance under the Community Advantage Pilot Program of the Administration) for which an application is approved or pending approval on or after the date of enactment of this Act, the Administrator shall—
(A)
in lieu of the fee otherwise applicable under section 7(a)(23)(A) of the Small Business Act (15 U.S.C. 636(a)(23)(A)), collect no fee or reduce fees to the maximum extent possible; and
(B)
in lieu of the fee otherwise applicable under section 7(a)(18)(A) of the Small Business Act (15 U.S.C. 636(a)(18)(A)), collect no fee or reduce fees to the maximum extent possible.
(2)
Application of fee eliminations or reductions— To the extent that amounts are made available to the Administrator for the purpose of fee eliminations or reductions under paragraph (1), the Administrator shall—
(A)
first use any amounts provided to eliminate or reduce fees paid by small business borrowers under clauses (i) through (iii) of section 7(a)(18)(A) of the Small Business Act (15 U.S.C. 636(a)(18)(A)), to the maximum extent possible; and
(B)
then use any amounts provided to eliminate or reduce fees under 7(a)(23)(A) of the Small Business Act (15 U.S.C. 636(a)(23)(A)).
(b)
Temporary fee elimination for the 504 loan program—
(1)
In general— During the period beginning on the date of enactment of this section and ending on September 30, 2021, and to the extent the cost of such elimination in fees is offset by appropriations, with respect to each project or loan guaranteed by the Administrator pursuant to title V of the Small Business Investment Act of 1958 (15 U.S.C. 695 et seq.) for which an application is approved or pending approval on or after the date of enactment of this section—
(A)
the Administrator shall, in lieu of the fee otherwise applicable under section 503(d)(2) of the Small Business Investment Act of 1958 (15 U.S.C. 697(d)(2)), collect no fee; and
(B)
a development company shall, in lieu of the processing fee under section 120.971(a)(1) of title 13, Code of Federal Regulations (relating to fees paid by borrowers), or any successor thereto, collect no fee.
(2)
Reimbursement for waived fees—
(A)
In general— To the extent that the cost of such payments is offset by appropriations, the Administrator shall reimburse each development company that does not collect a processing fee pursuant to paragraph (1)(B).
(B)
Amount— The payment to a development company under subparagraph (A) shall be in an amount equal to 1.5 percent of the net debenture proceeds for which the development company does not collect a processing fee pursuant to paragraph (1)(B).

Sec. 90011 Guarantee amounts

(a)
7(a) loan guarantees—
(1)
In general— Section 7(a)(2)(A) of the Small Business Act (15 U.S.C. 636(a)(2)(A)) is amended by striking “), such participation by the Administration shall be equal to” and all that follows through the period at the end and inserting “or the Community Advantage Pilot Program of the Administration), such participation by the Administration shall be equal to 90 percent of the balance of the financing outstanding at the time of disbursement of the loan.”.
(2)
Termination— Effective September 30, 2021, section 7(a)(2)(A) of the Small Business Act (15 U.S.C. 636(a)(2)(A)), as amended by paragraph (1), is amended to read as follows:

“(A) In general—Except as provided in subparagraphs (B), (D), (E), and (F), in an agreement to participate in a loan on a deferred basis under this subsection (including a loan made under the Preferred Lenders Program), such participation by the Administration shall be equal to—

“(i) 75 percent of the balance of the financing outstanding at the time of disbursement of the loan, if such balance exceeds $150,000; or

“(ii) 85 percent of the balance of the financing outstanding at the time of disbursement of the loan, if such balance is less than or equal to $150,000.”

(b)
Express loan guarantee amounts—
(1)
Temporary modification— Section 7(a)(31)(A)(iv) of the Small Business Act (15 U.S.C. 636(a)(31)(A)(iv)) is amended by striking “with a guaranty rate of not more than 50 percent.” and inserting the following:

“(I) for a loan in an amount less than or equal to $350,000, of not more than 90 percent; and

“(II) for a loan in an amount greater than $350,000, of not more than 75 percent.”

(2)
Prospective repeal— Effective January 1, 2021, section 7(a)(31)(A)(iv) of the Small Business Act (15 U.S.C. 636(a)(31)), as amended by paragraph (1), is amended by striking “guarantee rate” and all that follows through the period at the end and inserting “guarantee rate of not more than 50 percent.”.

Sec. 90012 Maximum loan amount for 7(a) loans

During the period beginning on the date of enactment of this section and ending on September 30, 2021, with respect to any loan guaranteed under section 7(a) of the Small Business Act (15 U.S.C. 636(a)) for which an application is approved or pending approval on or after the date of enactment of this section, the maximum loan amount shall be $10,000,000.

Sec. 90013 Maximum loan amount for 504 loans

(a)
Temporary increase— During the period beginning on the date of enactment of this section and ending on September 30, 2021, with respect to each project or loan guaranteed by the Administrator pursuant to title V of the Small Business Investment Act of 1958 (15 U.S.C. 695 et seq.) for which an application is approved or pending approval on or after the date of enactment of this section, the maximum loan amount shall be $10,000,000.
(b)
Permanent increase for small manufacturers— Effective on October 1, 2021, section 502(2)(A)(iii) of the Small Business Investment Act of 1958 (15 U.S.C. 696(2)(A)(iii)) is amended by striking “$5,500,000” and inserting “$10,000,000”.
(c)
Low-interest refinancing under the local development business loan program—
(1)
Repeal— Section 521(a) of division E of the Consolidated Appropriations Act, 2016 (Public Law 114–113; 129 Stat. 2463; 15 U.S.C. 696 note) is repealed.
(2)
Refinancing— Section 502(7) of the Small Business Investment Act of 1958 (15 U.S.C. 696(7)) is amended by adding at the end the following new subparagraph:

“(C) Refinancing not involving expansions

“(i) Definitions—In this subparagraph—

“(I) the term borrower means a small business concern that submits an application to a development company for financing under this subparagraph;

“(II) the term eligible fixed asset means tangible property relating to which the Administrator may provide financing under this section; and

“(III) the term qualified debt means indebtedness that—

“(aa) was incurred not less than 6 months before the date of the application for assistance under this subparagraph;

“(bb) is a commercial loan;

“(cc) the proceeds of which were used to acquire an eligible fixed asset;

“(dd) was incurred for the benefit of the small business concern; and

“(ee) is collateralized by eligible fixed assets; and

“(ii) Authority—A project that does not involve the expansion of a small business concern may include the refinancing of qualified debt if—

“(I) the amount of the financing is not more than 90 percent of the value of the collateral for the financing, except that, if the appraised value of the eligible fixed assets serving as collateral for the financing is less than the amount equal to 125 percent of the amount of the financing, the borrower may provide additional cash or other collateral to eliminate any deficiency;

“(II) the borrower has been in operation for all of the 2-year period ending on the date the loan application is submitted; and

“(III) for a financing for which the Administrator determines there will be an additional cost attributable to the refinancing of the qualified debt, the borrower agrees to pay a fee in an amount equal to the anticipated additional cost.

“(iii) Financing for business expenses

“(I) Financing for business expenses—The Administrator may provide financing to a borrower that receives financing that includes a refinancing of qualified debt under clause (ii), in addition to the refinancing under clause (ii), to be used solely for the payment of business expenses.

“(II) Application for financing—An application for financing under subclause (I) shall include—

“(aa) a specific description of the expenses for which the additional financing is requested; and

“(bb) an itemization of the amount of each expense.

“(III) Condition on additional financing—A borrower may not use any part of the financing under this clause for non-business purposes.

“(iv) Loans based on jobs

“(I) Job creation and retention goals

“(aa) In general—The Administrator may provide financing under this subparagraph for a borrower that meets the job creation goals under subsection (d) or (e) of section 501.

“(bb) Alternate job retention goal—The Administrator may provide financing under this subparagraph to a borrower that does not meet the goals described in item (aa) in an amount that is not more than the product obtained by multiplying the number of employees of the borrower by $75,000.

“(II) Number of employees—For purposes of subclause (I), the number of employees of a borrower is equal to the sum of—

“(aa) the number of full- time employees of the borrower on the date on which the borrower applies for a loan under this subparagraph; and

“(bb) the product obtained by multiplying—

“(AA) the number of part-time employees of the borrower on the date on which the borrower applies for a loan under this subparagraph, by

“(BB) the quotient obtained by dividing the average number of hours each part time employee of the borrower works each week by 40.

“(vi) Total amount of loans—The Administrator may provide not more than a total of $7,500,000,000 of financing under this subparagraph for each fiscal year.”

(d)
Refinancing Senior Project Debt— During the 1-year period beginning on the date of the enactment of this Act, a development company described under title V of the Small Business Investment Act of 1958 (15 U.S.C. 695 et seq.) is authorized to allow the refinancing of a senior loan on an existing project in an amount that, when combined with the outstanding balance on the development company loan, is not more than 90 percent of the total value of the senior loan. Proceeds of such refinancing can be used to support business operating expenses of such development company.

Sec. 90014 Recovery assistance under the microloan program

(a)
Loans to intermediaries—
(1)
In general— Section 7(m) of the Small Business Act (15 U.S.C. 636(m)) is amended—
(A)
in paragraph (3)(C)—
(i)
by striking “and $6,000,000” and inserting “$10,000,000, in the aggregate,”; and
(ii)
by inserting before the period at the end the following: “, and $4,500,000 in any of those remaining years”;
(B)
in paragraph (4)—
(i)
in subparagraph (A), by striking “subparagraph (C)” each place that term appears and inserting “subparagraphs (C) and (G)”;
(ii)
in subparagraph (C), by amending clause (i) to read as follows:

“(i) In general—In addition to grants made under subparagraph (A) or (G), each intermediary shall be eligible to receive a grant equal to 5 percent of the total outstanding balance of loans made to the intermediary under this subsection if—

“(I) the intermediary provides not less than 25 percent of its loans to small business concerns located in or owned by one or more residents of an economically distressed area; or

“(II) the intermediary has a portfolio of loans made under this subsection—

“(aa) that averages not more than $10,000 during the period of the intermediary’s participation in the program; or

“(bb) of which not less than 25 percent is serving rural areas during the period of the intermediary’s participation in the program.”

(iii)
by adding at the end the following:

“(G) Grant amounts based on appropriations—In any fiscal year in which the amount appropriated to make grants under subparagraph (A) is sufficient to provide to each intermediary that receives a loan under paragraph (1)(B)(i) a grant of not less than 25 percent of the total outstanding balance of loans made to the intermediary under this subsection, the Administration shall make a grant under subparagraph (A) to each intermediary of not less than 25 percent and not more than 30 percent of that total outstanding balance for the intermediary.”

(C)
by striking paragraph (7) and inserting the following:

“(7) Program funding for microloans—Under the program authorized by this subsection, the Administration may fund, on a competitive basis, not more than 300 intermediaries.”

(2)
Prospective amendment— Effective on October 1, 2021, section 7(m)(3)(C) of the Small Business Act (15 U.S.C. 636(m)(3)(C)), as amended by paragraph (1)(A), is further amended—
(A)
by striking “$10,000,000” and by inserting “$7,000,000”; and
(B)
by striking “$4,500,000” and inserting “$3,000,000”.
(b)
Temporary waiver of technical assistance grants matching requirements and flexibility on pre- and post-loan assistance— During the period beginning on the date of enactment of this section and ending on September 30, 2021, the Administration shall waive—
(1)
the requirement to contribute non-Federal funds under section 7(m)(4)(B) of the Small Business Act (15 U.S.C. 636(m)(4)(B)); and
(2)
the limitation on amounts allowed to be expended to provide information and technical assistance under clause (i) of section 7(m)(4)(E) of the Small Business Act (15 U.S.C. 636(m)(4)(E)) and enter into third-party contracts to provide technical assistance under clause (ii) of such section 7(m)(4)(E).
(c)
Temporary duration of loans to borrowers—
(1)
In general— During the period beginning on the date of enactment of this section and ending on September 30, 2021, the duration of a loan made by an eligible intermediary under section 7(m) of the Small Business Act (15 U.S.C. 636(m))—
(A)
to an existing borrower may be extended to not more than 8 years; and
(B)
to a new borrower may be not more than 8 years.
(2)
Reversion— On and after October 1, 2021, the duration of a loan made by an eligible intermediary to a borrower under section 7(m) of the Small Business Act (15 U.S.C. 636(m)) shall be 7 years or such other amount established by the Administrator.
(d)
Funding— Section 20 of the Small Business Act (15 U.S.C. 631 note) is amended by adding at the end the following:

“(h) Microloan program—For each of fiscal years 2021 through 2025, the Administration is authorized to make—

“(1) $80,000,000 in technical assistance grants, as provided in section 7(m); and

“(2) $110,000,000 in direct loans, as provided in section 7(m).”

(e)
Authorization of appropriations— In addition to amounts provided under the Consolidated Appropriations Act, 2020 (Public Law 116–93) for the program established under section 7(m) of the Small Business Act (15 U.S.C. 636(m)), there is authorized to be appropriated for fiscal year 2020, to remain available until expended—
(1)
$50,000,000 to provide technical assistance grants under such section 7(m); and
(2)
$7,000,000 to provide direct loans under such section 7(m).

Sec. 90015 Cybersecurity awareness reporting

Section 10 of the Small Business Act (15 U.S.C. 639) is amended by inserting after subsection (a) the following:

“(b) Cybersecurity reports

“(1) Annual report—Not later than 180 days after the date of enactment of this subsection, and every year thereafter, the Administrator shall submit a report to the appropriate congressional committees that includes—

“(A) an assessment of the information technology (as defined in section 11101 of title 40, United States Code) and cybersecurity infrastructure of the Administration;

“(B) a strategy to increase the cybersecurity infrastructure of the Administration;

“(C) a detailed account of any information technology equipment or interconnected system or subsystem of equipment of the Administration that was manufactured by an entity that has its principal place of business located in the People’s Republic of China; and

“(D) an account of any cybersecurity risk or incident that occurred at the Administration during the 2-year period preceding the date on which the report is submitted, and any action taken by the Administrator to respond to or remediate any such cybersecurity risk or incident.

“(2) Additional reports—If the Administrator determines that there is a reasonable basis to conclude that a cybersecurity risk or incident occurred at the Administration, the Administrator shall—

“(A) not later than 7 days after the date on which the Administrator makes that determination, notify the appropriate congressional committees of the cybersecurity risk or incident; and

“(B) not later than 30 days after the date on which the Administrator makes a determination under subparagraph (A)—

“(i) provide notice to individuals and small business concerns affected by the cybersecurity risk or incident; and

“(ii) submit to the appropriate congressional committees a report, based on information available to the Administrator as of the date which the Administrator submits the report, that includes—

“(I) a summary of information about the cybersecurity risk or incident, including how the cybersecurity risk or incident occurred; and

“(II) an estimate of the number of individuals and small business concerns affected by the cybersecurity risk or incident, including an assessment of the risk of harm to affected individuals and small business concerns.

“(3) Rule of construction—Nothing in this subsection shall be construed to affect the reporting requirements of the Administrator under chapter 35 of title 44, United States Code, in particular the requirement to notify the Federal information security incident center under section 3554(b)(7)(C)(ii) of such title, or any other provision of law.

“(4) Definitions—In this subsection:

“(A) Appropriate congressional committees—The term appropriate congressional committees means—

“(i) the Committee on Small Business and Entrepreneurship of the Senate; and

“(ii) the Committee on Small Business of the House of Representatives.

“(B) Cybersecurity risk; incident—The terms cybersecurity risk and incident have the meanings given such terms, respectively, under section 2209(a) of the Homeland Security Act of 2002.”

Sec. 90016 Reporting on small business programs under the CARES Act

(a)
Definitions— In this section—
(1)
the terms Administration and Administrator mean the Small Business Administration and the Administrator thereof;
(2)
the term appropriate congressional committees means—
(A)
Committee on Appropriations and the Committee on Small Business and Entrepreneurship of the Senate; and
(B)
the Committee on Appropriations and the Committee on Small Business of the House of Representatives;
(3)
the term covered assistance means—
(A)
loans made under section 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36));
(B)
an advance on a loan made under section 1110(e) of the CARES Act (Public Law 116–136);
(C)
loans made under section 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2)), including those made in accordance with section 1110 of the CARES Act (Public Law 116–136);
(D)
loan forgiveness under section 1106 of the CARES Act (Public Law 116–136); and
(E)
the payment of principal, interest, and fees under section 1112(c) of the CARES Act (Public Law 116–136);
(4)
the term covered loan has the meaning given the term in section 1112(a) of the CARES Act (Public Law 116–136);
(5)
the term demographics means veteran status, gender, race, and ethnicity, as reported on Form 1919 of the Administration or any similar loan application form of the Administration; and
(6)
the term State—
(A)
means any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and any possession of the United States; and
(B)
includes an Indian tribe, as defined in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b).
(b)
Daily reporting—
(1)
In general— During the period beginning on the day after the date of enactment of this Act and ending on the date on which loan, advance, or payment activity described in this subsection related to COVID–19 has ceased, the Administrator shall, on a daily basis, report to Congress on—
(A)
the total number and dollar amount of loans or advances, broken down by loans and advances approved and loans and advances disbursed, under—
(i)
section 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36));
(ii)
section 1110(e) of the CARES Act (Public Law 116–136); and
(iii)
section 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2));
(B)
for loans made under section 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36))—
(i)
the amount of remaining authority for the loans, in dollar amount and as a percentage; and
(ii)
an estimate of the date on which the net and gross dollar amount of loans will reach the maximum amount authorized for commitments for such loans;
(C)
for advances made under section 1110(e) of the CARES Act (Public Law 116–136)—
(i)
the amount of remaining funds appropriated for the advances, in dollar amount and as a percentage; and
(ii)
an estimate of the date on which the funds will be expended; and
(D)
for loans made under section 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2))—
(i)
the amount of remaining authority for the loans, in dollar amount and as a percentage; and
(ii)
an estimate of the date on which the net and gross dollar amount of loans will reach the maximum amount authorized for commitments for such loans.
(2)
Reporting on debt relief for microloans, 7(a) loans, and 504 loans— The Administrator shall include in each daily report submitted under paragraph (1), and update on a monthly basis until the date described in paragraph (1), with respect to payments made on covered loans under section 1112(c) of the CARES Act (Public Law 116–136)—
(A)
the amount of remaining funds appropriated for the payments, in dollar amount and as a percentage; and
(B)
an estimate of the date on which the funds will be expended.
(c)
Weekly reporting—
(1)
In general— Not later than 1 week after the date of enactment of this Act, and every week thereafter until the date on which loan, advance, or payment activity described in this subsection related to COVID–19 has ceased, the Administrator shall submit to Congress a report on—
(A)
loans made under section 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36)), which shall include—
(i)
the number and dollar amount of loans approved for or disbursed to all borrowers, including a breakout of loans by State, congressional district, demographics, industry, and loan size;
(ii)
the number and dollar amount of loans approved for or disbursed to business concerns assigned a North American Industry Classification System code beginning with 72, including a breakout of loans by State, congressional district, demographics, and loan size;
(iii)
the number and dollar amount of loans approved for or disbursed to nonprofit organizations and veterans organizations (as those terms are defined in section 7(a)(36)(A) of the Small Business Act (15 U.S.C. 636(a)(36)(A)), including religious institutions, including a breakout of loans by State, congressional district, industry, and loan size;
(iv)
for each category of borrowers described in clauses (i), (ii), and (iii)—
(I)
the number of full-time equivalent employees at the time at which the borrower submits a loan application;
(II)
the number of full-time equivalent employees at the time at which the borrower receives loan forgiveness under section 1106 of the CARES Act (Public Law 116–136); and
(III)
the number of full-time equivalent employees expected for borrowers in the 6-month period following forgiveness of the loan;
(v)
the number and dollar amount of loans fully forgiven under section 1106 of the CARES Act (Public Law 116–136), as compared to the number and dollar amount of loans made as of the date of the report;
(vi)
the number and dollar amount of loans not fully forgiven under section 1106 of the CARES Act (Public Law 116–136), and the proportion of that dollar amount of loans that become term loans guaranteed by the Administration under section 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36));
(vii)
the total amount of the lender compensation fees paid to lenders; and
(viii)
the total amount lenders paid in broker fees; and
(B)
loans made under section 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2)) and advances made under section 1110(e) of the CARES Act (Public Law 116–136), which shall include—
(i)
the number and dollar amount of loans approved for or disbursed to all borrowers, including a breakout of loans by State, congressional district, demographics, industry, and loan size;
(ii)
the number and dollar amount of advances approved for or disbursed to grantees, including a breakout of loans by State, congressional district, demographics, industry, and grant size;
(iii)
the number and dollar amount of advances approved for or disbursed to private nonprofit organizations, including a breakout by State, congressional district, industry, and loan or grant size;
(iv)
for each category of recipients, the number of full-time equivalent employees of the recipient at the time at which an application is submitted for the loan or advance, and the number of jobs created or retained because of the loan or advance;
(v)
loan processing times, including processing times for application to approval and approval to disbursement; and
(vi)
advance processing times, including the percentage of advances that were provided within 3 days of submission of the application, as required under section 1110(e)(1) of the CARES Act (Public Law 116–136).
(2)
Reporting on debt relief for microloans, 7(a) loans, and 504 loans— The Administrator shall include in each weekly report submitted under paragraph (1), and update on a monthly basis until the date described in paragraph (1), with respect to payments made on covered loans under section 1112(c) of the CARES Act (Public Law 116–136)—
(A)
the total dollar amount approved and the total amount disbursed by the Administration and the number of borrowers receiving assistance under such section 1112(c), including a breakdown by—
(i)
each type of covered loan described in subparagraph (A) and (B) of paragraph (1) and paragraph (2) of such section 1112(a); and
(ii)
whether the borrower is—
(I)
an existing borrower of a covered loan, as described in subparagraph (A) or (B) of such section 1112(c)(1); or
(II)
a new borrower of a covered loan, as described in subparagraph (C) of such section 1112(c)(1);
(B)
the total dollar amount approved and the total amount disbursed by the Administration by the Administration and number of borrowers receiving assistance under such section 1112(c) broken out by State and congressional district, including a breakdown by each type of covered loan described in subparagraph (A) and (B) of paragraph (1) and paragraph (2) of such section 1112(a); and
(C)
the total number and amount of new covered loans by approval and disbursement broken out by lending institution, including a breakout of loans by State, congressional district, demographics, industry, and loan size.
(d)
Report on waste, fraud and abuse— Not later than 30 days after the date of enactment of this Act, the Administrator and the Secretary of the Treasury shall submit to Congress a joint report on steps that the Administration and the Department of the Treasury are taking to identify and prevent potential instances of waste, fraud, and abuse relating to covered assistance, including borrower compliance with any loan deferment, relief, or forgiveness provided through covered assistance.
(e)
Report on jobs for the debt relief program—
(1)
In general— To the extent practicable, with respect to each type of covered loan described in subparagraphs (A) and (B) of paragraph (1) and paragraph (2) of section 1112(a) of the CARES Act (Public Law 116–136), the Administrator shall submit to Congress a report on—
(A)
the number of full-time equivalent employees—
(i)
for existing borrowers of a covered loan, as described in subparagraph (A) or (B) of such section 1112(c)(1) at the start of the debt relief under such section 1112(c); and
(ii)
for new borrowers of a covered loan, as described in subparagraph (C) of such section 1112(c)(1), at the time of application for the covered loan; and
(B)
the number of jobs created or retained because of the covered loan or the debt relief.
(2)
Timing— The Administrator shall, to the extent practicable, submit to Congress the report required under paragraph (1) not later than October 1, 2020, with an updated version submitted not later than January 31, 2021.
(f)
Report on CARES Act salaries and expenses funding— Not later than 30 days after the date of enactment of this Act, the Administrator shall submit to the appropriate congressional committees a report that includes the plans of the Administrator to use the $675,000,000 provided in section 1107(a)(2) of the CARES Act (Public Law 116–136) for salaries and expenses, and the $2,100,000,000 provided in title II of the Paycheck Protection Program and Health Care Enhancement Act (Public Law 116–139) for salaries and expenses (including staff hired, the use of outside consultants, program improvements, and system upgrades), to carry out the provisions of title I of division A of the CARES Act (Public Law 116–136).
(g)
Collection of additional data— The Administrator shall collect and make publically available—
(1)
the number and dollar amount of loans approved and for or disbursed under 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36)) to borrowers broken out by lending institution, including a breakout of loans made by the lending institution by State, congressional district, demographics, industry, and loan size, and the number and percent of loan applicants that were new or existing customers of the lender;
(2)
the total amount of the lender compensation fees paid to each lender under such section 7(a)(36);
(3)
the total amount each lender paid in broker fees under such section 7(a)(36); and
(4)
to the extent practicable, detailed information on processing times for—
(A)
loan approvals and loan disbursements under such section 7(a)(36); and
(B)
notices of forgiveness of the loans under section 1106 of the CARES Act (Public Law 116–136) to borrowers.
(h)
Format of reported data— Not later than 30 days after the date of enactment of this Act, the Administrator shall make available on a publicly available website in a standardized and downloadable format, and update on a monthly basis, any data contained in a report submitted under this section.

Sec. 90017 Funding for resources and services in languages other than English

Of the unobligated balances of amounts appropriated for salaries and expenses by section 1107(a)(2) of the CARES Act (Public Law 116–136), $25,000,000 shall be made available to carry out the requirements of section 1111 of such Act.

Sec. 90018 Direct appropriation

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—
(1)
$500,000,000 under the heading “Small Business Administration—Business Loans Program Account” to carry out the requirements of sections 90010, 90011, and 90012 of this division;
(2)
$7,000,000 under the heading “Small Business Administration—Business Loans Program Account” to carry out the requirements of section 90014 of this division; and
(3)
$50,000,000 under the heading “Small Business Administration—Entrepreneurial Development Programs” for technical assistance grants, as authorized under section 90014 of this division.