Bill text (placed on calendar Senate) — H.R. 3807, Restaurant Revitalization Fund / Relief for Restaurants Act (2022-05-25)

Record facts

Full text

II 
Calendar No. 387 
117TH CONGRESS 
2D SESSION 
H. R. 3807 
IN THE SENATE OF THE UNITED STATES 
APRIL 7, 2022 
Received 
MAY 24, 2022 
Read the first time 
MAY 25, 2022 
Read the second time and placed on the calendar 
AN ACT 
To amend the American Rescue Plan Act of 2021 to increase 
appropriations to the Restaurant Revitalization Fund, 
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 ‘‘Relief for Restaurants 
4
and other Hard Hit Small Businesses Act of 2022’’. 
5
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SEC. 2. RESTAURANT REVITALIZATION GRANTS. 
1
(a) APPROPRIATION.—Section 5003(b)(2) of the 
2
American Rescue Plan Act of 2021 (15 U.S.C. 
3
9009c(b)(2)) is amended— 
4
(1) in subparagraph (A)— 
5
(A) by striking ‘‘$28,600,000,000’’ and in-
6
serting ‘‘$70,600,000,000’’; and 
7
(B) by inserting ‘‘, of which not more than 
8
$420,000,000 shall be for administrative ex-
9
penses to carry out this section, and of which 
10
$7,500,000 shall be for the Inspector General 
11
of 
the 
Small 
Business 
Administration, 
12
$7,500,000 for the Department of Justice for 
13
investigative and prosecutorial activities related 
14
to fraud and abuse, and $7,500,000 for Pan-
15
demic Response Accountability Committee, for 
16
audits of grants under this section to inves-
17
tigate fraud and to identify improper payments 
18
and ineligible recipients, and for other nec-
19
essary expenses’’ before the period at the end; 
20
and 
21
(2) in subparagraph (B)(i)(II), by striking 
22
‘‘$23,600,000,000’’ and inserting ‘‘any remaining 
23
amounts not used for a purpose authorized under 
24
subparagraph (A) or clause (i) of this subpara-
25
graph’’. 
26
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(b) INSUFFICIENT FUNDING.—Section 5003 of the 
1
American Rescue Plan Act of 2021 (15 U.S.C. 9009c) is 
2
amended by adding at the end the following: 
3
‘‘(d) INSUFFICIENT FUNDING.— 
4
‘‘(1) IN GENERAL.—If the Administrator deter-
5
mines that the amounts made available to carry out 
6
this section are insufficient to make grants in the 
7
amount provided in subsection (c)(4) to each eligible 
8
entity that has submitted an application in accord-
9
ance with the program guidelines in effect on the 
10
day before the date of enactment of this subsection, 
11
but has not received an award as of such date, the 
12
Administrator shall make grants with the available 
13
amounts to each such eligible applicant— 
14
‘‘(A) such that the amount of the grant 
15
that each such eligible entity would have other-
16
wise received under this section is reduced by 
17
an equal percentage; 
18
‘‘(B) by establishing a maximum amount 
19
for a grant made under this subsection to en-
20
sure that smaller eligible entities still receive 
21
grants in the amounts provided under sub-
22
section (c)(4); or 
23
‘‘(C) by providing full awards in the 
24
amounts provided under subsection (c)(4) below 
25
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a certain threshold (as the Administrator may 
1
establish) and reducing grants above that 
2
threshold by an equal percentage. 
3
‘‘(2) RESERVING
FUNDS.—Nothing in para-
4
graph (1) shall prevent the Administrator from— 
5
‘‘(A) reserving funding for applicants that 
6
may be determined to be eligible for a grant 
7
under this section upon reconsideration; or 
8
‘‘(B) making partial awards to eligible en-
9
tities on a preliminary basis until the amount of 
10
funding required to fund grants to all eligible 
11
applicants is established, upon the completion 
12
of the reconsideration process.’’. 
13
(c) REPORTS; RECONSIDERATION; VERIFICATION OF 
14
BUSINESS TYPE.—Section 5003 of the American Rescue 
15
Plan Act of 2021 (15 U.S.C. 9009c), as amended by sub-
16
section (b), is further amended by adding at the end the 
17
following: 
18
‘‘(e) REPORTS.—The Administrator shall— 
19
‘‘(1) on a biweekly basis until the amounts 
20
made available to carry out this section are fully ex-
21
pended, publish data that shows, for the period be-
22
ginning on the date on which the Administrator 
23
began making grants under this section and ending 
24
on the date on which the information is published— 
25
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‘‘(A) with respect to applications for grants 
1
under this section, the number of those applica-
2
tions— 
3
‘‘(i) that the Administrator has re-
4
ceived; 
5
‘‘(ii) that the Administrator has re-
6
viewed or is in the process of reviewing; 
7
and 
8
‘‘(iii) with respect to which the Ad-
9
ministrator has made a decision; and 
10
‘‘(B) the number and dollar amount of 
11
grants under this section— 
12
‘‘(i) that have been awarded; and 
13
‘‘(ii) that have been disbursed; 
14
‘‘(2) on a weekly basis until the amounts made 
15
available to carry out this section are fully expended, 
16
publish, with respect to the period beginning on the 
17
date of enactment of this subsection and ending on 
18
the date on which the information is published— 
19
‘‘(A) with respect to each eligible entity to 
20
which a grant is made under this section— 
21
‘‘(i) the name of the eligible entity, in-
22
cluding the name or names under which 
23
the eligible entity does business if that 
24
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name is different from the name of the eli-
1
gible entity; and 
2
‘‘(ii) the address of— 
3
‘‘(I) the eligible entity; and 
4
‘‘(II) the physical location or lo-
5
cations for the eligible entity listed on 
6
the application, if different from the 
7
address of the eligible entity; 
8
‘‘(B) the amount of each grant described 
9
in subparagraph (A); and 
10
‘‘(C) the business category listed in sub-
11
section (a)(4)(A) to which the eligible entity be-
12
longs. 
13
‘‘(f) RECONSIDERATION.— 
14
‘‘(1) EXPLANATION FOR DENIAL.—With respect 
15
to an applicant that applies for a grant under this 
16
section and is denied by the Administrator, the Ad-
17
ministrator shall make available to the applicant a 
18
brief explanation identifying the reason why the Ad-
19
ministrator denied the application of the applicant, 
20
which shall include, where applicable, a citation to 
21
the statutory, regulatory, or guidance provision with 
22
which the applicant failed to comply and that was 
23
the basis for the denial. 
24
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‘‘(2) PROCESS.—The Administrator shall estab-
1
lish a reconsideration process through which the ap-
2
plicant may— 
3
‘‘(A) submit to the Administrator addi-
4
tional information the applicant determines to 
5
be relevant to whether the applicant is eligible 
6
for the grant; and 
7
‘‘(B) receive a review of the application 
8
and such additional information submitted 
9
under subparagraph (A). 
10
‘‘(g) VERIFICATION OF BUSINESS TYPE.—If the Ad-
11
ministrator verifies that an applicant for a loan under sec-
12
tion 7(a)(36) of the Small Business Act is not an eligible 
13
business type for a grant under this section using credible 
14
information other than information obtained from the ap-
15
plication of the applicant for such loan during 2020, the 
16
Administrator may reject the application solely on those 
17
grounds.’’. 
18
(d) REQUIREMENT OF CONTINUING OPERATION.— 
19
For any application for a grant under section 5003 of the 
20
American Rescue Plan Act of 2021 (15 U.S.C. 9009c) 
21
that is pending on the date of enactment of this Act or 
22
for which the applicant has received an award notice but 
23
the Administrator has not disbursed amounts under the 
24
grant, the Administrator may not disburse amounts under 
25
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the grant unless the applicant submits a statement to the 
1
Administrator indicating the applicant is still operating, 
2
or intends to reopen within 6 months after the date of 
3
the statement is submitted, the place of business for which 
4
such applicant is seeking such grant. 
5
(e) OVERSIGHT AND AUDITS.—Section 5003 of the 
6
American Rescue Plan Act of 2021 (15 U.S.C. 9009c), 
7
as amended by subsection (c), is further amended by add-
8
ing at the end the following: 
9
‘‘(h) OVERSIGHT AND AUDITS.— 
10
‘‘(1) IN GENERAL.—The Administrator shall in-
11
stitute an oversight and audit plan with respect to 
12
eligible entities receiving grants under this section, 
13
which shall include— 
14
‘‘(A) documentation requirements that are 
15
consistent with the eligibility and other require-
16
ments under this section, including by requiring 
17
an eligible entity that receives a grant under 
18
this section to retain records that demonstrate 
19
compliance with those requirements; and 
20
‘‘(B) reviews of the use of grants made 
21
under this section by eligible entities. 
22
‘‘(2) SUBMISSION OF PLAN.—Not later than 30 
23
days after the date of enactment of this subsection, 
24
the Administrator shall submit to the Committee on 
25
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Small Business and Entrepreneurship of the Senate 
1
and the Committee on Small Business of the House 
2
of Representatives the plan required under para-
3
graph (1), which shall describe— 
4
‘‘(A) the policies and procedures of the Ad-
5
ministrator for conducting oversight and audits 
6
of grants made under this section; and 
7
‘‘(B) the metrics that the Administrator 
8
will use to determine which grants made under 
9
this section will be audited under that plan. 
10
‘‘(3) REPORTS.—Not later than 60 days after 
11
the date of enactment of this subsection, and once 
12
every 30 days thereafter until the date that is 180 
13
days after the date on which all amounts made avail-
14
able to carry out this section have been fully ex-
15
pended, and upon request thereafter, the Adminis-
16
trator shall submit to the Committee on Small Busi-
17
ness and Entrepreneurship of the Senate and the 
18
Committee on Small Business of the House of Rep-
19
resentatives a report on the oversight and audit ac-
20
tivities of the Administrator under this subsection, 
21
which shall include— 
22
‘‘(A) the total number of grants approved 
23
and disbursed under this section; 
24
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‘‘(B) the total amount of each grant re-
1
ceived by each eligible entity; 
2
‘‘(C) the number of active investigations 
3
and audits of grants made under this section; 
4
‘‘(D) the number of completed reviews and 
5
audits of grants made under this section, in-
6
cluding a description of— 
7
‘‘(i) any findings of fraud or other 
8
material noncompliance with the require-
9
ments of this section; and 
10
‘‘(ii) the total amount recouped from 
11
ineligible recipients; and 
12
‘‘(E) a description of any substantial 
13
changes made to the plan required under para-
14
graph (1). 
15
‘‘(4) RETROACTIVE
APPLICATION.—This sub-
16
section shall apply to grants and decisions made 
17
under this section before, on, or after the date of en-
18
actment of this subsection.’’. 
19
SEC. 3. HARD HIT INDUSTRIES AWARD PROGRAM. 
20
(a) DEFINITIONS.—In this section: 
21
(1) ADMINISTRATOR.—The term ‘‘Adminis-
22
trator’’ means the Administrator of the Small Busi-
23
ness Administration. 
24
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(2) AFFILIATED BUSINESS.—The term ‘‘affili-
1
ated business’’ means a business in which an eligible 
2
entity— 
3
(A) has an equity or right to receive not 
4
less than 50 percent of the profit distributions 
5
of such business; or 
6
(B) has, on or before March 13, 2020, con-
7
tractual authority to control the business. 
8
(3) AWARD.—The term ‘‘award’’ means a fi-
9
nancial assistance payment that an eligible applicant 
10
receives directly from the Small Business Adminis-
11
tration. 
12
(4) COVERED PERIOD.—The term ‘‘covered pe-
13
riod’’ means the period beginning on February 15, 
14
2020, and ending on the later of— 
15
(A) March 31, 2023; or 
16
(B) a date to be determined by the Admin-
17
istrator that is not later than 2 years after the 
18
date of enactment of this section. 
19
(5) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
20
ty’’— 
21
(A) means a small business concern that— 
22
(i) employs not more than 200 em-
23
ployees; and 
24
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(ii) suffered a pandemic-related rev-
1
enue loss of 40 percent or greater; and 
2
(B) does not include a small business con-
3
cern that— 
4
(i) is a State or local government-op-
5
erated business; 
6
(ii) has received a grant under— 
7
(I) section 324 of the Economic 
8
Aid to Hard Hit Small Businesses, 
9
Nonprofits, and Venues Act (15 
10
U.S.C. 9009a); or 
11
(II) section 5003 of the Amer-
12
ican Rescue Plan Act of 2021 (Public 
13
Law 117–2); 
14
(iii) is a publicly-traded company; 
15
(iv) is an entity that is owned or oper-
16
ated by a private equity fund; or 
17
(v) has a wage violation at the time of 
18
application. 
19
(6) ELIGIBLE SELF-EMPLOYED INDIVIDUAL.— 
20
The term ‘‘eligible self-employed individual’’ has the 
21
meaning given in section 7002(b) of the Families 
22
First Coronavirus Response Act (26 U.S.C. 1401 
23
note). 
24
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(7) EXCHANGE; ISSUER; SECURITY.—The terms 
1
‘‘exchange’’, ‘‘issuer’’, and ‘‘security’’ have the 
2
meanings given those terms, respectively, in section 
3
3(a) of the Securities Exchange Act of 1934 (15 
4
U.S.C. 78c(a)). 
5
(8) PANDEMIC-RELATED REVENUE LOSS.— 
6
(A) IN GENERAL.—The term ‘‘pandemic- 
7
related revenue loss’’ means, subject to sub-
8
paragraph (B) and with respect to an eligible 
9
entity— 
10
(i) except as provided in clauses (ii) 
11
and (iii), the average annual gross receipts 
12
during 2020 and 2021, as established 
13
using such verification documentation as 
14
the Administrator may require, of the eligi-
15
ble entity subtracted from the gross re-
16
ceipts of the eligible entity in 2019, if such 
17
sum is greater than zero; 
18
(ii) if the eligible entity was not in op-
19
eration for the entirety of 2019— 
20
(I) the difference between— 
21
(aa) the product obtained by 
22
multiplying the average monthly 
23
gross receipts of the eligible enti-
24
ty in 2019 by 12; and 
25
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(bb) the product obtained by 
1
multiplying the average monthly 
2
gross receipts of the eligible enti-
3
ty in 2020 and 2021 by 12; or 
4
(II) an amount based on a for-
5
mula determined by the Adminis-
6
trator; or 
7
(iii) if the eligible entity began oper-
8
ations during the period beginning on Jan-
9
uary 1, 2020, and ending on the day be-
10
fore the date of enactment of this section, 
11
an amount based on a formula determined 
12
by the Administrator. 
13
(B) REDUCTION.—For purposes of this 
14
paragraph, the pandemic-related revenue losses 
15
for an eligible entity calculated under subpara-
16
graph (A) shall be reduced by the sum of— 
17
(i) any amount received from a cov-
18
ered loan made under paragraph (36) or 
19
(37) of section 7(a) of the Small Business 
20
Act (15 U.S.C. 636(a)) in 2020 or 2021; 
21
(ii) any amount received as a grant 
22
under section 1110 of the Coronavirus Aid, 
23
Relief, and Economic Security Act (15 
24
U.S.C. 9009); and 
25
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(iii) any amount received as a grant 
1
under section 331 of the Economic Aid to 
2
Hard-Hit Small Businesses, Nonprofits, 
3
and Venues Act (15 U.S.C. 9009b). 
4
(C) PERCENTAGE
DETERMINATION.—For 
5
the purposes of determining the percentage of 
6
pandemic-related revenue loss under this sub-
7
section, the percentage shall be equal to— 
8
(i) in the case of an eligible entity for 
9
which subparagraph (A)(i) applies, the 
10
product obtained by multiplying— 
11
(I) the quotient obtained by di-
12
viding the pandemic-related revenue 
13
losses for such eligible entity by the 
14
gross receipts of the eligible entity in 
15
2019; and 
16
(II) 100; 
17
(ii) in the case of an eligible entity for 
18
which subparagraph (A)(ii)(I) applies, the 
19
product obtained by multiplying— 
20
(I) the quotient obtained by di-
21
viding the pandemic-related revenue 
22
losses for such eligible entity by the 
23
product obtained by multiplying the 
24
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HR 3807 PCS
average monthly gross receipts of the 
1
eligible entity in 2019 by 12; and 
2
(II) 100; and 
3
(iii) in the case of an eligible entity 
4
for which clauses (ii)(II) or (iii) applies, an 
5
amount based on a formula determined by 
6
the Administrator. 
7
(9) PAYROLL COSTS.—The term ‘‘payroll costs’’ 
8
has the meaning given the term in section 
9
7(a)(36)(A) of the Small Business Act (15 U.S.C. 
10
636(a)(36)(A)), except that such term shall not in-
11
clude— 
12
(A) qualified wages, as defined in section 
13
2301(c) of the CARES Act (26 U.S.C. 3111 
14
note), taken into account in determining the 
15
credit allowed under such section 2301; or 
16
(B) premiums taken into account in deter-
17
mining the credit allowed under section 6432 of 
18
the Internal Revenue Code of 1986. 
19
(10) PRIVATE EQUITY FUND.—The term ‘‘pri-
20
vate equity fund’’ has the meaning given the term 
21
in section 225.173(a) of title 12, Code of Federal 
22
Regulations, or any successor regulation. 
23
(11) PUBLICLY-TRADED COMPANY.—The term 
24
‘‘publicly-traded company’’ means an entity that is 
25
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HR 3807 PCS
majority owned or controlled by an entity that is an 
1
issuer, the securities of which are listed on a na-
2
tional securities exchange under section 6 of the Se-
3
curities Exchange Act of 1934 (15 U.S.C. 78f). 
4
(12) SMALL
BUSINESS
CONCERN.—The term 
5
‘‘small business concern’’ has the meaning given 
6
under section 3 of the Small Business Act (15 
7
U.S.C. 632) and includes— 
8
(A) individuals who operate under a sole 
9
proprietorship, as an independent contractor, or 
10
as an eligible self-employed individual; and 
11
(B) small business concerns described in 
12
subparagraphs (B), (C), and (D) of section 
13
31(b)(2) of the Small Business Act (15 U.S.C. 
14
657a(b)(2)). 
15
(13) SMALL BUSINESS ACT DEFINITIONS.—The 
16
terms ‘‘covered mortgage obligation’’, ‘‘covered oper-
17
ations expenditure’’, ‘‘covered rent obligation’’, ‘‘cov-
18
ered supplier cost’’, ‘‘covered utility payment’’, and 
19
‘‘covered worker protection expenditure’’ have the 
20
meanings given, respectively, in section 7A of the 
21
Small Business Act (15 U.S.C. 636m). 
22
(b) AWARDS TO ELIGIBLE ENTITIES.— 
23
(1) IN GENERAL.—From amounts made avail-
24
able under this Act, the Administrator shall estab-
25
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lish a program to be known as the ‘‘Hard Hit Indus-
1
tries Award Program’’, under which the Adminis-
2
trator shall make awards to eligible entities that 
3
submit an application under paragraph (2). 
4
(2) APPLICATION.— 
5
(A) CERTIFICATION.—An eligible entity 
6
shall submit to the Administrator an applica-
7
tion for an award under this subsection. In 
8
such application, the eligible entity shall make 
9
a good faith certification that— 
10
(i) the uncertainty of current eco-
11
nomic conditions makes necessary the 
12
award request to support the ongoing oper-
13
ations of the eligible entity; and 
14
(ii) the eligible entity has no pending 
15
application for and has not received a 
16
grant under— 
17
(I) section 324 of the Economic 
18
Aid to Hard-Hit Small Businesses, 
19
Nonprofits, and Venues Act (15 
20
U.S.C. 9009a); or 
21
(II) section 5003 of the Amer-
22
ican Rescue Plan Act of 2021 (15 
23
U.S.C. 9009c). 
24
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(B) VERIFICATION.—The Administrator 
1
shall use tax records or other reliable sources, 
2
such as certified accounting statements, with 
3
respect to an applicant for an award under this 
4
section to determine— 
5
(i) the eligibility of the applicant for 
6
that award; and 
7
(ii) the amount of that award to the 
8
applicant. 
9
(C) ACCEPTANCE OF APPLICATIONS.—Not 
10
later than 120 days after the date of the enact-
11
ment of this Act, the Administrator shall begin 
12
accepting applications for an award under this 
13
subsection. 
14
(D) PRIORITY.— 
15
(i) IN GENERAL.—The Administrator 
16
shall prioritize eligible entities that have 
17
experienced significant pandemic-related 
18
revenue loss to receive an award under this 
19
section as follows: 
20
(I) First priority to eligible enti-
21
ties that experienced a pandemic-re-
22
lated revenue loss of at least 80 per-
23
cent. 
24
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HR 3807 PCS
(II) Second priority to eligible 
1
entities that experienced a pandemic- 
2
related revenue loss of at least 60 per-
3
cent. 
4
(ii) SMALLER ENTITIES.—Within each 
5
category of eligible entities described in 
6
subclauses (I) through (III) of clause (i), 
7
the Administrator may prioritize awards to 
8
eligible entities with 50 employees or 
9
fewer. 
10
(iii) ADDITIONAL
PRIORITY.—Within 
11
each category of eligible entities described 
12
in subclauses (I) through (III) of clause 
13
(i), 
the 
Administrator 
may 
prioritize 
14
awards to eligible entities that did not re-
15
ceive a covered loan made under paragraph 
16
(36) or (37) of section 7(a) of the Small 
17
Business Act (15 U.S.C. 636(a)) in 2020 
18
or 2021. 
19
(3) AWARD AMOUNT.— 
20
(A) AGGREGATE MAXIMUM AMOUNT.—The 
21
aggregate maximum amount of awards made to 
22
an eligible entity and any affiliated businesses 
23
of the eligible entity under this subsection may 
24
not exceed $1,000,000. 
25
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21 
HR 3807 PCS
(B) 
DETERMINATION
OF
AWARD 
1
AMOUNT.— 
2
(i) IN GENERAL.—Except as provided 
3
in this paragraph, the amount of an award 
4
made to an eligible entity under this sub-
5
section shall be equal to the pandemic-re-
6
lated revenue loss of the eligible entity. 
7
(ii) RETURN
TO
TREASURY.—Any 
8
amount of an award made under this sub-
9
section to an eligible entity described in 
10
clause (ii) or (iii) of subsection (a)(8)(A) 
11
that is greater than the average annual 
12
gross receipts of the eligible entity in 2020 
13
and 2021 shall be returned to the Treas-
14
ury. 
15
(C) INSUFFICIENT
FUNDING.—After se-
16
lecting award recipients in accordance with 
17
paragraph (2)(D) and before disbursing any 
18
awards under this section, if the Administrator 
19
determines that the amounts made available 
20
under this Act for making awards under this 
21
section are insufficient to make awards to each 
22
eligible entity that submits an application under 
23
paragraph (2) in the amount described under 
24
subparagraphs (A) and (B), the Administrator 
25
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22 
HR 3807 PCS
may make awards with the available amounts 
1
such that the amount of the award that each el-
2
igible entity would have otherwise received 
3
under those subparagraphs and in accordance 
4
with paragraph (2)(D) is reduced by a percent-
5
age, except that the Administrator may estab-
6
lish an aggregate maximum amount for awards 
7
made under this subparagraph and in accord-
8
ance with paragraph (2)(D) to ensure that 
9
smaller eligible entities receive awards in the 
10
amounts provided under those subparagraphs. 
11
(4) USE OF FUNDS.—During the covered pe-
12
riod, an eligible entity that receives an award under 
13
this subsection may use the award for the following 
14
expenses incurred as a direct result of, or during, 
15
the COVID–19 pandemic: 
16
(A) Payroll costs. 
17
(B) Payments to independent contractors, 
18
as reported on Form 1099–MISC, except that 
19
each such payment may not exceed $100,000. 
20
(C) Scheduled payments of interest or 
21
principal on any covered mortgage obligation 
22
(which may not include any prepayment of 
23
principal on a covered mortgage obligation). 
24
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23 
HR 3807 PCS
(D) Payments on any covered rent obliga-
1
tion and common area maintenance charges 
2
under a lease agreement. 
3
(E) Covered utility payments. 
4
(F) Maintenance expenses. 
5
(G) Covered worker protection expendi-
6
tures. 
7
(H) Supplies, including protective equip-
8
ment and cleaning materials. 
9
(I) Expenses that were within the scope of 
10
the normal business practice of the eligible enti-
11
ty before the covered period. 
12
(J) Covered supplier costs. 
13
(K) Covered operational expenses. 
14
(L) Paid sick leave. 
15
(M) Capital expenditures (or expenses re-
16
quired under any Federal, State, or local law) 
17
relating to implementing social distancing meas-
18
ures. 
19
(N) Any other essential expenses of the eli-
20
gible entity, as determined by the Adminis-
21
trator. 
22
(5) RETURNING FUNDS.—If an eligible entity 
23
that receives an award under this section fails to use 
24
all of the award on or before the last day of the cov-
25
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24 
HR 3807 PCS
ered period or permanently ceases operations on or 
1
before the last day of the covered period, the eligible 
2
entity shall return to the Administrator any funds 
3
that the eligible entity did not use for the allowable 
4
expenses under paragraph (4). 
5
(c) DATA TRANSPARENCY
AND CUSTOMER SERV-
6
ICE.—The Administrator shall— 
7
(1) in carrying out this section, maintain reg-
8
ular communication with applicants and representa-
9
tives of such applicants, including by— 
10
(A) hosting regularly scheduled informa-
11
tion sessions with those persons; and 
12
(B) providing opportunities to those per-
13
sons to submit and receive answers to questions 
14
regarding awards made under this section; 
15
(2) on a weekly basis until the amounts made 
16
available under this section are fully expended, pub-
17
lish data that shows, for the period beginning on the 
18
date of enactment of this Act and ending on the 
19
date on which the information is published— 
20
(A) with respect to applications for awards 
21
under this section, the number of those applica-
22
tions— 
23
(i) that the Administrator has re-
24
ceived; 
25
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25 
HR 3807 PCS
(ii) that the Administrator has re-
1
viewed or is in the process of reviewing; 
2
and 
3
(iii) with respect to which the Admin-
4
istrator has made a decision; and 
5
(B) the number and dollar amount of pay-
6
ments awarded and disbursed under this sec-
7
tion; 
8
(3) on a weekly basis until the amounts made 
9
available to carry out this section are fully expended, 
10
publish, for the period beginning on the date of en-
11
actment of this Act and ending on the date on which 
12
the information is published— 
13
(A) the name and location of each eligible 
14
entity to which an award has been made under 
15
this section; and 
16
(B) the amount of such award; 
17
(4) with respect to an applicant that applies for 
18
an award under this section and is denied by the 
19
Administrator— 
20
(A) make available to the applicant a brief 
21
explanation regarding the denial which shall in-
22
clude, where applicable, a citation to the stat-
23
ute, regulation, or guidance with which the ap-
24
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26 
HR 3807 PCS
plicant failed to comply and that was the basis 
1
for the denial; and 
2
(B) establish a reconsideration process 
3
through which the applicant may— 
4
(i) submit to the Administrator addi-
5
tional information the applicant determines 
6
to be relevant to whether the applicant is 
7
eligible for the grant; and 
8
(ii) receive a review of the application 
9
and such additional information submitted 
10
under clause (i). 
11
(d) TAX TREATMENT OF AWARDS.— 
12
(1) IN GENERAL.—For the purposes of the In-
13
ternal Revenue Code of 1986— 
14
(A) no award made under this section shall 
15
be included in the gross income of the eligible 
16
entity that receives an award; 
17
(B) no deduction shall be denied, no tax 
18
attribute shall be reduced, and no basis increase 
19
shall be denied, by reason of the exclusion from 
20
gross income provided by subparagraph (A); 
21
and 
22
(C) in the case of a partnership or S cor-
23
poration that receives an award under this sec-
24
tion— 
25
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27 
HR 3807 PCS
(i) any amount excluded from income 
1
by reason of subparagraph (A) shall be 
2
treated as tax exempt for purposes of sec-
3
tions 705 and 1366 of such Code; and 
4
(ii) the Secretary of the Treasury (or 
5
the Secretary’s delegate) shall prescribe 
6
rules for determining a partner’s distribu-
7
tive share of any amount described in 
8
clause (i) for purposes of section 705 of 
9
such Code. 
10
(2) APPLICABILITY.—Paragraph (1) shall apply 
11
to taxable years ending after the date of enactment 
12
of this Act. 
13
(e) SYSTEM FOR AWARD MANAGEMENT.—The Ad-
14
ministrator may not require any eligible entity that applies 
15
for an award under this section to use the System for 
16
Award Management (or any successor system) with re-
17
spect to that award. 
18
(f) APPLICATION PROCESSING.—The Director of the 
19
Office of Management and Budget may, on an emergency 
20
basis and in order to expedite the processing and approval 
21
of applications for awards under this section, waive the 
22
requirements of part 200 of title 2, Code of Federal Regu-
23
lations (or any successor regulations) with respect to an 
24
award made under this section, if— 
25
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28 
HR 3807 PCS
(1) the Director finds that such a waiver will 
1
prevent eligible entities from failing or suffering 
2
undue hardship; and 
3
(2) each eligible entity that receives an award 
4
under this section is still required to submit to the 
5
Administrator ongoing reports regarding the use by 
6
the eligible entity of the award amounts. 
7
(g) OVERSIGHT AND AUDITS.— 
8
(1) IN GENERAL.—In cooperation with the Di-
9
rector of the Office of Management and Budget, the 
10
Administrator shall establish an oversight and audit 
11
plan with respect to eligible entities receiving awards 
12
under this section, which shall include— 
13
(A) documentation requirements that are 
14
consistent with the eligibility and other require-
15
ments under this section, including a require-
16
ment that an eligible entity that receives an 
17
award under this section retains records that 
18
demonstrate compliance with the requirements 
19
of this section; and 
20
(B) reviews of the use, by eligible entities, 
21
of awards made under this section to ensure 
22
compliance with the requirements of this sec-
23
tion, which shall include— 
24
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29 
HR 3807 PCS
(i) a review and audit by the Adminis-
1
trator of awards made under this section; 
2
and 
3
(ii) in the case of fraud or other mate-
4
rial noncompliance with respect to an 
5
award made under this section— 
6
(I) a requirement that the appli-
7
cable eligible entity repay to the Ad-
8
ministrator 
the 
amount 
of 
the 
9
misspent funds; or 
10
(II) legal action by the Adminis-
11
trator to collect the misspent funds. 
12
(2) SUBMISSION OF PLAN.—Not later than 30 
13
days after the date of the enactment of this Act, the 
14
Administrator shall submit to the Committee on 
15
Small Business and Entrepreneurship of the Senate 
16
and the Committee on Small Business of the House 
17
of Representatives the plan required under para-
18
graph (1), which shall describe— 
19
(A) the policies and procedures of the Ad-
20
ministrator for conducting oversight and audits 
21
of awards made under this section; and 
22
(B) the metrics that the Administrator will 
23
use to determine which awards made under this 
24
section will be audited under that plan. 
25
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30 
HR 3807 PCS
(3) REPORTS.—Not later than 60 days after 
1
the date of the enactment of this Act, once every 30 
2
days thereafter until the date that is 180 days after 
3
the date on which all amounts made available to 
4
carry out this section have been fully expended, and 
5
upon request thereafter, the Administrator shall sub-
6
mit to the Committee on Small Business and Entre-
7
preneurship of the Senate and the Committee on 
8
Small Business of the House of Representatives a 
9
report on the oversight and audit activities of the 
10
Administrator under this subsection, which shall in-
11
clude— 
12
(A) the total number of awards approved 
13
and disbursed under this section; 
14
(B) the total amount of each award re-
15
ceived by each eligible entity; 
16
(C) the number of active investigations and 
17
audits of awards made under this section; 
18
(D) the number of completed reviews and 
19
audits of awards made under this section, in-
20
cluding a description of any findings of fraud or 
21
other material noncompliance with the require-
22
ments of this section; and 
23
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31 
HR 3807 PCS
(E) a description of any substantial 
1
changes made to the plan required under para-
2
graph (1). 
3
(h) RULES.—Not later than 90 days after the date 
4
of the enactment of this Act, the Administrator shall issue 
5
rules to carry out this section, without regard to the notice 
6
requirements under section 553(b) of title 5, United 
7
States Code. 
8
(i) AUTHORIZATION OF APPROPRIATIONS.—In addi-
9
tion to amounts otherwise available, there is appropriated 
10
for fiscal year 2022, out of any money in the Treasury 
11
not otherwise appropriated, $13,000,000,000, for the 
12
Hard Hit Industries Award Program established under 
13
this section, to remain available until expended, of which 
14
not more than $380,000,000 shall be for administrative 
15
expenses to carry out this section, of which— 
16
(1) $2,500,000 shall be for the Inspector Gen-
17
eral of the Small Business Administration to prevent 
18
waste, fraud, and abuse with respect to funding 
19
made available for the Hard Hit Industries Award 
20
Program; 
21
(2) $2,500,000 shall be for the Department of 
22
Justice for investigative and prosecutorial activities 
23
related to fraud and abuse, with respect to funding 
24
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32 
HR 3807 PCS
made available for the Hard Hit Industries Award 
1
Program; and 
2
(3) $2,500,000 shall be for shall be for the 
3
Pandemic Response Accountability Committee with 
4
respect to funding made available for the Hard Hit 
5
Industries Award Program. 
6
SEC. 4. FUNDING FOR THE RESTAURANT REVITALIZATION 
7
FUND 
AND 
THE 
HARD 
HIT 
INDUSTRIES 
8
AWARD PROGRAM. 
9
(a) IN GENERAL.—Any unobligated covered funds 
10
are hereby transferred to the Administrator of the Small 
11
Business Administration for purposes of carrying out sec-
12
tion 5003 of the American Rescue Plan Act of 2021 (15 
13
U.S.C. 9009c) and the Hard Hit Industries Award Pro-
14
gram established under section 3 of this Act. 
15
(b) COVERED FUNDS DEFINED.—In this section, the 
16
term ‘‘covered funds’’— 
17
(1) means any and all funds recovered, seized, 
18
reclaimed, or otherwise returned to the Federal Gov-
19
ernment received pursuant to— 
20
(A) paragraph (36) or (37) of section 7(a) 
21
of the Small Business Act (15 U.S.C. 636(a)); 
22
(B) section 7(b)(2) of the Small Business 
23
Act (15 U.S.C. 636(b)), with respect to a loan 
24
made under such section in response to 
25
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33 
HR 3807 PCS
COVID–19 during the covered period (as de-
1
fined in section 1110(a) of the CARES Act (15 
2
U.S.C. 9009(a))); 
3
(C) section 1110(e) of the CARES Act (15 
4
U.S.C. 9009(e)); 
5
(D) section 331 of the Economic Aid to 
6
Hard-Hit Small Businesses, Nonprofits, and 
7
Venues Act (15 U.S.C. 9009b); 
8
(E) section 324 of the Economic Aid to 
9
Hard-Hit Small Businesses, Nonprofits, and 
10
Venues Act (15 U.S.C. 9009a); 
11
(F) section 5003 of the American Rescue 
12
Plan Act of 2021 (15 U.S.C. 9009c); 
13
(G) section 3 of this Act; 
14
(2) includes any funds that as of December 31, 
15
2022, are unexpended under section 5003 of the 
16
American Rescue Plan Act of 2021 (15 U.S.C. 
17
9009c); and 
18
(3) does not include funds paid by person to the 
19
Federal Government for the purposes of tax obliga-
20
tions, servicing of loans, or standard payment of 
21
fees. 
22
SEC. 5. GRANTS FOR SHUTTERED VENUE OPERATORS. 
23
Section 324(d) of the Economic Aid to Hard-Hit 
24
Small Businesses, Nonprofits, and Venues Act (15 U.S.C. 
25
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34 
HR 3807 PCS
9009a(d)) is amended by striking paragraph (1) and in-
1
serting the following: 
2
‘‘(1) TIMING.— 
3
‘‘(A) EXPENSES INCURRED.—Amounts re-
4
ceived under a grant under this section may be 
5
used for costs incurred during the period begin-
6
ning on March 1, 2020, and ending on March 
7
11, 2023 (or a later date, as determined by the 
8
Administrator). 
9
‘‘(B) EXPENDITURE.—An eligible person 
10
or entity shall return to the Administrator any 
11
amounts received under a grant under this sec-
12
tion that are not expended on or before April 
13
15, 2023 (or a later date, as determined by the 
14
Administrator), with respect to costs incurred 
15
during the period described in subparagraph 
16
(A).’’. 
17
Passed the House of Representatives April 7, 2022. 
Attest: 
CHERYL L. JOHNSON, 
Clerk. 
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Calendar No. 387 
117TH CONGRESS 
2D SESSION 
H. R. 3807 
AN ACT 
To amend the American Rescue Plan Act of 2021 
to increase appropriations to the Restaurant Re-
vitalization Fund, and for other purposes. 
MAY 25, 2022 
Read the second time and placed on the calendar 
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