15 U.S.C. 9009 (U.S. Code, current edition)
Summary
The U.S. Code text of 15 U.S.C. § 9009, Emergency EIDL grants, in Title 15—Commerce and Trade, with notes. It defines the covered period as January 31, 2020 through December 31, 2021, and eligible entities as including businesses, cooperatives, ESOPs and tribal small business concerns with not more than 500 employees, sole proprietorships and independent contractors. For loans under section 636(b)(2) in response to COVID–19, the Administrator shall waive personal guarantee rules on advances and loans of not more than $200,000 and the requirement that an applicant be unable to obtain credit elsewhere. An advance shall be not more than $10,000, provided within 21 days after the request once the Administrator verifies eligibility.
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“15 U.S.C. 9009 (U.S. Code, current edition).”
Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/15-u-s-c-9009-u-s-code-current-edition-aa1baf1bc3/
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Page 2483 TITLE 15—COMMERCE AND TRADE § 9009
and several sections in Title 11, Bankruptcy. For com- ‘‘(c) SUBSIDY FOR CERTAIN LOAN PAYMENTS.—For pur-
plete classification of title I to the Code, see Tables. poses of the Internal Revenue Code of 1986—
The Small Business Act, referred to in subsec. (i), is ‘‘(1) any payment described in section 1112(c) of the
Pub. L. 85–536, § 2(1 et seq.), July 18, 1958, 72 Stat. 384, CARES Act [15 U.S.C. 9011(c)] shall not be included in
which is classified generally to chapter 14A (§ 631 et the gross income of the person on whose behalf such
seq.) of this title. For complete classification of this payment is made,
Act to the Code, see Short Title note set out under sec- ‘‘(2) no deduction shall be denied, no tax attribute
tion 631 of this title and Tables. shall be reduced, and no basis increase shall be de-
nied, by reason of the exclusion from gross income
AMENDMENTS
provided by paragraph (1), and
2020—Subsec. (d)(2)(D). Pub. L. 116–260 substituted ‘‘(3) in the case of a partnership or S corporation on
‘‘section 7A of the Small Business Act’’ for ‘‘section whose behalf of a payment described in section 1112(c)
9005 of this title’’. of the CARES Act is made—
‘‘(A) any amount excluded from income by reason
Statutory Notes and Related Subsidiaries of paragraph (1) shall be treated as tax exempt in-
come for purposes of sections 705 and 1366 of the In-
EFFECTIVE DATE OF 2020 AMENDMENT
ternal Revenue Code of 1986, and
Amendment by Pub. L. 116–260 effective as if included ‘‘(B) except as provided by the Secretary of the
in Pub. L. 116–136 and applicable to any loan made pur- Treasury (or the Secretary’s delegate), any increase
suant to section 636(a)(36) of this title before, on, or in the adjusted basis of a partner’s interest in a
after Dec. 27, 2020, including forgiveness of such a loan, partnership under section 705 of the Internal Rev-
with provisions relating to exclusion of loans already enue Code of 1986 with respect to any amount de-
forgiven, see section 304(c) of Pub. L. 116–260, set out as scribed in subparagraph (A) shall equal the sum of
a note under section 636 of this title. the partner’s distributive share of deductions re-
sulting from interest and fees described in section
CLARIFICATION OF TAX TREATMENT OF CERTAIN LOAN
1112(c) of the CARES Act and the partner’s share, as
FORGIVENESS AND OTHER BUSINESS FINANCIAL AS-
determined under section 752 of the Internal Rev-
SISTANCE
enue Code of 1986, of principal described in section
Pub. L. 116–260, div. N, title II, § 278, Dec. 27, 2020, 134 1112(c) of the CARES Act.
Stat. 1980, provided that: ‘‘(d) GRANTS FOR SHUTTERED VENUE OPERATORS.—For
‘‘(a) UNITED STATES TREASURY PROGRAM MANAGEMENT purposes of the Internal Revenue Code of 1986—
AUTHORITY.—For purposes of the Internal Revenue ‘‘(1) any grant made under section 324 of the Eco-
Code of 1986 [26 U.S.C. 1 et seq.]— nomic Aid to Hard-Hit Small Businesses, Nonprofits,
‘‘(1) no amount shall be included in the gross in- and Venues Act [15 U.S.C. 9009a] shall not be included
come of a borrower by reason of forgiveness of indebt- in the gross income of the person that receives such
edness described in section 1109(d)(2)(D) of the CARES grant,
Act [15 U.S.C. 9008(d)(2)(D)], ‘‘(2) no deduction shall be denied, no tax attribute
‘‘(2) no deduction shall be denied, no tax attribute shall be reduced, and no basis increase shall be de-
shall be reduced, and no basis increase shall be de- nied, by reason of the exclusion from gross income
nied, by reason of the exclusion from gross income provided by paragraph (1), and
provided by paragraph (1), and ‘‘(3) in the case of a partnership or S corporation
‘‘(3) in the case of a borrower that is a partnership that receives such grant—
or S corporation— ‘‘(A) any amount excluded from income by reason
‘‘(A) any amount excluded from income by reason of paragraph (1) shall be treated as tax exempt in-
of paragraph (1) shall be treated as tax exempt in- come for purposes of sections 705 and 1366 of the In-
come for purposes of sections 705 and 1366 of the In- ternal Revenue Code of 1986, and
ternal Revenue Code of 1986 [26 U.S.C. 705, 1366], and ‘‘(B) the Secretary of the Treasury (or the Sec-
‘‘(B) except as provided by the Secretary of the retary’s delegate) shall prescribe rules for deter-
Treasury (or the Secretary’s delegate), any increase mining a partner’s distributive share of any
in the adjusted basis of a partner’s interest in a amount described in subparagraph (A) for purposes
partnership under section 705 of the Internal Rev- of section 705 of the Internal Revenue Code of 1986.
enue Code of 1986 with respect to any amount de- ‘‘(e) EFFECTIVE DATES.—
scribed in subparagraph (A) shall equal the part- ‘‘(1) IN GENERAL.—Except as otherwise provided in
ner’s distributive share of deductions resulting this subsection, subsections (a), (b), and (c) shall
from costs giving rise to forgiveness described in apply to taxable years ending after the date of the en-
section 1109(d)(2)(D) of the CARES Act. actment of the CARES Act [Pub. L. 116–136, approved
‘‘(b) EMERGENCY EIDL GRANTS AND TARGETED EIDL Mar. 27, 2020].
ADVANCES.—For purposes of the Internal Revenue Code ‘‘(2) GRANTS FOR SHUTTERED VENUE OPERATORS; TAR-
of 1986— GETED EIDL ADVANCES.—Subsection (d), and so much
‘‘(1) any advance described in section 1110(e) of the of subsection (b) as relates to funding under section
CARES Act [15 U.S.C. 9009(e)] or any funding under 331 of the Economic Aid to Hard-Hit Small Busi-
section 331 of the Economic Aid to Hard-Hit Small nesses, Nonprofits, and Venues Act, shall apply to
Businesses, Nonprofits, and Venues Act [15 U.S.C. taxable years ending after the date of the enactment
9009b] shall not be included in the gross income of the of this Act [Dec. 27, 2020].’’
person that receives such advance or funding,
‘‘(2) no deduction shall be denied, no tax attribute
§ 9009. Emergency EIDL grants
shall be reduced, and no basis increase shall be de-
nied, by reason of the exclusion from gross income (a) Definitions
provided by paragraph (1), and
‘‘(3) in the case of a partnership or S corporation In this section—
that receives such advance or funding— (1) the term ‘‘covered period’’ means the pe-
‘‘(A) any amount excluded from income by reason riod beginning on January 31, 2020 and ending
of paragraph (1) shall be treated as tax exempt in- on December 31, 2021; and
come for purposes of sections 705 and 1366 of the In- (2) the term ‘‘eligible entity’’ means—
ternal Revenue Code of 1986, and
(A) a business with not more than 500 em-
‘‘(B) the Secretary of the Treasury (or the Sec-
retary’s delegate) shall prescribe rules for deter- ployees;
mining a partner’s distributive share of any (B) any individual who operates under a
amount described in subparagraph (A) for purposes sole proprietorship, with or without employ-
of section 705 of the Internal Revenue Code of 1986. ees, or as an independent contractor;
§ 9009 TITLE 15—COMMERCE AND TRADE Page 2484
(C) a cooperative with not more than 500 Administrator provide an advance that is,
employees; subject to paragraph (3), in the amount re-
(D) an ESOP (as defined in section 632 of quested by such applicant to such applicant.
this title) with not more than 500 employees; (B) Timing
(E) a tribal small business concern, as de- With respect to each request submitted to
scribed in section 657a(b)(2)(C) of this title, the Administrator under subparagraph (A),
with not more than 500 employees; or the Administrator shall, not later than 21
(F) an agricultural enterprise (as defined days after the date on which the Adminis-
in section 647(b) of this title 1 with not more trator receives the request—
than 500 employees. (i) verify whether the entity is an entity
(b) Eligible entities that is eligible for a loan made under sec-
During the covered period, in addition to tion 636(b)(2) of this title during the cov-
small business concerns, private nonprofit orga- ered period, as described in subsection (b);
nizations, and small agricultural cooperatives, (ii) if the Administrator, under clause
an eligible entity shall be eligible for a loan (i), verifies that the entity submitting the
made under section 636(b)(2) of this title. request is an entity that is eligible, as de-
scribed in that clause, provide the advance
(c) Terms; credit elsewhere requested by the entity; and
With respect to a loan made under section (iii) with respect to an entity that the
636(b)(2) of this title in response to COVID–19 Administrator determines is not entitled
during the covered period, the Administrator to receive an advance under this sub-
shall waive— section, provide the entity with a notifica-
(1) any rules related 2 the personal guarantee tion explaining why the Administrator
on advances and loans of not more than reached that determination.
$200,000 during the covered period for all appli- (2) Verification
cants; Before disbursing amounts under this sub-
(2) the requirement that an applicant needs section, the Administrator shall verify that
to be in business for the 1-year period before the applicant is an eligible entity by accepting
the disaster, except that no waiver may be a self-certification from the applicant under
made for a business that was not in operation penalty of perjury pursuant to section 1746 of
on January 31, 2020; and title 28.
(3) the requirement in the flush matter fol-
(3) Amount
lowing subparagraph (E) of section 636(b)(2) of
this title, as so redesignated by subsection (f) The amount of an advance provided under
of this section,3 that an applicant be unable to this subsection shall be not more than $10,000.
obtain credit elsewhere. (4) Use of funds
(d) Approval and ability to repay for small dollar An advance provided under this subsection
loans may be used to address any allowable purpose
With respect to a loan made under section for a loan made under section 636(b)(2) of this
636(b)(2) of this title in response to COVID–19 title, including—
during the covered period, the Administrator (A) providing paid sick leave to employees
may— unable to work due to the direct effect of the
(1) approve an applicant— COVID–19;
(B) maintaining payroll to retain employ-
(A) based solely on the credit score of the
ees during business disruptions or substan-
applicant; or
tial slowdowns;
(B) by using alternative appropriate meth- (C) meeting increased costs to obtain ma-
ods to determine an applicant’s ability to terials unavailable from the applicant’s
repay; and original source due to interrupted supply
(2) use information from the Department of chains;
the Treasury to confirm that— (D) making rent or mortgage payments;
(A) an applicant is eligible to receive such and
a loan; or (E) repaying obligations that cannot be
(B) the information contained in an appli- met due to revenue losses.
cation for such a loan is accurate. (5) Repayment
(e) Emergency grant An applicant shall not be required to repay
(1) In general any amounts of an advance provided under
(A) Advances this subsection, even if subsequently denied a
loan under section 636(b)(2) of this title.
During the covered period, an entity in-
(6) Repealed. Pub. L. 116–260, div. N, title III,
cluded for eligibility in subsection (b), in-
§ 333(c), Dec. 27, 2020, 134 Stat. 2046
cluding small business concerns, private
nonprofit organizations, and small agricul- (7) Authorization of appropriations
tural cooperatives, that applies for a loan There is authorized to be appropriated to the
under section 636(b)(2) of this title in re- Administration $40,000,000,000 to carry out this
sponse to COVID–19 may request that the subsection.
(8) Termination
1 So in original. Probably should be followed by a closing pa-
renthesis. The authority to carry out grants under this
2 So in original. Probably should be followed by ‘‘to’’. subsection shall terminate on December 31,
3 See Codification note below. 2021.
Page 2485 TITLE 15—COMMERCE AND TRADE § 9009a
(9) Statute of limitations of the Economic Aid to Hard-Hit Small Businesses,
Nonprofits, and Venues Act (title III of division N of
Notwithstanding any other provision of law, Public Law 116–260) [15 U.S.C. 9009b(a)].
any criminal charge or civil enforcement ac- ‘‘(b) APPROPRIATIONS.—In addition to amounts other-
tion alleging that a borrower engaged in fraud wise available, there is appropriated to the Adminis-
with respect to the use of an advance received trator for fiscal year 2021, out of any money in the
under this subsection shall be filed not later Treasury not otherwise appropriated, $15,000,000,000—
than 10 years after the offense was committed. ‘‘(1) to remain available until expended; and
‘‘(2) of which, the Administrator shall use—
(Pub. L. 116–136, div. A, title I, § 1110, Mar. 27, ‘‘(A) $10,000,000,000 to make payments to covered
2020, 134 Stat. 306; Pub. L. 116–139, div. A, § 101(b), entities that have not received the full amounts to
which the covered entities are entitled under sec-
(c), Apr. 24, 2020, 134 Stat. 620, 621; Pub. L.
tion 331 of the Economic Aid to Hard-Hit Small
116–260, div. N, title III, §§ 332, 333(c), Dec. 27, Businesses, Nonprofits, and Venues Act (title III of
2020, 134 Stat. 2045, 2046; Pub. L. 117–165, § 2(b), division N of Public Law 116–260) [15 U.S.C. 9009b];
Aug. 5, 2022, 136 Stat. 1363.) and
‘‘(B) $5,000,000,000 to make payments under sec-
Editorial Notes tion 1110(e) of the CARES Act (15 U.S.C. 9009(e)),
each of which shall be—
CODIFICATION ‘‘(i) made to a covered entity that—
Section is comprised of section 1110 of Pub. L. 116–136. ‘‘(I) has suffered an economic loss of greater
Subsec. (f) of section 1110 of Pub. L. 116–136 amended than 50 percent; and
section 636 of this title. ‘‘(II) employs not more than 10 employees;
‘‘(ii) in an amount that is $5,000; and
AMENDMENTS ‘‘(iii) with respect to the covered entity to
which the payment is made, in addition to any
2022—Subsec. (e)(9). Pub. L. 117–165 added par. (9).
payment made to the covered entity under sec-
2020—Subsec. (a)(1). Pub. L. 116–260, § 332(1), sub-
tion 1110(e) of the CARES Act (15 U.S.C. 9009(e)) or
stituted ‘‘December 31, 2021’’ for ‘‘December 31, 2020’’.
Subsec. (a)(2)(F). Pub. L. 116–139, § 101(c), added sub- section 331 of the Economic Aid to Hard-Hit
par. (F). Small Businesses, Nonprofits, and Venues Act
Subsec. (d)(1), (2). Pub. L. 116–260, § 332(2), added pars. (title III of division N of Public Law 116–260).’’
(1) and (2) and struck out former pars. (1) and (2) which CLARIFICATION OF TAX TREATMENT OF CERTAIN LOAN
read as follows: FORGIVENESS AND OTHER BUSINESS FINANCIAL AS-
‘‘(1) approve an applicant based solely on the credit SISTANCE
score of the applicant and shall not require an appli-
cant to submit a tax return or a tax return transcript Advance described in subsec. (e) of this section not
for such approval; or included in gross income of recipient, see section 278 of
‘‘(2) use alternative appropriate methods to deter- div. N of Pub. L. 116–260, set out as a note under section
mine an applicant’s ability to repay.’’ 9008 of this title.
Subsec. (e)(1). Pub. L. 116–260, § 332(3)(A), designated REPEAL OF EIDL ADVANCE DEDUCTION
existing provisions as subpar. (A), inserted heading,
struck out ‘‘within 3 days after the Administrator re- Pub. L. 116–260, div. N, title III, § 333(a), (e), Dec. 27,
ceives an application from such applicant’’ after ‘‘to 2020, 134 Stat. 2046, 2047, provided that:
‘‘(a) DEFINITIONS.—In this section [amending this sec-
such applicant’’, and added subpar. (B).
tion and enacting provisions set out as notes under this
Subsec. (e)(6). Pub. L. 116–260, § 333(c), struck out par.
section]—
(6). Text read as follows: ‘‘If an applicant that receives
‘‘(1) the term ‘covered entity’ means an entity that
an advance under this subsection transfers into, or is
receives an advance under section 1110(e) of the
approved for, the loan program under section 636(a) of
CARES Act (15 U.S.C. 9009(e)), including an entity
this title, the advance amount shall be reduced from
that received such an advance before the date of en-
the loan forgiveness amount for a loan for payroll costs
actment of this Act [Dec. 27, 2020]; and
made under such section 636(a) of this title.’’ ‘‘(2) the term ‘covered period’ has the meaning
Subsec. (e)(7). Pub. L. 116–260, § 332(3)(B), substituted given the term in section 1110(a)(1) of the CARES Act
‘‘$40,000,000,000’’ for ‘‘$20,000,000,000’’. (15 U.S.C. 9009(a)(1)), as amended by section 332 of this
Pub. L. 116–139, § 101(b), substituted ‘‘$20,000,000,000’’ Act [div. N of Pub. L. 116–260].
for ‘‘$10,000,000,000’’. ‘‘(e) RULEMAKING.—
Subsec. (e)(8). Pub. L. 116–260, § 332(3)(C), substituted ‘‘(1) IN GENERAL.—Not later than 15 days after the
‘‘December 31, 2021’’ for ‘‘December 31, 2020’’. date of enactment of this Act [Dec. 27, 2020], the Ad-
ministrator [of the Small Business Administration]
Statutory Notes and Related Subsidiaries shall issue rules that ensure the equal treatment of
EFFECTIVE DATE OF 2020 AMENDMENT all covered entities with respect to the amendment
made by subsection (c) [amending this section],
Pub. L. 116–260, div. N, title III, § 333(d), Dec. 27, 2020, which shall include consideration of covered entities
134 Stat. 2046, provided that: ‘‘The amendment made by that, before the date of enactment of this Act, com-
subsection (c) [amending this section] shall be effective pleted the loan forgiveness process described in sec-
as if included in the CARES Act (Public Law 116–136; tion 1110(e)(6) of the CARES Act (15 U.S.C. 9009(e)(6)),
134 Stat. 281).’’ as in effect before that date of enactment.
Except as otherwise provided, amendment by Pub. L. ‘‘(2) NOTICE AND COMMENT.— The notice and com-
116–260 effective on Dec. 27, 2020, and applicable to loans ment requirements under section 553 of title 5, United
and grants made on or after Dec. 27, 2020, see section 348 States Code, shall not apply with respect to the rules
of Pub. L. 116–260, set out as a note under section 636 of issued under paragraph (1).’’
this title.
§ 9009a. Grants for shuttered venue operators
TARGETED EIDL ADVANCE
(a) Definitions
Pub. L. 117–2, title V, § 5002, Mar. 11, 2021, 135 Stat. 85,
provided that: In this section:
‘‘(a) DEFINITIONS.—In this section— (1) Eligible person or entity
‘‘(1) the term ‘Administrator’ means the Adminis-
(A) In general
trator of the Small Business Administration; and
‘‘(2) the terms ‘covered entity’ and ‘economic loss’ The term ‘‘eligible person or entity’’
have the meanings given the terms in section 331(a) means a live venue operator or promoter,
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