15 U.S.C. 9009a (U.S. Code, current edition)
Summary
The U.S. Code text of 15 U.S.C. § 9009a, Grants for shuttered venue operators, in Title 15—Commerce and Trade, with a note quoting the targeted EIDL advance provision of Pub. L. 117–2, § 5002, of Mar. 11, 2021. It defines an eligible person or entity as a live venue operator or promoter, theatrical producer, live performing arts organization operator, relevant museum operator, motion picture theatre operator or talent representative meeting listed requirements. These include being fully operational on February 29, 2020 and gross earned revenue in a 2020 quarter showing not less than a 25 percent reduction. A motion picture theatre must have at least 1 auditorium with a motion picture screen and fixed audience seating.
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Cite this document
“15 U.S.C. 9009a (U.S. Code, current edition).”
Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/15-u-s-c-9009a-u-s-code-current-edition-e98ea12fd5/
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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,
§ 9009a TITLE 15—COMMERCE AND TRADE Page 2486
theatrical producer, or live performing arts (ff) A box office manager.
organization operator, a relevant museum (IV) There is a paid ticket or cover
operator, a motion picture theatre operator, charge to attend most performances and
or a talent representative that meets the artists are paid fairly and do not play for
following requirements: free or solely for tips, except for fund-
(i) The live venue operator or promoter,
raisers or similar charitable events.
theatrical producer, or live performing (V) For a venue owned or operated by
arts organization operator, the relevant a nonprofit entity that produces free
museum operator, the motion picture the- events, the events are produced and man-
atre operator, or the talent representa- aged primarily by paid employees, not
tive— by volunteers.
(I) was fully operational as a live
(VI) Performances are marketed
venue operator or promoter, theatrical
through listings in printed or electronic
producer, or live performing arts organi-
publications, on websites, by mass email,
zation operator, a relevant museum op-
or on social media.
erator, a motion picture theatre oper-
ator, or a talent representative on Feb- (iv) A motion picture theatre or motion
ruary 29, 2020; and picture theatres operated by the motion
(II) has gross earned revenue during picture theatre operator have the fol-
the first, second, third, or, only with re- lowing characteristics:
spect to an application submitted on or (I) At least 1 auditorium that includes
after January 1, 2021, fourth quarter in a motion picture screen and fixed audi-
2020 that demonstrates not less than a 25 ence seating.
percent reduction from the gross earned (II) A projection booth or space con-
revenue of the live venue operator or taining not less than 1 motion picture
promoter, theatrical producer, or live projector.
performing arts organization operator, (III) A paid ticket charge to attend ex-
the relevant museum operator, the mo- hibition of motion pictures.
tion picture theatre operator, or the tal- (IV) Motion picture exhibitions are
ent representative during the same quar- marketed through showtime listings in
ter in 2019. printed or electronic publications, on
websites, by mass mail, or on social
(ii) As of the date of the grant under this media.
section—
(I) the live venue operator or pro- (v) The relevant museum or relevant mu-
moter, theatrical producer, or live per- seums for which the relevant museum op-
forming arts organization operator is or erator is seeking a grant under this sec-
intends to resume organizing, pro- tion have the following characteristics:
moting, producing, managing, or hosting (I) Serving as a relevant museum as its
future live events described in paragraph principal business activity.
(3)(A)(i); (II) Indoor exhibition spaces that are a
(II) the motion picture theatre oper- component of the principal business ac-
ator is open or intends to reopen for the tivity and which have been subjected to
primary purpose of public exhibition of pandemic-related occupancy restric-
motion pictures; tions.
(III) the relevant museum operator is (III) At least 1 auditorium, theater, or
open or intends to reopen; or performance or lecture hall with fixed
(IV) the talent representative is rep- audience seating and regular program-
resenting or managing artists and enter- ming.
tainers. (vi)(I) The live venue operator or pro-
(iii) The venues at which the live venue moter, theatrical producer, or live per-
operator or promoter, theatrical producer, forming arts organization operator, the
or live performing arts organization oper- relevant museum operator, the motion pic-
ator promotes, produces, manages, or ture theatre operator, or the talent rep-
hosts events described in paragraph resentative does not have, or is not major-
(3)(A)(i) or the artists and entertainers ity owned or controlled by an entity with,
represented or managed by the talent rep- any of the following characteristics:
resentative perform have the following (aa) Being an issuer, the securities of
characteristics: which are listed on a national securities
(I) A defined performance and audience exchange.
space. (bb) Receiving more than 10 percent of
(II) Mixing equipment, a public address gross revenue from Federal funding dur-
system, and a lighting rig. ing 2019, excluding amounts received by
(III) Engages 1 or more individuals to the live venue operator or promoter, the-
carry out not less than 2 of the following atrical producer, or live performing arts
roles: organization operator, the relevant mu-
(aa) A sound engineer. seum operator, the motion picture the-
(bb) A booker. atre operator, or the talent representa-
(cc) A promoter. tive under the Robert T. Stafford Dis-
(dd) A stage manager. aster Relief and Emergency Assistance
(ee) Security personnel. Act (42 U.S.C. 5121 et seq.).
Page 2487 TITLE 15—COMMERCE AND TRADE § 9009a
(II) The live venue operator or promoter, under subparagraph (A) and that is not de-
theatrical producer, or live performing scribed in subparagraph (B) shall be treated
arts organization operator, the relevant by the Administrator as an independent,
museum operator, the motion picture the- non-affiliated entity for the purposes of this
atre operator, or the talent representative section.
does not have, or is not majority owned or (2) Exchange; issuer; security
controlled by an entity with, more than 2
The terms ‘‘exchange’’, ‘‘issuer’’, and ‘‘secu-
of the following characteristics:
rity’’ have the meanings given those terms in
(aa) Owning or operating venues, rel-
section 78c(a) of this title.
evant museums, motion picture theatres,
or talent agencies or talent management (3) Live venue operator or promoter, theatrical
companies in more than 1 country. producer, or live performing arts organiza-
(bb) Owning or operating venues, rel- tion operator
evant museums, motion picture theatres, The term ‘‘live venue operator or promoter,
or talent agencies or talent management theatrical producer, or live performing arts or-
companies in more than 10 States. ganization operator’’—
(cc) Employing more than 500 employ- (A) means—
ees as of February 29, 2020, determined (i) an individual or entity—
on a full-time equivalent basis in accord- (I) that, as a principal business activ-
ance with subparagraph (C). ity, organizes, promotes, produces, man-
(III) For purposes of applying the charac- ages, or hosts live concerts, comedy
teristics described in subclauses (I) and (II) shows, theatrical productions, or other
to an entity owned by a State or a polit- events by performing artists for which—
ical subdivision of a State, the relevant (aa) a cover charge through ticketing
entity— or front door entrance fee is applied;
(aa) shall be the live venue operator or and
promoter, theatrical producer, or live (bb) performers are paid in an
performing arts organization operator, amount that is based on a percentage
the relevant museum operator, the mo- of sales, a guarantee (in writing or
tion picture theatre operator, or the tal- standard contract), or another mutu-
ent representative; and ally beneficial formal agreement; and
(bb) shall not include entities of the (II) for which not less than 70 percent
State or political subdivision other than of the earned revenue of the individual
the live venue operator or promoter, the- or entity is generated through, to the ex-
atrical producer, or live performing arts tent related to a live event described in
organization operator, the relevant mu- subclause (I), cover charges or ticket
seum operator, the motion picture the- sales, production fees or production re-
atre operator, or the talent representa- imbursements, nonprofit educational ini-
tive. tiatives, or the sale of event beverages,
(B) Exclusion food, or merchandise; or
The term ‘‘eligible person or entity’’ shall (ii) an individual or entity that, as a
not include a live venue operator or pro- principal business activity, makes avail-
moter, theatrical producer, or live per- able for purchase by the public an average
forming arts organization operator, a rel- of not less than 60 days before the date of
evant museum operator, a motion picture the event tickets to events—
theatre operator, or a talent representative (I) described in clause (i)(I); and
that— (II) for which performers are paid in an
(i) presents live performances of a pru- amount that is based on a percentage of
rient sexual nature; or sales, a guarantee (in writing or stand-
(ii) derives, directly or indirectly, more ard contract), or another mutually bene-
than de minimis gross revenue through the ficial formal agreement; and
sale of products or services, or the presen-
(B) includes an individual or entity de-
tation of any depictions or displays, of a
scribed in subparagraph (A) that—
prurient sexual nature.
(i) operates for profit;
(C) Calculation of full-time employees (ii) is a nonprofit organization;
For purposes of determining the number of (iii) is government-owned; or
full-time equivalent employees under sub- (iv) is a corporation, limited liability
paragraph (A)(vi)(II)(cc) of this paragraph company, or partnership or operated as a
and under paragraph (2)(E)— sole proprietorship.
(i) any employee working not fewer than (4) Motion picture theatre operator
30 hours per week shall be considered a
The term ‘‘motion picture theatre operator’’
full-time employee; and
means an individual or entity that—
(ii) any employee working not fewer
(A) as the principal business activity of
than 10 hours and fewer than 30 hours per
the individual or entity, owns or operates at
week shall be counted as one-half of a full-
least 1 place of public accommodation for
time employee.
the purpose of motion picture exhibition for
(D) Multiple business entities a fee; and
Each business entity of an eligible person (B) includes an individual or entity de-
or entity that also meets the requirements scribed in subparagraph (A) that—
§ 9009a TITLE 15—COMMERCE AND TRADE Page 2488
(i) operates for profit; (B) Certification of need
(ii) is a nonprofit organization; An eligible person or entity applying for a
(iii) is government-owned; or grant under this section shall submit a good
(iv) is a corporation, limited liability faith certification that the uncertainty of
company, or partnership or operated as a current economic conditions makes nec-
sole proprietorship. essary the grant to support the ongoing op-
(5) National securities exchange erations of the eligible person or entity.
The term ‘‘national securities exchange’’ (2) Initial grants
means an exchange registered as a national se- (A) In general
curities exchange under section 78f of this
The Administrator may make initial
title.
grants to eligible persons or entities in ac-
(6) Nonprofit cordance with this section.
The term ‘‘nonprofit’’, with respect to an or- (B) Initial priorities for awarding grants
ganization, means that the organization is ex- (i) First priority in awarding grants
empt from taxation under section 501(a) of
title 26. During the initial 14-day period during
which the Administrator awards grants
(7) Relevant museum under this paragraph, the Administrator
The term ‘‘relevant museum’’— shall only award grants to an eligible per-
(A) has the meaning given the term ‘‘mu- son or entity with revenue, during the pe-
seum’’ in section 9172 of title 20; and riod beginning on April 1, 2020 and ending
(B) shall not include any entity that is or- on December 31, 2020, that is not more
ganized as a for-profit entity. than 10 percent of the revenue of the eligi-
(8) Seasonal employer ble person or entity during the period be-
ginning on April 1, 2019 and ending on De-
The term ‘‘seasonal employer’’ has the cember 31, 2019, due to the COVID–19 pan-
meaning given that term in subparagraph (A) demic.
of section 636(a)(36) of this title, as amended
by this Act. (ii) Second priority in awarding grants
(9) State During the 14-day period immediately
following the 14-day period described in
The term ‘‘State’’ means— clause (i), the Administrator shall only
(A) a State; award grants to an eligible person or enti-
(B) the District of Columbia; ty with revenue, during the period begin-
(C) the Commonwealth of Puerto Rico; and ning on April 1, 2020 and ending on Decem-
(D) any other territory or possession of the ber 31, 2020, that is not more than 30 per-
United States. cent of the revenue of the eligible person
(10) Talent representative or entity during the period beginning on
The term ‘‘talent representative’’— April 1, 2019 and ending on December 31,
(A) means an agent or manager that— 2019, due to the COVID–19 pandemic.
(i) as not less than 70 percent of the oper- (iii) Determination of revenue
ations of the agent or manager, is engaged For purposes of clauses (i) and (ii)—
in representing or managing artists and (I) any amounts received by an eligible
entertainers; person or entity under the CARES Act
(ii) books or represents musicians, come- (Public Law 116–136; 134 Stat. 281) or an
dians, actors, or similar performing artists amendment made by the CARES Act
primarily at live events in venues or at shall not be counted as revenue of an eli-
festivals; and gible person or entity;
(iii) represents performers described in (II) the Administrator shall use an ac-
clause (ii) that are paid in an amount that crual method of accounting for deter-
is based on the number of tickets sold, or mining revenue; and
a similar basis; and (III) the Administrator may use alter-
(B) includes an agent or manager described native methods to establish revenue
in subparagraph (A) that— losses for an eligible person or entity
(i) operates for profit; that is a seasonal employer and that
(ii) is a nonprofit organization; would be adversely impacted if January,
(iii) is government-owned; or February, and March are excluded from
(iv) is a corporation, limited liability the calculation of year-over-year reve-
company, or partnership or operated as a nues.
sole proprietorship. (iv) Limit on use of amounts for priority
(b) Authority applicants
(1) In general The Administrator may use not more
than 80 percent of the amounts appro-
(A) Administration priated under section 323(d)(1)(H) of this
The Associate Administrator for the Office Act to carry out this section to make ini-
of Disaster Assistance of the Administration tial grants under this paragraph to eligible
shall coordinate and formulate policies re- persons or entities described in clause (i)
lating to the administration of grants made or (ii) of this subparagraph that apply for
under this section. a grant under this paragraph during the
Page 2489 TITLE 15—COMMERCE AND TRADE § 9009a
initial 28-day period during which the Ad- (c) Amount
ministrator awards grants under this para- (1) Initial grants
graph.
(A) In general
(C) Grants after priority periods
Subject to subparagraphs (B) and (C), a
After the end of the initial 28-day period grant under subsection (b)(2) shall be in the
during which the Administrator awards amount equal to the lesser of—
grants under this paragraph, the Adminis- (i)(I) for an eligible person or entity that
trator may award an initial grant to any eli- was in operation on January 1, 2019, the
gible person or entity. amount equal to 45 percent of the gross
(D) Limits on number of initial grants to af- earned revenue of the eligible person or en-
filiates tity during 2019; or
Not more than 5 business entities of an eli- (II) for an eligible person or entity that
gible person or entity that would be consid- began operations after January 1, 2019, the
ered affiliates under the affiliation rules of amount equal to the product obtained by
the Administration may receive a grant multiplying—
under this paragraph. (aa) the average monthly gross earned
revenue for each full month during
(E) Set-aside for small employers which the eligible person or entity was
(i) In general in operation during 2019; by
Subject to clause (ii), not less than (bb) 6; or
$2,000,000,000 of the total amount of grants (ii) $10,000,000.
made available under this paragraph shall
(B) Application to relevant museum opera-
be awarded to eligible persons or entities
tors
which employ not more than 50 full-time
employees, determined in accordance with A relevant museum operator may not re-
subsection (a)(1)(C). ceive grants under subsection (b)(2) in a
(ii) Time limit total amount that is more than $10,000,000
with respect to all relevant museums oper-
Clause (i) shall not apply on and after ated by the relevant museum operator.
the date that is 60 days after the Adminis-
(C) Reduction for recipients of new PPP
trator begins awarding grants under this
loans
section and, on and after such date,
amounts available for grants under this (i) In general
section may be used for grants under this The otherwise applicable amount of a
section to any eligible person or entity. grant under subsection (b)(2) to an eligible
(3) Supplemental grants person or entity shall be reduced by the
total amount of loans guaranteed under
(A) In general
paragraph (36) or (37) of section 636(a) of
Subject to subparagraph (B), the Adminis- this title that are received on or after De-
trator may make a supplemental grant in cember 27, 2020 by the eligible person or
accordance with this section to an eligible entity.
person or entity that receives a grant under
(ii) Application to governmental entities
paragraph (2) if, as of April 1, 2021, the reve-
nues of the eligible person or entity for the For purposes of applying clause (i) to an
most recent calendar quarter are not more eligible person or entity owned by a State
than 30 percent of the revenues of the eligi- or a political subdivision of a State, the
ble person or entity for the corresponding relevant entity—
calendar quarter during 2019 due to the (I) shall be the eligible person or enti-
COVID–19 pandemic. ty; and
(II) shall not include entities of the
(B) Processing timely initial grant applica-
State or political subdivision other than
tions first
the eligible person or entity.
The Administrator may not award a sup- (2) Supplemental grants
plemental grant under subparagraph (A)
until the Administrator has completed proc- A grant under subsection (b)(3) shall be in
essing (including determining whether to the amount equal to 50 percent of the grant re-
award a grant) each application for an ini- ceived by the eligible person or entity under
tial grant under paragraph (2) that is sub- subsection (b)(2).
mitted by an eligible person or entity on or (3) Overall maximums
before the date that is 60 days after the date The total amount of grants received under
on which the Administrator begins accept- paragraphs (2) and (3) of subsection (b) by an
ing such applications. eligible person or entity shall be not more
(4) Certification than $10,000,000.
An eligible person or entity applying for a (d) Use of funds
grant under this section that is an eligible (1) Timing
business described in the matter preceding (A) Expenses incurred
subclause (I) of section 4003(c)(3)(D)(i) of the
CARES Act (15 U.S.C. 9042(c)(3)(D)(i)), shall (i) In general
make a good-faith certification described in Except as provided in clause (ii),
subclauses (IX) and (X) of such section. amounts received under a grant under this
§ 9009a TITLE 15—COMMERCE AND TRADE Page 2490
section may be used for costs incurred dur- compensation for any individual employee
ing the period beginning on March 1, 2020, of an independent contractor; and
and ending on December 31, 2021. (viii) other ordinary and necessary busi-
(ii) Extension for supplemental grants ness expenses, including—
(I) maintenance expenses;
If an eligible person or entity receives a (II) administrative costs, including
grant under subsection (b)(3), amounts re- fees and licensing costs;
ceived under either grant under this sec- (III) State and local taxes and fees;
tion may be used for costs incurred during (IV) operating leases in effect as of
the period beginning on March 1, 2020, and February 15, 2020;
ending on June 30, 2022. (V) payments required for insurance on
(B) Expenditure any insurance policy; and
(VI) advertising, production transpor-
(i) In general
tation, and capital expenditures related
Except as provided in clause (ii), an eli- to producing a theatrical or live per-
gible person or entity shall return to the forming arts production, concert, exhi-
Administrator any amounts received under bition, or comedy show, except that a
a grant under this section that are not ex- grant under this section may not be used
pended on or before the date that is 1 year primarily for such expenditures.
after the date of disbursement of the (3) Prohibited expenses
grant.
An eligible person or entity may not use
(ii) Extension for supplemental grants amounts received under a grant under this sec-
If an eligible person or entity receives a tion—
grant under subsection (b)(3), the eligible (A) to purchase real estate;
person or entity shall return to the Ad- (B) for payments of interest or principal
ministrator any amounts received under on loans originated after February 15, 2020;
either grant under this section that are (C) to invest or re-lend funds;
not expended on or before the date that is (D) for contributions or expenditures to, or
18 months after the date of disbursement on behalf of, any political party, party com-
to the eligible person or entity of the mittee, or candidate for elective office; or
grant under subsection (b)(2). (E) for any other use as may be prohibited
(2) Allowable expenses by the Administrator.
(e) Increased oversight of shuttered venue oper-
(A) Definitions ator grants
In this paragraph— The Administrator shall increase oversight of
(i) the terms ‘‘covered mortgage obliga- eligible persons and entities receiving grants
tion’’, ‘‘covered rent obligation’’, ‘‘covered under this section, which may include the fol-
utility payment’’, and ‘‘covered worker lowing:
protection expenditure’’ have the mean-
(1) Documentation
ings given those terms in section 636m(a)
of this title, as redesignated, transferred, Additional documentation requirements
and amended by this Act; and that are consistent with the eligibility and
(ii) the term ‘‘payroll costs’’ has the other requirements under this section, includ-
meaning given that term in section ing requiring an eligible person or entity that
636(a)(36)(A) of this title. receives a grant under this section to retain
(B) Expenses records that document compliance with the
requirements for grants under this section—
An eligible person or entity may use (A) with respect to employment records,
amounts received under a grant under this for the 4-year period following receipt of the
section for— grant; and
(i) payroll costs; (B) with respect to other records, for the 3-
(ii) payments on any covered rent obliga- year period following receipt of the grant.
tion; (2) Reviews of use
(iii) any covered utility payment;
(iv) scheduled payments of interest or Reviews of the use of the grant proceeds by
principal on any covered mortgage obliga- an eligible person or entity to ensure compli-
tion (which shall not include any prepay- ance with requirements established under this
ment of principal on a covered mortgage section and by the Administrator, including
obligation); that the Administrator may—
(A) review and audit grants under this sec-
(v) scheduled payments of interest or
tion; and
principal on any indebtedness or debt in-
(B) in the case of fraud or other material
strument (which shall not include any pre-
noncompliance with respect to a grant under
payment of principal) incurred in the ordi-
this section—
nary course of business that is a liability
(i) require repayment of misspent funds;
of the eligible person or entity and was in-
or
curred prior to February 15, 2020; (ii) pursue legal action to collect funds.
(vi) covered worker protection expendi-
tures; (f) Shuttered venue oversight and audit plan
(vii) payments made to independent con- (1) In general
tractors, as reported on Form–1099 MISC, Not later than 45 days after December 27,
not to exceed a total of $100,000 in annual 2020, the Administrator shall submit to the
Page 2491 TITLE 15—COMMERCE AND TRADE § 9009b
Committee on Small Business and Entrepre- (d)(2)(A)(i), probably means section 636m(a) of this
neurship of the Senate and the Committee on title, as redesignated, transferred, and amended by title
Small Business of the House of Representa- III of div. N of Pub. L. 116–260.
tives an audit plan that details— CODIFICATION
(A) the policies and procedures of the Ad-
Section was enacted as part of the Economic Aid to
ministrator for conducting oversight and au- Hard-Hit Small Businesses, Nonprofits, and Venues
dits of grants under this section; and Act, and not as part of the CARES Act which in part
(B) the metrics that the Administrator comprises this chapter.
shall use to determine which grants under
this section will be audited pursuant to sub- AMENDMENTS
section (e). 2021—Subsec. (a)(1)(A)(vi)(III), (IV). Pub. L. 117–2,
(2) Reports § 5005(b)(1), redesignated subcl. (IV) as (III), substituted
‘‘subclauses (I) and (II)’’ for ‘‘subclauses (I), (II), and
Not later than 60 days after December 27, (III)’’, and struck out former subcl. (III) which read as
2020, and each month thereafter until the date follows: ‘‘The live venue operator or promoter, theat-
that is 1 year after the date on which all rical producer, or live performing arts organization op-
amounts made available under section erator, the relevant museum operator, the motion pic-
323(d)(1)(H) of this Act have been expended, the ture theatre operator, or the talent representative has
Administrator shall submit to the Committee not received, on or after December 27, 2020, a loan guar-
anteed under paragraph (36) or (37) of section 636(a) of
on Small Business and Entrepreneurship of the this title, as amended and added by this division.’’
Senate and the Committee on Small Business Subsec. (c)(1)(A). Pub. L. 117–2, § 5005(b)(2)(A), sub-
of the House of Representatives a report on stituted ‘‘Subject to subparagraphs (B) and (C), a
the oversight and audit activities of the Ad- grant’’ for ‘‘A grant’’ in introductory provisions.
ministrator under this subsection, which shall Subsec. (c)(1)(C). Pub. L. 117–2, § 5005(b)(2)(B), added
include— subpar. (C).
(A) the total number of initial grants ap-
proved and disbursed; Statutory Notes and Related Subsidiaries
(B) the total amount of grants received by EFFECTIVE DATE
each eligible person or entity, including any
supplemental grants; Section effective on Dec. 27, 2020, and applicable to
loans and grants made on or after Dec. 27, 2020, see sec-
(C) the number of active investigations tion 348 of Pub. L. 116–260, set out as an Effective Date
and audits of grants under this section; of 2020 Amendment note under section 636 of this title.
(D) the number of completed reviews and
audits of grants under this section, including CLARIFICATION OF TAX TREATMENT OF CERTAIN LOAN
a description of any findings of fraud or FORGIVENESS AND OTHER BUSINESS FINANCIAL AS-
SISTANCE
other material noncompliance.1
(E) any substantial changes made to the Grant made under this section not included in gross
oversight and audit plan submitted under income of recipient, see section 278 of div. N of Pub. L.
paragraph (1). 116–260, set out as a note under section 9008 of this title.
(Pub. L. 116–260, div. N, title III, § 324, Dec. 27, DEFINITIONS
2020, 134 Stat. 2022; Pub. L. 117–2, title V, ‘‘Administration’’ and ‘‘Administrator’’ mean the
§ 5005(b), Mar. 11, 2021, 135 Stat. 92.) Small Business Administration and Administrator of
the Small Business Administration, see section 302 of
Editorial Notes div. N of Pub. L. 116–260, set out as a note under section
9001 of this title.
REFERENCES IN TEXT
The Robert T. Stafford Disaster Relief and Emer- § 9009b. Targeted EIDL advance for small busi-
gency Assistance Act, referred to in subsec. ness continuity, adaptation, and resiliency
(a)(1)(A)(vi)(I)(bb), is Pub. L. 93–288, May 22, 1974, 88
Stat. 143, which is classified principally to chapter 68 (a) Definitions
(§ 5121 et seq.) of Title 42, The Public Health and Wel- In this section:
fare. For complete classification of this Act to the
Code, see Short Title note set out under section 5121 of (1) Agricultural enterprise
Title 42 and Tables. The term ‘‘agricultural enterprise’’ has the
Subparagraph (A) of section 636(a)(36) of this title, as meaning given the term in section 647(b) of
amended by this Act, referred to in subsec. (a)(8), prob- this title.
ably means subpar. (A) of section 636(a)(36) of this title,
as amended by title III of div. N of Pub. L. 116–260. (2) Covered entity
The CARES Act, referred to in subsec. (b)(2)(B)(iii)(I), The term ‘‘covered entity’’—
also known as the Coronavirus Aid, Relief, and Eco- (A) means an eligible entity that—
nomic Security Act, is Pub. L. 116–136, Mar. 27, 2020, 134
Stat. 281, which enacted this chapter and enacted,
(i) applies for a loan under section
amended, and repealed numerous other sections and 636(b)(2) of this title during the covered pe-
notes in the Code. For complete classification of this riod, including before December 27, 2020;
Act to the Code, see Short Title note set out under sec- (ii) is located in a low-income commu-
tion 9001 of this title and Tables. nity;
Section 323(d)(1)(H) of this Act, referred to in subsecs. (iii) has suffered an economic loss of
(b)(2)(B)(iv) and (f)(2), is section 323(d)(1)(H) of title III greater than 30 percent; and
of div. N of Pub. L. 116–260, Dec. 27, 2020, 134 Stat. 2021, (iv) employs not more than 300 employ-
which is not classified to the Code.
Section 636m(a) of this title, as redesignated, trans- ees; and
ferred, and amended by this Act, referred to in subsec. (B) except with respect to an entity in-
cluded under section 123.300(c) of title 13,
1 So in original. The period probably should be ‘‘; and’’. Code of Federal Regulations, or any suc-
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