15 U.S.C. 9009b (U.S. Code, current edition)
Summary
The U.S. Code text of 15 U.S.C. § 9009b, Targeted EIDL advance for small business continuity, adaptation, and resiliency, in Title 15—Commerce and Trade, with notes. A covered entity is an eligible entity that applies for a loan under section 636(b)(2) during the covered period, is located in a low-income community, has suffered an economic loss of greater than 30 percent and employs not more than 300 employees. Economic loss is measured by the decline in gross receipts during an 8-week period between March 2, 2020, and December 31, 2021, against a comparable period. The Administrator shall require any information, including any tax records, needed to verify that an entity is a covered entity.
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“15 U.S.C. 9009b (U.S. Code, current edition).”
Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/15-u-s-c-9009b-u-s-code-current-edition-bf558cc181/
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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-
§ 9009b TITLE 15—COMMERCE AND TRADE Page 2492
cessor regulation, does not include an agri- (ii) if the Administrator, under sub-
cultural enterprise. section (c), verifies that the entity is a
(3) Covered period covered entity, provide to the covered en-
tity a payment in the amount described in
The term ‘‘covered period’’ has the meaning subparagraph (A); and
given the term in section 9009(a)(1) of this (iii) with respect to a covered entity that
title, as amended by section 332 of this Act. the Administrator determines is not enti-
(4) Economic loss tled to a payment under this section, pro-
The term ‘‘economic loss’’ means, with re- vide the covered entity with a notification
spect to a covered entity— explaining why the Administrator reached
(A) the amount by which the gross receipts that determination.
of the covered entity declined during an 8- (C) Rule of construction
week period between March 2, 2020, and De-
cember 31, 2021, relative to a comparable 8- Nothing in this paragraph may be con-
week period immediately preceding March 2, strued to require any entity that received an
2020, or during 2019; or emergency grant under section 9009(e) of this
(B) if the covered entity is a seasonal busi- title before December 27, 2020, to repay any
ness concern, such other amount determined amount of that grant.
appropriate by the Administrator. (c) Verification
(5) Eligible entity In carrying out this section, the Adminis-
The term ‘‘eligible entity’’ means an entity trator shall require any information, including
that, during the covered period, is eligible for any tax records, from an entity submitting a re-
a loan made under section 636(b)(2) of this quest under subsection (b) that the Adminis-
title, as described in section 9009(b) of this trator determines to be necessary to verify that
title. the entity is a covered entity, without regard to
whether the entity has previously submitted
(6) Low-income community
such information to the Administrator.
The term ‘‘low-income community’’ has the
(d) Order of processing
meaning given the term in section 45D(e) of
title 26. The Administrator shall process and approve
(b) Entitlement to full amount requests for payments under subsection (b) in
the order that the Administrator receives the
(1) In general requests, except that the Administrator shall
Subject to paragraph (2), a covered entity, give—
after submitting a request to the Adminis- (1) first priority to covered entities de-
trator that the Administrator verifies under scribed in subsection (b)(2)(A); and
subsection (c), shall receive a total of $10,000 (2) second priority to covered entities that
under section 9009(e) of this title, without re- have not received emergency grants under sec-
gard to whether— tion 9009(e) of this title, as of the date on
(A) the applicable loan for which the cov- which the Administrator receives such a re-
ered entity applies or applied under section quest, because of the unavailability of funding
636(b)(2) of this title is or was approved; to carry out such section 9009(e).
(B) the covered entity accepts or accepted (e) Applicability
the offer of the Administrator with respect
to an approved loan described in subpara- In addition to any other restriction imposed
graph (A); or under this section, any eligibility restriction ap-
(C) the covered entity has previously re- plicable to a loan made under section 636(b)(2) of
ceived a loan under section 636(a)(36) of this this title, including any restriction under sec-
title. tion 123.300 or 123.301 of title 13, Code of Federal
Regulations, or any successor regulation, shall
(2) Effect of previously received amounts
apply with respect to funding provided under
(A) In general this section.
With respect to a covered entity that re- (f) Notification required
ceived an emergency grant under section
9009(e) of this title before December 27, 2020, The Administrator shall provide notice to
the amount of the payment that the covered each of the following entities stating that the
entity shall receive under this subsection entity may be eligible for a payment under this
(after satisfaction of the procedures required section if the entity satisfies the requirements
under subparagraph (B)) shall be the dif- under clauses (ii), (iii), and (iv) of subsection
ference between $10,000 and the amount of (a)(2)(A):
that previously received grant. (1) Each entity that received an emergency
grant under section 9009(e) of this title before
(B) Procedures December 27, 2020.
If the Administrator receives a request (2) Each entity that, before December 27,
under paragraph (1) from a covered entity 2020—
described in subparagraph (A) of this para- (A) applied for a loan under section
graph, the Administrator shall, not later 636(b)(2) of this title; and
than 21 days after the date on which the Ad- (B) did not receive an emergency grant
ministrator receives the request— under section 9009(e) of this title because of
(i) perform the verification required the unavailability of funding to carry out
under subsection (c); such section 9009(e).
Page 2493 TITLE 15—COMMERCE AND TRADE § 9009c
(g) Administration come for purposes of sections 705 and 1366 of the In-
ternal Revenue Code of 1986 [26 U.S.C. 705, 1366], and
In carrying out this section, the Adminis- ‘‘(B) the Secretary of the Treasury (or the Sec-
trator may rely on loan officers and other per- retary’s delegate) shall prescribe rules for deter-
sonnel of the Office of Disaster Assistance of the mining a partner’s distributive share of any
Administration and other resources of the Ad- amount described in subparagraph (A) for purposes
ministration, including contractors of the Ad- of section 705 of the Internal Revenue Code of 1986.’’
ministration. CLARIFICATION OF TAX TREATMENT OF CERTAIN LOAN
(h) Authorization of appropriations FORGIVENESS AND OTHER BUSINESS FINANCIAL AS-
SISTANCE
There are authorized to be appropriated to the
Administrator $20,000,000,000 to carry out this Funding under this section not included in gross in-
come of recipient, see section 278 of div. N of Pub. L.
section—
116–260, set out as a note under section 9008 of this title.
(1) which shall remain available through De-
cember 31, 2021; and DEFINITIONS
(2) of which $20,000,000 is authorized to be ap- ‘‘Administration’’ and ‘‘Administrator’’ mean the
propriated to the Inspector General of the Ad- Small Business Administration and Administrator of
ministration to prevent waste, fraud, and the Small Business Administration, see section 302 of
abuse with respect to funding provided under div. N of Pub. L. 116–260, set out as a note under section
this section. 9001 of this title.
(i) Statute of limitations § 9009c. Support for restaurants
Notwithstanding any other provision of law, (a) Definitions
any criminal charge or civil enforcement action In this section:
alleging that a borrower engaged in fraud with
(1) Administrator
respect to the use of any amount received pursu-
ant to this section shall be filed not later than The term ‘‘Administrator’’ means the Ad-
10 years after the offense was committed. ministrator of the Small Business Administra-
tion.
(Pub. L. 116–260, div. N, title III, § 331, Dec. 27,
(2) Affiliated business
2020, 134 Stat. 2043; Pub. L. 117–165, § 2(c), Aug. 5,
2022, 136 Stat. 1363.) The term ‘‘affiliated business’’ means a busi-
ness in which an eligible entity has an equity
Editorial Notes or right to profit distributions of not less than
50 percent, or in which an eligible entity has
REFERENCES IN TEXT the contractual authority to control the direc-
Section 332 of this Act, referred to in subsec. (a)(3), is tion of the business, provided that such affili-
section 332 of div. N of Pub. L. 116–260. ation shall be determined as of any arrange-
ments or agreements in existence as of March
CODIFICATION
13, 2020.
Section was enacted as part of the Economic Aid to (3) Covered period
Hard-Hit Small Businesses, Nonprofits, and Venues
Act, and not as part of the CARES Act which in part The term ‘‘covered period’’ means the pe-
comprises this chapter. riod—
(A) beginning on February 15, 2020; and
AMENDMENTS
(B) ending on December 31, 2021, or a date
2022—Subsec. (i). Pub. L. 117–165 added subsec. (i). to be determined by the Administrator that
is not later than 2 years after March 11, 2021.
Statutory Notes and Related Subsidiaries (4) Eligible entity
EFFECTIVE DATE The term ‘‘eligible entity’’—
Section effective on Dec. 27, 2020, and applicable to (A) means a restaurant, food stand, food
loans and grants made on or after Dec. 27, 2020, see sec- truck, food cart, caterer, saloon, inn, tavern,
tion 348 of Pub. L. 116–260, set out as an Effective Date bar, lounge, brewpub, tasting room, tap-
of 2020 Amendment note under section 636 of this title. room, licensed facility or premise of a bev-
erage alcohol producer where the public may
TAX TREATMENT OF TARGETED EIDL ADVANCES
taste, sample, or purchase products, or other
Pub. L. 117–2, title IX, § 9672, Mar. 11, 2021, 135 Stat. similar place of business in which the public
184, provided that: ‘‘For purposes of the Internal Rev- or patrons assemble for the primary purpose
enue Code of 1986 [26 U.S.C. 1 et seq.]— of being served food or drink;
‘‘(1) amounts received from the Administrator of
(B) includes an entity described in sub-
the Small Business Administration in the form of a
targeted EIDL advance under section 331 of the Eco- paragraph (A) that is located in an airport
nomic Aid to Hard-Hit Small Businesses, Nonprofits, terminal or that is a Tribally-owned con-
and Venues Act (title III of division N of Public Law cern; and
116–260) [15 U.S.C. 9009b] shall not be included in the (C) does not include—
gross income of the person that receives such (i) an entity described in subparagraph
amounts, (A) that—
‘‘(2) no deduction shall be denied, no tax attribute (I) is a State or local government-oper-
shall be reduced, and no basis increase shall be de- ated business;
nied, by reason of the exclusion from gross income
provided by paragraph (1), and
(II) as of March 13, 2020, owns or oper-
‘‘(3) in the case of a partnership or S corporation ates (together with any affiliated busi-
that receives such amounts— ness) more than 20 locations, regardless
‘‘(A) any amount excluded from income by reason of whether those locations do business
of paragraph (1) shall be treated as tax exempt in- under the same or multiple names; or
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