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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/, SHA-256 fc12a8c0591224885ec3a0649cbbb260c70cc2de6bfaba1942aeb11b6323855a.

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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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