Senate Amendments to S. 178 on Paycheck Protection Program, August 4, 2020 — Congressional Record
Summary
This is page S4737 of the Congressional Record, Senate, August 4, 2020, listing text of amendments to S. 178 that were intended to be proposed to amendment SA 2499 by Mr. MCCONNELL. SA 2505, submitted by Mr. RUBIO and Ms. COLLINS, adds a Small Business Recovery section titled the Continuing Small Business Recovery and Paycheck Protection Program Act. It would allow PPP loan funds to cover operations expenditures, property damage costs, supplier costs, and worker protection expenditures. Covered supplier costs are tied to contracts in effect before February 15, 2020, and worker protection expenditures cover COVID-19 safety requirements from March 1, 2020 through December 31, 2020. The page also lists SA 2552 through SA 2566 from other Senators.
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“Senate Amendments to S. 178 on Paycheck Protection Program, August 4, 2020 — Congressional Record.”
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August 4, 2020 CONGRESSIONAL RECORD — SENATE S4737
amendment SA 2499 proposed by Mr. MCCON- TEXT OF AMENDMENTS was not covered by insurance or other com-
NELL to the bill S. 178, supra; which was or- pensation;’’;
dered to lie on the table. SA 2505. Mr. RUBIO (for himself and (vii) by inserting after paragraph (6), as so
SA 2552. Mr. SCOTT, of Florida (for him- Ms. COLLINS) submitted an amendment redesignated, the following:
self, Ms. ERNST, and Ms. MCSALLY) sub- intended to be proposed to amendment ‘‘(5) the term ‘covered supplier cost’ means
mitted an amendment intended to be pro- SA 2499 proposed by Mr. MCCONNELL to an expenditure made by an entity to a sup-
posed to amendment SA 2499 proposed by Mr. the bill S. 178, to condemn gross human plier of goods pursuant to a contract in ef-
MCCONNELL to the bill S. 178, supra; which rights violations of ethnic Turkic Mus- fect before February 15, 2020 for the supply of
was ordered to lie on the table. goods that are essential to the operations of
lims in Xinjiang, and calling for an end
SA 2553. Mr. ENZI submitted an amend- the entity at the time at which the expendi-
to arbitrary detention, torture, and ture is made;’’;
ment intended to be proposed to amendment
SA 2499 proposed by Mr. MCCONNELL to the
harassment of these communities in- (viii) by inserting after paragraph (8), as so
bill S. 178, supra; which was ordered to lie on side and outside China; which was or- redesignated, the following:
the table. dered to lie on the table; as follows: ‘‘(9) the term ‘covered worker protection
SA 2554. Mr. ENZI submitted an amend- At the end of the amendment, add the fol- expenditure’—
ment intended to be proposed by him to the lowing: ‘‘(A) means an operating or a capital ex-
bill S. 178, supra; which was ordered to lie on SEC. 3. SMALL BUSINESS RECOVERY. penditure that is required to facilitate the
the table . adaptation of the business activities of an
(a) SHORT TITLE.—This section may be
SA 2555. Mr. ENZI submitted an amend- entity to comply with requirements estab-
cited as the ‘‘Continuing Small Business Re-
ment intended to be proposed to amendment lished or guidance issued by the Department
covery and Paycheck Protection Program
SA 2499 proposed by Mr. MCCONNELL to the of Health and Human Services, the Centers
Act’’.
bill S. 178, supra; which was ordered to lie on for Disease Control, or the Occupational
(b) DEFINITIONS.—In this section:
the table. Safety and Health Administration during the
(1) ADMINISTRATION; ADMINISTRATOR.—The
SA 2556. Mr. ENZI submitted an amend- period beginning on March 1, 2020 and ending
terms ‘‘Administration’’ and ‘‘Adminis- December 31, 2020 related to the maintenance
ment intended to be proposed by him to the trator’’ mean the Small Business Adminis-
bill S. 178, supra; which was ordered to lie on of standards for sanitation, social
tration and the Administrator thereof, re- distancing, or any other worker or customer
the table . spectively. safety requirement related to COVID–19;
SA 2557. Mr. ENZI submitted an amend- (2) SMALL BUSINESS CONCERN.—The term ‘‘(B) may include—
ment intended to be proposed to amendment ‘‘small business concern’’ has the meaning ‘‘(i) the purchase, maintenance, or renova-
SA 2499 proposed by Mr. MCCONNELL to the given the term in section 3 of the Small tion of assets that create or expand—
bill S. 178, supra; which was ordered to lie on Business Act (15 U.S.C. 632). ‘‘(I) a drive-through window facility;
the table. (c) EMERGENCY RULEMAKING AUTHORITY.— ‘‘(II) an indoor, outdoor, or combined air or
SA 2558. Mr. ENZI submitted an amend- Not later than 30 days after the date of en- air pressure ventilation or filtration system;
ment intended to be proposed by him to the actment of this Act, the Administrator shall ‘‘(III) a physical barrier such as a sneeze
bill S. 178, supra; which was ordered to lie on issue regulations to carry out this section guard;
the table . and the amendments made by this section ‘‘(IV) an indoor, outdoor, or combined com-
SA 2559. Mr. ROMNEY (for himself, Ms. without regard to the notice requirements mercial real property;
COLLINS, and Ms. MCSALLY) submitted an under section 553(b) of title 5, United States ‘‘(V) an onsite or offsite health screening
amendment intended to be proposed to Code. capability; or
amendment SA 2499 proposed by Mr. MCCON- (d) ADDITIONAL ELIGIBLE EXPENSES.— ‘‘(VI) other assets relating to the compli-
NELL to the bill S. 178, supra; which was or- (1) ALLOWABLE USE OF PPP LOAN.—Section ance with the requirements or guidance de-
dered to lie on the table. 7(a)(36)(F)(i) of the Small Business Act (15 scribed in subparagraph (A), as determined
SA 2560. Mr. COTTON submitted an amend- U.S.C. 636(a)(36)(F)(i)) is amended— by the Administrator in consultation with
ment intended to be proposed to amendment (A) in subclause (VI), by striking ‘‘and’’ at the Secretary of Health and Human Services
SA 2499 proposed by Mr. MCCONNELL to the the end; and the Secretary of Labor; and
bill S. 178, supra; which was ordered to lie on (B) in subclause (VII), by striking the pe- ‘‘(ii) the purchase of—
the table. riod at the end and inserting a semicolon; ‘‘(I) covered materials described in section
SA 2561. Mrs. CAPITO submitted an and 328.103(a) of title 44, Code of Federal Regula-
amendment intended to be proposed to (C) by adding at the end the following: tions, or any successor regulation;
amendment SA 2499 proposed by Mr. MCCON- ‘‘(VIII) covered operations expenditures, as ‘‘(II) particulate filtering facepiece res-
NELL to the bill S. 178, supra; which was or- defined in section 1106(a) of the CARES Act pirators approved by the National Institute
dered to lie on the table. (15 U.S.C. 9005(a)); for Occupational Safety and Health, includ-
SA 2562. Mrs. CAPITO submitted an ‘‘(IX) covered property damage costs, as ing those approved only for emergency use
amendment intended to be proposed to defined in such section 1106(a); authorization; or
amendment SA 2499 proposed by Mr. MCCON- ‘‘(X) covered supplier costs, as defined in ‘‘(III) other kinds of personal protective
NELL to the bill S. 178, supra; which was or- such section 1106(a); and equipment, as determined by the Adminis-
dered to lie on the table. ‘‘(XI) covered worker protection expendi- trator in consultation with the Secretary of
SA 2563. Mr. YOUNG submitted an amend- tures, as defined in such section 1106(a).’’. Health and Human Services and the Sec-
ment intended to be proposed to amendment (2) LOAN FORGIVENESS.—Section 1106 of the retary of Labor; and
SA 2499 proposed by Mr. MCCONNELL to the CARES Act (15 U.S.C. 9005) is amended— ‘‘(C) does not include residential real prop-
bill S. 178, supra; which was ordered to lie on (A) in subsection (a)— erty or intangible property;’’; and
the table. (i) by redesignating paragraphs (6), (7), and (ix) in paragraph (11), as so redesignated—
SA 2564. Mr. MORAN submitted an amend- (8) as paragraphs (10), (11), and (12), respec- (I) in subparagraph (C), by striking ‘‘and’’
ment intended to be proposed to amendment tively; at the end;
SA 2499 proposed by Mr. MCCONNELL to the (ii) by redesignating paragraph (5) as para- (II) in subparagraph (D), by striking ‘‘and’’
bill S. 178, supra; which was ordered to lie on graph (8); at the end; and
the table. (iii) by redesignating paragraph (4) as para- (III) by adding at the end the following:
SA 2565. Mr. CORNYN (for himself and Mr. graph (6); ‘‘(E) covered operations expenditures;
MCCONNELL) submitted an amendment in- (iv) by redesignating paragraph (3) as para- ‘‘(F) covered property damage costs;
tended to be proposed to amendment SA 2499 graph (4); ‘‘(G) covered supplier costs; and
proposed by Mr. MCCONNELL to the bill S. (v) by inserting after paragraph (2) the fol- ‘‘(H) covered worker protection expendi-
178, supra; which was ordered to lie on the lowing: tures; and’’;
table. ‘‘(3) the term ‘covered operations expendi- (B) in subsection (b), by adding at the end
SA 2566. Mrs. HYDE–SMITH submitted an ture’ means a payment for any business soft- the following:
amendment intended to be proposed to ware or cloud computing service that facili- ‘‘(5) Any covered operations expenditure.
amendment SA 2499 proposed by Mr. MCCON- tates business operations, product or service ‘‘(6) Any covered property damage cost.
NELL to the bill S. 178, supra; which was or- delivery, the processing, payment, or track- ‘‘(7) Any covered supplier cost.
dered to lie on the table. ing of payroll expenses, human resources, ‘‘(8) Any covered worker protection ex-
SA 2567. Mr. McCONNELL (for Mrs. CAPITO sales and billing functions, or accounting or penditure.’’;
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(for herself and Mr. PETERS)) proposed an tracking of supplies, inventory, records and (C) in subsection (d)(8), by inserting ‘‘any
amendment to the bill S. 384, to require the expenses;’’; payment on any covered operations expendi-
Secretary of Commerce, acting through the (vi) by inserting after paragraph (4), as so ture, any payment on any covered property
Director of the National Institute of Stand- redesignated, the following: damage cost, any payment on any covered
ards and Technology, to help facilitate the ‘‘(5) the term ‘covered property damage supplier cost, any payment on any covered
adoption of composite technology in infra- cost’ means a cost related to property dam- worker protection expenditure,’’ after ‘‘rent
structure in the United States, and for other age and vandalism or looting due to public obligation,’’; and
purposes. disturbances that occurred during 2020 that (D) in subsection (e)—
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S4738 CONGRESSIONAL RECORD — SENATE August 4, 2020
(i) in paragraph (2), by inserting ‘‘pay- ‘‘(B) DEMOGRAPHIC INFORMATION.—An eligi- ‘‘(i) the number of active reviews and au-
ments on covered operations expenditures, ble recipient of a covered loan described in dits;
payments on covered property damage costs, subparagraph (A) may complete and submit ‘‘(ii) the number of reviews and audits that
payments on covered supplier costs, pay- any form related to borrower demographic have been ongoing for more than 60 days; and
ments on covered worker protection expendi- information. ‘‘(iii) any substantial changes made to the
tures,’’ after ‘‘lease obligations,’’; and ‘‘(C) AUDIT.—The Administrator may— audit plan submitted under subparagraph
(ii) in paragraph (3)(B), by inserting ‘‘make ‘‘(i) review and audit covered loans de- (A).’’.
payments on covered operations expendi- scribed in subparagraph (A); and (h) GROUP INSURANCE PAYMENTS AS PAY-
tures, make payments on covered property ‘‘(ii) in the case of fraud, ineligibility, or ROLL COSTS.—Section
damage costs, make payments on covered other material noncompliance with applica- 7(a)(36)(A)(viii)(I)(aa)(EE) of the Small Busi-
supplier costs, make payments on covered ble loan or loan forgiveness requirements, ness Act (15 U.S.C.
worker protection expenditures,’’ after ‘‘rent modify— 636(a)(36)(A)(viii)(I)(aa)(EE)) is amended by
obligation,’’. ‘‘(I) the amount of a covered loan described inserting ‘‘and other group insurance’’ before
(e) LENDER SAFE HARBOR.—Subsection (h) in subparagraph (A); or ‘‘benefits’’.
of section 1106 of the CARES Act (15 U.S.C. ‘‘(II) the loan forgiveness amount with re- (i) PAYCHECK PROTECTION PROGRAM SECOND
9005) is amended to read as follows: spect to a covered loan described in subpara- DRAW LOANS.—Section 7(a) of the Small
‘‘(h) HOLD HARMLESS.— graph (A). Business Act (15 U.S.C. 636(a)) is amended by
‘‘(1) IN GENERAL.—A lender may rely on ‘‘(2) COVERED LOANS BETWEEN $150,000 AND adding at the end the following:
any certification or documentation sub- $2,000,000.— ‘‘(37) PAYCHECK PROTECTION PROGRAM SEC-
mitted by an applicant for a covered loan or ‘‘(A) IN GENERAL.—Notwithstanding sub- OND DRAW LOANS.—
an eligible recipient of a covered loan that— section (e), with respect to a covered loan ‘‘(A) DEFINITIONS.—In this paragraph—
‘‘(A) is submitted pursuant to any statu- made to an eligible recipient that is more ‘‘(i) the terms ‘community financial insti-
tory requirement relating to covered loans than $150,000 and not more than $2,000,000— tutions’, ‘credit union’, ‘eligible self-em-
or any rule or guidance issued to carry out ‘‘(i) the eligible recipient seeking loan for- ployed individual’, ‘insured depository insti-
any action relating to covered loans; and giveness under this section— tution’, ‘nonprofit organization’, ‘payroll
‘‘(B) attests that the applicant or eligible ‘‘(I) is not required to submit the sup- costs’, ‘seasonal employer’, and ‘veterans or-
recipient, as applicable, has accurately porting documentation described in para- ganization’ have the meanings given those
verified any certification or documentation graph (1) or (2) of subsection (e) or the cer- terms in paragraph (36), except that ‘eligible
provided to the lender. tification described in subsection (e)(3)(A); entity’ shall be substituted for ‘eligible re-
‘‘(2) NO ENFORCEMENT ACTION.—With re- ‘‘(II) shall retain all relevant schedules, cipient’ each place it appears in the defini-
spect to a lender that relies on a certifi- worksheets, and supporting documentation tions of those terms;
cation or documentation described in para- for the 3-year period following submission of ‘‘(ii) the term ‘covered loan’ means a loan
graph (1)— the application for loan forgiveness; and made under this paragraph;
‘‘(A) an enforcement action may not be ‘‘(III) may complete and submit any form ‘‘(iii) the terms ‘covered mortgage obliga-
taken against the lender acting in good faith related to borrower demographic informa- tion’, ‘covered operating expenditure’, ‘cov-
relating to origination or forgiveness of a tion; ered property damage cost’, ‘covered rent ob-
covered loan based on such reliance; and ‘‘(ii) review by the lender of an application ligation’, ‘covered supplier cost’, ‘covered
‘‘(B) the lender acting in good faith shall submitted by the eligible recipient for loan utility payment’, and ‘covered worker pro-
not be subject to any penalties relating to forgiveness under this section shall be lim- tection expenditure’ have the meanings
origination or forgiveness of a covered loan ited to whether the lender received a com- given those terms in section 1106(a) of the
based on such reliance.’’. plete application, with all fields completed, CARES Act (15 U.S.C. 9005(a));
(f) SELECTION OF COVERED PERIOD FOR FOR- initialed, or signed, as applicable; and ‘‘(iv) the term ‘covered period’ means the
GIVENESS.—Section 1106 of the CARES Act ‘‘(iii) the lender shall— period beginning on the date of the origina-
(15 U.S.C. 9005) is amended— ‘‘(I) accept the application submitted by tion of a covered loan and ending on Decem-
(1) by amending paragraph (4) of subsection the eligible recipient for loan forgiveness ber 31, 2020;
(a), as so redesignated by subsection (d) of under this section; and ‘‘(v) the term ‘eligible entity’—
this section, to read as follows: ‘‘(II) submit the application to the Admin- ‘‘(I) means any business concern, nonprofit
‘‘(4) the term ‘covered period’ means the istrator. organization, veterans organization, Tribal
period— ‘‘(B) AUDIT.—The Administrator may— business concern, eligible self-employed indi-
‘‘(A) beginning on the date of the origina- ‘‘(i) review and audit covered loans de- vidual, sole proprietor, independent con-
tion of a covered loan; and scribed in subparagraph (A); and tractor, or small agricultural cooperative
‘‘(B) ending on a date selected by the eligi- ‘‘(ii) in the case of fraud, ineligibility, or that—
ble recipient of the covered loan that occurs other material noncompliance with applica- ‘‘(aa)(AA) with respect to a business con-
during the period— ble loan or loan forgiveness requirements, cern, would qualify as a small business con-
‘‘(i) beginning on the date that is 8 weeks modify— cern by the annual receipts size standard (if
after such date of origination; and ‘‘(I) the amount of a covered loan described applicable) established by section 121.201 of
‘‘(ii) ending on December 31, 2020;’’; and in subparagraph (A); or title 13, Code of Federal Regulations, or any
(2) by striking subsection (l). ‘‘(II) the loan forgiveness amount with re- successor regulation; or
(g) SIMPLIFIED APPLICATION.—Section 1106 spect to a covered loan described in subpara- ‘‘(BB) if the entity does not qualify as a
of the CARES Act (15 U.S.C. 9005), as amend- graph (A). small business concern, meets the alter-
ed by subsection (f) of this section, is amend- ‘‘(3) AUDIT PLAN.— native size standard established under sec-
ed— ‘‘(A) IN GENERAL.—Not later than 30 days tion 3(a)(5);
(1) in subsection (e), in the matter pre- after the date of enactment of the Con- ‘‘(bb) employs not more than 300 employ-
ceding paragraph (1), by striking ‘‘An eligi- tinuing Small Business Recovery and Pay- ees; and
ble’’ and inserting ‘‘Except as provided in check Protection Program Act, the Adminis- ‘‘(cc)(AA) except as provided in subitems
subsection (l), an eligible’’; trator shall submit to the Committee on (BB), (CC), and (DD), had gross receipts dur-
(2) in subsection (f), by inserting ‘‘or the Small Business and Entrepreneurship of the ing the first or second quarter in 2020 that
information required under subsection (l), as Senate and the Committee on Small Busi- are not less than 35 percent less than the
applicable’’ after ‘‘subsection (e)’’; and ness of the House of Representatives an gross receipts of the entity during the same
(3) by adding at the end the following: audit plan that details— quarter in 2019;
‘‘(l) SIMPLIFIED APPLICATION.— ‘‘(i) the policies and procedures of the Ad- ‘‘(BB) if the entity was not in business dur-
‘‘(1) COVERED LOANS UNDER $150,000.— ministrator for conducting reviews and au- ing the first or second quarter of 2019, but
‘‘(A) IN GENERAL.—Notwithstanding sub- dits of covered loans; and was in business during the third and fourth
section (e), with respect to a covered loan ‘‘(ii) the metrics that the Administrator quarter of 2019, had gross receipts during the
made to an eligible recipient that is not shall use to determine which covered loans first or second quarter of 2020 that are less
more than $150,000, the covered loan amount will be audited for each category of covered than 35 percent of the amount of the gross
shall be forgiven under this section if the eli- loans described in paragraphs (1) and (2). receipts of the entity during the third or
gible recipient— ‘‘(B) REPORTS.—Not later than 30 days fourth quarter of 2019;
‘‘(i) signs and submits to the lender an at- after the date on which the Administrator ‘‘(CC) if the entity was not in business dur-
testation that the eligible recipient made a submits the audit plan required under sub- ing the first, second, or third quarter of 2019,
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good faith effort to comply with the require- paragraph (A), and each month thereafter, but was in business during the fourth quarter
ments under section 7(a)(36) of the Small the Administrator shall submit to the Com- of 2019, had gross receipts during the first or
Business Act (15 U.S.C. 636(a)(36)); and mittee on Small Business and Entrepreneur- second quarter of 2020 that are less than 35
‘‘(ii) for the 1-year period following sub- ship of the Senate and the Committee on percent of the amount of the gross receipts
mission of the attestation under clause (i), Small Business of the House of Representa- of the entity during the fourth quarter of
retains records relevant to the attestation tives a report on the review and audit activi- 2019; or
that prove compliance with those require- ties of the Administrator under this sub- ‘‘(DD) if the entity was not in business dur-
ments. section, which shall include— ing 2019, but was in operation on February
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August 4, 2020 CONGRESSIONAL RECORD — SENATE S4739
15, 2020, had gross receipts during the second political strategy or otherwise describes amount of loans guaranteed under this sub-
quarter of 2020 that are less than 35 percent itself as a think tank in any public docu- section that are approved for an eligible en-
of the amount of the gross receipts of the en- ments; or tity (including any affiliates) within 90 days
tity during the first quarter of 2020; ‘‘(dd) any business concern or entity— of approval of another loan under this sub-
‘‘(II) includes an organization described in ‘‘(AA) for which an entity created in or or- section for the eligible entity (including any
subparagraph (D)(vii) of paragraph (36) that ganized under the laws of the People’s Re- affiliates) shall not exceed $10,000,000.
is eligible to receive a loan under that para- public of China or the Special Administra- ‘‘(D) EXCEPTION FROM CERTAIN CERTIFI-
graph and that meets the requirements de- tive Region of Hong Kong, or that has sig- CATION REQUIREMENTS.—An eligible entity
scribed in items (aa) and (cc) of subclause (I); nificant operations in the People’s Republic applying for a covered loan shall not be re-
and of China or the Special Administrative Re- quired to make the certification described in
‘‘(III) does not include— gion of Hong Kong, owns or holds, directly or subclause (III) or (IV) of paragraph (36)(G)(i).
‘‘(aa) an issuer, the securities of which are indirectly, not less than 20 percent of the ‘‘(E) FEE WAIVER.—With respect to a cov-
listed on an exchange registered a national economic interest of the business concern or ered loan—
securities exchange under section 6 of the entity, including as equity shares or a cap- ‘‘(i) in lieu of the fee otherwise applicable
Securities Exchange Act of 1934 (15 U.S.C. ital or profit interest in a limited liability under paragraph (23)(A), the Administrator
78f); company or partnership; or shall collect no fee; and
‘‘(bb) any entity that— ‘‘(BB) that retains, as a member of the ‘‘(ii) in lieu of the fee otherwise applicable
‘‘(AA) is a type of business concern de- board of directors of the business concern, a under paragraph (18)(A), the Administrator
scribed in subsection (b), (c), (d), (e), (f), (h), person who is a resident of the People’s Re- shall collect no fee.
(l) (m), (p), (q), (r), or (s) of section 120.110 of public of China; ‘‘(F) ELIGIBLE CHURCHES AND RELIGIOUS OR-
title 13, Code of Federal Regulations, or any ‘‘(vi) the terms ‘exchange’, ‘issuer’, and ‘se- GANIZATIONS.—
successor regulation; curity’ have the meanings given those terms ‘‘(i) SENSE OF CONGRESS.—It is the sense of
‘‘(BB) is a type of business concern de- in section 3(a) of the Securities Exchange Congress that the interim final rule of the
scribed in section 120.110(g) of title 13, Code Act of 1934 (15 U.S.C. 78c(a)); and Administration entitled ‘Business Loan Pro-
of Federal Regulations, or any successor reg- ‘‘(vii) the term ‘Tribal business concern’ gram Temporary Changes; Paycheck Protec-
ulation, except as otherwise provided in the means a Tribal business concern described in tion Program’ (85 Fed. Reg. 20817 (April 15,
interim final rule of the Administration en- section 31(b)(2)(C). 2020)) properly clarified the eligibility of
titled ‘Business Loan Program Temporary ‘‘(B) LOANS.—Except as otherwise provided churches and religious organizations for
Changes; Paycheck Protection Program—Ad- in this paragraph, the Administrator may loans made under paragraph (36).
ditional Eligibility Criteria and Require- guarantee covered loans to eligible entities ‘‘(ii) APPLICABILITY OF PROHIBITION.—The
ments for Certain Pledges of Loans’ (85 Fed. under the same terms, conditions, and proc- prohibition on eligibility established by sec-
Reg. 21747 (April 20, 2020)); esses as a loan made under paragraph (36). tion 120.110(k) of title 13, Code of Federal
‘‘(CC) is a type of business concern de- ‘‘(C) MAXIMUM LOAN AMOUNT.— Regulations, or any successor regulation,
scribed in section 120.110(i) of title 13, Code of ‘‘(i) IN GENERAL.—Except as otherwise pro- shall not apply to a covered loan.
Federal Regulations, or any successor regu- vided in this subparagraph, the maximum ‘‘(G) GROSS RECEIPTS FOR NONPROFIT AND
lation, except if the business concern is an amount of a covered loan made to an eligible VETERANS ORGANIZATIONS.—For purposes of
organization described in paragraph entity is the lesser of— calculating gross receipts under subpara-
(36)(D)(vii); ‘‘(I) the product obtained by multiplying— graph (A)(v)(I)(cc) for an eligible entity that
‘‘(DD) is a type of business concern de- ‘‘(aa) at the election of the eligible entity, is a nonprofit organization, a veterans orga-
scribed in section 120.110(j) of title 13, Code of the average total monthly payment for pay- nization, or an organization described in sub-
Federal Regulations, or any successor regu- roll costs incurred or paid by the eligible en- paragraph (A)(v)(II), gross receipts—
lation, except as otherwise provided in the tity during— ‘‘(i) shall include proceeds from fund-
interim final rules of the Administration en- ‘‘(AA) the 1-year period before the date on raising events, federated campaigns, gifts,
titled ‘Business Loan Program Temporary which the loan is made; or donor-advised funds, and funds from similar
Changes; Paycheck Protection Program— ‘‘(BB) calendar year 2019; by sources; and
Eligibility of Certain Electric Cooperatives’ ‘‘(bb) 2.5; or ‘‘(ii) shall not include—
(85 Fed. Reg. 29847 (May 19, 2020)) and ‘Busi- ‘‘(II) $2,000,000. ‘‘(I) Federal grants (excluding any loan for-
ness Loan Program Temporary Changes; ‘‘(ii) SEASONAL EMPLOYERS.—The maximum giveness on loans received under paragraph
Paycheck Protection Program—Eligibility amount of a covered loan made to an eligible (36) or this paragraph);
of Certain Telephone Cooperatives’ (85 Fed. entity that is a seasonal employer is the ‘‘(II) revenues from a supporting organiza-
Reg. 35550 (June 11, 2020)) or any other guid- lesser of— tion;
ance or rule issued or that may be issued by ‘‘(I) the product obtained by multiplying— ‘‘(III) grants from private foundations that
the Administrator; ‘‘(aa) at the election of the eligible entity, are disbursed over the course of more than 1
‘‘(EE) is a type of business concern de- the average total monthly payments for pay- calendar year; or
scribed in section 120.110(n) of title 13, Code roll costs incurred or paid by the eligible en- ‘‘(IV) any contribution of property other
of Federal Regulations, or any successor reg- tity— than money, stocks, bonds, and other securi-
ulation, except as otherwise provided in the ‘‘(AA) for a 12-week period beginning Feb- ties, provided that the non-cash contribution
interim final rule of the Administration en- ruary 15, 2019 or March 1, 2019 and ending is not sold by the organization in a trans-
titled ‘Business Loan Program Temporary June 30, 2019; or action unrelated to the tax-exempt purpose
Changes; Paycheck Protection Program—Ad- ‘‘(BB) for a consecutive 12-week period be- of the organization.
ditional Eligibility Revisions to First In- tween May 1, 2019 and September 15, 2019; by ‘‘(H) LOAN FORGIVENESS.—
terim Final Rule’ (85 Fed. Reg. 38301 (June ‘‘(bb) 2.5; or ‘‘(i) IN GENERAL.—Except as otherwise pro-
26, 2020)) or any other guidance or rule issued ‘‘(II) $2,000,000. vided in this subparagraph, an eligible entity
or that may be issued by the Administrator; ‘‘(iii) NEW ENTITIES.—The maximum shall be eligible for forgiveness of indebted-
‘‘(FF) is a type of business concern de- amount of a covered loan made to an eligible ness on a covered loan in the same manner
scribed in section 120.110(o) of title 13, Code entity that did not exist during the 1-year as an eligible recipient with respect to a loan
of Federal Regulations, or any successor reg- period preceding February 15, 2020 is the less- made under paragraph (36), as described in
ulation, except as otherwise provided in any er of— section 1106 of the CARES Act (15 U.S.C.
guidance or rule issued or that may be issued ‘‘(I) the product obtained by multiplying— 9005).
by the Administrator; or ‘‘(aa) the quotient obtained by dividing— ‘‘(ii) FORGIVENESS AMOUNT.—An eligible en-
‘‘(GG) is an entity that is organized for re- ‘‘(AA) the sum of the total monthly pay- tity shall be eligible for forgiveness of in-
search or for engaging in advocacy in areas ments by the eligible entity for payroll costs debtedness on a covered loan in an amount
such as public policy or political strategy or paid or incurred by the eligible entity as of equal to the sum of the following costs in-
otherwise describes itself as a think tank in the date on which the eligible entity applies curred or expenditures made during the cov-
any public documents; for the covered loan; by ered period:
‘‘(HH) is an entity that would be described ‘‘(BB) the number of months in which ‘‘(I) Payroll costs.
in the subsections listed in subitems (AA) those payroll costs were paid or incurred; by ‘‘(II) Any payment of interest on any cov-
through (GG) if the entity were a business ‘‘(bb) 2.5; or ered mortgage obligation (which shall not in-
concern; or ‘‘(II) $2,000,000. clude any prepayment of or payment of prin-
‘‘(II) is assigned, or was approved for a loan ‘‘(iv) LIMIT FOR MULTIPLE LOCATIONS.—With cipal on a covered mortgage obligation).
SSpencer on DSK126QN23PROD with SENATE
under paragraph (36) with, a North American respect to an eligible entity with more than ‘‘(III) Any covered operations expenditure.
Industry Classification System code begin- 1 physical location, the total amount of all ‘‘(IV) Any covered property damage cost.
ning with 52; covered loans shall be not more than ‘‘(V) Any payment on any covered rent ob-
‘‘(cc) any business concern or entity pri- $2,000,000. ligation.
marily engaged in political or lobbying ac- ‘‘(v) LOAN NUMBER LIMITATION.—An eligible ‘‘(VI) Any covered utility payment.
tivities, which shall include any entity that entity may only receive 1 covered loan. ‘‘(VII) Any covered supplier cost.
is organized for research or for engaging in ‘‘(vi) 90 DAY RULE FOR MAXIMUM LOAN ‘‘(VIII) Any covered worker protection ex-
advocacy in areas such as public policy or AMOUNT.—The maximum aggregate loan penditure.
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S4740 CONGRESSIONAL RECORD — SENATE August 4, 2020
‘‘(iii) LIMITATION ON FORGIVENESS FOR ALL (2) APPLICABILITY OF MAXIMUM LOAN culated using the formula described in sub-
ELIGIBLE ENTITIES.—The forgiveness amount AMOUNT CALCULATION.— paragraph (E), except that the gross income
under this subparagraph shall be equal to the (A) DEFINITIONS.—In this paragraph, the of the covered recipient described in clause
lesser of— terms ‘‘covered loan’’ and ‘‘eligible recipi- (ii)(I)(aa)(AA) of this subparagraph, as di-
‘‘(I) the amount described in clause (ii); ent’’ have the meanings given those terms in vided by 12, shall be added to the sum cal-
and section 7(a)(36) of the Small Business Act (15 culated under subparagraph (E)(i)(I).
‘‘(II) the amount equal to the quotient ob- U.S.C. 636(a)(36)). ‘‘(iv) RECALCULATION.—A lender that made
tained by dividing— (B) APPLICABILITY.—The amendment made a covered loan to a covered recipient before
‘‘(aa) the amount of the covered loan used by paragraph (1) shall apply only with re- the date of enactment of this subparagraph
for payroll costs during the covered period; spect to a covered loan applied for by an eli- may, at the request of the covered recipi-
and gible recipient on or after the date of enact- ent—
‘‘(bb) 0.60. ment of this Act. ‘‘(I) recalculate the maximum loan amount
‘‘(I) LENDER ELIGIBILITY.—Except as other- (k) INCREASED ABILITY FOR PAYCHECK PRO- applicable to that covered loan based on the
wise provided in this paragraph, a lender ap- TECTION PROGRAM BORROWERS TO REQUEST AN formula described in clause (ii) or (iii), as ap-
proved to make loans under paragraph (36) INCREASE IN LOAN AMOUNT DUE TO UPDATED plicable, if doing so would result in a larger
may make covered loans under the same REGULATIONS.— covered loan amount; and
terms and conditions as in paragraph (36). (1) DEFINITIONS.—In this subsection, the ‘‘(II) provide the covered recipient with ad-
‘‘(J) REIMBURSEMENT FOR LOAN PROCESSING terms ‘‘covered loan’’ and ‘‘eligible recipi- ditional covered loan amounts based on that
AND SERVICING.—The Administrator shall re- ent’’ have the meanings given those terms in recalculation.’’.
imburse a lender authorized to make a cov- section 7(a)(36) of the Small Business Act (15 (m) FARM CREDIT SYSTEM INSTITUTIONS.—
ered loan in an amount that is— U.S.C. 636(a)(36)). (1) DEFINITION OF FARM CREDIT SYSTEM IN-
‘‘(i) 3 percent of the principal amount of (2) INCREASED AMOUNT.—Notwithstanding STITUTION.—In this subsection, the term
the financing of the covered loan up to the interim final rule issued by the Adminis- ‘‘Farm Credit System institution’’—
$350,000; and tration entitled ‘‘Business Loan Program (A) means an institution of the Farm Cred-
‘‘(ii) 1 percent of the principal amount of Temporary Changes; Paycheck Protection it System chartered under the Farm Credit
the financing of the covered loan above Program—Loan Increases’’ (85 Fed. Reg. Act of 1971 (12 U.S.C. 2001 et seq.); and
29842 (May 19, 2020)), an eligible recipient of (B) does not include the Federal Agricul-
$350,000, if applicable.
a covered loan that is eligible for an in- tural Mortgage Corporation.
‘‘(K) SET ASIDE FOR SMALL ENTITIES.—Not
creased covered loan amount as a result of (2) FACILITATION OF PARTICIPATION IN PPP
less than $25,000,000,000 of the total amount
any interim final rule that allows for cov- AND SECOND DRAW LOANS.—
of covered loans guaranteed by the Adminis-
ered loan increases may submit a request for (A) APPLICABLE RULES.—Solely with re-
trator shall be made to eligible entities with
an increase in the covered loan amount even spect to loans under paragraphs (36) and (37)
not more than 10 employees as of February
if— of section 7(a) of the Small Business Act (15
15, 2020.
(A) the initial covered loan amount has U.S.C. 636(a)), Farm Credit Administration
‘‘(L) SET ASIDE FOR COMMUNITY FINANCIAL
been fully disbursed; or regulations and guidance issued as of July
INSTITUTIONS, SMALL INSURED DEPOSITORY IN-
(B) the lender of the initial covered loan 14, 2020, and compliance with such regula-
STITUTIONS, CREDIT UNIONS, AND FARM CREDIT
has submitted to the Administration a Form tions and guidance, shall be deemed func-
SYSTEM INSTITUTIONS.—Not less than 1502 report related to the covered loan. tionally equivalent to requirements ref-
$10,000,000,000 of the total amount of covered (l) CALCULATION OF MAXIMUM LOAN AMOUNT erenced in section 3(a)(iii)(II) of the interim
loans guaranteed by the Administrator shall FOR FARMERS AND RANCHERS UNDER THE PAY- final rule of the Administration entitled
be made by— CHECK PROTECTION PROGRAM.— ‘‘Business Loan Program Temporary
‘‘(i) community financial institutions; (1) IN GENERAL.—Section 7(a)(36) of the Changes; Paycheck Protection Program’’ (85
‘‘(ii) insured depository institutions with Small Business Act (15 U.S.C. 636(a)(36)), as Fed. Reg. 20811 (April 15, 2020)) or any similar
consolidated assets of less than amended by subsection (j) of this section, is requirement referenced in that interim final
$10,000,000,000; amended— rule in implementing such paragraph (37).
‘‘(iii) credit unions with consolidated as- (A) in subparagraph (E), in the matter pre- (B) APPLICABILITY OF CERTAIN LOAN RE-
sets of less than $10,000,000,000; and ceding clause (i), by striking ‘‘During’’ and QUIREMENTS.—For purposes of making loans
‘‘(iv) institutions of the Farm Credit Sys- inserting ‘‘Except as provided in subpara- under paragraph (36) or (37) of section 7(a) of
tem chartered under the Farm Credit Act of graph (T), during’’; and the Small Business Act (15 U.S.C. 636(a)) or
1971 (12 U.S.C. 2001 et seq.) with consolidated (B) by adding at the end the following: forgiving those loans in accordance with sec-
assets of less than $10,000,000,000 (not includ- ‘‘(T) CALCULATION OF MAXIMUM LOAN tion 1106 of the CARES Act (15 U.S.C. 9005)
ing the Federal Agricultural Mortgage Cor- AMOUNT FOR FARMERS AND RANCHERS.— and subparagraph (H) of such paragraph (37),
poration). ‘‘(i) DEFINITION.—In this subparagraph, the sections 4.13, 4.14, and 4.14A of the Farm
‘‘(M) PUBLICATION OF GUIDANCE.—Not later term ‘covered recipient’ means an eligible Credit Act of 1971 (12 U.S.C. 2199, 2202, 2202a)
than 10 days after the date of enactment of recipient that— (including regulations issued under those
this paragraph, the Administrator shall issue ‘‘(I) operates as a sole proprietorship or as sections) shall not apply.
guidance addressing barriers to accessing an independent contractor, or is an eligible (C) RISK WEIGHT.—
capital for minority, underserved, veteran, self-employed individual; (i) IN GENERAL.—With respect to the appli-
and women-owned business concerns for the ‘‘(II) reports farm income or expenses on a cation of Farm Credit Administration cap-
purpose of ensuring equitable access to cov- Schedule F (or any equivalent successor ital requirements, a loan described in clause
ered loans. schedule); and (ii)—
‘‘(N) STANDARD OPERATING PROCEDURE.— ‘‘(III) was in business during the period be- (I) shall receive a risk weight of zero per-
The Administrator shall, to the maximum ginning on February 15, 2019 and ending on cent; and
extent practicable, allow a lender approved June 30, 2019. (II) shall not be included in the calculation
to make covered loans to use existing pro- ‘‘(ii) NO EMPLOYEES.—With respect to cov- of any applicable leverage ratio or other ap-
gram guidance and standard operating proce- ered recipient without employees, the max- plicable capital ratio or calculation.
dures for loans made under this subsection. imum covered loan amount shall be the less- (ii) LOANS DESCRIBED.—A loan referred to
‘‘(O) PROHIBITION ON USE OF PROCEEDS FOR er of— in clause (i) is—
LOBBYING ACTIVITIES.—None of the proceeds ‘‘(I) the sum of— (I) a loan made by a Farm Credit Bank de-
of a covered loan may be used for— ‘‘(aa) the product obtained by multi- scribed in section 1.2(a) of the Farm Credit
‘‘(i) lobbying activities, as defined in sec- plying— Act of 1971 (12 U.S.C. 2002(a)) to a Federal
tion 3 of the Lobbying Disclosure Act of 1995 ‘‘(AA) the gross income of the covered re- Land Bank Association, a Production Credit
(2 U.S.C. 1602); cipient in 2019, as reported on a Schedule F Association, or an agricultural credit asso-
‘‘(ii) lobbying expenditures related to a (or any equivalent successor schedule), that ciation described in that section to make
State or local election; or is not more than $100,000, divided by 12; and loans under paragraph (36) or (37) of section
‘‘(iii) expenditures designed to influence ‘‘(BB) 2.5; and 7(a) of the Small Business Act (15 U.S.C.
the enactment of legislation, appropriations, ‘‘(bb) the outstanding amount of a loan 636(a)) or forgive those loans in accordance
regulation, administrative action, or Execu- under subsection (b)(2) that was made during with section 1106 of the CARES Act (15
tive order proposed or pending before Con- the period beginning on January 31, 2020 and U.S.C. 9005) and subparagraph (H) of such
gress or any State government, State legis- ending on April 3, 2020 that the borrower in- paragraph (37); or
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lature, or local legislature or legislative tends to refinance under the covered loan, (II) a loan made by a Federal Land Bank
body.’’. not including any amount of any advance Association, a Production Credit Associa-
(j) CONTINUED ACCESS TO THE PAYCHECK under the loan that is not required to be re- tion, an agricultural credit association, or
PROTECTION PROGRAM.— paid; or the bank for cooperatives described in sec-
(1) IN GENERAL.—Section 7(a)(36)(E)(ii) of ‘‘(II) $2,000,000. tion 1.2(a) of the Farm Credit Act of 1971 (12
the Small Business Act (15 U.S.C. ‘‘(iii) WITH EMPLOYEES.—With respect to a U.S.C. 2002(a)) under paragraph (36) or (37) of
636(a)(36)(E)(ii)) is amended by striking covered recipient with employees, the max- section 7(a) of the Small Business Act (15
‘‘$10,000,000’’ and inserting ‘‘$2,000,000’’. imum covered loan amount shall be cal- U.S.C. 636(a)).
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August 4, 2020 CONGRESSIONAL RECORD — SENATE S4741
(D) RESERVATION OF LOAN GUARANTEES.— ‘‘(bb) employed not more than 250 employ- ‘‘(i) under the same terms, conditions, and
Section 7(a)(36)(S) of the Small Business Act ees during not fewer than 5 months out of processes as a loan made under this sub-
(15 U.S.C. 636(a)(36)(S)) is amended— that year; section; and
(i) in clause (i)— ‘‘(iv) the term ‘eligible entity’— ‘‘(ii) to meet working capital needs, ac-
(I) in subclause (I), by striking ‘‘and’’ at ‘‘(I) means any small business concern quire fixed assets, or refinance existing in-
the end; that— debtedness while recovering from the
(II) in subclause (II), by striking the period ‘‘(aa) except with respect to a covered sea- COVID–19 pandemic.
at the end and inserting ‘‘; and’’; and sonal employer, employs not more than 500 ‘‘(C) MAXIMUM LOAN AMOUNT.—The max-
(III) by adding at the end the following: employees; imum amount of a covered loan made to an
‘‘(III) institutions of the Farm Credit Sys- ‘‘(bb)(AA) except as provided in subitems eligible entity shall be the lesser of—
tem chartered under the Farm Credit Act of (BB), (CC), and (DD), had gross receipts dur- ‘‘(i) $10,000,000; or
1971 (12 U.S.C. 2001 et seq.) with consolidated ing the first or second quarter in 2020 that ‘‘(ii) the amount equal to 200 percent of the
assets of not less than $10,000,000,000 and less are less than 50 percent of the gross receipts average annual receipts of the eligible enti-
than $50,000,000,000.’’; and of the business concern during the same ty.
(ii) in clause (ii)— quarter in 2019; ‘‘(D) LOAN NUMBER LIMITATION.—An eligible
(I) in subclause (II), by striking ‘‘and’’ at ‘‘(BB) if the small business concern was entity may only receive 1 covered loan.
the end; not in business during the first or second ‘‘(E) 90 DAY RULE FOR MAXIMUM LOAN
(II) in subclause (III), by striking the pe- quarter of 2019, but was in business during AMOUNT.—The maximum aggregate loan
riod at the end and inserting ‘‘; and’’; and the third and fourth quarter of 2019, had amount of loans guaranteed under this sub-
(III) by adding at the end the following: gross receipts during the first or second section that are approved for an eligible en-
‘‘(IV) institutions of the Farm Credit Sys- quarter of 2020 that are less than 50 percent tity (including any affiliates) within 90 days
tem chartered under the Farm Credit Act of of the amount of the gross receipts of the of approval of another loan under this sub-
1971 (12 U.S.C. 2001 et seq.) with consolidated small business concern during the third or section for the eligible entity (including any
assets of less than $10,000,000,000.’’. fourth quarter of 2019; affiliates) shall not exceed $10,000,000.
(n) DEFINITION OF SEASONAL EMPLOYER.— ‘‘(CC) if the small business concern was not ‘‘(F) APPLICATION DEADLINE.—An eligible
(1) PPP LOANS.—Section 7(a)(36)(A) of the in business during the first, second, or third entity desiring a covered loan shall submit
Small Business Act (15 U.S.C. 636(a)(36)(A)) is quarter of 2019, but was in business during an application not later than December 31,
amended— the fourth quarter of 2019, had gross receipts 2020.
(A) in clause (xi), by striking ‘‘and’’ at the during the first or second quarter of 2020 that ‘‘(G) FEE WAIVER.—With respect to a cov-
end; are less than 50 percent of the amount of the ered loan—
(B) in clause (xii), by striking the period at gross receipts of the small business concern ‘‘(i) in lieu of the fee otherwise applicable
the end and inserting ‘‘; and’’; and during the fourth quarter of 2019; or under paragraph (23)(A), the Administrator
(C) by adding at the end the following: ‘‘(DD) if the small business concern was shall collect no fee; and
‘‘(xiii) the term ‘seasonal employer’ means not in business during the first or second ‘‘(ii) in lieu of the fee otherwise applicable
an eligible recipient that— quarter of 2020, had gross receipts during any under paragraph (18)(A), the Administrator
‘‘(I) does not operate for more than 7 2-month period during 2020 that are less than shall collect no fee.
months in any calendar year; or 50 percent of the amount of the gross re- ‘‘(H) LOAN TERMS.—
‘‘(II) during the preceding calendar year, ceipts of the small business concern during ‘‘(i) IN GENERAL.—In order to receive a cov-
had gross receipts for any 6 months of that any other 2-month period during 2020; and ered loan, an eligible entity shall not be re-
year that were not more than 33.33 percent of ‘‘(cc)(AA) is a covered seasonal employer quired to show that the eligible entity is un-
the gross receipts of the employer for the seeking a covered loan of not more than able to obtain credit elsewhere.
other 6 months of that year.’’. $2,000,000; or ‘‘(ii) MATURITY AND INTEREST RATE.—A cov-
(2) LOAN FORGIVENESS.—Paragraph (12) of ‘‘(BB) is a small business concern the prin- ered loan shall—
section 1106(a) of the CARES Act (15 U.S.C. cipal place of business of which is in, and not ‘‘(I) have a maturity of 20 years; and
9005(a)), as so redesignated by subsection less than 50 percent of the total gross income ‘‘(II) bear an interest rate of equal to the
(d)(2) of this section, is amended to read as of which is derived from the active conduct sum of—
follows: of the business concern within, a small busi- ‘‘(aa) the Secured Overnight Financing
‘‘(12) the terms ‘payroll costs’ and ‘sea- ness low-income census tract; and Rate in effect for each of the days in the rel-
sonal employer’ have the meanings given ‘‘(II) does not include— evant quarter that interest is charged, as
those terms in section 7(a)(36) of the Small ‘‘(aa) an entity described in paragraph compiled and released by the Federal Re-
Business Act (15 U.S.C. 636(a)(36)).’’. (37)(A)(v)(II); serve Bank of New York; and
‘‘(bb) any entity that received a loan under ‘‘(bb) 300 basis points.
(o) CHANGES TO THE 7(A) LOAN GUARANTY
paragraph (37); or ‘‘(iii) GUARANTEE.—In an agreement to par-
PROGRAM FOR RECOVERY SECTOR BUSINESS ‘‘(cc) any entity that received a loan under ticipate in a covered loan on a deferred basis,
CONCERNS.—Section 7(a) of the Small Busi- paragraph (36) after the date of enactment of the participation by the Administration
ness Act (15 U.S.C. 636(a)), as amended by this paragraph; and shall be 100 percent of the covered loan.
subsection (i) of this section, is amended by ‘‘(v) the term ‘small business low-income ‘‘(iv) SUBSIDY FOR INTEREST PAYMENTS.—
adding at the end the following: census tract’— ‘‘(I) IN GENERAL.—The Administrator shall
‘‘(38) RECOVERY SECTOR LOANS.— ‘‘(I) means— pay the amount of interest that is owed on a
‘‘(A) DEFINITIONS.—In this paragraph— ‘‘(aa) a covered population census tract for covered loan in regular servicing status for
‘‘(i) the term ‘covered loan’ means a loan which the poverty rate is not less than 20 the maturity of the loan such that the inter-
made under this paragraph; percent; or est rate paid by the eligible entity is, at all
‘‘(ii) the term ‘covered population census ‘‘(bb) an area— times, equal to a rate of 1 percent.
tract’ means a population census tract for ‘‘(AA) that is not tracted as a population ‘‘(II) TIMING OF PAYMENT.—The Adminis-
which— census tract; trator shall—
‘‘(I) in the case of a tract that is not lo- ‘‘(BB) for which the poverty rate in the ‘‘(aa) begin making payments under sub-
cated within a metropolitan area, the me- equivalent county division (as defined by the clause (I) not later than 30 days after the
dian income does not exceed 80 percent of the Bureau of the Census) is not less than 20 per- date on which the first such payment is due;
statewide (or, with respect to a possession or cent; and and
territory of the United States, the ‘‘(CC) for which the median income in the ‘‘(bb) make payments without regard to
possession- or territory-wide) median family equivalent county division (as defined by the the payment deferral described in clause (iv).
income; or Bureau of the Census) does not exceed 80 per- ‘‘(III) APPLICATION OF PAYMENT.—Any pay-
‘‘(II) in the case of a tract that is located cent of the statewide (or, with respect to a ment made by the Administrator under sub-
within a metropolitan area, the median fam- possession or territory of the United States, clause (I) shall be applied to the covered loan
ily income does not exceed 80 percent of the the possession- or territory-wide) median in- such that the eligible entity is relieved of
greater of the statewide (or, with respect to come; and the obligation to pay that amount.
a possession or territory of the United ‘‘(II) does not include any area or popu- ‘‘(v) PAYMENT DEFERRAL.—
States, the possession- or territory-wide) me- lation census tract with a median family in- ‘‘(I) IN GENERAL.—No payment of principal
dian family income and the metropolitan come that is not less than 120 percent of the or interest shall be due on a covered loan for
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area median family income; median family income in the United States, the first 2 years of the covered loan.
‘‘(iii) the term ‘covered seasonal employer’ according to the most recent American Com- ‘‘(II) ADDITIONAL DEFERRAL.—After the 2-
means a small business concern that— munities Survey data from the Bureau of the year deferral period under subclause (I), the
‘‘(I) is a seasonal employer, as defined in Census. Administrator may grant not more than an
paragraph (36); and ‘‘(B) LOANS.—Except as otherwise provided additional 2 years of principal deferral to the
‘‘(II) during the preceding calendar year— in this paragraph, the Administrator may eligible entity if the eligible entity is cer-
‘‘(aa) had gross receipts as described in guarantee covered loans made to eligible en- tified by the Administrator and the Sec-
paragraph (36)(A)(xiii)(II); and tities— retary as economically distressed based on
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S4742 CONGRESSIONAL RECORD — SENATE August 4, 2020
publicly available criteria established by the more than 10 percent of the total activities tion 1129(a)(9)(A) of this title and subsection
Administrator. of the organization; (e) of this section, a plan that provides for
‘‘(vi) LIMITATION ON CHANGES IN TERMS.— ‘‘(cc) the destination marketing organiza- payment of a claim of a kind specified in sec-
Notwithstanding any other provision of this tion employs not more than 150 employees; tion 503(b)(10) of this title may be confirmed
subsection, for a covered loan, the Adminis- and under subsection (b) of this section if the
trator shall not approve any increase in loan ‘‘(dd) the destination marketing organiza- plan proposes to make payments on account
amount or change in guaranty percentage, tion— of such claim when due under the terms of
interest rate, interest accrual method, or ‘‘(AA) is described in section 501(c) of the the loan giving rise to such claim.’’.
maturity, except for such changes as may be Internal Revenue Code and is exempt from (4) CONFIRMATION OF PLAN FOR FAMILY
necessary for prepayment and the deferment taxation under section 501(a) of such Code; or FARMERS AND FISHERMEN.—Section 1225 of
of payment under clause (v). ‘‘(BB) is a quasi-governmental entity or is title 11, United States Code, is amended by
‘‘(I) PROHIBITION ON USE OF PROCEEDS FOR a political subdivision of a State or local adding at the end the following:
DISASTER LOANS.—An eligible entity shall not government, including any instrumentality ‘‘(d) Notwithstanding section 1222(a)(2) of
use the proceeds of a covered loan to refi- of those entities.’’. this title and subsection (b)(1) of this sec-
nance any loan made under subsection (b). (q) PROHIBITION ON USE OF LOAN PROCEEDS tion, a plan that provides for payment of a
‘‘(J) SECONDARY MARKET.—In order to in- FOR LOBBYING ACTIVITIES.—Section claim of a kind specified in section 503(b)(10)
crease the liquidity of the secondary market 7(a)(36)(F) of the Small Business Act (15 of this title may be confirmed if the plan
for covered loans, the Administrator shall, U.S.C. 636(a)(36)(F)) is amended by adding at proposes to make payments on account of
not later than 60 days after the date of en- the end the following: such claim when due under the terms of the
actment of this paragraph, substantially re- ‘‘(vi) PROHIBITION.—None of the proceeds of loan giving rise to such claim.’’.
duce barriers to the sale of covered loans on a covered loan may be used for— (5) CONFIRMATION OF PLAN FOR INDIVID-
the secondary market. ‘‘(I) lobbying activities, as defined in sec- UALS.—Section 1325 of title 11, United States
‘‘(K) LENDER ELIGIBILITY.—In order to in- tion 3 of the Lobbying Disclosure Act of 1995 Code, is amended by adding at the end the
crease access to and the equitable distribu- (2 U.S.C. 1602); following:
tion of covered loans, the Administrator ‘‘(II) lobbying expenditures related to a ‘‘(d) Notwithstanding section 1322(a)(2) of
shall establish a process by which a lender State or local election; or this title and subsection (b)(1) of this sec-
approved to make loans under paragraph (36) ‘‘(III) expenditures designed to influence tion, a plan that provides for payment of a
may make covered loans. claim of a kind specified in section 503(b)(10)
the enactment of legislation, appropriations,
‘‘(L) REIMBURSEMENT FOR LOAN PROCESSING of this title may be confirmed if the plan
regulation, administrative action, or Execu-
AND SERVICING.—The Administrator shall re- proposes to make payments on account of
tive order proposed or pending before Con-
imburse a lender authorized to make a cov- such claim when due under the terms of the
gress or any State government, State legis-
ered loan in an amount that is— loan giving rise to such claim.’’.
lature, or local legislature or legislative
‘‘(i) 3 percent of the principal amount of (6) EFFECTIVE DATE; SUNSET.—
body.’’.
the financing of the covered loan up to (r) EFFECTIVE DATE; APPLICABILITY.—The (A) EFFECTIVE DATE.—The amendments
$350,000; and amendments made to paragraph (36) of sec- made by paragraphs (1) through (5) shall—
‘‘(ii) 1 percent of the principal amount of tion 7(a) of the Small Business Act (15 U.S.C. (i) take effect on the date on which the Ad-
the financing of the covered loan above 636(a)) and title I of the CARES Act (Public ministrator submits to the Director of the
$350,000, if applicable. Law 116–136) under this section shall be effec- Executive Office for United States Trustees a
‘‘(M) STANDARD OPERATING PROCEDURE.— tive as if included in the CARES Act and written determination that, subject to satis-
The Administrator shall, to the maximum shall apply to any loan made pursuant to fying any other eligibility requirements, any
extent practicable, allow a lender approved section 7(a)(36) of the Small Business Act (15 debtor in possession or trustee that is au-
to make covered loans to use existing pro- U.S.C. 636(a)(36)). thorized to operate the business of the debt-
gram guidance and standard operating proce- (s) BANKRUPTCY PROVISIONS.— or under section 1183, 1184, 1203, 1204, or 1304
dures for loans made under this subsection.’’. (1) IN GENERAL.—Section 364 of title 11, of title 11, United States Code, would be eli-
(p) ELIGIBILITY OF 501(C)(6) ORGANIZATIONS United States Code, is amended by adding at gible for a loan under paragraphs (36) and (37)
FOR LOANS UNDER THE PAYCHECK PROTECTION the end the following: of section 7(a) of the Small Business Act (15
PROGRAM.—Section 7(a)(36)(D) of the Small ‘‘(g)(1) The court, after notice and a hear- U.S.C. 636(a)); and
Business Act (15 U.S.C. 636(a)(36)(D)) is ing, may authorize a debtor in possession or (ii) apply to any case pending on or com-
amended— a trustee that is authorized to operate the menced on or after the date described in
(1) in clause (v), by inserting ‘‘or whether business of the debtor under section 1183, clause (i).
an organization described in clause (vii) em- 1184, 1203, 1204, or 1304 of this title to obtain (B) SUNSET.—
ploys not more than 150 employees,’’ after a loan under paragraph (36) or (37) of section (i) IN GENERAL.—If the amendments made
‘‘clause (i)(I),’’; 7(a) of the Small Business Act (15 U.S.C. by this subsection take effect under subpara-
(2) in clause (vi), by inserting ‘‘, an organi- 636(a)), and such loan shall be treated as a graph (A), effective on the date that is 2
zation described in clause (vii),’’ after ‘‘non- debt to the extent the loan is not forgiven in years after the date of enactment of this
profit organization’’; and accordance with section 1106 of the CARES Act—
(3) by adding at the end the following: Act (15 U.S.C. 9005) or subparagraph (H) of (I) section 364 of title 11, United States
‘‘(vii) ELIGIBILITY FOR CERTAIN 501(C)(6) OR- such paragraph (37), as applicable, with pri- Code, is amended by striking subsection (g);
GANIZATIONS.— ority equal to a claim of the kind specified (II) section 503(b) of title 11, United States
‘‘(I) IN GENERAL.—Except as provided in in subsection (c)(1) of this section. Code, is amended—
subclause (II), any organization that is de- ‘‘(2) The trustee may incur debt described (aa) in paragraph (8)(B), by adding ‘‘and’’
scribed in section 501(c)(6) of the Internal in paragraph (1) notwithstanding any provi- at the end;
Revenue Code and that is exempt from tax- sion in a contract, prior order authorizing (bb) in paragraph (9), by striking ‘‘; and’’ at
ation under section 501(a) of such Code (ex- the trustee to incur debt under this section, the end and inserting a period; and
cluding professional sports leagues and orga- prior order authorizing the trustee to use (cc) by striking paragraph (10);
nizations with the purpose of promoting or cash collateral under section 363, or applica- (III) section 1191 of title 11, United States
participating in a political campaign or ble law that prohibits the debtor from incur- Code, is amended by striking subsection (f);
other activity) shall be eligible to receive a ring additional debt. (IV) section 1225 of title 11, United States
covered loan if— ‘‘(3) The court shall hold a hearing within Code, is amended by striking subsection (d);
‘‘(aa) the organization does not receive 7 days after the filing and service of the mo- and
more than 10 percent of its receipts from lob- tion to obtain a loan described in paragraph (V) section 1325 of title 11, United States
bying activities; (1).’’. Code, is amended by striking subsection (d).
‘‘(bb) the lobbying activities of the organi- (2) ALLOWANCE OF ADMINISTRATIVE EX- (ii) APPLICABILITY.—Notwithstanding the
zation do not comprise more than 10 percent PENSES.—Section 503(b) of title 11, United amendments made by clause (i) of this sub-
of the total activities of the organization; States Code, is amended— paragraph, if the amendments made by para-
and (A) in paragraph (8)(B), by striking ‘‘and’’ graphs (1), (2), (3), (4), and (5) take effect
‘‘(cc) the organization employs not more at the end; under subparagraph (A) of this paragraph,
than 150 employees. (B) in paragraph (9), by striking the period such amendments shall apply to any case
‘‘(II) DESTINATION MARKETING ORGANIZA- at the end and inserting ‘‘; and’’; and under title 11, United States Code, com-
TIONS.—Notwithstanding subclause (I), dur- (C) by adding at the end the following: menced before the date that is 2 years after
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ing the covered period, any destination mar- ‘‘(10) any debt incurred under section the date of enactment of this Act.
keting organization shall be eligible to re- 364(g)(1) of this title.’’. (t) OVERSIGHT.—
ceive a covered loan if— (3) CONFIRMATION OF PLAN FOR REORGANIZA- (1) COMPLIANCE WITH OVERSIGHT REQUIRE-
‘‘(aa) the destination marketing organiza- TION.—Section 1191 of title 11, United States MENTS.—
tion does not receive more than 10 percent of Code, is amended by adding at the end the (A) IN GENERAL.—Except as provided in
its receipts from lobbying activities; following: subparagraph (B), on and after the date of
‘‘(bb) the lobbying activities of the destina- ‘‘(f) SPECIAL PROVISION RELATED TO enactment of this Act, the Administrator
tion marketing organization do not comprise COVID–19 PANDEMIC.—Notwithstanding sec- shall comply with any data or information
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August 4, 2020 CONGRESSIONAL RECORD — SENATE S4743
requests or inquiries made by the Comp- proved, disclose to the Administrator wheth- ‘‘(b) ESTABLISHMENT.—
troller General of the United States not later er the entity is a covered entity. ‘‘(1) FACILITY.—The Administrator shall es-
than 30 days (or such later date as the Comp- (3) APPLICABILITY.—The requirement under tablish and carry out a facility to improve
troller General may specify) after receiving paragraph (2)— the recovery of eligible small business con-
the request or inquiry. (A) shall apply with respect to any trans- cerns from the COVID–19 pandemic, increase
(B) EXCEPTION.—If the Administrator is un- action made under paragraph (36), (37), or (38) resiliency in the manufacturing supply chain
able to comply with a request or inquiry de- of section 7(a) of the Small Business Act (15 of eligible small business concerns, and in-
scribed in subparagraph (A) within the 30- U.S.C. 636(a)), as added and amended by this crease the economic development of small
day period or, if applicable, later period de- section, on or after the date of enactment of business low-income census tracts by pro-
scribed in that clause, the Administrator this Act; and viding financial assistance to participating
shall, during that 30-day (or later) period, (B) shall not apply with respect to— investment companies that facilitate equity
submit to the Committee on Small Business (i) any transaction described in subpara- financings to eligible small business con-
and Entrepreneurship of the Senate and the graph (A) that was made before the date of cerns in accordance with this section.
Committee on Small Business of the House enactment of this Act; or ‘‘(2) ADMINISTRATION OF FACILITY.—The fa-
of Representatives a notification that in- (ii) forgiveness under section 1106 of the cility shall be administered by the Adminis-
cludes a detailed justification for the inabil- CARES Act (15 U.S.C. 9005) or any other pro- trator acting through the Associate Admin-
ity of the Administrator to comply with the vision of law of any loan associated with any istrator described in section 201.
request or inquiry. transaction described in subparagraph (A) ‘‘(c) APPLICATIONS.—
(2) TESTIMONY.—Not later than the date that was made before the date of enactment ‘‘(1) IN GENERAL.—Any small business in-
that is 30 days after the date of enactment of of this Act. vestment company may submit to the Ad-
this Act, and every quarter thereafter until (v) SMALL BUSINESS INVESTMENT COMPANY
ministrator an application to participate in
the date that is 2 years after the date of en- PROGRAM.—
the facility.
actment of this Act, the Administrator and (1) IN GENERAL.—Part A of title III of the
‘‘(2) REQUIREMENTS FOR APPLICATION.—An
the Secretary of the Treasury shall testify Small Business Investment Act of 1958 (15
application to participate in the facility
before the Committee on Small Business and U.S.C. 681 et seq.) is amended—
shall include the following:
Entrepreneurship of the Senate and the Com- (A) in section 302(a) (15 U.S.C. 682(a))—
‘‘(A) A business plan describing how the
mittee on Small Business of the House of (i) in paragraph (1)—
(I) in subparagraph (A), by striking ‘‘or’’ at applicant intends to make successful equity
Representatives regarding implementation investments in eligible small business con-
the end;
of this section and the amendments made by cerns.
(II) in subparagraph (B), by striking the pe-
this section. ‘‘(B) Information regarding the relevant in-
riod at the end and inserting ‘‘; or’’; and
(u) CONFLICTS OF INTEREST.— (III) by adding at the end the following: vestment qualifications and backgrounds of
(1) DEFINITIONS.—In this subsection: ‘‘(C) $20,000,000, adjusted every 5 years for the individuals responsible for the manage-
(A) CONTROLLING INTEREST.—The term inflation, with respect to each licensee au- ment of the applicant.
‘‘controlling interest’’ means owning, con- thorized or seeking authority to sell bonds ‘‘(C) A description of the extent to which
trolling, or holding not less than 20 percent, to Administration as a participating invest- the applicant meets the selection criteria
by vote or value, of the outstanding amount ment company under section 321.’’; and under subsection (d)(2).
of any class of equity interest in an entity. (B) by adding at the end the following: ‘‘(3) EXCEPTIONS TO APPLICATION FOR NEW
(B) COVERED ENTITY.— ‘‘SEC. 321. SMALL BUSINESS AND DOMESTIC PRO- LICENSEES.—Not later than 90 days after the
(i) DEFINITION.—The term ‘‘covered entity’’ DUCTION RECOVERY INVESTMENT date of enactment of this section, the Ad-
means an entity in which a covered indi- FACILITY. ministrator shall reduce requirements for
vidual directly or indirectly holds a control- ‘‘(a) DEFINITIONS.—In this section: applicants applying to operate as a partici-
ling interest. ‘‘(1) ELIGIBLE SMALL BUSINESS CONCERN.— pating investment company under this sec-
(ii) TREATMENT OF SECURITIES.—For the The term ‘eligible small business concern’— tion in order to encourage the participation
purpose of determining whether an entity is ‘‘(A) means a small business concern that— of new small business investment companies
a covered entity, the securities owned, con- ‘‘(i) meets the revenue reduction require- in the facility under this section, which may
trolled, or held by 2 or more individuals who ments established by paragraph include the requirements established under
are related as described in subparagraph (37)(A)(v)(I)(cc) of section 7(a) of the Small part 107 of title 13, Code of Federal Regula-
(C)(ii) shall be aggregated. Business Act (15 U.S.C. 636(a)); tions, or any successor regulation, relating
(C) COVERED INDIVIDUAL.—The term ‘‘cov- ‘‘(ii) is a manufacturing business that is to—
ered individual’’ means— assigned a North American Industry Classi- ‘‘(A) the approval of initial management
(i) the President, the Vice President, the fication System code beginning with 31, 32, expenses;
head of an Executive department, or a Mem- or 33 at the time at which the small business ‘‘(B) the management ownership diversity
ber of Congress; and concern receives an investment from a par- requirement;
(ii) the spouse, child, son-in-law, or daugh- ticipating investment company under the fa- ‘‘(C) the disclosure of general compen-
ter-in-law, as determined under applicable cility; or satory practices and fee structures; or
common law, of an individual described in ‘‘(iii) is located in a small business low-in- ‘‘(D) any other requirement that the Ad-
clause (i). come census tract; and ministrator determines to be an obstacle to
(D) EXECUTIVE DEPARTMENT.—The term ‘‘(B) does not include an entity described achieving the purposes described in this
‘‘Executive department’’ has the meaning in paragraph (37)(A)(v)(II) of such section paragraph.
given the term in section 101 of title 5, 7(a). ‘‘(d) SELECTION OF PARTICIPATING INVEST-
United States Code. ‘‘(2) FACILITY.—The term ‘facility’ means MENT COMPANIES.—
(E) MEMBER OF CONGRESS.—The term the facility established under subsection (b). ‘‘(1) DETERMINATION.—
‘‘Member of Congress’’ means a Member of ‘‘(3) FUND.—The term ‘Fund’ means the ‘‘(A) IN GENERAL.—Except as provided in
the Senate or House of Representatives, a fund established under subsection (h). paragraph (3), not later than 60 days after
Delegate to the House of Representatives, ‘‘(4) PARTICIPATING INVESTMENT COMPANY.— the date on which the Administrator re-
and the Resident Commissioner from Puerto The term ‘participating investment com- ceives an application under subsection (c),
Rico. pany’ means a small business investment the Administrator shall—
(F) EQUITY INTEREST.—The term ‘‘equity company approved under subsection (d) to ‘‘(i) make a final determination to approve
interest’’ means— participate in the facility or disapprove such applicant to participate
(i) a share in an entity, without regard to ‘‘(5) PROTÉGÉ INVESTMENT COMPANY.—The in the facility; and
whether the share is— term ‘protégé investment company’ means a ‘‘(ii) transmit the determination to the ap-
(I) transferable; or small business investment company that— plicant in writing.
(II) classified as stock or anything similar; ‘‘(A) is majority managed by new, inexperi- ‘‘(B) COMMITMENT AMOUNT.—Except as pro-
(ii) a capital or profit interest in a limited enced, or otherwise underrepresented fund vided in paragraph (3), at the time of ap-
liability company or partnership; or managers; and proval of an applicant, the Administrator
(iii) a warrant or right, other than a right ‘‘(B) elects and is selected by the Adminis- shall make a determination of the amount of
to convert, to purchase, sell, or subscribe to tration to participate in the pathway- the commitment that may be awarded to the
a share or interest described in clause (i) or protégé program under subsection (g). applicant under this section.
(ii), respectively. ‘‘(6) SMALL BUSINESS CONCERN.—The term ‘‘(2) SELECTION CRITERIA.—In making a de-
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(2) REQUIREMENT.—The principal executive ‘small business concern’ has the meaning termination under paragraph (1), the Admin-
officer and the principal financial officer, or given the term in section 3(a) of the Small istrator shall consider—
individuals performing similar functions, of Business Act (15 U.S.C. 632(a)). ‘‘(A) the probability that the investment
an entity seeking to enter a transaction ‘‘(7) SMALL BUSINESS LOW-INCOME CENSUS strategy of the applicant will successfully
made under paragraph (36), (37), or (38) of sec- TRACT.—The term ‘small business low-in- repay any financial assistance provided by
tion 7(a) of the Small Business Act (15 U.S.C. come census tract’ has the meaning given the Administration, including the prob-
636(a)), as added and amended by this sec- the term in section 7(a)(38)(A) of the Small ability of a return significantly in excess
tion, shall, before that transaction is ap- Business Act. thereof;
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S4744 CONGRESSIONAL RECORD — SENATE August 4, 2020
‘‘(B) the probability that the investments ‘‘(I) shall be determined at the time of ap- ‘‘(A) DISTRIBUTIONS.—As a condition of re-
made by the applicant will— proval under subsection (d); and ceiving a commitment under the facility, a
‘‘(i) provide capital to eligible small busi- ‘‘(II) without the approval of the Adminis- participating investment company shall
ness concerns; or tration, shall not be revised, including to re- make all distributions to the Administrator
‘‘(ii) create or preserve jobs in the United flect subsequent distributions of profits, re- in the same form and in a manner as are
States; turns of capital, or repayments of bonds, or made to investors, or otherwise at a time
‘‘(C) the probability that the applicant will otherwise. and in a manner consistent with regulations
meet the objectives in the business plan of ‘‘(C) PROFIT SHARING PERFORMANCE COM- or policies of the Administration.
the applicant, including the financial goals, PENSATION.— ‘‘(B) ALLOCATIONS.—A participating invest-
and, if applicable, the pathway-protégé pro- ‘‘(i) RECEIPT BY ADMINISTRATION.—The Ad- ment company shall make allocations of in-
gram in accordance with subsection (g); and ministration shall receive a share of profits come, gain, loss, deduction, and credit to the
‘‘(D) the probability that the applicant will of not more than 2 percent, which shall be Administrator with respect to any out-
assist eligible small business concerns in deposited into the Fund and be available to standing bonds as if the Administrator were
achieving profitability. make commitments under this subsection. an investor.
‘‘(3) APPROVAL OF PARTICIPATING INVEST- ‘‘(ii) RECEIPT BY MANAGERS.—The managers ‘‘(2) FEES.—The Administrator may not
MENT COMPANIES.— of the participating investment company charge fees for participating investment
‘‘(A) PROVISIONAL APPROVAL.— may receive a maximum profit sharing per- companies other than examination fees that
‘‘(i) IN GENERAL.—Notwithstanding para- formance compensation of 25 percent minus are consistent with the license of the partici-
graph (1), with respect to an application sub- the share of profits paid to the Administra- pating investment company.
mitted by an applicant to operate as a par- tion under clause (i). ‘‘(3) BIFURCATION.—Losses on bonds issued
ticipating investment company under this ‘‘(D) PROHIBITION ON DISTRIBUTIONS.—No by participating investment companies shall
section, the Administrator may provide pro- distributions on capital, including profit dis- not be offset by fees or any other charges on
visional approval for the applicant in lieu of tributions, shall be made by the partici- debenture small business investment compa-
a final determination of approval and deter- pating investment company to the investors nies.
mination of the amount of the commitment or managers of the participating investment ‘‘(g) PROTÉGÉ PROGRAM.—The Adminis-
under that paragraph. company until the Administration has re- trator shall establish a pathway-protégé pro-
‘‘(ii) PURPOSE.—The purpose of a provi- ceived payment of all accrued interest on the gram in which a protégé investment com-
sional approval under clause (i) is to— bond committed under this section. pany may receive technical assistance and
‘‘(I) encourage applications from invest- ‘‘(E) REPAYMENT OF PRINCIPAL.—Except as program support from a participating invest-
ment companies with an investment man- described in subparagraph (F), repayments of ment company on a voluntary basis and
date from the committed private market principal of the bond of a participating in- without penalty for non-participation.
capital of the investment company that does vestment company shall be— ‘‘(h) LOSS LIMITING FUND.—
not conform to the requirements described in ‘‘(i) made at the same time as returns of ‘‘(1) IN GENERAL.—There is established in
this section at the time of application; private capital; and the Treasury a fund for making commit-
‘‘(II) allow the applicant to more effec- ‘‘(ii) in amounts equal to the pro rata ments and purchasing bonds with equity fea-
tively raise capital commitments in the pri- share of the Administration of the total tures under the facility and receiving capital
vate markets by referencing the intent of amount being repaid or returned at such returned by participating investment compa-
the Administrator to award the applicant a time. nies.
commitment; and ‘‘(F) LIQUIDATION OR DEFAULT.—Upon any ‘‘(2) USE OF FUNDS.—Amounts appropriated
‘‘(III) allow the applicant to more precisely liquidation event or default, as defined by to the Fund or deposited in the Fund under
request the desired amount of commitment the Administration, any unpaid principal or paragraph (3) shall be available to the Ad-
pending the securing of capital from private accrued interest on the bond shall— ministrator, without further appropriation,
market investors. ‘‘(i) have a priority over all equity of the for making commitments and purchasing
‘‘(iii) LIMIT ON PERIOD OF THE TIME.—The participating investment company; and bonds under the facility and expenses and
period between a provisional approval under ‘‘(ii) be paid before any return of equity or payments, excluding administrative ex-
clause (i) and the final determination of ap- any other distributions to the investors or penses, relating to the operations of the Ad-
proval under paragraph (1) shall not exceed managers of the participating investment ministrator under the facility.
12 months. company. ‘‘(3) DEPOSITING OF AMOUNTS.—
‘‘(e) COMMITMENTS AND SBIC BONDS.— ‘‘(3) AMOUNT OF COMMITMENTS AND PUR- ‘‘(A) IN GENERAL.—All amounts received by
‘‘(1) IN GENERAL.—The Administrator may, CHASES.— the Administrator from a participating in-
out of amounts available in the Fund, pur- ‘‘(A) MAXIMUM AMOUNT.—The maximum vestment company relating to the facility,
chase or commit to purchase from a partici- amount of outstanding bonds and commit- including any moneys, property, or assets
pating investment company 1 or more accru- ments to purchase bonds for any partici- derived by the Administrator from oper-
ing bonds that include equity features as de- pating investment company under the facil- ations in connection with the facility, shall
scribed in this subsection. ity shall be the lesser of— be deposited in the Fund.
‘‘(2) BOND TERMS.—A bond purchased by the ‘‘(i) twice the amount of the regulatory ‘‘(B) PERIOD OF AVAILABILITY.—Amounts
Administrator from a participating invest- capital of the participating investment com- deposited under subparagraph (A) shall re-
ment company under this subsection shall pany; or main available until expended.
have the following terms and conditions: ‘‘(ii) $200,000,000. ‘‘(i) APPLICATION OF OTHER SECTIONS.—To
‘‘(A) TERM AND INTEREST.— ‘‘(4) COMMITMENT PROCESS.—Commitments the extent not inconsistent with require-
‘‘(i) IN GENERAL.—The bond shall be issued by the Administration to purchase bonds ments under this section, the Administrator
for a term of not less than 15 years and shall under the facility shall remain available to may apply sections 309, 311, 312, 313, and 314
bear interest at a rate determined by the Ad- be sold by a participating investment com- to activities under this section and an offi-
ministrator of not more than 2 percent. pany until the end of the fourth fiscal year cer, director, employee, agent, or other par-
‘‘(ii) ACCRUAL OF INTEREST.—Interest on following the year in which the commitment ticipant in a participating investment com-
the bond shall accrue and shall be payable in is made, subject to review and approval by pany shall be subject to the requirements
accordance with subparagraph (D). the Administration based on regulatory com- under such sections.
‘‘(iii) PREPAYMENT.—The bond shall be pliance, financial status, change in manage- ‘‘(j) AUTHORIZATION OF APPROPRIATIONS.—
prepayable without penalty after the end of ment, deviation from business plan, and such There is authorized to be appropriated for
the 1-year period beginning on the date on other limitations as may be determined by the first fiscal year beginning after the date
which the bond was purchased. the Administration by regulation or other- of enactment of this part $10,000,000,000 to
‘‘(B) PROFITS.— wise. carry out the facility. Amounts appropriated
‘‘(i) IN GENERAL.—The Administration shall ‘‘(5) COMMITMENT CONDITIONS.— pursuant to this subsection shall remain
be entitled to receive a share of the profits ‘‘(A) IN GENERAL.—As a condition of receiv- available until the end of the second fiscal
net of any profit sharing performance com- ing a commitment under the facility, not year beginning after the date of enactment
pensation of the participating investment less than 50 percent of amounts invested by of this section.’’.
company equal to the quotient obtained by the participating investment company shall (2) APPROVAL OF BANK-OWNED, NON-LEVER-
dividing— be invested in eligible small business con- AGED APPLICANTS.—Section 301(c)(2) of the
‘‘(I) one-third of the commitment that the cerns. Small Business Investment Act of 1958 (15
participating investment company is ap- ‘‘(B) EXAMINATIONS.—In addition to the U.S.C. 681(c)(2)) is amended—
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proved for under subsection (d); by matters set forth in section 310(c), the Ad- (A) in subparagraph (B), in the matter pre-
‘‘(II) the commitment approved under sub- ministration shall examine each partici- ceding clause (i), by striking ‘‘Within’’ and
section (d) plus the regulatory capital of the pating investment company in such detail so inserting ‘‘Except as provided in subpara-
participating investment company at the as to determine whether the participating graph (C), within’’; and
time of approval under that subsection. investment company has complied with the (B) by adding at the end the following:
‘‘(ii) DETERMINATION OF PERCENTAGE.—The requirements under this subsection. ‘‘(C) EXCEPTION FOR BANK-OWNED, NON-LE-
share to which the Administration is enti- ‘‘(f) DISTRIBUTIONS AND FEES.— VERAGED APPLICANTS.—Notwithstanding sub-
tled under clause (i)— ‘‘(1) DISTRIBUTION REQUIREMENTS.— paragraph (B), not later than 45 days after
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August 4, 2020 CONGRESSIONAL RECORD — SENATE S4745
the date on which the Administrator re- Sector Loans’’ for the cost of guaranteed ‘‘(XI) covered worker protection expendi-
ceives a completed application submitted by loans as authorized under paragraph (38) of tures, as defined in such section 1106(a).’’.
a bank-owned, non-leveraged applicant in ac- section 7(a) of the Small Business Act (15 (2) LOAN FORGIVENESS.—Section 1106 of the
cordance with this subsection and in accord- U.S.C. 636(a)), as added by this section; and CARES Act (15 U.S.C. 9005) is amended—
ance with such requirements as the Adminis- (III) $10,000,000 under the heading under the (A) in subsection (a)—
trator may prescribe by regulation, the Ad- heading ‘‘Department of Commerce—Minor- (i) by redesignating paragraphs (6), (7), and
ministrator shall— ity Business Development Agency’’ for mi- (8) as paragraphs (10), (11), and (12), respec-
‘‘(i) review the application in its entirety; nority business centers of the Minority Busi- tively;
and ness Development Agency to provide tech- (ii) by redesignating paragraph (5) as para-
‘‘(ii)(I) approve the application and issue a nical assistance to small business concerns; graph (8);
license for such operation to the applicant if and (iii) by redesignating paragraph (4) as para-
the requirements of this section are satis- (ii) to remain available until September 30, graph (6);
fied; or 2023, $10,000,000,000 under the heading ‘‘Small (iv) by redesignating paragraph (3) as para-
‘‘(II) disapprove the application and notify Business Administration—SBIC’’ to carry graph (4);
the applicant in writing of the disapproval.’’. out part D of title III of the Small Business (v) by inserting after paragraph (2) the fol-
(3) ELECTRONIC SUBMISSIONS.—Part A of Investment Act of 1958 (15 U.S.C. 681 et seq.), lowing:
title III of the Small Business Investment as added by this section. ‘‘(3) the term ‘covered operations expendi-
Act of 1958 (15 U.S.C. 681 et seq.), as amended (C) AVAILABILITY OF AMOUNTS APPRO- ture’ means a payment for any business soft-
by paragraph (1) of this subsection, is amend- PRIATED FOR THE OFFICE OF INSPECTOR GEN-
ware or cloud computing service that facili-
ed by adding at the end the following: ERAL.—Section 1107(a)(3) of the CARES Act
tates business operations, product or service
‘‘SEC. 322. ELECTRONIC SUBMISSIONS. (15 U.S.C. 9006(a)(3)) is amended by striking
delivery, the processing, payment, or track-
‘‘The Administration shall permit any doc- ‘‘September 20, 2024’’ and inserting ‘‘ex-
ing of payroll expenses, human resources,
ument submitted under this title, or pursu- pended’’.
(x) EMERGENCY DESIGNATION.— sales and billing functions, or accounting or
ant to a regulation carrying out this title, to tracking of supplies, inventory, records and
be submitted electronically, including by (1) IN GENERAL.—The amounts provided
under this section are designated as an emer- expenses;’’;
permitting an electronic signature for any (vi) by inserting after paragraph (4), as so
signature that is required on such a docu- gency requirement pursuant to section 4(g)
of the Statutory Pay-As-You-Go Act of 2010 redesignated, the following:
ment.’’. ‘‘(5) the term ‘covered property damage
(w) COMMITMENT AUTHORITY AND APPRO- (2 U.S.C. 933(g)).
(2) DESIGNATION IN SENATE.—In the Senate, cost’ means a cost related to property dam-
PRIATIONS.— age and vandalism or looting due to public
(1) COMMITMENT AUTHORITY.— this section is designated as an emergency
requirement pursuant to section 4112(a) of H. disturbances that occurred during 2020 that
(A) CARES ACT AMENDMENTS.—Section was not covered by insurance or other com-
1102(b) of the CARES Act (Public Law 116– Con. Res. 71 (115th Congress), the concurrent
resolution on the budget for fiscal year 2018. pensation;’’;
136) is amended— (vii) by inserting after paragraph (6), as so
(i) in paragraph (1)— redesignated, the following:
SA 2506. Mr. RUBIO (for himself and
(I) in the paragraph heading, by inserting ‘‘(5) the term ‘covered supplier cost’ means
‘‘AND SECOND DRAW’’ after ‘‘PPP’’; Ms. COLLINS) submitted an amendment
intended to be proposed by him to the an expenditure made by an entity to a sup-
(II) by striking ‘‘August 8, 2020’’ and insert- plier of goods pursuant to a contract in ef-
ing ‘‘December 31, 2020’’; bill S. 178, to condemn gross human
fect before February 15, 2020 for the supply of
(III) by striking ‘‘paragraph (36)’’ and in- rights violations of ethnic Turkic Mus-
goods that are essential to the operations of
serting ‘‘paragraphs (36) and (37)’’; and lims in Xinjiang, and calling for an end the entity at the time at which the expendi-
(IV) by striking ‘‘$659,000,000,000’’ and in- to arbitrary detention, torture, and ture is made;’’;
serting ‘‘$748,990,000,000’’; and harassment of these communities in- (viii) by inserting after paragraph (8), as so
(ii) by amending paragraph (2) to read as side and outside China; which was or- redesignated, the following:
follows: dered to lie on the table; as follows: ‘‘(9) the term ‘covered worker protection
‘‘(B) OTHER 7(A) LOANS.—During fiscal year
At the appropriate place, insert the fol- expenditure’—
2020, the amount authorized for commit-
lowing: ‘‘(A) means an operating or a capital ex-
ments for section 7(a) of the Small Business
SEC. ll. SMALL BUSINESS RECOVERY. penditure that is required to facilitate the
Act (15 U.S.C. 636(a)) under the heading
(a) SHORT TITLE.—This section may be adaptation of the business activities of an
‘Small Business Administration—Business
cited as the ‘‘Continuing Small Business Re- entity to comply with requirements estab-
Loans Program Account’ in the Financial
covery and Paycheck Protection Program lished or guidance issued by the Department
Services and General Government Appropria-
Act’’. of Health and Human Services, the Centers
tions Act, 2020 (division C of Public Law 116– (b) DEFINITIONS.—In this section:
193) shall apply with respect to any commit- for Disease Control, or the Occupational
(1) ADMINISTRATION; ADMINISTRATOR.—The Safety and Health Administration during the
ments under such section 7(a) other than terms ‘‘Administration’’ and ‘‘Adminis-
under paragraphs (36), (37), and (38) of such period beginning on March 1, 2020 and ending
trator’’ mean the Small Business Adminis- December 31, 2020 related to the maintenance
section 7(a).’’. tration and the Administrator thereof, re-
(B) RECOVERY SECTOR LOANS.—During the of standards for sanitation, social
spectively. distancing, or any other worker or customer
period beginning on the date of enactment of (2) SMALL BUSINESS CONCERN.—The term
this Act and ending on December 31, 2020, the safety requirement related to COVID–19;
‘‘small business concern’’ has the meaning ‘‘(B) may include—
amount authorized for commitments under given the term in section 3 of the Small
paragraph (38) of section 7(a) of the Small ‘‘(i) the purchase, maintenance, or renova-
Business Act (15 U.S.C. 632). tion of assets that create or expand—
Business Act (15 U.S.C. 636(a)), as added by (c) EMERGENCY RULEMAKING AUTHORITY.—
this section, shall be $100,000,000,000. ‘‘(I) a drive-through window facility;
Not later than 30 days after the date of en-
(2) DIRECT APPROPRIATIONS.— ‘‘(II) an indoor, outdoor, or combined air or
actment of this Act, the Administrator shall
(A) RESCISSION.—With respect to unobli- air pressure ventilation or filtration system;
issue regulations to carry out this section
gated balances under the heading ‘‘ ‘Small and the amendments made by this section ‘‘(III) a physical barrier such as a sneeze
Business Administration—Business Loans without regard to the notice requirements guard;
Program Account, CARES Act’’ as of the day under section 553(b) of title 5, United States ‘‘(IV) an indoor, outdoor, or combined com-
before the date of enactment of this Act, Code. mercial real property;
$100,000,000,000 shall be rescinded and depos- (d) ADDITIONAL ELIGIBLE EXPENSES.— ‘‘(V) an onsite or offsite health screening
ited into the general fund of the Treasury. (1) ALLOWABLE USE OF PPP LOAN.—Section capability; or
(B) NEW DIRECT APPROPRIATIONS.—There is 7(a)(36)(F)(i) of the Small Business Act (15 ‘‘(VI) other assets relating to the compli-
appropriated, out of amounts in the Treas- U.S.C. 636(a)(36)(F)(i)) is amended— ance with the requirements or guidance de-
ury not otherwise appropriated, for the fiscal (A) in subclause (VI), by striking ‘‘and’’ at scribed in subparagraph (A), as determined
year ending September 30, 2020— the end; by the Administrator in consultation with
(i) to remain available until September 30, (B) in subclause (VII), by striking the pe- the Secretary of Health and Human Services
2021, for additional amounts— riod at the end and inserting a semicolon; and the Secretary of Labor; and
(I) $189,990,000,000 under the heading and ‘‘(ii) the purchase of—
SSpencer on DSK126QN23PROD with SENATE
‘‘Small Business Administration—Business (C) by adding at the end the following: ‘‘(I) covered materials described in section
Loans Program Account, CARES Act’’ for ‘‘(VIII) covered operations expenditures, as 328.103(a) of title 44, Code of Federal Regula-
the cost of guaranteed loans as authorized defined in section 1106(a) of the CARES Act tions, or any successor regulation;
under paragraph (36) and (37) of section 7(a) (15 U.S.C. 9005(a)); ‘‘(II) particulate filtering facepiece res-
of the Small Business Act (15 U.S.C. 636(a)), ‘‘(IX) covered property damage costs, as pirators approved by the National Institute
as amended and added by this section; defined in such section 1106(a); for Occupational Safety and Health, includ-
(II) $57,700,000,000 under the heading ‘‘(X) covered supplier costs, as defined in ing those approved only for emergency use
‘‘Small Business Administration—Recovery such section 1106(a); and authorization; or
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