Senate Amendments SA 2506 and SA 2507 to S. 178, August 4, 2020 — Congressional Record
Summary
Pages of the Congressional Record — Senate for August 4, 2020, beginning at S4745, printing amendment text. They open with the closing provisions of a preceding amendment, which would strike $659,000,000,000 and insert $748,990,000,000 in section 1102(b) of the CARES Act, set $100,000,000,000 for recovery sector loans, and appropriate amounts including $189,990,000,000 and $10,000,000,000. The text of SA 2506, submitted by Mr. Rubio for himself and Ms. Collins to the bill S. 178, adds a section cited as the Continuing Small Business Recovery and Paycheck Protection Program Act. It would add new allowable PPP expenses, a lender hold harmless provision, a simplified forgiveness application for covered loans under $150,000, and an audit plan. The pages close with the heading of SA 2507 from the same senators, an amendment to amendment SA 2499 proposed by Mr. McConnell.
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Full text
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—
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‘‘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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S4746 CONGRESSIONAL RECORD — SENATE August 4, 2020
‘‘(III) other kinds of personal protective ‘‘(i) beginning on the date that is 8 weeks ble loan or loan forgiveness requirements,
equipment, as determined by the Adminis- after such date of origination; and modify—
trator in consultation with the Secretary of ‘‘(ii) ending on December 31, 2020;’’; and ‘‘(I) the amount of a covered loan described
Health and Human Services and the Sec- (2) by striking subsection (l). in subparagraph (A); or
retary of Labor; and (g) SIMPLIFIED APPLICATION.—Section 1106 ‘‘(II) the loan forgiveness amount with re-
‘‘(C) does not include residential real prop- of the CARES Act (15 U.S.C. 9005), as amend- spect to a covered loan described in subpara-
erty or intangible property;’’; and ed by subsection (f) of this section, is amend- graph (A).
(ix) in paragraph (11), as so redesignated— ed— ‘‘(3) AUDIT PLAN.—
(I) in subparagraph (C), by striking ‘‘and’’ (1) in subsection (e), in the matter pre- ‘‘(A) IN GENERAL.—Not later than 30 days
at the end; ceding paragraph (1), by striking ‘‘An eligi- after the date of enactment of the Con-
(II) in subparagraph (D), by striking ‘‘and’’ ble’’ and inserting ‘‘Except as provided in tinuing Small Business Recovery and Pay-
at the end; and subsection (l), an eligible’’; check Protection Program Act, the Adminis-
(III) by adding at the end the following: (2) in subsection (f), by inserting ‘‘or the trator shall submit to the Committee on
‘‘(E) covered operations expenditures; information required under subsection (l), as Small Business and Entrepreneurship of the
‘‘(F) covered property damage costs; applicable’’ after ‘‘subsection (e)’’; and Senate and the Committee on Small Busi-
‘‘(G) covered supplier costs; and (3) by adding at the end the following: ness of the House of Representatives an
‘‘(H) covered worker protection expendi- ‘‘(l) SIMPLIFIED APPLICATION.— audit plan that details—
tures; and’’; ‘‘(1) COVERED LOANS UNDER $150,000.— ‘‘(i) the policies and procedures of the Ad-
(B) in subsection (b), by adding at the end ‘‘(A) IN GENERAL.—Notwithstanding sub- ministrator for conducting reviews and au-
the following: section (e), with respect to a covered loan dits of covered loans; and
‘‘(5) Any covered operations expenditure. made to an eligible recipient that is not ‘‘(ii) the metrics that the Administrator
‘‘(6) Any covered property damage cost. more than $150,000, the covered loan amount shall use to determine which covered loans
‘‘(7) Any covered supplier cost. shall be forgiven under this section if the eli- will be audited for each category of covered
‘‘(8) Any covered worker protection ex- gible recipient— loans described in paragraphs (1) and (2).
penditure.’’; ‘‘(i) signs and submits to the lender an at- ‘‘(B) REPORTS.—Not later than 30 days
(C) in subsection (d)(8), by inserting ‘‘any testation that the eligible recipient made a after the date on which the Administrator
payment on any covered operations expendi- good faith effort to comply with the require- submits the audit plan required under sub-
ture, any payment on any covered property ments under section 7(a)(36) of the Small paragraph (A), and each month thereafter,
damage cost, any payment on any covered Business Act (15 U.S.C. 636(a)(36)); and the Administrator shall submit to the Com-
supplier cost, any payment on any covered ‘‘(ii) for the 1-year period following sub- mittee on Small Business and Entrepreneur-
worker protection expenditure,’’ after ‘‘rent mission of the attestation under clause (i), ship of the Senate and the Committee on
obligation,’’; and retains records relevant to the attestation Small Business of the House of Representa-
(D) in subsection (e)— that prove compliance with those require- tives a report on the review and audit activi-
(i) in paragraph (2), by inserting ‘‘pay- ments. ties of the Administrator under this sub-
ments on covered operations expenditures, ‘‘(B) DEMOGRAPHIC INFORMATION.—An eligi- section, which shall include—
payments on covered property damage costs, ble recipient of a covered loan described in ‘‘(i) the number of active reviews and au-
payments on covered supplier costs, pay- subparagraph (A) may complete and submit dits;
ments on covered worker protection expendi- any form related to borrower demographic ‘‘(ii) the number of reviews and audits that
tures,’’ after ‘‘lease obligations,’’; and information. have been ongoing for more than 60 days; and
(ii) in paragraph (3)(B), by inserting ‘‘make ‘‘(C) AUDIT.—The Administrator may— ‘‘(iii) any substantial changes made to the
payments on covered operations expendi- ‘‘(i) review and audit covered loans de- audit plan submitted under subparagraph
tures, make payments on covered property scribed in subparagraph (A); and (A).’’.
damage costs, make payments on covered ‘‘(ii) in the case of fraud, ineligibility, or (h) GROUP INSURANCE PAYMENTS AS PAY-
supplier costs, make payments on covered other material noncompliance with applica- ROLL COSTS.—Section
worker protection expenditures,’’ after ‘‘rent ble loan or loan forgiveness requirements, 7(a)(36)(A)(viii)(I)(aa)(EE) of the Small Busi-
obligation,’’. modify— ness Act (15 U.S.C.
(e) LENDER SAFE HARBOR.—Subsection (h) ‘‘(I) the amount of a covered loan described 636(a)(36)(A)(viii)(I)(aa)(EE)) is amended by
of section 1106 of the CARES Act (15 U.S.C. in subparagraph (A); or inserting ‘‘and other group insurance’’ before
9005) is amended to read as follows: ‘‘(II) the loan forgiveness amount with re- ‘‘benefits’’.
‘‘(h) HOLD HARMLESS.— spect to a covered loan described in subpara- (i) PAYCHECK PROTECTION PROGRAM SECOND
‘‘(1) IN GENERAL.—A lender may rely on graph (A). DRAW LOANS.—Section 7(a) of the Small
any certification or documentation sub- ‘‘(2) COVERED LOANS BETWEEN $150,000 AND Business Act (15 U.S.C. 636(a)) is amended by
mitted by an applicant for a covered loan or $2,000,000.— adding at the end the following:
an eligible recipient of a covered loan that— ‘‘(A) IN GENERAL.—Notwithstanding sub- ‘‘(37) PAYCHECK PROTECTION PROGRAM SEC-
‘‘(A) is submitted pursuant to any statu- section (e), with respect to a covered loan OND DRAW LOANS.—
tory requirement relating to covered loans made to an eligible recipient that is more ‘‘(A) DEFINITIONS.—In this paragraph—
or any rule or guidance issued to carry out than $150,000 and not more than $2,000,000— ‘‘(i) the terms ‘community financial insti-
any action relating to covered loans; and ‘‘(i) the eligible recipient seeking loan for- tutions’, ‘credit union’, ‘eligible self-em-
‘‘(B) attests that the applicant or eligible giveness under this section— ployed individual’, ‘insured depository insti-
recipient, as applicable, has accurately ‘‘(I) is not required to submit the sup- tution’, ‘nonprofit organization’, ‘payroll
verified any certification or documentation porting documentation described in para- costs’, ‘seasonal employer’, and ‘veterans or-
provided to the lender. graph (1) or (2) of subsection (e) or the cer- ganization’ have the meanings given those
‘‘(2) NO ENFORCEMENT ACTION.—With re- tification described in subsection (e)(3)(A); terms in paragraph (36), except that ‘eligible
spect to a lender that relies on a certifi- ‘‘(II) shall retain all relevant schedules, entity’ shall be substituted for ‘eligible re-
cation or documentation described in para- worksheets, and supporting documentation cipient’ each place it appears in the defini-
graph (1)— for the 3-year period following submission of tions of those terms;
‘‘(A) an enforcement action may not be the application for loan forgiveness; and ‘‘(ii) the term ‘covered loan’ means a loan
taken against the lender acting in good faith ‘‘(III) may complete and submit any form made under this paragraph;
relating to origination or forgiveness of a related to borrower demographic informa- ‘‘(iii) the terms ‘covered mortgage obliga-
covered loan based on such reliance; and tion; tion’, ‘covered operating expenditure’, ‘cov-
‘‘(B) the lender acting in good faith shall ‘‘(ii) review by the lender of an application ered property damage cost’, ‘covered rent ob-
not be subject to any penalties relating to submitted by the eligible recipient for loan ligation’, ‘covered supplier cost’, ‘covered
origination or forgiveness of a covered loan forgiveness under this section shall be lim- utility payment’, and ‘covered worker pro-
based on such reliance.’’. ited to whether the lender received a com- tection expenditure’ have the meanings
(f) SELECTION OF COVERED PERIOD FOR FOR- plete application, with all fields completed, given those terms in section 1106(a) of the
GIVENESS.—Section 1106 of the CARES Act initialed, or signed, as applicable; and CARES Act (15 U.S.C. 9005(a));
(15 U.S.C. 9005) is amended— ‘‘(iii) the lender shall— ‘‘(iv) the term ‘covered period’ means the
(1) by amending paragraph (4) of subsection ‘‘(I) accept the application submitted by period beginning on the date of the origina-
(a), as so redesignated by subsection (d) of the eligible recipient for loan forgiveness tion of a covered loan and ending on Decem-
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this section, to read as follows: under this section; and ber 31, 2020;
‘‘(4) the term ‘covered period’ means the ‘‘(II) submit the application to the Admin- ‘‘(v) the term ‘eligible entity’—
period— istrator. ‘‘(I) means any business concern, nonprofit
‘‘(A) beginning on the date of the origina- ‘‘(B) AUDIT.—The Administrator may— organization, veterans organization, Tribal
tion of a covered loan; and ‘‘(i) review and audit covered loans de- business concern, eligible self-employed indi-
‘‘(B) ending on a date selected by the eligi- scribed in subparagraph (A); and vidual, sole proprietor, independent con-
ble recipient of the covered loan that occurs ‘‘(ii) in the case of fraud, ineligibility, or tractor, or small agricultural cooperative
during the period— other material noncompliance with applica- that—
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August 4, 2020 CONGRESSIONAL RECORD — SENATE S4747
‘‘(aa)(AA) with respect to a business con- ance or rule issued or that may be issued by ‘‘(I) the product obtained by multiplying—
cern, would qualify as a small business con- the Administrator; ‘‘(aa) at the election of the eligible entity,
cern by the annual receipts size standard (if ‘‘(EE) is a type of business concern de- the average total monthly payments for pay-
applicable) established by section 121.201 of scribed in section 120.110(n) of title 13, Code roll costs incurred or paid by the eligible en-
title 13, Code of Federal Regulations, or any of Federal Regulations, or any successor reg- tity—
successor regulation; or ulation, except as otherwise provided in the ‘‘(AA) for a 12-week period beginning Feb-
‘‘(BB) if the entity does not qualify as a interim final rule of the Administration en- ruary 15, 2019 or March 1, 2019 and ending
small business concern, meets the alter- titled ‘Business Loan Program Temporary June 30, 2019; or
native size standard established under sec- Changes; Paycheck Protection Program—Ad- ‘‘(BB) for a consecutive 12-week period be-
tion 3(a)(5); ditional Eligibility Revisions to First In- tween May 1, 2019 and September 15, 2019; by
‘‘(bb) employs not more than 300 employ- terim Final Rule’ (85 Fed. Reg. 38301 (June ‘‘(bb) 2.5; or
ees; and 26, 2020)) or any other guidance or rule issued ‘‘(II) $2,000,000.
‘‘(cc)(AA) except as provided in subitems or that may be issued by the Administrator; ‘‘(iii) NEW ENTITIES.—The maximum
(BB), (CC), and (DD), had gross receipts dur- ‘‘(FF) is a type of business concern de- amount of a covered loan made to an eligible
ing the first or second quarter in 2020 that scribed in section 120.110(o) of title 13, Code entity that did not exist during the 1-year
are not less than 35 percent less than the of Federal Regulations, or any successor reg- period preceding February 15, 2020 is the less-
gross receipts of the entity during the same ulation, except as otherwise provided in any er of—
quarter in 2019; guidance or rule issued or that may be issued ‘‘(I) the product obtained by multiplying—
by the Administrator; or ‘‘(aa) the quotient obtained by dividing—
‘‘(BB) if the entity was not in business dur-
‘‘(GG) is an entity that is organized for re- ‘‘(AA) the sum of the total monthly pay-
ing the first or second quarter of 2019, but
search or for engaging in advocacy in areas ments by the eligible entity for payroll costs
was in business during the third and fourth
such as public policy or political strategy or paid or incurred by the eligible entity as of
quarter of 2019, had gross receipts during the
otherwise describes itself as a think tank in the date on which the eligible entity applies
first or second quarter of 2020 that are less
any public documents; for the covered loan; by
than 35 percent of the amount of the gross
‘‘(HH) is an entity that would be described ‘‘(BB) the number of months in which
receipts of the entity during the third or
in the subsections listed in subitems (AA) those payroll costs were paid or incurred; by
fourth quarter of 2019; through (GG) if the entity were a business ‘‘(bb) 2.5; or
‘‘(CC) if the entity was not in business dur- concern; or ‘‘(II) $2,000,000.
ing the first, second, or third quarter of 2019, ‘‘(II) is assigned, or was approved for a loan ‘‘(iv) LIMIT FOR MULTIPLE LOCATIONS.—With
but was in business during the fourth quarter under paragraph (36) with, a North American respect to an eligible entity with more than
of 2019, had gross receipts during the first or Industry Classification System code begin- 1 physical location, the total amount of all
second quarter of 2020 that are less than 35 ning with 52; covered loans shall be not more than
percent of the amount of the gross receipts ‘‘(cc) any business concern or entity pri- $2,000,000.
of the entity during the fourth quarter of marily engaged in political or lobbying ac- ‘‘(v) LOAN NUMBER LIMITATION.—An eligible
2019; or tivities, which shall include any entity that entity may only receive 1 covered loan.
‘‘(DD) if the entity was not in business dur- is organized for research or for engaging in ‘‘(vi) 90 DAY RULE FOR MAXIMUM LOAN
ing 2019, but was in operation on February advocacy in areas such as public policy or AMOUNT.—The maximum aggregate loan
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,
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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;
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S4748 CONGRESSIONAL RECORD — SENATE August 4, 2020
‘‘(III) grants from private foundations that ing the Federal Agricultural Mortgage Cor- ‘‘(T) CALCULATION OF MAXIMUM LOAN
are disbursed over the course of more than 1 poration). AMOUNT FOR FARMERS AND RANCHERS.—
calendar year; or ‘‘(M) PUBLICATION OF GUIDANCE.—Not later ‘‘(i) DEFINITION.—In this subparagraph, the
‘‘(IV) any contribution of property other than 10 days after the date of enactment of term ‘covered recipient’ means an eligible
than money, stocks, bonds, and other securi- this paragraph, the Administrator shall issue recipient that—
ties, provided that the non-cash contribution guidance addressing barriers to accessing ‘‘(I) operates as a sole proprietorship or as
is not sold by the organization in a trans- capital for minority, underserved, veteran, an independent contractor, or is an eligible
action unrelated to the tax-exempt purpose and women-owned business concerns for the self-employed individual;
of the organization. purpose of ensuring equitable access to cov- ‘‘(II) reports farm income or expenses on a
‘‘(H) LOAN FORGIVENESS.— ered loans. Schedule F (or any equivalent successor
‘‘(i) IN GENERAL.—Except as otherwise pro- ‘‘(N) STANDARD OPERATING PROCEDURE.— schedule); and
vided in this subparagraph, an eligible entity The Administrator shall, to the maximum ‘‘(III) was in business during the period be-
shall be eligible for forgiveness of indebted- extent practicable, allow a lender approved ginning on February 15, 2019 and ending on
ness on a covered loan in the same manner to make covered loans to use existing pro- June 30, 2019.
as an eligible recipient with respect to a loan gram guidance and standard operating proce- ‘‘(ii) NO EMPLOYEES.—With respect to cov-
made under paragraph (36), as described in dures for loans made under this subsection. ered recipient without employees, the max-
section 1106 of the CARES Act (15 U.S.C. ‘‘(O) PROHIBITION ON USE OF PROCEEDS FOR imum covered loan amount shall be the less-
9005). LOBBYING ACTIVITIES.—None of the proceeds er of—
‘‘(ii) FORGIVENESS AMOUNT.—An eligible en- of a covered loan may be used for— ‘‘(I) the sum of—
tity shall be eligible for forgiveness of in- ‘‘(i) lobbying activities, as defined in sec- ‘‘(aa) the product obtained by multi-
debtedness on a covered loan in an amount tion 3 of the Lobbying Disclosure Act of 1995 plying—
equal to the sum of the following costs in- (2 U.S.C. 1602); ‘‘(AA) the gross income of the covered re-
curred or expenditures made during the cov- ‘‘(ii) lobbying expenditures related to a cipient in 2019, as reported on a Schedule F
ered period: State or local election; or (or any equivalent successor schedule), that
‘‘(I) Payroll costs. ‘‘(iii) expenditures designed to influence is not more than $100,000, divided by 12; and
‘‘(II) Any payment of interest on any cov- the enactment of legislation, appropriations, ‘‘(BB) 2.5; and
ered mortgage obligation (which shall not in- regulation, administrative action, or Execu- ‘‘(bb) the outstanding amount of a loan
clude any prepayment of or payment of prin- tive order proposed or pending before Con- under subsection (b)(2) that was made during
cipal on a covered mortgage obligation). gress or any State government, State legis- the period beginning on January 31, 2020 and
‘‘(III) Any covered operations expenditure. lature, or local legislature or legislative ending on April 3, 2020 that the borrower in-
‘‘(IV) Any covered property damage cost. body.’’. tends to refinance under the covered loan,
‘‘(V) Any payment on any covered rent ob- (j) CONTINUED ACCESS TO THE PAYCHECK not including any amount of any advance
ligation. PROTECTION PROGRAM.— under the loan that is not required to be re-
‘‘(VI) Any covered utility payment. (1) IN GENERAL.—Section 7(a)(36)(E)(ii) of paid; or
‘‘(VII) Any covered supplier cost. the Small Business Act (15 U.S.C. ‘‘(II) $2,000,000.
‘‘(VIII) Any covered worker protection ex- 636(a)(36)(E)(ii)) is amended by striking ‘‘(iii) WITH EMPLOYEES.—With respect to a
penditure. ‘‘$10,000,000’’ and inserting ‘‘$2,000,000’’. covered recipient with employees, the max-
‘‘(iii) LIMITATION ON FORGIVENESS FOR ALL (2) APPLICABILITY OF MAXIMUM LOAN imum covered loan amount shall be cal-
ELIGIBLE ENTITIES.—The forgiveness amount AMOUNT CALCULATION.— culated using the formula described in sub-
under this subparagraph shall be equal to the (A) DEFINITIONS.—In this paragraph, the paragraph (E), except that the gross income
lesser of— terms ‘‘covered loan’’ and ‘‘eligible recipi- of the covered recipient described in clause
‘‘(I) the amount described in clause (ii); ent’’ have the meanings given those terms in (ii)(I)(aa)(AA) of this subparagraph, as di-
and section 7(a)(36) of the Small Business Act (15 vided by 12, shall be added to the sum cal-
‘‘(II) the amount equal to the quotient ob- U.S.C. 636(a)(36)). culated under subparagraph (E)(i)(I).
tained by dividing— (B) APPLICABILITY.—The amendment made ‘‘(iv) RECALCULATION.—A lender that made
‘‘(aa) the amount of the covered loan used by paragraph (1) shall apply only with re- a covered loan to a covered recipient before
for payroll costs during the covered period; spect to a covered loan applied for by an eli- the date of enactment of this subparagraph
and gible recipient on or after the date of enact- may, at the request of the covered recipi-
‘‘(bb) 0.60. ment of this Act. ent—
‘‘(I) LENDER ELIGIBILITY.—Except as other- (k) INCREASED ABILITY FOR PAYCHECK PRO- ‘‘(I) recalculate the maximum loan amount
wise provided in this paragraph, a lender ap- TECTION PROGRAM BORROWERS TO REQUEST AN applicable to that covered loan based on the
proved to make loans under paragraph (36) INCREASE IN LOAN AMOUNT DUE TO UPDATED formula described in clause (ii) or (iii), as ap-
may make covered loans under the same REGULATIONS.— plicable, if doing so would result in a larger
terms and conditions as in paragraph (36). (1) DEFINITIONS.—In this subsection, the covered loan amount; and
‘‘(J) REIMBURSEMENT FOR LOAN PROCESSING terms ‘‘covered loan’’ and ‘‘eligible recipi- ‘‘(II) provide the covered recipient with ad-
AND SERVICING.—The Administrator shall re- ent’’ have the meanings given those terms in ditional covered loan amounts based on that
imburse a lender authorized to make a cov- section 7(a)(36) of the Small Business Act (15 recalculation.’’.
ered loan in an amount that is— U.S.C. 636(a)(36)). (m) FARM CREDIT SYSTEM INSTITUTIONS.—
‘‘(i) 3 percent of the principal amount of (2) INCREASED AMOUNT.—Notwithstanding (1) DEFINITION OF FARM CREDIT SYSTEM IN-
the financing of the covered loan up to the interim final rule issued by the Adminis- STITUTION.—In this subsection, the term
$350,000; and tration entitled ‘‘Business Loan Program ‘‘Farm Credit System institution’’—
‘‘(ii) 1 percent of the principal amount of Temporary Changes; Paycheck Protection (A) means an institution of the Farm Cred-
the financing of the covered loan above Program—Loan Increases’’ (85 Fed. Reg. it System chartered under the Farm Credit
$350,000, if applicable. 29842 (May 19, 2020)), an eligible recipient of Act of 1971 (12 U.S.C. 2001 et seq.); and
‘‘(K) SET ASIDE FOR SMALL ENTITIES.—Not a covered loan that is eligible for an in- (B) does not include the Federal Agricul-
less than $25,000,000,000 of the total amount creased covered loan amount as a result of tural Mortgage Corporation.
of covered loans guaranteed by the Adminis- any interim final rule that allows for cov- (2) FACILITATION OF PARTICIPATION IN PPP
trator shall be made to eligible entities with ered loan increases may submit a request for AND SECOND DRAW LOANS.—
not more than 10 employees as of February an increase in the covered loan amount even (A) APPLICABLE RULES.—Solely with re-
15, 2020. if— spect to loans under paragraphs (36) and (37)
‘‘(L) SET ASIDE FOR COMMUNITY FINANCIAL (A) the initial covered loan amount has of section 7(a) of the Small Business Act (15
INSTITUTIONS, SMALL INSURED DEPOSITORY IN- been fully disbursed; or U.S.C. 636(a)), Farm Credit Administration
STITUTIONS, CREDIT UNIONS, AND FARM CREDIT (B) the lender of the initial covered loan regulations and guidance issued as of July
SYSTEM INSTITUTIONS.—Not less than has submitted to the Administration a Form 14, 2020, and compliance with such regula-
$10,000,000,000 of the total amount of covered 1502 report related to the covered loan. tions and guidance, shall be deemed func-
loans guaranteed by the Administrator shall (l) CALCULATION OF MAXIMUM LOAN AMOUNT tionally equivalent to requirements ref-
be made by— FOR FARMERS AND RANCHERS UNDER THE PAY- erenced in section 3(a)(iii)(II) of the interim
‘‘(i) community financial institutions; CHECK PROTECTION PROGRAM.— final rule of the Administration entitled
‘‘(ii) insured depository institutions with (1) IN GENERAL.—Section 7(a)(36) of the ‘‘Business Loan Program Temporary
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consolidated assets of less than Small Business Act (15 U.S.C. 636(a)(36)), as Changes; Paycheck Protection Program’’ (85
$10,000,000,000; amended by subsection (j) of this section, is Fed. Reg. 20811 (April 15, 2020)) or any similar
‘‘(iii) credit unions with consolidated as- amended— requirement referenced in that interim final
sets of less than $10,000,000,000; and (A) in subparagraph (E), in the matter pre- rule in implementing such paragraph (37).
‘‘(iv) institutions of the Farm Credit Sys- ceding clause (i), by striking ‘‘During’’ and (B) APPLICABILITY OF CERTAIN LOAN RE-
tem chartered under the Farm Credit Act of inserting ‘‘Except as provided in subpara- QUIREMENTS.—For purposes of making loans
1971 (12 U.S.C. 2001 et seq.) with consolidated graph (T), during’’; and under paragraph (36) or (37) of section 7(a) of
assets of less than $10,000,000,000 (not includ- (B) by adding at the end the following: the Small Business Act (15 U.S.C. 636(a)) or
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August 4, 2020 CONGRESSIONAL RECORD — SENATE S4749
forgiving those loans in accordance with sec- those terms in section 7(a)(36) of the Small ‘‘(bb) any entity that received a loan under
tion 1106 of the CARES Act (15 U.S.C. 9005) Business Act (15 U.S.C. 636(a)(36)).’’. paragraph (37); or
and subparagraph (H) of such paragraph (37), (o) CHANGES TO THE 7(A) LOAN GUARANTY ‘‘(cc) any entity that received a loan under
sections 4.13, 4.14, and 4.14A of the Farm PROGRAM FOR RECOVERY SECTOR BUSINESS paragraph (36) after the date of enactment of
Credit Act of 1971 (12 U.S.C. 2199, 2202, 2202a) CONCERNS.—Section 7(a) of the Small Busi- this paragraph; and
(including regulations issued under those ness Act (15 U.S.C. 636(a)), as amended by ‘‘(v) the term ‘small business low-income
sections) shall not apply. subsection (i) of this section, is amended by census tract’—
(C) RISK WEIGHT.— adding at the end the following: ‘‘(I) means—
(i) IN GENERAL.—With respect to the appli- ‘‘(38) RECOVERY SECTOR LOANS.— ‘‘(aa) a covered population census tract for
cation of Farm Credit Administration cap- ‘‘(A) DEFINITIONS.—In this paragraph— which the poverty rate is not less than 20
ital requirements, a loan described in clause ‘‘(i) the term ‘covered loan’ means a loan percent; or
(ii)— made under this paragraph; ‘‘(bb) an area—
(I) shall receive a risk weight of zero per- ‘‘(ii) the term ‘covered population census ‘‘(AA) that is not tracted as a population
cent; and tract’ means a population census tract for census tract;
(II) shall not be included in the calculation which— ‘‘(BB) for which the poverty rate in the
of any applicable leverage ratio or other ap- ‘‘(I) in the case of a tract that is not lo- equivalent county division (as defined by the
plicable capital ratio or calculation. cated within a metropolitan area, the me- Bureau of the Census) is not less than 20 per-
(ii) LOANS DESCRIBED.—A loan referred to dian income does not exceed 80 percent of the cent; and
in clause (i) is— statewide (or, with respect to a possession or ‘‘(CC) for which the median income in the
(I) a loan made by a Farm Credit Bank de- territory of the United States, the equivalent county division (as defined by the
scribed in section 1.2(a) of the Farm Credit possession- or territory-wide) median family Bureau of the Census) does not exceed 80 per-
Act of 1971 (12 U.S.C. 2002(a)) to a Federal income; or cent of the statewide (or, with respect to a
Land Bank Association, a Production Credit ‘‘(II) in the case of a tract that is located possession or territory of the United States,
Association, or an agricultural credit asso- within a metropolitan area, the median fam- the possession- or territory-wide) median in-
ciation described in that section to make ily income does not exceed 80 percent of the come; and
loans under paragraph (36) or (37) of section greater of the statewide (or, with respect to ‘‘(II) does not include any area or popu-
7(a) of the Small Business Act (15 U.S.C. a possession or territory of the United lation census tract with a median family in-
636(a)) or forgive those loans in accordance States, the possession- or territory-wide) me- come that is not less than 120 percent of the
with section 1106 of the CARES Act (15 dian family income and the metropolitan median family income in the United States,
U.S.C. 9005) and subparagraph (H) of such area median family income; according to the most recent American Com-
paragraph (37); or ‘‘(iii) the term ‘covered seasonal employer’ munities Survey data from the Bureau of the
(II) a loan made by a Federal Land Bank means a small business concern that— Census.
Association, a Production Credit Associa- ‘‘(I) is a seasonal employer, as defined in ‘‘(B) LOANS.—Except as otherwise provided
tion, an agricultural credit association, or paragraph (36); and in this paragraph, the Administrator may
the bank for cooperatives described in sec- ‘‘(II) during the preceding calendar year— guarantee covered loans made to eligible en-
tion 1.2(a) of the Farm Credit Act of 1971 (12 ‘‘(aa) had gross receipts as described in tities—
U.S.C. 2002(a)) under paragraph (36) or (37) of paragraph (36)(A)(xiii)(II); and ‘‘(i) under the same terms, conditions, and
section 7(a) of the Small Business Act (15 ‘‘(bb) employed not more than 250 employ- processes as a loan made under this sub-
U.S.C. 636(a)). ees during not fewer than 5 months out of section; and
(D) RESERVATION OF LOAN GUARANTEES.— that year; ‘‘(ii) to meet working capital needs, ac-
Section 7(a)(36)(S) of the Small Business Act ‘‘(iv) the term ‘eligible entity’— quire fixed assets, or refinance existing in-
(15 U.S.C. 636(a)(36)(S)) is amended— ‘‘(I) means any small business concern debtedness while recovering from the
(i) in clause (i)— that— COVID–19 pandemic.
(I) in subclause (I), by striking ‘‘and’’ at ‘‘(aa) except with respect to a covered sea- ‘‘(C) MAXIMUM LOAN AMOUNT.—The max-
the end; sonal employer, employs not more than 500 imum amount of a covered loan made to an
(II) in subclause (II), by striking the period employees; eligible entity shall be the lesser of—
at the end and inserting ‘‘; and’’; and ‘‘(bb)(AA) except as provided in subitems ‘‘(i) $10,000,000; or
(III) by adding at the end the following: (BB), (CC), and (DD), had gross receipts dur- ‘‘(ii) the amount equal to 200 percent of the
‘‘(III) institutions of the Farm Credit Sys- ing the first or second quarter in 2020 that average annual receipts of the eligible enti-
tem chartered under the Farm Credit Act of are less than 50 percent of the gross receipts ty.
1971 (12 U.S.C. 2001 et seq.) with consolidated of the business concern during the same ‘‘(D) LOAN NUMBER LIMITATION.—An eligible
assets of not less than $10,000,000,000 and less quarter in 2019; entity may only receive 1 covered loan.
than $50,000,000,000.’’; and ‘‘(BB) if the small business concern was ‘‘(E) 90 DAY RULE FOR MAXIMUM LOAN
(ii) in clause (ii)— not in business during the first or second AMOUNT.—The maximum aggregate loan
(I) in subclause (II), by striking ‘‘and’’ at quarter of 2019, but was in business during amount of loans guaranteed under this sub-
the end; the third and fourth quarter of 2019, had section that are approved for an eligible en-
(II) in subclause (III), by striking the pe- gross receipts during the first or second tity (including any affiliates) within 90 days
riod at the end and inserting ‘‘; and’’; and quarter of 2020 that are less than 50 percent of approval of another loan under this sub-
(III) by adding at the end the following: of the amount of the gross receipts of the section for the eligible entity (including any
‘‘(IV) institutions of the Farm Credit Sys- small business concern during the third or affiliates) shall not exceed $10,000,000.
tem chartered under the Farm Credit Act of fourth quarter of 2019; ‘‘(F) APPLICATION DEADLINE.—An eligible
1971 (12 U.S.C. 2001 et seq.) with consolidated ‘‘(CC) if the small business concern was not entity desiring a covered loan shall submit
assets of less than $10,000,000,000.’’. in business during the first, second, or third an application not later than December 31,
(n) DEFINITION OF SEASONAL EMPLOYER.— quarter of 2019, but was in business during 2020.
(1) PPP LOANS.—Section 7(a)(36)(A) of the the fourth quarter of 2019, had gross receipts ‘‘(G) FEE WAIVER.—With respect to a cov-
Small Business Act (15 U.S.C. 636(a)(36)(A)) is during the first or second quarter of 2020 that ered loan—
amended— are less than 50 percent of the amount of the ‘‘(i) in lieu of the fee otherwise applicable
(A) in clause (xi), by striking ‘‘and’’ at the gross receipts of the small business concern under paragraph (23)(A), the Administrator
end; during the fourth quarter of 2019; or shall collect no fee; and
(B) in clause (xii), by striking the period at ‘‘(DD) if the small business concern was ‘‘(ii) in lieu of the fee otherwise applicable
the end and inserting ‘‘; and’’; and not in business during the first or second under paragraph (18)(A), the Administrator
(C) by adding at the end the following: quarter of 2020, had gross receipts during any shall collect no fee.
‘‘(xiii) the term ‘seasonal employer’ means 2-month period during 2020 that are less than ‘‘(H) LOAN TERMS.—
an eligible recipient that— 50 percent of the amount of the gross re- ‘‘(i) IN GENERAL.—In order to receive a cov-
‘‘(I) does not operate for more than 7 ceipts of the small business concern during ered loan, an eligible entity shall not be re-
months in any calendar year; or any other 2-month period during 2020; and quired to show that the eligible entity is un-
‘‘(II) during the preceding calendar year, ‘‘(cc)(AA) is a covered seasonal employer able to obtain credit elsewhere.
had gross receipts for any 6 months of that seeking a covered loan of not more than ‘‘(ii) MATURITY AND INTEREST RATE.—A cov-
year that were not more than 33.33 percent of $2,000,000; or ered loan shall—
the gross receipts of the employer for the ‘‘(BB) is a small business concern the prin- ‘‘(I) have a maturity of 20 years; and
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other 6 months of that year.’’. cipal place of business of which is in, and not ‘‘(II) bear an interest rate of equal to the
(2) LOAN FORGIVENESS.—Paragraph (12) of less than 50 percent of the total gross income sum of—
section 1106(a) of the CARES Act (15 U.S.C. of which is derived from the active conduct ‘‘(aa) the Secured Overnight Financing
9005(a)), as so redesignated by subsection of the business concern within, a small busi- Rate in effect for each of the days in the rel-
(d)(2) of this section, is amended to read as ness low-income census tract; and evant quarter that interest is charged, as
follows: ‘‘(II) does not include— compiled and released by the Federal Re-
‘‘(12) the terms ‘payroll costs’ and ‘sea- ‘‘(aa) an entity described in paragraph serve Bank of New York; and
sonal employer’ have the meanings given (37)(A)(v)(II); ‘‘(bb) 300 basis points.
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S4750 CONGRESSIONAL RECORD — SENATE August 4, 2020
‘‘(iii) GUARANTEE.—In an agreement to par- (2) in clause (vi), by inserting ‘‘, an organi- 636(a)), and such loan shall be treated as a
ticipate in a covered loan on a deferred basis, zation described in clause (vii),’’ after ‘‘non- debt to the extent the loan is not forgiven in
the participation by the Administration profit organization’’; and accordance with section 1106 of the CARES
shall be 100 percent of the covered loan. (3) by adding at the end the following: Act (15 U.S.C. 9005) or subparagraph (H) of
‘‘(iv) SUBSIDY FOR INTEREST PAYMENTS.— ‘‘(vii) ELIGIBILITY FOR CERTAIN 501(C)(6) OR- such paragraph (37), as applicable, with pri-
‘‘(I) IN GENERAL.—The Administrator shall GANIZATIONS.— ority equal to a claim of the kind specified
pay the amount of interest that is owed on a ‘‘(I) IN GENERAL.—Except as provided in in subsection (c)(1) of this section.
covered loan in regular servicing status for subclause (II), any organization that is de- ‘‘(2) The trustee may incur debt described
the maturity of the loan such that the inter- scribed in section 501(c)(6) of the Internal in paragraph (1) notwithstanding any provi-
est rate paid by the eligible entity is, at all Revenue Code and that is exempt from tax- sion in a contract, prior order authorizing
times, equal to a rate of 1 percent. ation under section 501(a) of such Code (ex- the trustee to incur debt under this section,
‘‘(II) TIMING OF PAYMENT.—The Adminis- cluding professional sports leagues and orga- prior order authorizing the trustee to use
trator shall— nizations with the purpose of promoting or cash collateral under section 363, or applica-
‘‘(aa) begin making payments under sub- participating in a political campaign or ble law that prohibits the debtor from incur-
clause (I) not later than 30 days after the other activity) shall be eligible to receive a ring additional debt.
date on which the first such payment is due; ‘‘(3) The court shall hold a hearing within
covered loan if—
and 7 days after the filing and service of the mo-
‘‘(aa) the organization does not receive tion to obtain a loan described in paragraph
‘‘(bb) make payments without regard to more than 10 percent of its receipts from lob-
the payment deferral described in clause (iv). (1).’’.
bying activities; (2) ALLOWANCE OF ADMINISTRATIVE EX-
‘‘(III) APPLICATION OF PAYMENT.—Any pay- ‘‘(bb) the lobbying activities of the organi- PENSES.—Section 503(b) of title 11, United
ment made by the Administrator under sub- zation do not comprise more than 10 percent
clause (I) shall be applied to the covered loan States Code, is amended—
of the total activities of the organization; (A) in paragraph (8)(B), by striking ‘‘and’’
such that the eligible entity is relieved of and
the obligation to pay that amount. at the end;
‘‘(cc) the organization employs not more (B) in paragraph (9), by striking the period
‘‘(v) PAYMENT DEFERRAL.— than 150 employees.
‘‘(I) IN GENERAL.—No payment of principal at the end and inserting ‘‘; and’’; and
‘‘(II) DESTINATION MARKETING ORGANIZA- (C) by adding at the end the following:
or interest shall be due on a covered loan for TIONS.—Notwithstanding subclause (I), dur-
the first 2 years of the covered loan. ‘‘(10) any debt incurred under section
ing the covered period, any destination mar- 364(g)(1) of this title.’’.
‘‘(II) ADDITIONAL DEFERRAL.—After the 2- keting organization shall be eligible to re-
year deferral period under subclause (I), the (3) CONFIRMATION OF PLAN FOR REORGANIZA-
ceive a covered loan if— TION.—Section 1191 of title 11, United States
Administrator may grant not more than an ‘‘(aa) the destination marketing organiza-
additional 2 years of principal deferral to the Code, is amended by adding at the end the
tion does not receive more than 10 percent of following:
eligible entity if the eligible entity is cer- its receipts from lobbying activities; ‘‘(f) SPECIAL PROVISION RELATED TO
tified by the Administrator and the Sec- ‘‘(bb) the lobbying activities of the destina- COVID–19 PANDEMIC.—Notwithstanding sec-
retary as economically distressed based on tion marketing organization do not comprise tion 1129(a)(9)(A) of this title and subsection
publicly available criteria established by the
more than 10 percent of the total activities (e) of this section, a plan that provides for
Administrator.
of the organization; payment of a claim of a kind specified in sec-
‘‘(vi) LIMITATION ON CHANGES IN TERMS.—
‘‘(cc) the destination marketing organiza- tion 503(b)(10) of this title may be confirmed
Notwithstanding any other provision of this
tion employs not more than 150 employees; under subsection (b) of this section if the
subsection, for a covered loan, the Adminis-
and plan proposes to make payments on account
trator shall not approve any increase in loan of such claim when due under the terms of
‘‘(dd) the destination marketing organiza-
amount or change in guaranty percentage, the loan giving rise to such claim.’’.
tion—
interest rate, interest accrual method, or (4) CONFIRMATION OF PLAN FOR FAMILY
‘‘(AA) is described in section 501(c) of the
maturity, except for such changes as may be FARMERS AND FISHERMEN.—Section 1225 of
Internal Revenue Code and is exempt from
necessary for prepayment and the deferment title 11, United States Code, is amended by
taxation under section 501(a) of such Code; or
of payment under clause (v). adding at the end the following:
‘‘(BB) is a quasi-governmental entity or is
‘‘(I) PROHIBITION ON USE OF PROCEEDS FOR ‘‘(d) Notwithstanding section 1222(a)(2) of
a political subdivision of a State or local
DISASTER LOANS.—An eligible entity shall not this title and subsection (b)(1) of this sec-
government, including any instrumentality
use the proceeds of a covered loan to refi- tion, a plan that provides for payment of a
of those entities.’’.
nance any loan made under subsection (b). claim of a kind specified in section 503(b)(10)
(q) PROHIBITION ON USE OF LOAN PROCEEDS
‘‘(J) SECONDARY MARKET.—In order to in- FOR LOBBYING ACTIVITIES.—Section of this title may be confirmed if the plan
crease the liquidity of the secondary market 7(a)(36)(F) of the Small Business Act (15 proposes to make payments on account of
for covered loans, the Administrator shall, U.S.C. 636(a)(36)(F)) is amended by adding at such claim when due under the terms of the
not later than 60 days after the date of en- the end the following: loan giving rise to such claim.’’.
actment of this paragraph, substantially re- ‘‘(vi) PROHIBITION.—None of the proceeds of (5) CONFIRMATION OF PLAN FOR INDIVID-
duce barriers to the sale of covered loans on a covered loan may be used for— UALS.—Section 1325 of title 11, United States
the secondary market. ‘‘(I) lobbying activities, as defined in sec- Code, is amended by adding at the end the
‘‘(K) LENDER ELIGIBILITY.—In order to in- tion 3 of the Lobbying Disclosure Act of 1995 following:
crease access to and the equitable distribu- (2 U.S.C. 1602); ‘‘(d) Notwithstanding section 1322(a)(2) of
tion of covered loans, the Administrator ‘‘(II) lobbying expenditures related to a this title and subsection (b)(1) of this sec-
shall establish a process by which a lender State or local election; or tion, a plan that provides for payment of a
approved to make loans under paragraph (36) claim of a kind specified in section 503(b)(10)
‘‘(III) expenditures designed to influence
may make covered loans. of this title may be confirmed if the plan
the enactment of legislation, appropriations,
‘‘(L) REIMBURSEMENT FOR LOAN PROCESSING proposes to make payments on account of
regulation, administrative action, or Execu-
AND SERVICING.—The Administrator shall re- such claim when due under the terms of the
tive order proposed or pending before Con-
imburse a lender authorized to make a cov- loan giving rise to such claim.’’.
gress or any State government, State legis-
ered loan in an amount that is— (6) EFFECTIVE DATE; SUNSET.—
lature, or local legislature or legislative
‘‘(i) 3 percent of the principal amount of (A) EFFECTIVE DATE.—The amendments
body.’’.
the financing of the covered loan up to made by paragraphs (1) through (5) shall—
(r) EFFECTIVE DATE; APPLICABILITY.—The
$350,000; and amendments made to paragraph (36) of sec- (i) take effect on the date on which the Ad-
‘‘(ii) 1 percent of the principal amount of tion 7(a) of the Small Business Act (15 U.S.C. ministrator submits to the Director of the
the financing of the covered loan above 636(a)) and title I of the CARES Act (Public Executive Office for United States Trustees a
$350,000, if applicable. Law 116–136) under this section shall be effec- written determination that, subject to satis-
‘‘(M) STANDARD OPERATING PROCEDURE.— tive as if included in the CARES Act and fying any other eligibility requirements, any
The Administrator shall, to the maximum shall apply to any loan made pursuant to debtor in possession or trustee that is au-
extent practicable, allow a lender approved section 7(a)(36) of the Small Business Act (15 thorized to operate the business of the debt-
to make covered loans to use existing pro- U.S.C. 636(a)(36)). or under section 1183, 1184, 1203, 1204, or 1304
gram guidance and standard operating proce- (s) BANKRUPTCY PROVISIONS.— of title 11, United States Code, would be eli-
dures for loans made under this subsection.’’. (1) IN GENERAL.—Section 364 of title 11, gible for a loan under paragraphs (36) and (37)
(p) ELIGIBILITY OF 501(C)(6) ORGANIZATIONS of section 7(a) of the Small Business Act (15
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United States Code, is amended by adding at
FOR LOANS UNDER THE PAYCHECK PROTECTION the end the following: U.S.C. 636(a)); and
PROGRAM.—Section 7(a)(36)(D) of the Small ‘‘(g)(1) The court, after notice and a hear- (ii) apply to any case pending on or com-
Business Act (15 U.S.C. 636(a)(36)(D)) is ing, may authorize a debtor in possession or menced on or after the date described in
amended— a trustee that is authorized to operate the clause (i).
(1) in clause (v), by inserting ‘‘or whether business of the debtor under section 1183, (B) SUNSET.—
an organization described in clause (vii) em- 1184, 1203, 1204, or 1304 of this title to obtain (i) IN GENERAL.—If the amendments made
ploys not more than 150 employees,’’ after a loan under paragraph (36) or (37) of section by this subsection take effect under subpara-
‘‘clause (i)(I),’’; 7(a) of the Small Business Act (15 U.S.C. graph (A), effective on the date that is 2
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August 4, 2020 CONGRESSIONAL RECORD — SENATE S4751
years after the date of enactment of this (ii) the spouse, child, son-in-law, or daugh- ticipating investment company under the fa-
Act— ter-in-law, as determined under applicable cility; or
(I) section 364 of title 11, United States common law, of an individual described in ‘‘(iii) is located in a small business low-in-
Code, is amended by striking subsection (g); clause (i). come census tract; and
(II) section 503(b) of title 11, United States (D) EXECUTIVE DEPARTMENT.—The term ‘‘(B) does not include an entity described
Code, is amended— ‘‘Executive department’’ has the meaning in paragraph (37)(A)(v)(II) of such section
(aa) in paragraph (8)(B), by adding ‘‘and’’ given the term in section 101 of title 5, 7(a).
at the end; United States Code. ‘‘(2) FACILITY.—The term ‘facility’ means
(bb) in paragraph (9), by striking ‘‘; and’’ at (E) MEMBER OF CONGRESS.—The term the facility established under subsection (b).
the end and inserting a period; and ‘‘Member of Congress’’ means a Member of ‘‘(3) FUND.—The term ‘Fund’ means the
(cc) by striking paragraph (10); the Senate or House of Representatives, a fund established under subsection (h).
(III) section 1191 of title 11, United States Delegate to the House of Representatives, ‘‘(4) PARTICIPATING INVESTMENT COMPANY.—
Code, is amended by striking subsection (f); and the Resident Commissioner from Puerto The term ‘participating investment com-
(IV) section 1225 of title 11, United States Rico. pany’ means a small business investment
Code, is amended by striking subsection (d); (F) EQUITY INTEREST.—The term ‘‘equity company approved under subsection (d) to
and interest’’ means— participate in the facility
(V) section 1325 of title 11, United States (i) a share in an entity, without regard to ‘‘(5) PROTÉGÉ INVESTMENT COMPANY.—The
Code, is amended by striking subsection (d). whether the share is— term ‘protégé investment company’ means a
(ii) APPLICABILITY.—Notwithstanding the (I) transferable; or small business investment company that—
amendments made by clause (i) of this sub- (II) classified as stock or anything similar; ‘‘(A) is majority managed by new, inexperi-
paragraph, if the amendments made by para- (ii) a capital or profit interest in a limited enced, or otherwise underrepresented fund
graphs (1), (2), (3), (4), and (5) take effect liability company or partnership; or managers; and
under subparagraph (A) of this paragraph, (iii) a warrant or right, other than a right ‘‘(B) elects and is selected by the Adminis-
such amendments shall apply to any case to convert, to purchase, sell, or subscribe to tration to participate in the pathway-
under title 11, United States Code, com- a share or interest described in clause (i) or protégé program under subsection (g).
menced before the date that is 2 years after (ii), respectively. ‘‘(6) SMALL BUSINESS CONCERN.—The term
the date of enactment of this Act. (2) REQUIREMENT.—The principal executive ‘small business concern’ has the meaning
officer and the principal financial officer, or given the term in section 3(a) of the Small
(t) OVERSIGHT.—
individuals performing similar functions, of Business Act (15 U.S.C. 632(a)).
(1) COMPLIANCE WITH OVERSIGHT REQUIRE-
an entity seeking to enter a transaction ‘‘(7) SMALL BUSINESS LOW-INCOME CENSUS
MENTS.—
made under paragraph (36), (37), or (38) of sec- TRACT.—The term ‘small business low-in-
(A) IN GENERAL.—Except as provided in
tion 7(a) of the Small Business Act (15 U.S.C. come census tract’ has the meaning given
subparagraph (B), on and after the date of
636(a)), as added and amended by this sec- the term in section 7(a)(38)(A) of the Small
enactment of this Act, the Administrator
tion, shall, before that transaction is ap- Business Act.
shall comply with any data or information
proved, disclose to the Administrator wheth-
requests or inquiries made by the Comp- ‘‘(b) ESTABLISHMENT.—
er the entity is a covered entity.
troller General of the United States not later ‘‘(1) FACILITY.—The Administrator shall es-
(3) APPLICABILITY.—The requirement under
than 30 days (or such later date as the Comp- tablish and carry out a facility to improve
paragraph (2)—
troller General may specify) after receiving the recovery of eligible small business con-
(A) shall apply with respect to any trans-
the request or inquiry. cerns from the COVID–19 pandemic, increase
action made under paragraph (36), (37), or (38)
(B) EXCEPTION.—If the Administrator is un- resiliency in the manufacturing supply chain
of section 7(a) of the Small Business Act (15
able to comply with a request or inquiry de- of eligible small business concerns, and in-
U.S.C. 636(a)), as added and amended by this
scribed in subparagraph (A) within the 30- crease the economic development of small
section, on or after the date of enactment of
day period or, if applicable, later period de- business low-income census tracts by pro-
this Act; and
scribed in that clause, the Administrator viding financial assistance to participating
(B) shall not apply with respect to—
shall, during that 30-day (or later) period, investment companies that facilitate equity
(i) any transaction described in subpara-
submit to the Committee on Small Business financings to eligible small business con-
graph (A) that was made before the date of
and Entrepreneurship of the Senate and the cerns in accordance with this section.
enactment of this Act; or
Committee on Small Business of the House ‘‘(2) ADMINISTRATION OF FACILITY.—The fa-
(ii) forgiveness under section 1106 of the
of Representatives a notification that in- cility shall be administered by the Adminis-
CARES Act (15 U.S.C. 9005) or any other pro-
cludes a detailed justification for the inabil- trator acting through the Associate Admin-
vision of law of any loan associated with any
ity of the Administrator to comply with the istrator described in section 201.
transaction described in subparagraph (A)
request or inquiry. ‘‘(c) APPLICATIONS.—
that was made before the date of enactment
(2) TESTIMONY.—Not later than the date ‘‘(1) IN GENERAL.—Any small business in-
of this Act.
that is 30 days after the date of enactment of (v) SMALL BUSINESS INVESTMENT COMPANY vestment company may submit to the Ad-
this Act, and every quarter thereafter until PROGRAM.— ministrator an application to participate in
the date that is 2 years after the date of en- (1) IN GENERAL.—Part A of title III of the the facility.
actment of this Act, the Administrator and Small Business Investment Act of 1958 (15 ‘‘(2) REQUIREMENTS FOR APPLICATION.—An
the Secretary of the Treasury shall testify U.S.C. 681 et seq.) is amended— application to participate in the facility
before the Committee on Small Business and (A) in section 302(a) (15 U.S.C. 682(a))— shall include the following:
Entrepreneurship of the Senate and the Com- (i) in paragraph (1)— ‘‘(A) A business plan describing how the
mittee on Small Business of the House of (I) in subparagraph (A), by striking ‘‘or’’ at applicant intends to make successful equity
Representatives regarding implementation the end; investments in eligible small business con-
of this section and the amendments made by (II) in subparagraph (B), by striking the pe- cerns.
this section. riod at the end and inserting ‘‘; or’’; and ‘‘(B) Information regarding the relevant in-
(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
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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;
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S4752 CONGRESSIONAL RECORD — SENATE August 4, 2020
‘‘(C) the disclosure of general compen- ing bonds that include equity features as de- pating investment company under the facil-
satory practices and fee structures; or scribed in this subsection. ity shall be the lesser of—
‘‘(D) any other requirement that the Ad- ‘‘(2) BOND TERMS.—A bond purchased by the ‘‘(i) twice the amount of the regulatory
ministrator determines to be an obstacle to Administrator from a participating invest- capital of the participating investment com-
achieving the purposes described in this ment company under this subsection shall pany; or
paragraph. have the following terms and conditions: ‘‘(ii) $200,000,000.
‘‘(d) SELECTION OF PARTICIPATING INVEST- ‘‘(A) TERM AND INTEREST.— ‘‘(4) COMMITMENT PROCESS.—Commitments
MENT COMPANIES.— ‘‘(i) IN GENERAL.—The bond shall be issued by the Administration to purchase bonds
‘‘(1) DETERMINATION.— for a term of not less than 15 years and shall under the facility shall remain available to
‘‘(A) IN GENERAL.—Except as provided in bear interest at a rate determined by the Ad- be sold by a participating investment com-
paragraph (3), not later than 60 days after ministrator of not more than 2 percent. pany until the end of the fourth fiscal year
the date on which the Administrator re- ‘‘(ii) ACCRUAL OF INTEREST.—Interest on following the year in which the commitment
ceives an application under subsection (c), the bond shall accrue and shall be payable in is made, subject to review and approval by
the Administrator shall— accordance with subparagraph (D). the Administration based on regulatory com-
‘‘(i) make a final determination to approve ‘‘(iii) PREPAYMENT.—The bond shall be pliance, financial status, change in manage-
or disapprove such applicant to participate prepayable without penalty after the end of ment, deviation from business plan, and such
in the facility; and the 1-year period beginning on the date on other limitations as may be determined by
‘‘(ii) transmit the determination to the ap- which the bond was purchased. the Administration by regulation or other-
plicant in writing. ‘‘(B) PROFITS.— wise.
‘‘(B) COMMITMENT AMOUNT.—Except as pro- ‘‘(i) IN GENERAL.—The Administration shall ‘‘(5) COMMITMENT CONDITIONS.—
vided in paragraph (3), at the time of ap- be entitled to receive a share of the profits ‘‘(A) IN GENERAL.—As a condition of receiv-
proval of an applicant, the Administrator net of any profit sharing performance com- ing a commitment under the facility, not
shall make a determination of the amount of pensation of the participating investment less than 50 percent of amounts invested by
the commitment that may be awarded to the company equal to the quotient obtained by the participating investment company shall
applicant under this section. dividing— be invested in eligible small business con-
‘‘(I) one-third of the commitment that the cerns.
‘‘(2) SELECTION CRITERIA.—In making a de-
participating investment company is ap- ‘‘(B) EXAMINATIONS.—In addition to the
termination under paragraph (1), the Admin-
proved for under subsection (d); by matters set forth in section 310(c), the Ad-
istrator shall consider—
‘‘(II) the commitment approved under sub- ministration shall examine each partici-
‘‘(A) the probability that the investment
section (d) plus the regulatory capital of the pating investment company in such detail so
strategy of the applicant will successfully
participating investment company at the as to determine whether the participating
repay any financial assistance provided by
time of approval under that subsection. investment company has complied with the
the Administration, including the prob-
‘‘(ii) DETERMINATION OF PERCENTAGE.—The requirements under this subsection.
ability of a return significantly in excess
share to which the Administration is enti-
thereof; ‘‘(f) DISTRIBUTIONS AND FEES.—
tled under clause (i)—
‘‘(B) the probability that the investments ‘‘(1) DISTRIBUTION REQUIREMENTS.—
‘‘(I) shall be determined at the time of ap-
made by the applicant will— ‘‘(A) DISTRIBUTIONS.—As a condition of re-
proval under subsection (d); and
‘‘(i) provide capital to eligible small busi- ceiving a commitment under the facility, a
‘‘(II) without the approval of the Adminis-
ness concerns; or participating investment company shall
tration, shall not be revised, including to re-
‘‘(ii) create or preserve jobs in the United flect subsequent distributions of profits, re- make all distributions to the Administrator
States; turns of capital, or repayments of bonds, or in the same form and in a manner as are
‘‘(C) the probability that the applicant will otherwise. made to investors, or otherwise at a time
meet the objectives in the business plan of ‘‘(C) PROFIT SHARING PERFORMANCE COM- and in a manner consistent with regulations
the applicant, including the financial goals, PENSATION.—
or policies of the Administration.
and, if applicable, the pathway-protégé pro- ‘‘(i) RECEIPT BY ADMINISTRATION.—The Ad- ‘‘(B) ALLOCATIONS.—A participating invest-
gram in accordance with subsection (g); and ministration shall receive a share of profits ment company shall make allocations of in-
‘‘(D) the probability that the applicant will of not more than 2 percent, which shall be come, gain, loss, deduction, and credit to the
assist eligible small business concerns in deposited into the Fund and be available to Administrator with respect to any out-
achieving profitability. make commitments under this subsection. standing bonds as if the Administrator were
‘‘(3) APPROVAL OF PARTICIPATING INVEST- ‘‘(ii) RECEIPT BY MANAGERS.—The managers an investor.
MENT COMPANIES.— of the participating investment company ‘‘(2) FEES.—The Administrator may not
‘‘(A) PROVISIONAL APPROVAL.— may receive a maximum profit sharing per- charge fees for participating investment
‘‘(i) IN GENERAL.—Notwithstanding para- formance compensation of 25 percent minus companies other than examination fees that
graph (1), with respect to an application sub- the share of profits paid to the Administra- are consistent with the license of the partici-
mitted by an applicant to operate as a par- tion under clause (i). pating investment company.
ticipating investment company under this ‘‘(D) PROHIBITION ON DISTRIBUTIONS.—No ‘‘(3) BIFURCATION.—Losses on bonds issued
section, the Administrator may provide pro- distributions on capital, including profit dis- by participating investment companies shall
visional approval for the applicant in lieu of tributions, shall be made by the partici- not be offset by fees or any other charges on
a final determination of approval and deter- pating investment company to the investors debenture small business investment compa-
mination of the amount of the commitment or managers of the participating investment nies.
under that paragraph. company until the Administration has re- ‘‘(g) PROTÉGÉ PROGRAM.—The Adminis-
‘‘(ii) PURPOSE.—The purpose of a provi- ceived payment of all accrued interest on the trator shall establish a pathway-protégé pro-
sional approval under clause (i) is to— bond committed under this section. gram in which a protégé investment com-
‘‘(I) encourage applications from invest- ‘‘(E) REPAYMENT OF PRINCIPAL.—Except as pany may receive technical assistance and
ment companies with an investment man- described in subparagraph (F), repayments of program support from a participating invest-
date from the committed private market principal of the bond of a participating in- ment company on a voluntary basis and
capital of the investment company that does vestment company shall be— without penalty for non-participation.
not conform to the requirements described in ‘‘(i) made at the same time as returns of ‘‘(h) LOSS LIMITING FUND.—
this section at the time of application; private capital; and ‘‘(1) IN GENERAL.—There is established in
‘‘(II) allow the applicant to more effec- ‘‘(ii) in amounts equal to the pro rata the Treasury a fund for making commit-
tively raise capital commitments in the pri- share of the Administration of the total ments and purchasing bonds with equity fea-
vate markets by referencing the intent of amount being repaid or returned at such tures under the facility and receiving capital
the Administrator to award the applicant a time. returned by participating investment compa-
commitment; and ‘‘(F) LIQUIDATION OR DEFAULT.—Upon any nies.
‘‘(III) allow the applicant to more precisely liquidation event or default, as defined by ‘‘(2) USE OF FUNDS.—Amounts appropriated
request the desired amount of commitment the Administration, any unpaid principal or to the Fund or deposited in the Fund under
pending the securing of capital from private accrued interest on the bond shall— paragraph (3) shall be available to the Ad-
market investors. ‘‘(i) have a priority over all equity of the ministrator, without further appropriation,
‘‘(iii) LIMIT ON PERIOD OF THE TIME.—The participating investment company; and for making commitments and purchasing
period between a provisional approval under ‘‘(ii) be paid before any return of equity or bonds under the facility and expenses and
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clause (i) and the final determination of ap- any other distributions to the investors or payments, excluding administrative ex-
proval under paragraph (1) shall not exceed managers of the participating investment penses, relating to the operations of the Ad-
12 months. company. ministrator under the facility.
‘‘(e) COMMITMENTS AND SBIC BONDS.— ‘‘(3) AMOUNT OF COMMITMENTS AND PUR- ‘‘(3) DEPOSITING OF AMOUNTS.—
‘‘(1) IN GENERAL.—The Administrator may, CHASES.— ‘‘(A) IN GENERAL.—All amounts received by
out of amounts available in the Fund, pur- ‘‘(A) MAXIMUM AMOUNT.—The maximum the Administrator from a participating in-
chase or commit to purchase from a partici- amount of outstanding bonds and commit- vestment company relating to the facility,
pating investment company 1 or more accru- ments to purchase bonds for any partici- including any moneys, property, or assets
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August 4, 2020 CONGRESSIONAL RECORD — SENATE S4753
derived by the Administrator from oper- Services and General Government Appropria- SEC. 3. SMALL BUSINESS RECOVERY.
ations in connection with the facility, shall tions Act, 2020 (division C of Public Law 116– (a) SHORT TITLE.—This section may be
be deposited in the Fund. 193) shall apply with respect to any commit- cited as the ‘‘Continuing the Paycheck Pro-
‘‘(B) PERIOD OF AVAILABILITY.—Amounts ments under such section 7(a) other than tection Program Act’’.
deposited under subparagraph (A) shall re- under paragraphs (36), (37), and (38) of such (b) DEFINITIONS.—In this section:
main available until expended. section 7(a).’’. (1) ADMINISTRATION; ADMINISTRATOR.—The
‘‘(i) APPLICATION OF OTHER SECTIONS.—To (B) RECOVERY SECTOR LOANS.—During the terms ‘‘Administration’’ and ‘‘Adminis-
the extent not inconsistent with require- period beginning on the date of enactment of trator’’ mean the Small Business Adminis-
ments under this section, the Administrator this Act and ending on December 31, 2020, the tration and the Administrator thereof, re-
may apply sections 309, 311, 312, 313, and 314 amount authorized for commitments under spectively.
to activities under this section and an offi- paragraph (38) of section 7(a) of the Small (2) SMALL BUSINESS CONCERN.—The term
cer, director, employee, agent, or other par- Business Act (15 U.S.C. 636(a)), as added by ‘‘small business concern’’ has the meaning
ticipant in a participating investment com- this section, shall be $100,000,000,000. given the term in section 3 of the Small
pany shall be subject to the requirements (2) DIRECT APPROPRIATIONS.— Business Act (15 U.S.C. 632).
(c) EMERGENCY RULEMAKING AUTHORITY.—
under such sections. (A) RESCISSION.—With respect to unobli-
Not later than 30 days after the date of en-
‘‘(j) AUTHORIZATION OF APPROPRIATIONS.— gated balances under the heading ‘‘ ‘Small
actment of this Act, the Administrator shall
There is authorized to be appropriated for Business Administration—Business Loans
issue regulations to carry out this section
the first fiscal year beginning after the date Program Account, CARES Act’’ as of the day and the amendments made by this section
of enactment of this part $10,000,000,000 to before the date of enactment of this Act, without regard to the notice requirements
carry out the facility. Amounts appropriated $100,000,000,000 shall be rescinded and depos- under section 553(b) of title 5, United States
pursuant to this subsection shall remain ited into the general fund of the Treasury. Code.
available until the end of the second fiscal (B) NEW DIRECT APPROPRIATIONS.—There is (d) ADDITIONAL ELIGIBLE EXPENSES.—
year beginning after the date of enactment appropriated, out of amounts in the Treas- (1) ALLOWABLE USE OF PPP LOAN.—Section
of this section.’’. ury not otherwise appropriated, for the fiscal 7(a)(36)(F)(i) of the Small Business Act (15
(2) APPROVAL OF BANK-OWNED, NON-LEVER- year ending September 30, 2020— U.S.C. 636(a)(36)(F)(i)) is amended—
AGED APPLICANTS.—Section 301(c)(2) of the (i) to remain available until September 30, (A) in subclause (VI), by striking ‘‘and’’ at
Small Business Investment Act of 1958 (15 2021, for additional amounts— the end;
U.S.C. 681(c)(2)) is amended— (I) $189,990,000,000 under the heading (B) in subclause (VII), by striking the pe-
(A) in subparagraph (B), in the matter pre- ‘‘Small Business Administration—Business riod at the end and inserting a semicolon;
ceding clause (i), by striking ‘‘Within’’ and Loans Program Account, CARES Act’’ for and
inserting ‘‘Except as provided in subpara- the cost of guaranteed loans as authorized (C) by adding at the end the following:
graph (C), within’’; and under paragraph (36) and (37) of section 7(a) ‘‘(VIII) covered operations expenditures, as
(B) by adding at the end the following: of the Small Business Act (15 U.S.C. 636(a)), defined in section 1106(a) of the CARES Act
‘‘(C) EXCEPTION FOR BANK-OWNED, NON-LE- as amended and added by this section; (15 U.S.C. 9005(a));
VERAGED APPLICANTS.—Notwithstanding sub- (II) $57,700,000,000 under the heading ‘‘(IX) covered property damage costs, as
paragraph (B), not later than 45 days after ‘‘Small Business Administration—Recovery defined in such section 1106(a);
the date on which the Administrator re- Sector Loans’’ for the cost of guaranteed ‘‘(X) covered supplier costs, as defined in
ceives a completed application submitted by loans as authorized under paragraph (38) of such section 1106(a); and
a bank-owned, non-leveraged applicant in ac- section 7(a) of the Small Business Act (15 ‘‘(XI) covered worker protection expendi-
cordance with this subsection and in accord- U.S.C. 636(a)), as added by this section; and tures, as defined in such section 1106(a).’’.
ance with such requirements as the Adminis- (III) $10,000,000 under the heading under the (2) LOAN FORGIVENESS.—Section 1106 of the
trator may prescribe by regulation, the Ad- heading ‘‘Department of Commerce—Minor- CARES Act (15 U.S.C. 9005) is amended—
ministrator shall— ity Business Development Agency’’ for mi- (A) in subsection (a)—
‘‘(i) review the application in its entirety; nority business centers of the Minority Busi- (i) by redesignating paragraphs (6), (7), and
and ness Development Agency to provide tech- (8) as paragraphs (10), (11), and (12), respec-
‘‘(ii)(I) approve the application and issue a nical assistance to small business concerns; tively;
license for such operation to the applicant if and (ii) by redesignating paragraph (5) as para-
the requirements of this section are satis- (ii) to remain available until September 30, graph (8);
fied; or 2023, $10,000,000,000 under the heading ‘‘Small (iii) by redesignating paragraph (4) as para-
‘‘(II) disapprove the application and notify Business Administration—SBIC’’ to carry graph (6);
the applicant in writing of the disapproval.’’. out part D of title III of the Small Business (iv) by redesignating paragraph (3) as para-
(3) ELECTRONIC SUBMISSIONS.—Part A of Investment Act of 1958 (15 U.S.C. 681 et seq.), graph (4);
title III of the Small Business Investment as added by this section. (v) by inserting after paragraph (2) the fol-
Act of 1958 (15 U.S.C. 681 et seq.), as amended (C) AVAILABILITY OF AMOUNTS APPRO- lowing:
by paragraph (1) of this subsection, is amend- PRIATED FOR THE OFFICE OF INSPECTOR GEN- ‘‘(3) the term ‘covered operations expendi-
ed by adding at the end the following: ERAL.—Section 1107(a)(3) of the CARES Act ture’ means a payment for any business soft-
‘‘SEC. 322. ELECTRONIC SUBMISSIONS. (15 U.S.C. 9006(a)(3)) is amended by striking ware or cloud computing service that facili-
‘‘The Administration shall permit any doc- ‘‘September 20, 2024’’ and inserting ‘‘ex- tates business operations, product or service
ument submitted under this title, or pursu- pended’’. delivery, the processing, payment, or track-
ant to a regulation carrying out this title, to (x) EMERGENCY DESIGNATION.— ing of payroll expenses, human resources,
be submitted electronically, including by (1) IN GENERAL.—The amounts provided sales and billing functions, or accounting or
permitting an electronic signature for any under this section are designated as an emer- tracking of supplies, inventory, records and
signature that is required on such a docu- gency requirement pursuant to section 4(g) expenses;’’;
ment.’’. of the Statutory Pay-As-You-Go Act of 2010 (vi) by inserting after paragraph (4), as so
(w) COMMITMENT AUTHORITY AND APPRO- (2 U.S.C. 933(g)). redesignated, the following:
PRIATIONS.— (2) DESIGNATION IN SENATE.—In the Senate, ‘‘(5) the term ‘covered property damage
(1) COMMITMENT AUTHORITY.— this section is designated as an emergency cost’ means a cost related to property dam-
(A) CARES ACT AMENDMENTS.—Section requirement pursuant to section 4112(a) of H. age and vandalism or looting due to public
1102(b) of the CARES Act (Public Law 116– Con. Res. 71 (115th Congress), the concurrent disturbances that occurred during 2020 that
136) is amended— resolution on the budget for fiscal year 2018. was not covered by insurance or other com-
(i) in paragraph (1)— pensation;’’;
(I) in the paragraph heading, by inserting (vii) by inserting after paragraph (6), as so
‘‘AND SECOND DRAW’’ after ‘‘PPP’’; SA 2507. Mr. RUBIO (for himself and redesignated, the following:
(II) by striking ‘‘August 8, 2020’’ and insert- Ms. COLLINS) submitted an amendment ‘‘(5) the term ‘covered supplier cost’ means
ing ‘‘December 31, 2020’’; intended to be proposed to amendment an expenditure made by an entity to a sup-
(III) by striking ‘‘paragraph (36)’’ and in- SA 2499 proposed by Mr. MCCONNELL to plier of goods pursuant to a contract in ef-
serting ‘‘paragraphs (36) and (37)’’; and fect before February 15, 2020 for the supply of
(IV) by striking ‘‘$659,000,000,000’’ and in-
the bill S. 178, to condemn gross human goods that are essential to the operations of
serting ‘‘$748,990,000,000’’; and rights violations of ethnic Turkic Mus- the entity at the time at which the expendi-
SSpencer on DSK126QN23PROD with SENATE
(ii) by amending paragraph (2) to read as lims in Xinjiang, and calling for an end ture is made;’’;
follows: to arbitrary detention, torture, and (viii) by inserting after paragraph (8), as so
‘‘(B) OTHER 7(A) LOANS.—During fiscal year harassment of these communities in- redesignated, the following:
2020, the amount authorized for commit- side and outside China; which was or- ‘‘(9) the term ‘covered worker protection
ments for section 7(a) of the Small Business dered to lie on the table; as follows: expenditure’—
Act (15 U.S.C. 636(a)) under the heading ‘‘(A) means an operating or a capital ex-
‘Small Business Administration—Business At the end of the amendment, add the fol- penditure that is required to facilitate the
Loans Program Account’ in the Financial lowing: adaptation of the business activities of an
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