Congressional Record, Senate, August 4, 2020, Page S4753
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A page of the Congressional Record, Senate, dated August 4, 2020, beginning at page S4753, in a long document of legislative text. It carries provisions of a Small Business Recovery section that amend the Small Business Act, including a recovery sector loans authority of $100,000,000,000 for commitments through December 31, 2020. The text rescinds $100,000,000,000 in unobligated CARES Act balances, makes new direct appropriations and gives emergency rulemaking authority within 30 days of enactment. It also adds eligible expenses for covered loans and authorizes $10,000,000,000 for a facility.
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“Congressional Record, Senate, August 4, 2020, Page S4753.”
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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-
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(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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S4754 CONGRESSIONAL RECORD — SENATE August 4, 2020
entity to comply with requirements estab- ‘‘(1) IN GENERAL.—A lender may rely on ‘‘(2) COVERED LOANS BETWEEN $150,000 AND
lished or guidance issued by the Department any certification or documentation sub- $2,000,000.—
of Health and Human Services, the Centers mitted by an applicant for a covered loan or ‘‘(A) IN GENERAL.—Notwithstanding sub-
for Disease Control, or the Occupational an eligible recipient of a covered loan that— section (e), with respect to a covered loan
Safety and Health Administration during the ‘‘(A) is submitted pursuant to any statu- made to an eligible recipient that is more
period beginning on March 1, 2020 and ending tory requirement relating to covered loans than $150,000 and not more than $2,000,000—
December 31, 2020 related to the maintenance or any rule or guidance issued to carry out ‘‘(i) the eligible recipient seeking loan for-
of standards for sanitation, social any action relating to covered loans; and giveness under this section—
distancing, or any other worker or customer ‘‘(B) attests that the applicant or eligible ‘‘(I) is not required to submit the sup-
safety requirement related to COVID–19; recipient, as applicable, has accurately porting documentation described in para-
‘‘(B) may include— verified any certification or documentation graph (1) or (2) of subsection (e) or the cer-
‘‘(i) the purchase, maintenance, or renova- provided to the lender. tification described in subsection (e)(3)(A);
tion of assets that create or expand— ‘‘(2) NO ENFORCEMENT ACTION.—With re- ‘‘(II) shall retain all relevant schedules,
‘‘(I) a drive-through window facility; spect to a lender that relies on a certifi- worksheets, and supporting documentation
‘‘(II) an indoor, outdoor, or combined air or cation or documentation described in para- for the 3-year period following submission of
air pressure ventilation or filtration system; graph (1)— the application for loan forgiveness; and
‘‘(III) a physical barrier such as a sneeze ‘‘(A) an enforcement action may not be ‘‘(III) may complete and submit any form
guard; taken against the lender acting in good faith related to borrower demographic informa-
‘‘(IV) an indoor, outdoor, or combined com- relating to origination or forgiveness of a tion;
mercial real property; covered loan based on such reliance; and ‘‘(ii) review by the lender of an application
‘‘(V) an onsite or offsite health screening ‘‘(B) the lender acting in good faith shall submitted by the eligible recipient for loan
capability; or not be subject to any penalties relating to forgiveness under this section shall be lim-
‘‘(VI) other assets relating to the compli- origination or forgiveness of a covered loan ited to whether the lender received a com-
ance with the requirements or guidance de- based on such reliance.’’. plete application, with all fields completed,
scribed in subparagraph (A), as determined (f) SELECTION OF COVERED PERIOD FOR FOR- initialed, or signed, as applicable; and
GIVENESS.—Section 1106 of the CARES Act ‘‘(iii) the lender shall—
by the Administrator in consultation with
(15 U.S.C. 9005) is amended— ‘‘(I) accept the application submitted by
the Secretary of Health and Human Services
(1) by amending paragraph (4) of subsection the eligible recipient for loan forgiveness
and the Secretary of Labor; and
(a), as so redesignated by subsection (d) of under this section; and
‘‘(ii) the purchase of—
this section, to read as follows: ‘‘(II) submit the application to the Admin-
‘‘(I) covered materials described in section
‘‘(4) the term ‘covered period’ means the istrator.
328.103(a) of title 44, Code of Federal Regula-
period— ‘‘(B) AUDIT.—The Administrator may—
tions, or any successor regulation;
‘‘(A) beginning on the date of the origina- ‘‘(i) review and audit covered loans de-
‘‘(II) particulate filtering facepiece res-
tion of a covered loan; and scribed in subparagraph (A); and
pirators approved by the National Institute
‘‘(B) ending on a date selected by the eligi- ‘‘(ii) in the case of fraud, ineligibility, or
for Occupational Safety and Health, includ-
ble recipient of the covered loan that occurs other material noncompliance with applica-
ing those approved only for emergency use
during the period— ble loan or loan forgiveness requirements,
authorization; or
‘‘(i) beginning on the date that is 8 weeks modify—
‘‘(III) other kinds of personal protective
after such date of origination; and ‘‘(I) the amount of a covered loan described
equipment, as determined by the Adminis-
‘‘(ii) ending on December 31, 2020;’’; and in subparagraph (A); or
trator in consultation with the Secretary of
(2) by striking subsection (l). ‘‘(II) the loan forgiveness amount with re-
Health and Human Services and the Sec- (g) SIMPLIFIED APPLICATION.—Section 1106
retary of Labor; and spect to a covered loan described in subpara-
of the CARES Act (15 U.S.C. 9005), as amend- graph (A).
‘‘(C) does not include residential real prop- ed by subsection (f) of this section, is amend-
erty or intangible property;’’; and ‘‘(3) AUDIT PLAN.—
ed— ‘‘(A) IN GENERAL.—Not later than 30 days
(ix) in paragraph (11), as so redesignated— (1) in subsection (e), in the matter pre-
(I) in subparagraph (C), by striking ‘‘and’’ after the date of enactment of the Con-
ceding paragraph (1), by striking ‘‘An eligi- tinuing the Paycheck Protection Program
at the end; ble’’ and inserting ‘‘Except as provided in
(II) in subparagraph (D), by striking ‘‘and’’ Act, the Administrator shall submit to the
subsection (l), an eligible’’; Committee on Small Business and Entrepre-
at the end; and (2) in subsection (f), by inserting ‘‘or the
(III) by adding at the end the following: neurship of the Senate and the Committee
information required under subsection (l), as on Small Business of the House of Represent-
‘‘(E) covered operations expenditures; applicable’’ after ‘‘subsection (e)’’; and
‘‘(F) covered property damage costs; atives an audit plan that details—
(3) by adding at the end the following: ‘‘(i) the policies and procedures of the Ad-
‘‘(G) covered supplier costs; and ‘‘(l) SIMPLIFIED APPLICATION.—
‘‘(H) covered worker protection expendi- ministrator for conducting reviews and au-
‘‘(1) COVERED LOANS UNDER $150,000.— dits of covered loans; and
tures; and’’; ‘‘(A) IN GENERAL.—Notwithstanding sub-
(B) in subsection (b), by adding at the end ‘‘(ii) the metrics that the Administrator
section (e), with respect to a covered loan shall use to determine which covered loans
the following: made to an eligible recipient that is not
‘‘(5) Any covered operations expenditure. will be audited for each category of covered
more than $150,000, the covered loan amount loans described in paragraphs (1) and (2).
‘‘(6) Any covered property damage cost. shall be forgiven under this section if the eli-
‘‘(7) Any covered supplier cost. ‘‘(B) REPORTS.—Not later than 30 days
gible recipient— after the date on which the Administrator
‘‘(8) Any covered worker protection ex- ‘‘(i) signs and submits to the lender an at-
penditure.’’; submits the audit plan required under sub-
testation that the eligible recipient made a paragraph (A), and each month thereafter,
(C) in subsection (d)(8), by inserting ‘‘any good faith effort to comply with the require-
payment on any covered operations expendi- the Administrator shall submit to the Com-
ments under section 7(a)(36) of the Small mittee on Small Business and Entrepreneur-
ture, any payment on any covered property Business Act (15 U.S.C. 636(a)(36)); and
damage cost, any payment on any covered ship of the Senate and the Committee on
‘‘(ii) for the 1-year period following sub- Small Business of the House of Representa-
supplier cost, any payment on any covered mission of the attestation under clause (i),
worker protection expenditure,’’ after ‘‘rent tives a report on the review and audit activi-
retains records relevant to the attestation ties of the Administrator under this sub-
obligation,’’; and that prove compliance with those require-
(D) in subsection (e)— section, which shall include—
ments. ‘‘(i) the number of active reviews and au-
(i) in paragraph (2), by inserting ‘‘pay- ‘‘(B) DEMOGRAPHIC INFORMATION.—An eligi-
ments on covered operations expenditures, dits;
ble recipient of a covered loan described in ‘‘(ii) the number of reviews and audits that
payments on covered property damage costs, subparagraph (A) may complete and submit
payments on covered supplier costs, pay- have been ongoing for more than 60 days; and
any form related to borrower demographic ‘‘(iii) any substantial changes made to the
ments on covered worker protection expendi- information.
tures,’’ after ‘‘lease obligations,’’; and audit plan submitted under subparagraph
‘‘(C) AUDIT.—The Administrator may— (A).’’.
(ii) in paragraph (3)(B), by inserting ‘‘make ‘‘(i) review and audit covered loans de-
payments on covered operations expendi- (h) GROUP INSURANCE PAYMENTS AS PAY-
scribed in subparagraph (A); and ROLL COSTS.—Section
tures, make payments on covered property ‘‘(ii) in the case of fraud, ineligibility, or
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7(a)(36)(A)(viii)(I)(aa)(EE) of the Small Busi-
damage costs, make payments on covered other material noncompliance with applica- ness Act (15 U.S.C.
supplier costs, make payments on covered ble loan or loan forgiveness requirements, 636(a)(36)(A)(viii)(I)(aa)(EE)) is amended by
worker protection expenditures,’’ after ‘‘rent modify— inserting ‘‘and other group insurance’’ before
obligation,’’. ‘‘(I) the amount of a covered loan described ‘‘benefits’’.
(e) LENDER SAFE HARBOR.—Subsection (h) in subparagraph (A); or (i) PAYCHECK PROTECTION PROGRAM SECOND
of section 1106 of the CARES Act (15 U.S.C. ‘‘(II) the loan forgiveness amount with re- DRAW LOANS.—Section 7(a) of the Small
9005) is amended to read as follows: spect to a covered loan described in subpara- Business Act (15 U.S.C. 636(a)) is amended by
‘‘(h) HOLD HARMLESS.— graph (A). adding at the end the following:
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August 4, 2020 CONGRESSIONAL RECORD — SENATE S4755
‘‘(37) PAYCHECK PROTECTION PROGRAM SEC- ‘‘(AA) is a type of business concern de- ‘‘(BB) that retains, as a member of the
OND DRAW LOANS.— scribed in subsection (b), (c), (d), (e), (f), (h), board of directors of the business concern, a
‘‘(A) DEFINITIONS.—In this paragraph— (l) (m), (p), (q), (r), or (s) of section 120.110 of person who is a resident of the People’s Re-
‘‘(i) the terms ‘community financial insti- title 13, Code of Federal Regulations, or any public of China;
tutions’, ‘credit union’, ‘eligible self-em- successor regulation; ‘‘(vi) the terms ‘exchange’, ‘issuer’, and ‘se-
ployed individual’, ‘insured depository insti- ‘‘(BB) is a type of business concern de- curity’ have the meanings given those terms
tution’, ‘nonprofit organization’, ‘payroll scribed in section 120.110(g) of title 13, Code in section 3(a) of the Securities Exchange
costs’, ‘seasonal employer’, and ‘veterans or- of Federal Regulations, or any successor reg- Act of 1934 (15 U.S.C. 78c(a)); and
ganization’ have the meanings given those ulation, except as otherwise provided in the ‘‘(vii) the term ‘Tribal business concern’
terms in paragraph (36), except that ‘eligible interim final rule of the Administration en- means a Tribal business concern described in
entity’ shall be substituted for ‘eligible re- titled ‘Business Loan Program Temporary section 31(b)(2)(C).
cipient’ each place it appears in the defini- Changes; Paycheck Protection Program—Ad- ‘‘(B) LOANS.—Except as otherwise provided
tions of those terms; ditional Eligibility Criteria and Require- in this paragraph, the Administrator may
‘‘(ii) the term ‘covered loan’ means a loan ments for Certain Pledges of Loans’ (85 Fed. guarantee covered loans to eligible entities
made under this paragraph; Reg. 21747 (April 20, 2020)); under the same terms, conditions, and proc-
‘‘(iii) the terms ‘covered mortgage obliga- ‘‘(CC) is a type of business concern de- esses as a loan made under paragraph (36).
tion’, ‘covered operating expenditure’, ‘cov- scribed in section 120.110(i) of title 13, Code of ‘‘(C) MAXIMUM LOAN AMOUNT.—
ered property damage cost’, ‘covered rent ob- Federal Regulations, or any successor regu- ‘‘(i) IN GENERAL.—Except as otherwise pro-
vided in this subparagraph, the maximum
ligation’, ‘covered supplier cost’, ‘covered lation, except if the business concern is an
amount of a covered loan made to an eligible
utility payment’, and ‘covered worker pro- organization described in paragraph
entity is the lesser of—
tection expenditure’ have the meanings (36)(D)(vii);
‘‘(I) the product obtained by multiplying—
given those terms in section 1106(a) of the ‘‘(DD) is a type of business concern de-
‘‘(aa) at the election of the eligible entity,
CARES Act (15 U.S.C. 9005(a)); scribed in section 120.110(j) of title 13, Code of
the average total monthly payment for pay-
‘‘(iv) the term ‘covered period’ means the Federal Regulations, or any successor regu-
roll costs incurred or paid by the eligible en-
period beginning on the date of the origina- lation, except as otherwise provided in the tity during—
tion of a covered loan and ending on Decem- interim final rules of the Administration en- ‘‘(AA) the 1-year period before the date on
ber 31, 2020; titled ‘Business Loan Program Temporary which the loan is made; or
‘‘(v) the term ‘eligible entity’— Changes; Paycheck Protection Program— ‘‘(BB) calendar year 2019; by
‘‘(I) means any business concern, nonprofit Eligibility of Certain Electric Cooperatives’ ‘‘(bb) 2.5; or
organization, veterans organization, Tribal (85 Fed. Reg. 29847 (May 19, 2020)) and ‘Busi- ‘‘(II) $2,000,000.
business concern, eligible self-employed indi- ness Loan Program Temporary Changes; ‘‘(ii) SEASONAL EMPLOYERS.—The maximum
vidual, sole proprietor, independent con- Paycheck Protection Program—Eligibility amount of a covered loan made to an eligible
tractor, or small agricultural cooperative of Certain Telephone Cooperatives’ (85 Fed. entity that is a seasonal employer is the
that— Reg. 35550 (June 11, 2020)) or any other guid- lesser of—
‘‘(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—
‘‘(BB) if the entity was not in business dur- by the Administrator; or ‘‘(aa) the quotient obtained by dividing—
ing the first or second quarter of 2019, but ‘‘(GG) is an entity that is organized for re- ‘‘(AA) the sum of the total monthly pay-
was in business during the third and fourth search or for engaging in advocacy in areas ments by the eligible entity for payroll costs
quarter of 2019, had gross receipts during the such as public policy or political strategy or paid or incurred by the eligible entity as of
first or second quarter of 2020 that are less otherwise describes itself as a think tank in the date on which the eligible entity applies
than 35 percent of the amount of the gross any public documents; for the covered loan; by
receipts of the entity during the third or ‘‘(HH) is an entity that would be described ‘‘(BB) the number of months in which
fourth quarter of 2019; in the subsections listed in subitems (AA) those payroll costs were paid or incurred; by
‘‘(CC) if the entity was not in business dur- through (GG) if the entity were a business ‘‘(bb) 2.5; or
ing the first, second, or third quarter of 2019, concern; or ‘‘(II) $2,000,000.
but was in business during the fourth quarter ‘‘(II) is assigned, or was approved for a loan ‘‘(iv) LIMIT FOR MULTIPLE LOCATIONS.—With
of 2019, had gross receipts during the first or under paragraph (36) with, a North American respect to an eligible entity with more than
second quarter of 2020 that are less than 35 Industry Classification System code begin- 1 physical location, the total amount of all
percent of the amount of the gross receipts ning with 52; covered loans shall be not more than
of the entity during the fourth quarter of ‘‘(cc) any business concern or entity pri- $2,000,000.
2019; or marily engaged in political or lobbying ac- ‘‘(v) LOAN NUMBER LIMITATION.—An eligible
‘‘(DD) if the entity was not in business dur- tivities, which shall include any entity that entity may only receive 1 covered loan.
ing 2019, but was in operation on February is organized for research or for engaging in ‘‘(vi) 90 DAY RULE FOR MAXIMUM LOAN
15, 2020, had gross receipts during the second advocacy in areas such as public policy or AMOUNT.—The maximum aggregate loan
quarter of 2020 that are less than 35 percent political strategy or otherwise describes amount of loans guaranteed under this sub-
of the amount of the gross receipts of the en- itself as a think tank in any public docu- section that are approved for an eligible en-
tity during the first quarter of 2020; ments; or tity (including any affiliates) within 90 days
‘‘(II) includes an organization described in ‘‘(dd) any business concern or entity— of approval of another loan under this sub-
subparagraph (D)(vii) of paragraph (36) that ‘‘(AA) for which an entity created in or or- section for the eligible entity (including any
is eligible to receive a loan under that para- ganized under the laws of the People’s Re- affiliates) shall not exceed $10,000,000.
graph and that meets the requirements de- public of China or the Special Administra- ‘‘(D) EXCEPTION FROM CERTAIN CERTIFI-
scribed in items (aa) and (cc) of subclause (I); tive Region of Hong Kong, or that has sig- CATION REQUIREMENTS.—An eligible entity
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and nificant operations in the People’s Republic applying for a covered loan shall not be re-
‘‘(III) does not include— of China or the Special Administrative Re- quired to make the certification described in
‘‘(aa) an issuer, the securities of which are gion of Hong Kong, owns or holds, directly or subclause (III) or (IV) of paragraph (36)(G)(i).
listed on an exchange registered a national indirectly, not less than 20 percent of the ‘‘(E) FEE WAIVER.—With respect to a cov-
securities exchange under section 6 of the economic interest of the business concern or ered loan—
Securities Exchange Act of 1934 (15 U.S.C. entity, including as equity shares or a cap- ‘‘(i) in lieu of the fee otherwise applicable
78f); ital or profit interest in a limited liability under paragraph (23)(A), the Administrator
‘‘(bb) any entity that— company or partnership; or shall collect no fee; and
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S4756 CONGRESSIONAL RECORD — SENATE August 4, 2020
‘‘(ii) in lieu of the fee otherwise applicable may make covered loans under the same (1) DEFINITIONS.—In this subsection, the
under paragraph (18)(A), the Administrator terms and conditions as in paragraph (36). terms ‘‘covered loan’’ and ‘‘eligible recipi-
shall collect no fee. ‘‘(J) REIMBURSEMENT FOR LOAN PROCESSING ent’’ have the meanings given those terms in
‘‘(F) ELIGIBLE CHURCHES AND RELIGIOUS OR- AND SERVICING.—The Administrator shall re- section 7(a)(36) of the Small Business Act (15
GANIZATIONS.— imburse a lender authorized to make a cov- U.S.C. 636(a)(36)).
‘‘(i) SENSE OF CONGRESS.—It is the sense of ered loan in an amount that is— (2) INCREASED AMOUNT.—Notwithstanding
Congress that the interim final rule of the ‘‘(i) 3 percent of the principal amount of the interim final rule issued by the Adminis-
Administration entitled ‘Business Loan Pro- the financing of the covered loan up to tration entitled ‘‘Business Loan Program
gram Temporary Changes; Paycheck Protec- $350,000; and Temporary Changes; Paycheck Protection
tion Program’ (85 Fed. Reg. 20817 (April 15, ‘‘(ii) 1 percent of the principal amount of Program—Loan Increases’’ (85 Fed. Reg.
2020)) properly clarified the eligibility of the financing of the covered loan above 29842 (May 19, 2020)), an eligible recipient of
churches and religious organizations for $350,000, if applicable. a covered loan that is eligible for an in-
loans made under paragraph (36). ‘‘(K) SET ASIDE FOR SMALL ENTITIES.—Not creased covered loan amount as a result of
‘‘(ii) APPLICABILITY OF PROHIBITION.—The less than $25,000,000,000 of the total amount any interim final rule that allows for cov-
prohibition on eligibility established by sec- of covered loans guaranteed by the Adminis- ered loan increases may submit a request for
tion 120.110(k) of title 13, Code of Federal trator shall be made to eligible entities with an increase in the covered loan amount even
Regulations, or any successor regulation, not more than 10 employees as of February if—
shall not apply to a covered loan. 15, 2020. (A) the initial covered loan amount has
‘‘(L) SET ASIDE FOR COMMUNITY FINANCIAL been fully disbursed; or
‘‘(G) GROSS RECEIPTS FOR NONPROFIT AND
INSTITUTIONS, SMALL INSURED DEPOSITORY IN- (B) the lender of the initial covered loan
VETERANS ORGANIZATIONS.—For purposes of
STITUTIONS, CREDIT UNIONS, AND FARM CREDIT has submitted to the Administration a Form
calculating gross receipts under subpara-
SYSTEM INSTITUTIONS.—Not less than 1502 report related to the covered loan.
graph (A)(v)(I)(cc) for an eligible entity that (l) CALCULATION OF MAXIMUM LOAN AMOUNT
$10,000,000,000 of the total amount of covered
is a nonprofit organization, a veterans orga- FOR FARMERS AND RANCHERS UNDER THE PAY-
loans guaranteed by the Administrator shall
nization, or an organization described in sub- CHECK PROTECTION PROGRAM.—
be made by—
paragraph (A)(v)(II), gross receipts— ‘‘(i) community financial institutions; (1) IN GENERAL.—Section 7(a)(36) of the
‘‘(i) shall include proceeds from fund- ‘‘(ii) insured depository institutions with Small Business Act (15 U.S.C. 636(a)(36)), as
raising events, federated campaigns, gifts, consolidated assets of less than amended by subsection (j) of this section, is
donor-advised funds, and funds from similar $10,000,000,000; amended—
sources; and ‘‘(iii) credit unions with consolidated as- (A) in subparagraph (E), in the matter pre-
‘‘(ii) shall not include— sets of less than $10,000,000,000; and ceding clause (i), by striking ‘‘During’’ and
‘‘(I) Federal grants (excluding any loan for- ‘‘(iv) institutions of the Farm Credit Sys- inserting ‘‘Except as provided in subpara-
giveness on loans received under paragraph tem chartered under the Farm Credit Act of graph (T), during’’; and
(36) or this paragraph); 1971 (12 U.S.C. 2001 et seq.) with consolidated (B) by adding at the end the following:
‘‘(II) revenues from a supporting organiza- assets of less than $10,000,000,000 (not includ- ‘‘(T) CALCULATION OF MAXIMUM LOAN
tion; ing the Federal Agricultural Mortgage Cor- AMOUNT FOR FARMERS AND RANCHERS.—
‘‘(III) grants from private foundations that poration). ‘‘(i) DEFINITION.—In this subparagraph, the
are disbursed over the course of more than 1 ‘‘(M) PUBLICATION OF GUIDANCE.—Not later term ‘covered recipient’ means an eligible
calendar year; or than 10 days after the date of enactment of recipient that—
‘‘(IV) any contribution of property other this paragraph, the Administrator shall issue ‘‘(I) operates as a sole proprietorship or as
than money, stocks, bonds, and other securi- guidance addressing barriers to accessing an independent contractor, or is an eligible
ties, provided that the non-cash contribution capital for minority, underserved, veteran, self-employed individual;
is not sold by the organization in a trans- and women-owned business concerns for the ‘‘(II) reports farm income or expenses on a
action unrelated to the tax-exempt purpose purpose of ensuring equitable access to cov- Schedule F (or any equivalent successor
of the organization. ered loans. schedule); and
‘‘(H) LOAN FORGIVENESS.— ‘‘(N) STANDARD OPERATING PROCEDURE.— ‘‘(III) was in business during the period be-
‘‘(i) IN GENERAL.—Except as otherwise pro- The Administrator shall, to the maximum ginning on February 15, 2019 and ending on
vided in this subparagraph, an eligible entity extent practicable, allow a lender approved June 30, 2019.
shall be eligible for forgiveness of indebted- to make covered loans to use existing pro- ‘‘(ii) NO EMPLOYEES.—With respect to cov-
ness on a covered loan in the same manner gram guidance and standard operating proce- ered recipient without employees, the max-
as an eligible recipient with respect to a loan dures for loans made under this subsection. imum covered loan amount shall be the less-
made under paragraph (36), as described in ‘‘(O) PROHIBITION ON USE OF PROCEEDS FOR er of—
section 1106 of the CARES Act (15 U.S.C. LOBBYING ACTIVITIES.—None of the proceeds ‘‘(I) the sum of—
9005). of a covered loan may be used for— ‘‘(aa) the product obtained by multi-
‘‘(ii) FORGIVENESS AMOUNT.—An eligible en- ‘‘(i) lobbying activities, as defined in sec- plying—
tity shall be eligible for forgiveness of in- tion 3 of the Lobbying Disclosure Act of 1995 ‘‘(AA) the gross income of the covered re-
debtedness on a covered loan in an amount (2 U.S.C. 1602); cipient in 2019, as reported on a Schedule F
equal to the sum of the following costs in- ‘‘(ii) lobbying expenditures related to a (or any equivalent successor schedule), that
curred or expenditures made during the cov- State or local election; or is not more than $100,000, divided by 12; and
ered period: ‘‘(iii) expenditures designed to influence ‘‘(BB) 2.5; and
‘‘(I) Payroll costs. the enactment of legislation, appropriations, ‘‘(bb) the outstanding amount of a loan
‘‘(II) Any payment of interest on any cov- regulation, administrative action, or Execu- under subsection (b)(2) that was made during
ered mortgage obligation (which shall not in- tive order proposed or pending before Con- the period beginning on January 31, 2020 and
clude any prepayment of or payment of prin- gress or any State government, State legis- ending on April 3, 2020 that the borrower in-
cipal on a covered mortgage obligation). lature, or local legislature or legislative tends to refinance under the covered loan,
‘‘(III) Any covered operations expenditure. body.’’. not including any amount of any advance
‘‘(IV) Any covered property damage cost. (j) CONTINUED ACCESS TO THE PAYCHECK under the loan that is not required to be re-
‘‘(V) Any payment on any covered rent ob- PROTECTION PROGRAM.— paid; or
ligation. (1) IN GENERAL.—Section 7(a)(36)(E)(ii) of ‘‘(II) $2,000,000.
‘‘(VI) Any covered utility payment. the Small Business Act (15 U.S.C. ‘‘(iii) WITH EMPLOYEES.—With respect to a
‘‘(VII) Any covered supplier cost. 636(a)(36)(E)(ii)) is amended by striking covered recipient with employees, the max-
‘‘(VIII) Any covered worker protection ex- ‘‘$10,000,000’’ and inserting ‘‘$2,000,000’’. imum covered loan amount shall be cal-
penditure. (2) APPLICABILITY OF MAXIMUM LOAN culated using the formula described in sub-
‘‘(iii) LIMITATION ON FORGIVENESS FOR ALL AMOUNT CALCULATION.— paragraph (E), except that the gross income
ELIGIBLE ENTITIES.—The forgiveness amount (A) DEFINITIONS.—In this paragraph, the of the covered recipient described in clause
under this subparagraph shall be equal to the terms ‘‘covered loan’’ and ‘‘eligible recipi- (ii)(I)(aa)(AA) of this subparagraph, as di-
lesser of— ent’’ have the meanings given those terms in vided by 12, shall be added to the sum cal-
‘‘(I) the amount described in clause (ii); section 7(a)(36) of the Small Business Act (15 culated under subparagraph (E)(i)(I).
and U.S.C. 636(a)(36)). ‘‘(iv) RECALCULATION.—A lender that made
‘‘(II) the amount equal to the quotient ob- a covered loan to a covered recipient before
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(B) APPLICABILITY.—The amendment made
tained by dividing— by paragraph (1) shall apply only with re- the date of enactment of this subparagraph
‘‘(aa) the amount of the covered loan used spect to a covered loan applied for by an eli- may, at the request of the covered recipi-
for payroll costs during the covered period; gible recipient on or after the date of enact- ent—
and ment of this Act. ‘‘(I) recalculate the maximum loan amount
‘‘(bb) 0.60. (k) INCREASED ABILITY FOR PAYCHECK PRO- applicable to that covered loan based on the
‘‘(I) LENDER ELIGIBILITY.—Except as other- TECTION PROGRAM BORROWERS TO REQUEST AN formula described in clause (ii) or (iii), as ap-
wise provided in this paragraph, a lender ap- INCREASE IN LOAN AMOUNT DUE TO UPDATED plicable, if doing so would result in a larger
proved to make loans under paragraph (36) REGULATIONS.— covered loan amount; and
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August 4, 2020 CONGRESSIONAL RECORD — SENATE S4757
‘‘(II) provide the covered recipient with ad- (I) in subclause (II), by striking ‘‘and’’ at ‘‘(AA) is described in section 501(c) of the
ditional covered loan amounts based on that the end; Internal Revenue Code and is exempt from
recalculation.’’. (II) in subclause (III), by striking the pe- taxation under section 501(a) of such Code; or
(m) FARM CREDIT SYSTEM INSTITUTIONS.— riod at the end and inserting ‘‘; and’’; and ‘‘(BB) is a quasi-governmental entity or is
(1) DEFINITION OF FARM CREDIT SYSTEM IN- (III) by adding at the end the following: a political subdivision of a State or local
STITUTION.—In this subsection, the term ‘‘(IV) institutions of the Farm Credit Sys- government, including any instrumentality
‘‘Farm Credit System institution’’— tem chartered under the Farm Credit Act of of those entities.’’.
(A) means an institution of the Farm Cred- 1971 (12 U.S.C. 2001 et seq.) with consolidated (p) PROHIBITION ON USE OF LOAN PROCEEDS
it System chartered under the Farm Credit assets of less than $10,000,000,000.’’. FOR LOBBYING ACTIVITIES.—Section
Act of 1971 (12 U.S.C. 2001 et seq.); and (n) DEFINITION OF SEASONAL EMPLOYER.— 7(a)(36)(F) of the Small Business Act (15
(B) does not include the Federal Agricul- (1) PPP LOANS.—Section 7(a)(36)(A) of the U.S.C. 636(a)(36)(F)) is amended by adding at
Small Business Act (15 U.S.C. 636(a)(36)(A)) is the end the following:
tural Mortgage Corporation.
amended— ‘‘(vi) PROHIBITION.—None of the proceeds of
(2) FACILITATION OF PARTICIPATION IN PPP
(A) in clause (xi), by striking ‘‘and’’ at the a covered loan may be used for—
AND SECOND DRAW LOANS.—
end; ‘‘(I) lobbying activities, as defined in sec-
(A) APPLICABLE RULES.—Solely with re-
(B) in clause (xii), by striking the period at tion 3 of the Lobbying Disclosure Act of 1995
spect to loans under paragraphs (36) and (37)
the end and inserting ‘‘; and’’; and (2 U.S.C. 1602);
of section 7(a) of the Small Business Act (15
(C) by adding at the end the following: ‘‘(II) lobbying expenditures related to a
U.S.C. 636(a)), Farm Credit Administration
‘‘(xiii) the term ‘seasonal employer’ means State or local election; or
regulations and guidance issued as of July
an eligible recipient that— ‘‘(III) expenditures designed to influence
14, 2020, and compliance with such regula-
‘‘(I) does not operate for more than 7 the enactment of legislation, appropriations,
tions and guidance, shall be deemed func-
months in any calendar year; or regulation, administrative action, or Execu-
tionally equivalent to requirements ref-
‘‘(II) during the preceding calendar year, tive order proposed or pending before Con-
erenced in section 3(a)(iii)(II) of the interim
had gross receipts for any 6 months of that gress or any State government, State legis-
final rule of the Administration entitled
year that were not more than 33.33 percent of lature, or local legislature or legislative
‘‘Business Loan Program Temporary
the gross receipts of the employer for the body.’’.
Changes; Paycheck Protection Program’’ (85
other 6 months of that year.’’. (q) EFFECTIVE DATE; APPLICABILITY.—The
Fed. Reg. 20811 (April 15, 2020)) or any similar amendments made to paragraph (36) of sec-
requirement referenced in that interim final (2) LOAN FORGIVENESS.—Paragraph (12) of
tion 7(a) of the Small Business Act (15 U.S.C.
rule in implementing such paragraph (37). section 1106(a) of the CARES Act (15 U.S.C.
636(a)) and title I of the CARES Act (Public
(B) APPLICABILITY OF CERTAIN LOAN RE- 9005(a)), as so redesignated by subsection
Law 116–136) under this section shall be effec-
QUIREMENTS.—For purposes of making loans (d)(2) of this section, is amended to read as
tive as if included in the CARES Act and
under paragraph (36) or (37) of section 7(a) of follows: shall apply to any loan made pursuant to
the Small Business Act (15 U.S.C. 636(a)) or ‘‘(12) the terms ‘payroll costs’ and ‘sea- section 7(a)(36) of the Small Business Act (15
forgiving those loans in accordance with sec- sonal employer’ have the meanings given U.S.C. 636(a)(36)).
tion 1106 of the CARES Act (15 U.S.C. 9005) those terms in section 7(a)(36) of the Small (r) BANKRUPTCY PROVISIONS.—
and subparagraph (H) of such paragraph (37), Business Act (15 U.S.C. 636(a)(36)).’’. (1) IN GENERAL.—Section 364 of title 11,
sections 4.13, 4.14, and 4.14A of the Farm (o) ELIGIBILITY OF 501(C)(6) ORGANIZATIONS United States Code, is amended by adding at
Credit Act of 1971 (12 U.S.C. 2199, 2202, 2202a) FOR LOANS UNDER THE PAYCHECK PROTECTION the end the following:
(including regulations issued under those PROGRAM.—Section 7(a)(36)(D) of the Small ‘‘(g)(1) The court, after notice and a hear-
sections) shall not apply. Business Act (15 U.S.C. 636(a)(36)(D)) is ing, may authorize a debtor in possession or
(C) RISK WEIGHT.— amended— a trustee that is authorized to operate the
(i) IN GENERAL.—With respect to the appli- (1) in clause (v), by inserting ‘‘or whether business of the debtor under section 1183,
cation of Farm Credit Administration cap- an organization described in clause (vii) em- 1184, 1203, 1204, or 1304 of this title to obtain
ital requirements, a loan described in clause ploys not more than 150 employees,’’ after a loan under paragraph (36) or (37) of section
(ii)— ‘‘clause (i)(I),’’; 7(a) of the Small Business Act (15 U.S.C.
(I) shall receive a risk weight of zero per- (2) in clause (vi), by inserting ‘‘, an organi- 636(a)), and such loan shall be treated as a
cent; and zation described in clause (vii),’’ after ‘‘non- debt to the extent the loan is not forgiven in
(II) shall not be included in the calculation profit organization’’; and accordance with section 1106 of the CARES
of any applicable leverage ratio or other ap- (3) by adding at the end the following: Act (15 U.S.C. 9005) or subparagraph (H) of
plicable capital ratio or calculation. ‘‘(vii) ELIGIBILITY FOR CERTAIN 501(C)(6) OR- such paragraph (37), as applicable, with pri-
(ii) LOANS DESCRIBED.—A loan referred to GANIZATIONS.— ority equal to a claim of the kind specified
in clause (i) is— ‘‘(I) IN GENERAL.—Except as provided in in subsection (c)(1) of this section.
(I) a loan made by a Farm Credit Bank de- subclause (II), any organization that is de- ‘‘(2) The trustee may incur debt described
scribed in section 1.2(a) of the Farm Credit scribed in section 501(c)(6) of the Internal in paragraph (1) notwithstanding any provi-
Act of 1971 (12 U.S.C. 2002(a)) to a Federal Revenue Code and that is exempt from tax- sion in a contract, prior order authorizing
the trustee to incur debt under this section,
Land Bank Association, a Production Credit ation under section 501(a) of such Code (ex-
prior order authorizing the trustee to use
Association, or an agricultural credit asso- cluding professional sports leagues and orga-
cash collateral under section 363, or applica-
ciation described in that section to make nizations with the purpose of promoting or
ble law that prohibits the debtor from incur-
loans under paragraph (36) or (37) of section participating in a political campaign or
ring additional debt.
7(a) of the Small Business Act (15 U.S.C. other activity) shall be eligible to receive a ‘‘(3) The court shall hold a hearing within
636(a)) or forgive those loans in accordance covered loan if— 7 days after the filing and service of the mo-
with section 1106 of the CARES Act (15 ‘‘(aa) the organization does not receive tion to obtain a loan described in paragraph
U.S.C. 9005) and subparagraph (H) of such more than 10 percent of its receipts from lob- (1).’’.
paragraph (37); or bying activities; (2) ALLOWANCE OF ADMINISTRATIVE EX-
(II) a loan made by a Federal Land Bank ‘‘(bb) the lobbying activities of the organi- PENSES.—Section 503(b) of title 11, United
Association, a Production Credit Associa- zation do not comprise more than 10 percent States Code, is amended—
tion, an agricultural credit association, or of the total activities of the organization; (A) in paragraph (8)(B), by striking ‘‘and’’
the bank for cooperatives described in sec- and at the end;
tion 1.2(a) of the Farm Credit Act of 1971 (12 ‘‘(cc) the organization employs not more (B) in paragraph (9), by striking the period
U.S.C. 2002(a)) under paragraph (36) or (37) of than 150 employees. at the end and inserting ‘‘; and’’; and
section 7(a) of the Small Business Act (15 ‘‘(II) DESTINATION MARKETING ORGANIZA- (C) by adding at the end the following:
U.S.C. 636(a)). TIONS.—Notwithstanding subclause (I), dur- ‘‘(10) any debt incurred under section
(D) RESERVATION OF LOAN GUARANTEES.— ing the covered period, any destination mar- 364(g)(1) of this title.’’.
Section 7(a)(36)(S) of the Small Business Act keting organization shall be eligible to re- (3) CONFIRMATION OF PLAN FOR REORGANIZA-
(15 U.S.C. 636(a)(36)(S)) is amended— ceive a covered loan if— TION.—Section 1191 of title 11, United States
(i) in clause (i)— ‘‘(aa) the destination marketing organiza- Code, is amended by adding at the end the
(I) in subclause (I), by striking ‘‘and’’ at tion does not receive more than 10 percent of following:
the end; its receipts from lobbying activities; ‘‘(f) SPECIAL PROVISION RELATED TO
(II) in subclause (II), by striking the period ‘‘(bb) the lobbying activities of the destina-
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COVID–19 PANDEMIC.—Notwithstanding sec-
at the end and inserting ‘‘; and’’; and tion marketing organization do not comprise tion 1129(a)(9)(A) of this title and subsection
(III) by adding at the end the following: more than 10 percent of the total activities (e) of this section, a plan that provides for
‘‘(III) institutions of the Farm Credit Sys- of the organization; payment of a claim of a kind specified in sec-
tem chartered under the Farm Credit Act of ‘‘(cc) the destination marketing organiza- tion 503(b)(10) of this title may be confirmed
1971 (12 U.S.C. 2001 et seq.) with consolidated tion employs not more than 150 employees; under subsection (b) of this section if the
assets of not less than $10,000,000,000 and less and plan proposes to make payments on account
than $50,000,000,000.’’; and ‘‘(dd) the destination marketing organiza- of such claim when due under the terms of
(ii) in clause (ii)— tion— the loan giving rise to such claim.’’.
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S4758 CONGRESSIONAL RECORD — SENATE August 4, 2020
(4) CONFIRMATION OF PLAN FOR FAMILY day period or, if applicable, later period de- section, on or after the date of enactment of
FARMERS AND FISHERMEN.—Section 1225 of scribed in that clause, the Administrator this Act; and
title 11, United States Code, is amended by shall, during that 30-day (or later) period, (B) shall not apply with respect to—
adding at the end the following: submit to the Committee on Small Business (i) any transaction described in subpara-
‘‘(d) Notwithstanding section 1222(a)(2) of and Entrepreneurship of the Senate and the graph (A) that was made before the date of
this title and subsection (b)(1) of this sec- Committee on Small Business of the House enactment of this Act; or
tion, a plan that provides for payment of a of Representatives a notification that in- (ii) forgiveness under section 1106 of the
claim of a kind specified in section 503(b)(10) cludes a detailed justification for the inabil- CARES Act (15 U.S.C. 9005) or any other pro-
of this title may be confirmed if the plan ity of the Administrator to comply with the vision of law of any loan associated with any
proposes to make payments on account of request or inquiry. transaction described in subparagraph (A)
such claim when due under the terms of the (2) TESTIMONY.—Not later than the date that was made before the date of enactment
loan giving rise to such claim.’’. that is 30 days after the date of enactment of of this Act.
(5) CONFIRMATION OF PLAN FOR INDIVID- this Act, and every quarter thereafter until
UALS.—Section 1325 of title 11, United States (u) COMMITMENT AUTHORITY AND APPRO-
the date that is 2 years after the date of en-
Code, is amended by adding at the end the PRIATIONS.—
actment of this Act, the Administrator and
following: the Secretary of the Treasury shall testify (1) COMMITMENT AUTHORITY.—Section
‘‘(d) Notwithstanding section 1322(a)(2) of 1102(b) of the CARES Act (Public Law 116–
before the Committee on Small Business and
this title and subsection (b)(1) of this sec- 136) is amended—
Entrepreneurship of the Senate and the Com-
tion, a plan that provides for payment of a (A) in paragraph (1)—
mittee on Small Business of the House of
claim of a kind specified in section 503(b)(10) (i) in the paragraph heading, by inserting
Representatives regarding implementation
of this title may be confirmed if the plan ‘‘AND SECOND DRAW’’ after ‘‘PPP’’;
proposes to make payments on account of of this section and the amendments made by
this section. (ii) by striking ‘‘August 8, 2020’’ and insert-
such claim when due under the terms of the ing ‘‘December 31, 2020’’;
loan giving rise to such claim.’’. (t) CONFLICTS OF INTEREST.—
(iii) by striking ‘‘paragraph (36)’’ and in-
(6) EFFECTIVE DATE; SUNSET.— (1) DEFINITIONS.—In this subsection:
serting ‘‘paragraphs (36) and (37)’’; and
(A) EFFECTIVE DATE.—The amendments (A) CONTROLLING INTEREST.—The term
(iv) by striking ‘‘$659,000,000,000’’ and in-
made by paragraphs (1) through (5) shall— ‘‘controlling interest’’ means owning, con-
serting ‘‘$816,690,000,000’’; and
(i) take effect on the date on which the Ad- trolling, or holding not less than 20 percent,
(B) by amending paragraph (2) to read as
ministrator submits to the Director of the by vote or value, of the outstanding amount
follows:
Executive Office for United States Trustees a of any class of equity interest in an entity.
(B) COVERED ENTITY.— ‘‘(2) OTHER 7(A) LOANS.—During fiscal year
written determination that, subject to satis-
(i) DEFINITION.—The term ‘‘covered entity’’ 2020, the amount authorized for commit-
fying any other eligibility requirements, any
means an entity in which a covered indi- ments for section 7(a) of the Small Business
debtor in possession or trustee that is au-
vidual directly or indirectly holds a control- Act (15 U.S.C. 636(a)) under the heading
thorized to operate the business of the debt-
ling interest. ‘Small Business Administration—Business
or under section 1183, 1184, 1203, 1204, or 1304
(ii) TREATMENT OF SECURITIES.—For the Loans Program Account’ in the Financial
of title 11, United States Code, would be eli-
purpose of determining whether an entity is Services and General Government Appropria-
gible for a loan under paragraphs (36) and (37)
a covered entity, the securities owned, con- tions Act, 2020 (division C of Public Law 116–
of section 7(a) of the Small Business Act (15
trolled, or held by 2 or more individuals who 193) shall apply with respect to any commit-
U.S.C. 636(a)); and
are related as described in subparagraph ments under such section 7(a) other than
(ii) apply to any case pending on or com-
(C)(ii) shall be aggregated. under paragraphs (36) and (37) of such section
menced on or after the date described in
(C) COVERED INDIVIDUAL.—The term ‘‘cov- 7(a).’’.
clause (i).
ered individual’’ means— (2) DIRECT APPROPRIATIONS.—
(B) SUNSET.—
(i) the President, the Vice President, the (A) RESCISSION.—With respect to unobli-
(i) IN GENERAL.—If the amendments made
head of an Executive department, or a Mem- gated balances under the heading ‘‘ ‘Small
by this subsection take effect under subpara-
ber of Congress; and Business Administration—Business Loans
graph (A), effective on the date that is 2
(ii) the spouse, child, son-in-law, or daugh- Program Account, CARES Act’’ as of the day
years after the date of enactment of this
ter-in-law, as determined under applicable before the date of enactment of this Act,
Act—
common law, of an individual described in $100,000,000,000 shall be rescinded and depos-
(I) section 364 of title 11, United States
clause (i). ited into the general fund of the Treasury.
Code, is amended by striking subsection (g);
(D) EXECUTIVE DEPARTMENT.—The term (B) NEW DIRECT APPROPRIATIONS FOR PPP
(II) section 503(b) of title 11, United States
LOANS, SECOND DRAW LOANS, AND THE MBDA.—
Code, is amended— ‘‘Executive department’’ has the meaning
given the term in section 101 of title 5, (i) PPP AND SECOND DRAW LOANS.—There is
(aa) in paragraph (8)(B), by adding ‘‘and’’
United States Code. appropriated, out of amounts in the Treas-
at the end;
(E) MEMBER OF CONGRESS.—The term ury not otherwise appropriated, for the fiscal
(bb) in paragraph (9), by striking ‘‘; and’’ at
‘‘Member of Congress’’ means a Member of year ending September 30, 2020, to remain
the end and inserting a period; and
the Senate or House of Representatives, a available until September 30, 2021, for addi-
(cc) by striking paragraph (10);
Delegate to the House of Representatives, tional amounts—
(III) section 1191 of title 11, United States
and the Resident Commissioner from Puerto (I) $257,690,000,000 under the heading
Code, is amended by striking subsection (f);
Rico. ‘‘Small Business Administration—Business
(IV) section 1225 of title 11, United States
(F) EQUITY INTEREST.—The term ‘‘equity Loans Program Account, CARES Act’’ for
Code, is amended by striking subsection (d);
interest’’ means— the cost of guaranteed loans as authorized
and
(i) a share in an entity, without regard to under paragraph (36) and (37) of section 7(a)
(V) section 1325 of title 11, United States
whether the share is— of the Small Business Act (15 U.S.C. 636(a)),
Code, is amended by striking subsection (d).
(I) transferable; or as amended and added by this Act; and
(ii) APPLICABILITY.—Notwithstanding the
(II) classified as stock or anything similar; (II) $10,000,000 under the heading under the
amendments made by clause (i) of this sub-
(ii) a capital or profit interest in a limited heading ‘‘Department of Commerce—Minor-
paragraph, if the amendments made by para-
liability company or partnership; or ity Business Development Agency’’ for mi-
graphs (1), (2), (3), (4), and (5) take effect
(iii) a warrant or right, other than a right nority business centers of the Minority Busi-
under subparagraph (A) of this paragraph,
to convert, to purchase, sell, or subscribe to ness Development Agency to provide tech-
such amendments shall apply to any case
a share or interest described in clause (i) or nical assistance to small business concerns.
under title 11, United States Code, com-
(ii), respectively. (C) AVAILABILITY OF AMOUNTS APPRO-
menced before the date that is 2 years after
PRIATED FOR THE OFFICE OF INSPECTOR GEN-
the date of enactment of this Act. (2) REQUIREMENT.—The principal executive
ERAL.—Section 1107(a)(3) of the CARES Act
(s) OVERSIGHT.— officer and the principal financial officer, or
(1) COMPLIANCE WITH OVERSIGHT REQUIRE- individuals performing similar functions, of (15 U.S.C. 9006(a)(3)) is amended by striking
MENTS.— an entity seeking to enter a transaction ‘‘September 20, 2024’’ and inserting ‘‘ex-
(A) IN GENERAL.—Except as provided in made under paragraph (36) or (37) of section pended’’.
subparagraph (B), on and after the date of 7(a) of the Small Business Act (15 U.S.C. (v) EMERGENCY DESIGNATION.—
enactment of this Act, the Administrator 636(a)), as added and amended by this sec- (1) IN GENERAL.—The amounts provided
shall comply with any data or information tion, shall, before that transaction is ap- under this section are designated as an emer-
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requests or inquiries made by the Comp- proved, disclose to the Administrator wheth- gency requirement pursuant to section 4(g)
troller General of the United States not later er the entity is a covered entity. of the Statutory Pay-As-You-Go Act of 2010
than 30 days (or such later date as the Comp- (3) APPLICABILITY.—The requirement under (2 U.S.C. 933(g)).
troller General may specify) after receiving paragraph (2)— (2) DESIGNATION IN SENATE.—In the Senate,
the request or inquiry. (A) shall apply with respect to any trans- this section is designated as an emergency
(B) EXCEPTION.—If the Administrator is un- action made under paragraph (36) or (37) of requirement pursuant to section 4112(a) of H.
able to comply with a request or inquiry de- section 7(a) of the Small Business Act (15 Con. Res. 71 (115th Congress), the concurrent
scribed in subparagraph (A) within the 30- U.S.C. 636(a)), as added and amended by this resolution on the budget for fiscal year 2018.
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August 4, 2020 CONGRESSIONAL RECORD — SENATE S4759
SA 2508. Mr. RUBIO (for himself and ‘‘(5) the term ‘covered supplier cost’ means ments on covered worker protection expendi-
Ms. COLLINS) submitted an amendment an expenditure made by an entity to a sup- tures,’’ after ‘‘lease obligations,’’; and
intended to be proposed by him to the plier of goods pursuant to a contract in ef- (ii) in paragraph (3)(B), by inserting ‘‘make
fect before February 15, 2020 for the supply of payments on covered operations expendi-
bill S. 178, to condemn gross human goods that are essential to the operations of tures, make payments on covered property
rights violations of ethnic Turkic Mus- the entity at the time at which the expendi- damage costs, make payments on covered
lims in Xinjiang, and calling for an end ture is made;’’; supplier costs, make payments on covered
to arbitrary detention, torture, and (viii) by inserting after paragraph (8), as so worker protection expenditures,’’ after ‘‘rent
harassment of these communities in- redesignated, the following: obligation,’’.
side and outside China; which was or- ‘‘(9) the term ‘covered worker protection (e) LENDER SAFE HARBOR.—Subsection (h)
dered to lie on the table; as follows: expenditure’— of section 1106 of the CARES Act (15 U.S.C.
‘‘(A) means an operating or a capital ex- 9005) is amended to read as follows:
At the appropriate place, insert the fol-
penditure that is required to facilitate the ‘‘(h) HOLD HARMLESS.—
lowing: adaptation of the business activities of an
SEC. ll. SMALL BUSINESS RECOVERY. ‘‘(1) IN GENERAL.—A lender may rely on
entity to comply with requirements estab- any certification or documentation sub-
(a) SHORT TITLE.—This section may be lished or guidance issued by the Department
cited as the ‘‘Continuing the Paycheck Pro- mitted by an applicant for a covered loan or
of Health and Human Services, the Centers an eligible recipient of a covered loan that—
tection Program Act’’. for Disease Control, or the Occupational
(b) DEFINITIONS.—In this section: ‘‘(A) is submitted pursuant to any statu-
Safety and Health Administration during the tory requirement relating to covered loans
(1) ADMINISTRATION; ADMINISTRATOR.—The period beginning on March 1, 2020 and ending
terms ‘‘Administration’’ and ‘‘Adminis- or any rule or guidance issued to carry out
December 31, 2020 related to the maintenance any action relating to covered loans; and
trator’’ mean the Small Business Adminis- of standards for sanitation, social
tration and the Administrator thereof, re- ‘‘(B) attests that the applicant or eligible
distancing, or any other worker or customer recipient, as applicable, has accurately
spectively. safety requirement related to COVID–19;
(2) SMALL BUSINESS CONCERN.—The term verified any certification or documentation
‘‘(B) may include— provided to the lender.
‘‘small business concern’’ has the meaning ‘‘(i) the purchase, maintenance, or renova-
given the term in section 3 of the Small ‘‘(2) NO ENFORCEMENT ACTION.—With re-
tion of assets that create or expand— spect to a lender that relies on a certifi-
Business Act (15 U.S.C. 632). ‘‘(I) a drive-through window facility;
(c) EMERGENCY RULEMAKING AUTHORITY.— cation or documentation described in para-
‘‘(II) an indoor, outdoor, or combined air or
Not later than 30 days after the date of en- graph (1)—
air pressure ventilation or filtration system;
actment of this Act, the Administrator shall ‘‘(A) an enforcement action may not be
‘‘(III) a physical barrier such as a sneeze
issue regulations to carry out this section taken against the lender acting in good faith
guard;
and the amendments made by this section relating to origination or forgiveness of a
‘‘(IV) an indoor, outdoor, or combined com-
without regard to the notice requirements covered loan based on such reliance; and
mercial real property;
under section 553(b) of title 5, United States ‘‘(B) the lender acting in good faith shall
‘‘(V) an onsite or offsite health screening
Code. not be subject to any penalties relating to
capability; or
(d) ADDITIONAL ELIGIBLE EXPENSES.— origination or forgiveness of a covered loan
‘‘(VI) other assets relating to the compli-
(1) ALLOWABLE USE OF PPP LOAN.—Section based on such reliance.’’.
ance with the requirements or guidance de-
7(a)(36)(F)(i) of the Small Business Act (15 scribed in subparagraph (A), as determined (f) SELECTION OF COVERED PERIOD FOR FOR-
U.S.C. 636(a)(36)(F)(i)) is amended— GIVENESS.—Section 1106 of the CARES Act
by the Administrator in consultation with
(A) in subclause (VI), by striking ‘‘and’’ at the Secretary of Health and Human Services (15 U.S.C. 9005) is amended—
the end; and the Secretary of Labor; and (1) by amending paragraph (4) of subsection
(B) in subclause (VII), by striking the pe- ‘‘(ii) the purchase of— (a), as so redesignated by subsection (d) of
riod at the end and inserting a semicolon; ‘‘(I) covered materials described in section this section, to read as follows:
and 328.103(a) of title 44, Code of Federal Regula- ‘‘(4) the term ‘covered period’ means the
(C) by adding at the end the following: tions, or any successor regulation; period—
‘‘(VIII) covered operations expenditures, as ‘‘(II) particulate filtering facepiece res- ‘‘(A) beginning on the date of the origina-
defined in section 1106(a) of the CARES Act pirators approved by the National Institute tion of a covered loan; and
(15 U.S.C. 9005(a)); for Occupational Safety and Health, includ- ‘‘(B) ending on a date selected by the eligi-
‘‘(IX) covered property damage costs, as ing those approved only for emergency use ble recipient of the covered loan that occurs
defined in such section 1106(a); authorization; or during the period—
‘‘(X) covered supplier costs, as defined in ‘‘(III) other kinds of personal protective ‘‘(i) beginning on the date that is 8 weeks
such section 1106(a); and equipment, as determined by the Adminis- after such date of origination; and
‘‘(XI) covered worker protection expendi- trator in consultation with the Secretary of ‘‘(ii) ending on December 31, 2020;’’; and
tures, as defined in such section 1106(a).’’. Health and Human Services and the Sec- (2) by striking subsection (l).
(2) LOAN FORGIVENESS.—Section 1106 of the retary of Labor; and (g) SIMPLIFIED APPLICATION.—Section 1106
CARES Act (15 U.S.C. 9005) is amended— ‘‘(C) does not include residential real prop- of the CARES Act (15 U.S.C. 9005), as amend-
(A) in subsection (a)— erty or intangible property;’’; and ed by subsection (f) of this section, is amend-
(i) by redesignating paragraphs (6), (7), and (ix) in paragraph (11), as so redesignated— ed—
(8) as paragraphs (10), (11), and (12), respec- (I) in subparagraph (C), by striking ‘‘and’’ (1) in subsection (e), in the matter pre-
tively; at the end; ceding paragraph (1), by striking ‘‘An eligi-
(ii) by redesignating paragraph (5) as para- (II) in subparagraph (D), by striking ‘‘and’’ ble’’ and inserting ‘‘Except as provided in
graph (8); at the end; and subsection (l), an eligible’’;
(iii) by redesignating paragraph (4) as para- (III) by adding at the end the following: (2) in subsection (f), by inserting ‘‘or the
graph (6); ‘‘(E) covered operations expenditures; information required under subsection (l), as
(iv) by redesignating paragraph (3) as para- ‘‘(F) covered property damage costs; applicable’’ after ‘‘subsection (e)’’; and
graph (4); ‘‘(G) covered supplier costs; and (3) by adding at the end the following:
(v) by inserting after paragraph (2) the fol- ‘‘(H) covered worker protection expendi- ‘‘(l) SIMPLIFIED APPLICATION.—
lowing: tures; and’’; ‘‘(1) COVERED LOANS UNDER $150,000.—
‘‘(3) the term ‘covered operations expendi- (B) in subsection (b), by adding at the end ‘‘(A) IN GENERAL.—Notwithstanding sub-
ture’ means a payment for any business soft- the following: section (e), with respect to a covered loan
ware or cloud computing service that facili- ‘‘(5) Any covered operations expenditure. made to an eligible recipient that is not
tates business operations, product or service ‘‘(6) Any covered property damage cost. more than $150,000, the covered loan amount
delivery, the processing, payment, or track- ‘‘(7) Any covered supplier cost. shall be forgiven under this section if the eli-
ing of payroll expenses, human resources, ‘‘(8) Any covered worker protection ex- gible recipient—
sales and billing functions, or accounting or penditure.’’; ‘‘(i) signs and submits to the lender an at-
tracking of supplies, inventory, records and (C) in subsection (d)(8), by inserting ‘‘any testation that the eligible recipient made a
expenses;’’; payment on any covered operations expendi- good faith effort to comply with the require-
(vi) by inserting after paragraph (4), as so ture, any payment on any covered property ments under section 7(a)(36) of the Small
redesignated, the following: damage cost, any payment on any covered Business Act (15 U.S.C. 636(a)(36)); and
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‘‘(5) the term ‘covered property damage supplier cost, any payment on any covered ‘‘(ii) for the 1-year period following sub-
cost’ means a cost related to property dam- worker protection expenditure,’’ after ‘‘rent mission of the attestation under clause (i),
age and vandalism or looting due to public obligation,’’; and retains records relevant to the attestation
disturbances that occurred during 2020 that (D) in subsection (e)— that prove compliance with those require-
was not covered by insurance or other com- (i) in paragraph (2), by inserting ‘‘pay- ments.
pensation;’’; ments on covered operations expenditures, ‘‘(B) DEMOGRAPHIC INFORMATION.—An eligi-
(vii) by inserting after paragraph (6), as so payments on covered property damage costs, ble recipient of a covered loan described in
redesignated, the following: payments on covered supplier costs, pay- subparagraph (A) may complete and submit
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