Congressional Record, Senate, August 4, 2020 — Continuing the Paycheck Protection Program Act Amendment
Summary
Pages of the Congressional Record — Senate for August 4, 2020, starting at S4759, printing the text of amendment SA 2508, submitted by Mr. Rubio for himself and Ms. Collins to the bill S. 178 and ordered to lie on the table. The amendment's small business recovery section may be cited as the Continuing the Paycheck Protection Program Act. It would add covered operations expenditures, covered property damage costs, covered supplier costs and covered worker protection expenditures as allowable uses and forgivable costs under section 1106 of the CARES Act (15 U.S.C. 9005), add a lender hold harmless provision, and set a simplified forgiveness application for covered loans under $150,000 and for loans between $150,000 and $2,000,000. It would also add Paycheck Protection Program second draw loans to section 7(a) of the Small Business Act (15 U.S.C. 636(a)).
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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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S4760 CONGRESSIONAL RECORD — SENATE August 4, 2020
any form related to borrower demographic ‘‘(iii) any substantial changes made to the ‘‘(II) includes an organization described in
information. audit plan submitted under subparagraph subparagraph (D)(vii) of paragraph (36) that
‘‘(C) AUDIT.—The Administrator may— (A).’’. is eligible to receive a loan under that para-
‘‘(i) review and audit covered loans de- (h) GROUP INSURANCE PAYMENTS AS PAY- graph and that meets the requirements de-
scribed in subparagraph (A); and ROLL COSTS.—Section scribed in items (aa) and (cc) of subclause (I);
‘‘(ii) in the case of fraud, ineligibility, or 7(a)(36)(A)(viii)(I)(aa)(EE) of the Small Busi- and
other material noncompliance with applica- ness Act (15 U.S.C. ‘‘(III) does not include—
ble loan or loan forgiveness requirements, 636(a)(36)(A)(viii)(I)(aa)(EE)) is amended by ‘‘(aa) an issuer, the securities of which are
modify— inserting ‘‘and other group insurance’’ before listed on an exchange registered a national
‘‘(I) the amount of a covered loan described ‘‘benefits’’. securities exchange under section 6 of the
in subparagraph (A); or (i) PAYCHECK PROTECTION PROGRAM SECOND Securities Exchange Act of 1934 (15 U.S.C.
‘‘(II) the loan forgiveness amount with re- DRAW LOANS.—Section 7(a) of the Small 78f);
spect to a covered loan described in subpara- Business Act (15 U.S.C. 636(a)) is amended by ‘‘(bb) any entity that—
graph (A). adding at the end the following: ‘‘(AA) is a type of business concern de-
‘‘(2) COVERED LOANS BETWEEN $150,000 AND ‘‘(37) PAYCHECK PROTECTION PROGRAM SEC- scribed in subsection (b), (c), (d), (e), (f), (h),
$2,000,000.— OND DRAW LOANS.— (l) (m), (p), (q), (r), or (s) of section 120.110 of
‘‘(A) IN GENERAL.—Notwithstanding sub- ‘‘(A) DEFINITIONS.—In this paragraph— title 13, Code of Federal Regulations, or any
section (e), with respect to a covered loan ‘‘(i) the terms ‘community financial insti- successor regulation;
made to an eligible recipient that is more tutions’, ‘credit union’, ‘eligible self-em- ‘‘(BB) is a type of business concern de-
than $150,000 and not more than $2,000,000— ployed individual’, ‘insured depository insti- scribed in section 120.110(g) of title 13, Code
‘‘(i) the eligible recipient seeking loan for- tution’, ‘nonprofit organization’, ‘payroll of Federal Regulations, or any successor reg-
giveness under this section— costs’, ‘seasonal employer’, and ‘veterans or- ulation, except as otherwise provided in the
‘‘(I) is not required to submit the sup- ganization’ have the meanings given those interim final rule of the Administration en-
porting documentation described in para- terms in paragraph (36), except that ‘eligible titled ‘Business Loan Program Temporary
graph (1) or (2) of subsection (e) or the cer- entity’ shall be substituted for ‘eligible re- Changes; Paycheck Protection Program—Ad-
tification described in subsection (e)(3)(A); cipient’ each place it appears in the defini- ditional Eligibility Criteria and Require-
‘‘(II) shall retain all relevant schedules, tions of those terms; ments for Certain Pledges of Loans’ (85 Fed.
worksheets, and supporting documentation ‘‘(ii) the term ‘covered loan’ means a loan Reg. 21747 (April 20, 2020));
for the 3-year period following submission of made under this paragraph; ‘‘(CC) is a type of business concern de-
the application for loan forgiveness; and ‘‘(iii) the terms ‘covered mortgage obliga- scribed in section 120.110(i) of title 13, Code of
‘‘(III) may complete and submit any form tion’, ‘covered operating expenditure’, ‘cov- Federal Regulations, or any successor regu-
related to borrower demographic informa- ered property damage cost’, ‘covered rent ob- lation, except if the business concern is an
tion; ligation’, ‘covered supplier cost’, ‘covered organization described in paragraph
‘‘(ii) review by the lender of an application utility payment’, and ‘covered worker pro- (36)(D)(vii);
submitted by the eligible recipient for loan tection expenditure’ have the meanings ‘‘(DD) is a type of business concern de-
forgiveness under this section shall be lim- given those terms in section 1106(a) of the scribed in section 120.110(j) of title 13, Code of
ited to whether the lender received a com- CARES Act (15 U.S.C. 9005(a)); Federal Regulations, or any successor regu-
plete application, with all fields completed, ‘‘(iv) the term ‘covered period’ means the lation, except as otherwise provided in the
initialed, or signed, as applicable; and period beginning on the date of the origina- interim final rules of the Administration en-
‘‘(iii) the lender shall— tion of a covered loan and ending on Decem- titled ‘Business Loan Program Temporary
‘‘(I) accept the application submitted by ber 31, 2020; Changes; Paycheck Protection Program—
the eligible recipient for loan forgiveness ‘‘(v) the term ‘eligible entity’— Eligibility of Certain Electric Cooperatives’
under this section; and ‘‘(I) means any business concern, nonprofit (85 Fed. Reg. 29847 (May 19, 2020)) and ‘Busi-
‘‘(II) submit the application to the Admin- organization, veterans organization, Tribal ness Loan Program Temporary Changes;
istrator. business concern, eligible self-employed indi- Paycheck Protection Program—Eligibility
‘‘(B) AUDIT.—The Administrator may— vidual, sole proprietor, independent con- of Certain Telephone Cooperatives’ (85 Fed.
‘‘(i) review and audit covered loans de- tractor, or small agricultural cooperative Reg. 35550 (June 11, 2020)) or any other guid-
scribed in subparagraph (A); and that— ance or rule issued or that may be issued by
‘‘(ii) in the case of fraud, ineligibility, or ‘‘(aa)(AA) with respect to a business con- the Administrator;
other material noncompliance with applica- cern, would qualify as a small business con- ‘‘(EE) is a type of business concern de-
ble loan or loan forgiveness requirements, cern by the annual receipts size standard (if scribed in section 120.110(n) of title 13, Code
modify— applicable) established by section 121.201 of of Federal Regulations, or any successor reg-
‘‘(I) the amount of a covered loan described title 13, Code of Federal Regulations, or any ulation, except as otherwise provided in the
in subparagraph (A); or successor regulation; or interim final rule of the Administration en-
‘‘(II) the loan forgiveness amount with re- ‘‘(BB) if the entity does not qualify as a titled ‘Business Loan Program Temporary
spect to a covered loan described in subpara- small business concern, meets the alter- Changes; Paycheck Protection Program—Ad-
graph (A). native size standard established under sec- ditional Eligibility Revisions to First In-
‘‘(3) AUDIT PLAN.— tion 3(a)(5); terim Final Rule’ (85 Fed. Reg. 38301 (June
‘‘(A) IN GENERAL.—Not later than 30 days ‘‘(bb) employs not more than 300 employ- 26, 2020)) or any other guidance or rule issued
after the date of enactment of the Con- ees; and or that may be issued by the Administrator;
tinuing the Paycheck Protection Program ‘‘(cc)(AA) except as provided in subitems ‘‘(FF) is a type of business concern de-
Act, the Administrator shall submit to the (BB), (CC), and (DD), had gross receipts dur- scribed in section 120.110(o) of title 13, Code
Committee on Small Business and Entrepre- ing the first or second quarter in 2020 that of Federal Regulations, or any successor reg-
neurship of the Senate and the Committee are not less than 35 percent less than the ulation, except as otherwise provided in any
on Small Business of the House of Represent- gross receipts of the entity during the same guidance or rule issued or that may be issued
atives an audit plan that details— quarter in 2019; by the Administrator; or
‘‘(i) the policies and procedures of the Ad- ‘‘(BB) if the entity was not in business dur- ‘‘(GG) is an entity that is organized for re-
ministrator for conducting reviews and au- ing the first or second quarter of 2019, but search or for engaging in advocacy in areas
dits of covered loans; and was in business during the third and fourth such as public policy or political strategy or
‘‘(ii) the metrics that the Administrator quarter of 2019, had gross receipts during the otherwise describes itself as a think tank in
shall use to determine which covered loans first or second quarter of 2020 that are less any public documents;
will be audited for each category of covered than 35 percent of the amount of the gross ‘‘(HH) is an entity that would be described
loans described in paragraphs (1) and (2). receipts of the entity during the third or in the subsections listed in subitems (AA)
‘‘(B) REPORTS.—Not later than 30 days fourth quarter of 2019; through (GG) if the entity were a business
after the date on which the Administrator ‘‘(CC) if the entity was not in business dur- concern; or
submits the audit plan required under sub- ing the first, second, or third quarter of 2019, ‘‘(II) is assigned, or was approved for a loan
paragraph (A), and each month thereafter, but was in business during the fourth quarter under paragraph (36) with, a North American
the Administrator shall submit to the Com- of 2019, had gross receipts during the first or Industry Classification System code begin-
mittee on Small Business and Entrepreneur- second quarter of 2020 that are less than 35 ning with 52;
ship of the Senate and the Committee on percent of the amount of the gross receipts ‘‘(cc) any business concern or entity pri-
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Small Business of the House of Representa- of the entity during the fourth quarter of marily engaged in political or lobbying ac-
tives a report on the review and audit activi- 2019; or tivities, which shall include any entity that
ties of the Administrator under this sub- ‘‘(DD) if the entity was not in business dur- is organized for research or for engaging in
section, which shall include— ing 2019, but was in operation on February advocacy in areas such as public policy or
‘‘(i) the number of active reviews and au- 15, 2020, had gross receipts during the second political strategy or otherwise describes
dits; quarter of 2020 that are less than 35 percent itself as a think tank in any public docu-
‘‘(ii) the number of reviews and audits that of the amount of the gross receipts of the en- ments; or
have been ongoing for more than 60 days; and tity during the first quarter of 2020; ‘‘(dd) any business concern or entity—
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August 4, 2020 CONGRESSIONAL RECORD — SENATE S4761
‘‘(AA) for which an entity created in or or- section for the eligible entity (including any ‘‘(I) the amount described in clause (ii);
ganized under the laws of the People’s Re- affiliates) shall not exceed $10,000,000. and
public of China or the Special Administra- ‘‘(D) EXCEPTION FROM CERTAIN CERTIFI- ‘‘(II) the amount equal to the quotient ob-
tive Region of Hong Kong, or that has sig- CATION REQUIREMENTS.—An eligible entity tained by dividing—
nificant operations in the People’s Republic applying for a covered loan shall not be re- ‘‘(aa) the amount of the covered loan used
of China or the Special Administrative Re- quired to make the certification described in for payroll costs during the covered period;
gion of Hong Kong, owns or holds, directly or subclause (III) or (IV) of paragraph (36)(G)(i). and
indirectly, not less than 20 percent of the ‘‘(E) FEE WAIVER.—With respect to a cov- ‘‘(bb) 0.60.
economic interest of the business concern or ered loan— ‘‘(I) LENDER ELIGIBILITY.—Except as other-
entity, including as equity shares or a cap- ‘‘(i) in lieu of the fee otherwise applicable wise provided in this paragraph, a lender ap-
ital or profit interest in a limited liability under paragraph (23)(A), the Administrator proved to make loans under paragraph (36)
company or partnership; or shall collect no fee; and may make covered loans under the same
‘‘(BB) that retains, as a member of the ‘‘(ii) in lieu of the fee otherwise applicable terms and conditions as in paragraph (36).
board of directors of the business concern, a under paragraph (18)(A), the Administrator ‘‘(J) REIMBURSEMENT FOR LOAN PROCESSING
person who is a resident of the People’s Re- shall collect no fee. AND SERVICING.—The Administrator shall re-
public of China; ‘‘(F) ELIGIBLE CHURCHES AND RELIGIOUS OR- imburse a lender authorized to make a cov-
‘‘(vi) the terms ‘exchange’, ‘issuer’, and ‘se- GANIZATIONS.— ered loan in an amount that is—
curity’ have the meanings given those terms ‘‘(i) SENSE OF CONGRESS.—It is the sense of ‘‘(i) 3 percent of the principal amount of
in section 3(a) of the Securities Exchange Congress that the interim final rule of the the financing of the covered loan up to
Act of 1934 (15 U.S.C. 78c(a)); and Administration entitled ‘Business Loan Pro- $350,000; and
‘‘(vii) the term ‘Tribal business concern’ gram Temporary Changes; Paycheck Protec- ‘‘(ii) 1 percent of the principal amount of
means a Tribal business concern described in tion Program’ (85 Fed. Reg. 20817 (April 15, the financing of the covered loan above
section 31(b)(2)(C). 2020)) properly clarified the eligibility of $350,000, if applicable.
‘‘(B) LOANS.—Except as otherwise provided churches and religious organizations for ‘‘(K) SET ASIDE FOR SMALL ENTITIES.—Not
in this paragraph, the Administrator may loans made under paragraph (36). less than $25,000,000,000 of the total amount
guarantee covered loans to eligible entities ‘‘(ii) APPLICABILITY OF PROHIBITION.—The of covered loans guaranteed by the Adminis-
under the same terms, conditions, and proc- prohibition on eligibility established by sec- trator shall be made to eligible entities with
esses as a loan made under paragraph (36). tion 120.110(k) of title 13, Code of Federal not more than 10 employees as of February
‘‘(C) MAXIMUM LOAN AMOUNT.— Regulations, or any successor regulation, 15, 2020.
‘‘(i) IN GENERAL.—Except as otherwise pro- shall not apply to a covered loan. ‘‘(L) SET ASIDE FOR COMMUNITY FINANCIAL
vided in this subparagraph, the maximum ‘‘(G) GROSS RECEIPTS FOR NONPROFIT AND INSTITUTIONS, SMALL INSURED DEPOSITORY IN-
amount of a covered loan made to an eligible VETERANS ORGANIZATIONS.—For purposes of STITUTIONS, CREDIT UNIONS, AND FARM CREDIT
entity is the lesser of— calculating gross receipts under subpara- SYSTEM INSTITUTIONS.—Not less than
‘‘(I) the product obtained by multiplying— graph (A)(v)(I)(cc) for an eligible entity that $10,000,000,000 of the total amount of covered
‘‘(aa) at the election of the eligible entity, is a nonprofit organization, a veterans orga- loans guaranteed by the Administrator shall
the average total monthly payment for pay- nization, or an organization described in sub- be made by—
roll costs incurred or paid by the eligible en- paragraph (A)(v)(II), gross receipts— ‘‘(i) community financial institutions;
tity during— ‘‘(i) shall include proceeds from fund- ‘‘(ii) insured depository institutions with
‘‘(AA) the 1-year period before the date on raising events, federated campaigns, gifts, consolidated assets of less than
which the loan is made; or donor-advised funds, and funds from similar $10,000,000,000;
‘‘(BB) calendar year 2019; by sources; and ‘‘(iii) credit unions with consolidated as-
‘‘(bb) 2.5; or ‘‘(ii) shall not include— sets of less than $10,000,000,000; and
‘‘(II) $2,000,000. ‘‘(I) Federal grants (excluding any loan for- ‘‘(iv) institutions of the Farm Credit Sys-
‘‘(ii) SEASONAL EMPLOYERS.—The maximum giveness on loans received under paragraph tem chartered under the Farm Credit Act of
amount of a covered loan made to an eligible (36) or this paragraph); 1971 (12 U.S.C. 2001 et seq.) with consolidated
entity that is a seasonal employer is the ‘‘(II) revenues from a supporting organiza- assets of less than $10,000,000,000 (not includ-
lesser of— tion; ing the Federal Agricultural Mortgage Cor-
‘‘(I) the product obtained by multiplying— ‘‘(III) grants from private foundations that poration).
‘‘(aa) at the election of the eligible entity, are disbursed over the course of more than 1 ‘‘(M) PUBLICATION OF GUIDANCE.—Not later
the average total monthly payments for pay- calendar year; or than 10 days after the date of enactment of
roll costs incurred or paid by the eligible en- ‘‘(IV) any contribution of property other this paragraph, the Administrator shall issue
tity— than money, stocks, bonds, and other securi- guidance addressing barriers to accessing
‘‘(AA) for a 12-week period beginning Feb- ties, provided that the non-cash contribution capital for minority, underserved, veteran,
ruary 15, 2019 or March 1, 2019 and ending is not sold by the organization in a trans- and women-owned business concerns for the
June 30, 2019; or action unrelated to the tax-exempt purpose purpose of ensuring equitable access to cov-
‘‘(BB) for a consecutive 12-week period be- of the organization. ered loans.
tween May 1, 2019 and September 15, 2019; by ‘‘(H) LOAN FORGIVENESS.— ‘‘(N) STANDARD OPERATING PROCEDURE.—
‘‘(bb) 2.5; or ‘‘(i) IN GENERAL.—Except as otherwise pro- The Administrator shall, to the maximum
‘‘(II) $2,000,000. vided in this subparagraph, an eligible entity extent practicable, allow a lender approved
‘‘(iii) NEW ENTITIES.—The maximum shall be eligible for forgiveness of indebted- to make covered loans to use existing pro-
amount of a covered loan made to an eligible ness on a covered loan in the same manner gram guidance and standard operating proce-
entity that did not exist during the 1-year as an eligible recipient with respect to a loan dures for loans made under this subsection.
period preceding February 15, 2020 is 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 product obtained by multiplying— 9005). of a covered loan may be used for—
‘‘(aa) the quotient obtained by dividing— ‘‘(ii) FORGIVENESS AMOUNT.—An eligible en- ‘‘(i) lobbying activities, as defined in sec-
‘‘(AA) the sum of the total monthly pay- tity shall be eligible for forgiveness of in- tion 3 of the Lobbying Disclosure Act of 1995
ments by the eligible entity for payroll costs debtedness on a covered loan in an amount (2 U.S.C. 1602);
paid or incurred by the eligible entity as of equal to the sum of the following costs in- ‘‘(ii) lobbying expenditures related to a
the date on which the eligible entity applies curred or expenditures made during the cov- State or local election; or
for the covered loan; by ered period: ‘‘(iii) expenditures designed to influence
‘‘(BB) the number of months in which ‘‘(I) Payroll costs. the enactment of legislation, appropriations,
those payroll costs were paid or incurred; by ‘‘(II) Any payment of interest on any cov- regulation, administrative action, or Execu-
‘‘(bb) 2.5; or ered mortgage obligation (which shall not in- tive order proposed or pending before Con-
‘‘(II) $2,000,000. clude any prepayment of or payment of prin- gress or any State government, State legis-
‘‘(iv) LIMIT FOR MULTIPLE LOCATIONS.—With cipal on a covered mortgage obligation). lature, or local legislature or legislative
respect to an eligible entity with more than ‘‘(III) Any covered operations expenditure. body.’’.
1 physical location, the total amount of all ‘‘(IV) Any covered property damage cost. (j) CONTINUED ACCESS TO THE PAYCHECK
covered loans shall be not more than ‘‘(V) Any payment on any covered rent ob- PROTECTION PROGRAM.—
$2,000,000. ligation. (1) IN GENERAL.—Section 7(a)(36)(E)(ii) of
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‘‘(v) LOAN NUMBER LIMITATION.—An eligible ‘‘(VI) Any covered utility payment. the Small Business Act (15 U.S.C.
entity may only receive 1 covered loan. ‘‘(VII) Any covered supplier cost. 636(a)(36)(E)(ii)) is amended by striking
‘‘(vi) 90 DAY RULE FOR MAXIMUM LOAN ‘‘(VIII) Any covered worker protection ex- ‘‘$10,000,000’’ and inserting ‘‘$2,000,000’’.
AMOUNT.—The maximum aggregate loan penditure. (2) APPLICABILITY OF MAXIMUM LOAN
amount of loans guaranteed under this sub- ‘‘(iii) LIMITATION ON FORGIVENESS FOR ALL AMOUNT CALCULATION.—
section that are approved for an eligible en- ELIGIBLE ENTITIES.—The forgiveness amount (A) DEFINITIONS.—In this paragraph, the
tity (including any affiliates) within 90 days under this subparagraph shall be equal to the terms ‘‘covered loan’’ and ‘‘eligible recipi-
of approval of another loan under this sub- lesser of— ent’’ have the meanings given those terms in
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S4762 CONGRESSIONAL RECORD — SENATE August 4, 2020
section 7(a)(36) of the Small Business Act (15 vided by 12, shall be added to the sum cal- (I) in subclause (I), by striking ‘‘and’’ at
U.S.C. 636(a)(36)). culated under subparagraph (E)(i)(I). the end;
(B) APPLICABILITY.—The amendment made ‘‘(iv) RECALCULATION.—A lender that made (II) in subclause (II), by striking the period
by paragraph (1) shall apply only with re- a covered loan to a covered recipient before at the end and inserting ‘‘; and’’; and
spect to a covered loan applied for by an eli- the date of enactment of this subparagraph (III) by adding at the end the following:
gible recipient on or after the date of enact- may, at the request of the covered recipi- ‘‘(III) institutions of the Farm Credit Sys-
ment of this Act. ent— tem chartered under the Farm Credit Act of
(k) INCREASED ABILITY FOR PAYCHECK PRO- ‘‘(I) recalculate the maximum loan amount 1971 (12 U.S.C. 2001 et seq.) with consolidated
TECTION PROGRAM BORROWERS TO REQUEST AN applicable to that covered loan based on the assets of not less than $10,000,000,000 and less
INCREASE IN LOAN AMOUNT DUE TO UPDATED formula described in clause (ii) or (iii), as ap- than $50,000,000,000.’’; and
REGULATIONS.— plicable, if doing so would result in a larger (ii) in clause (ii)—
(1) DEFINITIONS.—In this subsection, the covered loan amount; and (I) in subclause (II), by striking ‘‘and’’ at
terms ‘‘covered loan’’ and ‘‘eligible recipi- ‘‘(II) provide the covered recipient with ad- the end;
ent’’ have the meanings given those terms in ditional covered loan amounts based on that (II) in subclause (III), by striking the pe-
section 7(a)(36) of the Small Business Act (15 recalculation.’’. riod at the end and inserting ‘‘; and’’; and
U.S.C. 636(a)(36)). (m) FARM CREDIT SYSTEM INSTITUTIONS.— (III) by adding at the end the following:
(2) INCREASED AMOUNT.—Notwithstanding (1) DEFINITION OF FARM CREDIT SYSTEM IN- ‘‘(IV) institutions of the Farm Credit Sys-
STITUTION.—In this subsection, the term tem chartered under the Farm Credit Act of
the interim final rule issued by the Adminis-
‘‘Farm Credit System institution’’— 1971 (12 U.S.C. 2001 et seq.) with consolidated
tration entitled ‘‘Business Loan Program
(A) means an institution of the Farm Cred- assets of less than $10,000,000,000.’’.
Temporary Changes; Paycheck Protection
it System chartered under the Farm Credit
Program—Loan Increases’’ (85 Fed. Reg. (n) DEFINITION OF SEASONAL EMPLOYER.—
Act of 1971 (12 U.S.C. 2001 et seq.); and
29842 (May 19, 2020)), an eligible recipient of (1) PPP LOANS.—Section 7(a)(36)(A) of the
(B) does not include the Federal Agricul-
a covered loan that is eligible for an in- Small Business Act (15 U.S.C. 636(a)(36)(A)) is
tural Mortgage Corporation.
creased covered loan amount as a result of amended—
(2) FACILITATION OF PARTICIPATION IN PPP
any interim final rule that allows for cov- (A) in clause (xi), by striking ‘‘and’’ at the
AND SECOND DRAW LOANS.—
ered loan increases may submit a request for end;
(A) APPLICABLE RULES.—Solely with re-
an increase in the covered loan amount even (B) in clause (xii), by striking the period at
spect to loans under paragraphs (36) and (37)
if— of section 7(a) of the Small Business Act (15 the end and inserting ‘‘; and’’; and
(A) the initial covered loan amount has U.S.C. 636(a)), Farm Credit Administration (C) by adding at the end the following:
been fully disbursed; or regulations and guidance issued as of July ‘‘(xiii) the term ‘seasonal employer’ means
(B) the lender of the initial covered loan 14, 2020, and compliance with such regula- an eligible recipient that—
has submitted to the Administration a Form tions and guidance, shall be deemed func- ‘‘(I) does not operate for more than 7
1502 report related to the covered loan. tionally equivalent to requirements ref- months in any calendar year; or
(l) CALCULATION OF MAXIMUM LOAN AMOUNT erenced in section 3(a)(iii)(II) of the interim ‘‘(II) during the preceding calendar year,
FOR FARMERS AND RANCHERS UNDER THE PAY- final rule of the Administration entitled had gross receipts for any 6 months of that
CHECK PROTECTION PROGRAM.— ‘‘Business Loan Program Temporary year that were not more than 33.33 percent of
(1) IN GENERAL.—Section 7(a)(36) of the Changes; Paycheck Protection Program’’ (85 the gross receipts of the employer for the
Small Business Act (15 U.S.C. 636(a)(36)), as Fed. Reg. 20811 (April 15, 2020)) or any similar other 6 months of that year.’’.
amended by subsection (j) of this section, is requirement referenced in that interim final (2) LOAN FORGIVENESS.—Paragraph (12) of
amended— rule in implementing such paragraph (37). section 1106(a) of the CARES Act (15 U.S.C.
(A) in subparagraph (E), in the matter pre- (B) APPLICABILITY OF CERTAIN LOAN RE- 9005(a)), as so redesignated by subsection
ceding clause (i), by striking ‘‘During’’ and QUIREMENTS.—For purposes of making loans (d)(2) of this section, is amended to read as
inserting ‘‘Except as provided in subpara- under paragraph (36) or (37) of section 7(a) of follows:
graph (T), during’’; and the Small Business Act (15 U.S.C. 636(a)) or ‘‘(12) the terms ‘payroll costs’ and ‘sea-
(B) by adding at the end the following: forgiving those loans in accordance with sec- sonal employer’ have the meanings given
‘‘(T) CALCULATION OF MAXIMUM LOAN tion 1106 of the CARES Act (15 U.S.C. 9005) those terms in section 7(a)(36) of the Small
AMOUNT FOR FARMERS AND RANCHERS.— and subparagraph (H) of such paragraph (37), Business Act (15 U.S.C. 636(a)(36)).’’.
‘‘(i) DEFINITION.—In this subparagraph, the sections 4.13, 4.14, and 4.14A of the Farm
term ‘covered recipient’ means an eligible (o) ELIGIBILITY OF 501(C)(6) ORGANIZATIONS
Credit Act of 1971 (12 U.S.C. 2199, 2202, 2202a)
recipient that— (including regulations issued under those FOR LOANS UNDER THE PAYCHECK PROTECTION
‘‘(I) operates as a sole proprietorship or as sections) shall not apply. PROGRAM.—Section 7(a)(36)(D) of the Small
an independent contractor, or is an eligible (C) RISK WEIGHT.— Business Act (15 U.S.C. 636(a)(36)(D)) is
self-employed individual; (i) IN GENERAL.—With respect to the appli- amended—
‘‘(II) reports farm income or expenses on a cation of Farm Credit Administration cap- (1) in clause (v), by inserting ‘‘or whether
Schedule F (or any equivalent successor ital requirements, a loan described in clause an organization described in clause (vii) em-
schedule); and (ii)— ploys not more than 150 employees,’’ after
‘‘(III) was in business during the period be- (I) shall receive a risk weight of zero per- ‘‘clause (i)(I),’’;
ginning on February 15, 2019 and ending on cent; and (2) in clause (vi), by inserting ‘‘, an organi-
June 30, 2019. (II) shall not be included in the calculation zation described in clause (vii),’’ after ‘‘non-
‘‘(ii) NO EMPLOYEES.—With respect to cov- of any applicable leverage ratio or other ap- profit organization’’; and
ered recipient without employees, the max- plicable capital ratio or calculation. (3) by adding at the end the following:
imum covered loan amount shall be the less- (ii) LOANS DESCRIBED.—A loan referred to ‘‘(vii) ELIGIBILITY FOR CERTAIN 501(C)(6) OR-
er of— in clause (i) is— GANIZATIONS.—
‘‘(I) the sum of— (I) a loan made by a Farm Credit Bank de- ‘‘(I) IN GENERAL.—Except as provided in
‘‘(aa) the product obtained by multi- scribed in section 1.2(a) of the Farm Credit subclause (II), any organization that is de-
plying— Act of 1971 (12 U.S.C. 2002(a)) to a Federal scribed in section 501(c)(6) of the Internal
‘‘(AA) the gross income of the covered re- Land Bank Association, a Production Credit Revenue Code and that is exempt from tax-
cipient in 2019, as reported on a Schedule F Association, or an agricultural credit asso- ation under section 501(a) of such Code (ex-
(or any equivalent successor schedule), that ciation described in that section to make cluding professional sports leagues and orga-
is not more than $100,000, divided by 12; and loans under paragraph (36) or (37) of section nizations with the purpose of promoting or
‘‘(BB) 2.5; and 7(a) of the Small Business Act (15 U.S.C. participating in a political campaign or
‘‘(bb) the outstanding amount of a loan 636(a)) or forgive those loans in accordance other activity) shall be eligible to receive a
under subsection (b)(2) that was made during with section 1106 of the CARES Act (15 covered loan if—
the period beginning on January 31, 2020 and U.S.C. 9005) and subparagraph (H) of such ‘‘(aa) the organization does not receive
ending on April 3, 2020 that the borrower in- paragraph (37); or more than 10 percent of its receipts from lob-
tends to refinance under the covered loan, (II) a loan made by a Federal Land Bank bying activities;
not including any amount of any advance Association, a Production Credit Associa- ‘‘(bb) the lobbying activities of the organi-
under the loan that is not required to be re- tion, an agricultural credit association, or zation do not comprise more than 10 percent
paid; or the bank for cooperatives described in sec- of the total activities of the organization;
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‘‘(II) $2,000,000. tion 1.2(a) of the Farm Credit Act of 1971 (12 and
‘‘(iii) WITH EMPLOYEES.—With respect to a U.S.C. 2002(a)) under paragraph (36) or (37) of ‘‘(cc) the organization employs not more
covered recipient with employees, the max- section 7(a) of the Small Business Act (15 than 150 employees.
imum covered loan amount shall be cal- U.S.C. 636(a)). ‘‘(II) DESTINATION MARKETING ORGANIZA-
culated using the formula described in sub- (D) RESERVATION OF LOAN GUARANTEES.— TIONS.—Notwithstanding subclause (I), dur-
paragraph (E), except that the gross income Section 7(a)(36)(S) of the Small Business Act ing the covered period, any destination mar-
of the covered recipient described in clause (15 U.S.C. 636(a)(36)(S)) is amended— keting organization shall be eligible to re-
(ii)(I)(aa)(AA) of this subparagraph, as di- (i) in clause (i)— ceive a covered loan if—
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August 4, 2020 CONGRESSIONAL RECORD — SENATE S4763
‘‘(aa) the destination marketing organiza- Code, is amended by adding at the end the (A) IN GENERAL.—Except as provided in
tion does not receive more than 10 percent of following: subparagraph (B), on and after the date of
its receipts from lobbying activities; ‘‘(f) SPECIAL PROVISION RELATED TO enactment of this Act, the Administrator
‘‘(bb) the lobbying activities of the destina- COVID–19 PANDEMIC.—Notwithstanding sec- shall comply with any data or information
tion marketing organization do not comprise tion 1129(a)(9)(A) of this title and subsection requests or inquiries made by the Comp-
more than 10 percent of the total activities (e) of this section, a plan that provides for troller General of the United States not later
of the organization; payment of a claim of a kind specified in sec- than 30 days (or such later date as the Comp-
‘‘(cc) the destination marketing organiza- tion 503(b)(10) of this title may be confirmed troller General may specify) after receiving
tion employs not more than 150 employees; under subsection (b) of this section if the the request or inquiry.
and plan proposes to make payments on account (B) EXCEPTION.—If the Administrator is un-
‘‘(dd) the destination marketing organiza- of such claim when due under the terms of able to comply with a request or inquiry de-
tion— the loan giving rise to such claim.’’. scribed in subparagraph (A) within the 30-
‘‘(AA) is described in section 501(c) of the (4) CONFIRMATION OF PLAN FOR FAMILY day period or, if applicable, later period de-
Internal Revenue Code and is exempt from FARMERS AND FISHERMEN.—Section 1225 of scribed in that clause, the Administrator
taxation under section 501(a) of such Code; or title 11, United States Code, is amended by shall, during that 30-day (or later) period,
‘‘(BB) is a quasi-governmental entity or is adding at the end the following: submit to the Committee on Small Business
a political subdivision of a State or local ‘‘(d) Notwithstanding section 1222(a)(2) of and Entrepreneurship of the Senate and the
government, including any instrumentality this title and subsection (b)(1) of this sec- Committee on Small Business of the House
of those entities.’’. tion, a plan that provides for payment of a of Representatives a notification that in-
(p) PROHIBITION ON USE OF LOAN PROCEEDS claim of a kind specified in section 503(b)(10) cludes a detailed justification for the inabil-
FOR LOBBYING ACTIVITIES.—Section of this title may be confirmed if the plan ity of the Administrator to comply with the
7(a)(36)(F) of the Small Business Act (15 proposes to make payments on account of request or inquiry.
U.S.C. 636(a)(36)(F)) is amended by adding at such claim when due under the terms of the (2) TESTIMONY.—Not later than the date
the end the following: loan giving rise to such claim.’’. that is 30 days after the date of enactment of
‘‘(vi) PROHIBITION.—None of the proceeds of (5) CONFIRMATION OF PLAN FOR INDIVID- this Act, and every quarter thereafter until
a covered loan may be used for— UALS.—Section 1325 of title 11, United States the date that is 2 years after the date of en-
‘‘(I) lobbying activities, as defined in sec- Code, is amended by adding at the end the actment of this Act, the Administrator and
tion 3 of the Lobbying Disclosure Act of 1995 following: the Secretary of the Treasury shall testify
(2 U.S.C. 1602); ‘‘(d) Notwithstanding section 1322(a)(2) of before the Committee on Small Business and
‘‘(II) lobbying expenditures related to a this title and subsection (b)(1) of this sec- Entrepreneurship of the Senate and the Com-
State or local election; or tion, a plan that provides for payment of a mittee on Small Business of the House of
‘‘(III) expenditures designed to influence claim of a kind specified in section 503(b)(10) Representatives regarding implementation
the enactment of legislation, appropriations, of this title may be confirmed if the plan of this section and the amendments made by
regulation, administrative action, or Execu- proposes to make payments on account of this section.
tive order proposed or pending before Con- such claim when due under the terms of the (t) CONFLICTS OF INTEREST.—
gress or any State government, State legis- loan giving rise to such claim.’’. (1) DEFINITIONS.—In this subsection:
lature, or local legislature or legislative (6) EFFECTIVE DATE; SUNSET.— (A) CONTROLLING INTEREST.—The term
body.’’. (A) EFFECTIVE DATE.—The amendments ‘‘controlling interest’’ means owning, con-
(q) EFFECTIVE DATE; APPLICABILITY.—The made by paragraphs (1) through (5) shall— trolling, or holding not less than 20 percent,
amendments made to paragraph (36) of sec- (i) take effect on the date on which the Ad- by vote or value, of the outstanding amount
tion 7(a) of the Small Business Act (15 U.S.C. ministrator submits to the Director of the of any class of equity interest in an entity.
636(a)) and title I of the CARES Act (Public Executive Office for United States Trustees a (B) COVERED ENTITY.—
Law 116–136) under this section shall be effec- written determination that, subject to satis- (i) DEFINITION.—The term ‘‘covered entity’’
tive as if included in the CARES Act and fying any other eligibility requirements, any means an entity in which a covered indi-
shall apply to any loan made pursuant to debtor in possession or trustee that is au- vidual directly or indirectly holds a control-
section 7(a)(36) of the Small Business Act (15 thorized to operate the business of the debt- ling interest.
U.S.C. 636(a)(36)). or under section 1183, 1184, 1203, 1204, or 1304 (ii) TREATMENT OF SECURITIES.—For the
(r) BANKRUPTCY PROVISIONS.— of title 11, United States Code, would be eli- purpose of determining whether an entity is
(1) IN GENERAL.—Section 364 of title 11, gible for a loan under paragraphs (36) and (37) a covered entity, the securities owned, con-
United States Code, is amended by adding at of section 7(a) of the Small Business Act (15 trolled, or held by 2 or more individuals who
the end the following: U.S.C. 636(a)); and are related as described in subparagraph
‘‘(g)(1) The court, after notice and a hear- (ii) apply to any case pending on or com- (C)(ii) shall be aggregated.
ing, may authorize a debtor in possession or menced on or after the date described in (C) COVERED INDIVIDUAL.—The term ‘‘cov-
a trustee that is authorized to operate the clause (i). ered individual’’ means—
business of the debtor under section 1183, (B) SUNSET.— (i) the President, the Vice President, the
1184, 1203, 1204, or 1304 of this title to obtain (i) IN GENERAL.—If the amendments made head of an Executive department, or a Mem-
a loan under paragraph (36) or (37) of section ber of Congress; and
by this subsection take effect under subpara-
7(a) of the Small Business Act (15 U.S.C. (ii) the spouse, child, son-in-law, or daugh-
graph (A), effective on the date that is 2
636(a)), and such loan shall be treated as a ter-in-law, as determined under applicable
years after the date of enactment of this
debt to the extent the loan is not forgiven in common law, of an individual described in
Act—
accordance with section 1106 of the CARES
(I) section 364 of title 11, United States clause (i).
Act (15 U.S.C. 9005) or subparagraph (H) of
Code, is amended by striking subsection (g); (D) EXECUTIVE DEPARTMENT.—The term
such paragraph (37), as applicable, with pri-
(II) section 503(b) of title 11, United States ‘‘Executive department’’ has the meaning
ority equal to a claim of the kind specified
Code, is amended— given the term in section 101 of title 5,
in subsection (c)(1) of this section.
‘‘(2) The trustee may incur debt described (aa) in paragraph (8)(B), by adding ‘‘and’’ United States Code.
in paragraph (1) notwithstanding any provi- at the end; (E) MEMBER OF CONGRESS.—The term
sion in a contract, prior order authorizing (bb) in paragraph (9), by striking ‘‘; and’’ at ‘‘Member of Congress’’ means a Member of
the trustee to incur debt under this section, the end and inserting a period; and the Senate or House of Representatives, a
prior order authorizing the trustee to use (cc) by striking paragraph (10); Delegate to the House of Representatives,
cash collateral under section 363, or applica- (III) section 1191 of title 11, United States and the Resident Commissioner from Puerto
ble law that prohibits the debtor from incur- Code, is amended by striking subsection (f); Rico.
ring additional debt. (IV) section 1225 of title 11, United States (F) EQUITY INTEREST.—The term ‘‘equity
‘‘(3) The court shall hold a hearing within Code, is amended by striking subsection (d); interest’’ means—
7 days after the filing and service of the mo- and (i) a share in an entity, without regard to
tion to obtain a loan described in paragraph (V) section 1325 of title 11, United States whether the share is—
(1).’’. Code, is amended by striking subsection (d). (I) transferable; or
(2) ALLOWANCE OF ADMINISTRATIVE EX- (ii) APPLICABILITY.—Notwithstanding the (II) classified as stock or anything similar;
PENSES.—Section 503(b) of title 11, United amendments made by clause (i) of this sub- (ii) a capital or profit interest in a limited
States Code, is amended— paragraph, if the amendments made by para- liability company or partnership; or
(A) in paragraph (8)(B), by striking ‘‘and’’ graphs (1), (2), (3), (4), and (5) take effect (iii) a warrant or right, other than a right
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at the end; under subparagraph (A) of this paragraph, to convert, to purchase, sell, or subscribe to
(B) in paragraph (9), by striking the period such amendments shall apply to any case a share or interest described in clause (i) or
at the end and inserting ‘‘; and’’; and under title 11, United States Code, com- (ii), respectively.
(C) by adding at the end the following: menced before the date that is 2 years after (2) REQUIREMENT.—The principal executive
‘‘(10) any debt incurred under section the date of enactment of this Act. officer and the principal financial officer, or
364(g)(1) of this title.’’. (s) OVERSIGHT.— individuals performing similar functions, of
(3) CONFIRMATION OF PLAN FOR REORGANIZA- (1) COMPLIANCE WITH OVERSIGHT REQUIRE- an entity seeking to enter a transaction
TION.—Section 1191 of title 11, United States MENTS.— made under paragraph (36) or (37) of section
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S4764 CONGRESSIONAL RECORD — SENATE August 4, 2020
7(a) of the Small Business Act (15 U.S.C. (1) IN GENERAL.—The amounts provided ‘‘(ii) the total amount expended by the
636(a)), as added and amended by this sec- under this section are designated as an emer- State for the 1st quarter of fiscal year 2020
tion, shall, before that transaction is ap- gency requirement pursuant to section 4(g) under the State program funded under this
proved, disclose to the Administrator wheth- of the Statutory Pay-As-You-Go Act of 2010 part or any other State program funded with
er the entity is a covered entity. (2 U.S.C. 933(g)). qualified State expenditures (as so defined)
(3) APPLICABILITY.—The requirement under (2) DESIGNATION IN SENATE.—In the Senate, for basic assistance, non-recurrent short-
paragraph (2)— this section is designated as an emergency term benefits, and work supports for eligible
(A) shall apply with respect to any trans- requirement pursuant to section 4112(a) of H. families.
action made under paragraph (36) or (37) of Con. Res. 71 (115th Congress), the concurrent ‘‘(C) AMOUNT OF GRANT.—Subject to para-
section 7(a) of the Small Business Act (15 resolution on the budget for fiscal year 2018. graph (4), the amount of the grant payable to
U.S.C. 636(a)), as added and amended by this a State under this paragraph for a quarter
section, on or after the date of enactment of SA 2509. Mr. GRASSLEY submitted
shall be the amount equal to 80 percent of
this Act; and an amendment intended to be proposed the excess of the expenditures for the quar-
(B) shall not apply with respect to— to amendment SA 2499 proposed by Mr. ter described in clause (i) of subparagraph
(i) any transaction described in subpara- MCCONNELL to the bill S. 178, to con- (B) over the expenditures for the 1st quarter
graph (A) that was made before the date of demn gross human rights violations of of fiscal year 2020 described in clause (ii) of
enactment of this Act; or ethnic Turkic Muslims in Xinjiang, and that subparagraph.
(ii) forgiveness under section 1106 of the calling for an end to arbitrary deten- ‘‘(D) AUTHORITY TO MAKE NECESSARY AD-
CARES Act (15 U.S.C. 9005) or any other pro- tion, torture, and harassment of these JUSTMENTS TO DATA AND COLLECT NEEDED
vision of law of any loan associated with any DATA.—In determining the expenditures of a
transaction described in subparagraph (A)
communities inside and outside China;
which was ordered to lie on the table; State for basic assistance, non-recurrent
that was made before the date of enactment
as follows: short-term benefits, and work supports dur-
of this Act.
At the end, add the following: ing any quarter for which the State requests
(u) COMMITMENT AUTHORITY AND APPRO- funds under this subsection, and for the 1st
PRIATIONS.— SEC. ll. TANF CORONAVIRUS EMERGENCY
FUND. quarter of fiscal year 2020, the Secretary
(1) COMMITMENT AUTHORITY.—Section
(a) TEMPORARY FUND.— may make appropriate adjustments to the
1102(b) of the CARES Act (Public Law 116– data, on a State-by-State basis, to ensure
136) is amended— (1) IN GENERAL.—Section 403 of the Social
Security Act (42 U.S.C. 603) is amended by that the data are comparable. The Secretary
(A) in paragraph (1)— may develop a mechanism for collecting ex-
(i) in the paragraph heading, by inserting adding at the end the following:
‘‘(c) TANF CORONAVIRUS EMERGENCY penditure data, including procedures which
‘‘AND SECOND DRAW’’ after ‘‘PPP’’; allow States to make reasonable estimates,
FUND.—
(ii) by striking ‘‘August 8, 2020’’ and insert-
‘‘(1) ESTABLISHMENT.—There is established and may set deadlines for making revisions
ing ‘‘December 31, 2020’’;
in the Treasury of the United States a fund to the data.
(iii) by striking ‘‘paragraph (36)’’ and in-
which shall be known as the ‘Coronavirus ‘‘(E) AVAILABILITY OF FUNDS.— Funds paid
serting ‘‘paragraphs (36) and (37)’’; and
Emergency Fund for State Temporary As- to a State from a grant made for any quarter
(iv) by striking ‘‘$659,000,000,000’’ and in-
sistance for Needy Families Programs’ (in of fiscal year 2020 or 2021 shall remain avail-
serting ‘‘$816,690,000,000’’; and this subsection referred to as the ‘TANF able for use by the State through September
(B) by amending paragraph (2) to read as Coronavirus Emergency Fund’). 30, 2022.
follows: ‘‘(2) DEPOSITS INTO FUND.— ‘‘(4) GRANT LIMITED TO STATE PROPORTIONAL
‘‘(2) OTHER 7(A) LOANS.—During fiscal year ‘‘(A) IN GENERAL.—Out of any money in the SHARE OF CHILDREN IN POVERTY.—
2020, the amount authorized for commit- Treasury of the United States not otherwise ‘‘(A) IN GENERAL.—With respect to a State,
ments for section 7(a) of the Small Business appropriated, there are appropriated for the
Act (15 U.S.C. 636(a)) under the heading the aggregate amount of the grants payable
period of fiscal years 2020 through 2021, to the State under paragraph (3) for the 3rd
‘Small Business Administration—Business $2,000,000,000 for payment to the TANF
Loans Program Account’ in the Financial and 4th quarters of fiscal year 2020 and each
Coronavirus Emergency Fund. quarter of fiscal year 2021 shall not exceed
Services and General Government Appropria- ‘‘(B) USE OF FUNDS.—Subject to subpara-
tions Act, 2020 (division C of Public Law 116– the State child poverty proportion amount
graph (C), the amounts appropriated to the determined for the State for fiscal year 2020
193) shall apply with respect to any commit- TANF Coronavirus Emergency Fund under
ments under such section 7(a) other than under subparagraph (B).
subparagraph (A) shall be used to make ‘‘(B) STATE CHILD POVERTY PROPORTION
under paragraphs (36) and (37) of such section grants to States in fiscal years 2020 and 2021
7(a).’’. AMOUNT.—The State child poverty proportion
in accordance with the requirements of para- amount determined under this subparagraph
(2) DIRECT APPROPRIATIONS.— graph (3).
(A) RESCISSION.—With respect to unobli- for a State for fiscal year 2020 is the product
‘‘(C) ADMINISTRATION.—The Secretary may
gated balances under the heading ‘‘ ‘Small of—
reserve up to $4,000,000 of the amount appro-
Business Administration—Business Loans ‘‘(i) $2,000,000,000; and
priated for the period of fiscal years 2020
Program Account, CARES Act’’ as of the day ‘‘(ii) the quotient of—
through 2021 under subparagraph (A) for ex-
before the date of enactment of this Act, ‘‘(I) the number of children in families
penses related to administering this sub-
$100,000,000,000 shall be rescinded and depos- section. with income below the poverty line in the
ited into the general fund of the Treasury. ‘‘(D) LIMITATION.—In no case may the Sec- State (as determined under subparagraph
(B) NEW DIRECT APPROPRIATIONS FOR PPP retary make a grant from the TANF (C)); and
LOANS, SECOND DRAW LOANS, AND THE MBDA.— Coronavirus Emergency Fund for a fiscal ‘‘(II) the number of children in families
(i) PPP AND SECOND DRAW LOANS.—There is year after fiscal year 2021. with income below the poverty line in all
appropriated, out of amounts in the Treas- ‘‘(3) GRANTS TO STATES FOR INCREASED EX- States (as so determined).
ury not otherwise appropriated, for the fiscal PENDITURES FOR BASIC ASSISTANCE, NON-RE- ‘‘(C) DATA.—
year ending September 30, 2020, to remain CURRENT SHORT TERM BENEFITS, AND WORK ‘‘(i) IN GENERAL.—For purposes of subpara-
available until September 30, 2021, for addi- SUPPORTS.— graph (B)(ii), subject to clause (ii) of this
tional amounts— ‘‘(A) IN GENERAL.—For each of the 3rd and subparagraph, the number of children in
(I) $257,690,000,000 under the heading 4th quarters of fiscal year 2020 and each families with income below the poverty line
‘‘Small Business Administration—Business quarter of fiscal year 2021, the Secretary shall be determined based on the most recent
Loans Program Account, CARES Act’’ for shall make a grant from the TANF data available from the Bureau of the Cen-
the cost of guaranteed loans as authorized Coronavirus Emergency Fund to each State sus.
under paragraph (36) and (37) of section 7(a) that— ‘‘(ii) OTHER DATA.—The number of children
of the Small Business Act (15 U.S.C. 636(a)), ‘‘(i) requests a grant under this paragraph in families with income below the poverty
as amended and added by this Act; and for the quarter; and line in the case of—
(II) $10,000,000 under the heading under the ‘‘(ii) meets the requirements of subpara- ‘‘(I) Puerto Rico, the United States Virgin
heading ‘‘Department of Commerce—Minor- graph (B) for the quarter. Islands, Guam, and American Samoa may be
ity Business Development Agency’’ for mi- ‘‘(B) INCREASED EXPENDITURES.—A State determined on the basis of the most recent
nority business centers of the Minority Busi- meets the requirements of this subparagraph data are available from the Bureau of the
ness Development Agency to provide tech- for a quarter if— Census or such other poverty data as the
SSpencer on DSK126QN23PROD with SENATE
nical assistance to small business concerns. ‘‘(i) the total amount expended by the Secretary determines appropriate); and
(C) AVAILABILITY OF AMOUNTS APPRO- State for the quarter under the State pro- ‘‘(II) an Indian tribe, shall be determined
PRIATED FOR THE OFFICE OF INSPECTOR GEN- gram funded under this part or any other in proportion to the tribal family assistance
ERAL.—Section 1107(a)(3) of the CARES Act State program funded with qualified State grant paid to the Indian tribe for fiscal year
(15 U.S.C. 9006(a)(3)) is amended by striking expenditures (as defined in section 2020.
‘‘September 20, 2024’’ and inserting ‘‘ex- 409(a)(7)(B)(i)) for basic assistance, non-re- ‘‘(5) DEFINITIONS.—In this subsection:
pended’’. current short-term benefits, and work sup- ‘‘(A) BASIC ASSISTANCE.—The term ‘basic
(v) EMERGENCY DESIGNATION.— ports for eligible families, exceeds assistance’ means assistance including cash,
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