Disaster Loan Accountability And Reform Act

Summary

House Report 119-695, Part 1, 119th Congress, second session, on the Disaster Loan Accountability and Reform Act, submitted June 11, 2026 by Mr. Williams of Texas from the Committee on Small Business to accompany H.R. 4238, with minority views. The bill's printed table of contents lists sections on monthly disaster loan reports, a budget request for disaster loans, limitations on disaster loans, two GAO reports, and budget and forecasting of the cost of direct disaster loans. Its amendments reach 15 U.S.C. 636k(a), section 1105 of title 31, United States Code, and 15 U.S.C. 636(b), and one provision would bar obligating funds for the Administrator's official travel if a required monthly report is late. The minority views state the SBA announced on October 15, 2024 that disaster loan funds were exhausted, and that Congress appropriated more on December 21, 2024.

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119TH CONGRESS
" HOUSE OF REPRESENTATIVES
2d Session

!

REPT. 119–695
Part 1

DISASTER LOAN ACCOUNTABILITY AND REFORM ACT

JUNE 11, 2026.—Committed to the Committee of the Whole House on the State of
the Union and ordered to be printed

Mr. WILLIAMS of Texas, from the Committee on Small Business,
submitted the following

R E P O R T
together with
MINORITY VIEWS
[To accompany H.R. 4238]

The Committee on Small Business, to whom was referred the bill
(H.R. 4238) to improve accountability in the disaster loan program
of the Small Business Administration, and for other purposes, having considered the same, reports favorably thereon with an amendment and recommends that the bill as amended do pass.
CONTENTS

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Page

I. Purpose and Bill Summary ........................................................................
II. Need for Legislation ....................................................................................
III. Hearings .......................................................................................................
IV. Committee Consideration ...........................................................................
V. Committee Votes .........................................................................................
VI. Section-by-Section of H.R. 4238 .................................................................
VII. Congressional Budget Office Cost Estimate .............................................
VIII. New Budget Authority, Entitlement Authority, and Tax Expenditures
IX. Oversight Findings & Recommendations ..................................................
X. Performance Goals and Objectives ............................................................
XI. Statement of Duplication of Federal Programs ........................................
XII. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits .....................................................................................................
XIII. Federal Mandates Statement .....................................................................
XIV. Federal Advisory Committee Statement ...................................................
XV. Applicability to Legislative Branch ...........................................................
XVI. Statement of Constitutional Authority ......................................................
XVII. Changes in Existing Law Made by the Bill, as Reported ........................
XVIII. Committee Correspondence ........................................................................
XIX. Minority Views ............................................................................................

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The amendment is as follows:
Strike all after the enacting clause and insert the following:
SECTION 1. SHORT TITLE.

This Act may be cited as the ‘‘Disaster Loan Accountability and Reform Act’’ or
the ‘‘DLARA’’.
SEC. 2. TABLE OF CONTENTS.

The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.
Sec. 4. Monthly disaster loan reports.
Sec. 5. Budget request relating to disaster loans.
Sec. 6. Limitations on disaster loans.
Sec. 7. GAO report on SBA disaster loan account.
Sec. 8. GAO report on disaster loan changes.
Sec. 9. Budget and forecasting report regarding the cost of direct disaster loans.
SEC. 3. DEFINITIONS.

In this Act—
(1) the terms ‘‘Administration’’ and ‘‘Administrator’’ mean the Small Business
Administration and the Administrator thereof, respectively;
(2) the term ‘‘appropriate committees of Congress’’ means the Committee on
Small Business and Entrepreneurship and the Committee on Appropriations of
the Senate and the Committee on Small Business and the Committee on Appropriations of the House of Representatives; and
(3) the term ‘‘SBA disaster loan’’ means a direct loan authorized by section
7(b) of the Small Business Act (15 U.S.C. 636(b)), other than a loan that was
authorized under section 1110 of the CARES Act (15 U.S.C. 9009).
SEC. 4. MONTHLY DISASTER LOAN REPORTS.

Section 12091(a) of the Small Business Disaster Response and Loan Improvements Act of 2008 (15 U.S.C. 636k(a)) is amended—
(1) in paragraph (1)—
(A) by striking ‘‘during the applicable period for a major disaster’’; and
(B) by striking ‘‘for that major disaster’’;
(2) in paragraph (2)—
(A) in subparagraph (E), by striking ‘‘how long the available funding for
such loans will last’’ and inserting ‘‘the date at which available funding for
such loans will reach 10 percent of the most recent appropriation and the
date at which the funds will be depleted’’;
(B) in subparagraph (H), by striking ‘‘and’’ at the end;
(C) in subparagraph (I), by striking the period at the end and inserting
‘‘; and’’; and
(D) by adding at the end the following:
‘‘(J) a summary detailing any changes to estimates or assumptions on obligations and expenditures, including data supporting these changes.’’; and
(3) by adding at the end the following:
‘‘(3) PROHIBITION ON OFFICIAL TRAVEL.—If the Administrator does not submit
a report required to be submitted under paragraph (1) by the required date, no
funds may be obligated for official travel by the Administrator until the Administrator submits the report.’’.

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SEC. 5. BUDGET REQUEST RELATING TO DISASTER LOANS.

Section 1105 of title 31, United States Code, is amended—
(1) in subsection (a), by adding at the end the following:
‘‘(39) separate statements of—
‘‘(A) the amount of appropriations requested for the fiscal year for which
the budget is submitted for the cost of SBA disaster loans, the 10-year average of the cost of SBA disaster loans, and an explanation for any difference
between the amount requested and the 10-year average cost; and
‘‘(B) the amount of appropriations requested for the fiscal year for which
the budget is submitted for the cost of COVID-EIDL loans, the 10-year average of the cost of COVID-EIDL loans, and an explanation for any difference between the amount requested and the 10-year average cost.
‘‘(40) separate statements of—
‘‘(A) the amount of appropriations requested for the fiscal year for which
the budget is submitted for administrative costs relating to SBA disaster
loans, the 10-year average of such administrative costs, and an explanation
for any difference between the amount requested and the 10-year average
costs; and

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‘‘(B) the amount of appropriations requested for the fiscal year for which
the budget is submitted for administrative costs relating to COVID-EIDL
loans, the 10-year average of such administrative costs, and an explanation
for any difference between the amount requested and the 10-year average
costs.’’; and
(2) by adding at the end the following:
‘‘(j) In paragraphs (39) and (40) of subsection (a)—
‘‘(1) the term ‘COVID-EIDL loan’ means a direct loan under section 7(b) of
the Small Business Act (15 U.S.C. 636(b)) that was authorized under section
1110 of the CARES Act (15 U.S.C. 9009); and
‘‘(2) the term ‘SBA disaster loan’ means a direct loan authorized by section
7(b) of the Small Business Act (15 U.S.C. 636(b)), other than a loan that was
authorized under section 1110 of the CARES Act (15 U.S.C. 9009).’’.
SEC. 6. LIMITATIONS ON DISASTER LOANS.

Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) is amended—
(1) by redesignating the second paragraph designated as paragraph (16), relating to statute of limitations, as added by the COVID–19 EIDL Fraud Statute
of Limitations Act of 2022 (Public Law 117–165; 136 Stat. 1363), as paragraph
(18); and
(2) by inserting after paragraph (16), relating to disaster declarations in rural
areas, as added by the Disaster Assistance for Rural Communities Act (Public
Law 117–249; 136 Stat. 2350), the following:
‘‘(17) REQUIREMENTS WHEN FUNDING IS LOW.—Not later than 24 hours after
the unobligated balance of amounts available for the cost of direct loans authorized by this subsection is less than 10 percent of the 10-year average annual
cost provided in the most recent Presidential budget request required under section 1105(a)(39)(A) of title 31, United States Code, or, if unavailable, the 10year average annual cost for the immediately preceding 10-year period of SBA
disaster loans (as defined in section 1105(j) of such title), the Administrator
shall notify the Committee on Appropriations and the Committee on Small
Business and Entrepreneurship of the Senate and the Committee on Appropriations and the Committee on Small Business of the House of Representatives.’’.
SEC. 7. GAO REPORT ON SBA DISASTER LOAN ACCOUNT.

(a) REPORT.—Not later than 180 days after the date of enactment of this Act, the
Comptroller General of the United States shall submit to the Administrator and the
appropriate committees of Congress a report on—
(1) the average weekly rate at which the Administration obligates the unobligated balance of amounts available for the cost of SBA disaster loans;
(2) the average amount, during the periods beginning on October 1, 2015, and
ending on July 31, 2023, and beginning on July 31, 2023, and ending on the
date of enactment of this Act, respectively, disbursed to a borrower each week,
during the initial 12-week period in which a borrower receives amounts from
an SBA disaster loan, beginning the day after the borrower accepts their loan,
separated by home SBA disaster loan borrowers, business SBA disaster loan
borrowers, and economic injury disaster loan borrowers; and
(3) the average amount of fully disbursed SBA disaster loans, originated during the period beginning on July 31, 2023, and ending on the date of enactment
of this Act, with separate averages for SBA disaster loans delineated by home,
business, and economic injury disaster loans.
(b) RESPONSE.—Not later than 90 days after the date on which the Comptroller
General of the United States submits the report under subsection (a), the Administrator shall submit to the appropriate committees of Congress a response to the report, including an implementation plan for any recommendations in the report.

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SEC. 8. GAO REPORT ON DISASTER LOAN CHANGES.

(a) DEFINITION.—In this section, the term ‘‘covered final rule’’ means—
(1) the final rule entitled ‘‘Disaster Assistance Loan Program Changes to
Maximum Loan Amounts and Miscellaneous Updates’’ (88 Fed. Reg. 39335
(June 16, 2023); RIN 3245–AH91); or
(2) the final rule entitled ‘‘Disaster Assistance Loan Program Changes to Unsecured Loan Amounts and Credit Elsewhere Criteria’’ (89 Fed. Reg. 59826
(July 24, 2024); RIN 3245–AI08).
(b) REPORT.—Not later than 1 year after the date of enactment of this Act, the
Comptroller General of the United States shall submit to the appropriate committees of Congress a report on—
(1) the cost (as defined in section 502 of the Federal Credit Reform Act of
1990 (2 U.S.C. 661a)) of the increase in the home loan lending limits for, the
extension of the deferment period for, the expansion of mitigation options for,

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the modifications to the criteria for determining whether applicants can obtain
credit elsewhere with respect to, the changes to collateral requirements for, and
other changes to the terms and conditions of loans under section 7(b)(1) of the
Small Business Act (15 U.S.C. 636(b)(1)) made by the covered final rules; and
(2) the effect on the subsidy for such loans of the changes contained in the
covered final rules.
SEC. 9. BUDGET AND FORECASTING REPORT REGARDING THE COST OF DIRECT DISASTER
LOANS.

(a) BUDGET FORMULATION AND FORECASTING.—Not later than 30 days after the
date of enactment of this Act, the Administrator shall submit to the appropriate
committees of Congress a report detailing corrections the Administration will make
to improve forecasting, data quality, and budget assumptions relating to budget submissions relating to amounts made available for the cost of SBA disaster loans.
(b) UPDATES.—Not later than 90 days after the date of enactment of this Act, and
every 90 days thereafter until the date that is 90 days after the date on which all
the corrections described in subsection (a) have been implemented, the Administrator shall submit to the appropriate committees of Congress a report—
(1) detailing the actions the Administration has taken to implement the corrections described in subsection (a); and
(2) explaining how each action detailed under paragraph (1) is directly related
to implementing 1 or more corrections described in subsection (a).

I. PURPOSE AND BILL SUMMARY
On June 27, 2025, Rep. Tim Moore (R–NC), Rep. Donald Davis
(D–NC), Rep. Chuck Edwards (R–NC), Del. Kimberlyn King-Hinds
(R–MP), Rep. Carlos Gimenez (R–FL), Rep. Gregory Murphy (R–
NC), Rep. Byron Donalds (R–FL), Rep. Russell Fry (R–SC), Rep.
Juan Ciscomani (R–AZ), Rep. David Rouzer (R–NC), and Rep. Joe
Wilson (R–SC), introduced H.R. 4238, the Disaster Loan Accountability and Reform Act. H.R. 4238 strengthens oversight and transparency of the U.S. Small Business Administration (SBA) disaster
loan program by requiring more detailed funding projections, improved budget justification, and tighter tracking of obligations and
expenditures. The bill also directs the Government Accountability
Office (GAO) to review funding shortfalls, internal controls, and
program management to identify breakdowns and recommend improvements.
II. NEED FOR LEGISLATION
The SBA’s disaster loan program provides low-interest, long-term
loans to businesses, non-profits, and homeowners to support disaster recovery. On October 15, 2024, the SBA announced it had exhausted funds for new disaster loans in the wake of two major hurricanes, Milton and Helene. The SBA failed to promptly and adequately inform Congress of the impending lapse in funding, which
ultimately led to the program’s first funding lapse in history, lasting 68 days. This bill addresses the errors that led to the 2024
funding lapse.

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III. HEARINGS
The Committee on Small Business held the following hearings
examining matters related to H.R. 4238:
• On February 5, 2025, the Committee held a hearing titled
‘‘Hope on the Horizon: Prioritizing Small Business Growth in
the 119th Congress.’’
• On December 16, 2025, the Committee held a hearing titled ‘‘American Resilience: Examining the SBA Disaster Assistance Program.’’

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IV. COMMITTEE CONSIDERATION
The Committee on Small Business met in open session, with a
quorum being present, on May 20, 2026, and ordered H.R. 4238, as
amended, to be reported favorably to the House of Representatives
by a roll call vote of 23 ayes to 0 nos.
V. COMMITTEE VOTES

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Clause 3(b) of rule XIII of the Rules of the House of Representatives requires the Committee to list the recorded votes on the motion to report legislation and amendments thereto. The Committee
voted to favorably report H.R. 4238, as amended, to the House of
Representatives at 4:09 PM.
The Committee considered the following amendments to H.R.
4238:
• Chairman Williams offered an amendment in the nature of
a substitute. This amendment was adopted by voice vote.

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VI. SECTION-BY-SECTION OF H.R. 4238
Section 1—Short title
This Act may be cited as the ‘‘Disaster Loan Accountability and
Reform Act’’ or the ‘‘DLARA.’’
Section 2—Table of contents
This section sets forth a table of contents for the bill.
Section 3—Definitions
This section defines various terms used throughout the bill.
Section 4—Monthly disaster loan reports
This section updates SBA reporting requirements by expanding
monthly disaster loan reports to include more detailed funding projections, updated estimates, and explanations for changes. This section also requires SBA to notify Congress of funding depletion
timelines and imposes a prohibition on official travel if required reports are not submitted.
Section 5—Budgeting request relating to disaster loans
This section requires a budget request relating to disaster loans
to include separate statements comparing requested funding levels
for SBA disaster loans and COVID–EIDL loans against their 10year historical averages. This section also requires similar comparisons for administrative costs and requires explanations for any differences between requested amounts and historical averages.
Section 6—Limitations on disaster loans
This section requires the SBA Administrator to notify the House
and Senate Committees on Small Business and Appropriations
within 24 hours when funding for SBA disaster loans fall below a
specified threshold tied to historical average loan costs.
Section 7—GAO report on SBA disaster loan account
This section requires the GAO to analyze SBA disaster loan disbursement patterns, funding usage rates, and loan characteristics.
This section requires SBA to provide an implementation plan for
each GAO recommendation.

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Section 8—GAO report on disaster loan changes
This section requires GAO to submit a report to Congress that
estimates the cost impact and subsidy effects of specific changes to
SBA disaster loan programs, including changes to loan limits,
deferment periods, collateral requirements, ability to obtain credit
elsewhere standards, and other loan terms.
Section 9—Budget forecasting report regarding the cost of direct disaster loans
This section requires SBA to report on planned corrections to improve forecasting, budgeting, and data quality for the disaster loan
program and to provide regular updates on implementation
progress.

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VII. CONGRESSIONAL BUDGET OFFICE COST ESTIMATE
Pursuant to 3(c)(3) of rule XIII of the Rules of the House of Representatives, the Committee adopts as its own the cost estimate
prepared by the Director of the Congressional Budget Office pursuant to section 402 of the Congressional Budget Act of 1974. At the
time this report was filed, the Committee has requested but not received a cost estimate from the Director of the Congressional Budget Office.
VIII. NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX
EXPENDITURES
Pursuant to clause 3(c)(2) of rule XIII of the Rules of the House
of Representatives and section 308(a)(I) of the Congressional Budget Act of 1974, the Committee provides the following opinion and
estimate with respect to new budget authority, entitlement authority, and tax expenditures. While the Committee has not received an
estimate of new budget authority contained in the cost estimate
prepared by the Director of the Congressional Budget Office pursuant to section 402 of the Congressional Budget Act of 1974, the
Committee does not believe that there will be any new or increased
costs attributable to this legislation.
IX. OVERSIGHT FINDINGS & RECOMMENDATIONS
In accordance with clause 3(c)(1) of rule XIII and clause 2(b)(1)
of rule X of the Rules of the House of Representatives, the oversight findings and recommendations of the Committee on Small
Business with respect to the subject matter contained in H.R. 4238,
as amended, are incorporated into the descriptive portions of this
report.
X. PERFORMANCE GOALS AND OBJECTIVES
With respect to the requirements of clause 3(c)(4) of rule XIII of
the Rules of the House of Representatives, the goal of H.R. 4238,
as amended, is to reduce the risk of future funding gaps and ensure more reliable delivery of disaster relief.
XI. STATEMENT OF DUPLICATION OF FEDERAL PROGRAMS
Pursuant to clause 3(c)(5) of rule XIII of the Rules of the House
of Representatives, no provision of H.R. 4238, as amended, is
known to be duplicative of another Federal program, including any
program that was included in a report to Congress pursuant to section 21 of Public Law 111–139 or the most recent Catalog of Federal Domestic Assistance.

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XII. CONGRESSIONAL EARMARKS, LIMITED TAX BENEFITS, AND
LIMITED TARIFF BENEFITS
With respect to clause 9 of rule XXI of the Rules of the House
of Representatives, the Committee finds that the bill does not contain any congressional earmarks, limited tax benefits, or limited
tariff benefits as defined in clause 9(e), 9(f), or 9(g) of rule XXI of
the Rules of the House of Representatives.

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XIII. FEDERAL MANDATES STATEMENT
The Committee will adopt as its own the estimate of the Federal
mandates prepared by the Director of the Congressional Budget Office pursuant to section 423 of the Unfunded Mandates Reform Act.
XIV. FEDERAL ADVISORY COMMITTEE STATEMENT
No advisory committees within the meaning of section 5(b) of the
Federal Advisory Committee Act were created by this legislation.
XV. APPLICABILITY TO LEGISLATIVE BRANCH
The Committee finds that the legislation does not relate to the
terms and conditions of employment or access to public services or
accommodations within the meaning of section 102(b)(3) of the Congressional Accountability Act.
XVI. STATEMENT OF CONSTITUTIONAL AUTHORITY
Pursuant to clause 7 of rule XII of the Rules of the House, the
Committee finds that the authority for this legislation in Art. I, § 8,
cl.1 of the Constitution of the United States.
XVII. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
In compliance with clause 3(e) of rule XIII of the Rules of the
House of Representatives, changes in existing law made by the bill,
as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italics,
and existing law in which no change is proposed is shown in
roman):
CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
In compliance with clause 3(e) of rule XIII of the Rules of the
House of Representatives, changes in existing law made by the bill,
as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italics,
and existing law in which no change is proposed is shown in
roman):
SECTION 12091 OF THE SMALL BUSINESS DISASTER
RESPONSE AND LOAN IMPROVEMENTS ACT OF 2008

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SEC. 12091. REPORTS ON DISASTER ASSISTANCE
(a) MONTHLY ACCOUNTING REPORT TO CONGRESS.—
(1) REPORTING REQUIREMENTS.—Not later than the fifth busi-

ness day of each month øduring the applicable period for a
major disaster¿, the Administrator shall submit to the Committee on Small Business and Entrepreneurship and the Committee on Appropriations of the Senate and to the Committee
on Small Business and the Committee on Appropriations of the
House of Representatives a report on the operation of the disaster loan program authorized under section 7 of the Small
Business Act (15 U.S.C. 636) øfor that major disaster¿ during
the preceding month.

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(2) CONTENTS.—Each report submitted under paragraph (1)
shall include—
(A) the daily average lending volume, in number of loans
and dollars, and the percent by which each category has
increased or decreased since the previous report under
paragraph (1);
(B) the weekly average lending volume, in number of
loans and dollars, and the percent by which each category
has increased or decreased since the previous report under
paragraph (1);
(C) the amount of funding spent over the month for
loans, both in appropriations and program level, and the
percent by which each category has increased or decreased
since the previous report under paragraph (1);
(D) the amount of funding available for loans, both in
appropriations and program level, and the percent by
which each category has increased or decreased since the
previous report under paragraph (1), noting the source of
any additional funding;
(E) an estimate of øhow long the available funding for
such loans will last¿ the date at which available funding
for such loans will reach 10 percent of the most recent appropriation and the date at which the funds will be depleted, based on the spending rate;
(F) the amount of funding spent over the month for staff,
along with the number of staff, and the percent by which
each category has increased or decreased since the previous report under paragraph (1);
(G) the amount of funding spent over the month for administrative costs, and the percent by which such spending
has increased or decreased since the previous report under
paragraph (1);
(H) the amount of funding available for salaries and expenses combined, and the percent by which such funding
has increased or decreased since the previous report under
paragraph (1), noting the source of any additional funding;
øand¿
(I) an estimate of how long the available funding for salaries and expenses will last, based on the spending
rateø.¿; and
(J) a summary detailing any changes to estimates or assumptions on obligations and expenditures, including data
supporting these changes.
(3) PROHIBITION ON OFFICIAL TRAVEL.—If the Administrator
does not submit a report required to be submitted under paragraph (1) by the required date, no funds may be obligated for
official travel by the Administrator until the Administrator submits the report.
(b) WEEKLY DISASTER UPDATES TO CONGRESS FOR PRESIDENTIALLY DECLARED DISASTERS.—
(1) IN GENERAL.—Each week during a disaster update period,
the Administration shall submit to the Committee on Small
Business and Entrepreneurship of the Senate and to the Committee on Small Business of the House of Representatives a report on the operation of the disaster loan program of the Ad-

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11
ministration for the area in which the President declared a
major disaster.
(2) CONTENTS.—Each report submitted under paragraph (1)
shall include—
(A) the number of Administration staff performing loan
processing, field inspection, and other duties for the declared disaster, and the allocations of such staff in the disaster field offices, disaster recovery centers, workshops,
and other Administration offices nationwide;
(B) the daily number of applications received from applicants in the relevant area, as well as a breakdown of such
figures by State;
(C) the daily number of applications pending application
entry from applicants in the relevant area, as well as a
breakdown of such figures by State;
(D) the daily number of applications withdrawn by applicants in the relevant area, as well as a breakdown of such
figures by State;
(E) the daily number of applications summarily declined
by the Administration from applicants in the relevant
area, as well as a breakdown of such figures by State;
(F) the daily number of applications declined by the Administration from applicants in the relevant area, as well
as a breakdown of such figures by State;
(G) the daily number of applications in process from applicants in the relevant area, as well as a breakdown of
such figures by State;
(H) the daily number of applications approved by the Administration from applicants in the relevant area, as well
as a breakdown of such figures by State;
(I) the daily dollar amount of applications approved by
the Administration from applicants in the relevant area,
as well as a breakdown of such figures by State;
(J) the daily amount of loans dispersed, both partially
and fully, by the Administration to applicants in the relevant area, as well as a breakdown of such figures by
State;
(K) the daily dollar amount of loans disbursed, both partially and fully, from the relevant area, as well as a breakdown of such figures by State;
(L) the number of applications approved, including dollar
amount approved, as well as applications partially and
fully disbursed, including dollar amounts, since the last report under paragraph (1); and
(M) the declaration date, physical damage closing date,
economic injury closing date, and number of counties included in the declaration of a major disaster.
(c) PERIODS WHEN ADDITIONAL DISASTER ASSISTANCE IS MADE
AVAILABLE.—
(1) IN GENERAL.—During any period for which the Administrator declares eligibility for additional disaster assistance
under paragraph (9) of section 7(b) of the Small Business Act
(15 U.S.C. 632(b)), as amended by this Act, the Administrator
shall, on a monthly basis, submit to the Committee on Small
Business and Entrepreneurship of the Senate and to the Com-

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mittee on Small Business of the House of Representatives a report on the disaster assistance operations of the Administration with respect to the applicable major disaster.
(2) CONTENTS.—Each report submitted under paragraph (1)
shall specify—
(A) the number of applications for disaster assistance
distributed;
(B) the number of applications for disaster assistance received;
(C) the average time for the Administration to approve
or disapprove an application for disaster assistance;
(D) the amount of disaster loans approved;
(E) the average time for initial disbursement of disaster
loan proceeds; and
(F) the amount of disaster loan proceeds disbursed.
(d) NOTICE OF THE NEED FOR SUPPLEMENTAL FUNDS.—On the
same date that the Administrator notifies any committee of the
Senate or the House of Representatives that supplemental funding
is necessary for the disaster loan program of the Administration in
any fiscal year, the Administrator shall notify in writing the Committee on Small Business and Entrepreneurship of the Senate and
the Committee on Small Business of the House of Representatives
regarding the need for supplemental funds for that loan program.
(e) REPORT ON CONTRACTING.—
(1) IN GENERAL.—Not later than 6 months after the date on
which the President declares a major disaster, and every 6
months thereafter until the date that is 18 months after the
date on which the major disaster was declared, the Administrator shall submit a report to the Committee on Small Business and Entrepreneurship of the Senate and to the Committee
on Small Business of the House of Representatives regarding
Federal contracts awarded as a result of that major disaster.
(2) CONTENTS.—Each report submitted under paragraph (1)
shall include—
(A) the total number of contracts awarded as a result of
that major disaster;
(B) the total number of contracts awarded to small business concerns as a result of that major disaster;
(C) the total number of contracts awarded to women and
minority-owned businesses as a result of that major disaster; and
(D) the total number of contracts awarded to local businesses as a result of that major disaster.
(f) REPORT ON LOAN APPROVAL RATE.—
(1) IN GENERAL.—Not later than 6 months after the date of
enactment of this Act, the Administrator shall submit a report
to the Committee on Small Business and Entrepreneurship of
the Senate and the Committee on Small Business of the House
of Representatives detailing how the Administration can improve the processing of applications under the disaster loan
program of the Administration.
(2) CONTENTS.—The report submitted under paragraph (1)
shall include—
(A) recommendations, if any, regarding—
(i) staffing levels during a major disaster;

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(ii) how to improve the process for processing, approving, and disbursing loans under the disaster loan
program of the Administration, to ensure that the
maximum assistance is provided to victims in a timely
manner;
(iii) the viability of using alternative methods for assessing the ability of an applicant to repay a loan, including the credit score of the applicant on the day before the date on which the disaster for which the applicant is seeking assistance was declared;
(iv) methods, if any, for the Administration to expedite loss verification and loan processing of disaster
loans during a major disaster for businesses affected
by, and located in the area for which the President declared, the major disaster that are a major source of
employment in the area or are vital to recovery efforts
in the region (including providing debris removal services, manufactured housing, or building materials);
(v) legislative changes, if any, needed to implement
findings from the Accelerated Disaster Response Initiative of the Administration; and
(vi) a description of how the Administration plans to
integrate and coordinate the response to a major disaster with the technical assistance programs of the
Administration; and
(B) the plans of the Administrator for implementing any
recommendation made under subparagraph (A).
(g) REPORTS ON DISASTER ASSISTANCE.—The Small Business Act
is amended by inserting after section 42, as added by this Act, the
following:
‘‘SEC. 43. ANNUAL REPORTS ON DISASTER ASSISTANCE

DMWilson on DSK7X7S144PROD with REPORTS

‘‘Not later than 45 days after the end of a fiscal year, the Administrator shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business
of the House of Representatives a report on the disaster assistance
operations of the Administration for that fiscal year. The report
shall—
‘‘(1) specify the number of Administration personnel involved
in such operations;
‘‘(2) describe any material changes to those operations, such
as changes to technologies used or to personnel responsibilities;
‘‘(3) describe and assess the effectiveness of the Administration in responding to disasters during that fiscal year, including a description of the number and amounts of loans made for
damage and for economic injury; and
‘‘(4) describe the plans of the Administration for preparing to
respond to disasters during the next fiscal year.’’.
TITLE 31, UNITED STATES CODE

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SUBTITLE II—THE BUDGET PROCESS
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CHAPTER 11—THE BUDGET AND FISCAL, BUDGET, AND
PROGRAM INFORMATION

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§ 1105. Budget contents and submission to Congress
(a) On or after the first Monday in January but not later than
the first Monday in February of each year, the President shall submit a budget of the United States Government for the following fiscal year. Each budget shall include a budget message and summary and supporting information. The President shall include in
each budget the following:
(1) information on activities and functions of the Government.
(2) when practicable, information on costs and achievements
of Government programs.
(3) other desirable classifications of information.
(4) a reconciliation of the summary information on expenditures with proposed appropriations.
(5) except as provided in subsection (b) of this section, estimated expenditures and proposed appropriations the President
decides are necessary to support the Government in the fiscal
year for which the budget is submitted and the 4 fiscal years
after that year.
(6) estimated receipts of the Government in the fiscal year
for which the budget is submitted and the 4 fiscal years after
that year under—
(A) laws in effect when the budget is submitted; and
(B) proposals in the budget to increase revenues.
(7) appropriations, expenditures, and receipts of the Government in the prior fiscal year.
(8) estimated expenditures and receipts, and appropriations
and proposed appropriations, of the Government for the current fiscal year.
(9) balanced statements of the—
(A) condition of the Treasury at the end of the prior fiscal year;
(B) estimated condition of the Treasury at the end of the
current fiscal year; and
(C) estimated condition of the Treasury at the end of the
fiscal year for which the budget is submitted if financial
proposals in the budget are adopted.
(10) essential information about the debt of the Government.
(11) other financial information the President decides is desirable to explain in practicable detail the financial condition
of the Government.
(12) for each proposal in the budget for legislation that would
establish or expand a Government activity or function, a table
showing—
(A) the amount proposed in the budget for appropriation
and for expenditure because of the proposal in the fiscal
year for which the budget is submitted; and

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(B) the estimated appropriation required because of the
proposal for each of the 4 fiscal years after that year that
the proposal will be in effect.
(13) an allowance for additional estimated expenditures and
proposed appropriations for the fiscal year for which the budget is submitted.
(14) an allowance for unanticipated uncontrollable expenditures for that year.
(15) a separate statement on each of the items referred to in
section 301(a)(1)–(5) of the Congressional Budget Act of 1974
(2 U.S.C. 632(a)(1)–(5)).
(16) the level of tax expenditures under existing law in the
tax expenditures budget (as defined in section 3(a)(3) of the
Congressional Budget Act of 1974 (2 U.S.C. 622(a)(3)) for the
fiscal year for which the budget is submitted, considering projected economic factors and changes in the existing levels
based on proposals in the budget.
(17) information on estimates of appropriations for the fiscal
year following the fiscal year for which the budget is submitted
for grants, contracts, and other payments under each program
for which there is an authorization of appropriations for that
following fiscal year when the appropriations are authorized to
be included in an appropriation law for the fiscal year before
the fiscal year in which the appropriation is to be available for
obligation.
(18) a comparison of the total amount of budget outlays for
the prior fiscal year, estimated in the budget submitted for
that year, for each major program having relatively uncontrollable outlays with the total amount of outlays for that program
in that year.
(19) a comparison of the total amount of receipts for the
prior fiscal year, estimated in the budget submitted for that
year, with receipts received in that year, and for each major
source of receipts, a comparison of the amount of receipts estimated in that budget with the amount of receipts from that
source in that year.
(20) an analysis and explanation of the differences between
each amount compared under clauses (18) and (19) of this subsection.
(21) a horizontal budget showing—
(A) the programs for meteorology and of the National
Climate Program established under section 5 of the National Climate Program Act (15 U.S.C. 2904);
(B) specific aspects of the program of, and appropriations
for, each agency; and
(C) estimated goals and financial requirements.
(22) a statement of budget authority, proposed budget authority, budget outlays, and proposed budget outlays, and descriptive information in terms of—
(A) a detailed structure of national needs that refers to
the missions and programs of agencies (as defined in section 101 of this title); and
(B) the missions and basic programs.
(23) separate appropriation accounts for appropriations
under the Occupational Safety and Health Act of 1970 (29

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U.S.C. 651 et seq.) and the Federal Mine Safety and Health
Act of 1977 (30 U.S.C. 801 et seq.).
(24) recommendations on the return of Government capital
to the Treasury by a mixed-ownership corporation (as defined
in section 9101(2) of this title) that the President decides are
desirable.
(25) a separate appropriation account for appropriations for
each Office of Inspector General of an establishment defined
under section 401 of title 5.
(26) a separate statement of the amount of appropriations requested for the Office of National Drug Control Policy and each
program of the National Drug Control Program.
(27) a separate statement of the amount of appropriations requested for the Office of Federal Financial Management.
(28) beginning with fiscal year 1999, a Federal Government
performance plan for the overall budget as provided for under
section 1115.
(29) information about the Violent Crime Reduction Trust
Fund, including a separate statement of amounts in that Trust
Fund.
(30) an analysis displaying, by agency, proposed reductions
in full-time equivalent positions compared to the current year’s
level in order to comply with section 5 of the Federal Workforce Restructuring Act of 1994.
(31) a separate statement of the amount of appropriations requested for the Chief Financial Officer in the Executive Office
of the President.
(32) a statement of the levels of budget authority and outlays
for each program assumed to be extended in the baseline as
provided in section 257(b)(2)(A) and for excise taxes assumed
to be extended under section 257(b)(2)(C) of the Balanced
Budget and Emergency Deficit Control Act of 1985.
(33) a separate appropriation account for appropriations for
the Council of the Inspectors General on Integrity and Efficiency, and, included in that account, a separate statement of
the aggregate amount of appropriations requested for each
academy maintained by the Council of the Inspectors General
on Integrity and Efficiency.
(34) with respect to the amount of appropriations requested
for use by the Export-Import Bank of the United States, a separate statement of the amount requested for its program budget, the amount requested for its administrative expenses, and
of the amount requested for its administrative expenses, the
amount requested for technology expenses.
(35)(A)(i) a detailed, separate analysis, by budget function,
by agency, and by initiative area (as determined by the administration) for the prior fiscal year, the current fiscal year, the
fiscal years for which the budget is submitted, and the ensuing
fiscal year identifying the amounts of gross and net appropriations or obligational authority and outlays that contribute to
cybersecurity, with separate displays for mandatory and discretionary amounts, including—
(I) summaries of the total amount of such appropriations
or new obligational authority and outlays requested for cybersecurity;

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(II) an estimate of the current service levels of cybersecurity spending;
(III) the most recent risk assessment and summary of
cybersecurity needs in each initiative area (as determined
by the administration); and
(IV) an estimate of user fees collected by the Federal
Government on behalf of cybersecurity activities;
(ii) with respect to subclauses (I) through (IV) of clause (i),
amounts shall be provided by account for each program, project
and activity; and
(iii) an estimate of expenditures for cybersecurity activities
by State and local governments and the private sector for the
prior fiscal year and the current fiscal year.
(B) Prior to implementing this paragraph, including determining what Federal activities or accounts constitute cybersecurity for purposes of budgetary classification, the Office of
Management and Budget shall consult with the Committees on
Appropriations and the Committees on the Budget of the
House of Representatives and the Senate, the Committee on
Homeland Security of the House of Representatives, and the
Committee on Homeland Security and Government Affairs of
the Senate.
(36) as supplementary materials, a separate analysis of the
budgetary effects for all prior fiscal years, the current fiscal
year, the fiscal year for which the budget is submitted, and ensuing fiscal years of the actions the Secretary of the Treasury
has taken or plans to take using any authority provided in the
Emergency Economic Stabilization Act of 2008, including—
(A) an estimate of the current value of all assets purchased, sold, and guaranteed under the authority provided
in the Emergency Economic Stabilization Act of 2008 using
methodology required by the Federal Credit Reform Act of
1990 (2 U.S.C. 661 et seq.) and section 123 of the Emergency Economic Stabilization Act of 2008;
(B) an estimate of the deficit, the debt held by the public, and the gross Federal debt using methodology required
by the Federal Credit Reform Act of 1990 and section 123
of the Emergency Economic Stabilization Act of 2008;
(C) an estimate of the current value of all assets purchased, sold, and guaranteed under the authority provided
in the Emergency Economic Stabilization Act of 2008 calculated on a cash basis;
(D) a revised estimate of the deficit, the debt held by the
public, and the gross Federal debt, substituting the cashbased estimates in subparagraph (C) for the estimates calculated under subparagraph (A) pursuant to the Federal
Credit Reform Act of 1990 and section 123 of the Emergency Economic Stabilization Act of 2008; and
(E) the portion of the deficit which can be attributed to
any action taken by the Secretary using authority provided
by the Emergency Economic Stabilization Act of 2008 and
the extent to which the change in the deficit since the
most recent estimate is due to a reestimate using the
methodology required by the Federal Credit Reform Act of

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1990 and section 123 of the Emergency Economic Stabilization Act of 2008.
(37) information on estimates of appropriations for the fiscal
year following the fiscal year for which the budget is submitted
for the following accounts of the Department of Veterans Affairs:
(A) Veterans Benefits Administration, Compensation and
Pensions.
(B) Veterans Benefits Administration, Readjustment
Benefits.
(C) Veterans Benefits Administration, Veterans Insurance and Indemnities.
(D) Veterans Health Administration, Medical Services.
(E) Veterans Health Administration, Medical Support
and Compliance.
(F) Veterans Health Administration, Medical Facilities.
(G) Veterans Health Administration, Medical Community Care.
(38) a separate statement for the Crow Settlement Fund established under section 411 of the Crow Tribe Water Rights
Settlement Act of 2010, which shall include the estimated
amount of deposits into the Fund, obligations, and outlays from
the Fund.
(39) separate statements of—
(A) the amount of appropriations requested for the fiscal
year for which the budget is submitted for the cost of SBA
disaster loans, the 10-year average of the cost of SBA disaster loans, and an explanation for any difference between
the amount requested and the 10-year average cost; and
(B) the amount of appropriations requested for the fiscal
year for which the budget is submitted for the cost of
COVID-EIDL loans, the 10-year average of the cost of
COVID-EIDL loans, and an explanation for any difference
between the amount requested and the 10-year average cost.
(40) separate statements of—
(A) the amount of appropriations requested for the fiscal
year for which the budget is submitted for administrative
costs relating to SBA disaster loans, the 10-year average of
such administrative costs, and an explanation for any difference between the amount requested and the 10-year average costs; and
(B) the amount of appropriations requested for the fiscal
year for which the budget is submitted for administrative
costs relating to COVID-EIDL loans, the 10-year average of
such administrative costs, and an explanation for any difference between the amount requested and the 10-year average costs.
(b) Estimated expenditures and proposed appropriations for the
legislative branch and the judicial branch to be included in each
budget under subsection (a)(5) of this section shall be submitted to
the President before October 16 of each year and included in the
budget by the President without change.
(c) The President shall recommend in the budget appropriate action to meet an estimated deficiency when the estimated receipts
for the fiscal year for which the budget is submitted (under laws

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in effect when the budget is submitted) and the estimated amounts
in the Treasury at the end of the current fiscal year available for
expenditure in the fiscal year for which the budget is submitted,
are less than the estimated expenditures for that year. The President shall make recommendations required by the public interest
when the estimated receipts and estimated amounts in the Treasury are more than the estimated expenditures.
(d) When the President submits a budget or supporting information about a budget, the President shall include a statement on all
changes about the current fiscal year that were made before the
budget or information was submitted.
(e)(1) The President shall submit with materials related to each
budget transmitted under subsection (a) on or after January 1,
1985, an analysis for the ensuing fiscal year that shall identify requested appropriations or new obligational authority and outlays
for each major program that may be classified as a public civilian
capital investment program and for each major program that may
be classified as a military capital investment program, and shall
contain summaries of the total amount of such appropriations or
new obligational authority and outlays for public civilian capital investment programs and summaries of the total amount of such appropriations or new obligational authority and outlays for military
capital investment programs. In addition, the analysis under this
paragraph shall contain—
(A) an estimate of the current service levels of public civilian
capital investment and of military capital investment and alternative high and low levels of such investments over a period
of ten years in current dollars and over a period of five years
in constant dollars;
(B) the most recent assessment analysis and summary, in a
standard format, of public civilian capital investment needs in
each major program area over a period of ten years;
(C) an identification and analysis of the principal policy
issues that affect estimated public civilian capital investment
needs for each major program; and
(D) an identification and analysis of factors that affect estimated public civilian capital investment needs for each major
program, including but not limited to the following factors:
(i) economic assumptions;
(ii) engineering standards;
(iii) estimates of spending for operation and maintenance;
(iv) estimates of expenditures for similar investments by
State and local governments; and
(v) estimates of demand for public services derived from
such capital investments and estimates of the service capacity of such investments.
To the extent that any analysis required by this paragraph relates
to any program for which Federal financial assistance is distributed under a formula prescribed by law, such analysis shall be organized by State and within each State by major metropolitan area
if data are available.
(2) For purposes of this subsection, any appropriation, new
obligational authority, or outlay shall be classified as a public civilian capital investment to the extent that such appropriation, au-

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thority, or outlay will be used for the construction, acquisition, or
rehabilitation of any physical asset that is capable of being used to
produce services or other benefits for a number of years and is not
classified as a military capital investment under paragraph (3).
Such assets shall include (but not be limited to)—
(A) roadways or bridges,
(B) airports or airway facilities,
(C) mass transportation systems,
(D) wastewater treatment or related facilities,
(E) water resources projects,
(F) hospitals,
(G) resource recovery facilities,
(H) public buildings,
(I) space or communications facilities,
(J) railroads, and
(K) federally assisted housing.
(3) For purposes of this subsection, any appropriation, new
obligational authority, or outlay shall be classified as a military
capital investment to the extent that such appropriation, authority,
or outlay will be used for the construction, acquisition, or rehabilitation of any physical asset that is capable of being used to produce
services or other benefits for purposes of national defense and security for a number of years. Such assets shall include military bases,
posts, installations, and facilities.
(4) Criteria and guidelines for use in the identification of public
civilian and military capital investments, for distinguishing between public civilian and military capital investments, and for distinguishing between major and nonmajor capital investment programs shall be issued by the Director of the Office of Management
and Budget after consultation with the Comptroller General and
the Congressional Budget Office. The analysis submitted under this
subsection shall be accompanied by an explanation of such criteria
and guidelines.
(5) For purposes of this subsection—
(A) the term ‘‘construction’’ includes the design, planning,
and erection of new structures and facilities, the expansion of
existing structures and facilities, the reconstruction of a project
at an existing site or adjacent to an existing site, and the installation of initial and replacement equipment for such structures and facilities;
(B) the term ‘‘acquisition’’ includes the addition of land, sites,
equipment, structures, facilities, or rolling stock by purchase,
lease-purchase, trade, or donation; and
(C) the term ‘‘rehabilitation’’ includes the alteration of or correction of deficiencies in an existing structure or facility so as
to extend the useful life or improve the effectiveness of the
structure or facility, the modernization or replacement of
equipment at an existing structure or facility, and the modernization of, or replacement of parts for, rolling stock.
(f) The budget transmitted pursuant to subsection (a) for a fiscal
year shall be prepared in a manner consistent with the requirements of the Balanced Budget and Emergency Deficit Control Act
of 1985 that apply to that and subsequent fiscal years.
(g)(1) The Director of the Office of Management and Budget shall
establish the funding for advisory and assistance services for each

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department and agency as a separate object class in each budget
annually submitted to the Congress under this section.
(2)(A) In paragraph (1), except as provided in subparagraph (B),
the term ‘‘advisory and assistance services’’ means the following
services when provided by nongovernmental sources:
(i) Management and professional support services.
(ii) Studies, analyses, and evaluations.
(iii) Engineering and technical services.
(B) In paragraph (1), the term ‘‘advisory and assistance services’’
does not include the following services:
(i) Routine automated data processing and telecommunications services unless such services are an integral part of a
contract for the procurement of advisory and assistance services.
(ii) Architectural and engineering services, as defined in section 1102 of title 40.
(iii) Research on basic mathematics or medical, biological,
physical, social, psychological, or other phenomena.
(h)(1) If there is a medicare funding warning under section
801(a)(2) of the Medicare Prescription Drug, Improvement, and
Modernization Act of 2003 made in a year, the President shall submit to Congress, within the 15-day period beginning on the date of
the budget submission to Congress under subsection (a) for the succeeding year, proposed legislation to respond to such warning.
(2) Paragraph (1) does not apply if, during the year in which the
warning is made, legislation is enacted which eliminates excess
general revenue medicare funding (as defined in section 801(c) of
the Medicare Prescription Drug, Improvement, and Modernization
Act of 2003) for the 7-fiscal-year reporting period, as certified by
the Board of Trustees of each medicare trust fund (as defined in
section 801(c)(5) of such Act) not later than 30 days after the date
of the enactment of such legislation.
(i)(1) The Director of the Office of Management and Budget shall
make publicly available on a website, and continuously update, a
tabular list for each fiscal year of each agency that submits budget
justification materials, which shall include—
(A) the name of the agency;
(B) a unique identifier that identifies the agency;
(C) to the extent practicable, the date on which the budget
justification materials of the agency are first submitted to Congress;
(D) the date on which the budget justification materials of
the agency are posted online under section 3 of the Federal
Funding Accountability and Transparency Act of 2006 (31
U.S.C. 6101 note);
(E) the uniform resource locator where the budget justification materials are published on the website of the agency; and
(F) a single data set that contains the information described
in subparagraphs (A) through (E) with respect to the agency
for all fiscal years for which budget justifications of the agency
are made available under section 3 of the Federal Funding Accountability and Transparency Act of 2006 (31 U.S.C. 6101
note) in a structured data format.
(2)(A) Each agency that submits budget justification materials
shall make the materials available on the website of the agency, in

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accordance with the policies established by the Director of the Office of Management and Budget under subparagraph (B).
(B) Not later than 1 year after the date of enactment of this subsection, the Director of the Office of Management and Budget, in
consultation with the Secretary of the Treasury, shall establish
policies and data standards for agencies relating to making available materials under subparagraph (A), which shall include guidelines for making budget justification materials available in a format aligned with the requirements of section 3(b)(2)(C) of the Federal Funding Accountability and Transparency Act of 2006 (31
U.S.C. 6101 note) and using a uniform resource locator that is in
a consistent format across agencies and is descriptive, memorable,
and pronounceable, such as the format of ‘‘agencyname.gov/budget’’.
(C) If the Director of the Office of Management and Budget
maintains a public website that contains the budget of the United
States Government submitted under subsection (a) and any related
materials, such website shall also contain a link to the tabular list
required under paragraph (1).
(3) In this subsection, the term ‘‘budget justification materials’’
has the meaning given that term in section 3(b)(2) of the Federal
Funding Accountability and Transparency Act of 2006 (31 U.S.C.
6101 note).
(j) In paragraphs (39) and (40) of subsection (a)—
(1) the term ‘‘COVID-EIDL loan’’ means a direct loan under
section 7(b) of the Small Business Act (15 U.S.C. 636(b)) that
was authorized under section 1110 of the CARES Act (15
U.S.C. 9009); and
(2) the term ‘‘SBA disaster loan’’ means a direct loan authorized by section 7(b) of the Small Business Act (15 U.S.C.
636(b)), other than a loan that was authorized under section
1110 of the CARES Act (15 U.S.C. 9009).
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SEC. 7. (a) LOANS TO SMALL BUSINESS CONCERNS; ALLOWABLE
PURPOSES; QUALIFIED BUSINESS; RESTRICTIONS AND LIMITATIONS.—
The Administration is empowered to the extent and in such
amounts as provided in advance in appropriation Acts to make
loans for plant acquisition, construction, conversion, or expansion,
including the acquisition of land, material, supplies, equipment,
and working capital, and to make loans to any qualified small business concern, including those owned by qualified Indian tribes, for
purposes of this Act. Such financings may be made either directly
or in cooperation with banks or other financial institutions through
agreements to participate on an immediate or deferred (guaranteed) basis. These powers shall be subject, however, to the following restrictions, limitations, and provisions:
(1) IN GENERAL.—
(A) CREDIT ELSEWHERE.—
(i) IN GENERAL.—The Administrator has the authority to direct, and conduct oversight for, the methods by
which lenders determine whether a borrower is able to

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obtain credit elsewhere. No financial assistance shall
be extended pursuant to this subsection if the applicant can obtain credit elsewhere. No immediate participation may be purchased unless it is shown that a
deferred participation is not available; and no direct financing may be made unless it is shown that a participation is not available.
(ii) LIQUIDITY.—On and after October 1, 2015, the
Administrator may not guarantee a loan under this
subsection if the lender determines that the borrower
is unable to obtain credit elsewhere solely because the
liquidity of the lender depends upon the guaranteed
portion of the loan being sold on the secondary market.
(B) BACKGROUND CHECKS.—Prior to the approval of any
loan made pursuant to this subsection, or section 503 of
the Small Business Investment Act of 1958, the Administrator may verify the applicant’s criminal background, or
lack thereof, through the best available means, including,
if possible, use of the National Crime Information Center
computer system at the Federal Bureau of Investigation.
(C) LENDING LIMITS OF LENDERS.—On and after October
1, 2015, the Administrator may not guarantee a loan
under this subsection if the sole purpose for requesting the
guarantee is to allow the lender to exceed the legal lending
limit of the lender.
(2) LEVEL OF PARTICIPATION IN GUARANTEED LOANS.—
(A) IN GENERAL.—Except as provided in subparagraphs
(B), (D), (E), and (F), in an agreement to participate in a
loan on a deferred basis under this subsection (including
a loan made under the Preferred Lenders Program), such
participation by the Administration shall be equal to—
(i) 75 percent of the balance of the financing outstanding at the time of disbursement of the loan, if
such balance exceeds $150,000; or
(ii) 85 percent of the balance of the financing outstanding at the time of disbursement of the loan, if
such balance is less than or equal to $150,000.
(B) REDUCED PARTICIPATION UPON REQUEST.—
(i) IN GENERAL.—The guarantee percentage specified
by subparagraph (A) for any loan under this subsection may be reduced upon the request of the participating lender.
(ii) PROHIBITION.—The Administration shall not use
the guarantee percentage requested by a participating
lender under clause (i) as a criterion for establishing
priorities in approving loan guarantee requests under
this subsection.
(C) INTEREST RATE UNDER PREFERRED LENDERS PROGRAM.—
(i) IN GENERAL.—The maximum interest rate for a
loan guaranteed under the Preferred Lenders Program
shall not exceed the maximum interest rate, as determined by the Administration, applicable to other loans
guaranteed under this subsection.

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(ii) EXPORT-IMPORT BANK LENDERS.—Any lender that
is participating in the Delegated Authority Lender
Program of the Export-Import Bank of the United
States (or any successor to the Program) shall be eligible to participate in the Preferred Lenders Program.
(iii) PREFERRED LENDERS PROGRAM DEFINED.—For
purposes of this subparagraph, the term ‘‘Preferred
Lenders Program’’ means any program established by
the Administrator, as authorized under the proviso in
section 5(b)(7), under which a written agreement between the lender and the Administration delegates to
the lender—
(I) complete authority to make and close loans
with a guarantee from the Administration without
obtaining the prior specific approval of the Administration; and
(II) complete authority to service and liquidate
such loans without obtaining the prior specific approval of the Administration for routine servicing
and liquidation activities, but shall not take any
actions creating an actual or apparent conflict of
interest.
(D) PARTICIPATION UNDER EXPORT WORKING CAPITAL PROGRAM.—In an agreement to participate in a loan on a deferred basis under the Export Working Capital Program
established pursuant to paragraph (14)(A), such participation by the Administration shall be 90 percent.
(E) PARTICIPATION IN INTERNATIONAL TRADE LOAN.—In
an agreement to participate in a loan on a deferred basis
under paragraph (16), the participation by the Administration may not exceed 90 percent.
(F) PARTICIPATION IN THE PAYCHECK PROTECTION PROGRAM.—In an agreement to participate in a loan on a deferred basis under paragraph (36), the participation by the
Administration shall be 100 percent.
(3) No loan shall be made under this subsection—
(A) if the total amount outstanding and committed (by
participation or otherwise) to the borrower from the business loan and investment fund established by this Act
would exceed $3,750,000 (or if the gross loan amount
would exceed $5,000,000), except as provided in subparagraph (B);
(B) if the total amount outstanding and committed (on
a deferred basis) solely for the purposes provided in paragraph (16) to the borrower from the business loan and investment fund established by this Act would exceed
$4,500,000 (or if the gross loan amount would exceed
$5,000,000), of which not more than $4,000,000 may be
used for working capital, supplies, or financings under section 7(a)(14) for export purposes; and
(C) if effected either directly or in cooperation with
banks or other lending institutions through agreements to
participate on an immediate basis if the amount would exceed $350,000.
(4) INTEREST RATES AND PREPAYMENT CHARGES.—

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(A) INTEREST RATES.—Notwithstanding the provisions of
the constitution of any State or the laws of any State limiting the rate or amount of interest which may be charged,
taken, received, or reserved, the maximum legal rate of interest on any financing made on a deferred basis pursuant
to this subsection shall not exceed a rate prescribed by the
Administration, and the rate of interest for the Administration’s share of any direct or immediate participation
loan shall not exceed the current average market yield on
outstanding marketable obligations of the United States
with remaining periods to maturity comparable to the average maturities of such loans and adjusted to the nearest
one-eighth of 1 per centum, and an additional amount as
determined by the Administration, but not to exceed 1 per
centum per annum: Provided, That for those loans to assist any public or private organization for the handicapped
or to assist any handicapped individual as provided in
paragraph (10) of this subsection, the interest rate shall be
3 per centum per annum.
(B) PAYMENT OF ACCRUED INTEREST.—
(i) IN GENERAL.—Any bank or other lending institution making a claim for payment on the guaranteed
portion of a loan made under this subsection shall be
paid the accrued interest due on the loan from the earliest date of default to the date of payment of the
claim at a rate not to exceed the rate of interest on the
loan on the date of default, minus one percent.
(ii) LOANS SOLD ON SECONDARY MARKET.—If a loan
described in clause (i) is sold on the secondary market,
the amount of interest paid to a bank or other lending
institution described in that clause from the earliest
date of default to the date of payment of the claim
shall be no more than the agreed upon rate, minus one
percent.
(iii) APPLICABILITY.—Clauses (i) and (ii) shall not
apply to loans made on or after October 1, 2000.
(C) PREPAYMENT CHARGES.—
(i) IN GENERAL.—A borrower who prepays any loan
guaranteed under this subsection shall remit to the
Administration a subsidy recoupment fee calculated in
accordance with clause (ii) if—
(I) the loan is for a term of not less than 15
years;
(II) the prepayment is voluntary;
(III) the amount of prepayment in any calendar
year is more than 25 percent of the outstanding
balance of the loan; and
(IV) the prepayment is made within the first 3
years after disbursement of the loan proceeds.
(ii) SUBSIDY RECOUPMENT FEE.—The subsidy
recoupment fee charged under clause (i) shall be—
(I) 5 percent of the amount of prepayment, if the
borrower prepays during the first year after disbursement;

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(II) 3 percent of the amount of prepayment, if
the borrower prepays during the second year after
disbursement; and
(III) 1 percent of the amount of prepayment, if
the borrower prepays during the third year after
disbursement.
(5) No such loans including renewals and extensions thereof
may be made for a period or periods exceeding twenty-five
years, except that such portion of a loan made for the purpose
of acquiring real property or constructing, converting, or expanding facilities may have a maturity of twenty-five years
plus such additional period as is estimated may be required to
complete such construction, conversion, or expansion.
(6) All loans made under this subsection shall be of such
sound value or so secured as reasonably to assure repayment:
Provided, however, That—
(A) for loans to assist any public or private organization
or to assist any handicapped individual as provided in
paragraph (10) of this subsection any reasonable doubt
shall be resolved in favor of the applicant;
(B) recognizing that greater risk may be associated with
loans for energy measures as provided in paragraph (12)
of this subsection, factors in determining ‘‘sound value’’
shall include, but not be limited to, quality of the product
or service; technical qualifications of the applicant or his
employees; sales projections; and the financial status of
the business concern: Provided further, That such status
need not be as sound as that required for general loans
under this subsection; and
On that portion of the loan used to refinance existing indebtedness held by a bank or other lending institution, the Administration shall limit the amount of deferred participation to 80
per centum of the amount of the loan at the time of disbursement: Provided further, That any authority conferred by this
subparagraph on the Administration shall be exercised solely
by the Administration and shall not be delegated to other than
Administration personnel.
(7)(A) IN GENERAL.—The Administrator may defer payments
on the principal and interest of such loans for a grace period
and use such other methods as it deems necessary and appropriate to assure the successful establishment and operation of
such concern.
(B) DEFERRAL REQUIREMENTS.—With respect to a deferral provided under this paragraph, the Administrator may
allow lenders under this subsection—
(i) to provide full payment deferment relief (including payment of principal and interest) for a period of
not more than 1 year; and
(ii) to provide an additional deferment period if the
borrower provides documentation justifying such additional deferment.
(C) SECONDARY MARKET.—
(i) IN GENERAL.—Except as provided in clause (ii), if
an investor declines to approve a deferral or additional
deferment requested by a lender under subparagraph

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(B), the Administrator shall exercise the authority to
purchase the loan so that the borrower may receive
full payment deferment relief (including payment of
principal and interest) or an additional deferment as
described in subparagraph (B).
(ii) EXCEPTION.—If, in a fiscal year, the Administrator determines that the cost of implementing clause
(i) is greater than zero, the Administrator shall not
implement that clause.
(8) The Administration may make loans under this subsection to small business concerns owned and controlled by disabled veterans (as defined in section 4211(3) of title 38, United
States Code).
(9) The Administration may provide loans under this subsection to finance residential or commercial construction or rehabilitation for sale: Provided, however, That such loans shall
not be used primarily for the acquisition of land.
(10) The Administration may provide guaranteed loans
under this subsection to assist any public or private organization for the handicapped or to assist any handicapped individual, including service-disabled veterans, in establishing, acquiring, or operating a small business concern.
(11) The Administration may provide loans under this subsection to any small business concern, or to any qualified person seeking to establish such a concern when it determines
that such loan will further the policies established in section
2(c) of this Act, with particular emphasis on the preservation
or establishment of small business concerns located in urban
or rural areas with high proportions of unemployed or low-income individuals or owned by low-income individuals.
(12)(A) The Administration may provide loans under this
subsection to assist any small business concern, including start
up, to enable such concern to design architecturally or engineer, manufacture, distribute, market, install, or service energy measures: Provided, however, That such loan proceeds
shall not be used primarily for research and development.
(b) The Administration may provide deferred participation loans
under this subsection to finance the planning, design, or installation of pollution control facilities for the purposes set forth in section 404 of the Small Business Investment Act of 1958. Notwithstanding the limitation expressed in paragraph (3) of this subsection, a loan made under this paragraph may not result in a total
amount outstanding and committed to a borrower from the business loan and investment fund of more than $1,000,000.
(13) The Administration may provide financing under this
subsection to State and local development companies for the
purposes of, and subject to the restrictions in, title V of the
Small Business Investment Act of 1958.
(14) EXPORT WORKING CAPITAL PROGRAM.—
(A) IN GENERAL.—The Administrator may provide extensions of credit, standby letters of credit, revolving lines of
credit for export purposes, and other financing to enable
small business concerns, including small business export
trading companies and small business export management
companies, to develop foreign markets. A bank or partici-

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pating lending institution may establish the rate of interest on such financings as may be legal and reasonable.
(B) TERMS.—
(i) LOAN AMOUNT.—The Administrator may not
guarantee a loan under this paragraph of more than
$5,000,000.
(ii) FEES.—
(I) IN GENERAL.—For a loan under this paragraph, the Administrator shall collect the fee assessed under paragraph (23) not more frequently
than once each year.
(II) UNTAPPED CREDIT.—The Administrator may
not assess a fee on capital that is not accessed by
the small business concern.
(C) CONSIDERATIONS.—When considering loan or guarantee applications, the Administration shall give weight to
export-related benefits, including opening new markets for
United States goods and services abroad and encouraging
the involvement of small businesses, including agricultural
concerns, in the export market.
(D) MARKETING.—The Administrator shall aggressively
market its export financing program to small businesses.
(15)(A) The Administration may guarantee loans under this
subsection—
(i) to qualified employee trusts with respect to a small
business concern for the purpose of purchasing, and for
any transaction costs associated with purchasing, stock of
the concern under a plan approved by the Administrator
which, when carried out, results in the qualified employee
trust owning at least 51 per centum of the stock of the concern; and
(ii) to a small business concern under a plan approved
by the Administrator, if the proceeds from the loan are
only used to make a loan to a qualified employee trust,
and for any transaction costs associated with making that
loan, that results in the qualified employee trust owning
at least 51 percent of the small business concern.
(B) The plan requiring the Administrator’s approval under
subparagraph (A) shall be submitted to the Administration by
the trustee of such trust or by the small business concern with
its application for the guarantee. Such plan shall include an
agreement with the Administrator which is binding on such
trust and on the small business concern and which provides
that—
(i) not later than the date the loan guaranteed under
subparagraph (A) is repaid (or as soon thereafter as is consistent with the requirements of section 401(a) of the Internal Revenue Code of 1954), at least 51 per centum of
the total stock of such concern shall be allocated to the accounts of at least 51 per centum of the employees of such
concern who are entitled to share in such allocation,
(ii) there will be periodic reviews of the role in the management of such concern of employees to whose accounts
stock is allocated,

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(iii) there will be adequate management to assure management expertise and continuity, and
(iv) with respect to a loan made to a trust, or to a cooperative in accordance with paragraph (35)—
(I) a seller of the small business concern may remain involved as an officer, director, or key employee
of the small business concern when a qualified employee trust or cooperative has acquired 100 percent of
ownership of the small business concern; and
(II) any seller of the small business concern who remains as an owner of the small business concern, regardless of the percentage of ownership interest, shall
be required to provide a personal guarantee by the Administration.
(C) In determining whether to guarantee any loan under this
paragraph, the individual business experience or personal assets of employee-owners shall not be used as criteria, except inasmuch as certain employee-owners may assume managerial
responsibilities, in which case business experience may be considered.
(D) For purposes of this paragraph, a corporation which is
controlled by any other person shall be treated as a small business concern if such corporation would, after the plan described in subparagraph (B) is carried out, be treated as a
small business concern.
(E) The Administration shall compile a separate list of applications for assistance under this paragraph, indicating which
applications were accepted and which were denied, and shall
report periodically to the Congress on the status of employeeowned firms assisted by the Administration, which shall include—
(i) the total number of loans made to employee-owned
business concerns that were guaranteed by the Administrator under section 7(a) of the Small Business Act (15
U.S.C. 636(a)) or section 502 of the Small Business Investment Act of 1958 (15 U.S.C. 696), including the number of
loans made—
(I) to small business concerns owned and controlled
by socially and economically disadvantaged individuals; and
(II) to cooperatives;
(ii) the total number of financings made to employeeowned business concerns by companies licensed under section 301(c) of the Small Business Investment Act of 1958
(15 U.S.C. 696(c)), including the number of financings
made—
(I) to small business concerns owned and controlled
by socially and economically disadvantaged individuals; and
(II) to cooperatives; and
(iii) any outreach and educational activities conducted by
the Administration with respect to employee-owned business concerns.
(F) A small business concern that makes a loan to a qualified
employee trust under subparagraph (A)(ii) is not required to

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contain the same terms and conditions as the loan made to the
small business concern that is guaranteed by the Administration under such subparagraph.
(G) With respect to a loan made to a qualified employee trust
under this paragraph, or to a cooperative in accordance with
paragraph (35), the Administrator may, as deemed appropriate, elect to not require any mandatory equity to be provided by the qualified employee trust or cooperative to make
the loan.
(16) INTERNATIONAL TRADE.—
(A) IN GENERAL.—If the Administrator determines that a
loan guaranteed under this subsection will allow an eligible small business concern that is engaged in or adversely
affected by international trade to improve its competitive
position, the Administrator may make such loan to assist
such concern—
(i) in the financing of the acquisition, construction,
renovation, modernization, improvement, or expansion
of productive facilities or equipment to be used in the
United States in the production of goods and services
involved in international trade;
(ii) in the refinancing of existing indebtedness that
is not structured with reasonable terms and conditions, including any debt that qualifies for refinancing
under any other provision of this subsection; or
(iii) by providing working capital.
(B) SECURITY.—
(i) IN GENERAL.—Except as provided in clause (ii),
each loan made under this paragraph shall be secured
by a first lien position or first mortgage on the property or equipment financed by the loan or on other assets of the small business concern.
(ii) EXCEPTION.—A loan under this paragraph may
be secured by a second lien position on the property or
equipment financed by the loan or on other assets of
the small business concern, if the Administrator determines the lien provides adequate assurance of the payment of the loan.
(C) ENGAGED IN INTERNATIONAL TRADE.—For purposes of
this paragraph, a small business concern is engaged in
international trade if, as determined by the Administrator,
the small business concern is in a position to expand existing export markets or develop new export markets.
(D) ADVERSELY AFFECTED BY INTERNATIONAL TRADE.—
For purposes of this paragraph, a small business concern
is adversely affected by international trade if, as determined by the Administrator, the small business concern—
(i) is confronting increased competition with foreign
firms in the relevant market; and
(ii) is injured by such competition.
(E) FINDINGS BY CERTAIN FEDERAL AGENCIES.—For purposes of subparagraph (D)(ii) the Administrator shall accept any finding of injury by the International Trade Commission or any finding of injury by the Secretary of Com-

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merce pursuant to chapter 3 of title II of the Trade Act of
1974.
(F) LIST OF EXPORT FINANCE LENDERS.—
(i) PUBLICATION OF LIST REQUIRED.—The Administrator shall publish an annual list of the banks and
participating lending institutions that, during the 1year period ending on the date of publication of the
list, have made loans guaranteed by the Administration under—
(I) this paragraph;
(II) paragraph (14); or
(III) paragraph (34).
(ii) AVAILABILITY OF LIST.—The Administrator
shall—
(I) post the list published under clause (i) on the
website of the Administration; and
(II) make the list published under clause (i)
available, upon request, at each district office of
the Administration.
(17) The Administration shall authorize lending institutions
and other entities in addition to banks to make loans authorized under this subsection.
(18) GUARANTEE FEES.—
(A) IN GENERAL.—With respect to each loan guaranteed
under this subsection (other than a loan that is repayable
in 1 year or less), the Administration shall collect a guarantee fee, which shall be payable by the participating lender, and may be charged to the borrower, as follows:
(i) A guarantee fee not to exceed 2 percent of the deferred participation share of a total loan amount that
is not more than $150,000.
(ii) A guarantee fee not to exceed 3 percent of the
deferred participation share of a total loan amount
that is more than $150,000, but not more than
$700,000.
(iii) A guarantee fee not to exceed 3.5 percent of the
deferred participation share of a total loan amount
that is more than $700,000.
(iv) In addition to the fee under clause (iii), a guarantee fee equal to 0.25 percent of any portion of the
deferred participation share that is more than
$1,000,000.
(B) RETENTION OF CERTAIN FEES.—Lenders participating
in the programs established under this subsection may retain not more than 25 percent of a fee collected under subparagraph (A)(i).
(19)(A) In addition to the Preferred Lenders Program authorized by the proviso in section 5(b)(7), the Administration is authorized to establish a Certified Lenders Program for lenders
who establish their knowledge of Administration laws and regulations concerning the guaranteed loan program and their
proficiency in program requirements. The designation of a
lender as a certified lender shall be suspended or revoked at
any time that the Administration determines that the lender
is not adhering to its rules and regulations or that the loss ex-

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perience of the lender is excessive as compared to other lenders, but such suspension or revocation shall not affect any outstanding guarantee.
(B) In order to encourage all lending institutions and other
entities making loans authorized under this subsection to provide loans of $50,000 or less in guarantees to eligible small
business loan applicants, the Administration shall develop and
allow participating lenders to solely utilize a uniform and simplified loan form for such loans.
(C) Authority to liquidate loans.—
(i) IN GENERAL.—The Administrator may permit
lenders participating in the Certified Lenders Program
to liquidate loans made with a guarantee from the Administration pursuant to a liquidation plan approved
by the Administrator.
(ii) Automatic approval.—If the Administrator does
not approve or deny a request for approval of a liquidation plan within 10 business days of the date on
which the request is made (or with respect to any routine liquidation activity under such a plan, within 5
business days) such request shall be deemed to be approved.
(20)(A) The Administration is empowered to make loans either directly or in cooperation with banks or other financial institutions through agreements to participate on an immediate
or deferred (guaranteed) basis to small business concerns eligible for assistance under subsection (j)(10) and section 8(a).
Such assistance may be provided only if the Administration determines that—
(i) the type and amount of such assistance requested by
such concern is not otherwise available on reasonable
terms from other sources;
(ii) with such assistance such concern has a reasonable
prospect for operating soundly and profitably within a reasonable period of time;
(iii) the proceeds of such assistance will be used within
a reasonable time for plant construction, conversion, or expansion, including the acquisition of equipment, facilities,
machinery, supplies, or material or to supply such concern
with working capital to be used in the manufacture of articles, equipment, supplies, or material for defense or civilian production or as may be necessary to insure a well-balanced national economy; and
(iv) such assistance is of such sound value as reasonably
to assure that the terms under which it is provided will
not be breached by the small business concern.
(B)(i) No loan shall be made under this paragraph if the total
amount outstanding and committed (by participation or otherwise) to the borrower would exceed $750,000.
(ii) Subject to the provisions of clause (i), in agreements to
participate in loans on a deferred (guaranteed) basis, participation by the Administration shall be not less than 85 per centum of the balance of the financing outstanding at the time of
disbursement.

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(iii) The rate of interest on financings made on a deferred
(guaranteed) basis shall be legal and reasonable.
(iv) Financings made pursuant to this paragraph shall be
subject to the following limitations:
(I) No immediate participation may be purchased unless
it is shown that a deferred participation is not available.
(II) No direct financing may be made unless it is shown
that a participation is unavailable.
(C) A direct loan or the Administration’s share of an immediate participation loan made pursuant to this paragraph shall
be any secured debt instrument—
(i) that is subordinated by its terms to all other borrowings of the issuer;
(ii) the rate of interest on which shall not exceed the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the average maturities of such loan
and adjusted to the nearest one-eighth of 1 per centum;
(iii) the term of which is not more than twenty-five
years; and
(iv) the principal on which is amortized at such rate as
may be deemed appropriate by the Administration, and
the interest on which is payable not less often than annually.
(21)(A) The Administration may make loans on a guaranteed
basis under the authority of this subsection—
(i) to a small business concern that has been (or can reasonably be expected to be) detrimentally affected by—
(I) the closure (or substantial reduction) of a Department
of Defense installation; or
(II) the termination (or substantial reduction) of a Department of Defense program on which such small business was a prime contractor or subcontractor (or supplier)
at any tier; or
(ii) to a qualified individual or a veteran seeking to establish
(or acquire) and operate a small business concern.
(B) Recognizing that greater risk may be associated with a loan
to a small business concern described in subparagraph (A)(i), any
reasonable doubts concerning the firm’s proposed business plan for
transition to nondefense-related markets shall be resolved in favor
of the loan applicant when making any determination regarding
the sound value of the proposed loan in accordance with paragraph
(6).
(C) Loans pursuant to this paragraph shall be authorized in such
amounts as provided in advance in appropriation Acts for the purposes of loans under this paragraph.
(D) For purposes of this paragraph a qualified individual is—
(i) a member of the Armed Forces of the United States, honorably discharged from active duty involuntarily or pursuant to
a program providing bonuses or other inducements to encourage voluntary separation or early retirement;
(ii) a civilian employee of the Department of Defense involuntarily separated from Federal service or retired pursuant to
a program offering inducements to encourage early retirement;
or

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(iii) an employee of a prime contractor, subcontractor, or supplier at any tier of a Department of Defense program whose
employment is involuntarily terminated (or voluntarily terminated pursuant to a program offering inducements to encourage voluntary separation or early retirement) due to the termination (or substantial reduction) of a Department of Defense
program.
(E) JOB CREATION AND COMMUNITY BENEFIT.—In providing
assistance under this paragraph, the Administration shall develop procedures to ensure, to the maximum extent practicable,
that such assistance is used for projects that—
(i) have the greatest potential for—
(I) creating new jobs for individuals whose employment is involuntarily terminated due to reductions in
Federal defense expenditures; or
(II) preventing the loss of jobs by employees of small
business concerns described in subparagraph (A)(i);
and
(ii) have substantial potential for stimulating new economic activity in communities most affected by reductions
in Federal defense expenditures.
(22) The Administration is authorized to permit participating
lenders to impose and collect a reasonable penalty fee on late
payments of loans guaranteed under this subsection in an
amount not to exceed 5 percent of the monthly loan payment
per month plus interest.
(23) YEARLY FEE.—
(A) IN GENERAL.—With respect to each loan approved
under this subsection, the Administration shall assess, collect, and retain a fee, not to exceed 0.55 percent per year
of the outstanding balance of the deferred participation
share of the loan, in an amount established once annually
by the Administration in the Administration’s annual
budget request to Congress, as necessary to reduce to zero
the cost to the Administration of making guarantees under
this subsection. As used in this paragraph, the term ‘‘cost’’
has the meaning given that term in section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a).
(B) PAYER.—The yearly fee assessed under subparagraph (A) shall be payable by the participating lender and
shall not be charged to the borrower.
(C) LOWERING OF BORROWER FEES.—If the Administration determines that fees paid by lenders and by small
business borrowers for guarantees under this subsection
may be reduced, consistent with reducing to zero the cost
to the Administration of making such guarantees—
(i) the Administration shall first consider reducing
fees paid by small business borrowers under clauses (i)
through (iii) of paragraph (18)(A), to the maximum extent possible; and
(ii) fees paid by small business borrowers shall not
be increased above the levels in effect on the date of
enactment of this subparagraph.
(24) NOTIFICATION REQUIREMENT.—The Administration shall
notify the Committees on Small Business of the Senate and the

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House of Representatives not later than 15 days before making
any significant policy or administrative change affecting the
operation of the loan program under this subsection.
(25) LIMITATION ON CONDUCTING PILOT PROJECTS.—
(A) IN GENERAL.—Not more than 10 percent of the total
number of loans guaranteed in any fiscal year under this
subsection may be awarded as part of a pilot program
which is commenced by the Administrator on or after October 1, 1996.
(B) PILOT PROGRAM DEFINED.—In this paragraph, the
term ‘‘pilot program’’ means any lending program initiative, project, innovation, or other activity not specifically
authorized by law.
(C) LOW DOCUMENTATION LOAN PROGRAM.—The Administrator may carry out the low documentation loan program
for loans of $100,000 or less only through lenders with significant experience in making small business loans. Not
later than 90 days after the date of enactment of this subsection, the Administrator shall promulgate regulations
defining the experience necessary for participation as a
lender in the low documentation loan program.
(26) CALCULATION OF SUBSIDY RATE.—All fees, interest, and
profits received and retained by the Administration under this
subsection shall be included in the calculations made by the
Director of the Office of Management and Budget to offset the
cost (as that term is defined in section 502 of the Federal Credit Reform Act of 1990) to the Administration of purchasing and
guaranteeing loans under this Act.
(28) LEASING.—In addition to such other lease arrangements
as may be authorized by the Administration, a borrower may
permanently lease to one or more tenants not more than 20
percent of any property constructed with the proceeds of a loan
guaranteed under this subsection, if the borrower permanently
occupies and uses not less than 60 percent of the total business
space in the property.
(29) REAL ESTATE APPRAISALS.—
(A) IN GENERAL.—With respect to a loan under this subsection that is secured by commercial real property, an appraisal of such property by a State licensed or certified appraiser—
(i) shall be required by the Administration in connection with any such loan, if such loan is in an
amount greater than the Federal banking regulator
appraisal threshold; or
(ii) may be required by the Administration or the
lender in connection with any such loan, if such loan
is in an amount equal to or less than the Federal
banking regulator appraisal threshold, if such appraisal is necessary for appropriate evaluation of creditworthiness.
(B) FEDERAL BANKING REGULATOR APPRAISAL THRESHOLD
DEFINED.—For purposes of this paragraph, the term ‘‘Federal banking regulator appraisal threshold’’ means the
lesser of the threshold amounts set by the Board of Governors of the Federal Reserve System, the Comptroller of

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the Currency, and the Federal Deposit Insurance Corporation for when a federally related transaction that is a commercial real estate transaction requires an appraisal prepared by a State licensed or certified appraiser.
(30) OWNERSHIP REQUIREMENTS.—Ownership requirements
to determine the eligibility of a small business concern that applies for assistance under any credit program under this Act
shall be determined without regard to any ownership interest
of a spouse arising solely from the application of the community property laws of a State for purposes of determining marital interests.
(31) EXPRESS LOANS.—
(A) DEFINITIONS.—As used in this paragraph:
(i) The term ‘‘disaster area’’ means the area for
which the President has declared a major disaster,
during the 5-year period beginning on the date of the
declaration.
(ii) The term ‘‘express lender’’ means any lender authorized by the Administration to participate in the
Express Loan Program.
(iii) The term ‘‘express loan’’ means any loan made
pursuant to this paragraph in which a lender utilizes
to the maximum extent practicable its own loan analyses, procedures, and documentation.
(iv) The term ‘‘Express Loan Program’’ means the
program for express loans established by the Administration under paragraph (25)(B), as in existence on
April 5, 2004, with a guarantee rate of not more than
50 percent.
(B) RESTRICTION TO EXPRESS LENDER.—The authority to
make an express loan shall be limited to those lenders
deemed qualified to make such loans by the Administration. Designation as an express lender for purposes of
making an express loan shall not prohibit such lender from
taking any other action authorized by the Administration
for that lender pursuant to this subsection.
(C) GRANDFATHERING OF EXISTING LENDERS.—Any express lender shall retain such designation unless the Administration determines that the express lender has violated the law or regulations promulgated by the Administration or modifies the requirements to be an express lender and the lender no longer satisfies those requirements.
(D) MAXIMUM LOAN AMOUNT.—The maximum loan
amount under the Express Loan Program is $500,000.
(E) OPTION TO PARTICIPATE.—Except as otherwise provided in this paragraph, the Administration shall take no
regulatory, policy, or administrative action, without regard
to whether such action requires notification pursuant to
paragraph (24), that has the effect of requiring a lender to
make an express loan pursuant to subparagraph (D).
(F) EXPRESS LOANS FOR RENEWABLE ENERGY AND ENERGY
EFFICIENCY.—
(i) DEFINITIONS.—In this subparagraph—
(I) the term ‘‘biomass’’—

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(aa) means any organic material that is
available on a renewable or recurring basis,
including—
(AA) agricultural crops;
(BB) trees grown for energy production;
(CC) wood waste and wood residues;
(DD) plants (including aquatic plants
and grasses);
(EE) residues;
(FF) fibers;
(GG) animal wastes and other waste
materials; and
(HH) fats, oils, and greases (including
recycled fats, oils, and greases); and
(bb) does not include—
(AA) paper that is commonly recycled;
or
(BB) unsegregated solid waste;
(II) the term ‘‘energy efficiency project’’ means
the installation or upgrading of equipment that
results in a significant reduction in energy usage;
and
(III) the term ‘‘renewable energy system’’ means
a system of energy derived from—
(aa) a wind, solar, biomass (including biodiesel), or geothermal source; or
(bb) hydrogen derived from biomass or
water using an energy source described in
item (aa).
(ii) LOANS.—The Administrator may make a loan
under the Express Loan Program for the purpose of—
(I) purchasing a renewable energy system; or
(II) carrying out an energy efficiency project for
a small business concern.
(G) GUARANTEE FEE WAIVER FOR VETERANS.—
(i) GUARANTEE FEE WAIVER.—The Administrator
may not collect a guarantee fee described in paragraph
(18) in connection with a loan made under this paragraph to a veteran or spouse of a veteran on or after
October 1, 2015.
(ii) DEFINITION.—In this subparagraph, the term
‘‘veteran or spouse of a veteran’’ means—
(I) a veteran, as defined in section 3(q)(4);
(II) an individual who is eligible to participate
in the Transition Assistance Program established
under section 1144 of title 10, United States Code;
(III) a member of a reserve component of the
Armed Forces named in section 10101 of title 10,
United States Code;
(IV) the spouse of an individual described in
subclause (I), (II), or (III); or
(V) the surviving spouse (as defined in section
101 of title 38, United States Code) of an individual described in subclause (I), (II), or (III) who
died while serving on active duty or as a result of

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a disability that is service-connected (as defined in
such section).
(H) RECOVERY OPPORTUNITY LOANS.—
(i) IN GENERAL.—The Administrator may guarantee
an express loan to a small business concern located in
a disaster area in accordance with this subparagraph.
(ii) MAXIMUMS.—For a loan guaranteed under clause
(i)—
(I) the maximum loan amount is $150,000; and
(II) the guarantee rate shall be not more than
85 percent.
(iii) OVERALL CAP.—A loan guaranteed under clause
(i) shall not be counted in determining the amount of
loans made to a borrower for purposes of subparagraph (D).
(iv) OPERATIONS.—A small business concern receiving a loan guaranteed under clause (i) shall certify
that the small business concern was in operation on
the date on which the applicable major disaster occurred as a condition of receiving the loan.
(v) REPAYMENT ABILITY.—A loan guaranteed under
clause (i) may only be made to a small business concern that demonstrates, to the satisfaction of the Administrator, sufficient capacity to repay the loan.
(vi) TIMING OF PAYMENT OF GUARANTEES.—
(I) IN GENERAL.—Not later than 90 days after
the date on which a request for purchase is filed
with the Administrator, the Administrator shall
determine whether to pay the guaranteed portion
of the loan.
(II) RECAPTURE.—Notwithstanding any other
provision of law, unless there is a subsequent
finding of fraud by a court of competent jurisdiction relating to a loan guaranteed under clause (i),
on and after the date that is 6 months after the
date on which the Administrator determines to
pay the guaranteed portion of the loan, the Administrator may not attempt to recapture the paid
guarantee.
(vii) FEES.—
(I) IN GENERAL.—Unless the Administrator has
waived the guarantee fee that would otherwise be
collected by the Administrator under paragraph
(18) for a loan guaranteed under clause (i), and
except as provided in subclause (II), the guarantee
fee for the loan shall be equal to the guarantee fee
that the Administrator would collect if the guarantee rate for the loan was 50 percent.
(II) EXCEPTION.—Subclause (I) shall not apply if
the cost of carrying out the program under this
subsection in a fiscal year is more than zero and
such cost is directly attributable to the cost of
guaranteeing loans under clause (i).

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(viii) RULES.—Not later than 270 days after the date
of enactment of this subparagraph, the Administrator
shall promulgate rules to carry out this subparagraph.
(32) LOANS FOR ENERGY EFFICIENT TECHNOLOGIES.—
(A) DEFINITIONS.—In this paragraph—
(i) the term ‘‘cost’’ has the meaning given that term
in section 502 of the Federal Credit Reform Act of
1990 (2 U.S.C. 661a);
(ii) the term ‘‘covered energy efficiency loan’’ means
a loan—
(I) made under this subsection; and
(II) the proceeds of which are used to purchase
energy efficient designs, equipment, or fixtures, or
to reduce the energy consumption of the borrower
by 10 percent or more; and
(iii) the term ‘‘pilot program’’ means the pilot program established under subparagraph (B)
(B) ESTABLISHMENT.—The Administrator shall establish
and carry out a pilot program under which the Administrator shall reduce the fees for covered energy efficiency
loans.
(C) DURATION.—The pilot program shall terminate at
the end of the second full fiscal year after the date that the
Administrator establishes the pilot program.
(D) MAXIMUM PARTICIPATION.—A covered energy efficiency loan shall include the maximum participation levels
by the Administrator permitted for loans made under this
subsection.
(E) FEES.—
(i) IN GENERAL.—The fee on a covered energy efficiency loan shall be equal to 50 percent of the fee otherwise applicable to that loan under paragraph (18).
(ii) WAIVER.—The Administrator may waive clause
(i) for a fiscal year if—
(I) for the fiscal year before that fiscal year, the
annual rate of default of covered energy efficiency
loans exceeds that of loans made under this subsection that are not covered energy efficiency
loans;
(II) the cost to the Administration of making
loans under this subsection is greater than zero
and such cost is directly attributable to the cost of
making covered energy efficiency loans; and
(III) no additional sources of revenue authority
are available to reduce the cost of making loans
under this subsection to zero.
(iii) EFFECT OF WAIVER.—If the Administrator
waives the reduction of fees under clause (ii), the Administrator—
(I) shall not assess or collect fees in an amount
greater than necessary to ensure that the cost of
the program under this subsection is not greater
than zero; and

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(II) shall reinstate the fee reductions under
clause (i) when the conditions in clause (ii) no
longer apply.
(iv) NO INCREASE OF FEES.—The Administrator shall
not increase the fees under paragraph (18) on loans
made under this subsection that are not covered energy efficiency loans as a direct result of the pilot program.
(F) GAO REPORT.—
(i) IN GENERAL.—Not later than 1 year after the
date that the pilot program terminates, the Comptroller General of the United States shall submit to
the Committee on Small Business of the House of Representatives and the Committee on Small Business
and Entrepreneurship of the Senate a report on the
pilot program.
(ii) CONTENTS.—The report submitted under clause
(i) shall include—
(I) the number of covered energy efficiency loans
for which fees were reduced under the pilot program;
(II) a description of the energy efficiency savings
with the pilot program;
(III) a description of the impact of the pilot program on the program under this subsection;
(IV) an evaluation of the efficacy and potential
fraud and abuse of the pilot program; and
(V) recommendations for improving the pilot
program.
(33) INCREASED VETERAN PARTICIPATION PROGRAM.—
(A) DEFINITIONS.—In this paragraph—
(i) the term ‘‘cost’’ has the meaning given that term
in section 502 of the Federal Credit Reform Act of
1990 (2 U.S.C. 661a);
(ii) the term ‘‘pilot program’’ means the pilot program established under subparagraph (B); and
(iii) the term ‘‘veteran participation loan’’ means a
loan made under this subsection to a small business
concern owned and controlled by veterans of the
Armed Forces or members of the reserve components
of the Armed Forces.
(B) ESTABLISHMENT.—The Administrator shall establish
and carry out a pilot program under which the Administrator shall reduce the fees for veteran participation loans.
(C) DURATION.—The pilot program shall terminate at
the end of the second full fiscal year after the date that the
Administrator establishes the pilot program.
(D) MAXIMUM PARTICIPATION.—A veteran participation
loan shall include the maximum participation levels by the
Administrator permitted for loans made under this subsection.
(E) FEES.—
(i) IN GENERAL.—The fee on a veteran participation
loan shall be equal to 50 percent of the fee otherwise
applicable to that loan under paragraph (18).

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(ii) WAIVER.—The Administrator may waive clause
(i) for a fiscal year if—
(I) for the fiscal year before that fiscal year, the
annual estimated rate of default of veteran participation loans exceeds that of loans made under
this subsection that are not veteran participation
loans;
(II) the cost to the Administration of making
loans under this subsection is greater than zero
and such cost is directly attributable to the cost of
making veteran participation loans; and
(III) no additional sources of revenue authority
are available to reduce the cost of making loans
under this subsection to zero.
(iii) EFFECT OF WAIVER.—If the Administrator
waives the reduction of fees under clause (ii), the Administrator—
(I) shall not assess or collect fees in an amount
greater than necessary to ensure that the cost of
the program under this subsection is not greater
than zero; and
(II) shall reinstate the fee reductions under
clause (i) when the conditions in clause (ii) no
longer apply.
(iv) NO INCREASE OF FEES.—The Administrator shall
not increase the fees under paragraph (18) on loans
made under this subsection that are not veteran participation loans as a direct result of the pilot program.
(F) GAO REPORT.—
(i) IN GENERAL.—Not later than 1 year after the
date that the pilot program terminates, the Comptroller General of the United States shall submit to
the Committee on Small Business of the House of Representatives and the Committee on Small Business
and Entrepreneurship of the Senate a report on the
pilot program.
(ii) CONTENTS.—The report submitted under clause
(i) shall include—
(I) the number of veteran participation loans for
which fees were reduced under the pilot program;
(II) a description of the impact of the pilot program on the program under this subsection;
(III) an evaluation of the efficacy and potential
fraud and abuse of the pilot program; and
(IV) recommendations for improving the pilot
program.
(34) EXPORT EXPRESS PROGRAM.—
(A) DEFINITIONS.—In this paragraph—
(i) the term ‘‘export development activity’’ includes—
(I) obtaining a standby letter of credit when required as a bid bond, performance bond, or advance payment guarantee;
(II) participation in a trade show that takes
place outside the United States;

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(III) translation of product brochures or catalogues for use in markets outside the United
States;
(IV) obtaining a general line of credit for export
purposes;
(V) performing a service contract from buyers
located outside the United States;
(VI) obtaining transaction-specific financing associated with completing export orders;
(VII) purchasing real estate or equipment to be
used in the production of goods or services for export;
(VIII) providing term loans or other financing to
enable a small business concern, including an export trading company and an export management
company, to develop a market outside the United
States; and
(IX) acquiring, constructing, renovating, modernizing, improving, or expanding a production facility or equipment to be used in the United
States in the production of goods or services for
export; and
(ii) the term ‘‘express loan’’ means a loan in which
a lender uses to the maximum extent practicable the
loan analyses, procedures, and documentation of the
lender to provide expedited processing of the loan application.
(B) AUTHORITY.—The Administrator may guarantee the
timely payment of an express loan to a small business concern made for an export development activity.
(C) LEVEL OF PARTICIPATION.—
(i) MAXIMUM AMOUNT.—The maximum amount of an
express loan guaranteed under this paragraph shall be
$500,000.
(ii) PERCENTAGE.—For an express loan guaranteed
under this paragraph, the Administrator shall guarantee—
(I) 90 percent of a loan that is not more than
$350,000; and
(II) 75 percent of a loan that is more than
$350,000 and not more than $500,000.
(35) LOANS TO COOPERATIVES.—
(A) DEFINITION.—In this paragraph, the term ‘‘cooperative’’ means an entity that is determined to be a cooperative by the Administrator, in accordance with applicable
Federal and State laws and regulation.
(B) AUTHORITY.—The Administration shall guarantee
loans made to a cooperative for the purpose described in
paragraph (15).
(36) PAYCHECK PROTECTION PROGRAM.—
(A) DEFINITIONS.—In this paragraph—
(i) the terms ‘‘appropriate Federal banking agency’’
and ‘‘insured depository institution’’ have the meanings given those terms in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813);

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(ii) the term ‘‘covered loan’’ means a loan made
under this paragraph during the covered period;
(iii) the term ‘‘covered period’’ means the period beginning on February 15, 2020 and ending on June 30,
2021;
(iv) the term ‘‘eligible recipient’’ means an individual
or entity that is eligible to receive a covered loan;
(v) the term ‘‘eligible self-employed individual’’ has
the meaning given the term in section 7002(b) of the
Families First Coronavirus Response Act (Public Law
116–127);
(vi) the term ‘‘insured credit union’’ has the meaning
given the term in section 101 of the Federal Credit
Union Act (12 U.S.C. 1752);
(vii) the term ‘‘nonprofit organization’’ means an organization that is described in section 501(c)(3) of the
Internal Revenue Code of 1986 and that is exempt
from taxation under section 501(a) of such Code;
(viii) the term ‘‘payroll costs’’—
(I) means—
(aa) the sum of payments of any compensation with respect to employees that is a—
(AA) salary, wage, commission, or similar compensation;
(BB) payment of cash tip or equivalent;
(CC) payment for vacation, parental,
family, medical, or sick leave;
(DD) allowance for dismissal or separation;
(EE) payment required for the provisions of group health care or group life,
disability, vision, or dental insurance benefits, including insurance premiums;
(FF) payment of any retirement benefit;
or
(GG) payment of State or local tax assessed on the compensation of employees;
and
(bb) the sum of payments of any compensation to or income of a sole proprietor or independent contractor that is a wage, commission, income, net earnings from self-employment, or similar compensation and that is in
an amount that is not more than $100,000 on
an annualized basis, as prorated for the period during which the payments are made or
the obligation to make the payments is incurred; and
(II) shall not include—
(aa) the compensation of an individual employee in excess of $100,000 on an annualized
basis, as prorated for theperiod during which
the compensation is paid or the obligationto
pay the compensation is incurred;

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(bb) taxes imposed or withheld under chapters 21, 22, or 24 of the Internal Revenue
Code of 1986 during the applicable period;
(cc) any compensation of an employee whose
principal place of residence is outside of the
United States;
(dd) qualified sick leave wages for which a
credit is allowed under section 7001 of the
Families First Coronavirus Response Act
(Public Law 116–127); or
(ee) qualified family leave wages for which
a credit is allowed under section 7003 of the
Families First Coronavirus Response Act
(Public Law 116–127);
(ix) the term ‘‘veterans organization’’ means an organization that is described in section 501(c)(19) of the
Internal Revenue Code that is exempt from taxation
under section 501(a) of such Code;
(x) the term ‘‘community development financial institution’’ has the meaning given the term in section
103 of the Riegle Community Development and Regulatory Improvement Act of 1994 (12 U.S.C. 4702));
(xi) the term ‘‘community financial institutions’’
means—
(I) a community development financial institution;
(II) a minority depository institution, as defined
in section 308 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12
U.S.C. 1463 note);
(III) a development company that is certified
under title V of the Small Business Investment
Act of 1958 (15 U.S.C. 695 et seq.); and
(IV) an intermediary, as defined in section
7(m)(11);
(xii) the term ‘‘credit union’’ means a State credit
union or a Federal credit union, as those terms are defined, respectively, in section 101 of the Federal Credit
Union Act (12 U.S.C. 1752);
(xiii) the term ‘‘seasonal employer’’ means an eligible
recipient that—
(I) does not operate for more than 7 months in
any calendar year; or
(II) during the preceding calendar year, had
gross receipts for any 6 months of that year that
were not more than 33.33 percent of the gross receipts of the employer for the other 6 months of
that year;
(xiv) the term ‘‘housing cooperative’’ means a cooperative housing corporation (as defined in section 216(b)
of the Internal Revenue Code of 1986) that employs
not more than 300 employees;
(xv) the term ‘‘destination marketing organization’’
means a nonprofit entity that is—

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(I) an organization described in section 501(c) of
the Internal Revenue Code of 1986 and exempt
from tax under section 501(a) of such Code; or
(II) a State, or a political subdivision of a State
(including any instrumentality of such entities)—
(aa) engaged in marketing and promoting
communities and facilities to businesses and
leisure travelers through a range of activities,
including—
(AA) assisting with the location of
meeting and convention sites;
(BB) providing travel information on
area attractions, lodging accommodations,
and restaurants;
(CC) providing maps; and
(DD) organizing group tours of local
historical, recreational, and cultural attractions; or
(bb) that is engaged in, and derives the majority of the operating budget of the entity
from revenue attributable to, providing live
events;
(xvi) the terms ‘‘exchange’’, ‘‘issuer’’, and ‘‘security’’
have the meanings given those terms in section 3(a) of
the Securities Exchange Act of 1934 (15 U.S.C. 78c(a));
and
(xvii) the term ‘‘additional covered nonprofit entity’’—
(I) means an organization described in any
paragraph of section 501(c) of the Internal Revenue Code of 1986, other than paragraph (3), (4),
(6), or (19), and exempt from tax under section
501(a) of such Code; and
(II) does not include any entity that, if the entity were a business concern, would be described in
section 120.110 of title 13, Code of Federal Regulations (or in any successor regulation or other related guidance or rule that may be issued by the
Administrator) other than a business concern described in paragraph (a) or (k) of such section.
(B) PAYCHECK PROTECTION LOANS.—Except as otherwise
provided in this paragraph, the Administrator may guarantee covered loans under the same terms, conditions, and
processes as a loan made under this subsection.
(C) REGISTRATION OF LOANS.—Not later than 15 days
after the date on which a loan is made under this paragraph, the Administration shall register the loan using the
TIN (as defined in section 7701 of the Internal Revenue
Code of 1986) assigned to the borrower.
(D) INCREASED ELIGIBILITY FOR CERTAIN SMALL BUSINESSES AND ORGANIZATIONS.—
(i) IN GENERAL.—During the covered period, in addition to small business concerns, any business concern,
nonprofit organization, housing cooperative, veterans
organization, or Tribal business concern described in

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section 31(b)(2)(C) shall be eligible to receive a covered
loan if the business concern, nonprofit organization,
housing cooperative, veterans organization, or Tribal
business concern employs not more than the greater
of—
(I) 500 employees; or
(II) if applicable, the size standard in number of
employees established by the Administration for
the industry in which the business concern, nonprofit organization, housing cooperative, veterans
organization, or Tribal business concern operates.
(ii) INCLUSION OF SOLE PROPRIETORS, INDEPENDENT
CONTRACTORS, AND ELIGIBLE SELF-EMPLOYED INDIVIDUALS.—
(I) IN GENERAL.—During the covered period, individuals who operate under a sole proprietorship
or as an independent contractor and eligible selfemployed individuals shall be eligible to receive a
covered loan.
(II) DOCUMENTATION.—An eligible self-employed
individual, independent contractor, or sole proprietorship seeking a covered loan shall submit such
documentation as determined necessary by the
Administrator and the Secretary, to establish the
applicant as eligible.
(iii) BUSINESS CONCERNS WITH MORE THAN 1 PHYSICAL LOCATION.—
(I) IN GENERAL.—During the covered period, any
business concern that employs not more than 500
employees per physical location of the business
concern and that is assigned a North American
Industry Classification System code beginning
with 72 at the time of disbursal shall be eligible
to receive a covered loan.
(II) ELIGIBILITY OF NEWS ORGANIZATIONS.—
(aa) DEFINITION.—In this subclause, the
term ‘‘included business concern’’ means a
business concern, including any station which
broadcasts pursuant to a license granted by
the Federal Communications Commission
under title III of the Communications Act of
1934 (47 U.S.C. 301 et seq.) without regard
for whether such a station is a concern as defined in section 121.105 of title 13, Code of
Federal Regulations, or any successor thereto—
(AA) that employs not more than 500
employees, or the size standard established by the Administrator for the North
American Industry Classification System
code applicable to the business concern,
per physical location of such business concern; or
(BB) any nonprofit organization or any
organization otherwise subject to section

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511(a)(2)(B) of the Internal Revenue Code
of 1986 that is a public broadcasting entity (as defined in section 397(11) of the
Communications Act of 1934 (47 U.S.C.
397(11))).
(bb) ELIGIBILITY.—During the covered period, an included business concern shall be eligible to receive a covered loan if—
(AA) the included business concern is
majority owned or controlled by a business concern that is assigned a North
American Industry Classification System
code beginning with 511110 or 5151 or,
with respect to a public broadcasting entity (as defined in section 397(11) of the
Communications Act of 1934 (47 U.S.C.
397(11))), has a trade or business that
falls under such a code; and
(BB) the included business concern
makes a good faith certification that proceeds of the loan will be used to support
expenses at the component of the included business concern that produces or
distributes locally focused or emergency
information.
(III) ELIGIBILITY OF CERTAIN ORGANIZATIONS.—
Subject to the provisions in this subparagraph,
during the covered period—
(aa) a nonprofit organization shall be eligible to receive a covered loan if the nonprofit
organization employs not more than 500 employees per physical location of the organization; and
(bb) an additional covered nonprofit entity
and an organization that, but for subclauses
(I)(dd) and (II)(dd) of clause (vii), would be eligible for a covered loan under clause (vii)
shall be eligible to receive a covered loan if
the entity or organization employs not more
than 300 employees per physical location of
the entity or organization.
(IV) ELIGIBILITY OF INTERNET PUBLISHING ORGANIZATIONS.—A business concern or other organization that was not eligible to receive a covered loan
the day before the date of enactment of this subclause, is assigned a North American Industry
Classification System code of 519130, certifies in
good faith as an Internet-only news publisher or
Internet-only periodical publisher, and is engaged
in the collection and distribution of local or regional and national news and information shall be
eligible to receive a covered loan for the continued
provision of news, information, content, or emergency information if—

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(aa) the business concern or organization
employs not more than 500 employees, or the
size standard established by the Administrator for that North American Industry Classification code, per physical location of the
business concern or organization; and
(bb) the business concern or organization
makes a good faith certification that proceeds
of the loan will be used to support expenses at
the component of the business concern or organization that supports local or regional
news.
(iv) WAIVER OF AFFILIATION RULES.—During the covered period, the provisions applicable to affiliations
under section 121.103 of title 13, Code of Federal Regulations, or any successor regulation, are waived with
respect to eligibility for a covered loan for—
(I) any business concern with not more than 500
employees that, as of the date on which the covered loan is disbursed, is assigned a North American Industry Classification System code beginning with 72;
(II) any business concern operating as a franchise that is assigned a franchise identifier code
by the Administration;
(III) any business concern that receives financial assistance from a company licensed under section 301 of the Small Business Investment Act of
1958 (15 U.S.C. 681);
(IV)(aa) any business concern (including any
station which broadcasts pursuant to a license
granted by the Federal Communications Commission under title III of the Communications Act of
1934 (47 U.S.C. 301 et seq.) without regard for
whether such a station is a concern as defined in
section 121.105 of title 13, Code of Federal Regulations, or any successor thereto) that employs not
more than 500 employees, or the size standard established by the Administrator for the North
American Industry Classification System code applicable to the business concern, per physical location of such business concern and is majority
owned or controlled by a business concern that is
assigned a North American Industry Classification
System code beginning with 511110 or 5151; or
(bb) any nonprofit organization that is assigned
a North American Industry Classification System
code beginning with 5151; and
(V) any business concern or other organization
that was not eligible to receive a covered loan the
day before the date of enactment of this subclause,
is assigned a North American Industry Classification System code of 519130, certifies in good faith
as an Internet-only news publisher or Internetonly periodical publisher, and is engaged in the

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collection and distribution of local or regional and
national news and information, if the business
concern or organization—
(aa) employs not more than 500 employees,
or the size standard established by the Administrator for that North American Industry
Classification code, per physical location of
the business concern or organization; and
(bb) is majority owned or controlled by a
business concern or organization that is assigned a North American Industry Classification System code of 519130.
(v) EMPLOYEE.—For purposes of determining whether a business concern, nonprofit organization, veterans
organization, or Tribal business concern described in
section 31(b)(2)(C) employs not more than 500 employees under clause (i)(I), or for purposes of determining
the number of employees of a housing cooperative or
a business concern or organization made eligible for a
loan under this paragraph under subclause (II), (III),
or (IV) of clause (iii), subclause (IV) or (V) of clause
(iv), clause (vii), or clause (ix), the term ‘‘employee’’ includes individuals employed on a full-time, part-time,
or other basis.
(vi) AFFILIATION.—The provisions applicable to affiliations under section 121.103 of title 13, Code of Federal Regulations, or any successor thereto, shall apply
with respect to a nonprofit organization and, a housing cooperative, a veterans organization in the same
manner as with respect to a small business concern.
(vii) ELIGIBILITY FOR CERTAIN 501(c)(6) ORGANIZATIONS.—
(I) IN GENERAL.—Any organization that is described in section 501(c)(6) of the Internal Revenue Code and that is exempt from taxation under
section 501(a) of such Code (excluding professional
sports leagues and organizations with the purpose
of promoting or participating in a political campaign or other activity) shall be eligible to receive
a covered loan if—
(aa) the organization does not receive more
than 15 percent of its receipts from lobbying
activities;
(bb) the lobbying activities of the organization do not comprise more than 15 percent of
the total activities of the organization;
(cc) the cost of the lobbying activities of the
organization did not exceed $1,000,000 during
the most recent tax year of the organization
that ended prior to February 15, 2020; and
(dd) the organization employs not more
than 300 employees.
(II) DESTINATION MARKETING ORGANIZATIONS.—
Any destination marketing organization shall be
eligible to receive a covered loan if—

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(aa) the destination marketing organization
does not receive more than 15 percent of its
receipts from lobbying activities;
(bb) the lobbying activities of the destination marketing organization do not comprise
more than 15 percent of the total activities of
the organization;
(cc) the cost of the lobbying activities of the
destination marketing organization did not
exceed $1,000,000 during the most recent tax
year of the destination marketing organization that ended prior to February 15, 2020;
and
(dd) the destination marketing organization
employs not more than 300 employees; and
(ee) the destination marketing organization—
(AA) is described in section 501(c) of
the Internal Revenue Code and is exempt
from taxation under section 501(a) of
such Code; or
(BB) is a quasi-governmental entity or
is a political subdivision of a State or
local government, including any instrumentality of those entities.
(viii) INELIGIBILITY OF PUBLICLY-TRADED ENTITIES.—
(I) IN GENERAL.—Subject to subclause (II), and
notwithstanding any other provision of this paragraph, on and after the date of enactment of the
Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, an entity that is an
issuer, the securities of which are listed on an exchange registered as a national securities exchange under section 6 of the Securities Exchange
Act of 1934 (15 U.S.C. 78f), shall be ineligible to
receive a covered loan under this paragraph.
(II) RULE FOR AFFILIATED ENTITIES.—With respect to a business concern made eligible by subclause (II) or (IV) of clause (iii) or subclause (IV)
or (V) of clause (iv) of this subparagraph, the Administrator shall not consider whether any affiliated entity, which for purposes of this subclause
shall include any entity that owns or controls such
business concern or organization, is an issuer.
(ix) ELIGIBILITY OF ADDITIONAL COVERED NONPROFIT
ENTITIES.—An additional covered nonprofit entity shall
be eligible to receive a covered loan if—
(I) the additional covered nonprofit entity does
not receive more than 15 percent of its receipts
from lobbying activities;
(II) the lobbying activities of the additional covered nonprofit entity do not comprise more than
15 percent of the total activities of the organization;

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(III) the cost of the lobbying activities of the additional covered nonprofit entity did not exceed
$1,000,000 during the most recent tax year of the
additional covered nonprofit entity that ended
prior to February 15, 2020; and
(IV) the additional covered nonprofit entity employs not more than 300 employees.
(E) MAXIMUM LOAN AMOUNT.—Except as provided in
subparagraph (V), during the covered period, with respect
to a covered loan, the maximum loan amount shall be the
lesser of—
(i)(I) the sum of—
(aa) the product obtained by multiplying—
(AA) the average total monthly payments
by the applicant for payroll costs incurred
during the 1-year period before the date on
which the loan is made, except thatan applicant that is a seasonal employer shall use the
average total monthly payments for payroll
for any 12-week period selected by the seasonal employer between February 15, 2019,
and February 15, 2020; by
(BB) 2.5; and
(bb) the outstanding amount of a loan under
subsection (b)(2) that was made during the period
beginning on January 31, 2020 and ending on the
date on which covered loans are made available to
be refinanced under the covered loan; or
(II) if requested by an otherwise eligible recipient
that was not in business during the period beginning
on February 15, 2019 and ending on June 30, 2019,
the sum of—
(aa) the product obtained by multiplying—
(AA) the average total monthly payments
by the applicant for payroll costs incurred
during the period beginning on January 1,
2020 and ending on February 29, 2020; by
(BB) 2.5; and
(bb) the outstanding amount of a loan under
subsection (b)(2) that was made during the period
beginning on January 31, 2020 and ending on the
date on which covered loans are made available to
be refinanced under the covered loan; or
(ii) $10,000,000.
(F) ALLOWABLE USES OF COVERED LOANS.—
(i) IN GENERAL.—During the covered period, an eligible recipient may, in addition to the allowable uses of
a loan made under this subsection, use the proceeds of
the covered loan for—
(I) payroll costs;
(II) costs related to the continuation of group
health care benefits during periods of paid sick,
medical, or family leave, and insurance premiums;
(III) employee salaries, commissions, or similar
compensations;

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(IV) payments of interest on any mortgage obligation (which shall not include any prepayment of
or payment of principal on a mortgage obligation);
(V) rent (including rent under a lease agreement);
(VI) utilities;
(VII) interest on any other debt obligations that
were incurred before the covered period;
(VIII) covered operations expenditures, as defined in section 7A(a);
(IX) covered property damage costs, as defined
in section 7A(a);
(X) covered supplier costs, as defined in section
7A(a); and
(XI) covered worker protection expenditures, as
defined in section 7A(a).
(ii) DELEGATED AUTHORITY.—
(I) IN GENERAL.—For purposes of making covered loans for the purposes described in clause (i),
a lender approved to make loans under this subsection shall be deemed to have been delegated
authority by the Administrator to make and approve covered loans, subject to the provisions of
this paragraph.
(II) CONSIDERATIONS.—In evaluating the eligibility of a borrower for a covered loan with the
terms described in this paragraph, a lender shall
consider whether the borrower—
(aa) was in operation on February 15, 2020;
and
(bb)(AA) had employees for whom the borrower paid salaries and payroll taxes; or
(BB) paid independent contractors, as reported on a Form 1099–MISC.
(iii) ADDITIONAL LENDERS.—The authority to make
loans under this paragraph shall be extended to additional lenders determined by the Administrator and
the Secretary of the Treasury to have the necessary
qualifications to process, close, disburse and service
loans made with the guarantee of the Administration.
(iv) REFINANCE.—A loan made under subsection
(b)(2) during the period beginning on January 31, 2020
and ending on the date on which covered loans are
made available may be refinanced as part of a covered
loan.
(v) NONRECOURSE.—Notwithstanding the waiver of
the personal guarantee requirement or collateral
under subparagraph (J), the Administrator shall have
no recourse against any individual shareholder, member, or partner of an eligible recipient of a covered
loan for nonpayment of any covered loan, except to the
extent that such shareholder, member, or partner uses
the covered loan proceeds for a purpose not authorized
under clause (i) or (iv).

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(vi) PROHIBITION.—None of the proceeds of a covered
loan may be used for—
(I) lobbying activities, as defined in section 3 of
the Lobbying Disclosure Act of 1995 (2 U.S.C.
1602);
(II) lobbying expenditures related to a State or
local election; or
(III) expenditures designed to influence the enactment of legislation, appropriations, regulation,
administrative action, or Executive order proposed
or pending before Congress or any State government, State legislature, or local legislature or legislative body.
(G) BORROWER REQUIREMENTS.—
(i) CERTIFICATION.—An eligible recipient applying
for a covered loan shall make a good faith certification—
(I) that the uncertainty of current economic conditions makes necessary the loan request to support the ongoing operations of the eligible recipient;
(II) acknowledging that funds will be used to retain workers and maintain payroll or make mortgage payments, lease payments, and utility payments;
(III) that the eligible recipient does not have an
application pending for a loan under this subsection for the same purpose and duplicative of
amounts applied for or received under a covered
loan; and
(IV) during the period beginning on February
15, 2020 and ending on December 31, 2020, that
the eligible recipient has not received amounts
under this subsection for the same purpose and
duplicative of amounts applied for or received
under a covered loan.
(H) FEE WAIVER.—With respect to a covered loan—
(i) in lieu of the fee otherwise applicable under paragraph (23)(A), the Administrator shall collect no fee;
and
(ii) in lieu of the fee otherwise applicable under
paragraph (18)(A), the Administrator shall collect no
fee.
(I) CREDIT ELSEWHERE.—During the covered period, the
requirement that a small business concern is unable to obtain credit elsewhere, as defined in section 3(h), shall not
apply to a covered loan.
(J) WAIVER OF PERSONAL GUARANTEE REQUIREMENT.—
With respect to a covered loan—
(i) no personal guarantee shall be required for the
covered loan; and
(ii) no collateral shall be required for the covered
loan.
(K) MATURITY FOR LOANS WITH REMAINING BALANCE
AFTER APPLICATION OF FORGIVENESS.—With respect to a

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covered loan that has a remaining balance after reduction
based on the loan forgiveness amount under section 7A—
(i) the remaining balance shall continue to be guaranteed by the Administration under this subsection;
and
(ii) the covered loan shall have a minimum maturity
of 5 years and a maximum maturity of 10 years from
the date on which the borrower applies for loan forgiveness under that section.
(L) INTEREST RATE REQUIREMENTS.—A covered loan shall
bear an interest rate not to exceed 4 percent, calculated on
a non-compounding, non-adjustable basis.
(M) LOAN DEFERMENT.—
(i) DEFINITION OF IMPACTED BORROWER.—
(I) IN GENERAL.—In this subparagraph, the term
‘‘impacted borrower’’ means an eligible recipient
that—
(aa) is in operation on February 15, 2020;
and
(bb) has an application for a covered loan
that is approved or pending approval on or
after the date of enactment of this paragraph.
(II) PRESUMPTION.—For purposes of this subparagraph, an impacted borrower is presumed to
have been adversely impacted by COVID–19.
(ii) DEFERRAL.—The Administrator shall—
(I) consider each eligible recipient that applies
for a covered loan to be an impacted borrower;
and
(II) require lenders under this subsection to provide complete payment deferment relief for impacted borrowers with covered loans, including
payment of principal, interest, and fees, until the
date on which the amount of forgiveness determined under section 7A is remitted to the lender.
(iii) SECONDARY MARKET.—With respect to a covered
loan that is sold on the secondary market, if an investor declines to approve a deferral requested by a lender under clause (ii), the Administrator shall exercise
the authority to purchase the loan so that the impacted borrower may receive a deferral, including payment of principal, interest, and fees, until the date on
which the amount of forgiveness determined under
section 7A is remitted to the lender.
(iv) GUIDANCE.—Not later than 30 days after the
date of enactment of this paragraph, the Administrator shall provide guidance to lenders under this
paragraph on the deferment process described in this
subparagraph.
(v) RULE OF CONSTRUCTION.—If an eligible recipient
fails to apply for forgiveness of a covered loan within
10 months after the last day of the covered period defined in section 7A(a), such eligible recipient shall
make payments of principal, interest, and fees on such
covered loan beginning on the day that is not earlier

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than the date that is 10 months after the last day of
such covered period.
(N) SECONDARY MARKET SALES.—A covered loan shall be
eligible to be sold in the secondary market consistent with
this subsection. The Administrator may not collect any fee
for any guarantee sold into the secondary market under
this subparagraph.
(O) REGULATORY CAPITAL REQUIREMENTS.—
(i) RISK WEIGHT.—With respect to the appropriate
Federal banking agencies or the National Credit
Union Administration Board applying capital requirements under their respective risk-based capital requirements, a covered loan shall receive a risk weight
of zero percent.
(ii) TEMPORARY RELIEF FROM TDR DISCLOSURES.—
Notwithstanding any other provision of law, an insured depository institution or an insured credit union
that modifies a covered loan in relation to COVID–19related difficulties in a troubled debt restructuring on
or after March 13, 2020, shall not be required to comply with the Financial Accounting Standards Board
Accounting Standards Codification Subtopic 310–40
(‘‘Receivables – Troubled Debt Restructurings by
Creditors’’) for purposes of compliance with the requirements of the Federal Deposit Insurance Act (12
U.S.C. 1811 et seq.), until such time and under such
circumstances as the appropriate Federal banking
agency or the National Credit Union Administration
Board, as applicable, determines appropriate.
(P) REIMBURSEMENT FOR PROCESSING.—
(i) IN GENERAL.—The Administrator shall reimburse
a lender authorized to make a covered loan as follows:
(I) With respect to a covered loan made during
the period beginning on the date of enactment of
this paragraph and ending on the day before the
date of enactment of the Economic Aid to HardHit Small Businesses, Nonprofits, and Venues
Act, the Administrator shall reimburse such a
lender at a rate, based on the balance of the financing outstanding at the time of disbursement
of the covered loan, of—
(aa) 5 percent for loans of not more than
$350,000;
(bb) 3 percent for loans of more than
$350,000 and less than $2,000,000; and
(cc) 1 percent for loans of not less than
$2,000,000.
(II) With respect to a covered loan made on or
after the date of enactment of the Economic Aid to
Hard-Hit Small Businesses, Nonprofits, and
Venues Act, the Administrator shall reimburse
such a lender—
(aa) for a covered loan of not more than
$50,000, in an amount equal to the lesser of—

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(AA) 50 percent of the balance of the financing outstanding at the time of disbursement of the covered loan; or
(BB) $2,500; and
(bb) at a rate, based on the balance of the
financing outstanding at the time of disbursement of the covered loan, of—
(AA) 5 percent for a covered loan of
more than $50,000 and not more than
$350,000;
(BB) 3 percent for a covered loan of
more than $350,000 and less than
$2,000,000; and
(CC) 1 percent for a covered loan of not
less than $2,000,000.
(ii) FEE LIMITS.—An agent that assists an eligible recipient to prepare an application for a covered loan
may not collect a fee in excess of the limits established
by the Administrator. If an eligible recipient has
knowingly retained an agent, such fees shall be paid
by the eligible recipient and may not be paid out of the
proceeds of a covered loan. A lender shall only be responsible for paying fees to an agent for services for
which the lender directly contracts with the agent.
(iii) TIMING.—A reimbursement described in clause
(i) shall be made not later than 5 days after the reported disbursement of the covered loan and may not
be required to be repaid by a lender unless the lender
is found guilty of an act of fraud in connection with
the covered loan.
(iv) SENSE OF THE SENATE.—It is the sense of the
Senate that the Administrator should issue guidance
to lenders and agents to ensure that the processing
and disbursement of covered loans prioritizes small
business concerns and entities in underserved and
rural markets, including veterans and members of the
military community, small business concerns owned
and controlled by socially and economically disadvantaged individuals (as defined in section 8(d)(3)(C)),
women, and businesses in operation for less than 2
years.
(Q) DUPLICATION.—Nothing in this paragraph shall prohibit a recipient of an economic injury disaster loan made
under subsection (b)(2) during the period beginning on
January 31, 2020 and ending on the date on which covered
loans are made available that is for a purpose other than
paying payroll costs and other obligations described in subparagraph (F) from receiving assistance under this paragraph.
(R) WAIVER OF PREPAYMENT PENALTY.—Notwithstanding
any other provision of law, there shall be no prepayment
penalty for any payment made on a covered loan.
(S) SET-ASIDE FOR INSURED DEPOSITORY INSTITUTIONS,
CREDIT UNIONS, AND COMMUNITY FINANCIAL INSTITUTIONS.—

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(i) INSURED DEPOSITORY INSTITUTIONS AND CREDIT
UNIONS.—In making loan guarantees under this paragraph after the date of enactment of this clause, the
Administrator shall guarantee not less than
$30,000,000,000 in loans made by—
(I) insured depository institutions with consolidated assets of not less than $10,000,000,000 and
less than $50,000,000,000; and
(II) credit unions with consolidated assets of not
less than $10,000,000,000 and less than
$50,000,000,000.
(ii) COMMUNITY FINANCIAL INSTITUTIONS, SMALL INSURED
DEPOSITORY
INSTITUTIONS,
AND
CREDIT
UNIONS.—In making loan guarantees under this paragraph after the date of enactment of this clause, the
Administrator shall guarantee not less than
$30,000,000,000 in loans made by—
(I) community financial institutions;
(II) insured depository institutions with consolidated assets of less than $10,000,000,000; and
(III) credit unions with consolidated assets of
less than $10,000,000,000.
(T) REQUIREMENT FOR DATE IN OPERATION.—A business
or organization that was not in operation on February 15,
2020 shall not be eligible for a loan under this paragraph.
(U) EXCLUSION OF ENTITIES RECEIVING SHUTTERED
VENUE OPERATOR GRANTS.—An eligible person or entity (as
defined under of section 24 of the Economic Aid to HardHit Small Businesses, Nonprofits, and Venues Act) that receives a grant under such section 24 shall not be eligible
for a loan under this paragraph.
(V) CALCULATION OF MAXIMUM LOAN AMOUNT FOR FARMERS AND RANCHERS.—
(i) DEFINITION.—In this subparagraph, the term
‘‘covered recipient’’ means an eligible recipient that—
(I) operates as a sole proprietorship or as an
independent contractor, or is an eligible self-employed individual;
(II) reports farm income or expenses on a Schedule F (or any equivalent successor schedule); and
(III) was in business as of February 15, 2020.
(ii) NO EMPLOYEES.—With respect to covered recipient without employees, the maximum covered loan
amount shall be the lesser of—
(I) the sum of—
(aa) the product obtained by multiplying—
(AA) the gross income of the covered recipient in 2019, as reported on a Schedule
F (or any equivalent successor schedule),
that is not more than $100,000, divided
by 12; and
(BB) 2.5; and
(bb) the outstanding amount of a loan
under subsection (b)(2) that was made during
the period beginning on January 31, 2020 and

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ending on April 3, 2020 that the borrower intends to refinance under the covered loan, not
including any amount of any advance under
the loan that is not required to be repaid; or
(II) $2,000,000.
(iii) WITH EMPLOYEES.—With respect to a covered recipient with employees, the maximum covered loan
amount shall be calculated using the formula described in subparagraph (E), except that the gross income of the covered recipient described in clause
(ii)(I)(aa)(AA) of this subparagraph, as divided by 12,
shall be added to the sum calculated under subparagraph (E)(i)(I).
(iv) RECALCULATION.—A lender that made a covered
loan to a covered recipient before the date of enactment of this subparagraph may, at the request of the
covered recipient—
(I) recalculate the maximum loan amount applicable to that covered loan based on the formula
described in clause (ii) or (iii), as applicable, if
doing so would result in a larger covered loan
amount; and
(II) provide the covered recipient with additional
covered loan amounts based on that recalculation.
(W) FRAUD ENFORCEMENT HARMONIZATION.—Notwithstanding any other provision of law, any criminal charge
or civil enforcement action alleging that a borrower engaged in fraud with respect to a covered loan guaranteed
under this paragraph shall be filed not later than 10 years
after the offense was committed.
(37) PAYCHECK PROTECTION PROGRAM SECOND DRAW LOANS.—
(A) DEFINITIONS.—In this paragraph—
(i) the terms ‘‘additional covered nonprofit entity’’,‘‘eligible self-employed individual’’, ‘‘housing cooperative’’, ‘‘nonprofit organization’’, ‘‘payroll costs’’, ‘‘seasonal employer’’, and ‘‘veterans organization’’ have the
meanings given those terms in paragraph (36), except
that ‘‘eligible entity’’ shall be substituted for ‘‘eligible
recipient’’ each place it appears in the definitions of
those terms;
(ii) the term ‘‘covered loan’’ means a loan made
under this paragraph;
(iii) the terms ‘‘covered mortgage obligation’’, ‘‘covered operating expenditure’’, ‘‘covered property damage cost’’, ‘‘covered rent obligation’’, ‘‘covered supplier
cost’’, ‘‘covered utility payment’’, and ‘‘covered worker
protection expenditure’’ have the meanings given those
terms in section 7A(a);
(iv) the term ‘‘eligible entity’’—
(I) means any business concern, nonprofit organization, housing cooperative, veterans organization, Tribal business concern, eligible self-employed individual, sole proprietor, independent
contractor, or small agricultural cooperative
that—

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(aa) employs not more than 300 employees;
and
(bb)(AA) except as provided in subitems
(BB), (CC), and (DD), had gross receipts during the first, second, third, or, only with respect to an application submitted on or after
January 1, 2021, fourth quarter in 2020 that
demonstrate not less than a 25 percent reduction from the gross receipts of the entity during the same quarter in 2019;
(BB) if the entity was not in business during the first or second quarter of 2019, but
was in business during the third and fourth
quarter of 2019, had gross receipts during the
first, second, third, or, only with respect to an
application submitted on or after January 1,
2021, fourth quarter of 2020 that demonstrate
not less than a 25 percent reduction from the
gross receipts of the entity during the third or
fourth quarter of 2019;
(CC) if the entity was not in business during the first, second, or third quarter of 2019,
but was in business during the fourth quarter
of 2019, had gross receipts during the first,
second, third, or, only with respect to an application submitted on or after January 1,
2021, fourth quarter of 2020 that demonstrate
not less than a 25 percent reduction from the
gross receipts of the entity during the fourth
quarter of 2019; or
(DD) if the entity was not in business during 2019, but was in operation on February
15, 2020, had gross receipts during the second, third, or, only with respect to an application submitted on or after January 1, 2021,
fourth quarter of 2020 that demonstrate not
less than a 25 percent reduction from the
gross receipts of the entity during the first
quarter of 2020;
(II) includes a business concern or organization
made eligible for a loan under paragraph (36)
under subclause (II), (III), or (IV) of clause (iii),
subclause (IV) or (V) of clause (iv), clause (vii), or
clause (ix) of subparagraph (D) of paragraph (36)
and that meets the requirements described in
items (aa) and (bb) of subclause (I); and
(III) does not include—
(aa) any entity that is a type of business
concern (or would be, if such entity were a
business concern) described in section 120.110
of title 13, Code of Federal Regulations (or in
any successor regulation or other related
guidance or rule that may be issued by the
Administrator) other than a business concern

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described in subsection (a) or (k) of such section; or
(bb) any business concern or entity primarily engaged in political or lobbying activities, which shall include any entity that is organized for research or for engaging in advocacy in areas such as public policy or political
strategy or otherwise describes itself as a
think tank in any public documents;
(cc) any business concern or entity—
(AA) for which an entity created in or
organized under the laws of the People’s
Republic of China or the Special Administrative Region of Hong Kong, or that has
significant operations in the People’s Republic of China or the Special Administrative Region of Hong Kong, owns or
holds, directly or indirectly, not less than
20 percent of the economic interest of the
business concern or entity, including as
equity shares or a capital or profit interest in a limited liability company or partnership; or
(BB) that retains, as a member of the
board of directors of the business concern,
a person who is a resident of the People’s
Republic of China;
(dd) any person required to submit a registration statement under section 2 of the Foreign Agents Registration Act of 1938 (22
U.S.C. 612); or
(ee) an eligible person or entity (as defined
under section 24 of the Economic Aid to HardHit Small Businesses, Nonprofits, and Venues
Act) that receives a grant under such section
24; and
(v) the term ‘‘Tribal business concern’’ means a Tribal business concern described in section 31(b)(2)(C).
(B) LOANS.—Except as otherwise provided in this paragraph, the Administrator may guarantee covered loans to
eligible entities under the same terms, conditions, and
processes as a loan made under paragraph (36).
(C) MAXIMUM LOAN AMOUNT.—
(i) IN GENERAL.—Except as otherwise provided in
this subparagraph, the maximum amount of a covered
loan made to an eligible entity is the lesser of—
(I) the product obtained by multiplying—
(aa) at the election of the eligible entity, the
average total monthly payment for payroll
costs incurred or paid by the eligible entity
during—
(AA) the 1-year period before the date
on which the loan is made; or
(BB) calendar year 2019; by
(bb) 2.5; or

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(II) $2,000,000.
(ii) SEASONAL EMPLOYERS.—The maximum amount
of a covered loan made to an eligible entity that is a
seasonal employer is the lesser of—
(I) the product obtained by multiplying—
(aa) at the election of the eligible entity, the
average total monthly payments for payroll
costs incurred or paid by the eligible entity for
any 12-week period between February 15,
2019 and February 15, 2020; by
(bb) 2.5; or
(II) $2,000,000.
(iii) NEW ENTITIES.—The maximum amount of a covered loan made to an eligible entity that did not exist
during the 1-year period preceding February 15, 2020
is the lesser of—
(I) the product obtained by multiplying—
(aa) the quotient obtained by dividing—
(AA) the sum of the total monthly payments by the eligible entity for payroll
costs paid or incurred by the eligible entity as of the date on which the eligible entity applies for the covered loan; by
(BB) the number of months in which
those payroll costs were paid or incurred;
by
(bb) 2.5; or
(II) $2,000,000.
(iv) NAICS 72 ENTITIES.—The maximum amount of
a covered loan made to an eligible entity that is assigned a North American Industry Classification System code beginning with 72 at the time of disbursal is
the lesser of—
(I) the product obtained by multiplying—
(aa) at the election of the eligible entity, the
average total monthly payment for payroll
costs incurred or paid by the eligible entity
during—
(AA) the 1-year period before the date
on which the loan is made; or
(BB) calendar year 2019; by
(bb) 3.5; or
(II) $2,000,000.
(D) BUSINESS CONCERNS WITH MORE THAN 1 PHYSICAL LOCATION.—
(i) IN GENERAL.—For a business concern with more
than 1 physical location, the business concern shall be
an eligible entity if the business concern would be eligible for a loan under paragraph (36) pursuant to
clause (iii) of subparagraph (D) of such paragraph, as
applied in accordance with clause (ii) of this subparagraph, and meets the revenue reduction requirements
described in item (bb) of subparagraph (A)(iv)(I).
(ii) SIZE LIMIT.—For purposes of applying clause (i),
the Administrator shall substitute ‘‘not more than 300

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employees’’ for ‘‘not more than 500 employees’’ in paragraph (36)(D)(iii).
(E) WAIVER OF AFFILIATION RULES.—
(i) IN GENERAL.—The waiver described in paragraph
(36)(D)(iv) shall apply for purposes of determining eligibility under this paragraph.
(ii) SIZE LIMIT.—For purposes of applying clause (i),
the Administrator shall substitute ‘‘not more than 300
employees’’ for ‘‘not more than 500 employees’’ in subclause (I) and (IV) of paragraph (36)(D)(iv).
(F) LOAN NUMBER LIMITATION.—An eligible entity may
only receive 1 covered loan.
(G) EXCEPTION FROM CERTAIN CERTIFICATION REQUIREMENTS.—An eligible entity applying for a covered loan
shall not be required to make the certification described in
clause (iii) or (iv) of paragraph (36)(G).
(H) FEE WAIVER.—With respect to a covered loan—
(i) in lieu of the fee otherwise applicable under paragraph (23)(A), the Administrator shall collect no fee;
and
(ii) in lieu of the fee otherwise applicable under
paragraph (18)(A), the Administrator shall collect no
fee.
(I) GROSS RECEIPTS AND SIMPLIFIED CERTIFICATION OF
REVENUE TEST.—
(i) LOANS OF UP TO $150,000.—For a covered loan of
not more than $150,000, the eligible entity—
(I) may submit a certification attesting that the
eligible entity meets the applicable revenue loss
requirement under subparagraph (A)(iv)(I)(bb);
and
(II) if the eligible entity submits a certification
under subclause (I), shall, on or before the date on
which the eligible entity submits an application
for forgiveness under subparagraph (J), produce
adequate documentation that the eligible entity
met such revenue loss standard.
(ii) FOR NONPROFIT AND VETERANS ORGANIZATIONS.—
For purposes of calculating gross receipts under subparagraph (A)(iv)(I)(bb) for an eligible entity that is a
nonprofit organization, a veterans organization, or an
organization described in subparagraph (A)(iv)(II),
gross receipts means gross receipts within the meaning of section 6033 of the Internal Revenue Code of
1986.
(J) LOAN FORGIVENESS.—
(i) DEFINITION OF COVERED PERIOD.—In this subparagraph, the term ‘‘covered period’’ has the meaning
given that term in section 7A(a).
(ii) FORGIVENESS GENERALLY.—Except as otherwise
provided in this subparagraph, an eligible entity shall
be eligible for forgiveness of indebtedness on a covered
loan in the same manner as an eligible recipient with
respect to a loan made under paragraph (36) of this
section, as described in section 7A.

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(iii) FORGIVENESS AMOUNT.—An eligible entity shall
be eligible for forgiveness of indebtedness on a covered
loan in an amount equal to the sum of the following
costs incurred or expenditures made during the covered period:
(I) Payroll costs, excluding any payroll costs
that are—
(aa) qualified wages, as defined in subsection (c)(3) of section 2301 of the CARES
Act (26 U.S.C. 3111 note), taken into account
in determining the credit allowed under such
section;
(bb) qualified wages taken into account in
determining the credit allowed under subsection (a) or (d) of section 303 of the Taxpayer Certainty and Disaster Relief Act of
2020; or
(cc) premiums taken into account in determining the credit allowed under section 6432
of the Internal Revenue Code of 1986.
(II) Any payment of interest on any covered
mortgage obligation (which shall not include any
prepayment of or payment of principal on a covered mortgage obligation).
(III) Any covered operations expenditure.
(IV) Any covered property damage cost.
(V) Any payment on any covered rent obligation.
(VI) Any covered utility payment.
(VII) Any covered supplier cost.
(VIII) Any covered worker protection expenditure.
(iv) LIMITATION ON FORGIVENESS FOR ALL ELIGIBLE
ENTITIES.—Subject to any reductions under section
7A(d), the forgiveness amount under this subparagraph shall be equal to the lesser of—
(I) the amount described in clause (ii); and
(II) the amount equal to the quotient obtained
by dividing—
(aa) the amount of the covered loan used for
payroll costs during the covered period; and
(bb) 0.60.
(v) SUBMISSION OF MATERIALS FOR FORGIVENESS.—
For purposes of applying subsection (l)(1) of section 7A
to a covered loan of not more than $150,000 under this
paragraph, an eligible entity may be required to provide, at the time of the application for forgiveness, documentation required to substantiate revenue loss in
accordance with subparagraph (I).
(K) LENDER ELIGIBILITY.—Except as otherwise provided
in this paragraph, a lender approved to make loans under
paragraph (36) may make covered loans under the same
terms and conditions as in paragraph (36).
(L) REIMBURSEMENT FOR LOAN PROCESSING AND SERVICING.—The Administrator shall reimburse a lender authorized to make a covered loan—

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(i) for a covered loan of not more than $50,000, in
an amount equal to the lesser of—
(I) 50 percent of the balance of the financing
outstanding at the time of disbursement of the
covered loan; or
(II) $2,500;
(ii) at a rate, based on the balance of the financing
outstanding at the time of disbursement of the covered
loan, of—
(I) 5 percent for a covered loan of more than
$50,000 and not more than $350,000; and
(II) 3 percent for a covered loan of more than
$350,000.
(M) PUBLICATION OF GUIDANCE.—Not later than 10 days
after the date of enactment of this paragraph, the Administrator shall issue guidance addressing barriers to accessing capital for minority, underserved, veteran, and womenowned business concerns for the purpose of ensuring equitable access to covered loans.
(N) STANDARD OPERATING PROCEDURE.—The Administrator shall, to the maximum extent practicable, allow a
lender approved to make covered loans to use existing program guidance and standard operating procedures for
loans made under this subsection.
(O) SUPPLEMENTAL COVERED LOANS.—A covered loan
under this paragraph may only be made to an eligible entity that—
(i) has received a loan under paragraph (36); and
(ii) on or before the expected date on which the covered loan under this paragraph is disbursed to the eligible entity, has used, or will use, the full amount of
the loan received under paragraph (36).
(P) FRAUD ENFORCEMENT HARMONIZATION.—Notwithstanding any other provision of law, any criminal charge
or civil enforcement action alleging that a borrower engaged in fraud with respect to a covered loan guaranteed
under this paragraph shall be filed not later than 10 years
after the offense was committed.
(b) Except as to agricultural enterprises as defined in section
18(b)(1) of this Act, the Administration also is empowered to the
extent and in such amounts as provided in advance in appropriation Acts—
(1)(A) to make such loans (either directly or in cooperation
with banks or other lending institutions through agreements to
participate on an immediate or deferred (guaranteed) basis) as
the Administration may determine to be necessary or appropriate to repair, rehabilitate or replace property, real or personal, damaged or destroyed by or as a result of natural or
other disasters: Provided, That such damage or destruction is
not compensated for by insurance or otherwise: And provided
further, That the Administration may increase the amount of
the loan by up to an additional 20 per centum of the aggregate
costs of such damage or destruction (whether or not compensated for by insurance or otherwise) if it determines such
increase to be necessary or appropriate in order to protect the

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damaged or destroyed property from possible future disasters
by taking mitigating measures, including—
(i) construction of retaining walls and sea walls;
(ii) grading and contouring land; and
(iii) relocating utilities and modifying structures, including construction of a safe room or similar storm shelter designed to protect property and occupants from tornadoes or
other natural disasters, if such safe room or similar storm
shelter is constructed in accordance with applicable standards issued by the Federal Emergency Management Agency;
(B) to refinance any mortgage or other lien against a totally
destroyed or substantially damaged home or business concern:
Provided, That no loan or guarantee shall be extended unless
the Administration finds that (i) the applicant is not able to obtain credit elsewhere; (ii) such property is to be repaired, rehabilitated, or replaced; (iii) the amount refinanced shall not exceed the amount of physical loss sustained; and (iv) such
amount shall be reduced to the extent such mortgage or lien
is satisfied by insurance or otherwise; and
(C) during fiscal years 2000 through 2004, to establish a
predisaster mitigation program to make such loans (either directly or in cooperation with banks or other lending institutions through agreements to participate on an immediate or
deferred (guaranteed) basis), as the Administrator may determine to be necessary or appropriate, to enable small businesses to use mitigation techniques in support of a formal mitigation program established by the Federal Emergency Management Agency, except that no loan or guarantee may be extended to a small business under this subparagraph unless the
Administration finds that the small business is otherwise unable to obtain credit for the purposes described in this subparagraph;
(2) to make such loans (either directly or in cooperation with
banks or other lending institutions through agreements to participate on an immediate or deferred (guaranteed) basis) as the
Administration may determine to be necessary or appropriate
to any small business concern, private nonprofit organization,
or small agricultural cooperative located in an area affected by
a disaster, (including drought), with respect to both farm-related and nonfarm-related small business concerns, if the Administration determines that the concern, the organization, or
the cooperative has suffered a substantial economic injury as
a result of such disaster and if such disaster constitutes—
(A) a major disaster, as determined by the President
under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.);
(B) a natural disaster, as determined by the Secretary of
Agriculture pursuant to section 321 of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1961), in
which case, assistance under this paragraph may be provided to farm-related and nonfarm-related small business
concerns, subject to the other applicable requirements of
this paragraph;

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(C) a disaster, as determined by the Administrator of the
Small Business Administration;
(D) an emergency involving Federal primary responsibility determined to exist by the President under the section 501(b) of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5191(b)); or
(E) if no disaster or emergency declaration has been
issued pursuant to subparagraph (A), (B), (C), or (D), the
Governor of a State in which a disaster or emergency has
occurred may certify to the Small Business Administration
that small business concerns, private nonprofit organizations, or small agricultural cooperatives (1) have suffered
economic injury as a result of such disaster or emergency,
and (2) are in need of financial assistance which is not
available on reasonable terms in the disaster- or emergency-stricken area. Not later than 30 days after the date
of receipt of such certification by a Governor of a State, the
Administration shall respond in writing to that Governor
on its determination and the reasons therefore, and may
then make such loans as would have been available under
this paragraph if a disaster or emergency declaration had
been issued.
Provided, That no loan or guarantee shall be extended pursuant to this paragraph (2) unless the Administration finds that
the applicant is not able to obtain credit elsewhere: Provided
further, That for purposes of subparagraph (D), the Administrator shall deem that such an emergency affects each State or
subdivision thereof (including counties), and that each State or
subdivision has sufficient economic damage to small business
concerns to qualify for assistance under this paragraph and the
Administrator shall accept applications for such assistance immediately.
(3)(A) In this paragraph—
(i) the term ‘‘active service’’ has the meaning given that
term in section 101(d)(3) of title 10, United States Code;
(ii) the term ‘‘essential employee’’ means an individual
who is employed by a small business concern and whose
managerial or technical expertise is critical to the successful day-to-day operations of that small business concern;
and
(iii) the term ‘‘substantial economic injury’’ means an
economic harm to a business concern that results in the inability of the business concern—
(I) to meet its obligations as they mature;
(II) to pay its ordinary and necessary operating expenses; or
(III) to market, produce, or provide a product or
service ordinarily marketed, produced, or provided by
the business concern.
(B) The Administration may make such disaster loans (either
directly or in cooperation with banks or other lending institutions through agreements to participate on an immediate or
deferred basis) to assist a small business concern that has suffered or that is likely to suffer substantial economic injury as
the result of an essential employee of such small business con-

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cern being ordered to perform active service for a period of
more than 30 consecutive days.
(C) A small business concern described in subparagraph (B)
shall be eligible to apply for assistance under this paragraph
during the period beginning on the date on which the essential
employee is ordered to active service and ending on the date
that is 1 year after the date on which such essential employee
is discharged or released from active service. The Administrator may, when appropriate (as determined by the Administrator), extend the ending date specified in the preceding sentence by not more than 1 year.
(D) Any loan or guarantee extended pursuant to this paragraph shall be made at the same interest rate as economic injury loans under paragraph (2).
(E) No loan may be made under this paragraph, either directly or in cooperation with banks or other lending institutions through agreements to participate on an immediate or
deferred basis, if the total amount outstanding and committed
to the borrower under this subsection would exceed $1,500,000,
unless such applicant constitutes, or have become due to
changed economic circumstances, a major source of employment in its surrounding area, as determined by the Administration, in which case the Administration, in its discretion,
may waive the $1,500,000 limitation.
(F) For purposes of assistance under this paragraph, no declaration of a disaster area shall be required.
(G)(i) Notwithstanding any other provision of law, the
Administrator may make a loan under this paragraph of
not more than $50,000 without collateral.
(ii) The Administrator may defer payment of principal
and interest on a loan described in clause (i) during the
longer of—
(I) the 1-year period beginning on the date of the
initial disbursement of the loan; and
(II) the period during which the relevant essential
employee is on active service.
(H) The Administrator shall give priority to any application for a loan under this paragraph and shall process and
make a determination regarding such applications prior to
processing or making a determination on other loan applications under this subsection, on a rolling basis.
(4) COORDINATION WITH FEMA.—
(A) IN GENERAL.—Notwithstanding any other provision
of law, for any disaster declared under this subsection or
major disaster (including any major disaster relating to
which the Administrator declares eligibility for additional
disaster assistance under paragraph (9)), the Administrator, in consultation with the Administrator of the Federal Emergency Management Agency, shall ensure, to the
maximum extent practicable, that all application periods
for disaster relief under this Act correspond with application deadlines established under the Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42 U.S.C.
5121 et seq.), or as extended by the President.

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(B) DEADLINES.—Notwithstanding any other provision of
law, not later than 10 days before the closing date of an
application period for a major disaster (including any
major disaster relating to which the Administrator declares eligibility for additional disaster assistance under
paragraph (9)), the Administrator, in consultation with the
Administrator of the Federal Emergency Management
Agency, shall submit to the Committee on Small Business
and Entrepreneurship of the Senate and the Committee on
Small Business of the House of Representatives a report
that includes—
(i) the deadline for submitting applications for assistance under this Act relating to that major disaster;
(ii) information regarding the number of loan applications and disbursements processed by the Administrator relating to that major disaster for each day during the period beginning on the date on which that
major disaster was declared and ending on the date of
that report; and
(iii) an estimate of the number of potential applicants that have not submitted an application relating
to that major disaster.
(5) PUBLIC AWARENESS OF DISASTERS.—If a disaster is declared under this subsection or the Administrator declares eligibility for additional disaster assistance under paragraph (9),
the Administrator shall make every effort to communicate
through radio, television, print, and web-based outlets, all relevant information needed by disaster loan applicants, including—
(A) the date of such declaration;
(B) cities and towns within the area of such declaration;
(C) loan application deadlines related to such disaster;
(D) all relevant contact information for victim services
available through the Administration (including links to
small business development center websites);
(E) links to relevant Federal and State disaster assistance websites, including links to websites providing information regarding assistance available from the Federal
Emergency Management Agency;
(F) information on eligibility criteria for Administration
loan programs, including where such applications can be
found; and
(G) application materials that clearly state the function
of the Administration as the Federal source of disaster
loans for homeowners and renters.
(6) AUTHORITY FOR QUALIFIED PRIVATE CONTRACTORS.—
(A) DISASTER LOAN PROCESSING.—The Administrator
may enter into an agreement with a qualified private contractor, as determined by the Administrator, to process
loans under this subsection in the event of a major disaster (including any major disaster relating to which the
Administrator declares eligibility for additional disaster
assistance under paragraph (9)), under which the Administrator shall pay the contractor a fee for each loan processed.

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(B) LOAN LOSS VERIFICATION SERVICES.—The Administrator may enter into an agreement with a qualified lender
or loss verification professional, as determined by the Administrator, to verify losses for loans under this subsection
in the event of a major disaster (including any major disaster relating to which the Administrator declares eligibility for additional disaster assistance under paragraph
(9)), under which the Administrator shall pay the lender or
verification professional a fee for each loan for which such
lender or verification professional verifies losses.
(7) DISASTER ASSISTANCE EMPLOYEES.—
(A) IN GENERAL.—In carrying out this section, the Administrator may, where practicable, ensure that the number of full-time equivalent employees—
(i) in the Office of the Disaster Assistance is not
fewer than 800; and
(ii) in the Disaster Cadre of the Administration is
not fewer than 1,000.
(B) REPORT.—In carrying out this subsection, if the number of full-time employees for either the Office of Disaster
Assistance or the Disaster Cadre of the Administration is
below the level described in subparagraph (A) for that office, not later than 21 days after the date on which that
staffing level decreased below the level described in subparagraph (A), the Administrator shall submit to the Committee on Appropriations and the Committee on Small
Business and Entrepreneurship of the Senate and the
Committee on Appropriations and Committee on Small
Business of the House of Representatives, a report—
(i) detailing staffing levels on that date;
(ii) requesting, if practicable and determined appropriate by the Administrator, additional funds for additional employees; and
(iii) containing such additional information, as determined appropriate by the Administrator.
(8) INCREASED LOAN CAPS.—
(A) AGGREGATE LOAN AMOUNTS.—Except as provided in
subparagraph (B), and notwithstanding any other provision of law, the aggregate loan amount outstanding and
committed to a borrower under this subsection may not exceed $2,000,000.
(B) WAIVER AUTHORITY.—The Administrator may, at the
discretion of the Administrator, increase the aggregate
loan amount under subparagraph (A) for loans relating to
a disaster to a level established by the Administrator,
based on appropriate economic indicators for the region in
which that disaster occurred.
(9) DECLARATION OF ELIGIBILITY FOR ADDITIONAL DISASTER
ASSISTANCE.—
(A) IN GENERAL.—If the President declares a major disaster, the Administrator may declare eligibility for additional disaster assistance in accordance with this paragraph.

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(B) THRESHOLD.—A major disaster for which the Administrator declares eligibility for additional disaster assistance under this paragraph shall—
(i) have resulted in extraordinary levels of casualties
or damage or disruption severely affecting the population (including mass evacuations), infrastructure, environment, economy, national morale, or government
functions in an area;
(ii) be comparable to the description of a catastrophic incident in the National Response Plan of the
Administration, or any successor thereto, unless there
is no successor to such plan, in which case this clause
shall have no force or effect; and
(iii) be of such size and scope that—
(I) the disaster assistance programs under the
other paragraphs under this subsection are incapable of providing adequate and timely assistance to individuals or business concerns located
within the disaster area; or
(II) a significant number of business concerns
outside the disaster area have suffered disasterrelated substantial economic injury as a result of
the incident.
(C) ADDITIONAL ECONOMIC INJURY DISASTER LOAN ASSISTANCE.—
(i) IN GENERAL.—If the Administrator declares eligibility for additional disaster assistance under this
paragraph, the Administrator may make such loans
under this subparagraph (either directly or in cooperation with banks or other lending institutions through
agreements to participate on an immediate or deferred
basis) as the Administrator determines appropriate to
eligible small business concerns located anywhere in
the United States.
(ii) PROCESSING TIME.—
(I) IN GENERAL.—If the Administrator determines that the average processing time for applications for disaster loans under this subparagraph
relating to a specific major disaster is more than
15 days, the Administrator shall give priority to
the processing of such applications submitted by
eligible small business concerns located inside the
disaster area, until the Administrator determines
that the average processing time for such applications is not more than 15 days.
(II) SUSPENSION OF APPLICATIONS FROM OUTSIDE
DISASTER AREA.—If the Administrator determines
that the average processing time for applications
for disaster loans under this subparagraph relating to a specific major disaster is more than 30
days, the Administrator shall suspend the processing of such applications submitted by eligible
small business concerns located outside the disaster area, until the Administrator determines

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that the average processing time for such applications is not more than 15 days.
(iii) LOAN TERMS.—A loan under this subparagraph
shall be made on the same terms as a loan under
paragraph (2).
(D) DEFINITIONS.—In this paragraph—
(i) the term ‘‘disaster area’’ means the area for
which the applicable major disaster was declared;
(ii) the term ‘‘disaster-related substantial economic
injury’’ means economic harm to a business concern
that results in the inability of the business concern
to—
(I) meet its obligations as it matures;
(II) meet its ordinary and necessary operating
expenses; or
(III) market, produce, or provide a product or
service ordinarily marketed, produced, or provided
by the business concern because the business concern relies on materials from the disaster area or
sells or markets in the disaster area; and
(iii) the term ‘‘eligible small business concern’’
means a small business concern—
(I) that has suffered disaster-related substantial
economic injury as a result of the applicable major
disaster; and
(II)(aa) for which not less than 25 percent of the
market share of that small business concern is
from business transacted in the disaster area;
(bb) for which not less than 25 percent of an
input into a production process of that small business concern is from the disaster area; or
(cc) that relies on a provider located in the disaster area for a service that is not readily available elsewhere.
(10) REDUCING CLOSING AND DISBURSEMENT DELAYS.—The
Administrator shall provide a clear and concise notification on
all application materials for loans made under this subsection
and on relevant websites notifying an applicant that the applicant may submit all documentation necessary for the approval
of the loan at the time of application and that failure to submit
all documentation could delay the approval and disbursement
of the loan.
(11) INCREASING TRANSPARENCY IN LOAN APPROVALS.—The
Administrator shall establish and implement clear, written
policies and procedures for analyzing the ability of a loan applicant to repay a loan made under this subsection.
(12) ADDITIONAL AWARDS TO SMALL BUSINESS DEVELOPMENT
CENTERS, WOMEN’S BUSINESS CENTERS, AND SCORE FOR DISASTER RECOVERY.—
(A) IN GENERAL.—The Administration may provide financial assistance to a small business development center,
a women’s business center described in section 29, the
Service Corps of Retired Executives, or any proposed consortium of such individuals or entities to spur disaster re-

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covery and growth of small business concerns located in an
area for which the President has declared a major disaster.
(B) FORM OF FINANCIAL ASSISTANCE.—Financial assistance provided under this paragraph shall be in the form
of a grant, contract, or cooperative agreement.
(C) NO MATCHING FUNDS REQUIRED.—Matching funds
shall not be required for any grant, contract, or cooperative
agreement under this paragraph.
(D) REQUIREMENTS.—A recipient of financial assistance
under this paragraph shall provide counseling, training,
and other related services, such as promoting long-term resiliency, to small business concerns and entrepreneurs impacted by a major disaster.
(E) PERFORMANCE.—
(i) IN GENERAL.—The Administrator, in cooperation
with the recipients of financial assistance under this
paragraph, shall establish metrics and goals for performance of grants, contracts, and cooperative agreements under this paragraph, which shall include recovery of sales, recovery of employment, reestablishment of business premises, and establishment of new
small business concerns.
(ii) USE OF ESTIMATES.—The Administrator shall
base the goals and metrics for performance established
under clause (i), in part, on the estimates of disaster
impact prepared by the Office of Disaster Assistance
for purposes of estimating loan-making requirements.
(F) TERM.—
(i) IN GENERAL.—The term of any grant, contract, or
cooperative agreement under this paragraph shall be
for not more than 2 years.
(ii) EXTENSION.—The Administrator may make 1 extension of a grant, contract, or cooperative agreement
under this paragraph for a period of not more than 1
year, upon a showing of good cause and need for the
extension.
(G) EXEMPTION FROM OTHER PROGRAM REQUIREMENTS.—
Financial assistance provided under this paragraph is in
addition to, and wholly separate from, any other form of
assistance provided by the Administrator under this Act.
(H) COMPETITIVE BASIS.—The Administration shall
award financial assistance under this paragraph on a competitive basis.
(13) SUPPLEMENTAL ASSISTANCE FOR CONTRACTOR MALFEASANCE.—
(A) IN GENERAL.—If a contractor or other person engages
in malfeasance in connection with repairs to, rehabilitation
of, or replacement of real or personal property relating to
which a loan was made under this subsection and the malfeasance results in substantial economic damage to the recipient of the loan or substantial risks to health or safety,
upon receiving documentation of the substantial economic
damage or the substantial risk to health and safety from
an independent loss verifier, and subject to subparagraph
(B), the Administrator may increase the amount of the

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loan under this subsection, as necessary for the cost of repairs, rehabilitation, or replacement needed to address the
cause of the economic damage or health or safety risk.
(B) REQUIREMENTS.—The Administrator may only increase the amount of a loan under subparagraph (A) upon
receiving an appropriate certification from the borrower
and person performing the mitigation attesting to the reasonableness of the mitigation costs and an assignment of
any proceeds received from the person engaging in the
malfeasance. The assignment of proceeds recovered from
the person engaging in the malfeasance shall be equal to
the amount of the loan under this section. Any mitigation
activities shall be subject to audit and independent
verification of completeness and cost reasonableness.
(14) BUSINESS RECOVERY CENTERS.—
(A) IN GENERAL.—The Administrator, acting through the
district offices of the Administration, shall identify locations that may be used as recovery centers by the Administration in the event of a disaster declared under this subsection or a major disaster.
(B) REQUIREMENTS FOR IDENTIFICATION.—Each district
office of the Administration shall—
(i) identify a location described in subparagraph (A)
in each county, parish, or similar unit of general local
government in the area served by the district office;
and
(ii) ensure that the locations identified under subparagraph (A) may be used as a recovery center without cost to the Government, to the extent practicable.
(15) INCREASED OVERSIGHT OF ECONOMIC INJURY DISASTER
LOANS.—The Administrator shall increase oversight of entities
receiving loans under paragraph (2), and may consider—
(A) scheduled site visits to ensure borrower eligibility
and compliance with requirements established by the Administrator; and
(B) reviews of the use of the loan proceeds by an entity
described in paragraph (2) to ensure compliance with requirements established by the Administrator.
(16) DISASTER DECLARATION IN RURAL AREAS.—
(A) DEFINITIONS.—In this paragraph—
(i) the term ‘‘rural area’’ means any county or other
political subdivision of a State, the District of Columbia, or a territory or possession of the United States
that is designated as a rural area by the Bureau of the
Census; and
(ii) the term ‘‘significant damage’’ means, with respect to property, uninsured losses of not less than 40
percent of the estimated fair replacement value or predisaster fair market value of the damaged property,
whichever is lower.
(B) DISASTER DECLARATION.—For the purpose of making
loans under paragraph (1) or (2), the Administrator may
declare a disaster in a rural area for which a major disaster was declared by the President under section 401 of
the Robert T. Stafford Disaster Relief and Emergency As-

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sistance Act (42 U.S.C. 5170) and for which individual assistance was not authorized under section 408 of such Act
(42 U.S.C. 5174) if—
(i) the Governor of the State or the Chief Executive
of the Indian tribal government in which the rural
area is located requests such a declaration; and
(ii) any home, small business concern, private nonprofit organization, or small agricultural cooperative
has incurred significant damage in the rural area.
(C) SBA REPORT.—Not later than 120 days after the date
of enactment of this paragraph, and every year thereafter,
the Administrator shall submit to the Committee on Small
Business and Entrepreneurship of the Senate and the
Committee on Small Business of the House of Representatives a report on, with respect to the 1-year period preceding submission of the report—
(i) any economic injury that resulted from a major
disaster declared by the President under section 401 of
the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5170) in a rural area;
(ii) each request for assistance made by the Governor of a State or the Chief Executive of an Indian
tribal government under subparagraph (B)(i) and the
response of the Administrator, including the timeline
for each response; and
(iii) any regulatory changes that will impact the
ability of communities in rural areas to obtain disaster
assistance under this subsection.
(17) REQUIREMENTS WHEN FUNDING IS LOW.—Not later than
24 hours after the unobligated balance of amounts available for
the cost of direct loans authorized by this subsection is less than
10 percent of the 10-year average annual cost provided in the
most recent Presidential budget request required under section
1105(a)(39)(A) of title 31, United States Code, or, if unavailable,
the 10-year average annual cost for the immediately preceding
10-year period of SBA disaster loans (as defined in section
1105(j) of such title), the Administrator shall notify the Committee on Appropriations and the Committee on Small Business
and Entrepreneurship of the Senate and the Committee on Appropriations and the Committee on Small Business of the
House of Representatives.
ø(16)¿ (18) STATUTE OF LIMITATIONS.—Notwithstanding any
other provision of law, any criminal charge or civil enforcement
action alleging that a borrower engaged in fraud with respect
to a loan made under this subsection in response to COVID–
19 during the covered period (as defined in section 1110(a) of
the CARES Act) shall be filed not later than 10 years after the
offense was committed.
No loan under this subsection, including renewals and extensions
thereof, may be made for a period or periods exceeding thirty years:
Provided, That the Administrator may consent to a suspension in
the payment of principal and interest charges on, and to an extension in the maturity of, the Federal share of any loan under this
subsection for a period not to exceed five years, if (A) the borrower
under such loan is a homeowner or a small business concern, (B)

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the loan was made to enable (i) such homeowner to repair or replace his home, or (ii) such concern to repair or replace plant or
equipment which was damaged or destroyed as the result of a disaster meeting the requirements of clause (A) or (B) of paragraph
(2) of this subsection, and (C) the Administrator determines such
action is necessary to avoid severe financial hardship: Provided further, That the provisions of paragraph (1) of subsection (d) of this
section shall not be applicable to any such loan having a maturity
in excess of twenty years. Notwithstanding any other provision of
law, and except as provided in subsection (d), the interest rate on
the Administration’s share of any loan made under subsection (b),
shall not exceed the average annual interest rate on all interestbearing obligations of the United States then forming a part of the
public debt as computed at the end of the fiscal year next preceding
the date of the loan and adjusted to the nearest one-eight of 1 per
centum plus one-quarter of 1 per centum: Provided, however, That
the interest rate for loans made under paragraphs (1) and (2) hereof shall not exceed the rate of interest which is in effect at the time
of the occurrence of the disaster. In agreements to participate in
loans on a deferred basis under this subsection, such participation
by the Administration shall not be in excess of 90 per centum of
the balance of the loan outstanding at the time of disbursement.
Notwithstanding any other provision of law, the interest rate on
the Administration’s share of any loan made pursuant to paragraph (1) of this subsection to repair or replace a primary residence
and/or replace or repair damaged or destroyed personal property,
less the amount of compensation by insurance or otherwise, with
respect to a disaster occurring on or after July 1, 1976, and prior
to October 1, 1978, shall be: 1 per centum on the amount of such
loan not exceeding $10,000, and 3 per centum on the amount of
such loan over $10,000 but not exceeding $40,000. The interest rate
on the Administration’s share of the first $250,000 of all other
loans made pursuant to paragraph (1) of this subsection, with respect to a disaster occurring on or after July 1, 1976, and prior to
October 1, 1978, shall be 3 per centum. All repayments of principal
on the Administration’s share of any loan made under the above
provisions shall first be applied to reduce the principal sum of such
loan which bears interest at the lower rates provided in this paragraph. The principal amount of any loan made pursuant to paragraph (1) in connection with a disaster which occurs on or after
April 1, 1977, but prior to January 1, 1978, may be increased by
such amount, but not more than $2,000, as the Administration determines to be reasonable in light of the amount and nature of loss,
damage, or injury sustained in order to finance the installation of
insulation in the property which was lost, damaged, or injured, if
the uninsured, damaged portion of the property is 10 per centum
or more of the market value of the property at the time of the disaster. No later than June 1, 1978, the Administration shall prepare
and transmit to the Select Committee on Small Business of the
Senate, the Committee on Small Business of the House of Representatives, and the Committee of the Senate and House of Representatives having jurisdiction over measures relating to energy
conservation, a report on its activities under this paragraph, including therein an evaluation of the effect of such activities on encouraging the installation of insulation in property which is re-

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paired or replaced after a disaster which is subject to this paragraph, and its recommendations with respect to the continuation,
modification, or termination of such activities.
In the administration of the disaster loan program under paragraphs (1) and (2) of this subsection, in the case of property loss
or damage or injury resulting from a major disaster as determined
by the President or a disaster as determined by the Administrator
which occurs on or after January 1, 1971, and prior to July 1, 1973,
the Small Business Administration, to the extent such loss or damage or injury is not compensated for by insurance or otherwise—
(A) may make any loan for repair, rehabilitation, or replacement of property damaged or destroyed without regard to
whether the required financial assistance is otherwise available from private sources;
(B) may, in the case of the total destruction or substantial
property damage of a home or business concern, refinance any
mortgage or other liens outstanding against the destroyed or
damaged property if such project is to be repaired, rehabilitated, or replaced, except that (1) in the case of a business concern, the amount refinanced shall not exceed the amount of the
physical loss sustained, and (2) in the case of a home, the
amount of each monthly payment of principal and interest on
the loan after refinancing under this clause shall be not less
than the amount of each such payment made prior to such refinancing;
(C) may, in the case of a loan made under clause (A) or a
mortgage or other lien refinanced under clause (B) in connection with the destruction of, or substantial damage to, property
owned and used as a residence by an individual who by reason
of retirement, disability, or other similar circumstances relies
for support on survivor, disability, or retirement benefits under
a pension, insurance, or other program, consent to the suspension of the payments of the principal of that loan, mortgage,
or lien during the lifetime of that individual and his souse for
so long as the Administration determines that making such
payments would constitute a substantial hardship;
(D) shall, notwithstanding the provisions of any other law
and upon presentation by the applicant of proof of loss or damage or injury and a bona fide estimate of cost of repair, rehabilitation, or replacement, cancel the principal of any loan
made to cover a loss or damage or injury resulting from such
disaster, except that—
(i) with respect to a loan made in connection with a disaster occurring on or after January 1, 1971 but prior to
January 1, 1972, the total amount so canceled shall not exceed $2,500, and the interest on the balance of the loan
shall be at a rate of 3 per centum per annum; and
(ii) with respect to a loan made in connection with a disaster occurring on or after January 1, 1972 but prior to
July 1, 1973, the total amount so canceled shall not exceed
$5,000, and the interest on the balance of the loan shall
be at a rate of 1 per centum per annum.
With respect to any loan referred to in clause (D) which is outstanding on the date of enactment of this paragraph, the Administrator shall—

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(i) make sure change in the interest rate on the balance of
such loan as is required under that clause effective as of such
date of enactment; and
(ii) in applying the limitation set forth in that clause with respect to the total amount of such loan which may be canceled,
consider as part of the amount so canceled any part of such
loan which was previously canceled pursuant to section 231 of
the Disaster Relief Act of 1970.
Whoever wrongfully misapplies the proceeds of a loan obtained
under this subsection shall be civilly liable to the Administrator in
an amount equal to one-and-one-half times the original principal
amount of the loan.
(E) A State grant made on or prior to July 1, 1979, shall not
be considered compensation for the purpose of applying the
provisions of section 312(a) of the Disaster Relief and Emergency Assistance Act to a disaster loan under paragraph (1)
(2)of this subsection.
(c) PRIVATE DISASTER LOANS.—
(1) DEFINITIONS.—In this subsection—
(A) the term ‘‘disaster area’’ means any area for which
the President declared a major disaster relating to which
the Administrator declares eligibility for additional disaster assistance under subsection (b)(9), during the period
of that major disaster declaration;
(B) the term ‘‘eligible individual’’ means an individual
who is eligible for disaster assistance under subsection
(b)(1) relating to a major disaster relating to which the Administrator declares eligibility for additional disaster assistance under subsection (b)(9);
(C) the term ‘‘eligible small business concern’’ means a
business concern that is—
(i) a small business concern, as defined under this
Act; or
(ii) a small business concern, as defined in section
103 of the Small Business Investment Act of 1958;
(D) the term ‘‘preferred lender’’ means a lender participating in the Preferred Lender Program;
(E) the term ‘‘Preferred Lender Program’’ has the meaning given that term in subsection (a)(2)(C)(ii); and
(F) the term ‘‘qualified private lender’’ means any privately-owned bank or other lending institution that—
(i) is not a preferred lender; and
(ii) the Administrator determines meets the criteria
established under paragraph (10).
(2) PROGRAM REQUIRED.—The Administrator shall carry out
a program, to be known as the Private Disaster Assistance program, under which the Administration may guarantee timely
payment of principal and interest, as scheduled, on any loan
made to an eligible small business concern located in a disaster
area and to an eligible individual.
(3) USE OF LOANS.—A loan guaranteed by the Administrator
under this subsection may be used for any purpose authorized
under subsection (b).
(4) ONLINE APPLICATIONS.—

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(A) ESTABLISHMENT.—The Administrator may establish,
directly or through an agreement with another entity, an
online application process for loans guaranteed under this
subsection.
(B) OTHER FEDERAL ASSISTANCE.—The Administrator
may coordinate with the head of any other appropriate
Federal agency so that any application submitted through
an online application process established under this paragraph may be considered for any other Federal assistance
program for disaster relief.
(C) CONSULTATION.—In establishing an online application process under this paragraph, the Administrator shall
consult with appropriate persons from the public and private sectors, including private lenders.
(5) MAXIMUM AMOUNTS.—
(A) GUARANTEE PERCENTAGE.—The Administrator may
guarantee not more than 85 percent of a loan under this
subsection.
(B) LOAN AMOUNT.—The maximum amount of a loan
guaranteed under this subsection shall be $2,000,000.
(6) TERMS AND CONDITIONS.—A loan guaranteed under this
subsection shall be made under the same terms and conditions
as a loan under subsection (b).
(7) LENDERS.—
(A) IN GENERAL.—A loan guaranteed under this subsection made to—
(i) a qualified individual may be made by a preferred lender; and
(ii) a qualified small business concern may be made
by a qualified private lender or by a preferred lender
that also makes loans to qualified individuals.
(B) COMPLIANCE.—If the Administrator determines that
a preferred lender knowingly failed to comply with the underwriting standards for loans guaranteed under this subsection or violated the terms of the standard operating procedure agreement between that preferred lender and the
Administration, the Administrator shall do 1 or more of
the following:
(i) Exclude the preferred lender from participating
in the program under this subsection.
(ii) Exclude the preferred lender from participating
in the Preferred Lender Program for a period of not
more than 5 years.
(8) FEES.—
(A) IN GENERAL.—The Administrator may not collect a
guarantee fee under this subsection.
(B) ORIGINATION FEE.—The Administrator may pay a
qualified private lender or preferred lender an origination
fee for a loan guaranteed under this subsection in an
amount agreed upon in advance between the qualified private lender or preferred lender and the Administrator.
(9) DOCUMENTATION.—A qualified private lender or preferred
lender may use its own loan documentation for a loan guaranteed by the Administrator under this subsection, to the extent
authorized by the Administrator. The ability of a lender to use

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its own loan documentation for a loan guaranteed under this
subsection shall not be considered part of the criteria for becoming a qualified private lender under the regulations promulgated under paragraph (10).
(10) IMPLEMENTATION REGULATIONS.—
(A) IN GENERAL.—Not later than 1 year after the date of
enactment of the Small Business Disaster Response and
Loan Improvements Act of 2008, the Administrator shall
issue final regulations establishing permanent criteria for
qualified private lenders.
(B) REPORT TO CONGRESS.—Not later than 6 months
after the date of enactment of the Small Business Disaster
Response and Loan Improvements Act of 2008, the Administrator shall submit a report on the progress of the regulations required by subparagraph (A) to the Committee on
Small Business and Entrepreneurship of the Senate and
the Committee on Small Business of the House of Representatives.
(11) AUTHORIZATION OF APPROPRIATIONS.—
(A) IN GENERAL.—Amounts necessary to carry out this
subsection shall be made available from amounts appropriated to the Administration to carry out subsection (b).
(B) AUTHORITY TO REDUCE INTEREST RATES AND OTHER
TERMS AND CONDITIONS.—Funds appropriated to the Administration to carry out this subsection, may be used by
the Administrator to meet the loan terms and conditions
specified in paragraph (6).
(12) PURCHASE OF LOANS.—The Administrator may enter
into an agreement with a qualified private lender or preferred
lender to purchase any loan guaranteed under this subsection.
(d)(1) The Administration may further extend the maturity of or
renew any loan made pursuant to this section, or any loan transferred to the Administration pursuant to Reorganization Plan
Numbered 2 of 1954, or Reorganization Plan Numbered 1 of 1957,
for additional periods not to exceed ten years beyond the period
stated therein, if such extension or renewal will aid in the orderly
liquidation of such loan.
(2) During any period in which principal and interest
charges are suspended on the Federal share of any loan, as
provided in subsection (b), the Administrator shall, upon the
request of any person, firm, or corporation having a participation in such loan, purchase such participation, or assume the
obligation of the borrower, for the balance of such period, to
make principal and interest payments on the non-Federal
share of such loan: Provided, That no such payments shall be
made by the Administrator in behalf of any borrower unless (i)
the Administrator determines that such action is necessary in
order to avoid a default, and (ii) the borrower agrees to make
payments to the Administration in an agreegate amount equal
to the amount paid in its behalf by the Administrator, in such
manner and at such time (during or after the term of the loan)
as the Administrator shall determine having due regard to the
purposes sought to be achieved by this paragraph.
(3) With respect to a disaster occurring on or after October
1, 1978, and prior the effective date of this Act, on the Admin-

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istration’s share of loans made pursuant to paragraph (1) of
subsection (b)—
(A) if the loan proceeds are to repair or replace a
primary residence and/or repair or replace damaged or
destroyed personal property, the interest rate shall be
3 percent on the first $55,000 of such loan;
(B) if the loan proceeds are to repair or replace property damaged or destroyed and if the applicant is a
business concern which is unable to obtain sufficient
credit elsewhere, the interest rate shall be as determined by the Administration, but not in excess of 5
percent per annum; and
(C) if the loan proceeds are to repair or replace property
damaged or destroyed and if the applicant is a business
concern which is able to obtain sufficient credit elsewhere,
the interest rate shall not exceed the current average market yield on outstanding marketable obligations of the
United States with remaining periods to maturity comparable to the average maturities of such loans and adjusted to the nearest one-eight of 1 percent, and an additional amount as determined by the Administration, but
not to exceed 1 percent: Provided, That three years after
such loan is fully disbursed and every two years thereafter
for the term of the loan, if the Administration determines
that the borrower is able to obtain a loan from one-Federal
sources at reasonable rates and terms for loans of similar
purposes and periods of time, the borrower shall, upon request by the Administration, apply for and accept such a
loan in sufficient amount to repay the Administration: Provided further, That no loan under subsection (b)(1) shall be
made, either directly or in cooperation with banks or other
lending institutions through agreements to participate on
an immediate or deferred basis, if the total amount outstanding and committed to the borrower under such subsection would exceed $500,000 for each disaster, unless an
applicant constitutes a major source of employment in an
area suffering a disaster, in which case the Administration, in its discretion, may waive the $500,000 limitation.
(4) Notwithstanding the provisions of any other law, the interest rate on the Federal share of any loan made under subsection (b) shall be—
(A) in the case of a homeowner unable to secure credit
elsewhere, the rate prescribed by the Administration but
not more than one-half the rate determined by the Secretary of the Treasury taking into consideration the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the average maturities of such loans
plus an additional charge of not to exceed 1 per centum
per annum as determined by the Administrator, and adjusted to the nearest one-eight of 1 per centum but not to
exceed 8 per centum per annum;
(B) in the case of a homeowner able to secure credit elsewhere, the rate prescribed by the Administration but not
more than the rate determined by the Secretary of the

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Treasury taking into consideration the current average
market yield on outstanding marketable obligations of the
United States with remaining periods to maturity comparable to the average maturities of such loans plus an additional charge of not to exceed 1 per centum per annum
as determined by the Administrator, and adjusted to the
nearest one-eighth of 1 per centum;
(C) in the case of a business concern unable to obtain
credit elsewhere, not to exceed 8 per centum per annum;
(D) in the case of a business concern able to obtain credit
elsewhere, the rate prescribed by the Administration but
not in excess of the rate prevailing in private market for
similar loans and not more than the rate prescribed by the
Administration as the maximum interest rate for deferred
participation (guaranteed) loans under section 7(a) of this
Act. Loans under this subparagraph shall be limited to a
maximum term of three years.
(5) Notwithstanding the provisions of any other law, the interest rate on the Federal share of any loan made under subsection (b)(1) and (b)(2) on account of a disaster commencing on
or after October 1, 1982, shall be—
(A) in the case of a homeowner unable to secure credit
elsewhere, the rate prescribed by the Administration but
not more than one-half the rate determined by the Secretary of the Treasury taking into consideration the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the average maturities of such loan
plus an additional charge of not to exceed 1 per centum
per annum as determined by the Administrator, and adjusted to the nearest one-eighth of 1 per centum, but not
to exceed 4 per centum per annum;
(B) in the case of a homeowner, able to secure credit
elsewhere, the rate prescribed by the Administration but
not more than the rate determined by the Secretary of the
Treasury taking into consideration the current average
market yield on outstanding marketable obligations of the
United States with remaining periods to maturity comparable to the average maturities of such loans plus an additional charge of not to exceed 1 per centum per annum
as determined by the Administrator, and adjusted to the
nearest one-eighth of 1 per centum, but not to exceed 8 per
centum per annum;
(C) in the case of a business, private nonprofit organization, or other concern, including agricultural cooperatives,
unable to obtain credit elsewhere, not to exceed 4 per centum per annum;
(D) in the case of a business concern able to obtain credit
elsewhere, the rate prescribed by the Administration but
not in excess of the lowest of (i) the rate prevailing in the
private market for similar loans, (ii) the rate prescribed by
the Administration as the maximum interest rate for deferred participation (guaranteed) loans under section 7(a)
of this Act, or (iii) 8 per centum per annum. Loans under

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this subparagraph shall be limited to a maximum term of
7 years.
(6) Notwithstanding the provisions of any other law, such
loans, subject to the reductions required by subparagraphs (A)
and (B) of paragraph 7(b)(1), shall be in amounts equal to 100
per centum of loss. The interest rate for loans made under
paragraphs 7(b)(1) and (2), as determined pursuant to paragraph (5), shall be the rate of interest which is in effect on the
date of the disaster commenced: Provided, That no loan under
paragraphs 7(b) (1) and (2) shall be made, either directly or in
cooperation with banks or other lending institutions through
agreements to participate on an immediate or deferred (guaranteed) basis, if the total amount outstanding and committed
to the borrower under subsection 7(b) would exceed $500,000
for each disaster unless an applicant constitutes a major source
of employment in an area suffering a disaster, in which case
the Administration, in its discretion, may waive the $500,000
limitation: Provided further, That the Administration, subject
to the reductions required by subparagraphs (A) and (B) of
paragraph 7(b)(1), shall not reduce the amount of eligibility for
any homeowner on account of loss of real estate to less than
$100,000 for each disaster nor for any homeowner or lessee on
account of loss of personal property to less than $20,000 for
each disaster, such sums being in addition to any eligible refinancing: Provided further, That the Administration shall not
require collateral for loans of $14,000 or less (or such higher
amount as the Administrator determines appropriate in the
event of a major disaster) which are made under paragraph (1)
of subsection (b): Provided further, That the Administrator, in
obtaining the best available collateral for a loan of not more
than $200,000 under paragraph (1) or (2) of subsection (b) relating to damage to or destruction of the property of, or economic injury to, a small business concern, shall not require the
owner of the small business concern to use the primary residence of the owner as collateral if the Administrator determines that the owner has other assets of equal quality and
with a value equal to or greater than the amount of the loan
that could be used as collateral for the loan: Provided further,
That nothing in the preceding proviso may be construed to reduce the amount of collateral required by the Administrator in
connection with a loan described in the preceding proviso or to
modify the standards used to evaluate the quality (rather than
the type) of such collateral. Employees of concerns sharing a
common business premises shall be aggregated in determining
‘‘major source of employment’’ status for nonprofit applicants
owning such premises.
With respect to any loan which is outstanding on the date of enactment of this paragraph and which was made on account of a disaster commencing on or after October 1, 1982, the Administrator
shall made such change in the interest rate on the balance of such
loan as is required herein effective as of the date of enactment.
(7) The Administration shall not withhold disaster assistance
pursuant to this paragraph to nurseries who are victims of drought
disasters. As used in section 7(b)(2) the term ‘‘an area affected by
a disaster’’ includes any county, or county contiguous thereto, de-

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termined to be a disaster by the President, the Secretary of Agriculture or the Administrator of the Small Business Administration.
(8) DISASTER LOANS FOR SUPERSTORM SANDY.—
(A) IN GENERAL.—Notwithstanding any other provision
of law, and subject to the same requirements and procedures that are used to make loans pursuant to subsection
(b), a small business concern, homeowner, nonprofit entity,
or renter that was located within an area and during the
time period with respect to which a major disaster was declared by the President under section 401 of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act (42
U.S.C. 5170) by reason of Superstorm Sandy may apply to
the Administrator—
(i) for a loan to repair, rehabilitate, or replace property damaged or destroyed by reason of Superstorm
Sandy; or
(ii) if such a small business concern has suffered
substantial economic injury by reason of Superstorm
Sandy, for a loan to assist such a small business concern.
(B) TIMING.—The Administrator shall select loan recipients and make available loans for a period of not less than
1 year after the date on which the Administrator carries
out this authority.
(C) INSPECTOR GENERAL REVIEW.—Not later than 6
months after the date on which the Administrator begins
carrying out this authority, the Inspector General of the
Administration shall initiate a review of the controls for
ensuring applicant eligibility for loans made under this
paragraph.
(e) The Administration shall not fund any Small Business Development Center or any variation thereof, except as authorized in
section 21 of this Act.
(f) ADDITIONAL REQUIREMENTS FOR 7(b) LOANS.—
(1) INCREASED DEFERMENT AUTHORIZED.—
(A) IN GENERAL.—In making loans under subsection (b),
the Administrator may provide, to the person receiving the
loan, an option to defer repayment on the loan.
(B) PERIOD.—The period of a deferment under subparagraph (A) may not exceed 4 years.
(g) NET EARNINGS CLAUSES PROHIBITED FOR 7(b) LOANS.—In
making loans under subsection (b), the Administrator shall not require the borrower to pay any non-amortized amount for the first
five years after repayment begins.
(e) [RESERVED].
(f) [RESERVED].
(h)(1) The Administration also is empowered, where other financial assistance is not available on reasonable terms, to make such
loans (either directly or in cooperation with Banks or other lending
institutions through agreements to participate on an immediate or
deferred basis) as the Administration may determine to be necessary or appropriate—
(A) to assist any public or private organization—
(i) which is organized under the laws of the United
States or of any State, operated in the interest of handi-

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capped individuals, the net income of which does not inure
in whole or in part to the benefit of any shareholder or
other individual;
(ii) which complies with any applicable occupational
health and safety standard prescribed by the Secretary of
Labor; and
(iii) which, in the production of commodities and in the
provision of services during any fiscal year in which it receives financial assistance under this subsection, employs
handicapped individuals for not less than 75 per centum of
the man-hours required for the production or provision of
the commodities or services; or
(B) to assist any handicapped individual in establishing, acquiring, or operating a small business concern.
(2) The Administration’s share of any loan made under this subsection shall not exceed $350,000, nor may any such loan be made
if the total amount outstanding and committed (by participation or
otherwise) to the borrower from the business loan and investment
fund established by section 4(c)(1)(B) of this Act would exceed
$350,000. In agreements to participate in loans on a deferred basis
under this subsection, the Administration’s participation may total
100 per centum of the balance of the loan at the time of disbursement. The Administration’s share of any loan made under this subsection shall bear interest at the rate of 3 per centum per annum.
The maximum term of any such loan, including extensions and renewals thereof, may not exceed fifteen years. All loans made under
this subsection shall be of such sound value or so secured as reasonably to assure repayment: Provided, however, That any reasonable doubt shall be resolved in favor of the applicant.
(3) For purposes of this subsection, the term ‘‘handicapped individual’’ means a person who has a physical, mental, or emotional
impairment, defect, ailment, disease, or disability of a permanent
nature which in any way limits the selection of any type of employment for which the person would otherwise be qualified or
qualifiable.
(i)(1) The Administration also is empowered to make, participate
(on an immediate basis) in, or guarantee loans, repayable in not
more than fifteen years, to any small business concern, or to any
qualified person seeking to establish such a concern, when it determines that such loans will further the policies established in section 2(b) of this Act, with particular emphasis on the preservation
or establishment of small business concerns located in urban or
rural areas with high proportions of unemployed or low-income individuals, or owned by low-income individuals: Provided, however,
That no such loans shall be made, participated in, or guaranteed
if the total of such Federal assistance to a single borrower outstanding at any one time would exceed $100,000. The Administration may defer payments on the principal of such loans for a grace
period and use such other methods as it deems necessary and appropriate to assure the successful establishment and operation of
such concern. The Administration may, in its discretion, as a condition of such financial assistance, require that the borrower take
steps to improve his management skills by participating in a management training program approved by the Administration: Provided, however, That any management training program so ap-

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proved must be of sufficient scope and duration to provide reasonable opportunity for the individuals served to develop entrepreneurial and managerial self-sufficiency.
(2) The Administration shall encourage, as far as possible, the
participation of the private business community in the program of
assistance to such concerns, and shall seek to stimulate new private lending activities to such concerns through the use of the loan
guarantees, participations in loans, and pooling arrangements authorized by this subsection.
(3) To insure an equitable distribution between urban and rural
areas for loans between $3,500 and $100,000 made under this subsection, the Administration is authorized to use the agencies and
agreements and delegations developed under title III of the Economic Opportunity Act of 1964, as amended, as it shall determine
necessary.
(4) The Administration shall provide for the continuing evaluation of programs under this subsection, including full information
on the location, income characteristics, and types of businesses and
individuals assisted, and on new private lending activity stimulated, and the results of such evaluation together with recommendations shall be included in the report required by section
10(a) of this Act.
(5) Loans made pursuant to this subsection (including immediate
participation in and guarantees of such loans) shall have such
terms and conditions as the Administration shall determine, subject to the following limitations—
(A) there is reasonable assurance of repayment of the loan;
(B) the financial assistance is not otherwise available on reasonable terms from private sources or other Federal, State, or
local programs;
(C) the amount of the loan, together with other funds available, is adequate to assure completion of the project or achievement of the purposes for which the loan is made;
(D) the loan bears interest at a rate not less than (i) a rate
determined by the Secretary of the Treasury, taking into consideration the average market yield on outstanding Treasury
obligations of comparable maturity, plus (ii) such additional
charge, if any, toward covering other costs of the program as
the Administration may determine to be consistent with its
purposes: Provided, however, That the rate of interest charged
on loans made in redevelopment areas designated under the
Public Works and Economic Development Act of 1965 (42
U.S.C. 3108 et seq.) shall not exceed the rate currently applicable to new loans made under section 201 of that Act (42 U.S.C.
3142); and
(E) fees not in excess of amounts necessary to cover administrative expenses and probable losses may be required on loan
guarantees.
(6) The Administration shall take such steps as may be necessary
to insure that, in any fiscal year, at least 50 per centum of the
amounts loaned or guaranteed pursuant to this subsection are allotted to small business concerns located in urban areas identified
by the Administration as having high concentrations of unemployed
or low-income individuals or to small business concerns owned by
low-income individuals. The Administration shall define the mean-

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ing of low income as it applies to owners of small business concerns
eligible to be assisted under this subsection.
(7) No financial assistance shall be extended pursuant to this
subsection when the Administration determines that the assistance
will be used in relocating establishments from one area to another
if such relocation would result in an increase in unemployment in
the area of original location.
(j)(1) the Administration shall provide financial assistance to
public or private organizations to pay all or part of the cost of
projects designated to provide technical or management assistance
to individuals or enterprises eligible for assistance under sections
7(i), 7(j)(10), and 8(a) of this Act, with special attention to small
businesses located in areas of high concentration of unemployed or
low-income individuals, to small businesses eligible to receive contracts pursuant to section 8(a) of this Act.
(2) Financial assistance under this subsection may be provided
for projects, including, but not limited to—
(A) planning and research, including feasibility studies and
market research;
(B) the identification and development of new business opportunities;
(C) the furnishing of centralized services with regard to public services and Federal Government programs including programs authorized under sections 7(i), (7)(j)(10), and 8(a) of this
Act;
(D) the establishment and strengthening of business service
agencies, including trade associations and cooperative; and
(E) the furnishing of business counseling, management training, and legal and other related services, with special emphasis
on the development of management training programs using
the resources of the business community, including the development of management training opportunities in existing business, and with emphasis in all cases upon providing management training of sufficient scope and duration to develop entrepreneurial and managerial self-sufficiency on the part of the
individuals served.
(3) The Administration shall encourage the placement of subcontracts by businesses with small business concerns located in
area of high concentration of unemployed or low-income individuals, with small businesses owned by low-income individuals, and
with small businesses eligible to receive contracts pursuant to section 8(a) of this Act. The Administration may provide incentives
and assistance to such businesses that will aid in the training and
upgrading of potential subcontractors or other small business concerns eligible for assistance under section 7(i), 7(j), and 8(a), of this
Act.
(4) The Administration shall give preference to projects which
promote the ownership, participation in ownership, or management
of small businesses owned by low-income individuals and small
businesses eligible to receive contracts pursuant to section 8(a) of
this Act.
(5) The financial assistance authorized for projects under this
subsection includes assistance advanced by grant, agreement, or
contract.

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(6) The Administration is authorized to make payments under
grants and contracts entered into under this subsection in lump
sum or installments, and in advance or by way of reimbursement,
and in the case of grants, with necessary adjustments on account
of overpayments or underpayments.
(7) To the extent feasible, services under this subsection shall be
provided in a location which is easily accessible to the individuals
and small business concerns served.
(9) The Administration shall take such steps as may be necessary
and appropriate, in coordination and cooperation with the heads of
other Federal departments and agencies, to insure that contracts,
subcontracts, and deposits made by the Federal Government or
with programs aided with Federal funds are placed in such way as
to further the purposes of sections 7(i), 7(j), and 8(a) of this Act.
(10) There is established with the Administration a small business and capital ownership development program (hereinafter referred to as the ‘‘Program’’) which shall provide assistance exclusively for small business concerns eligible to receive contracts pursuant to section 8(a) of this Act. The program, and all other services and activities authorized under section 7(j) and 8(a) of this Act,
shall be managed by the Associate Administrator for Minority
Small Business and Capital Ownership Development under the supervision of, and responsible to, the Administrator.
(A) The Program shall—
(i) assist small business concerns participating in the
Program (either through public or private organizations) to
develop and maintain comprehensive business plans which
set forth the Program Participant’s specific business targets, objectives, and goals developed and maintained in
conformity with subparagraph (D).
(ii) provide for such other nonfinancial services as
deemed necessary for the establishment, preservation, and
growth of small business concerns participating in the Program, including but not limited to (I) loan packaging, (II)
financing counseling, (III) accounting and bookkeeping assistance, (IV) marketing assistance, and (V) management
assistance;
(iii) assist small business concerns participating in the
Program to obtain equity and debt financing;
(iv) establish regular performance monitoring and reporting systems for small business concerns participating
in the Program to assure compliance with their business
plans;
(v) analyze and report the causes of success and failure
of small business concerns participating in the Program;
and
(vi) provide assistance necessary to help small business
concerns participating in the Program to procure surety
bonds, with such assistance including, but not limited to,
(I) the preparation of application forms required to receive
a surety bond, (II) special management and technical assistance designed to meet the specific needs of small business concerns participating in the Program and which
have received or are applying to receive a surety bond, and

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(III) guarantee from the Administration pursuant to title
IV, part B of the Small Business Investment Act of 1958.
(B) Small business concerns eligible to receive contracts pursuant to section 8(a) of this Act shall participate in the Program.
(C)(i) A small business concern participating in any program
or activity conducted under the authority of this paragraph or
eligible for the award of contracts pursuant to section 8(a) on
September 1, 1988, shall be permitted continued participation
and eligibility in such program or activity for a period of time
which is the greater of—
(I) 9 years less the number of years since the award of
its first contract pursuant to section 8(a); or
(II) its original fixed program participation term (plus
any extension thereof) assigned prior to the effective date
of this paragraph plus eighteen months.
(ii) Nothing contained in this subparagraph shall be deemed
to prevent the Administration from instituting a termination
or graduation pursuant to subparagraph (F) or (H) for issues
unrelated to the expiration of any time period limitation.
(D)(i) Promptly after certification under paragraph (11) a
Program Participant shall submit a business plan (hereinafter
referred to as the plan’’) as described in clause (ii) of this subparagraph for review by the Business Opportunity Specialist
assigned to assist such Program Participant. The plan may be
a revision of a preliminary business plan submitted by the Program Participant or required by the Administration as a part
of the application for certification under this section and shall
be designed to result in the Program Participant eliminating
the conditions or circumstances upon which the Administration
determined eligibility pursuant to section 8(a)(6). Such plan,
and subsequent modifications submitted under clause (iii) of
this subparagraph, shall be approved by the business opportunity specialist prior to the Program Participant being eligible
for award of a contract pursuant to section 8(a).
(ii) The plans submitted under this subparagraph shall
include the following:
(I) An analysis of market potential, competitive environment, and other business analyses estimating the
Program Participant’s prospects for profitable operations during the term of program participation and
after graduation.
(II) An analysis of the Program Participant’s
strengths and weaknesses with particular attention to
correcting any financial, managerial, technical, or personnel conditions which are likely to impede the small
business concern from receiving contracts other than
those awarded under section 8(a).
(III) Specific targets, objectives, and goals, for the
business development of the Program Participant during the next and succeeding years utilizing the results
of the analyses conducted pursuant to subclauses (I)
and (II).
(IV) A transition management plan outlining specific
steps to assure profitable business operations after

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graduation (to be incorporated into the Program Participant’s plan during the first year of the transitional
stage of Program participation).
(V) Estimates of contract awards pursuant to section
8(a) and from other sources, which the Program Participant will require to meet the specific targets, objectives, and goals for the years covered by its plan. The
estimates established shall be consistent with the provisions of subparagraph (I) and section 8(a).
(iii) Each Program Participant shall annually review its
currently approved plan with its Business Opportunity
Specialist and modify such plan as may be appropriate.
Any modified plan shall be submitted to the Administration for approval. The currently approved plan shall be
considered valid until such time as a modified plan is approved by the Business Opportunity Specialist. Annual reviews pertaining to years in the transitional stage of program participation shall require, as appropriate, a written
verification that such Program Participant has complied
with the requirements of subparagraph (I) relating to attaining business activity from sources other than contracts
awarded pursuant to section 8(a).
(iv) Each Program Participant shall annually forecast its
needs for contract awards under section 8(a) for the next
program year and the succeeding program year during the
review of its business plan, conducted pursuant to clause
(iii). Such forecast shall be known as the section 8(a) contract support level and shall be included in the Program
Participant’s business plan. Such forecast shall include—
(I) the aggregate dollar value of contract support to
be sought on a noncompetitive basis under section
8(a), reflecting compliance with the requirements of
subparagraph (I) relating to attaining business activity from sources other than contracts awarded pursuant to section 8(a),
(II) the types of contract opportunities being sought,
identified by Standard Industrial Classification (SIC)
Code or otherwise,
(III) an estimate of the dollar value of contract support to be sought on a competitive basis, and
(IV) such other information as may be requested by
the Business Opportunity Specialist to provide effective business development assistance to the Program
Participant.
(E) A small business concern participating in the program
conducted under the authority of this paragraph and eligible
for the award of contracts pursuant to section 8(a) shall be denied all such assistance if such concern—
(i) voluntarily elects not to continue participation;
(ii) completes the period of Program participation as prescribed by paragraph (15);
(iii) is terminated pursuant to a termination proceeding
conducted in accordance with section 8(a)(9); or
(iv) is graduated pursuant to a graduation proceeding
conducted in accordance with section 8(a)(9).

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(F) For the purposes of section and 8(a), the terms ‘‘terminated’’ or ‘‘termination’’ means the total denial or suspension
of assistance under this paragraph or under section 8(a) prior
to the graduation of the participating small business concern
or prior to the expiration of the maximum program participation in term. An action for termination shall be based upon
good cause, including—
(i) the failure by such concern to maintain its eligibility
for Program participation;
(ii) the failure of the concern to engage in business practices that will promote its competitiveness within a reasonable period of time as evidenced by, among other indicators, a pattern of unjustified delinquent performance or
terminations for default with respect to contracts awarded
under the authority of section 8(a);
(iii) a demonstrated pattern of failing to make required
submissions or responses to the Administration in a timely
manner;
(iv) the willful violation of any rule or regulation of the
Administration pertaining to material issues;
(v) the debarment of the concern or its disadvantaged
owners by any agency pursuant to subpart 9.4 of title 48,
Code of Federal Regulations (or any successor regulation);
or
(vi) the conviction of the disadvantaged owner or an officer of the concern for any offense indicating a lack of business integrity including any conviction for embezzlement,
theft, forgery, bribery, falsification or violation of section
16. For purposes of this clause, no termination action shall
be taken with respect to a disadvantaged owner solely because of the conviction of an officer of the concern (who is
other than a disadvantaged owner) unless such owner conspired with, abetted, or otherwise knowingly acquiesced in
the activity or omission that was the basis of such officer’s
conviction.
(G) The Director of the Division may initiate a termination
proceeding by recommending such action to the Associate Administrator for Minority Small Business and Capital Ownership Development. Whenever the Associate Administrator, or a
designee of such officer, determines such termination is appropriate, within 15 days after making such a determination the
Program Participant shall be provided a written notice of intent to terminate, specifying the reasons for such action. No
Program Participant shall be terminated from the Program
pursuant to subparagraph (F) without first being afforded an
opportunity for a hearing in accordance with section 8(a)(9).
(H) For the purposes of sections 7(j) and 8(a) the term ‘‘graduated’’ or ‘‘graduation’’ means that the Program Participant is
recognized as successfully completing the program by substantially achieving the targets, objectives, and goals contained in
the concern’s business plan thereby demonstrating its ability to
compete in the marketplace without assistance under this section or section 8(a).
(I)(i) During the developmental stage of its participation in
the Program, a Program Participant shall take all reasonable

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efforts within its control to attain the targets contained in its
business plan for contracts awarded other than pursuant to
section 8(a) (hereinafter referred to as ‘‘business activity targets.’’). Such efforts shall be made a part of the business plan
and shall be sufficient in scope and duration to satisfy the Administration that the Program Participant will engage a reasonable marketing strategy that will maximize its potential to
achieve its business activity targets.
(ii) During the transitional stage of the Program a Program
Participant shall be subject to regulations regarding business
activity targets that are promulgated by the Administration
pursuant to clause (iii);
(iii) The regulations referred to in clause (ii) shall:
(I) establish business activity targets applicable to Program Participants during the fifth year and each succeeding year of Program Participation; such targets, for
such period of time, shall reflect a reasonably consistent
increase in contracts awarded other than pursuant to section 8(a), expressed as a percentage of total sales; when
promulgating business activity targets the Administration
may establish modified targets for Program Participants
that have participated in the Program for a period of
longer than four years on the effective date of this subparagraph;
(II) require a Program Participant to attain its business
activity targets;
(III) provide that, before the receipt of any contract to be
awarded pursuant to section 8(a), the Program Participant
(if it is in the transitional stage) must certify that it has
complied with the regulations promulgated pursuant to
subclause (II), or that it is in compliance with such remedial measures as may have been ordered pursuant to regulations issued under subclause (V);
(IV) require the Administration to review each Program
Participant’s performance regarding attainment of business activity targets during periodic reviews of such Participant’s business plan; and
(V) authorize the Administration to take appropriate remedial measures with respect to a Program Participant
that has failed to attain a required business activity target
for the purpose of reducing such Participant’s dependence
on contracts awarded pursuant to section 8(a); such remedial actions may include, but are not limited to assisting
the Program Participant to expand the dollar volume of its
competitive business activity or limiting the dollar volume
of contracts awarded to the Program Participant pursuant
to section 8(a); except for actions that would constitute a
termination, remedial measures taken pursuant to this
subclause shall not be reviewable pursuant to section
8(a)(9).
(J)(i) The Administration shall conduct an evaluation of a
Program Participant’s eligibility for continued participation in
the Program whenever it receives specific and credible information alleging that such Program Participant no longer meets
the requirements for Program eligibility. Upon making a find-

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ing that a Program Participant is no longer eligible, the Administration shall initiate a termination proceeding in accordance with subparagraph (F). A Program Participant’s eligibility
for award of any contract under the authority of section 8(a)
may be suspended pursuant to subpart 9.4 of title 48, Code of
Federal Regulations (or any successor regulation).
(ii)(I) Except as authorized by subclauses (II) or (III), no
award shall be made pursuant to section 8(a) to a concern
other than a small business concern.
(II) In determining the size of a small business concern
owned by a socially and economically disadvantaged Indian
tribe (or a wholly owned business entity of such tribe), each
firm’s size shall be independently determined without regard
to its affiliation with the tribe, any entity of the tribal government, or any other business enterprise owned by the tribe, unless the Administrator determines that one or more such tribally owned business concerns have obtained, or are likely to obtain, a substantial unfair competitive advantage within an industry category.
(III) Any joint venture established under the authority of
section 602(b) of Public Law 100–656, the ‘‘Business Opportunity Development Reform Act of 1988’’, shall be eligible for
award of a contract pursuant to section 8(a).
(11)(A) The Associate Administrator for Minority Small Business
and Capital Ownership Development shall be responsible for coordinating and formulating policies relating to Federal assistance
to small business concerns eligible for assistance under section 7(i)
of this Act and small business concerns eligible to receive contracts
pursuant to section 8(a) of this Act.
(B)(i) Except as provided in clause (iii), no individual who
was determined pursuant to section 8(a) to be socially and economically disadvantaged before the effective date of this subparagraph shall be permitted to assert such disadvantage with
respect to any other concern making application for certification after such effective date.
(ii) Except as provided in clause (iii), any individual
upon whom eligibility is based pursuant to section 8(a)(4)
shall be permitted to assert such eligibility for only one
small business concern.
(iii) A socially and economically disadvantaged Indian
tribe may own more than one small business concern eligible for assistance pursuant to section 7(j)(10) and section
8(a) if—
(I) the Indian tribe does not own another firm in the
same industry which has been determined to be eligible to receive contracts under this program, and
(II) the individuals responsible for the management
and daily operations of the concern do not manage
more than two Program Participants.
(C) No concern, previously eligible for the award of contracts pursuant to section 8(a), shall be subsequently recertified for program
participation if its prior participation in the program was concluded
for any of the reasons described in paragraph (10)(E).
(D) A concern eligible for the award of contracts pursuant to this
subsection shall remain eligible for such contracts if there is a

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transfer of ownership and control (as defined pursuant to section
8(a)(4)) to individuals who are determined to be socially and economically disadvantaged pursuant to section 8(a). In the event of
such a transfer, the concern, if not terminated or graduated, shall
be eligible for a period of continued participation in the program
not to exceed the time limitations prescribed in paragraph (15).
(E) There is established a Division of Program Certification and
Eligibility (hereinafter referred to in this paragraph as the Division’’) that shall be made part of the Office of Minority Small Business and Capital Ownership Development. The Division shall be
headed by a Director who shall report directly to the Associate Administrator for Minority Small Business and Capital Ownership
Development. The Division shall establish field offices within such
regional offices of the Administration as may be necessary to perform efficiently its functions and responsibilities.
(F) Subject to the provisions of section 8(a)(9), the functions and
responsibility of the Division are to—
(i) receive, review and evaluate applications for certification
pursuant to paragraphs (4), (5), (6) and (7) of section 8(a);
(ii) advise each program applicant within 15 days after the
receipt of an application as to whether such application is complete and suitable for evaluation and, if not, what matters
must be rectified;
(iii) render recommendations on such applications to the Associate Administrator for Minority Small Business and Capital
Ownership Development;
(iv) review and evaluate financial statements and other submissions from concerns participating in the program established by paragraph (10) to ascertain continued eligibility to receive subcontracts pursuant to section 8(a);
(v) make a request for the initiation of termination or graduation proceedings, as appropriate, to the Associate Administrator for Minority Small Business and Capital Ownership Development;
(vi) make recommendations to the Associate Administrator
for Minority Small Business and Capital Ownership Development concerning protests from applicants that have been denied program admission;
(vii) decide protests regarding the status of a concern as a
disadvantaged concern for purposes of any program or activity
conducted under the authority of subsection (d) of section 8, or
any other provision of Federal law that references such subsection for a definition of program eligibility; and
(viii) implement such policy directives as may be issued by
the Associate Administrator for Minority Small Business and
Capital Ownership Development pursuant to subparagraph (I)
regarding, among other things, the geographic distribution of
concerns to be admitted to the program and the industrial
make-up of such concerns.
(G) An applicant shall not be denied admission into the program
established by paragraph (10) due solely to a determination by the
Division that specific contract opportunities are unavailable to assist in the development of such concern unless—

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(i) the Government has not previously procured and is unlikely to procure the types of products or services offered by the
concern; or
(ii) the purchases of such products or services by the Federal
Government will not be in quantities sufficient to support the
developmental needs of the applicant and other Program Participants providing the same or similar items or services.
(H) Not later than 90 days after receipt of a completed application for Program certification, the Associate Administrator
for Minority Small Business and Capital Ownership Development shall certify a small business concern as a Program Participant or shall deny such application.
(I) Thirty days before the conclusion of each fiscal year, the Director of the Division shall review all concerns that have been admitted into the Program during the preceding 12-month period.
The review shall ascertain the number of entrants, their geographic distribution and industrial classification. The Director shall
also estimate the expected growth of the Program during the next
fiscal year and the number of additional Business Opportunity Specialists, if any, that will be needed to meet the anticipated demand
for the Program. The findings and conclusions of the Director shall
be reported to the Associate Administrator for Minority Small Business and Capital Ownership Development by September 30 of each
year. Based on such report and such additional data as may be relevant, the Associate Administrator shall, by October 31 of each
year, issue policy and program directives applicable to such fiscal
year that—
(i) establish priorities for the solicitation of program applications from underrepresented regions and industry categories;
(ii) assign staffing levels and allocate other program resources as necessary to meet program needs; and
(iii) establish priorities in the processing and admission of
new Program Participants as may be necessary to achieve an
equitable geographic distribution of concerns and a distribution
of concerns across all industry categories in proportions needed
to increase significantly contract awards to small business concerns owned and controlled by socially and economically disadvantaged individuals. When considering such increase the
Administration shall give due consideration to those industrial
categories where Federal purchases have been substantial but
where the participation rate of such concerns has been limited.
(12)(A) The Administration shall segment the Capital Ownership
Development Program into two stages: a developmental stage; and
a transitional stage.
(B) The developmental stage of program participation shall be
designed to assist the concern in its effort to overcome its economic
disadvantage by providing such assistance as may be necessary
and appropriate to access its markets and to strengthen its financial and managerial skills.
(C) The transitional stage of program participation shall be designed to overcome, insofar as practicable, the remaining elements
of economic disadvantage and to prepare such concern for graduation from the program.

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(13) A Program Participant, if otherwise eligible, shall be qualified to receive the following assistance during the stages of program participation specified in paragraph 12:
(A) Contract support pursuant to section 8(a).
(B) Financial assistance pursuant to section 7(a)(20).
(C) A maximum of two exemptions from the requirements of
section 1(a) of the Act entitled ‘‘An Act providing conditions for
the purchase of supplies and the making of contracts by the
United States, and for other purposes’’, approved June 30,
1936 (49 Stat. 2036), which exemptions shall apply only to contracts awarded pursuant to section (8)(a) and shall only be
used to allow for contingent agreements by a small business
concern to acquire the machinery, equipment, facilities, or
labor needed to perform such contracts. No exemption shall be
made pursuant to this subparagraph if the contract to which
it pertains has an anticipated value in excess of $10,000,000.
This subparagraph shall cease to be effective on October 1,
1992.
(D) A maximum of five exemptions from the requirements of
the Act entitled ‘‘An Act requiring contracts for the construction, alteration and repair of any public building or public work
of the United States to be accompanied by a performance bond
protecting the United States and by an additional bond for the
protection of persons furnishing material and labor for the construction, alteration, or repair of said public buildings or public
works’’, approved August 24, 1935 (49 Stat. 793), which exemptions shall apply only to contracts awarded pursuant to section
8(a), except that, such exemptions may be granted under this
subparagraph only if—
(i) the Administration finds that such concern is unable
to obtain the requisite bond or bonds from a surety and
that no surety is willing to issue a bond subject to the
guarantee provision of title IV of the Small Business Investment Act of 1958 (15 U.S.C. 692 et seq.);
(ii) the Administration and the agency providing the contracting opportunity have provided for the protection of
persons furnishing materials or labor to the Program Participant by arranging for the direct disbursement of funds
due to such persons by the procuring agency or through
any bank the deposits of which are insured by the Federal
Deposit Insurance Corporation; and
(iii) the contract to which it pertains does not exceed
$3,000,000 in amount. This subparagraph shall cease to be
effective on October 1, 1994.
(E) Financial assistance whereby the Administration may
purchase in whole or in part, and on behalf of such concerns,
skills training or upgrading for employees or potential employees of such concerns. Such assistance may be made without regard to section 18(a). Assistance may be made by direct payment to the training provider or by reimbursing the Program
Participant or the Participant’s employee, if such reimbursement is found to be reasonable and appropriate. For purposes
of this subparagraph the term ‘‘training provider’’ shall mean
an institution of higher education, a community or vocational
college, or an institution eligible to provide skills training or

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upgrading under title I of the Workforce Innovation and Opportunity Act. The Administration shall, in consultation with
the Secretary of Labor, promulgate rules and regulations to implement this subparagraph that establish acceptable training
and upgrading performance standards and provide for such
monitoring or audit requirements as may be necessary to ensure the integrity of the training effort. No financial assistance
shall be granted under the subparagraph unless the Administrator determines that—
(i) such concern has documented that it has first explored the use of existing cost-free or cost-subsidized training programs offered by public and private sector agencies
working with programs of employment and training and
economic development;
(ii) no more than five employees or potential employees
of such concern are recipients of any benefits under this
subparagraph at any one time;
(iii) no more than $2,500 shall be made available for any
one employee or potential employee;
(iv) the length of training or upgrading financed by this
subparagraph shall be no less than one month nor more
than six months;
(v) such concern has given adequate assurance it will
employ the trainee or upgraded employee for at least six
months after the training or upgrading financed by this
subparagraph has been completed and each trainee or upgraded employee has provided a similar assurance to remain within the employ of such concern for such period; if
such concern, trainee, or upgraded employee breaches this
agreement, the Administration shall be entitled to and
shall make diligent efforts to obtain from the violating
party the repayment of all funds expended on behalf of the
violating party, such repayment shall be made to the Administration together with such interest and costs of collection as may be reasonable; the violating party shall be
barred from receiving any further assistance under this
subparagraph;
(vi) the training to be financed may take place either at
such concern’s facilities or at those of the training provider; and
(vii) such concern will maintain such records as the Administration deems appropriate to ensure that the provisions of this paragraph and any other applicable law have
not been violated.
(F)(i) The transfer of technology or surplus property owned
by the United States to such a concern. Activities designed to
effect such transfer shall be developed in cooperation with the
heads of Federal agencies and shall include the transfer by
grant, license, or sale of such technology or property to such a
concern. Such property may be transferred to Program Participants on a priority basis. Technology or property transferred
under this subparagraph shall be used by the concern during
the normal conduct of its business operation and shall not be
sold or transferred to any other party (other than the Govern-

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ment) during such concern’s term of participation in the Program and for one year thereafter.
(ii)(I) In this clause—
(aa) the term ‘‘covered period’’ means the 2-year period beginning on the date on which the President declared the applicable major disaster; and
(bb) the term ‘‘disaster area’’ means the area for
which the President has declared a major disaster,
during the covered period.
(II) The Administrator may transfer technology or surplus property under clause (i) on a priority basis to a small
business concern located in a disaster area if—
(aa) the small business concern meets the requirements for such a transfer, without regard to whether
the small business concern is a Program Participant;
and
(bb) for a small business concern that is a Program
Participant, on and after the date on which the President declared the applicable major disaster, the small
business concern has not received property under this
subparagraph on the basis of the status of the small
business concern as a Program Participant.
(III) For any transfer of property under this clause to a
small business concern, the terms and conditions shall be
the same as a transfer to a Program Participant, except
that the small business concern shall agree not to sell or
transfer the property to any party other than the Federal
Government during the covered period.
(IV) A small business concern that receives a transfer of
property under this clause may not receive a transfer of
property under clause (i) during the covered period.
(V) If a small business concern sells or transfers property in violation of the agreement described in subclause
(III), the Administrator may initiate proceedings to prohibit the small business concern from receiving a transfer
of property under this clause or clause (i), in addition to
any other remedy available to the Administrator.
(iii)(I) In this clause, the term ‘‘covered period’’means—
(aa) in the case of a Puerto Rico business, the period
beginning on August 13, 2018, and ending on the date
on which the Oversight Board established under section 2121 of title 48 terminates; and
(bb) in the case of a covered territory business, the
period beginning on the date of the enactment of this
item and ending on the date that is 4 years after such
date of enactment.
(II) The Administrator may transfer technology or surplus
property under clause (i) to a Puerto Rico business or a covered
territory business if either such business meets the requirements for such a transfer, without regard to whether either
such business is a Program Participant.
(G) Training assistance whereby the Administration shall
conduct training sessions to assist individuals and enterprises
eligible to receive contracts under section 8(a) in the develop-

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ment of business principles and strategies to enhance their
ability to successfully compete for contracts in the marketplace.
(H) Joint ventures, leader-follower arrangements, and
teaming agreements between the Program Participant and
other Program Participants and other business concerns with
respect to contracting opportunities for the research, development, full-scale engineering or production of major systems.
Such activities shall be undertaken on the basis of programs
developed by the agency responsible for the procurement of the
major system, with the assistance of the Administration.
(I) Transitional management business planning training and
technical assistance.
(J) Program Participants in the developmental stage of Program participation shall be eligible for the assistance provided
by subparagraphs (A), (B), (C), (D), (E), (F), and (G).
(14) Program Participants in the transitional stage of Program
participation shall be eligible for the assistance provided by subparagraphs (A), (B), (F), (G), (H), and (I) of paragraph (13).
(15) Subject to the provisions of paragraph (10)(C), a small business concern may receive developmental assistance under the Program and contracts under section 8(a) for a total period of not
longer than nine years, measured from the date of its certification
under the authority of such section, of which—
(A) no more than four years may be spent in the developmental stage of Program Participation; and
(B) no more than five years may be spent in the transitional
stage of Program Participation.
(16)(A) The Administrator shall develop and implement a process
for the systematic collection of data on the operations of the Program established pursuant to paragraph (10).
(B) Not later than April 30 of each year, the Administrator shall
submit a report to the Congress on the Program that shall include
the following:
(i) The average personal net worth of individuals who own
and control concerns that were initially certified for participation in the Program during the immediately preceding fiscal
year. The Administrator shall also indicate the dollar distribution of net worths, at $50,000 increments, of all such individuals found to be socially and economically disadvantaged. For
the first report required pursuant to this paragraph the Administrator shall also provide the data specified in the preceding sentence for all eligible individuals in the Program as
of the effective date of this paragraph.
(ii) A description and estimate of the benefits and costs that
have accrued to the economy and the Government in the immediately preceding fiscal year due to the operations of those
business concerns that were performing contracts awarded
pursuant to section 8(a).
(iii) A compilation and evaluation of those business concerns
that have exited the Program during the immediately preceding three fiscal years. Such compilation and evaluation
shall detail the number of concerns actively engaged in business operations, those that have ceased or substantially curtailed such operations, including the reasons for such actions,
and those concerns that have been acquired by other firms or

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organizations owned and controlled by other than socially and
economically disadvantaged individuals. For those businesses
that have continued operations after they exited from the Program, the Administrator shall also separately detail the benefits and costs that have accrued to the economy during the immediately preceding fiscal year due to the operations of such
concerns.
(iv) A listing of all participants in the Program during the
preceding fiscal year identifying, by State and by Region, for
each firm: the name of the concern, the race or ethnicity, and
gender of the disadvantaged owners, the dollar value of all contracts received in the preceding year, the dollar amount of advance payments received by each concern pursuant to contracts
awarded under section 8(a), and a description including (if appropriate) an estimate of the dollar value of all benefits received pursuant to paragraphs (13) and (14) and section
7(a)(20) during such year.
(v) The total dollar value of contracts and options awarded
during the preceding fiscal year pursuant to section 8(a) and
such amount expressed as a percentage of total sales of (I) all
firms participating in the Program during such year; and (II)
of firms in each of the nine years of program participation.
(vi) A description of such additional resources or program authorities as may be required to provide the types of services
needed over the next two-year period to service the expected
portfolio of firms certified pursuant to section 8(a).
(vii) The total dollar value of contracts and options awarded
pursuant to section 8(a), at such dollar increments as the Administrator deems appropriate, for each four digit standard industrial classification code under which such contracts and options were classified.
(C) The first report required by subparagraph (B) shall pertain
to fiscal year 1990.
(k) In carrying out its functions under subsections 7(i), 7(j), and
8(a) of this Act, the Administration is authorized—
(1) to utilize, with their consent, the services and facilities of
Federal agencies without reimbursement, and, with the consent of any State or political subdivision of a State, accept and
utilize the services and facilities of such State or subdivision
without reimbursement;
(2) to accept, in the name of the Administration, and employ
or dispose of in furtherance of the purposes of this Act, any
money or property, real, personal, or mixed, tangible, or intangible, received by gift, device, bequest, or otherwise;
(3) to accept voluntary and uncompensated services, notwithstanding the provisions of section 3679(b) of the Revised Statutes (31 U.S.C. 655(b)); and
(4) to employ experts and consultants or organizations thereof as authorized by section 15 of the Administrative Expenses
Act of 1946 (5 U.S.C. 55a), except that no individual may be
employed under the authority of this subsection for more than
one hundred days in any fiscal year; to compensate individuals
so employed at rates not in excess of the daily equivalent of the
highest rate payable under section 5332 of title 5, United
States Code, including traveltime; and to allow them, while

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away from their homes or regular places of business, travel expenses (including per diem in lieu of subsistence) a authorized
by section 5 of such Act (5 U.S.C. 73b–2) for persons in the
Government service employed intermittently, while so employed: Provided, however, That contracts for such employment
may be renewed annually.
(l) SMALL BUSINESS INTERMEDIARY LENDING PILOT PROGRAM.—
(1) DEFINITIONS.—In this subsection—
(A) the term ‘‘eligible intermediary’’—
(i) means a private, nonprofit entity that—
(I) seeks or has been awarded a loan from the
Administrator to make loans to small business
concerns under this subsection; and
(II) has not less than 1 year of experience making loans to startup, newly established, or growing
small business concerns; and
(ii) includes—
(I) a private, nonprofit community development
corporation;
(II) a consortium of private, nonprofit organizations or nonprofit community development corporations; and
(III) an agency of or nonprofit entity established
by a Native American Tribal Government; and
(B) the term ‘‘Program’’ means the small business intermediary lending pilot program established under paragraph (2).
(2) ESTABLISHMENT.—There is established a 3-year small
business intermediary lending pilot program, under which the
Administrator may make direct loans to eligible intermediaries, for the purpose of making loans to startup, newly
established, and growing small business concerns.
(3) PURPOSES.—The purposes of the Program are—
(A) to assist small business concerns in areas suffering
from a lack of credit due to poor economic conditions or
changes in the financial market; and
(B) to establish a loan program under which the Administrator may provide loans to eligible intermediaries to enable the eligible intermediaries to provide loans to startup,
newly established, and growing small business concerns
for working capital, real estate, or the acquisition of materials, supplies, or equipment.
(4) LOANS TO ELIGIBLE INTERMEDIARIES.—
(A) APPLICATION.—Each eligible intermediary desiring a
loan under this subsection shall submit an application to
the Administrator that describes—
(i) the type of small business concerns to be assisted;
(ii) the size and range of loans to be made;
(iii) the interest rate and terms of loans to be made;
(iv) the geographic area to be served and the economic, poverty, and unemployment characteristics of
the area;
(v) the status of small business concerns in the area
to be served and an analysis of the availability of credit; and

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(vi) the qualifications of the applicant to carry out
this subsection.
(B) LOAN LIMITS.—No loan may be made to an eligible
intermediary under this subsection if the total amount outstanding and committed to the eligible intermediary by the
Administrator would, as a result of such loan, exceed
$1,000,000 during the participation of the eligible intermediary in the Program.
(C) LOAN DURATION.—Loans made by the Administrator
under this subsection shall be for a term of 20 years.
(D) APPLICABLE INTEREST RATES.—Loans made by the
Administrator to an eligible intermediary under the Program shall bear an annual interest rate equal to 1.00 percent.
(E) FEES; COLLATERAL.—The Administrator may not
charge any fees or require collateral with respect to any
loan made to an eligible intermediary under this subsection.
(F) DELAYED PAYMENTS.—The Administrator shall not
require the repayment of principal or interest on a loan
made to an eligible intermediary under the Program during the 2-year period beginning on the date of the initial
disbursement of funds under that loan.
(G) MAXIMUM PARTICIPANTS AND AMOUNTS.—During each
of fiscal years 2011, 2012, and 2013, the Administrator
may make loans under the Program—
(i) to not more than 20 eligible intermediaries; and
(ii) in a total amount of not more than $20,000,000.
(5) LOANS TO SMALL BUSINESS CONCERNS.—
(A) IN GENERAL.—The Administrator, through an eligible
intermediary, shall make loans to startup, newly established, and growing small business concerns for working
capital, real estate, and the acquisition of materials, supplies, furniture, fixtures, and equipment.
(B) MAXIMUM LOAN.—An eligible intermediary may not
make a loan under this subsection of more than $200,000
to any 1 small business concern.
(C) APPLICABLE INTEREST RATES.—A loan made by an eligible intermediary to a small business concern under this
subsection, may have a fixed or a variable interest rate,
and shall bear an interest rate specified by the eligible
intermediary in the application of the eligible intermediary
for a loan under this subsection.
(D) REVIEW RESTRICTIONS.—The Administrator may not
review individual loans made by an eligible intermediary
to a small business concern before approval of the loan by
the eligible intermediary.
(6) TERMINATION.—The authority of the Administrator to
make loans under the Program shall terminate 3 years after
the date of enactment of the Small Business Job Creation and
Access to Capital Act of 2010.
(m) MICROLOAN PROGRAM.—
(1)(A) PURPOSES.—The purposes of the Microloan Program
are—

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(i) to assist women, low-income, veteran (within the
meaning of such term under section 3(q)), and minority entrepreneurs and business owners and other individuals
possessing the capability to operate successful business
concerns;
(ii) to assist small business concerns in those areas suffering from a lack of credit due to economic downturns;
(iii) to establish a microloan program to be administered
by the Small Business Administration—
(I) to make loans to eligible intermediaries to enable
such intermediaries to provide small-scale loans, particularly loans in amounts averaging not more than
$10,000, to startup, newly established, or growing
small business concerns for working capital or the acquisition of materials, supplies, or equipment;
(II) to make grants to eligible intermediaries that,
together with non-Federal matching funds, will enable
such intermediaries to provide intensive marketing,
management, and technical assistance to microloan
borrowers;
(III) to make grants to eligible nonprofit entities
that, together with non-Federal matching funds, will
enable such entities to provide intensive marketing,
management, and technical assistance to assist low-income entrepreneurs and other low-income individuals
obtain private sector financing for their businesses,
with or without loan guarantees; and
(IV) to report to the Committees on Small Business
of the Senate and the House of Representatives on the
effectiveness of the microloan program and the advisability and feasibility of implementing such a program
nationwide; and
(iv) to establish a welfare-to-work microloan initiative,
which shall be administered by the Administration, in
order to test the feasibility of supplementing the technical
assistance grants provided under clauses (ii) and (iii) of
subparagraph (B) to individuals who are receiving assistance under the State program funded under part A of title
IV of the Social Security Act (42 U.S.C. 601 et seq.), or
under any comparable State funded means tested program
of assistance for low-income individuals, in order to adequately assist those individuals in—
(I) establishing small businesses; and
(II) eliminating their dependence on that assistance.
(B) ESTABLISHMENT.—There is established a microloan program, under which the Administration may—
(i) make direct loans to eligible intermediaries, as provided under paragraph (3), for the purpose of making
short-term, fixed interest rate microloans to startup, newly
established, and growing small business concerns under
paragraph (6);
(ii) in conjunction with such loans and subject to the requirements of paragraph (4), make grants to such intermediaries for the purpose of providing intensive marketing, management, and technical assistance to small

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business concerns that are borrowers under this subsection; and
(iii) subject to the requirements of paragraph (5), make
grants to nonprofit entities for the purpose of providing
marketing, management, and technical assistance to lowincome individuals seeking to start or enlarge their own
businesses, if such assistance includes working with the
grant recipient to secure loans in amounts not to exceed
$50,000 from private sector lending institutions, with or
without a loan guarantee from the nonprofit entity.
(2) ELIGIBILITY FOR PARTICIPATION.—An intermediary shall
be eligible to receive loans and grants under subparagraphs
(B)(i) and (B)(ii) of paragraph (1) if it—
(A) meets the definition in paragraph (10); and
(B) has at least 1 year of experience making microloans
to startup, newly established, or growing small business
concerns and providing, as an integral part of its microloan
program, intensive marketing, management, and technical
assistance to its borrowers.
(3) LOANS TO INTERMEDIARIES.—
(A) INTERMEDIARY APPLICATIONS.—(i) IN GENERAL.—As
part of its application for a loan, each intermediary shall
submit a description to the Administration of—
(I) the type of businesses to be assisted;
(II) the size and range of loans to be made;
(III) the geographic area to be served and its economic, proverty, and unemployment characteristics;
(IV) the status of small business concerns in the
area to be served and an analysis of their credit and
technical assistance needs;
(V) any marketing, management, and technical assistance to be provided in connection with a loan made
under this subsection;
(VI) the local economic credit markets, including the
costs associated with obtaining credit locally;
(VII) the qualifications of the applicant to carry out
the purpose of this subsection; and
(VIII) any plan to involve other technical assistance
providers (such as counselors from the Service Corps
of Retired Executives or small business development
centers) or private sector lenders in assisting selected
business concerns.
(ii) SELECTION OF INTERMEDIARIES.—In selecting intermediaries to participate in the program established under
this subsection, the Administration shall give priority to
those applicants that provide loans in amounts averaging
not more than $10,000.
(B) INTERMEDIARY CONTRIBUTION.—As a condition of any
loan made to an intermediary under subparagraph (B)(i) of
paragraph (1), the Administrator shall require the intermediary to contribute not less than 15 percent of the loan
amount in cash from non-Federal sources.
(C) LOAN LIMITS.—Notwithstanding subsection (a)(3), no
loan shall be made under this subsection if the total
amount outstanding and committed to one intermediary

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(excluding outstanding grants) from the business loan and
investment fund established by this Act would, as a result
of such loan, exceed $750,000 in the first year of such
intermediary’s participation in the program, $7,000,000 (in
the aggregate) in the remaining years of the
intermediary’s participation in the program, and
$3,000,000 in any of those remaining years.
(D)(i) IN GENERAL.—The Administrator shall, by regulation, require each intermediary to establish a loan loss reserve fund, and to maintain such reserve fund until all obligations owed to the Administration under this subsection
are repaid.
(ii) LEVEL OF LOAN LOSS RESERVE FUND.—
(I) IN GENERAL.—Subject to subclause (III), the Administrator shall require the loan loss reserve fund of
an intermediary to be maintained at a level equal to
15 percent of the outstanding balance of the notes receivable owed to the intermediary.
(II) REVIEW OF LOAN LOSS RESERVE.—After the initial 5 years of an intermediary’s participation in the
program authorized by this subsection, the Administrator shall, at the request of the intermediary, conduct a review of the annual loss rate of the intermediary. Any intermediary in operation under this
subsection prior to October 1, 1994, that requests a reduction in its loan loss reserve shall be reviewed based
on the most recent 5-year period preceding the request.
(III) REDUCTION OF LOAN LOSS RESERVE.—Subject to
the requirements of clause IV, the Administrator may
reduce the annual loan loss reserve requirement of an
intermediary to reflect the actual average loan loss
rate for the intermediary during the preceding 5-year
period, except that in no case shall the loan loss reserve be reduced to less than 10 percent of the outstanding balance of the notes receivable owed to the
intermediary.
(IV) REQUIREMENTS.—The Administrator may reduce the annual loan loss reserve requirement of an
intermediary only if the intermediary demonstrates to
the satisfaction of the Administrator that—
(aa) the average annual loss rate for the intermediary during the preceding 5-year period is less
than 15 percent; and
(bb) that no other factors exist that may impair
the ability of the intermediary to repay all obligations owed to the Administration under this subsection.
(E) UNAVAILABILITY OF COMPARABLE CREDIT.—An intermediary may make a loan under this subsection of more
than $20,000 to a small business concern only if such
small business concern demonstrates that it is unable to
obtain credit elsewhere at comparable interest rates and
that it has good prospects for success. In no case shall an
intermediary make a loan under this subsection of more

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than $50,000, or have outstanding or committed to any 1
borrower more than $50,000.
(F) LOAN DURATION; INTEREST RATES.—
(i) LOAN DURATION.—Loans made by the Administration under this subsection shall be for a term of 10
years.
(ii) APPLICABLE INTEREST RATES.—Except as provided in clause (iii), loans made by the Administration
under this subsection to an intermediary shall bear an
interest rate equal to 1.25 percentage points below the
rate determined by the Secretary of the Treasury for
obligations of the United States with a period of maturity of 5 years, adjusted to the nearest one-eighth of
1 percent.
(iii) RATES APPLICABLE TO CERTAIN SMALL LOANS.—
Loans made by the Administration to an intermediary
that makes loans to small business concerns and entrepreneurs averaging not more than $7,500, shall
bear an interest rate that is 2 percentage points below
the rate determined by the Secretary of the Treasury
for obligations of the United States with a period of
maturity of 5 years, adjusted to the nearest one-eighth
of 1 percent.
(iv) RATES APPLICABLE TO MULTIPLE SITES OR OFFICES.—The interest rate prescribed in clause (ii) or
(iii) shall apply to each separate loan-making site or
office of 1 intermediary only if such site or office meets
the requirements of that clause.
(v) RATE BASIS.—The applicable rate of interest
under this paragraph shall—
(I) be applied retroactively for the first year of
an intermediary’s participation in the program,
based upon the actual lending practices of the
intermediary as determined by the Administration
prior to the end of such year; and
(II) be based in the second and subsequent
years of an intermediary’s participation in the
program, upon the actual lending practices of the
intermediary
during
the
term
of
the
intermediary’s participation in the program.
(vii) COVERED INTERMEDIARIES.—The interest rates
prescribed in this subparagraph shall apply to all
loans made to intermediaries under this subsection on
or after October 28, 1991.
(G) DELAYED PAYMENTS.—The Administration shall not
require repayment of interest or principal of a loan made
to an intermediary under this subsection during the first
year of the loan.
(H) FEES; COLLATERAL.—Except as provided in subparagraphs (B) and (D), the Administration shall not charge
any fees or require collateral other than an assignment of
the notes receivable of the microloans with respect to any
loan made to an intermediary under this subsection.
(4) MARKETING, MANAGEMENT AND TECHNICAL ASSISTANCE
GRANTS TO INTERMEDIARIES.—Grants made in accordance with

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subparagraph (B)(ii) of paragraph (1) shall be subject to the
following requirements:
(A) GRANT AMOUNTS.—Except as otherwise provided in
subparagraphs (C) and (G) and subject to subparagraph
(B), each intermediary that receives a loan under subparagraph (B)(i) of paragraph (1) shall be eligible to receive a
grant to provide marketing, management, and technical
assistance to small business concerns that are borrowers
under this subsection. Except as provided in subparagraphs (C) and (G), each intermediary meeting the requirements of subparagraph (B) may receive a grant of not
more than 25 percent of the total outstanding balance of
loans made to it under this subsection.
(B) CONTRIBUTION.—As a condition of a grant made
under subparagraph (A), the Administrator shall require
the intermediary to contribute an amount equal to 25 percent of the amount of the grant, obtained solely from nonFederal sources. In addition to cash or other direct funding, the contribution may include indirect costs or in-kind
contributions paid for under non-Federal programs.
(C) ADDITIONAL TECHNICAL ASSISTANCE GRANTS FOR MAKING CERTAIN LOANS.—
(i) IN GENERAL.—In addition to grants made under
subparagraph (A) or (G), each intermediary shall be
eligible to receive a grant equal to 5 percent of the
total outstanding balance of loans made to the intermediary under this subsection if—
(I) the intermediary provides not less than 25
percent of its loans to small business concerns located in or owned by 1 or more residents of an
economically distressed area; or
(II) the intermediary has a portfolio of loans
made under this subsection—
(aa) that averages not more than $10,000
during the period of the intermediary’s participation in the program; or
(bb) of which not less than 25 percent is
serving rural areas during the period of the
intermediary’s participation in the program.
(ii) PURPOSES.—A grant awarded under clause (i)
may be used to provide marketing, management, and
technical assistance to small business concerns that
are borrowers under this subsection.
(iii) CONTRIBUTION EXCEPTION.—The contribution requirements in subparagraph (B) do not apply to grants
made under this subparagraph.
(D) ELIGIBILITY FOR MULTIPLE SITES OR OFFICES.—The
eligibility for a grant described in subparagraph (A), or (C)
shall be determined separately for each loan-making site
or office of 1 intermediary.
(E) ASSISTANCE TO CERTAIN SMALL BUSINESS CONCERNS.—
(i) IN GENERAL.—Each intermediary may expend an
amount not to exceed 50 percent of the grant funds received under paragraph (1)(B)(ii) to provide informa-

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tion and technical assistance to small business concerns that are prospective borrowers under this subsection.
(ii) TECHNICAL ASSISTANCE.—An intermediary may
expend not more than 50 percent of the funds received
under paragraph (1)(B)(ii) to enter into third party
contracts for the provision of technical assistance.
(F) SUPPLEMENTAL GRANT.—
(i) IN GENERAL.—The Administration may accept
any funds transferred to the Administration from
other departments or agencies of the Federal Government to make grants in accordance with this subparagraph and section 202(b) of the Small Business Reauthorization Act of 1997 to participating intermediaries
and technical assistance providers under paragraph
(5), for use in accordance with clause (iii) to provide
additional technical assistance and related services to
recipients of assistance under a State program described in paragraph (1)(A)(iv) at the time they initially apply for assistance under this subparagraph.
(ii) ELIGIBLE RECIPIENTS; GRANT AMOUNTS.—In making grants under this subparagraph, the Administration may select, from among participating intermediaries and technical assistance providers described
in clause (i), not more than 20 grantees in fiscal year
1998, not more than 25 grantees in fiscal year 1999,
and not more than 30 grantees in fiscal year 2000,
each of whom may receive a grant under this subparagraph in an amount not to exceed $200,000 per year.
(iii) USE OF GRANT AMOUNTS.—Grants under this
subparagraph—
(I) are in addition to other grants provided
under this subsection and shall not require the
contribution of matching amounts as a condition
of eligibility; and
(II) may be used by a grantee—
(aa) to pay or reimburse a portion of child
care and transportation costs of recipients of
assistance described in clause (i), to the extent such costs are not otherwise paid by
State block grants under the Child Care Development Block Grant Act of 1990 (42 U.S.C.
9858 et seq.) or under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.);
and
(bb) for marketing, management, and technical assistance to recipients of assistance described in clause (i).
(iv) MEMORANDUM OF UNDERSTANDING.—Prior to accepting any transfer of funds under clause (i) from a
department or agency of the Federal Government, the
Administration shall enter into a Memorandum of Understanding with the department or agency, which
shall—

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(I) specify the terms and conditions of the
grants under this subparagraph; and
(II) provide for appropriate monitoring of expenditures by each grantee under this subparagraph and each recipient of assistance described
in clause (i) who receives assistance from a grantee under this subparagraph, in order to ensure
compliance with this subparagraph by those
grantees and recipients of assistance.
(G) GRANT AMOUNTS BASED ON APPROPRIATIONS.—In any
fiscal year in which the amount appropriated to make
grants under subparagraph (A) is sufficient to provide to
each intermediary that receives a loan under paragraph
(1)(B)(i) a grant of not less than 25 percent of the total outstanding balance of loans made to the intermediary under
this subsection, the Administration shall make a grant
under subparagraph (A) to each intermediary of not less
than 25 percent and not more than 30 percent of that total
outstanding balance for the intermediary.
(5) PRIVATE SECTOR BORROWING TECHNICAL ASSISTANCE
GRANTS.—Grants made in accordance with subparagraph
(B)(iii) of paragraph (1) shall be subject to the following requirements:
(A) GRANT AMOUNTS.—Subject to the requirements of
subparagraph (B), the Administration may make not more
than 55 grants annually, each in amounts not to exceed
$200,000 for the purposes specified in subparagraph
(B)(iii) of paragraph (1).
(B) CONTRIBUTION.—As a condition of any grant made
under subparagraph (A), the Administration shall require
the grant recipient to contribute an amount equal to 20
percent of the amount of the grant, obtained solely from
non-Federal sources. In addition to cash or other direct
funding, the contribution may include indirect costs or inkind contributions paid for under non-Federal programs.
(6) LOANS TO SMALL BUSINESS CONCERNS FROM ELIGIBLE
INTERMEDIARIES.—
(A) IN GENERAL.—An eligible intermediary shall make
short-term, fixed rate loans to startup, newly established,
and growing small business concerns from the funds made
available to it under subparagraph (B)(i) of paragraph (1)
for working capital and the acquisition of materials, supplies, furniture, fixtures, and equipment.
(B) PORTFOLIO REQUIREMENT.—To the extent practicable,
each intermediary that operates a microloan program
under this subsection shall maintain a microloan portfolio
with an average loan size of not more than $15,000.
(C) INTEREST LIMIT.—Notwithstanding any provision of
the laws of any State or the constitution of any State pertaining to the rate or amount of interest that may be
charged, taken, received, or reserved on a loan, the maximum rate of interest to be charged on a microloan funded
under this subsection shall not exceed the rate of interest
applicable to a loan made to an intermediary by the Administration—

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(i) in the case of a loan of more than $7,500 made
by the intermediary to a small business concern or entrepreneur by more than 7.75 percentage points; and
(ii) in the case of a loan of not more than $7,500
made by the intermediary to a small business concern
or entrepreneur by more than 8.5 percentage points.
(D) REVIEW RESTRICTION.—The Administration shall not
review individual microloans made by intermediaries prior
to approval.
(E) ESTABLISHMENT OF CHILD CARE OR TRANSPORTATION
BUSINESSES.—In addition to other eligible small businesses
concerns, borrowers under any program under this subsection may include individuals who will use the loan proceeds to establish for-profit or nonprofit child care establishments or businesses providing for-profit transportation
services.
(7) PROGRAM FUNDING FOR MICROLOANS.—
(A) NUMBER OF PARTICIPANTS.—Under the program authorized by this subsection, the Administration may fund,
on a competitive basis, not more than 300 intermediaries.
(B) ALLOCATION.—
(i) MINIMUM ALLOCATION.—Subject to the availability of appropriations, of the total amount of new
loan funds made available for award under this subsection in each fiscal year, the Administration shall
make available for award in each State (including the
District of Columbia, the Commonwealth of Puerto
Rico, the United States Virgin Islands, Guam, and
American Samoa) an amount equal to the sum of—
(I) the lesser of—
(aa) $800,000; or
(bb) 1⁄55 of the total amount of new loan
funds made available for award under this
subsection for that fiscal year; and
(II) any additional amount, as determined by
the Administration.
(ii) REDISTRIBUTION.—If, at the beginning of the
third quarter of a fiscal year, the Administration determines that any portion of the amount made available to carry out this subsection is unlikely to be made
available under clause (i) during that fiscal year, the
Administration may make that portion available for
award in any one or more States (including the District of Columbia, the Commonwealth of Puerto Rico,
the United States Virgin Islands, Guam, and American Samoa) without regard to clause (i).
(8) EQUITABLE DISTRIBUTION OF INTERMEDIARIES.—In approving microloan program applicants and providing funding to
intermediaries under this subsection, the Administration shall
select and provide funding to such intermediaries as will ensure appropriate availability of loans for small businesses in
all industries located throughout each State, particularly those
located in urban and in rural areas.
(9) GRANTS FOR MANAGEMENT, MARKETING, TECHNICAL ASSISTANCE, AND RELATED SERVICES.—

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(A) IN GENERAL.—The Administration may procure technical assistance for intermediaries participating in the
Microloan Program to ensure that such intermediaries
have the knowledge, skills, and understanding of microlending practices necessary to operate successful microloan
programs.
(B) ASSISTANCE AMOUNT.—The Administration shall
transfer 7 percent of its annual appropriation for loans and
loan guarantees under this subsection to the Administration’s Salaries and Expense Account for the specific purpose of providing 1 or more technical assistance grants to
experienced microlending organizations and national and
regional nonprofit organizations that have demonstrated
experience in providing training support for microenterprise development and financing. to achieve the purpose
set forth in subparagraph (A).
(C) WELFARE-TO-WORK MICROLOAN INITIATIVE.—Of
amounts made available to carry out the welfare-to-work
microloan initiative under paragraph (1)(A)(iv) in any fiscal year, the Administration may use not more than 5 percent to provide technical assistance, either directly or
through contractors, to welfare-to-work microloan initiative grantees, to ensure that, as grantees, they have the
knowledge, skills, and understanding of microlending and
welfare-to-work transition, and other related issues, to operate a successful welfare-to-work microloan initiative.
(10) REPORT TO CONGRESS.—On November 1, 1995, the Administration shall submit to the Committees on Small Business of the Senate and the House of Representatives a report,
including the Administration’s evaluation of the effectiveness
of the first 31⁄2 years of the microloan program and the following:
(A) the numbers and locations of the intermediaries
funded to conduct microloan programs;
(B) the amounts of each loan and each grant to intermediaries;
(C) a description of the matching contributions of each
intermediary;
(D) the numbers and amounts of microloans made by the
intermediaries to small business concern borrowers;
(E) the repayment history of each intermediary;
(F) a description of the loan portfolio of each intermediary including the extent to which it provides
microloans to small business concerns in rural areas; and
(G) any recommendations for legislative changes that
would improve program operations.
(11) DEFINITIONS.—For purposes of this subsection—
(A) the term ‘‘intermediary’’ means—
(i) a private, nonprofit entity;
(ii) a private, nonprofit community development corporation;
(iii) a consortium of private, nonprofit organizations
or nonprofit community development corporations;
(iv) a quasi-governmental economic development entity (such as a planning and development district),

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other than a State, county, municipal government, or
any agency thereof, if—
(I) no application is received from an eligible
nonprofit organization; or
(II) the Administration determines that the
needs of a region or geographic area are not adequately served by an existing, eligible nonprofit
organization that has submitted an application; or
(v) an agency of or nonprofit entity established by a
Native American Tribal Government,
that seeks to borrow or has borrowed funds from the Administration to make microloans to small business concerns under this subsection;
(B) the term ‘‘microloan’’ means a short-term, fixed rate
loan of not more than $50,000, made by an intermediary
to a startup, newly established, or growing small business
concern;
(C) the term ‘‘rural area’’ means any political subdivision
or unincorporated area—
(i) in a nonmetropolitan county (as defined by the
Secretary of Agriculture) or its equivalent thereof; or
(ii) in a metropolitan county or its equivalent that
has a resident population of less than 20,000 if the
Small Business Administration has determined such
political subdivision or area to be rural; and
(D) the term ‘‘economically distressed area’’, as used in
paragraph (4), means a county or equivalent division of
local government of a State in which the small business
concern is located, in which, according to the most recent
data available from the Bureau of the Census, Department
of Commerce, not less than 40 percent of residents have an
annual income that is at or below the poverty level.
(12) DEFERRED PARTICIPATION LOAN PILOT.—In lieu of making direct loans to intermediaries as authorized in paragraph
(1)(B), during fiscal years 1998 through 2000, the Administration may, on a pilot program basis, participate on a deferred
basis of not less than 90 percent and not more than 100 percent on loans made to intermediaries by a for-profit or nonprofit entity or by alliances of such entities, subject to the following conditions:
(A) NUMBER OF LOANS.—In carrying out this paragraph,
the Administration shall not participate in providing financing on a deferred basis to more than 10 intermediaries in urban areas or more than 10 intermediaries
in rural areas.
(B) TERM OF LOANS.—The term of each loan shall be 10
years. During the first year of the loan, the intermediary
shall not be required to repay any interest or principal.
During the second through fifth years of the loan, the
intermediary shall be required to pay interest only. During
the sixth through tenth years of the loan, the intermediary
shall be required to make interest payments and fully amortize the principal.
(C) INTEREST RATE.—The interest rate on each loan shall
be the rate specified by paragraph (3)(F) for direct loans.

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(13) EVALUATION OF WELFARE-TO-WORK MICROLOAN INITIATIVE.—On January 31, 1999, and annually thereafter, the Administration shall submit to the Committees on Small Business of the House of Representatives and the Senate a report
on any monies distributed pursuant to paragraph (4)(F).
(n) REPAYMENT DEFERRED FOR ACTIVE SERVICE RESERVISTS.—
(1) DEFINITIONS.—In this subsection:
(A) ACTIVE SERVICE.—The term ‘‘active service’’ has the
meaning given that term in section 101(d)(3) of title 10,
United States Code.
(B) ELIGIBLE RESERVIST.—The term ‘‘eligible reservist’’
means a member of a reserve component of the Armed
Forces ordered to perform active service for a period of
more than 30 consecutive days.
(C) ESSENTIAL EMPLOYEE.—The term ‘‘essential employee’’ means an individual who is employed by a small
business concern and whose managerial or technical expertise is critical to the successful day-to-day operations of
that small business concern.
(D) QUALIFIED BORROWER.—The term ‘‘qualified borrower’’ means—
(i) an individual who is an eligible reservist and who
received a direct loan under subsection (a) or (b) before
being ordered to active service; or
(ii) a small business concern that received a direct
loan under subsection (a) or (b) before an eligible reservist, who is an essential employee, was ordered to
active service.
(2) DEFERRAL OF DIRECT LOANS.—
(A) IN GENERAL.—The Administration shall, upon written request, defer repayment of principal and interest due
on a direct loan made under subsection (a) or (b), if such
loan was incurred by a qualified borrower.
(B) PERIOD OF DEFERRAL.—The period of deferral for repayment under this paragraph shall begin on the date on
which the eligible reservist is ordered to active service and
shall terminate on the date that is 180 days after the date
such eligible reservist is discharged or released from active
service.
(C) INTEREST RATE REDUCTION DURING DEFERRAL.—Notwithstanding any other provision of law, during the period
of deferral described in subparagraph (B), the Administration may, in its discretion, reduce the interest rate on any
loan qualifying for a deferral under this paragraph.
(3) DEFERRAL OF LOAN GUARANTEES AND OTHER
FINANCINGS.—The Administration shall—
(A) encourage intermediaries participating in the program under subsection (m) to defer repayment of a loan
made with proceeds made available under that subsection,
if such loan was incurred by a small business concern that
is eligible to apply for assistance under subsection (b)(3);
and
(B) not later than 30 days after the date of the enactment of this subsection, establish guidelines to—

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(i) encourage lenders and other intermediaries to
defer repayment of, or provide other relief relating to,
loan guarantees under subsection (a) and financings
under section 504 of the Small Business Investment
Act of 1958 that were incurred by small business concerns that are eligible to apply for assistance under
subsection (b)(3), and loan guarantees provided under
subsection (m) if the intermediary provides relief to a
small business concern under this paragraph; and
(ii) implement a program to provide for the deferral
of repayment or other relief to any intermediary providing relief to a small business borrower under this
paragraph.

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114


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115


116
XIX. MINORITY VIEWS
The U.S. Small Business Administration (SBA)’s disaster loan
program provides low-interest direct loans to help businesses, nonprofits, homeowners, and renters recover from a declared disaster.1
The disaster loan program has four major lending programs: (1)
real property disaster for households; (2) personal property for
households; (3) physical disaster business loans for businesses of all
sizes, and (4) economic injury disaster loans (EIDLs) for small businesses and nonprofits. Additionally, disaster loans can be increased
for mitigation purposes and can be used to help small businesses
with operating expenses for an employee on active-duty leave.
From July to October 2024, several major hurricanes made landfall in the United States, leading up to the SBA’s announcement
on October 15, 2024, that funds in its disaster loans program account had been exhausted. The SBA could not approve and disburse new loans until the Congress appropriated additional funds
on December 21, 2024, via the American Relief Act of 2025.
The SBA has existing reporting requirements on the disaster
program that they failed at the time to submit, including a monthly estimate on the number of days of funding remining in the account. The authorizing and appropriating committees were notified
of the impending funding shortage, but not with enough time to act
before it ran out. A lack of communication and a series of
compounding disasters depleted the disaster account faster than
anticipated when the House was not in session throughout October,
leading to a prolonged lapse of funding.
NYDIA M. VELÁZQUEZ,
Ranking Member.

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Æ

1 See U.S. SMALL BUS. ADMIN., OFF. OF DISASTER ASSISTANCE, https://www.sba.gov/fundingprograms/disaster-assistance (last visited Aug. 10, 2022).

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