Exhibit A (CARES Act) — DV Diamond Club (Dkt. 12-2, E.D. Mich.)
Summary
Exhibit A in DV Diamond Club of Flint, LLC v. U.S. Small Business Administration (E.D. Mich.), Case No. 4:20-cv-10899, filed April 17, 2020 as ECF No. 12-2. The 12-page exhibit reproduces pages of H. R. 748, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), from its table of contents through Title I. Section 1102 adds the Paycheck Protection Program to the Small Business Act, with a covered period from February 15, 2020 to June 30, 2020, eligibility for businesses with not more than 500 employees and a maximum loan of $10,000,000. The exhibit ends with Section 1107, which appropriates $349,000,000,000 for guaranteed loans under paragraph (36) of section 7(a) of the Small Business Act.
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“Exhibit A (CARES Act) — DV Diamond Club (Dkt. 12-2, E.D. Mich.).”
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Case 4:20-cv-10899-MFL-DRG ECF No. 12-2 filed 04/17/20 PageID.508 Page 1 of 12
H. R. 748
One Hundred Sixteenth Congress
of the
United States of America
AT T H E S E C O N D S E S S I O N
Begun and held at the City of Washington on Friday,
the third day of January, two thousand and twenty
An Act
To amend the Internal Revenue Code of 1986 to repeal the excise tax on high
cost employer-sponsored health coverage.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Coronavirus Aid, Relief, and
Economic Security Act’’ or the ‘‘CARES Act’’.
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. References.
DIVISION A—KEEPING WORKERS PAID AND EMPLOYED, HEALTH CARE
SYSTEM ENHANCEMENTS, AND ECONOMIC STABILIZATION
TITLE I—KEEPING AMERICAN WORKERS PAID AND EMPLOYED ACT
Sec. 1101. Definitions.
Sec. 1102. Paycheck protection program.
Sec. 1103. Entrepreneurial development.
Sec. 1104. State trade expansion program.
Sec. 1105. Waiver of matching funds requirement under the women’s business cen-
ter program.
Sec. 1106. Loan forgiveness.
Sec. 1107. Direct appropriations.
Sec. 1108. Minority business development agency.
Sec. 1109. United States Treasury Program Management Authority.
Sec. 1110. Emergency EIDL grants.
Sec. 1111. Resources and services in languages other than English.
Sec. 1112. Subsidy for certain loan payments.
Sec. 1113. Bankruptcy.
Sec. 1114. Emergency rulemaking authority.
TITLE II—ASSISTANCE FOR AMERICAN WORKERS, FAMILIES, AND
BUSINESSES
Subtitle A—Unemployment Insurance Provisions
Sec. 2101. Short title.
Sec. 2102. Pandemic Unemployment Assistance.
Sec. 2103. Emergency unemployment relief for governmental entities and nonprofit
organizations.
Sec. 2104. Emergency increase in unemployment compensation benefits.
Sec. 2105. Temporary full Federal funding of the first week of compensable regular
unemployment for States with no waiting week.
Sec. 2106. Emergency State staffing flexibility.
Sec. 2107. Pandemic emergency unemployment compensation.
Sec. 2108. Temporary financing of short-time compensation payments in States
with programs in law.
Sec. 2109. Temporary financing of short-time compensation agreements.
EXHIBIT A
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H. R. 748—6
DIVISION A—KEEPING WORKERS PAID
AND EMPLOYED, HEALTH CARE SYS-
TEM ENHANCEMENTS, AND ECO-
NOMIC STABILIZATION
TITLE I—KEEPING AMERICAN
WORKERS PAID AND EMPLOYED ACT
SEC. 1101. DEFINITIONS.
In this title—
(1) the terms ‘‘Administration’’ and ‘‘Administrator’’ mean
the Small Business Administration and the Administrator
thereof, respectively; and
(2) the term ‘‘small business concern’’ has the meaning
given the term in section 3 of the Small Business Act (15
U.S.C. 636).
SEC. 1102. PAYCHECK PROTECTION PROGRAM.
(a) IN GENERAL.—Section 7(a) of the Small Business Act (15
U.S.C. 636(a)) is amended—
(1) in paragraph (2)—
(A) in subparagraph (A), in the matter preceding clause
(i), by striking ‘‘and (E)’’ and inserting ‘‘(E), and (F)’’; and
(B) by adding at the end the following:
‘‘(F) PARTICIPATION IN THE PAYCHECK PROTECTION PRO-
GRAM.—In an agreement to participate in a loan on a
deferred basis under paragraph (36), the participation by
the Administration shall be 100 percent.’’; and
(2) by adding at the end the following:
‘‘(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);
‘‘(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, 2020;
‘‘(iv) the term ‘eligible recipient’ means an indi-
vidual 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;
EXHIBIT A
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H. R. 748—7
‘‘(viii) the term ‘payroll costs’—
‘‘(I) means—
‘‘(aa) the sum of payments of any com-
pensation with respect to employees that is
a—
‘‘(AA) salary, wage, commission, or
similar compensation;
‘‘(BB) payment of cash tip or equiva-
lent;
‘‘(CC) payment for vacation, parental,
family, medical, or sick leave;
‘‘(DD) allowance for dismissal or sepa-
ration;
‘‘(EE) payment required for the provi-
sions of group health care benefits,
including insurance premiums;
‘‘(FF) payment of any retirement ben-
efit; or
‘‘(GG) payment of State or local tax
assessed on the compensation of
employees; and
‘‘(bb) the sum of payments of any com-
pensation 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
in 1 year, as prorated for the covered period;
and
‘‘(II) shall not include—
‘‘(aa) the compensation of an individual
employee in excess of an annual salary of
$100,000, as prorated for the covered period;
‘‘(bb) taxes imposed or withheld under
chapters 21, 22, or 24 of the Internal Revenue
Code of 1986 during the covered 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); and
‘‘(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 tax-
ation under section 501(a) of such Code.
‘‘(B) PAYCHECK PROTECTION LOANS.—Except as other-
wise provided in this paragraph, the Administrator may
guarantee covered loans under the same terms, conditions,
and processes as a loan made under this subsection.
EXHIBIT A
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H. R. 748—8
‘‘(C) REGISTRATION OF LOANS.—Not later than 15 days
after the date on which a loan is made under this para-
graph, 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 con-
cern, nonprofit organization, veterans organization, or
Tribal business concern described in section 31(b)(2)(C)
shall be eligible to receive a covered loan if the business
concern, nonprofit organization, 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, veterans organization, or
Tribal business concern operates.
‘‘(ii) INCLUSION OF SOLE PROPRIETORS, INDE-
PENDENT CONTRACTORS, AND ELIGIBLE SELF-EMPLOYED
INDIVIDUALS.—
‘‘(I) IN GENERAL.—During the covered period,
individuals who operate under a sole proprietor-
ship or as an independent contractor and eligible
self-employed 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 is necessary to
establish such individual as eligible, including pay-
roll tax filings reported to the Internal Revenue
Service, Forms 1099–MISC, and income and
expenses from the sole proprietorship, as deter-
mined by the Administrator and the Secretary.
‘‘(iii) BUSINESS CONCERNS WITH MORE THAN 1 PHYS-
ICAL LOCATION.—During the covered period, any busi-
ness concern that employs not more than 500
employees per physical location of the business concern
and that is assigned a North American Industry Classi-
fication System code beginning with 72 at the time
of disbursal shall be eligible to receive a covered loan.
‘‘(iv) WAIVER OF AFFILIATION RULES.—During the
covered period, the provisions applicable to affiliations
under section 121.103 of title 13, Code of Federal Regu-
lations, 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;
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H. R. 748—9
‘‘(II) any business concern operating as a fran-
chise that is assigned a franchise identifier code
by the Administration; and
‘‘(III) any business concern that receives finan-
cial assistance from a company licensed under sec-
tion 301 of the Small Business Investment Act
of 1958 (15 U.S.C. 681).
‘‘(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), 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 veterans organization in the same manner as with
respect to a small business concern.
‘‘(E) MAXIMUM LOAN AMOUNT.—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 that, in the
case of an applicant that is seasonal employer,
as determined by the Administrator, the aver-
age total monthly payments for payroll shall
be for the 12-week period beginning February
15, 2019, or at the election of the eligible
recipient, March 1, 2019, and ending June
30, 2019; 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
EXHIBIT A
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H. R. 748—10
‘‘(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;
‘‘(IV) payments of interest on any mortgage
obligation (which shall not include any prepayment
of or payment of principal on a mortgage obliga-
tion);
‘‘(V) rent (including rent under a lease agree-
ment);
‘‘(VI) utilities; and
‘‘(VII) interest on any other debt obligations
that were incurred before the covered period.
‘‘(ii) DELEGATED AUTHORITY.—
‘‘(I) IN GENERAL.—For purposes of making cov-
ered 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 nec-
essary qualifications to process, close, disburse and
service loans made with the guarantee of the Adminis-
tration.
‘‘(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
EXHIBIT A
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H. R. 748—11
the extent that such shareholder, member, or partner
uses the covered loan proceeds for a purpose not
authorized under clause (i).
‘‘(G) BORROWER REQUIREMENTS.—
‘‘(i) CERTIFICATION.—An eligible recipient applying
for a covered loan shall make a good faith certifi-
cation—
‘‘(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 sub-
section 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.—During the covered period, 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.—
During the covered period, 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
covered loan that has a remaining balance after reduction
based on the loan forgiveness amount under section 1106
of the CARES Act—
‘‘(i) the remaining balance shall continue to be
guaranteed by the Administration under this sub-
section; and
‘‘(ii) the covered loan shall have a maximum matu-
rity 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.
EXHIBIT A
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H. R. 748—12
‘‘(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.—During the covered period, 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 for a period
of not less than 6 months, including payment of
principal, interest, and fees, and not more than
1 year.
‘‘(iii) SECONDARY MARKET.—During the covered
period, 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 for a period of not less than 6 months,
including payment of principal, interest, and fees, and
not more than 1 year.
‘‘(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 subpara-
graph.
‘‘(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 per-
cent.
‘‘(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–19-
related difficulties in a troubled debt restructuring on
or after March 13, 2020, shall not be required to comply
with the Financial Accounting Standards Board
EXHIBIT A
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H. R. 748—13
Accounting Standards Codification Subtopic 310–40
(‘Receivables – Troubled Debt Restructurings by Credi-
tors’) 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
at a rate, based on the balance of the financing out-
standing at the time of disbursement of the covered
loan, of—
‘‘(I) 5 percent for loans of not more than
$350,000;
‘‘(II) 3 percent for loans of more than $350,000
and less than $2,000,000; and
‘‘(III) 1 percent for loans 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.
‘‘(iii) TIMING.—A reimbursement described in
clause (i) shall be made not later than 5 days after
the disbursement of the covered loan.
‘‘(iv) SENSE OF THE SENATE.—It is the sense of
the Senate that the Administrator should issue guid-
ance to lenders and agents to ensure that the proc-
essing 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 dis-
advantaged 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.—Notwith-
standing any other provision of law, there shall be no
prepayment penalty for any payment made on a covered
loan.’’.
(b) COMMITMENTS FOR 7(A) LOANS.—During the period begin-
ning on February 15, 2020 and ending on June 30, 2020—
(1) the amount authorized for commitments for general
business loans authorized under section 7(a) of the Small Busi-
ness Act (15 U.S.C. 636(a)), including loans made under para-
graph (36) of such section, as added by subsection (a), shall
be $349,000,000,000; and
EXHIBIT A
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H. R. 748—14
(2) the amount authorized for commitments for such loans
under the heading ‘‘BUSINESS LOANS PROGRAM ACCOUNT’’ under
the heading ‘‘SMALL BUSINESS ADMINISTRATION’’ under title
V of the Consolidated Appropriations Act, 2020 (Public Law
116–93; 133 Stat. 2475) shall not apply.
(c) EXPRESS LOANS.—
(1) IN GENERAL.—Section 7(a)(31)(D) of the Small Business
Act (15 U.S.C. 636(a)(31)(D)) is amended by striking ‘‘$350,000’’
and inserting ‘‘$1,000,000’’.
(2) PROSPECTIVE REPEAL.—Effective on January 1, 2021,
section 7(a)(31)(D) of the Small Business Act (15 U.S.C.
636(a)(31)(D)) is amended by striking ‘‘$1,000,000’’ and
inserting ‘‘$350,000’’.
(d) EXCEPTION TO GUARANTEE FEE WAIVER FOR VETERANS.—
Section 7(a)(31)(G) of the Small Business Act (15 U.S.C.
636(a)(31)(G)) is amended—
(1) by striking clause (ii); and
(2) by redesignating clause (iii) as clause (ii).
(e) INTERIM RULE.—On and after the date of enactment of
this Act, the interim final rule published by the Administrator
entitled ‘‘Express Loan Programs: Affiliation Standards’’ (85 Fed.
Reg. 7622 (February 10, 2020)) is permanently rescinded and shall
have no force or effect.
SEC. 1103. ENTREPRENEURIAL DEVELOPMENT.
(a) DEFINITIONS.—In this section—
(1) the term ‘‘covered small business concern’’ means a
small business concern that has experienced, as a result of
COVID–19—
(A) supply chain disruptions, including changes in—
(i) quantity and lead time, including the number
of shipments of components and delays in shipments;
(ii) quality, including shortages in supply for
quality control reasons; and
(iii) technology, including a compromised payment
network;
(B) staffing challenges;
(C) a decrease in gross receipts or customers; or
(D) a closure;
(2) the term ‘‘resource partner’’ means—
(A) a small business development center; and
(B) a women’s business center;
(3) the term ‘‘small business development center’’ has the
meaning given the term in section 3 of the Small Business
Act (15 U.S.C. 632); and
(4) the term ‘‘women’s business center’’ means a women’s
business center described in section 29 of the Small Business
Act (15 U.S.C. 656).
(b) EDUCATION, TRAINING, AND ADVISING GRANTS.—
(1) IN GENERAL.—The Administration may provide financial
assistance in the form of grants to resource partners to provide
education, training, and advising to covered small business
concerns.
(2) USE OF FUNDS.—Grants under this subsection shall
be used for the education, training, and advising of covered
small business concerns and their employees on—
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H. R. 748—32
‘‘(d)(1) Subject to paragraph (3), for a plan confirmed prior
to the date of enactment of this subsection, the plan may be modified
upon the request of the debtor if—
‘‘(A) the debtor is experiencing or has experienced a mate-
rial financial hardship due, directly or indirectly, to the
coronavirus disease 2019 (COVID–19) pandemic; and
‘‘(B) the modification is approved after notice and a hearing.
‘‘(2) A plan modified under paragraph (1) may not provide
for payments over a period that expires more than 7 years after
the time that the first payment under the original confirmed plan
was due.
‘‘(3) Sections 1322(a), 1322(b), 1323(c), and the requirements
of section 1325(a) shall apply to any modification under paragraph
(1).’’.
(D) APPLICABILITY.—
(i) The amendments made by subparagraphs (A)
and (B) shall apply to any case commenced before,
on, or after the date of enactment of this Act.
(ii) The amendment made by subparagraph (C)
shall apply to any case for which a plan has been
confirmed under section 1325 of title 11, United States
Code, before the date of enactment of this Act.
(2) SUNSET.—
(A) IN GENERAL.—
(i) EXCLUSION FROM CURRENT MONTHLY INCOME.—
Section 101(10A)(B)(ii) of title 11, United States Code,
is amended—
(I) in subclause (III), by striking the semicolon
at the end and inserting ‘‘; and’’;
(II) in subclause (IV), by striking ‘‘; and’’ and
inserting a period; and
(III) by striking subclause (V).
(ii) CONFIRMATION OF PLAN.—Section 1325(b)(2) of
title 11, United States Code, is amended by striking
‘‘payments made under Federal law relating to the
national emergency declared by the President under
the National Emergencies Act (50 U.S.C. 1601 et seq.)
with respect to the coronavirus disease 2019 (COVID–
19),’’.
(iii) MODIFICATION OF PLAN AFTER CONFIRMA-
TION.—Section 1329 of title 11, United States Code,
is amended by striking subsection (d).
(B) EFFECTIVE DATE.—The amendments made by
subparagraph (A) shall take effect on the date that is
1 year after the date of enactment of this Act.
SEC. 1114. EMERGENCY RULEMAKING AUTHORITY.
Not later than 15 days after the date of enactment of this
Act, the Administrator shall issue regulations to carry out this
title and the amendments made by this title without regard to
the notice requirements under section 553(b) of title 5, United
States Code.
EXHIBIT A
Page 11
Case 4:20-cv-10899-MFL-DRG ECF No. 12-2 filed 04/17/20 PageID.519 Page 12 of 12
H. R. 748—21
without submitting to the lender that is servicing the covered
loan the documentation required under subsection (e).
(g) DECISION.—Not later than 60 days after the date on which
a lender receives an application for loan forgiveness under this
section from an eligible recipient, the lender shall issue a decision
on the an application.
(h) HOLD HARMLESS.—If a lender has received the documenta-
tion required under this section from an eligible recipient attesting
that the eligible recipient has accurately verified the payments
for payroll costs, payments on covered mortgage obligations, pay-
ments on covered lease obligations, or covered utility payments
during covered period—
(1) an enforcement action may not be taken against the
lender under section 47(e) of the Small Business Act (15 U.S.C.
657t(e)) relating to loan forgiveness for the payments for payroll
costs, payments on covered mortgage obligations, payments
on covered lease obligations, or covered utility payments, as
the case may be; and
(2) the lender shall not be subject to any penalties by
the Administrator relating to loan forgiveness for the payments
for payroll costs, payments on covered mortgage obligations,
payments on covered lease obligations, or covered utility pay-
ments, as the case may be.
(i) TAXABILITY.—For purposes of the Internal Revenue Code
of 1986, any amount which (but for this subsection) would be
includible in gross income of the eligible recipient by reason of
forgiveness described in subsection (b) shall be excluded from gross
income.
(j) RULE OF CONSTRUCTION.—The cancellation of indebtedness
on a covered loan under this section shall not otherwise modify
the terms and conditions of the covered loan.
(k) REGULATIONS.—Not later than 30 days after the date of
enactment of this Act, the Administrator shall issue guidance and
regulations implementing this section.
SEC. 1107. DIRECT APPROPRIATIONS.
(a) IN GENERAL.—There is appropriated, out of amounts in
the Treasury not otherwise appropriated, for the fiscal year ending
September 30, 2020, to remain available until September 30, 2021,
for additional amounts—
(1) $349,000,000,000 under the heading ‘‘Small Business
Administration—Business Loans Program Account, CARES
Act’’ for the cost of guaranteed loans as authorized under para-
graph (36) of section 7(a) of the Small Business Act (15 U.S.C.
636(a)), as added by section 1102(a) of this Act;
(2) $675,000,000 under the heading ‘‘Small Business
Administration—Salaries and Expenses’’ for salaries and
expenses of the Administration;
(3) $25,000,000 under the heading ‘‘Small Business
Administration—Office of Inspector General’’, to remain avail-
able until September 30, 2024, for necessary expenses of the
Office of Inspector General of the Administration in carrying
out the provisions of the Inspector General Act of 1978 (5
U.S.C. App.);
(4) $265,000,000 under the heading ‘‘Small Business
Administration—Entrepreneurial Development Programs’’, of
which—
EXHIBIT A
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