Sec. 190009. Emergency economic injury grants for additional covered entities
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The Administrator of the Small Business Administration shall provide grants to additional covered entities that have suffered a substantial economic injury (as defined in section 7(b)(2) of the Small Business Act ( 15 U.S.C. 636(b)(2) )), directly or indirectly, as a result of the public health emergency declared because of COVID–19. The term additional covered entity means— a 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 71; 72; 44; 45; and 812930; a small business concern (as defined under section 3 of the Small Business Act ( 15 U.S.C. 632 )); and if such person was in operation on or before January 31, 2020— a individual who operates under a sole proprietorship or as an independent contractor; a cooperative that employs not more than 500 employees per physical location of the cooperative; an ESOP (as defined in section 3(q)(6) of the Small Business Act ( 15 U.S.C. 632(q)(6) )) that employs not more than 500 employees per physical location of the ESOP; an organization serving veterans or members of the Armed Forces (as defined in section 501(c)(19) of the Internal Revenue Code of 1986, that is exempt from taxation under subsection
(a)of such section); a private non-profit organization that employs not more than 500 employees per physical location of the organization; or a start-up small business concern that employs not more than 500 employees per physical location of the concern. The Administrator shall use the existing direct loan application process administered under section 7(b) of the Small Business Act ( 15 U.S.C. 636(b) ) to disburse grant funds, to greatest extent possible, within 3 days after receiving an application from an additional covered entity. Before disbursing amounts under this subsection, the Administrator shall verify that the applicant is an additional covered entity. For the purposes of this section, the Administrator of the Small Business Administration shall suspend the application of the affiliation rules of the Administration during the period beginning on January 31, 2020 and ending on September 30, 2021, except that individual affiliates may not exceed the current small business size standard for the industry in which the affiliate operates, and any group of affiliates may not receive more than 3 times the maximum allowable grant amount under subsection (f). The amount of a grant provided under this section shall be not more than $10,000. An additional covered entity that receives a grant under this section may use the grant funds to address the direct effects of the COVID–19 pandemic, including— payroll support, including paid sick, medical, or family leave and costs related to the continuation of health care benefits; maintaining payroll to retain employees during business disruptions or substantial slowdowns; meeting increased costs to obtain materials unavailable from the original source of the additional covered entity due to interrupted supply chains; making payments under a lease or mortgage loan, or a contract for utility services, related to a place of operation of the additional covered entity; repaying obligations that cannot be met due to revenue losses; and other expenses, as deemed appropriate by the Administrator. An additional covered entity that receives a grant under this section may also apply for a loan under subsections
(a)or
(b)of section 7 of the Small Business Act ( 15 U.S.C. 636 ). The Administrator shall establish procedures to verify and document the compliance of an additional covered entity that receives a grant under this section with the requirements under this section in order to prevent waste, fraud, and abuse of such grant funds. Not later than March 31, 2022, the Administrator of the Small Business Administration shall submit to Congress a report that includes— the number of grants made under this section, disaggregated by the number of grants made— in an amount less than or equal to $1,000; in an amount greater than $2,000 but less than or equal to $3,000; in an amount greater than $3,000 but less than or equal to $4,000; in an amount greater than $4,000 but less than or equal to $5,000; in an amount greater than $5,000 but less than or equal to $6,000; in an amount greater than $6,000 but less than or equal to $7,000; in an amount greater than $7,000 but less than or equal to $8,000; in an amount greater than $8,000 but less than or equal to $9,000; and in an amount greater than $9,000 but less than or equal to $10,000; the average amount of a grant award; an analysis of the program established under this section and recommendations for improvement; the average time from receipt of an application to approval of grant under this section; and the average time from approval of grant to disbursement of grant funds. There is authorized to be appropriated $100,000,000,000 to the Administrator to carry out this section. The authority to carry out grants under this section shall terminate on September 30, 2021.
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