Sec. 90001. Amendments to the paycheck protection program
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Section 7(a)(36)(A)(iii) of the Small Business Act ( 15 U.S.C. 636(a)(36)(A)(iii) ) is amended by striking June 30, 2020 and inserting December 31, 2020 . Section 7(a)(36)(D) of the Small Business Act ( 15 U.S.C. 636(a)(36)(D) ) is amended by striking described in section 31(b)(2)(C) each place it appears. Section 7(a)(36)(D) of the Small Business Act ( 15 U.S.C. 636(a)(36)(D) ) is amended by adding at the end the following new clause: During the covered period, any nonprofit organization that is a critical access hospital (as defined in section 1861(mm) of the Social Security Act ( 42 U.S.C. 1395x(mm) )) shall be eligible to receive a covered loan, regardless of the status of such a hospital as a debtor in a case under chapter 11 of title 11, Unites States Code, or the status of any debts owed by such a hospital to the Federal Government. .
Section 7(a)(36) of the Small Business Act ( 15 U.S.C. 636(a)(36) ) is amended— in subparagraph (A)— in clause (vii), by striking section 501(c)(3) and inserting section 501(c) ; in clause (viii)(II)— in item (dd), by striking or at the end; in item (ee), by inserting or ; and by adding at the end the following new item: any compensation of an employee who is a registered lobbyist under the Lobbying Disclosure Act of 1995; ; in clause (xi)(IV), by striking and at the end; in clause (xii), by striking the period at the end and inserting ; and ; and by adding at the end the following new clause: the term housing cooperative means a cooperative housing corporation (as defined in section 216(b) of the Internal Revenue Code of 1986). ; and in subparagraph (D)— by striking nonprofit organization, each place it appears and inserting housing cooperative, ; by adding at the end the following new clause:
During the covered period, any nonprofit organization shall be eligible to receive a covered loan. Any 501(c)(4) organization (as defined in section 501(c)(4) of the Internal Revenue Code of 1986) may receive a covered loan provided that such 501(c)(4) organization has not made and will not make a contribution, expenditure, independent expenditure, or electioneering communication within the meaning of the Federal Election Campaign Act, and has not undertaken and will not undertake similar campaign finance activities in State and local elections, during the election cycle which ends on the date of the general election in this calendar year; ; in clause (iv)— in subclause (II), by striking and at the end; in subclause (III), by striking the period at the end and inserting ; and ; and by adding at the end the following new subclause: any nonprofit organization. ; and in clause (vi), by striking nonprofit organization and inserting housing cooperative .
Section 7(a)(36)(D) of the Small Business Act ( 15 U.S.C. 636(a)(36)(D) ) is amended— in clause (iii)— by striking business concern that employs and inserting the following: business concern that— employs ; in subclause (I), by striking the period at the end and inserting ; and ; and by adding at the end the following: is assigned a North American Industry Classification System code beginning with 511110, 515112, or 515120 and the individual physical location at the time of disbursal does not exceed the size standard established by the Administrator for the applicable code shall be eligible to receive a covered loan for expenses associated with an individual physical location of that business concern to support the continued provision of local news, information, content, or emergency information, and, at the time of disbursal, the individual physical location. ; in clause
(iv)(as amended by subsection (d))— in subclause (III), by striking and at the end; in subclause (IV), by striking the period at the end and inserting ; and ; and by adding at the end the following: an individual physical location of a business concern described in clause (iii)(II), if such concern shall not pay, distribute, or otherwise provide any portion of the covered loan to any other entity other than the individual physical location that is the intended recipient of the covered loan. ; and by adding at the end the following new clause: With respect to an individual physical location of a business concern described in clause (iii)(II), each such location shall be treated as an independent, nonaffiliated entity for purposes of this paragraph. A parent company, investment company, or management company of one or more physical locations of a business concern described in clause (iii)(II) shall not be eligible for a covered loan. Any such location that is a franchise or affiliate of, or owned or controlled by a parent company, investment company, or the management thereof, shall demonstrate, upon request of the Administrator, the need for a covered loan to support the continued provision of local news, information, content, or emergency information, and, at the time of disbursal, the individual physical location. The Administrator and Secretary of the Treasury shall submit to the Committee on Small Business of the House of Representatives, the Committee on Small Business and Entrepreneurship of the Senate, and the Congressional Oversight Commission established under section 4020 of the CARES Act a report including information on loans made to an entity described under this clause. . Section 7(a)(36) of the Small Business Act ( 15 U.S.C. 636(a)(36) ) is amended— in subparagraph (H), by striking During the covered period, with and inserting With ; in subparagraph (I), by striking During the covered period, the and inserting The ; in subparagraph (J), by striking During the covered period, with and inserting With ; in subparagraph (M)— in clause (ii), by striking During the covered period, the and inserting The ; and in clause (iii), by striking During the covered period, with and inserting With . Section 7(a)(36)(K)(ii) of the Small Business Act ( 15 U.S.C. 636(a)(36)(K)(ii) ) is amended by inserting minimum maturity of 5 years before maximum maturity . Section 7(a)(36)(L) of the Small Business Act ( 15 U.S.C. 636(a)(36)(L) ) is amended by inserting , calculated on a non-compounding, non-adjustable basis after 4 percent . Section 7(a)(36)(S) of the Small Business Act ( 15 U.S.C. 636(a)(36)(S) ) is amended to read as follows: The Administrator shall provide for the cost to guarantee covered loans made under this paragraph— a set aside of not less than 25 percent of each such amount for covered loans made to eligible recipients with 10 or fewer employees; and a set aside of 25 percent of each such amount for covered loans made to nonprofit organizations, of which not more than 12.5 percent of each such amount set aside may be used to make covered loans to nonprofit organizations with 500 or more employees. . Of amounts appropriated by the Paycheck Protection Program and Health Care Enhancement Act ( Public Law 116–139 ) under the heading Small Business Administration—Business Loans Program Account, CARES Act that have not been obligated or expended, the lesser of 25 percent of such amounts or $10,000,000,000 shall be set aside for the cost to guarantee covered loans made under section 7(a)(36) of the Small Business Act ( 15 U.S.C. 636(a)(36) ) by community financial institutions (as such term is defined in subparagraph (A)(xi) of such section). Section 7(a)(36) of the Small Business Act ( 15 U.S.C. 636(a)(36) ) is amended by adding at the end the following new subparagraph: Any amounts returned to the Secretary of the Treasury due to the cancellation of a covered loan shall be solely used for the cost to guarantee covered loans made to eligible recipients with 10 or fewer employees. . Section 7(a)(36) of the Small Business Act ( 15 U.S.C. 636(a)(36) ), as amended by subsection (i), is further amended by adding at the end the following new subparagraph: A entity that is a business, organization, cooperative, or enterprise may not receive a covered loan if an owner of 20 percent or more of the equity of such entity, during the 5-year period preceding the date on which such entity applies for a covered loan, has been convicted of a felony of financial fraud or deception under Federal, State, or Tribal law. An entity that is a business, organization, cooperative, or enterprise shall be an eligible recipient notwithstanding a prior arrest or conviction under Federal, State, or Tribal law of an owner of 20 percent or more of the equity of such entity, unless such owner is currently incarcerated. The Administrator may waive the requirements of clause (i). . Not later than 15 days after the date of enactment of this Act, the Administrator of the Small Business Administration shall make necessary revisions to any rules to carry out the amendment made by this subsection. Section 7(a)(36) of the Small Business Act ( 15 U.S.C. 636(a)(36) ), as amended by subsection (i), is further amended by adding at the end the following new subparagraph: Of amounts appropriated to carry out this paragraph, the Secretary of the Treasury, in consultation with the Administrator, shall use $250,000,000 of such amounts to provide grants to community financial institutions, insured depository institutions with consolidated assets of less than $10,000,000,000, and credit unions with consolidated assets of less than $10,000,000,000, to ensure such institutions can update their systems (including updates related to compliance with the Bank Secrecy Act) and efficiently provide loans that are guaranteed under this paragraph. . Section 7(a)(36)(G) of the Small Business Act ( 15 U.S.C. 636(a)(36) ) is amended— in the subparagraph heading, by striking and all that follows through Borrower requirements eligible recipient applying and inserting ; and Borrower certification requirements .—An eligible recipient applying by redesignating subclauses
(I)through
(IV)as clauses
(i)through (iv), respectively.
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Sec. 90001
Amendments to the paycheck protection program
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