Sec. 2. Paycheck recovery program
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The Secretary of the Treasury (in this Act referred to as the Secretary ) shall establish a grant program (in this Act referred to as the Program ) to award grants to carry out the activities described in subsection (f). The Secretary shall award a grant under the Program to an employer that submits an application under subsection
(c)and has experienced, or anticipates experiencing, a loss of revenue as a result of the coronavirus disease 2019 (COVID–19)— for an employer that is not a new employer, in an amount that is at least 10 percent of the gross receipts of the employer for the corresponding 2019 period that relates to the calendar quarter in which the employer submits such application; or for a new employer, in an amount that is at least 10 percent of the gross receipts of the new employer for the period for which the new employer most recently filed employment tax information with the Secretary. Regardless of whether the employer meets the requirements of subparagraph (A), the Secretary shall award a grant under the Program to an employer that submits an application under subsection
(c)if— the employer employed 20 or fewer employees on March 1, 2020; and the annual gross receipts of such employer for 2019 is an amount less than $3,000,000 or, in the case of a new employer, the projected annual gross receipts of such new employer (calculated by determining the median amount of gross receipts for the months for which the new employer has been in existence and multiplying the amount by 12) is an amount less than $3,000,000. An employer is not eligible to receive a grant under the Program if the employer is simultaneously receiving assistance under— an employee retention tax credit pursuant to section 2301 of the CARES Act ( Public Law 116–136 ); the Exchange Stabilization Fund established under section 5302 of title 31, United States Code; a covered loan under section 7(a)(36) of the Small Business Act ( 15 U.S.C. 636(a)(36) ); or a Main Street Lending Program of the Federal Reserve System. The Secretary shall take such steps as are necessary to establish a process by which an employer who has received assistance under a program specified in subparagraph
(A)may convert such assistance into a grant under the Program. The existence or nonexistence of a stay-at-home order issued as a result of COVID–19 by the government of the State or locality in which an employer operates shall have no effect on the eligibility of the employer under the Program. Except as provided in paragraph (2), to receive a grant under the Program, an eligible employer shall submit to the Secretary an application in such form, at such time, and containing such information the Secretary determines appropriate, which shall include at a minimum a sworn declaration attesting to any loss of revenue experienced, or anticipated to be experienced, by the employer as a result of COVID–19. The Secretary shall not require an employer that is eligible under subsection (b)(1)(B) to include in an application for a grant under the Program a sworn declaration attesting to any loss of revenue experienced, or anticipated to be experienced, by the employer as a result of COVID-19. The Secretary shall conduct outreach and provide technical assistance to small businesses to assist eligible small businesses in applying for grants under the Program. Under the Program, the Secretary shall provide to an eligible employer an initial grant in an amount that is equal to the sum of— except as provided in paragraph
(3)and subject to paragraph (4)— for an employer that is not a new employer, an amount calculated by multiplying the percentage of experienced or anticipated loss of revenue attested to in subsection
(c)by the amount of wages provided by the employer to any covered employees or covered former employees during the corresponding 2019 period that relates to the period— beginning on the date that is the later of March 1, 2020, or the date on which the employer became eligible under subsection (b); and ending on the date that is 90 days after the date on which the Secretary provides the initial grant; or for a new employer, an amount calculated by multiplying the percentage of experienced or anticipated loss of revenue attested to in subsection
(c)by an amount determined by the Secretary based on the employment tax information statement filed with the Secretary by the new employer for the most recent month; and the amount that is 25 percent of the amount of wages provided by the employer to any covered employees or covered former employees during— for an employer that is not a new employer, the corresponding 2019 period specified in subparagraph (A)(i); or for a new employer, the most recent month for which the new employer filed an employment tax information statement with the Secretary. With respect to the first full month beginning 90 days after the date on which the Secretary provides to an eligible employer an initial grant under paragraph (1), and each month thereafter until the date on which the Secretary terminates the program, the Secretary shall provide to such employer a grant in an amount that is equal to the sum of— except as provided in paragraph
(3)and subject to paragraph (4)— for an employer that is not a new employer, an amount calculated by multiplying the percentage of experienced or anticipated loss of revenue attested to in subsection
(c)by the amount of wages provided by the employer to covered employees and covered former employees during the corresponding 2019 period that relates to such month; or for a new employer, an amount calculated by multiplying the percentage of experienced or anticipated loss of revenue attested to in subsection
(c)by an amount determined by the Secretary based on the employment tax information statement filed with the Secretary by the new employer for the most recent month; and the amount that is 25 percent of the amount of the amount of wages provided by the employer to any covered employees or covered former employees during— for an employer that is not a new employer, the corresponding 2019 period that relates to such month; or for a new employer, the most recent month for which the new employer filed an employment tax information statement with the Secretary. In calculating the amount of an initial or subsequent grant under the Program for an employer that was determined eligible under subsection (b)(1)(B), the Secretary shall add— subject to paragraph (4), the amount of wages provided by the employer to any covered employees or covered former employees during the period specified in paragraph (1), for an initial grant, or paragraph (2), for a subsequent grant; and the amount that is 25 percent of the amount of wages provided by the employer to any covered employees or covered former employees during such period. The amount of wages (excluding any benefits) provided by an employer to any covered employee or covered former employee of the employer which may be taken into account to determine a grant amount under this subsection shall not exceed $90,000 in annual salary (excluding any benefits) per employee. The Secretary may promulgate regulations on the formula for determining grant amounts pursuant to this subsection. Before accepting grant funds awarded under the Program, an employer shall enter into an agreement with the Secretary, or otherwise certify, as determined appropriate by the Secretary, that the employer shall comply with each condition required under this section and sections 3 and 4. Grant funds awarded under the Program may only be used as follows: Grant funds in amounts determined under paragraphs (1)(A), (2)(A), or (3)(A) of subsection
(d)may be used to pay any covered employees or covered former employees the amount of wages (subject to the salary limitation in subsection (d)(4)) provided by the employer to such employees— for an employer that is not a new employer, during the corresponding 2019 period (adjusted, in the case of amounts determined under paragraphs (1)(A) or (2)(A), for the percentage of experienced or anticipated loss of revenue attested to in subsection (c)); or for a new employer, during the corresponding period for which the employer most recently filed with the Secretary an employment tax information statement (adjusted, in the case of amounts determined under paragraphs (1)(A) or (2)(A), for the percentage of experienced or anticipated loss of revenue attested to in subsection (c)). Grant funds in amounts determined under paragraphs (1)(B), (2)(B), or (3)(B) of subsection
(d)may be used to pay fixed expenses of the employer, including expenses relating to rent, utilities, mortgage payments, costs associated with vehicles or equipment, and costs necessary to protect against or minimize the effects of COVID-19, including the cost of safety equipment. If a covered employee or covered former employee of an employer receiving a grant under the Program quits or is terminated for cause during a month for which the employer receives grant funds, the employer shall be required to repay to the Department of Treasury, on a no-interest basis and by the date that is not later than two years after the date on which such employee quits or is terminated, the pro rata grant amount received with respect to the wages of such employee. The Secretary shall terminate the Program on the date on which the seasonally adjusted unemployment rate has remained below seven percent, as measured by the Bureau of Labor Statistics, for three consecutive months. The Secretary shall publish in the Federal Register notice of potential termination of the Program on any date on which the seasonally adjusted unemployment rate has remained below seven percent, as measured by the Bureau of Labor Statistics, for two consecutive months.
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