Sec. 1110. Emergency EIDL grants
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In this section— the term covered period means the period beginning on January 31, 2020 and ending on December 31, 2020; and the term eligible entity means— a business with not more than 500 employees; any individual who operates under a sole proprietorship, with or without employees, or as an independent contractor; a cooperative with not more than 500 employees; an ESOP (as defined in section 3 of the Small Business Act ( 15 U.S.C. 632 )) with not more than 500 employees; or a tribal small business concern, as described in section 31(b)(2)(C) of the Small Business Act ( 15 U.S.C. 657a(b)(2)(C) ), with not more than 500 employees.
During the covered period, in addition to small business concerns, private nonprofit organizations, and small agricultural cooperatives, an eligible entity shall be eligible for a loan made under section 7(b)(2) of the Small Business Act ( 15 U.S.C. 636(b)(2) ). With respect to a loan made under section 7(b)(2) of the Small Business Act ( 15 U.S.C. 636(b)(2) ) in response to COVID–19 during the covered period, the Administrator shall waive— any rules related the personal guarantee on advances and loans of not more than $200,000 during the covered period for all applicants; the requirement that an applicant needs to be in business for the 1-year period before the disaster, except that no waiver may be made for a business that was not in operation on January 31, 2020; and the requirement in the flush matter following subparagraph
(E)of section 7(b)(2) of the Small Business Act ( 15 U.S.C. 636(b)(2) ), as so redesignated by subsection
(f)of this section, that an applicant be unable to obtain credit elsewhere. With respect to a loan made under section 7(b)(2) of the Small Business Act ( 15 U.S.C. 636(b)(2) ) in response to COVID–19 during the covered period, the Administrator may— approve an applicant based solely on the credit score of the applicant and shall not require an applicant to submit a tax return or a tax return transcript for such approval; or use alternative appropriate methods to determine an applicant’s ability to repay. During the covered period, an entity included for eligibility in subsection (b), including small business concerns, private nonprofit organizations, and small agricultural cooperatives, that applies for a loan under section 7(b)(2) of the Small Business Act ( 15 U.S.C. 636(b)(2) ) in response to COVID–19 may request that the Administrator provide an advance that is, subject to paragraph (3), in the amount requested by such applicant to such applicant within 3 days after the Administrator receives an application from such applicant. Before disbursing amounts under this subsection, the Administrator shall verify that the applicant is an eligible entity by accepting a self-certification from the applicant under penalty of perjury pursuant to section 1746 of title 28 United States Code. The amount of an advance provided under this subsection shall be not more than $10,000. An advance provided under this subsection may be used to address any allowable purpose for a loan made under section 7(b)(2) of the Small Business Act ( 15 U.S.C. 636(b)(2) ), including— providing paid sick leave to employees unable to work due to the direct effect of the COVID–19; maintaining payroll to retain employees during business disruptions or substantial slowdowns; meeting increased costs to obtain materials unavailable from the applicant’s original source due to interrupted supply chains; making rent or mortgage payments; and repaying obligations that cannot be met due to revenue losses. An applicant shall not be required to repay any amounts of an advance provided under this subsection, even if subsequently denied a loan under section 7(b)(2) of the Small Business Act ( 15 U.S.C. 636(b)(2) ). If an applicant that receives an advance under this subsection transfers into, or is approved for, the loan program under section 7(a) of the Small Business Act ( 15 U.S.C. 636(a) ), the advance amount shall be reduced from the loan forgiveness amount for a loan for payroll costs made under such section 7(a). There is authorized to be appropriated to the Administration $10,000,000,000 to carry out this subsection. The authority to carry out grants under this subsection shall terminate on December 31, 2020. Section 7(b)(2) of the Small Business Act ( 15 U.S.C. 636(b)(2) ) is amended— in subparagraph (A), by striking or at the end; in subparagraph (B), by striking or at the end; in subparagraph (C), by striking or at the end; by redesignating subparagraph
(D)as subparagraph (E); by inserting after subparagraph
(C)the following: 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 ; and in subparagraph (E), as so redesignated— by striking or
(C)and inserting (C), or
(D); by striking disaster declaration each place it appears and inserting disaster or emergency declaration ; by striking disaster has occurred and inserting disaster or emergency has occurred ; by striking such disaster and inserting such disaster or emergency ; and by striking disaster stricken and inserting disaster- or emergency-stricken ; and in the flush matter following subparagraph (E), as so redesignated, by striking the period at the end and inserting the following: : . , 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. Provided further
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