Sec. 5. Determination of eligibility for recovery compensation
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An applicant may file an application for recovery compensation under this Act with the Special Administrator. Except as provided under paragraph (3), the application for recovery compensation shall be on the form developed under paragraph
(2)and shall state the factual basis for eligibility for recovery compensation and the amount of recovery compensation sought. The Special Administrator shall develop an application form that shall be simple to file and audit for fraud that applicants shall use when submitting applications under paragraph (1). The Special Administrator shall ensure that the form described in clause
(i)can be filed electronically, if determined to be practicable. The form developed under subparagraph
(A)shall be made available in English and Spanish, and the Special Administrator may prioritize translation of the form into additional languages in order to serve the broadest pool of applicants. The form developed under subparagraph
(A)shall require that an applicant disclose all known collateral compensation, and shall request information on the applicant’s impairment that the Special Administrator deems necessary, including information relating to the applicant’s expenses, payroll, and loss of revenue due to the COVID–19 pandemic. In developing the contents of the form under subparagraph (C), the Special Administrator may consider requiring information on payroll, operating expenses, lost revenue, and payments to employees with potential COVID–19-related illness. Such information required may include— the average total monthly payments by the applicant for payroll, payroll support (including paid sick, medical, or family leave, and costs related to the continuation of group health care benefits during those periods of leave) during the 18-month period before March 13, 2020, except that, in the case of an applicant that is a seasonal employer, as determined by the Special Administrator, the average total monthly payments for payroll and payroll support shall be for the period beginning March 1, 2019, and ending June 30, 2019; the average total monthly payments by the applicant for mortgage payments, rent payments, utilities, insurance payments, and payments on any debt obligations incurred prior to July 1, 2020, during the 18-month period before July 1, 2020; to the extent that the Special Administrator is making available recovery compensation for lost revenue, the average monthly revenue, including unpaid accounts receivable, that does not include net profits for the applicant during the 18-month period before the date on which the application for recovery compensation is submitted; and the wages, salary, or other payments made to employees who are unable to work because they tested positive for or were exposed to COVID–19. To the extent the information in the application is non-public information, the contents shall be deemed Confidential Business Information not subject to disclosure. During the period beginning on the date of enactment of this Act and ending on the date on which regulations are promulgated under this Act, an applicant may file with the Special Administrator an interim application for immediate relief without the use of an approved form, provided the application includes information described in subparagraph
(C)of paragraph
(2)of this subsection. No application may be filed under paragraph (1), or paid by the Special Administrator, with respect to losses accrued after the termination of the national emergency proclaimed by the President on March 13, 2020. Within a reasonable time after such termination, and subject to the provisions of this Act, the Special Administrator shall notify Congress of the expected closure of the program established under this Act, while ensuring that all applications filed prior to the termination of the national emergency receive due consideration. The Special Administrator shall provide guidelines on how applicants that are operating new entities before March 13, 2020, shall substantiate their Expenses, Payroll, and Lost Revenue. The Special Administrator shall review an application submitted under subsection (a)(1) and determine— whether the applicant is an eligible applicant under subsection (c); and the amount of recovery compensation the eligible applicant shall receive, on a monthly basis, based on what is necessary to maintain continuity of operations for the applicant with respect to paying expenses and payroll and compensating for lost revenue as described in subparagraph
(D)of subsection (a)(2); provided that— the amount of recovery compensation the eligible applicant receives shall be adjusted each month to take into account increases or decreases in such applicant’s revenue over the previous month; the total amount of recovery compensation to which the applicant is entitled based on this subparagraph shall take into account the amount of any interim compensation awarded to the applicant pursuant to paragraph (2); and the maximum amount of recovery compensation to which an eligible applicant may be entitled shall be the lesser of— the applicant’s average total monthly expense payments, as determined under subparagraph (C), for a period not to exceed 4 months in aggregate; and $50,000,000. For purposes of clause
(iii)of subparagraph (B), an applicant’s average total monthly expense payments shall be the average monthly payments by the applicant during the 1 year prior to the date on which an application is made (or in the case of a seasonal business or new business, a period determined by the Special Administrator), for— payroll costs; costs related to the continuation of group health care benefits during periods of paid sick, medical, or family leave; any insurance premiums; employee salaries, commissions, or similar compensations, except that recovery compensation may not be used for the compensation of an individual employee in excess of an annual salary of $100,000, as prorated for the relevant compensation period; payments of interest on any mortgage obligation (which shall not include any prepayment of or payment of principal on a mortgage obligation); rent (including rent under a lease agreement); utilities; loan repayment obligations incurred by the applicant pursuant to section 1102 of the Coronavirus Aid, Relief, and Economic Security Act ( Public Law 116–136 ); loan repayment obligations incurred by the applicant pursuant to a disaster loan authorized under section 7(b) of the Small Business Act ( 15 U.S.C. 636(b) ); interest on any other debt obligations that were incurred before March 1, 2020; and State and local tax obligations. The Special Administrator shall review an interim application submitted under subsection (a)(3) and determine— whether the applicant is an eligible applicant under subsection (c); and with respect to an applicant determined to be an eligible applicant, the amount of interim compensation to which an eligible applicant is entitled under subparagraph (C). An eligible applicant under this paragraph shall be entitled to interim compensation in such amounts as determined by the Special Administrator not to exceed, as calculated under subparagraph
(C)of paragraph (1)— in the case of an applicant with average monthly payments in excess of $1,000,000, 25 percent of such payments; in the case of an applicant with average monthly payments in excess of $100,000 but less than $1,000,000, 50 percent of such payments; and in the case of an applicant with average monthly payments of $100,000 or less, 75 percent of such payments. A determination under this subsection shall be final and not subject to judicial review. As soon as practicable, and for applications given priority by the Special Administrator under this Act, not later than 30 calendar days after that date on which an application is filed under subsection (a)(1), the Special Administrator shall either request more information from the applicant or complete a review and make a determination pursuant to paragraph
(1)of this subsection, and provide written notice to the applicant, with respect to the matters that were the subject of the application for recovery compensation under review. If the Special Administrator requests additional information pursuant to this subparagraph, the Special Administrator shall absent exigent circumstances make its determination pursuant to paragraph
(1)of this subsection within 30 calendar days of receiving a response to its request for more information. Not later than 15 calendar days after the date on which an interim application is filed under subsection (a)(3), the Special Administrator shall complete a review and make a determination on interim compensation pursuant to paragraph
(2)of this subsection, and provide written notice to the applicant with respect to that determination. In determining the amount of recovery compensation to be paid to an applicant under paragraph (1)(B) the Special Administrator shall consider the amount of the collateral source compensation the applicant received or the value of collateral source compensation the applicant is reasonably certain to receive as a result of the COVID–19 pandemic. The Special Administrator shall promulgate regulations establishing a procedure by which an applicant may appeal directly to the Special Administrator an eligibility or compensation determination with respect to such applicant made under this Act. The United States Court of Federal Claims shall have exclusive jurisdiction of an appeal from a final determination by the Special Administrator under this Act. In all matters related to its application, an applicant shall have the right to be represented by an attorney. Notwithstanding any contract, a representative of an applicant may not charge, for services rendered in connection with an application under this Act, more than 10 percent of the difference between— the initial amount of recovery compensation awarded to such applicant as determined by the Special Administrator under paragraph (3); and the final amount of recovery compensation awarded to such applicant after any appeal of such determination. An applicant shall be determined to be an eligible applicant for purposes of this subsection if the Special Administrator determines that such applicant— is a business or organization in an impaired sector as defined by the Special Administrator, including 501c(6) organizations; is a business or organization that is created or organized in the United States or under the laws of the United States and has significant operations in, and a majority of its employees based in, the United States; is not eligible for loans or loan guarantees under subsection (b)(1), (b)(2), or (b)(3) of section 4003 of the Coronavirus Aid, Relief, and Economic Security Act ( Public Law 116–136 ); in the case of an applicant that has received a loan under section 1102 of the Coronavirus Aid, Relief, and Economic Security Act ( Public Law 116–136 ), has complied with all applicable borrower repayment obligations under such loan; is not registered with the Securities and Exchange Commission as a Family Office pursuant to section 275.202(a)(11)(G)–1 of title 17, Code of Federal Regulations; to the extent not otherwise eligible under this paragraph, any business utilizing business format franchising as a franchisor or franchisee under part 436 of title 16, Code of Federal Regulations or a business concern operating as a franchisor or franchisee that is assigned a franchise identifier code by the Small Business Administration; and meets the requirements of paragraph (2). An applicant shall not be determined to be an eligible applicant by the Special Administrator unless the applicant— was in operation on March 1, 2020; was not a debtor concerning which an active case under title 11, United States Code, had been commenced prior to March 1, 2020; and to the extent the applicant is seeking recovery compensation for payroll and payroll support as described in this Act, had employees for whom the applicant paid salaries or wages, and payroll taxes. An applicant requesting recovery compensation for losses described under this Act shall not be eligible for such compensation unless the applicant continued to pay salaries or wages to such employees, or will otherwise provide relief received under subsection (a)(2)(D) to such employees, who— tested positive for COVID–19; or were exposed to COVID–19 in the workplace. Not more than one application may be submitted under this Act by an applicant, except that, for purposes of this subparagraph— an eligible applicant that submitted an interim application under subsection (a)(3) shall remain eligible to file an application for recovery compensation under subsection (a)(1); in the event the Secretary notifies Congress of a renewed COVID–19 threat under this Act, an eligible applicant shall remain eligible to file a renewal or updated version of a previously filed application; and pursuant to guidelines to be established by the Special Administrator, related entities may submit a joint application.
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