Sec. 6. Payments to eligible applicants
758 words·~3 min read·
/bill/116/hr/7671/ih/section-6A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
As soon as practicable, but not later than 5 calendar days after the date on which a determination is made by the Special Administrator regarding the amount of recovery compensation or interim compensation due to an applicant under this Act, the Special Administrator shall authorize payment to such applicant of the amount determined with respect to the applicant. An eligible applicant may use recovery compensation proceeds only 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 Federal, State, and local tax obligations.
As a condition for receipt of recovery compensation under this Act, an eligible applicant shall make a good-faith certification that— the uncertainty of economic conditions as of the date of the application makes necessary the recovery compensation request to support the ongoing operations of the applicant; the funds the applicant receives will be used to retain at least 90 percent of the applicant’s workforce as of the date of application, at full compensation and benefits, for the period that they receive compensation; the applicant intends to restore compensation and benefits to not less than 75 percent of the workforce of the applicant that existed as of March 1, 2020, no later than 4 months after the termination date of the public health emergency declared by the Secretary of Health and Human Services on January 31, 2020, under section 319 of the Public Health Service Act ( 42 U.S.C. 247d ) in response to COVID–19; the applicant is an entity or business 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; and the funds the applicant receives will not be used for a restricted purpose under subsection (c).
The Special Administrator shall make a payment of recovery compensation to an applicant only if such applicant agrees— until the date 12 months after the date on which the payment is made, not to repurchase an equity security that is listed on a national securities exchange of the applicant or any parent company of the applicant, except to the extent required under a contractual obligation that is in effect as of the date of enactment of this Act; until the date 12 months after the date on which the payment is made, not to pay dividends or make other capital distributions with respect to the common stock of the applicant, during the eligible period a recipient that is an S corporation or passthrough entity may provide a distribution to pay tax obligations; and no funds received by the applicant may be used for payment of an expense to a foreign person which is a related party of the applicant to which a deduction is allowable under chapter 1 of the Internal Revenue Code of 1986.
Not later than 6 months after the end of an eligible applicant’s covered period, an eligible applicant shall report, pursuant to rules prescribed by the Special Administrator, a final accounting of all eligible operating costs incurred during the covered period, and all eligible revenue received during the covered period. The Special Administrator shall determine, based on a report submitted under paragraph (1), whether an applicant received any excess recovery compensation under this title during the covered period.
To the extent an eligible applicant received excess recovery compensation as determined by the Special Administrator, an eligible applicant shall return such excess recovery compensation to the Treasury in a manner prescribed by the Special Administrator. This Act constitutes budget authority in advance of appropriations Acts and represents the obligation of the Federal Government to provide for the payment of amounts for compensation under this Act.
Connectionstraces to 3
Traces to 3 documents
Citation graph
cites case law
Cites 3Cited by 0 across 0 sources