Sec. 5. Civil unrest business recovery grants for financial recovery and business development
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The Secretary, in consultation with the Secretary of the Treasury and the Administrator of the Small Business Administration, shall carry out a Civil Unrest Business Recovery Program under this section to make grants to States, units of general local government, Indian Tribes and insular areas to provide assistance to eligible for-profit entities through local civil unrest business recovery funds established for the delivery of business recovery grants that primarily serve to compensate damages from social and civil unrest during 2020 and also support business-led economic development.
Of any amounts made available to carry out this section, the Secretary shall reserve— 80 percent for allocation in accordance with subsection (c)(1); 12 percent for allocation for States in accordance with subsection (b)(2); and 8 percent for allocation for Indian Tribes and insular areas in accordance with subsection (c)(3). Of amount allocated under subsection (b)(1)— 70 percent shall be allocated for entitlement communities in accordance with the formula under section 106(b) of the Housing and Community Development Act of 1974 ( 42 U.S.C. 5306(b) ); and 30 percent shall be allocated for States, for use in nonentitlement areas, in accordance with the formula under section 106(d)(1) of the Housing and Community Development Act of 1974 ( 42 U.S.C. 5306(d)(1) ).
The Secretary shall allocate the amount allocated under subsection (b)(2) to States, for use in nonentitlement areas having low-income or minority populations, in accordance with the formula under section 106(d)(1) of the Housing and Community Development Act of 1974 ( 42 U.S.C. 5306(d)(1) ). The Secretary of Housing and Urban Development shall allocate to Indian Tribes and insular areas on a competitive basis the amount allocated under subsection (b)(3). In making allocations under subsection (b)(3), the Secretary of Housing and Urban Development shall, to the greatest extent practicable, ensure that each Indian Tribe and each insular area that satisfies low- to moderate-income requirements and unmet need criteria, as determined by the Secretary, receives such an allocation.
To the greatest extent practicable, a State shall allocate amounts allocated under subsection (c)(1)(B) for use in nonentitlement areas of the State on an equitable basis. Not later than 14 days after the date on which a State receives amounts for use in an nonentitlement area pursuant to subsection (c)(1)(B), the State shall— distribute the amounts, or a portion thereof, to units of general local government or entities designated thereby, that have established or will establish civil unrest business recovery funds, for use under subsection (e)(1); and elect to reserve the amounts, or a portion thereof, for use by the State under subsection
(e)for the benefit of eligible entities located in the nonentitlement area. It is the sense of Congress that, in distributing the amounts pursuant to subparagraph
(A)for nonentitlement areas in which a civil unrest business recovery fund has been established, a State should, as quickly as practicable, distribute amounts for use by such fund. A State, unit of general local government, entity designated by a unit of general local government, Indian Tribe, or insular area that receives an allocation under subsection (c), whether directly or indirectly, may use amounts from the allocation only— to provide funding to a civil unrest business recovery fund established in accordance with subsection (f); to provide funding to support organizations that provide technical assistance to eligible entities; to cover administrative costs incurred by the State, unit of general local government, Indian Tribe, or insular area (or entity designated by the State, unit, tribe, or area), in establishing and administering a civil unrest business recovery fund, except that not more than 2 percent of the allocation under subsection
(c)for the State, unit, tribe, or area may be used for the purpose under this paragraph; or to carry out technical assistance and outreach activities to expand and diversify subgrantees funded with amounts provided under this section. For purposes of this section, a civil unrest business recovery fund shall be a fund— that is established by a State, a unit of general local government, an Indian Tribe, an insular area, or an entity designated by a State, unit of general local government, Indian Tribe, or an insular area; the proceeds of which are used only to make business recovery grants under subsection
(g)to eligible entities operating within the area served by the fund in accordance with the needs of eligible entities and capacity of the program; and provides resources and services relating to such business recovery grants for eligible entities in the 10 most commonly spoken languages in the area in which the fund operates. Amounts from business recovery grant under this section may be used only— for business economic development activities that are eligible for assistance under section 105(a)(17) of the Housing and Community Development Act of 1974 ( 42 U.S.C. 5305(a)(17) ) or to repair, rehabilitate, or replace property, real or personal, of the eligible entity receiving the grant that was damaged, destroyed, or stolen during the covered period as a result of social and civil unrest during 2020; or only if the need for assistance for activities described in subparagraph
(A)in the area served by the civil unrest business recovery fund has been met, for activities described in paragraph (4). The Secretary may issue guidance to ensure that the need for assistance for activities described in subparagraph
(A)is met before amounts may be used as provided in paragraph (4). Notwithstanding any other provision in this Act, the Secretary, in consultation with the Administrator of the Small Business Administration, shall treat as qualifying for purposes of paragraph
(1)as areas of affected social and civil unrest during 2020 and shall give priority in allocations under subsection
(b)to— low-income communities; HUBZones; and any other area designated by the Small Business Administration for a disaster loan relating to social and civil unrest during 2020. The amount of a business recovery grant may not exceed the lesser of $1,000,000 or 100 percent of the amount required to repair, rehabilitate, or replace property, real or personal, including related labor cost offsets and related debt obligations incurred as a result of social or civil unrest during 2020, of the eligible entity that— was damaged, destroyed, or stolen during the covered period as a result of the social and civil unrest during 2020; and is not fully compensated for by— insurance; private donation or loan; a loan or grant from a State, general local government, Indian Tribe, or an insular area; a disaster loan from the Small Business Administration; or any other means. Only to the extent provided in paragraph (1)(B), a business recovery grant may be used by a grantee or subgrantee, at the discretion of the grantee or subgrantee, for business development and economic support activities allowed under section 105(a)(17) of the Housing and Community Development Act of 1974 ( 42 U.S.C. 5305(a)(17) ), if such assistance is appropriate to carry out an economic development project (that shall minimize, to the extent practicable, displacement of existing businesses and jobs in neighborhoods) that— creates or retains jobs for low- and moderate-income persons; prevents or eliminates slums and blight; meet urgent needs; creates or retains businesses owned by community residents; assists businesses that provide goods or services needed by, and affordable to, low- and moderate-income residents; or provides technical assistance to promote any of the activities under subparagraphs
(A)through (E). The Secretary shall require that in any case in which amounts from a business recovery grant will be used for real property renovation, the eligible entity involved shall provide documentation to demonstrate unmet need and damages as a result of social and civil unrest during 2020 to the satisfaction of the Secretary, using data available from the Federal Government or other publicly available sources, including State property damage claims and estimates, private insurance policy claims and estimates, and other cost estimates from local agencies in residential and commercial areas.
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Sec. 5
Civil unrest business recovery grants for financial recovery and business development
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