Sec. 405. Lifeline funding for small business continuity, adaptation, and resiliency
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Section 1110 of the CARES Act ( 15 U.S.C. 9009 ), as amended by section 404, is further amended by inserting after subsection
(i)(as added by such section) the following new subsection: In this subsection: The term agricultural enterprise has the meaning given the term in section 18(b) of the Small Business Act ( 15 U.S.C. 647(b) ). The term covered entity — means an eligible entity described in subsection
(b)of this section, if such eligible entity— has not more than 50 employees; and has suffered an economic loss of not less than 30 percent; and except with respect to an entity included under section 123.300(c) of title 13, Code of Federal Regulations, or any successor regulation, does not include an agricultural enterprise. The term economic loss means, with respect to a covered entity, the amount by which the gross receipts of the covered entity declined during an 8-week period between March 2, 2020, and December 31, 2020 (as determined by the covered entity), relative to a comparable 8-week period immediately preceding March 2, 2020, or during 2019 (as determined by the covered entity). The term economically disadvantaged individual means an economically disadvantaged individual under section 124.104 of title 13, Code of Federal Regulations, or any successor regulation. The term low-income community has the meaning given the term in section 45D(e) of the Internal Revenue Code of 1986. The term remote recreational enterprise means a covered entity that was in operation on or before March 1, 2020, that can document an economic loss caused by the closure of the United States and Canadian border that restricted the ability of American customers to access the location of the covered entity. The term small business concern has the meaning given the term under section 3(a) of the Small Business Act ( 15 U.S.C. 632(a) ). The term socially disadvantaged individual means a socially disadvantaged individual under section 124.103 of title 13, Code of Federal Regulations, or any successor regulation. During the covered period, a covered entity that applies for a loan under section 7(b)(2) of the Small Business Act ( 15 U.S.C. 636(b)(2) ) may request that the Administrator provide funding for the purposes described in paragraph (6). With respect to each request submitted by an entity under paragraph (2), the Administrator shall— not later than 14 days after the date on which the Administrator receives the request, verify whether the entity is a covered entity; and if the Administrator verifies that the entity is a covered entity under clause (i), and subject to paragraph (8), disburse the funding requested by the covered entity not later than 7 days after the date on which the Administrator completes the verification. Subject to paragraph (8), the Administrator shall process and approve requests submitted under paragraph
(2)in the order the Administrator receives the requests. The amount of funding provided to a covered entity that submits a request under paragraph
(2)shall be in an amount that is the lesser of— the amount of working capital needed by the covered entity for the 180-day period beginning on the date on which the covered entity would receive the funding, as determined by the Administrator using a methodology that is identical to the methodology used by the Administrator to determine working capital needs with respect to an application for a loan submitted under section 7(b)(2) of the Small Business Act ( 15 U.S.C. 636(b)(2) ); or $50,000. A covered entity that receives funding pursuant to a request submitted under paragraph
(2)shall be entitled to receive the full amount of that funding, as determined under subparagraph (A), without regard to— if the applicable loan for which the covered entity has applied under section 7(b)(2) of the Small Business Act ( 15 U.S.C. 636(b)(2) ) is approved, the amount of the loan; whether the covered entity accepts the offer of the Administrator with respect to an approved loan described in clause (i); or whether the covered entity has previously received any amounts under subsection (e). A covered entity that receives funding under this subsection— may use the funding— for any purpose for which a loan received under section 7(b)(2) of the Small Business Act ( 15 U.S.C. 636(b)(2) ) may be used; for working capital needs, including investments to implement adaptive changes or resiliency strategies to help the eligible entity maintain business continuity during the COVID–19 pandemic; or to repay any unpaid amount of— a loan received under subsection (a)(36) or (b)(2) of section 7 of the Small Business Act ( 15 U.S.C. 636 ); or mortgage interest; and may not use the funding to pay any loan debt, except as provided in subparagraph (A)(iii). In addition to any other restriction imposed under this subsection, any eligibility restriction applicable to a loan made under section 7(b)(2) of the Small Business Act ( 15 U.S.C. 636(b)(2) ), including any restriction under section 123.300 or 123.301 of title 13, Code of Federal Regulations, or any successor regulation, shall apply with respect to funding provided under this subsection. During the 56-day period beginning on the date of enactment of this subsection, the Administrator may approve a request for funding under this subsection only if the request is submitted by— a covered entity located in a low-income community; a covered entity owned or controlled by a veteran or a member of the Armed Forces; a covered entity owned or controlled by an economically disadvantaged individual or a socially disadvantaged individual; or a remote recreational enterprise. In carrying out this subsection, the Administrator may rely on loan officers and other personnel of the Office of Disaster Assistance of the Administration and other resources of the Administration, including contractors of the Administration. Any covered entity that, during the period beginning on January 1, 2020, and ending on the day before the date of enactment of this subsection, applied for a loan under section 7(b)(2) of the Small Business Act ( 15 U.S.C. 636(b)(2) ) may submit to the Administrator a request under paragraph
(2)with respect to that loan. There are authorized to be appropriated to the Administrator $40,000,000,000 to carry out this subsection, which shall remain available through December 31, 2020, of which— $20,00,000,000 is authorized to be appropriated to provide funding to covered entities described in paragraph (8); and $20,000,000 is authorized to be appropriated to the Inspector General of the Administration to prevent waste, fraud, and abuse with respect to funding provided under this subsection. .
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Sec. 405
Lifeline funding for small business continuity, adaptation, and resiliency
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