Sec. 406. Modifications to economic injury disaster loans
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With respect to a loan made under section 7(b)(2) of the Small Business Act ( 15 U.S.C. 636(b)(2) ) to a borrower adversely impacted by COVID–19 during the period beginning on the date of enactment of this Act and ending on December 31, 2020— the borrower shall be eligible for a loan in an amount equal to 6 months of working capital if the borrower otherwise meets the underwriting standards established by the Administration; and the Administrator— shall not impose a maximum loan amount limit that is lower than $2,000,000; and shall not disqualify any applicant for such a loan due to the criminal history or arrest record of the applicant, except in the case of an applicant that, during the 5-year period preceding the date on which the applicant submits an application, has been convicted— of a felony offense involving fraud, bribery, or embezzlement in any State or Federal court; or in connection with a false statement made in— a loan application; or an application for Federal financial assistance.
A recipient of a loan made under section 7(b)(2) of the Small Business Act ( 15 U.S.C. 636(b)(2) ) to a borrower adversely impacted by COVID–19 during the period beginning on January 31, 2020, and ending on the date of enactment of this Act may submit to the Administrator a request for an additional amount to increase in the amount of that loan, provided that the aggregate amount received under such section by the recipient during that period shall be not more than the lesser of— an amount equal to 6 months of working capital for the recipient; and $2,000,000; and In considering a request submitted under paragraph (1), the Administrator— may not recalculate the economic injury or creditworthiness of the borrower; and shall issue a determination based on the documentation submitted by the borrower for the initial loan under such section 7(b)(2), any other new information voluntarily provided by the borrower, and any information obtained to prevent fraud or abuse.
If the Administrator of the Small Business Administration requires a borrower making a request under paragraph
(1)to provide additional documentation, the Administrator shall— publish those documentation requirements on the website of the Administration not later than 7 days after the date of enactment of this Act; and proactively provide those requirements to any such borrower that received a loan described in paragraph (1).
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Sec. 406
Modifications to economic injury disaster loans
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