Sec. 1102. 7(a) loan program
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(a)loan program In this section, the term covered period means the period beginning on March 1, 2020 and ending on December 31, 2020. During the covered period, any business concern, private nonprofit organization, or public nonprofit organization which employs not more than 500 employees shall be eligible to receive a loan made under section 7(a) of the Small Business Act ( 15 U.S.C. 636(a) ), in addition to small business concerns. Paragraph
(1)shall not apply to a nonprofit entity eligible for payment for items or services furnished under a State plan under title XIX of the Social Security Act ( 42 U.S.C. 1396 et seq.) or under a waiver of such plan. During the covered period, with respect to any loan guaranteed under section 7(a) of the Small Business Act ( 15 U.S.C. 636(a) ) for which an application is approved or pending approval on or after the date of enactment of this Act, the maximum loan amount shall be the lesser of— the product obtained by multiplying— the average total monthly payments by the applicant for payroll, mortgage payments, rent payments, and payments on any other debt obligations incurred during the 1 year period before the date on which the loan is made, except that, in the case of an applicant that is seasonal employer, as determined by the Administrator, the average total monthly payments for payroll shall be for the period beginning March 1, 2019 and ending June 30, 2019; by 4; or $10,000,000. During the covered period, a recipient of a loan made under section 7(a) of the Small Business Act ( 15 U.S.C. 636(a) ) (including a recipient of assistance under the Community Advantage Pilot Program of the Administration) may, in addition to the allowable uses of such a loan, use the proceeds of the loan for— 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; employee salaries; mortgage payments; rent (including rent under a lease agreement); utilities; and any other debt obligations that were incurred before the covered period. For purposes of making loans for the purposes described in paragraph (1), a lender under section 7(a) of the Small Business Act ( 15 U.S.C. 636(a) ) shall be considered to have delegated authority to make and approve loans under such section 7(a) based on an evaluation of the eligibility of the borrower. In evaluating the eligibility of a borrower for a loan under section 7(a) of the Small Business Act ( 15 U.S.C. 636(a) ) with the terms described in this subsection and subsection (c), a lender shall only consider whether the borrower— was in operation on March 1, 2020; and had employees for whom the borrower paid salaries and payroll taxes. A borrower that receives assistance under section 7(b)(2) of the Small Business Act ( 15 U.S.C. 636(b)(2) ) related to COVID–19 for purposes of paying payroll and providing payroll support shall not be eligible for a loan described in paragraph
(1)for the same purpose. During the covered period, with respect to each loan guaranteed under section 7(a) of the Small Business Act ( 15 U.S.C. 636(a) )— in lieu of the fee otherwise applicable under section 7(a)(23)(A) of the Small Business Act ( 15 U.S.C. 636(a)(23)(A) ), the Administrator shall collect no fee or reduce fees to the maximum extent possible; and for which the application is approved on or after the date of enactment of this Act, the Administrator shall, in lieu of the fee otherwise applicable under section 7(a)(18)(A) of the Small Business Act ( 15 U.S.C. 636(a)(18)(A) ), collect no fee or reduce fees to the maximum extent possible. Section 7(a)(2)(A) of the Small Business Act ( 15 U.S.C. 636(a)(2)(A) ) is amended by striking equal to— and all that follows through the end of the subparagraph and inserting equal to 100 percent of the balance of the financing outstanding at the time of disbursement of the loan. . Effective on January 1, 2021, section 7(a)(2)(A) of the Small Business Act ( 15 U.S.C. 636(a)(2)(A) ) is amended by striking equal to 100 percent of the balance of financing outstanding at the time of disbursement of the loan and inserting equal to— 75 percent of the balance of the financing outstanding at the time of disbursement of the loan, if such balance exceeds $150,000; or 85 percent of the balance of the financing outstanding at the time of disbursement of the loan, if such balance is less than or equal to $150,000. . The term eligible borrower means— a small business concern; or an organization made eligible by subsection
(b)of this section for a loan under section 7(a) of the Small Business Act ( 15 U.S.C. 636(a) ). In this subsection, the term impacted borrower means an eligible borrower that— is in operation on March 1, 2020; and has an application for a loan made under section 7(a) of the Small Business Act ( 15 U.S.C. 636(a) ) that is approved or pending approval on or after the date of enactment of this Act. For purposes of this subsection, an impacted borrower is presumed to have been adversely impacted by COVID–19. During the covered period, the Administrator shall— consider each eligible borrower that applies for a loan under section 7(a) of the Small Business Act ( 15 U.S.C. 636(a) ) to be an impacted borrower; and require lenders under such section 7(a) to provide complete payment deferment relief for impacted borrowers with loans guaranteed under such section 7(a) for a period of not more than 1 year. During the covered period, with respect to a loan made under 7(a) of the Small Business Act ( 15 U.S.C. 636(a) ) that is sold on the secondary market, if an investor declines to approve a deferral requested by a lender under paragraph (2), the Administrator shall exercise the authority to purchase the loan so that the impacted borrower may receive a deferral for a period of not more than 1 year. Not later than 30 days after the date of enactment of this Act, the Administrator shall provide guidance to lenders under section 7(a) of the Small Business Act ( 15 U.S.C. 636(a) ) on the deferment process described in this subsection. During the covered period— there shall be no limitation on the commitments for general business loans authorized under section 7(a) of the Small Business Act ( 15 U.S.C. 636(a) ); and the amount authorized for commitments for such loans under the heading under the heading business loans program account under title V of the Consolidated Appropriations Act, 2020 ( Small business administration Public Law 116–93 ; 133 Stat. 2475) shall not apply. Section 7(a)(31)(D) of the Small Business Act ( 15 U.S.C. 636(a)(31)(D) ) is amended by striking $350,000 and inserting $1,000,000 . Effective on January 1, 2021, section 7(a)(31)(D) of the Small Business Act ( 15 U.S.C. 636(a)(31)(D) ) is amended by striking $1,000,000 and inserting $350,000 .
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