Sec. 5. Rebuilding main street grant program
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Not later than 30 days after the date of enactment of this Act, the Secretary shall establish a program to provide grants to any eligible employer to help ensure that such employer remains in operation while its employees continue working reduced hours pursuant to a short-time compensation program. Any eligible employer seeking to receive a grant under this section shall submit an application to the Secretary at such time, in such manner, and containing such information as the Secretary may require. For each calendar quarter ending after the date on which the application has been approved for an eligible employer under subsection
(b)and ending before January 1, 2022, the Secretary shall provide a grant to such employer in an amount equal to the applicable percentage of the eligible costs paid or incurred by such employer for the preceding calendar quarter. For purposes of this subsection, the applicable percentage for any calendar quarter shall be the amount equal to— in the case of an eligible employer described in subclause
(I)of subsection (f)(1)(A)(i), 50 percent, as reduced (but not below zero) by 2 percentage points for each percentage point by which the reduction in gross receipts of the eligible employer for such quarter is less than 50 percent; or in the case of an eligible employer described in subclause
(II)of such subsection, 50 percent. With respect to any calendar quarter, the reduction in gross receipts for such quarter is the amount (expressed as a percentage) equal to the quotient of— gross receipts of the eligible employer for such quarter; and gross receipts of the eligible employer for the same calendar quarter during the preceding calendar year. In the case of an eligible employer which was not carrying on a trade or business (or, in the case of an organization exempt from taxation under section 501(a) of the Internal Revenue Code of 1986, which was not carrying on activities related to the purpose or function constituting the basis of the organization’s exemption under such section) during the same calendar quarter in the preceding calendar year, clause (i)(II) shall be applied by substituting the first calendar quarter of 2020 for the same calendar quarter during the preceding calendar year . A grant shall not be provided to an eligible employer for any calendar quarter in which such employer has been determined by a State or local government agency with appropriate jurisdiction over such employer to have failed to carry out its operations in compliance with any applicable State or local public health order or requirement and has provided notice to the Secretary of such failure to comply with such order or requirement. The cumulative amount of any grants which may be provided to an eligible employer under this section for all calendar quarters shall not exceed $300,000. For purposes of determining the amount of the grant to be provided for each calendar quarter under this subsection, an eligible employer shall provide the Secretary such information as is deemed necessary by the Secretary. Section 1106(d) of the CARES Act ( Public Law 116–136 ), as amended by section 3(b)(2) of the Paycheck Protection Program Flexibility Act of 2020 ( Public Law 116–142 ), is amended by adding at the end the following new paragraph: The amount of forgiveness of a covered loan made to an eligible recipient under this section shall not be reduced based on a reduction relating to salary and wages under paragraph
(3)if the eligible recipient elected to provide reduced work hours to full-time equivalent employees of the eligible recipient pursuant to a short term compensation program, as defined in section 3306(v) of the Internal Revenue Code of 1986, including any short-time compensation plan approved by a State pursuant to section 2109(b)(1). . Any expense paid by an eligible employer with proceeds from a loan made under section 7(a)(36) of the Small Business ( 15 U.S.C. 636(a)(36) ) shall not be eligible for reimbursement under the program established under this section. For purposes of this section— The term eligible employer means any entity (including any organization exempt from taxation under section 501(a) of the Internal Revenue Code of 1986)— for which the reduction in gross receipts (as determined under subsection (c)(2)(B)) for the most recent calendar quarter ending before the date on which such entity submitted an application under subsection
(b)is not less than 25 percent; or which— had less than 20 employees during the period described in clause
(i)of subparagraph (B); had less than $1,500,000 in annual gross receipts (as determined under clause
(ii)of such subparagraph); and as part of their application under subsection (b), has made a good faith certification that the uncertainty of current economic conditions makes necessary the grant request to support the ongoing operations of such entity; which has elected to provide reduced work hours to employees pursuant to a short-time compensation program; and which is not— a hedge fund or a private equity fund, as defined in section 13(h) of the Bank Holding Company Act of 1956 ( 12 U.S.C. 1851(h) ); a corporation the stock of which is publicly traded; or a publicly traded partnership (as defined in section 7704(b) of the Internal Revenue Code of 1986). The period described in this clause shall be, at the election of the entity— the period beginning on February 15, 2019, and ending on June 30, 2019; or the period beginning on January 1, 2020, and ending on February 29, 2020. For purposes of subparagraph (A)(i)(II)(bb), annual gross receipts shall be determined based on information provided for the most recent taxable year for which a tax return has been filed by the entity (including, in the case of an organization exempt from taxation under section 501(a) of the Internal Revenue Code of 1986, a return required under section 6033 of such Code). With respect to the taxable year described in subclause (I), in the case of an entity which was not carrying on a trade or business (or, in the case of an organization exempt from taxation under section 501(a) of the Internal Revenue Code of 1986, which was not carrying on activities related to the purpose or function constituting the basis of the organization’s exemption under such section) during the entirety of such taxable year, annual gross receipts shall be determined on an annualized basis. For purposes of subclause (I), in the case of an organization exempt from taxation under section 501(a) of the Internal Revenue Code of 1986 which is exempt from filing a return pursuant to section 6033(a) of such Code, such organization may submit to the Secretary (in such form and manner as is deemed appropriate by the Secretary) any information required to determine the annual gross receipts of such organization for purposes of subparagraph (A)(i)(II)(bb). All persons which are treated as a single employer under subsections
(a)and
(b)of section 52 of the Internal Revenue Code of 1986 shall be treated as a single eligible employer for purposes of this section. The term eligible costs means the payment or accrual, in the ordinary course of the eligible employer’s trade or business, of— any covered mortgage obligation, covered rent obligation, or covered utility payment; and any costs and expenses necessary to maintain, reopen, and reconfigure the operations of the eligible employer, including costs and expenses related to cleaning, equipment, and other similar expenditures, as defined by the Secretary through such regulations or other guidance as may be appropriate or necessary to carry out the purposes of this section. For purposes of subparagraph (A)(i), the term eligible costs shall not include the prepayment of any obligation for a period in excess of a month unless the payment for such period is customarily due in advance. For purposes of subparagraph (A)(i), the terms covered mortgage obligation , covered rent obligation , and covered utility payment shall each have the same meaning as when used in section 1106 of the CARES Act. The term Secretary means the Secretary of the Treasury or the Secretary's delegate. The term short-time compensation program has the same meaning given such term under section 3306(v) of the Internal Revenue Code of 1986, including any short-time compensation plan approved by a State pursuant to section 2109(b)(1) of the Relief for Workers Affected by Coronavirus Act (contained in subtitle A of title II of division A of the CARES Act ( Public Law 116–136 )). Beginning 90 days after the date of enactment of this Act, the Secretary shall submit a quarterly report to the Committees on Appropriations of the House of Representatives and the Senate, as well as the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate, regarding the operations of the grant program established under this section, including— information regarding the size and geographic location of eligible employers that have received grants; and demographic information with respect to the principal owners of such eligible employers. The Secretary, in coordination with the Secretary of Labor, the Secretary of Commerce, and the Administrator of the Small Business Administration, shall conduct a public awareness campaign, to be carried out through the Minority Business Development Agency of the Department of Commerce and women’s business centers (as described in section 29 of the Small Business Act ( 15 U.S.C. 656 )), to provide information and outreach to help underserved businesses participate in short-time compensation programs and the program established under this section. Out of any money in the Treasury not otherwise appropriated, there shall be appropriated such sums as are necessary to carry out the purposes of this section, to remain available until expended.
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Sec. 5
Rebuilding main street grant program
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