Sec. 2. Loan forgiveness for businesses located in major disaster areas
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In this section: The term Administrator means the Administrator of the Small Business Administration. The term covered area means an area for which the President declared a major disaster under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act ( 42 U.S.C. 5170 ) related to Hurricane Laura or Hurricane Sally. The term covered entity means any entity— the principal place of business of which is located in a covered area; and that received a covered loan.
The term covered loan means a loan made under— section 7(a)(36) of the Small Business Act ( 15 U.S.C. 636(a)(36) ); or section 7(b)(2) of the Small Business Act ( 15 U.S.C. 636(b)(2) ) related to COVID–19. Notwithstanding section 1106 of the CARES Act ( 15 U.S.C. 9005 ), a covered entity shall receive forgiveness of indebtedness on a covered loan in an amount equal to the covered loan amount if the covered entity submits to the lender of the covered loan a one-page online or paper form, to be established by the Administrator not later than 7 days after the date of enactment of this Act, that attests that the covered entity used the covered loan proceeds for eligible activities as described in paragraph (a)(36) or (b)(2) of section 7 of the Small Business Act ( 15 U.S.C. 636 ), as applicable.
The Administrator may review and audit covered loans for which forgiveness is provided to covered entities under paragraph
(1)using the same process used for loans made under section 7(a)(36) of the Small Business Act ( 15 U.S.C. 636(a)(36) ). For purposes of the Internal Revenue Code of 1986— any amount which (but for this paragraph) would be includible in gross income of the covered entity by reason of forgiveness described in paragraph
(1)shall be excluded from gross income; and no deduction shall be denied or reduced, no tax attribute shall be reduced, and no basis increase shall be denied, by reason of the exclusion from gross income provided by subparagraph (A). Notwithstanding paragraph
(6)of section 1110(e) of the CARES Act ( 15 U.S.C. 9009(e) ), with respect to a covered entity that received an advance grant under such section 1110(e), the advance amount shall not be reduced from the loan forgiveness amount for a loan for payroll costs made to the covered entity under section 7(a)(36) of the Small Business Act ( 15 U.S.C. 636(a)(36) ). This Act shall apply with respect to covered loans and advance grants under section 1110(e) of the CARES Act ( 15 U.S.C. 9009(e) ) made to a covered entity before, on, or after the date of enactment of this Act.
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Sec. 2
Loan forgiveness for businesses located in major disaster areas
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