Sec. 202. Supplemental covered loans for certain business concerns
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Section 7(a)(36)(B) of the Small Business Act ( 15 U.S.C. 636(a)(36)(B) ) is amended— by striking Except and inserting the following: Except ; and by adding at the end the following: In this clause— the terms exchange , issuer , and security have the meanings given those terms in section 3(a) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78c(a) ); the term gross receipts means gross receipts within the meaning of section 448(c) of the Internal Revenue Code of 1986; the term national securities exchange means an exchange registered as a national securities exchange under section 6 of the Securities Exchange Act of 1934 ( 15 U.S.C. 78f ); the term publicly traded entity means an issuer, the securities of which are listed on a national securities exchange; the term significant loss in revenue means that, due to the impact of COVID–19— the gross receipts of the eligible recipient during the first, second, or third calendar quarter of 2020 are less than 75 percent of the gross receipts of the eligible recipient during the same calendar quarter in 2019; if the eligible recipient was not in business on April 1, 2019, the gross receipts of the eligible recipient during any 2-month period during the first 3 calendar quarters of 2020 are less than 75 percent of the amount of the gross receipts of the eligible recipient during any prior 2-month period during the first 3 calendar quarters of 2020; or if the eligible recipient is seasonal employer, as determined by the Administrator, the gross receipts of the eligible recipient during any 2-month period during the first 3 calendar quarters of 2020 are less than 75 percent of the amount of the gross receipts of the eligible recipient during the same 2-month period in 2019; and the term smaller concern means an eligible recipient that— has not more than 200 employees; operates under a sole proprietorship or as an independent contractor; or is an eligible self-employed individual.
Except as otherwise provided in this clause, for an eligible recipient that has received a covered loan under clause (i), the Administrator may guarantee a single supplemental covered loan to the eligible recipient under the same terms, conditions, and processes as a covered loan made under clause (i). An eligible recipient may apply for a supplemental covered loan under this clause with the lender that made the covered loan under clause
(i)to the eligible recipient or another lender. A supplemental covered loan under this clause— may only be made to an eligible recipient that is a smaller concern that has had a significant loss in revenue and has used, or is expending funds at a rate that the eligible recipient will use on or before the expected date of the disbursement of the supplemental covered loan under this clause, the full amount of the covered loan received under clause (i); and may not be made to a publicly traded or foreign owned entity as described in clause
(x)of subparagraph (D). For purposes of a supplemental covered loan under this clause, subparagraph (D)(iii)(I) shall be applied by substituting not more than 200 employees per physical location for not more than 500 employees per physical location . For an eligible recipient with more than 1 physical location, the total amount of all supplemental covered loans made under this clause to the eligible recipient shall not be more than $2,000,000. The maximum amount of a supplemental covered loan under this clause is the lesser of— the product obtained by multiplying— the average total monthly payments for payroll costs by the eligible recipient used to determine the maximum amount of the covered loan under clause
(i)made to the eligible recipient under this paragraph; by 2.5; or $2,000,000. An eligible recipient applying for a supplemental covered loan under this clause shall not be required to make the certification described in clause
(iii)or
(iv)of subparagraph (G). For a supplemental covered loan under this clause of not more than $50,000, the reimbursement under subparagraph (P)(i)(I) by the Administrator shall not be less than $2,500. .
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