Sec. 204. Eligibility of certain organizations for loans under the Paycheck Protection Program
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Section 7(a)(36) of the Small Business Act ( 15 U.S.C. 636(a)(36) )— in subparagraph (A)— in clause (vii), by inserting covered before nonprofit ; in clause (viii)(II)— in item (dd), by striking or at the end; in item (ee), by adding or at the end; and by adding at the end the following: any compensation of an employee who is a registered lobbyist under the Lobbying Disclosure Act of 1995 ( 2 U.S.C. 1601 et seq.); ; by amending clause
(ix)to read as follows: the term covered organization means— an organization described in section 501(c) of the Internal Revenue Code of 1986 and exempt from tax under section 501(a) of such Code that is not a covered nonprofit organization; an entity created by a State or local government that derives the majority of its operating budget from the production of live events; or a destination marketing organization; ; in clause (xi)(IV), by striking and at the end; in clause (xii), by striking the period at the end and inserting a semicolon; and by adding at the end the following: the term housing cooperative means a cooperative housing corporation (as defined in section 216(b) of the Internal Revenue Code of 1986); and the term destination marketing organization means a nonprofit entity that is an organization described in section 501(c)(6) of the Internal Revenue Code of 1986 and exempt from tax under section 501(a) of such Code, a State, or a political subdivision of a State (including any instrumentality of such entities) engaged in marketing and promoting communities and facilities to businesses and leisure travelers through a range of activities, including— assisting with the location of meeting and convention sites; providing travel information on area attractions, lodging accommodations, and restaurants; providing maps; and organizing group tours of local historical, recreational, and cultural attractions. ; and in subparagraph (D)— in clause (i)— by inserting covered before nonprofit organization each place it appears; and by striking veterans organization each place it appears and inserting housing cooperative, covered organization ; in clause (iii)— by amending the clause heading to read as follows: ; Requirements for restaurants and certain news organizations by striking During the covered period, any business concern that employs and inserting the following: Any business concern or other organization— that, during the covered period, employs ; in subclause (I), as so designated, by striking the period at the end and inserting a semicolon; and by adding at the end the following: that— was not eligible to receive a covered loan the day before the date of enactment of this subclause, is assigned a North American Industry Classification System code beginning with 511110, 515112, or 515120, and an individual physical location of the business concern at the time of disbursal does not exceed the size standard established by the Administrator for the applicable code shall, notwithstanding clause (x), be eligible to receive a covered loan for expenses associated with an individual physical location of that business concern to support the continued provision of local news, information, content, or emergency information, and, at the time of disbursal, the individual physical location; or was not eligible to receive a covered loan the day before the date of enactment of this subclause, has a trade or business that falls under a North American Industry Classification System code beginning with 5151 as a public broadcast entity (as defined in section 397(11) of the Communications Act of 1934 ( 47 U.S.C. 397(11) )), and is a covered nonprofit organization or another organization otherwise subject to section 511(a)(2) of the Internal Revenue Code of 1986, shall be eligible to receive a covered loan for expenses to support the continued provision of local news, information, content, or emergency information by such entity; or that was not eligible to receive a covered loan the day before the date of enactment of this subclause, is assigned a North American Industry Classification System code of 519130, is identified as a Internet-only news publisher or Internet-only periodical publisher, and is engaged in the collection and distribution of local or regional and national news and information shall be eligible to receive a covered loan for expenses to support the continued provision of news, information, content, or emergency information. ; in clause (iv)— in subclause (II), by striking and at the end; in subclause (III), by striking the period at the end and inserting ; and ; and by adding at the end the following: an individual physical location of a business concern described in clause (iii)(II), if such concern does not pay, distribute, or otherwise provide any portion of the covered loan to any other entity other than the individual physical location that is the intended recipient of the covered loan. ; in clause (v), by striking nonprofit organization, veterans organization, and inserting covered organization, covered nonprofit organization, housing cooperative, ; in clause (vi), by striking nonprofit organization and a veterans organization and inserting covered organization, a covered nonprofit organization, and a housing cooperative ; and by adding at the end the following: During the covered period, a covered organization described in clause
(i)may only receive a covered loan if— the covered organization does not receive more than 10 percent of its receipts from lobbying activities; the lobbying activities of the covered organization do not comprise more than 10 percent of the total activities of the covered organization; and with respect to a covered organization described in section 501(c)(4) of the Internal Revenue Code of 1986 that is exempt from taxation under subsection
(a)of such section, such covered organization has not made and will not make a contribution, expenditure, independent expenditure, or electioneering communication within the meaning of the Federal Election Campaign Act of 1971 ( 52 U.S.C. 30101 et seq.), and has not undertaken and will not undertake similar campaign finance activities in State and local elections, during the election cycle which ends on the date of the general election in calendar year 2020. During the covered period, a covered nonprofit organization that employs more than the maximum number of employees allowed under clause
(i)shall be eligible to receive a covered loan if the covered nonprofit organization has had a significant loss in revenue (as defined in subparagraph (B)(ii)(I)(ee)). During the covered period, a covered organization that employs more than the maximum number of employees allowed under clause
(i)shall be eligible to receive a covered loan if the covered organization— meets the requirements of items (aa), (bb), and
(cc)of subclause (I); and has had a significant loss in revenue (as defined in subparagraph (B)(ii)(I)(ee)). During the covered period, any covered organization that is a critical access hospital (as defined in section 1861(mm) of the Social Security Act ( 42 U.S.C. 1395x(mm) )) shall be eligible to receive a covered loan, regardless of the status of such a hospital as a debtor in a case under chapter 11 of title 11, United States Code, or the status of any debts owed by such a hospital to the Federal Government. With respect to an individual physical location of a business concern described in item
(aa)of clause (iii)(II), each such location shall be treated as an independent, nonaffiliated entity for purposes of this paragraph. Any individual physical location of a business concern described in item
(aa)of clause (iii)(II) that is a franchise or affiliate of, or owned or controlled by a parent company, investment company, or the management thereof, shall demonstrate, upon request of the Administrator, the need for a covered loan to support the continued provision of local news, information, content, or emergency information, and, at the time of disbursal, the individual physical location. A business concern, or a parent company, investment company, or management company of 1 or more physical locations of a business concern, described in item
(aa)of clause (iii)(II) may not use any portion of the proceeds of a covered loan for any expense that is not directly related to the individual physical location described in subclause
(I)of this clause with respect to which the covered loan was made. For an organization described in item
(bb)of clause (iii)(II), during the covered period, the provisions applicable to affiliations under section 121.103 of title 13, Code of Federal Regulations, or any successor regulation, the provisions of section 120.110(j) of title 13, Code of Federal Regulations, or any successor regulation, and any otherwise applicable covered loan limitations based on number of employees or loss in revenue are waived with respect to determining eligibility for a covered loan under such item. .
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Sec. 204
Eligibility of certain organizations for loans under the Paycheck Protection Program
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