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Code · BILL · 116th Congress · S. 4818 (Introduced in Senate) — To provide assistance to small businesses affected by COVID–19, and for other purposes. · Sec. 206

Sec. 206. Allowable uses of covered loans; forgiveness

640 words·~3 min read·/bill/116/s/4818/is/section-206

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Section 7(a)(36) of the Small Business Act ( 15 U.S.C. 636(a)(36) ) is amended— in subparagraph (F)(i)— in subclause (VI), by striking and at the end; in subclause (VII), by striking the period at the end and inserting a semicolon; and by adding at the end the following: costs related to the provision of personal protective equipment for employees or other equipment or supplies determined by the employer to be necessary to protect the health and safety of employees and the general public; payments for inventory, raw materials, or supplies; and costs related to property damage, vandalism, or looting due to public disturbances that occurred during 2020 that were not covered by insurance or other compensation. ; and in subparagraph (G)— in the subparagraph heading, by striking and all that follows through Borrower requirements eligible recipient applying and inserting ;
Borrower certification requirements .—An eligible recipient applying by redesignating subclauses
(I)through
(IV)as clauses
(i)through (iv), respectively, and adjusting the margins accordingly; and in clause (ii), as so redesignated, by striking to retain workers and all that follows through utility payments and inserting for an allowable use described in subparagraph
(F). Section 1106(a)(7) of the CARES Act ( 15 U.S.C. 9005(a)(7) ) is amended— in subparagraph (C), by striking and at the end; in subparagraph (D), by striking and at the end; and by adding at the end the following: interest on any other debt obligations that were incurred before the covered period; any amount that was a loan made under section 7(b)(2) of the Small Business Act ( 15 U.S.C. 636(b)(2) ) that was refinanced as part of a covered loan and authorized by section 7(a)(36)(F)(iv) of the such Act; payments made for the provision of personal protective equipment for employees or other equipment or supplies determined by the employer to be necessary to protect the health and safety of employees and the general public; payments made for inventory, raw materials, or supplies; and payments related to property damage, vandalism, or looting due to public disturbances that occurred during 2020 that were not covered by insurance or other compensation; and . Section 1106(b) of the CARES Act ( 15 U.S.C. 9005(b) ), is amended by adding at the end the following: Any payment of interest on any other debt obligations that were incurred before the covered period. Any amount that was a loan made under section 7(b)(2) of the Small Business Act ( 15 U.S.C. 636(b)(2) ) that was refinanced as part of a covered loan and authorized by section 7(a)(36)(F)(iv) of such Act. Any payment made for the provision of personal protective equipment for employees or other equipment or supplies determined by the employer to be necessary to protect the health and safety of employees. Any payment made for inventory, raw materials, or supplies. Any payment related to property damage, vandalism, or looting due to public disturbances that occurred during 2020 that was not covered by insurance or other compensation. . Section 1106 of the CARES Act ( 15 U.S.C. 9005 ) is amended— in subsection (e), as amended by section 203— in paragraph (2), by striking payments on covered mortgage obligations, payments on covered lease obligations, and covered utility payments and inserting payments or amounts refinanced described in subsection
(b)(other than payroll costs) ; and in paragraph (3)(B), by striking , make interest payments and all that follows through or make covered utility payments and inserting , make payments described in subsection (b), or that was refinanced as part of a covered loan and authorized by section 7(a)(36)(F)(iv) of the Small Business Act ; and in subsection (h), by striking payments for payroll costs, payments on covered mortgage obligations, payments on covered lease obligations, or covered utility payments each place it appears and inserting payments or amounts refinanced described in subsection
(b).
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Sec. 206
Allowable uses of covered loans; forgiveness
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