Sec. 233. Grants from Fund
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Except as provided in subsection (c)(3) and in accordance with subsection (c)(2)(E), the Administrator shall make covered grants in the order in which applications are received by the Administrator. A border business applying for a covered grant shall make a good faith certification that— the covered grant is necessary to support the operations of the border business, which were adversely affected by the border travel restrictions imposed by the Federal Government in response to the COVID–19 pandemic; the border business does not have a pending application for, and has not received, a grant under— section 324 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act ( 15 U.S.C. 9009a ); or section 5003 of the American Rescue Plan Act of 2021 ( 15 U.S.C. 9009c ); and contains any other information that the Administrator may require.
Subject to section 231(7)(A)(i), the Administrator shall use tax records, and may, in addition, use other reliable sources such as certified accounting statements, with respect to an applicant for a covered grant to determine— the eligibility of the applicant for that covered grant; and the amount of that covered grant to the applicant. Not later than 60 days after the date of enactment of this Act, the Administrator shall begin accepting applications for covered grants. The aggregate amount of covered grants made to a border business and any affiliated businesses of the border business shall not exceed $350,000.
Except as provided in this subsection, the amount of a covered grant made to a border business shall be equal to the difference between— the pandemic-related revenue loss of the border business; and the amount equal to the product obtained by multiplying 3 by the average monthly gross receipts of the border business in 2019; or for a border business that did not have gross receipts in 2019, because the border business began operating between January 1, 2020 and February 29, 2020 or due to other factors identified by the Administrator, an alternative amount based on a formula to be determined by the Administrator.
A border business may not receive a covered grant in an amount that is greater than— the amount equal to the product obtained by multiplying 6 by the average monthly gross receipts of the border business in 2019; or if the border business was not in operation for the entirety of 2019, if the gross receipts of the border business during 2019 were reduced due to other factors identified by the Administrator, or if the border business opened during the period beginning on January 1, 2020 and ending on February 29, 2020, an amount determined under a formula established by the Administrator.
The Administrator may establish a minimum amount of a covered grant in an amount that is not more than $10,000. Any amount of a covered grant to a border business based on estimated receipts that is greater than the actual gross receipts of the border business in 2020 shall be returned to the Administrator, who may use those returned funds to make additional covered grants. The Administrator shall ensure that— not less than one-third of amounts made available to carry out this subtitle is used to make covered grants to border businesses located along the international border between the United States and Mexico, including colonias; and not less than one-third of amounts made available to carry out this subtitle is used to make covered grants to border businesses located along the international border between the United States and Canada.
If the Administrator determines that the amounts made available to carry out this subtitle are insufficient to make covered grants to each border business in the amount provided under paragraphs
(1)and (2), the Administrator shall, in a manner that maintains the minimum allocation requirements under paragraph (2)(E)— make covered grants with the available amounts— such that the amount of the covered grant that each border business would have otherwise received under those paragraphs is reduced by an equal percentage; by establishing a maximum amount for a covered grant made under this clause to ensure that smaller border businesses still receive covered grants in the amounts provided under those paragraphs; or by providing covered grants in the amounts provided under those paragraphs below a certain threshold (as the Administrator may establish) and reducing covered grants above that threshold by an equal percentage; and in a manner that complies with clause (i), make covered grants to each border business that submits an application for a covered grant during the 21-day period beginning on the date on which the Administrator begins accepting those applications. Nothing in subparagraph
(A)shall prevent the Administrator from— reserving funding for applicants that may be determined to be eligible for a covered grant upon reconsideration; or making partial awards to border businesses on a preliminary basis until the amount of funding required to fund covered grants to all border businesses that submit applications is established, upon the completion of the reconsideration process. A border business may use amounts received under a covered grant for the following expenses incurred during the covered period as a direct result of, or during, the COVID–19 pandemic, including logistical expenses associated with border closures: Payroll costs. Payments to independent contractors, as reported on Form 1099-MISC, except that each payment under this paragraph shall be in an amount that is not more than $100,000. Scheduled payments of interest or principal on any covered mortgage obligation (which may not include any prepayment of principal on a covered mortgage obligation). Payments on any covered rent obligation and common area maintenance charges under a lease agreement. Covered utility payments. Maintenance expenses. Covered worker protection expenditures. Supplies, including protective equipment and cleaning materials. Expenses that were within the scope of the normal business practice of the border business before the covered period. Covered supplier costs. Operational expenses. Paid sick leave. Costs associated with resuming or scaling up business operations after COVID–19 pandemic-related border travel restrictions have been lifted. Workforce training or retraining expenses. Any other expenses that the Administrator determines to be essential to maintaining the border business. If a border business that receives a covered grant fails to use all of the amounts received under the covered grant on or before the last day of the covered period or permanently ceases operations on or before the last day of the covered period, the border business shall return to the Treasury any funds that the border business did not use for the allowable expenses under subsection (d).
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