Sec. 5. Grants from Fund
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Except as provided in subsection (c)(4), the Administrator shall make grants under this section to eligible entities in the order in which applications are received by the Administrator. An eligible entity applying for a grant under this section shall make a good faith certification that— the uncertainty of current economic conditions makes necessary the request for the grant to support the ongoing operations of the eligible entity; the eligible entity 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.
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 grant to determine— the eligibility of the applicant for that grant; and the amount of that grant to the applicant. Not later than 90 days after the date of enactment of this Act, the Administrator shall begin accepting applications for grants under this section. Subject to paragraph (4), the amount of a grant under this section made to an eligible entity shall be determined based on a formula to be established by the Administrator.
Any formula established by the Administrator to determine grant amounts under paragraph
(1)shall reduce awards by amounts a recipient has received under— section 1110 of the Coronavirus Aid, Relief, and Economic Security Act ( 15 U.S.C. 9009 ); section 331 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act ( 15 U.S.C. 9009b ); or section 5002 of the American Rescue Plan Act of 2021 ( 15 U.S.C. 9009 note). When calculating the revenue of an entity for purposes of determining the eligibility of the entity for a grant under this section or the amount of such a grant, the Administrator shall treat as revenue— any amounts received from a covered loan made under paragraph
(36)or
(37)of section 7(a) of the Small Business Act ( 15 U.S.C. 636(a) ), in 2020 or 2021; and the amount by which the total of all remunerative payments made to an individual, including any annual salary paid to an employee, in 2020, or 2021, exceeds $250,000. The Administrator may determine the types of payments and individuals to which subparagraph (A)(ii) applies. If the Administrator determines that the amounts made available to carry out this section are insufficient to make grants to each eligible entity in the amount provided under paragraph (1), the Administrator shall distribute grants to all eligible applicants that submit an application during the 21-day period beginning on the date on which the Administrator begins accepting those applications on either— a pro rata basis; or based on a formula to be determined by the Administrator. Nothing in subparagraph
(A)shall prevent the Administrator from— reserving funding for applicants that may be determined to be eligible for a grant upon reconsideration; or making partial awards to eligible entities on a preliminary basis until the amount of funding required to fund grants to all eligible entities that submit applications is established upon the completion of the reconsideration process. During the covered period, an eligible entity that receives a grant under this section may use amounts received for the following expenses incurred as a direct result of, or during, the COVID–19 pandemic: 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 eligible entity before the covered period. Covered supplier costs. Operational expenses. Paid sick leave. Any other expenses that the Administrator determines to be essential to maintaining the eligible entity. If an eligible entity that receives a grant under this section fails to use all of the amounts received under the 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 eligible entity shall return to the Treasury any funds that the eligible entity did not use for the allowable expenses under subsection (d).
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