Sec. 1110. EMERGENCY EIDL GRANTS
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/statute-compilations/comps-15754/sec-1110A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
## SEC. 1110 EMERGENCY EIDL GRANTS **[**[15 U.S.C. 9009](/us/usc/t15/s9009)**]** ###
(a)Definitions In this section— ####
(1)the term “covered period” means the period beginning on January 31, 2020 and ending on December 31, 2021; and ####
(2)the term “eligible entity” means— #####
(A)a business with not more than 500 employees; #####
(B)any individual who operates under a sole proprietorship, with or without employees, or as an independent contractor; #####
(C)a cooperative with not more than 500 employees; #####
(D)an ESOP (as defined in section 3 of the Small Business Act (15 U.S.C. 632)) with not more than 500 employees; #####
(E)a tribal small business concern, as described in section 31(b)(2)(C) of the Small Business Act (15 U.S.C. 657a(b)(2)(C)), with not more than 500 employees; or #####
(F)an agricultural enterprise (as defined in section 18(b) of the Small Business Act (15 U.S.C. 647(b))2 with not more than 500 employees. 2So in law. Probably should include another close parenthesis. ###
(b)Eligible Entities During the covered period, in addition to small business concerns, private nonprofit organizations, and small agricultural cooperatives, an eligible entity shall be eligible for a loan made under section 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2)). ###
(c)Terms; Credit Elsewhere With respect to a loan made under section 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2)) in response to COVID-19 during the covered period, the Administrator shall waive— ####
(1)any rules related the personal guarantee on advances and loans of not more than $200,000 during the covered period for all applicants; ####
(2)the requirement that an applicant needs to be in business for the 1-year period before the disaster, except that no waiver may be made for a business that was not in operation on January 31, 2020; and ####
(3)the requirement in the flush matter following subparagraph
(E)of section 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2)), as so redesignated by subsection
(f)of this section, that an applicant be unable to obtain credit elsewhere. ###
(d)Approval and Ability to Repay for Small Dollar Loans With respect to a loan made under section 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2)) in response to COVID-19 during the covered period, the Administrator may— ####
(1)approve an applicant— #####
(A)based solely on the credit score of the applicant; or #####
(B)by using alternative appropriate methods to determine an applicant’s ability to repay; and ####
(2)use information from the Department of the Treasury to confirm that— #####
(A)an applicant is eligible to receive such a loan; or #####
(B)the information contained in an application for such a loan is accurate. ###
(e)Emergency Grant ####
(1)In general #####
(A)Advances During the covered period, an entity included for eligibility in subsection (b), including small business concerns, private nonprofit organizations, and small agricultural cooperatives, that applies for a loan under section 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2)) in response to COVID-19 may request that the Administrator provide an advance that is, subject to paragraph (3), in the amount requested by such applicant to such applicant . #####
(B)Timing With respect to each request submitted to the Administrator under subparagraph (A), the Administrator shall, not later than 21 days after the date on which the Administrator receives the request— ######
(i)verify whether the entity is an entity that is eligible for a loan made under section 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2)) during the covered period, as described in subsection (b); ######
(ii)if the Administrator, under clause (i), verifies that the entity submitting the request is an entity that is eligible, as described in that clause, provide the advance requested by the entity; and ######
(iii)with respect to an entity that the Administrator determines is not entitled to receive an advance under this subsection, provide the entity with a notification explaining why the Administrator reached that determination. ####
(2)Verification Before disbursing amounts under this subsection, the Administrator shall verify that the applicant is an eligible entity by accepting a self-certification from the applicant under penalty of perjury pursuant to section 1746 of title 28 United States Code. ####
(3)Amount The amount of an advance provided under this subsection shall be not more than $10,000. ####
(4)Use of funds An advance provided under this subsection may be used to address any allowable purpose for a loan made under section 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2)), including— #####
(A)providing paid sick leave to employees unable to work due to the direct effect of the COVID-19; #####
(B)maintaining payroll to retain employees during business disruptions or substantial slowdowns; #####
(C)meeting increased costs to obtain materials unavailable from the applicant’s original source due to interrupted supply chains; #####
(D)making rent or mortgage payments; and #####
(E)repaying obligations that cannot be met due to revenue losses. ####
(5)Repayment An applicant shall not be required to repay any amounts of an advance provided under this subsection, even if subsequently denied a loan under section 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2)). **[**Effective as if included in the CARES Act (P.L. 116-136), paragraph
(6)was repealed by section 333(c) of division N of Public Law 116–260.**]** ####
(7)Authorization of appropriations There is authorized to be appropriated to the Administration $40,000,000,000 to carry out this subsection. ####
(8)Termination The authority to carry out grants under this subsection shall terminate on December 31, 2021. ####
(9)Statute of limitations Notwithstanding any other provision of law, any criminal charge or civil enforcement action alleging that a borrower engaged in fraud with respect to the use of an advance received under this subsection shall be filed not later than 10 years after the offense was committed. ###
(f)Emergencies Involving Federal Primary Responsibility Qualifying for SBA Assistance Section 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2)) is amended— ####
(1)in subparagraph (A), by striking “or” at the end; ####
(2)in subparagraph (B), by striking “or” at the end; ####
(3)in subparagraph (C), by striking “or” at the end; ####
(4)by redesignating subparagraph
(D)as subparagraph (E); ####
(5)by inserting after subparagraph
(C)the following: > > ##### “(D) > > an emergency involving Federal primary responsibility determined to exist by the President under the section 501(b) of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5191(b)); or” > ; and ####
(6)in subparagraph (E), as so redesignated— #####
(A)by striking “or (C)” and inserting “(C), or (D)”; #####
(B)by striking “disaster declaration” each place it appears and inserting “disaster or emergency declaration”; #####
(C)by striking “disaster has occurred” and inserting “disaster or emergency has occurred”; #####
(D)by striking “such disaster” and inserting “such disaster or emergency”; and #####
(E)by striking “disaster stricken” and inserting “disaster- or emergency-stricken”; and ####
(7)in the flush matter following subparagraph (E), as so redesignated, by striking the period at the end and inserting the following: “: Provided further, That for purposes of subparagraph (D), the Administrator shall deem that such an emergency affects each State or subdivision thereof (including counties), and that each State or subdivision has sufficient economic damage to small business concerns to qualify for assistance under this paragraph and the Administrator shall accept applications for such assistance immediately.”.
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Sec. 1110
EMERGENCY EIDL GRANTS
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