Sec. 304. ADDITIONAL ELIGIBLE EXPENSES

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## SEC. 304 ADDITIONAL ELIGIBLE EXPENSES ###

(a)Allowable Use of PPP Loan Section 7(a)(36)(F)(i) of the Small Business Act (15 U.S.C. 636(a)(36)(F)(i)) is amended— ####

(1)in subclause (VI), by striking “and” at the end; ####

(2)in subclause (VII), by striking the period at the end and inserting a semicolon; and ####

(3)by adding at the end the following: > > ###### “(VIII) > > covered operations expenditures, as defined in section 7A(a); > > > ###### “(IX) > > covered property damage costs, as defined in section 7A(a); > > > ###### “(X) > > covered supplier costs, as defined in section 7A(a); and > > > ###### “(XI) > > covered worker protection expenditures, as defined in section 7A(a).” > . ###

(b)Loan Forgiveness ####

(1)Transfer of section to small business act #####

(A)In general **[**[15 U.S.C. 636m](/us/usc/t15/s636m)**]** Section 1106 of the CARES Act (15 U.S.C. 9005) is redesignated as section 7A, transferred to the Small Business Act (15 U.S.C. 631 et seq.), and inserted so as to appear after section 7 of the Small Business Act (15 U.S.C. 636). #####

(B)Conforming amendments to transferred section Section 7A of the Small Business Act, as redesignated and transferred by subparagraph

(A)of this paragraph, is amended— ######

(i)in subsection (a)(1), by striking “under paragraph

(36)of section 7(a) of the Small Business Act (15 U.S.C. 636(a)), as added by section 1102” and inserting “under section 7(a)(36)”; and ######

(ii)in subsection (c), by striking “of the Small Business Act (15 U.S.C. 636(a))” each place it appears. #####

(C)Other conforming amendments ######

(i)Section 1109(d)(2)(D) of the CARES Act (15 U.S.C. 9008(d)(2)(D)) is amended by striking “section 1106 of this Act” and inserting “section 7A of the Small Business Act”. ######

(ii)Section 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36)) is amended— ######

(I)in subparagraph (K), by striking “section 1106 of the CARES Act” and inserting “section 7A”; and ######

(II)in subparagraph (M)— ######

(aa)by striking “section 1106 of the CARES Act” each place it appears and inserting “section 7A”; and ######

(bb)in clause (v), by striking “section 1106(a) of the CARES Act” and inserting “section 7A(a)”. ####

(2)Additional eligible expenses Section 7A of the Small Business Act, as redesignated and transferred by paragraph

(1)of this subsection, is amended— #####

(A)in subsection (a)— ######

(i)by redesignating paragraphs (6), (7), and

(8)as paragraphs (10), (11), and (12), respectively; ######

(ii)by redesignating paragraph

(5)as paragraph (8); ######

(iii)by redesignating paragraph

(4)as paragraph (6); ######

(iv)by redesignating paragraph

(3)as paragraph (4); ######

(v)by inserting after paragraph

(2)the following: > > #### “(3) > > the term ‘covered operations expenditure’ means a payment for any business software or cloud computing service that facilitates business operations, product or service delivery, the processing, payment, or tracking of payroll expenses, human resources, sales and billing functions, or accounting or tracking of supplies, inventory, records and expenses;” > ; ######

(vi)by inserting after paragraph (4), as so redesignated, the following: > > #### “(5) > > the term ‘covered property damage cost’ means a cost related to property damage and vandalism or looting due to public disturbances that occurred during 2020 that was not covered by insurance or other compensation;” > ; ######

(vii)by inserting after paragraph (6), as so redesignated, the following: > > #### “(7) > > the term ‘covered supplier cost’ means an expenditure made by an entity to a supplier of goods for the supply of goods that— > > > ##### “(A) > > are essential to the operations of the entity at the time at which the expenditure is made; and > > > ##### “(B) > > is made pursuant to a contract, order, or purchase order— > > > ###### “(i) > > in effect at any time before the covered period with respect to the applicable covered loan; or > > > ###### “(ii) > > with respect to perishable goods, in effect before or at any time during the covered period with respect to the applicable covered loan;” > ; ######

(viii)by inserting after paragraph (8), as so redesignated, the following: > > #### “(9) > > the term ‘covered worker protection expenditure’— > > > ##### “(A) > > means an operating or a capital expenditure to facilitate the adaptation of the business activities of an entity to comply with requirements established or guidance issued by the Department of Health and Human Services, the Centers for Disease Control, or the Occupational Safety and Health Administration, or any equivalent requirements established or guidance issued by a State or local government, during the period beginning on March 1, 2020 and ending the date on which the national emergency declared by the President under the National Emergencies Act (50 U.S.C. 1601 et seq.) with respect to the Coronavirus Disease 2019 (COVID-19) expires related to the maintenance of standards for sanitation, social distancing, or any other worker or customer safety requirement related to COVID-19; > > > ##### “(B) > > may include— > > > ###### “(i) > > the purchase, maintenance, or renovation of assets that create or expand— > > > ###### “(I) > > a drive-through window facility; > > > ###### “(II) > > an indoor, outdoor, or combined air or air pressure ventilation or filtration system; > > > ###### “(III) > > a physical barrier such as a sneeze guard; > > > ###### “(IV) > > an expansion of additional indoor, outdoor, or combined business space; > > > ###### “(V) > > an onsite or offsite health screening capability; or > > > ###### “(VI) > > other assets relating to the compliance with the requirements or guidance described in subparagraph (A), as determined by the Administrator in consultation with the Secretary of Health and Human Services and the Secretary of Labor; and > > > ###### “(ii) > > the purchase of— > > > ###### “(I) > > covered materials described in section 328.103(a) of title 44, Code of Federal Regulations, or any successor regulation; > > > ###### “(II) > > particulate filtering facepiece respirators approved by the National Institute for Occupational Safety and Health, including those approved only for emergency use authorization; or > > > ###### “(III) > > other kinds of personal protective equipment, as determined by the Administrator in consultation with the Secretary of Health and Human Services and the Secretary of Labor; and > > > ##### “(C) > > does not include residential real property or intangible property;” > ; and ######

(ix)in paragraph (11), as so redesignated— ######

(I)in subparagraph (C), by striking “and” at the end; ######

(II)in subparagraph (D), by striking “and” at the end; and ######

(III)by adding at the end the following: > > ##### “(E) > > covered operations expenditures; > > > ##### “(F) > > covered property damage costs; > > > ##### “(G) > > covered supplier costs; and > > > ##### “(H) > > covered worker protection expenditures; and” > ; #####

(B)in subsection (b), by adding at the end the following: > > #### “(5) > > Any covered operations expenditure. > > > #### “(6) > > Any covered property damage cost. > > > #### “(7) > > Any covered supplier cost. > > > #### “(8) > > Any covered worker protection expenditure.” > ; #####

(C)in subsection (d)(8), by inserting “any payment on any covered operations expenditure, any payment on any covered property damage cost, any payment on any covered supplier cost, any payment on any covered worker protection expenditure,” after “rent obligation,”; and #####

(D)in subsection (e)— ######

(i)in paragraph (2)— ######

(I)by inserting “purchase orders, orders, invoices,” before “or other documents”; and ######

(II)by striking “covered lease obligations,” and inserting “covered rent obligations, payments on covered operations expenditures, payments on covered property damage costs, payments on covered supplier costs, payments on covered worker protection expenditures,”; and ######

(ii)in paragraph (3)(B), by inserting “make payments on covered operations expenditures, make payments on covered property damage costs, make payments on covered supplier costs, make payments on covered worker protection expenditures,” after “rent obligation,”. ###

(c)Effective Date; Applicability **[**[15 U.S.C. 636 note](/us/usc/t15/s636)**]** ####

(1)In general Except as provided in paragraph (2), the amendments made by subsections

(a)and

(b)shall be effective as if included in the CARES Act (Public Law 116-136; 134 Stat. 281) and shall apply to any loan made pursuant to section 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36)) before, on, or after the date of enactment of this Act, including forgiveness of such a loan. ####

(2)Exclusion of loans already forgiven The amendments made by subsections

(a)and

(b)shall not apply to a loan made pursuant to section 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36)) for which the borrower received forgiveness before the date of enactment of this Act under section 1106 of the CARES Act, as in effect on the day before such date of enactment.

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