Sec. 307. SIMPLIFIED FORGIVENESS APPLICATION
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## SEC. 307 SIMPLIFIED FORGIVENESS APPLICATION ###
(a)In General Section 7A of the Small Business Act, as redesignated and transferred by section 304 of this Act, and as amended by section 306 of this Act, is amended— ####
(1)in subsection (e), in the matter preceding paragraph (1), by striking “An eligible” and inserting “Except as provided in subsection (l), an eligible”; ####
(2)in subsection (f), by inserting “or the certification required under subsection (l), as applicable” after “subsection (e)”; and ####
(3)by adding at the end the following: > > ### “(l) Simplified Application > > > #### “(1) Covered loans up to $150,000 > > > ##### “(A) In general > > With respect to a covered loan made to an eligible recipient that is not more than $150,000, the covered loan amount shall be forgiven under this section if the eligible recipient— > > > ###### “(i) > > signs and submits to the lender a certification, to be established by the Administrator not later than 24 days after the date of enactment of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, which— > > > ###### “(I) > > shall be not more than 1 page in length; and > > > ###### “(II) > > shall only require the eligible recipient to provide— > > > ###### “(aa) > > a description of the number of employees the eligible recipient was able to retain because of the covered loan; > > > ###### “(bb) > > the estimated amount of the covered loan amount spent by the eligible recipient on payroll costs; and > > > ###### “(cc) > > the total loan value; > > > ###### “(ii) > > attests that the eligible recipient has— > > > ###### “(I) > > accurately provided the required certification; and > > > ###### “(II) > > complied with the requirements under section 7(a)(36); and > > > ###### “(iii) > > retains records relevant to the form that prove compliance with such requirements— > > > ###### “(I) > > with respect to employment records, for the 4-year period following submission of the form; and > > > ###### “(II) > > with respect to other records, for the 3-year period following submission of the form. > > > ##### “(B) Limitation on requiring additional materials > > An eligible recipient of a covered loan that is not more than $150,000 shall not, at the time of the application for forgiveness, be required to submit any application or documentation in addition to the certification and information required to substantiate forgiveness. > > > ##### “(C) Records for other requirements > > Nothing in subparagraph
(A)or
(B)shall be construed to exempt an eligible recipient from having to provide documentation independently to a lender to satisfy relevant Federal, State, local, or other statutory or regulatory requirements, or in connection with an audit as authorized under subparagraph (E). > > > ##### “(D) Demographic information > > The certification established by the Administrator under subparagraph
(A)shall include a means by which an eligible recipient may, at the discretion of the eligible recipient, submit demographic information of the owner of the eligible recipient, including the sex, race, ethnicity, and veteran status of the owner. > > > ##### “(E) Audit authority > > The Administrator may— > > > ###### “(i) > > review and audit covered loans described in subparagraph (A); > > > ###### “(ii) > > access any records described in subparagraph (A)(iii); and > > > ###### “(iii) > > in the case of fraud, ineligibility, or other material noncompliance with applicable loan or loan forgiveness requirements, modify— > > > ###### “(I) > > the amount of a covered loan described in subparagraph (A); or > > > ###### “(II) > > the loan forgiveness amount with respect to a covered loan described in subparagraph (A). > > > #### “(2) Covered loans of more than $150,000 > > > ##### “(A) In general > > With respect to a covered loan in an amount that is more than $150,000, the eligible recipient shall submit to the lender that is servicing the covered loan the documentation described in subsection (e). > > > ##### “(B) Demographic information > > The process for submitting the documentation described in subsection
(e)shall include a means by which an eligible recipient may, at the discretion of the eligible recipient, submit demographic information of the owner of the eligible recipient, including the sex, race, ethnicity, and veteran status of the owner. > > > #### “(3) Forgiveness audit plan > > > ##### “(A) In general > > Not later than 45 days after the date of enactment of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, the Administrator shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives an audit plan that details— > > > ###### “(i) > > the policies and procedures of the Administrator for conducting forgiveness reviews and audits of covered loans; and > > > ###### “(ii) > > the metrics that the Administrator shall use to determine which covered loans will be audited. > > > ##### “(B) Reports > > Not later than 30 days after the date on which the Administrator submits the audit plan required under subparagraph (A), and each month thereafter, the Administrator shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report on the forgiveness review and audit activities of the Administrator under this subsection, which shall include— > > > ###### “(i) > > the number of active reviews and audits; > > > ###### “(ii) > > the number of reviews and audits that have been ongoing for more than 60 days; and > > > ###### “(iii) > > any substantial changes made to the audit plan submitted under subparagraph (A).” > . ###
(b)Effective Date; Applicability **[**[15 U.S.C. 636m note](/us/usc/t15/s636m)**]** The amendments made by subsection
(a)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.
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- 134 Stat. 281
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Sec. 307
SIMPLIFIED FORGIVENESS APPLICATION
Stat.134 Stat. 281
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