Sec. 322. CONFLICTS OF INTEREST
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## SEC. 322 CONFLICTS OF INTEREST **[**[15 U.S.C. 636 note](/us/usc/t15/s636)**]** ###
(a)Definitions In this section: ####
(1)Controlling interest The term “controlling interest” means owning, controlling, or holding not less than 20 percent, by vote or value, of the outstanding amount of any class of equity interest in an entity. ####
(2)Covered entity #####
(A)Definition The term “covered entity” means an entity in which a covered individual directly or indirectly holds a controlling interest. #####
(B)Treatment of securities For the purpose of determining whether an entity is a covered entity, the securities owned, controlled, or held by 2 or more individuals who are related as described in paragraph (3)(B) shall be aggregated. ####
(3)Covered individual The term “covered individual” means— #####
(A)the President, the Vice President, the head of an Executive department, or a Member of Congress; and #####
(B)the spouse, as determined under applicable common law, of an individual described in subparagraph (A). ####
(4)Executive department The term “Executive department” has the meaning given the term in section 101 of title 5, United States Code. ####
(5)Member of congress The term “Member of Congress” means a Member of the Senate or House of Representatives, a Delegate to the House of Representatives, and the Resident Commissioner from Puerto Rico. ####
(6)Equity interest The term “equity interest” means— #####
(A)a share in an entity, without regard to whether the share is— ######
(i)transferable; or ######
(ii)classified as stock or anything similar; #####
(B)a capital or profit interest in a limited liability company or partnership; or #####
(C)a warrant or right, other than a right to convert, to purchase, sell, or subscribe to a share or interest described in subparagraph
(A)or (B), respectively. ###
(b)Requirement for Disclosure Regarding Existing Loans For any loan under paragraph
(36)of section 7(a) of the Small Business Act (15 U.S.C. 636(a)) made to a covered entity before the date of enactment of this Act— ####
(1)if, before the date of enactment of this Act, the covered entity submitted an application for forgiveness under section 1106 of the CARES Act (15 U.S.C. 9005) (as such section was in effect on the day before the date of enactment of this Act) with respect to such loan, not later than 30 days after the date of enactment of this Act, the principal executive officer, or individual performing a similar function, of the covered entity shall disclose to the Administrator that the entity is a covered entity; and ####
(2)if, on or after the date of enactment of this Act, the covered entity submits an application for forgiveness under section 7A of the Small Business Act, as redesignated and transferred by section 304 of this Act, with respect to such loan, not later than 30 days after submitting the application, the principal executive officer, or individual performing a similar function, of the covered entity shall disclose to the Administrator that the entity is a covered entity. ###
(c)Ban on New Loans On and after the date of enactment of this Act, a loan under paragraph
(36)or
(37)of section 7(a) of the Small Business Act (15 U.S.C. 636(a)), as added and amended by this Act, may not be made to a covered entity.
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