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[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3742 Introduced in Senate (IS)]

<DOC>

116th CONGRESS
  2d Session
                                S. 3742

 To establish a program in the Department of the Treasury to allocate 
 funds to States, units of general local government, and Indian Tribes 
   to provide assistance to certain small businesses, and for other 
                               purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                              May 14, 2020

 Mr. Booker (for himself, Mr. Daines, and Mrs. Murray) introduced the 
 following bill; which was read twice and referred to the Committee on 
                  Small Business and Entrepreneurship

_______________________________________________________________________

                                 A BILL

 
 To establish a program in the Department of the Treasury to allocate 
 funds to States, units of general local government, and Indian Tribes 
   to provide assistance to certain small businesses, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Recharge and Empower Local 
Innovation and Entrepreneurs Fund for Main Street Act'' or the ``RELIEF 
for Main Street Act''.

SEC. 2. SMALL BUSINESS LOCAL RELIEF PROGRAM.

    (a) Definitions.--In this section:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Small Business Administration.
            (2) Eligible entity.--The term ``eligible entity''--
                    (A) means a privately held business entity or 
                nonprofit organization that--
                            (i) employs--
                                    (I) not more than 20 full-time 
                                equivalent employees; or
                                    (II) if the entity or organization 
                                is located in a low-income community, 
                                not more than 50 full-time equivalent 
                                employees;
                            (ii) has experienced a loss of revenue as a 
                        result of the COVID-19 pandemic, according to 
                        criteria established by the Secretary; and
                            (iii) with respect to such an entity or 
                        organization that receives assistance from a 
                        small business emergency fund, satisfies 
                        additional requirements, as determined by the 
                        State, unit of general local government, Indian 
                        Tribe, or other entity that has established the 
                        small business emergency fund; and
                    (B) includes an individual who operates under a 
                sole proprietorship, an individual who operates as an 
                independent contractor, and an eligible self-employed 
                individual if such an individual has experienced a loss 
                of revenue as a result of the COVID-19 pandemic, 
                according to criteria established by the Secretary.
            (3) Eligible self-employed individual.--The term ``eligible 
        self-employed individual'' has the meaning given the term in 
        section 7(a)(36)(A) of the Small Business Act (15 U.S.C. 
        636(a)(36)(A)).
            (4) Entitlement community.--The term ``entitlement 
        community'' means a metropolitan city or urban county, as those 
        terms are defined in section 102 of the Housing and Community 
        Development Act of 1974 (42 U.S.C. 5302).
            (5) Full-time equivalent employees.--
                    (A) In general.--The term ``full-time equivalent 
                employees'' means a number of employees equal to the 
                number determined by dividing--
                            (i) the total number of hours of service 
                        for which wages were paid by the employer to 
                        employees during the taxable year; by
                            (ii) 2,080.
                    (B) Rounding.--The number determined under 
                subparagraph (A) shall be rounded to the next lowest 
                whole number if not otherwise a whole number.
                    (C) Excess hours not counted.--If an employee works 
                in excess of 2,080 hours of service during any taxable 
                year, such excess shall not be taken into account under 
                subparagraph (A).
                    (D) Hours of service.--The Secretary, in 
                consultation with the Secretary of Labor, shall 
                prescribe such regulations, rules, and guidance as may 
                be necessary to determine the hours of service of an 
                employee, including rules for the application of this 
                paragraph to employees who are not compensated on an 
                hourly basis.
            (6) Indian tribe.--The term ``Indian Tribe'' has the 
        meaning given the term ``Indian tribe'' in section 102 of the 
        Housing and Community Development Act of 1974 (42 U.S.C. 5302).
            (7) Low-income community.--The term ``low-income 
        community'' has the meaning given the term in section 45D(e) of 
        the Internal Revenue Code of 1986.
            (8) Minority.--The term ``minority'' has the meaning given 
        the term in section 1204(c)(3) of the Financial Institutions 
        Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1811 
        note).
            (9) Minority-owned entity.--The term ``minority-owned 
        entity'' means an entity--
                    (A) more than 50 percent of the ownership or 
                control of which is held by not less than 1 minority; 
                and
                    (B) more than 50 percent of the net profit or loss 
                of which accrues to not less than 1 minority.
            (10) Nonentitlement area; state; unit of general local 
        government.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the terms ``nonentitlement area'', ``State'', and 
                ``unit of general local government'' have the meanings 
                given those terms in section 102 of the Housing and 
                Community Development Act of 1974 (42 U.S.C. 5302).
                    (B) State.--For purposes of subparagraphs (A)(ii) 
                and (B)(ii) of subsection (c)(1), the term ``State'' 
                means any State of the United States.
            (11) Program.--The term ``Program'' means the Small 
        Business Local Relief Program established under this section.
            (12) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury.
            (13) Small business emergency fund.--The term ``small 
        business emergency fund'' means a fund or program--
                    (A) established by a State, a unit of general local 
                government, an Indian Tribe, or an entity designated by 
                a State, unit of general local government, or Indian 
                Tribe; and
                    (B) that provides or administers financing to 
                eligible entities in the form of grants, loans, or 
                other means in accordance with the needs of eligible 
                entities and the capacity of the fund or program.
            (14) Women-owned entity.--The term ``women-owned entity'' 
        means an entity--
                    (A) more than 50 percent of the ownership or 
                control of which is held by not less than 1 woman; and
                    (B) more than 50 percent of the net profit or loss 
                of which accrues to not less than 1 woman.
    (b) Establishment.--There is established in the Department of the 
Treasury the Small Business Local Relief Program, the purpose of which 
is to allocate resources to States, units of general local government, 
and Indian Tribes to provide assistance to eligible entities and 
organizations that assist eligible entities.
    (c) Funding.--
            (1) Funding to states, localities, and indian tribes.--
                    (A) In general.--Of the amounts made available to 
                carry out the Program under subsection (h), the 
                Secretary shall allocate--
                            (i) $35,000,000,000 to States and units of 
                        general local government in accordance with 
                        subparagraph (B)(i);
                            (ii) $15,000,000,000 to States in 
                        accordance with subparagraph (B)(ii); and
                            (iii) $500,000,000 to the Secretary of 
                        Housing and Urban Development for allocations 
                        to Indian Tribes in accordance with 
                        subparagraph (B)(iii).
                    (B) Allocations.--
                            (i) Formula for states and units of general 
                        local government.--Of the amount allocated 
                        under subparagraph (A)(i)--
                                    (I) 70 percent shall be allocated 
                                to entitlement communities in 
                                accordance with the formula under 
                                section 106(b) of the Housing and 
                                Community Development Act of 1974 (42 
                                U.S.C. 5306(b)); and
                                    (II) 30 percent shall be allocated 
                                to States, for use in nonentitlement 
                                areas, in accordance with the formula 
                                under section 106(d)(1) of the Housing 
                                and Community Development Act of 1974 
                                (42 U.S.C. 5306(d)(1)).
                            (ii) Rural bonus formula for states.--The 
                        Secretary shall allocate the amount allocated 
                        under subparagraph (A)(ii) to States, for use 
                        in nonentitlement areas, in accordance with the 
                        formula under section 106(d)(1) of the Housing 
                        and Community Development Act of 1974 (42 
                        U.S.C. 5306(d)(1)).
                            (iii) Competitive awards to indian 
                        tribes.--
                                    (I) In general.--The Secretary of 
                                Housing and Urban Development shall 
                                allocate to Indian Tribes on a 
                                competitive basis the amount allocated 
                                under subparagraph (A)(iii).
                                    (II) Requirements.--In making 
                                allocations under subclause (I), the 
                                Secretary of Housing and Urban 
                                Development shall, to the greatest 
                                extent practicable, ensure that each 
                                Indian Tribe that satisfies 
                                requirements established by the 
                                Secretary of Housing and Urban 
                                Development receives such an 
                                allocation.
                    (C) State allocations for nonentitlement areas.--
                            (i) Equitable allocation.--To the greatest 
                        extent practicable, a State shall allocate 
                        amounts for nonentitlement areas under clauses 
                        (i)(II) and (ii) of subparagraph (B) on an 
                        equitable basis.
                            (ii) Distribution of amounts.--
                                    (I) Discretion.--Not later than 14 
                                days after the date on which a State 
                                receives amounts for use in a 
                                nonentitlement area under clause 
                                (i)(II) or (ii) of subparagraph (B), 
                                the State shall--
                                            (aa) distribute the 
                                        amounts, or a portion thereof, 
                                        to a unit of general local 
                                        government located in the 
                                        nonentitlement area, or an 
                                        entity designated thereby, that 
                                        has established or will 
                                        establish a small business 
                                        emergency fund, for use under 
                                        paragraph (2); or
                                            (bb) elect to reserve the 
                                        amounts, or a portion thereof, 
                                        for use by the State under 
                                        paragraph (2) for the benefit 
                                        of eligible entities located in 
                                        the nonentitlement area.
                                    (II) Sense of congress.--It is the 
                                sense of Congress that, in distributing 
                                amounts under subclause (I), in the 
                                case of amounts allocated for a 
                                nonentitlement area in which a unit of 
                                general local government or an entity 
                                designated thereby has established a 
                                small business emergency fund, a State 
                                should, as quickly as is practicable, 
                                distribute amounts to that unit of 
                                general local government or entity, 
                                respectively, as described in item (aa) 
                                of that subclause.
                            (iii) Treatment of states not acting as 
                        pass-through agents under cdbg.--The Secretary 
                        shall allocate amounts to a State under this 
                        paragraph without regard to whether the State 
                        has elected to distribute amounts allocated 
                        under section 106(d)(1) of the Housing and 
                        Community Development Act of 1974 (42 U.S.C. 
                        5306(d)(1)).
            (2) Use of funds.--
                    (A) In general.--A State, unit of general local 
                government, entity designated by a unit of general 
                local government, or Indian Tribe that receives an 
                allocation under paragraph (1), whether directly or 
                indirectly, may use that allocation--
                            (i) to provide funding to a small business 
                        emergency fund established by that State (or 
                        entity designated thereby), that unit of 
                        general local government (or entity designated 
                        thereby), that entity designated by a unit of 
                        general local government, or that Indian Tribe 
                        (or entity designated thereby), respectively;
                            (ii) to provide funding to support 
                        organizations that provide technical assistance 
                        to eligible entities; or
                            (iii) subject to subparagraph (B), to pay 
                        for administrative costs incurred by that State 
                        (or entity designated thereby), that unit of 
                        general local government (or entity designated 
                        thereby), that entity designated by a unit of 
                        general local government, or that Indian Tribe 
                        (or entity designated thereby), respectively, 
                        in establishing and administering a small 
                        business emergency fund.
                    (B) Limitation.--A State, unit of general local 
                government, entity designated by a unit of general 
                local government, or Indian Tribe may not use more than 
                3 percent of an allocation received under paragraph (1) 
                for a purpose described in subparagraph (A)(iii) of 
                this paragraph.
                    (C) Obligation deadlines.--
                            (i) States.--Of the amounts that a State 
                        elects under paragraph (1)(C)(ii)(I)(bb) to 
                        reserve for use by the State under this 
                        paragraph--
                                    (I) any amounts that the State 
                                provides to a small business emergency 
                                fund under subparagraph (A)(i) of this 
                                paragraph shall be obligated by the 
                                small business emergency fund for 
                                expenditure not later than 74 days 
                                after the date on which the State 
                                received the amounts from the Secretary 
                                under clause (i) or (ii) of paragraph 
                                (1)(A); and
                                    (II) any amounts that the State 
                                chooses to provide to an organization 
                                under subparagraph (A)(ii) of this 
                                paragraph, or to use to pay for 
                                administrative costs under subparagraph 
                                (A)(iii) of this paragraph, shall be 
                                obligated by the State for expenditure 
                                not later than 74 days after the date 
                                on which the State received the amounts 
                                from the Secretary under clause (i) or 
                                (ii) of paragraph (1)(A).
                            (ii) Entitlement communities.--Of the 
                        amounts that an entitlement community receives 
                        from the Secretary under paragraph 
                        (1)(B)(i)(I)--
                                    (I) any amounts that the 
                                entitlement community provides to a 
                                small business emergency fund under 
                                subparagraph (A)(i) of this paragraph 
                                shall be obligated by the small 
                                business emergency fund for expenditure 
                                not later than 74 days after the date 
                                on which the entitlement community 
                                received the amounts; and
                                    (II) any amounts that the 
                                entitlement community chooses to 
                                provide to an organization under 
                                subparagraph (A)(ii) of this paragraph, 
                                or to use to pay for administrative 
                                costs under subparagraph (A)(iii) of 
                                this paragraph, shall be obligated by 
                                the entitlement community for 
                                expenditure not later than 74 days 
                                after the date on which the entitlement 
                                community received the amounts.
                            (iii) Nonentitlement communities.--Of the 
                        amounts that a unit of general local 
                        government, or an entity designated thereby, 
                        located in a nonentitlement area receives from 
                        a State under paragraph (1)(C)(ii)(I)(aa)--
                                    (I) any amounts that the unit of 
                                general local government or entity 
                                provides to a small business emergency 
                                fund under subparagraph (A)(i) of this 
                                paragraph shall be obligated by the 
                                small business emergency fund for 
                                expenditure not later than 60 days 
                                after the date on which the unit of 
                                general local government or entity 
                                received the amounts; and
                                    (II) any amounts that the unit of 
                                general local government or entity 
                                chooses to provide to a support 
                                organization under subparagraph (A)(ii) 
                                of this paragraph or to use to pay for 
                                administrative costs under subparagraph 
                                (A)(iii) of this paragraph shall be 
                                obligated by the unit of general local 
                                government or entity for expenditure 
                                not later than 60 days after the date 
                                on which the unit of general local 
                                government or entity received the 
                                amounts.
                    (D) Recovery of unobligated funds.--If a State, 
                entitlement community, other unit of general local 
                government, entity designated by a unit of general 
                local government, or small business emergency fund 
                fails to obligate amounts by the applicable deadline 
                under subparagraph (C), the Secretary shall recover the 
                amount of those amounts that remain unobligated, as of 
                that deadline.
                    (E) Collaboration.--It is the sense of Congress 
                that--
                            (i) an entitlement community that receives 
                        amounts allocated under paragraph (1)(B)(i)(I) 
                        should collaborate with the applicable local 
                        entity responsible for economic development and 
                        small business development in establishing and 
                        administering a small business emergency fund; 
                        and
                            (ii) States, units of general local 
                        government (including units of general local 
                        government located inside and outside 
                        nonentitlement areas), and Indian Tribes that 
                        receive amounts under paragraph (1) and are 
                        located in the same region should collaborate 
                        in establishing and administering small 
                        business emergency funds.
    (d) Small Business Emergency Funds.--With respect to a small 
business emergency fund that receives funds from an allocation made 
under subsection (c)--
            (1) if the small business emergency fund makes a loan to an 
        eligible entity with those funds, the small business emergency 
        fund may use amounts returned to the small business emergency 
        fund from the repayment of the loan to provide further 
        assistance to eligible entities, without regard to the 
        termination date described in subsection (i); and
            (2) the small business emergency fund shall conduct 
        outreach to eligible entities that are less likely to 
        participate in programs established under the CARES Act (Public 
        Law 116-136; 134 Stat. 281) and the amendments made by that 
        Act, including minority-owned entities, businesses in low-
        income communities, businesses in rural and Tribal areas, and 
        other businesses that are underserved by the traditional 
        banking system.
    (e) Information Gathering.--
            (1) In general.--When providing assistance to an eligible 
        entity with funds received from an allocation made under 
        subsection (c), the entity providing assistance shall--
                    (A) inquire whether the eligible entity is--
                            (i) in the case of an eligible entity that 
                        is a business entity or a nonprofit 
                        organization, a women-owned entity or a 
                        minority-owned entity; and
                            (ii) in the case of an eligible entity who 
                        is an individual, a woman or a minority; and
                    (B) maintain a record of the responses to each 
                inquiry conducted under subparagraph (A), which the 
                entity shall promptly submit to the applicable State, 
                unit of general local government, or Indian Tribe.
            (2) Right to refuse.--An eligible entity may refuse to 
        provide any information requested under paragraph (1)(A).
    (f) Reporting.--
            (1) In general.--Not later than 30 days after the date on 
        which a State, unit of general local government, or Indian 
        Tribe initially receives an allocation made under subsection 
        (c), and not later than 14 days after the date on which that 
        State, unit of local government, or Indian Tribe completes the 
        full expenditure of that allocation, that State, unit of 
        general local government, or Indian Tribe shall submit to the 
        Secretary a report that includes--
                    (A) the number of recipients of assistance made 
                available from the allocation;
                    (B) the total amount, and type, of assistance made 
                available from the allocation;
                    (C) to the extent applicable, with respect to each 
                recipient described in subparagraph (A), information 
                regarding the industry of the recipient, the amount of 
                assistance received by the recipient, the annual sales 
                of the recipient, and the number of employees of the 
                recipient;
                    (D) to the extent available from information 
                collected under subsection (e), information regarding 
                the number of recipients described in subparagraph (A) 
                that are minority-owned entities, minorities, women, 
                and women-owned entities;
                    (E) the zip code of each recipient described in 
                subparagraph (A); and
                    (F) any other information that the Secretary, in 
                the sole discretion of the Secretary, determines to be 
                necessary to carry out the Program.
            (2) Public availability.--As soon as is practicable after 
        receiving each report submitted under paragraph (1), the 
        Secretary shall make the information contained in the report, 
        including all of the information described in subparagraphs (A) 
        through (F) of that paragraph, publicly available.
    (g) Rules and Guidance.--The Secretary, in consultation with the 
Administrator, shall issue any rules and guidance that are necessary to 
carry out the Program, including by establishing appropriate compliance 
and reporting requirements, in addition to the reporting requirements 
under subsection (f).
    (h) Appropriation.--There are appropriated to the Secretary for 
fiscal year 2020, out of amounts in the Treasury not otherwise 
appropriated, $50,500,000,000 to carry out the Program, which shall 
remain available until the termination date described in subsection 
(i).
    (i) Termination.--The Program, and any rules and guidance issued 
under subsection (g) with respect to the Program, shall terminate on 
the date that is 1 year after the date of enactment of this Act.
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