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[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3814 Introduced in Senate (IS)]

<DOC>

116th CONGRESS
  2d Session
                                S. 3814

To establish a loan program for businesses affected by COVID-19 and to 
  extend the loan forgiveness period for paycheck protection program 
   loans made to the hardest hit businesses, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                              May 21, 2020

 Mr. Bennet (for himself and Mr. Young) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL

 
To establish a loan program for businesses affected by COVID-19 and to 
  extend the loan forgiveness period for paycheck protection program 
   loans made to the hardest hit 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 ``Reviving the Economy Sustainably 
Towards A Recovery in Twenty-twenty Act'' or the ``RESTART Act''.

SEC. 2. EXTENSION OF COVERED PERIOD FOR LOAN FORGIVENESS UNDER THE 
              PAYCHECK PROTECTION PROGRAM FOR THE HARDEST HIT 
              BUSINESSES.

    Section 1106 of the CARES Act (Public Law 116-136) is amended--
            (1) by amending subsection (a)(3) to read as follows:
            ``(3) the term `covered period' means--
                    ``(A) except as provided in subparagraph (B), the 
                8-week period beginning on the date of the origination 
                of a covered loan; or
                    ``(B) the period beginning on the date of the 
                origination of a covered loan and ending on the later 
                of the date that is 16 weeks after the date of the 
                origination of the covered loan and the date that is 8 
                weeks after the date of enactment of the Reviving the 
                Economy Sustainably Towards A Recovery in Twenty-twenty 
                Act, if the eligible recipient of the covered loan--
                            ``(i) has less than 500 full-time 
                        equivalent employees; and
                            ``(ii) makes a good faith certification to 
                        the Administrator that, during the 8-week 
                        period described in subparagraph (A), the 
                        eligible recipient suffered a decline in gross 
                        receipts of not less than 25 percent relative 
                        to a comparable 8-week period--
                                    ``(I) immediately preceding March 
                                2, 2020; or
                                    ``(II) during 2019;''; and
            (2) in subsection (d)(2), by adding at the end the 
        following:
                    ``(C) Exception.--This paragraph shall not apply 
                with respect to an eligible recipient described in 
                subsection (a)(3)(B).''.

SEC. 3. RESTART LOAN PROGRAM.

    (a) Definitions.--In this section:
            (1) Administration; administrator.--The terms 
        ``Administration'' and ``Administrator'' mean the Small 
        Business Administration and the Administrator thereof, 
        respectively.
            (2) Community development financial institution.--The term 
        ``community development financial institution'' has the meaning 
        given the term in section 103 of the Riegle Community 
        Development and Regulatory Improvement Act of 1994 (12 U.S.C. 
        4702).
            (3) Covered loan.--The term ``covered loan'' means a loan 
        made under this section during the covered period.
            (4) Covered period.--The term ``covered period'' means--
                    (A) except as provided in subparagraph (B), and as 
                determined by the eligible recipient of a covered loan, 
                the 6-month period beginning on--
                            (i) the date of the origination of the 
                        covered loan;
                            (ii) the first day of the next scheduled 
                        pay period following the date of the 
                        origination of the covered loan;
                            (iii) the first day of the first full month 
                        following the date of the origination of the 
                        covered loan; or
                            (iv) April 15, 2020; or
                    (B) with respect to an eligible recipient of a 
                covered loan that suffered a decline in gross receipts 
                of more than 80 percent in 2020 as compared to 2019 or 
                in the 6-month period beginning on the date of the 
                origination of the covered loan as compared to a 
                comparable period in 2019, and as determined by the 
                eligible recipient of a covered loan, the 12-month 
                period beginning on--
                            (i) the date of the origination of the 
                        covered loan;
                            (ii) the first day of the next scheduled 
                        pay period following the date of the 
                        origination of the covered loan;
                            (iii) the first day of the first full month 
                        following the date of the origination of the 
                        covered loan; or
                            (iv) April 15, 2020.
            (5) Eligible recipient.--The term ``eligible recipient''--
                    (A) means an individual or entity that--
                            (i) is eligible to receive a loan made 
                        under section 7(a)(36) of the Small Business 
                        Act (15 U.S.C. 636(a)(36)); or
                            (ii) has not more than 5,000 full-time 
                        employees;
                    (B) includes--
                            (i) a nonprofit organization that--
                                    (I) has not more than 5,000 full-
                                time employees; and
                                    (II) is not more than 50 percent 
                                owned or controlled by a State, local, 
                                or Tribal government;
                            (ii) a business concern that--
                                    (I) deals in rare coins and stamps; 
                                and
                                    (II) has not more than 5,000 full-
                                time employees; and
                            (iii) a business concern that leases or 
                        finances equipment to other businesses, if the 
                        business concern--
                                    (I) has not more than 5,000 full-
                                time employees; and
                                    (II) is not--
                                            (aa) a mortgage lender; or
                                            (bb) a lender participating 
                                        in the loan program under 
                                        section 7(a)(36) of the Small 
                                        Business Act (15 U.S.C. 
                                        636(a)(36)).
            (6) Minority depository institution.--The term ``minority 
        depository institution'' has the meaning given the term in 
        section 308 of the Financial Institutions Reform, Recovery, and 
        Enforcement Act of 1989 (12 U.S.C. 1463 note).
            (7) Nonprofit organization.--The term ``nonprofit 
        organization'' means an entity described in paragraph (3), (5), 
        (6), (7) (related to housing), (12), (13), or (19) of section 
        501(c) of the Internal Revenue Code and that is exempt from 
        taxation under section 501(a) of such Code.
            (8) Payroll costs.--The term ``payroll costs'' 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)), except that such costs 
        shall not include--
                    (A) qualified wages taken into account in 
                determining the credit allowed under section 2301(g) of 
                the CARES Act (Public Law 116-136); or
                    (B) any payments made to an independent contractor.
            (9) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury.
            (10) Underserved borrower.--The term ``underserved 
        borrower'' means any business concern that has traditionally 
        had difficulty accessing finance, including--
                    (A) business concerns that--
                            (i) have fewer than 25 employees and do not 
                        have a strong relationship with a bank;
                            (ii) are owned or controlled by minorities;
                            (iii) are owned or controlled by women;
                            (iv) are owned or controlled by veterans, 
                        including service-disabled veterans (as those 
                        terms are defined in section 3(q) of the Small 
                        Business Act (15 U.S.C. 632(q))); or
                            (v) are located in low-income and rural 
                        communities, including those in areas eligible 
                        for assistance under section 45D of the 
                        Internal Revenue Code of 1986; and
                    (B) Tribal business concerns.
    (b) Establishment.--The Administrator shall establish a program to 
guarantee loans made to eligible recipients affected by COVID-19.
    (c) Participation.--In an agreement to participate in a covered 
loan on a deferred basis, the participation by the Administration shall 
be 100 percent.
    (d) Terms and Requirements.--
            (1) Duration.--Except as provided in paragraph (4), the 
        duration of a covered loan shall be for not more than 7 years.
            (2) Amount.--
                    (A) In general.--The amount of a covered loan made 
                to an eligible recipient shall be not more than the 
                lesser of--
                            (i) 45 percent of the 2019 gross receipts 
                        of the eligible recipient; and
                            (ii) $12,000,000.
                    (B) Duplication of assistance.--
                            (i) In general.--An eligible recipient of a 
                        covered loan shall not use proceeds of the 
                        covered loan for the same expenses that are 
                        covered using funds received under subsection 
                        (a)(36) or (b)(2) of section 7 of the Small 
                        Business Act (15 U.S.C. 636) or section 1110 of 
                        the CARES Act (Public Law 116-136).
                            (ii) Reduction based on other sba loans.--
                        The amount of a covered loan for which an 
                        eligible recipient may receive under this 
                        section shall be reduced by the amount of any 
                        assistance received by the eligible recipient 
                        under subsection (a)(36) or (b)(2) of section 7 
                        of the Small Business Act (15 U.S.C. 636) or 
                        section 1110 of the CARES Act (Public Law 116-
                        136) that is intended to be used for the 
                        allowable expenses described in subsection 
                        (g)(2) during the covered period.
            (3) Interest rate.--
                    (A) In general.--Except as provided in paragraph 
                (4), the interest rate on a covered loan shall be, as 
                determined by the Administrator and the Secretary--
                            (i) for the first 2 years of the covered 
                        loan, not less than 2 percent and not more than 
                        4 percent; and
                            (ii) for the third through seventh years of 
                        the covered loan, the Applicable Federal Rate 
                        plus 250 to 600 basis points based on the 
                        decline in gross receipts of the eligible 
                        recipient.
                    (B) No payments for 12 months.--No payments shall 
                be due on interest on a covered loan for the first 12 
                months of the covered loan.
            (4) Special provisions for nonprofit organizations.--At the 
        time of application for a covered loan, a nonprofit 
        organization described in subsection (a)(5)(B) shall make an 
        election--
                    (A) for a covered loan with a maturity of not more 
                than 10 years and an interest rate of not more than 2 
                percent for the first 4 years of a covered loan, with 
                no eligibility for forgiveness of the covered loan 
                under subsection (j); or
                    (B) for a covered loan with the maturity and 
                interest rate terms described in paragraphs (1) and 
                (3), respectively, with the ability to obtain 
                forgiveness of the covered loan if the nonprofit 
                organization qualifies under subsection (j)(2).
            (5) Payment deferral.--
                    (A) In general.--No payment of principal shall be 
                due on a covered loan for the first 2 years of the 
                covered loan.
                    (B) Additional deferral.--After the 2-year deferral 
                period described in subparagraph (A), the Administrator 
                may grant not more than an additional 2 years of 
                principal deferral to an eligible recipient of a 
                covered loan if the eligible recipient is certified by 
                the Administrator and the Secretary as economically 
                distressed based on publicly available criteria 
                established by the Administrator and the Secretary.
            (6) Origination fees.--
                    (A) In general.--The origination fee for a covered 
                loan shall be as follows:
                            (i) 3.75 percent for a covered loan of not 
                        more than $100,000.
                            (ii) 3.5 percent for a covered loan of more 
                        than $100,000 and not more than $250,000.
                            (iii) 3.25 percent for a covered loan of 
                        more than $250,000 and not more than $500,000.
                            (iv) 3 percent for a covered loan of more 
                        than $500,000 and not more than $750,000.
                            (v) 2.75 percent for a covered loan of more 
                        than $750,000 and not more than $1,000,000.
                            (vi) 2.5 percent for a covered loan of more 
                        than $1,000,000 and not more than $1,500,000.
                            (vii) 2.25 percent for a covered loan of 
                        more than $1,500,000 and not more than 
                        $1,750,000.
                            (viii) 2 percent for a covered loan of more 
                        than $1,750,000 and not more than $2,000,000.
                            (ix) 1.75 percent for a covered loan of 
                        more than $2,000,000 and not more than 
                        $2,500,000.
                            (x) 1.5 percent for a covered loan of more 
                        than $2,500,000 and not more than $3,000,000.
                            (xi) 1.25 percent for a covered loan of 
                        more than $3,000,000 and not more than 
                        $3,500,000.
                            (xii) 1 percent for a covered loan of more 
                        than $3,500,000 and not more than $4,000,000.
                            (xiii) 0.75 percent for a covered loan of 
                        more than $4,000,000 and not more than 
                        $12,000,000.
                    (B) Payment by federal government.--The 
                Administrator shall--
                            (i) for any covered loan that is made to an 
                        eligible recipient with not more than 500 full-
                        time employees, pay the applicable origination 
                        fee described in subparagraph (A); and
                            (ii) for any covered loan of not more than 
                        $10,000,000 that is made to an eligible 
                        recipient with more than 500 full-time 
                        employees, pay 50 percent of the amount of the 
                        applicable origination fee described in 
                        subparagraph (A).
                    (C) Payment by eligible recipient.--After any 
                applicable payments by the Administrator under 
                subparagraph (B), the eligible recipient of a covered 
                loan--
                            (i) shall be responsible for paying the 
                        remainder of any applicable origination fee 
                        under subparagraph (A); and
                            (ii) may finance the amount of the 
                        applicable origination fee as part of the 
                        covered loan amount, with such origination fee 
                        amount not counting toward the limitation on 
                        covered loan amounts described in paragraph 
                        (2)(A).
            (7) Streamlined procedures.--The Administrator and the 
        Secretary shall establish streamlined application and loan 
        approval procedures for eligible recipients with not more than 
        500 full-time employees, including by allowing an eligible 
        recipient to use an existing application submitted to a lender 
        for the loan program under section 7(a)(36) of the Small 
        Business Act (15 U.S.C. 636(a)(36)) and update the application 
        as necessary for purposes of applying for a covered loan.
            (8) Application.--
                    (A) Availability.--The Administrator shall make 
                available the application for a covered loan in the 10 
                most commonly spoken languages, other than English, in 
                the United States, which shall include Spanish, 
                Mandarin, Cantonese, Japanese, and Korean.
                    (B) Guidance.--Not later than 15 days after the 
                date of enactment of this Act, the Administrator and 
                the Secretary shall issue guidance to allow lenders to 
                receive applications for covered loans.
                    (C) Deadline for response.--A lender that receives 
                an application for a covered loan shall--
                            (i) not later than 2 days after submission 
                        of the application to the Administrator, notify 
                        the applicant that the lender submitted the 
                        application and provide the confirmation 
                        number; and
                            (ii) not later than 15 days after approving 
                        the application, disburse the funds to the 
                        applicant.
                    (D) Format.--The application for a covered loan 
                shall be similar to the application used for a loan 
                made under section 7(a)(36) of the Small Business Act 
                (15 U.S.C. 636(a)(36)), with additional details 
                requested by the Administrator as necessary.
                    (E) Application windows.--The Administrator shall 
                make efforts to ensure that underserved borrowers that 
                are eligible recipients receive covered loans, 
                including by establishing exclusive application windows 
                for those eligible recipients.
            (9) Limitation on number of loans.--An eligible recipient 
        may receive not more than 2 covered loans, the requested 
        aggregate amount of which shall not exceed the limitation on 
        covered loan amounts described in paragraph (2)(A).
            (10) Waiver of prepayment penalty.--Notwithstanding any 
        other provision of law, there shall be no prepayment penalty 
        for any payment made on a covered loan.
            (11) United states operations.--A covered loan may only be 
        used for expenses related to the operations of an eligible 
        recipient carried out in the United States, including any 
        territory or possession of the United States and operations 
        carried out off of the United States coastline.
    (e) Lenders.--
            (1) Existing ppp lenders.--A lender that is approved to 
        make loans under section 7(a)(36) of the Small Business Act (15 
        U.S.C. 636(a)(36)) and is approved by the Administrator and the 
        Secretary may make and approve covered loans.
            (2) Additional lenders.--The authority to make covered 
        loans shall be extended to additional lenders determined by the 
        Administrator and the Secretary to have the necessary 
        qualifications to process, close, disburse, and service loans 
        made with the guarantee of the Administration.
            (3) Lenders serving underserved borrowers.--In approving 
        lenders to make covered loans, the Administrator and the 
        Secretary shall give priority to lenders that are community 
        development financial institutions with lower lending volumes, 
        minority depository institutions, mission-based nonprofit 
        lenders, nonbank lenders, and other financial institutions that 
        disproportionately serve underserved borrowers.
            (4) Resale of loans.--A lender of a covered loan may sell 
        the covered loan to a third party.
            (5) Sale of participation in covered loans.--A lender of a 
        covered loan may sell a participation in the covered loan to a 
        non-authorized lender in an amount that is not more than 85 
        percent of the covered loan.
            (6) Agent disclosure.--In order to be eligible to obtain a 
        fee, any agent shall be disclosed to the lender and the 
        Administrator at the time of application for a covered loan.
            (7) Capital and liquidity requirements.--Until December 31, 
        2021, the amount of a covered loan made by a lender shall be 
        disregarded by Federal regulators for the purpose of 
        calculating regulatory capital and liquidity requirements.
    (f) Borrower Requirements.--
            (1) Certification.--An eligible recipient applying for a 
        covered loan shall submit a good faith certification that the 
        eligible recipient suffered a decline in gross receipts of not 
        less than 25 percent--
                    (A) during an 8-week period during the period 
                beginning on February 15, 2020, and ending on July 31, 
                2020, relative to a comparable 8-week period during--
                            (i) the period beginning on January 1, 
                        2020, and ending on March 31, 2020; or
                            (ii) 2019; or
                    (B) during a calendar or fiscal quarter during the 
                period beginning on February 15, 2020, and ending on 
                July 31, 2020, relative to the same calendar or fiscal 
                quarter in 2019.
            (2) Accounting method.--An eligible recipient may calculate 
        the decline in gross receipts described in paragraph (1) using 
        the cash or accrual accounting method.
            (3) Adjustments.--The Administrator, in consultation with 
        the Secretary, shall provide guidance on appropriate 
        adjustments to the terms under this subsection for eligible 
        recipients seeking a covered loan that are fiscal year 
        taxpayers or seasonal businesses.
            (4) Restrictions.--
                    (A) In general.--The Administrator may enter into 
                agreements to guarantee covered loans made to eligible 
                recipients only if the Administrator determines that 
                the agreement provides that, until the date that is 12 
                months after the date on which the covered loan is no 
                longer outstanding--
                            (i) the eligible recipient or an affiliate 
                        of the eligible recipient shall not purchase an 
                        equity security that is listed on a national 
                        securities exchange of the eligible recipient 
                        or any parent company of the eligible 
                        recipient, except to the extent required under 
                        a contractual obligation in effect as of the 
                        date of enactment of this Act;
                            (ii) the eligible recipient shall not pay 
                        dividends or make other capital distributions 
                        with respect to the common stock of the 
                        eligible recipient; and
                            (iii) the restrictions on certain employee 
                        compensation described in section 4004(a) of 
                        the CARES Act (Public Law 116-136) apply to 
                        officers and employees of the eligible 
                        recipient.
                    (B) Exceptions.--
                            (i) Dividends.--Subparagraph (A)(ii) shall 
                        not apply to any eligible recipient that is a 
                        real estate investment trust (as defined under 
                        section 856 of the Internal Revenue Code of 
                        1986) for the taxable year in which the 
                        distribution is made to the extent that such 
                        entity distributes no more than 100 percent of 
                        real estate investment trust taxable income (as 
                        defined in section 857(b)(2) of such Code, 
                        determined without regard to the deduction for 
                        dividends paid (as defined in section 561 of 
                        such Code)) during such taxable year.
                            (ii) Distributions.--Notwithstanding 
                        subparagraph (A), during the period described 
                        in that subparagraph an eligible recipient that 
                        is an S-corporation or a limited liability 
                        company may provide a distribution to pay 
                        income taxes.
            (5) Emergency relief funds.--
                    (A) In general.--Except as provided in subparagraph 
                (B), an eligible recipient applying for a covered loan 
                may not receive or have received any assistance under 
                4003 of the CARES Act (Public Law 116-136) for any 
                purpose.
                    (B) Return of funds.--An eligible recipient that 
                received assistance under section 4003 of the CARES Act 
                (Public Law 116-136) may apply for a covered loan if 
                the eligible recipient returns the funds received under 
                such section 4003.
            (6) Business concerns with more than 1 physical location.--
        A business concern that employs not more than 500 full-time 
        employees per physical location of the business concern and 
        that is assigned a North American Industry Classification 
        System code beginning with 72 at the time of disbursal shall be 
        eligible to receive a covered loan if the number of full-time 
        employees, in the aggregate, does not exceed 5,000.
            (7) Waiver of affiliation rules.--The provisions applicable 
        to affiliations under section 121.103 of title 13, Code of 
        Federal Regulations, or any successor regulation, are waived 
        with respect to eligibility for a covered loan for--
                    (A) any eligible recipient with not more than 500 
                employees that is assigned a North American Industry 
                Classification System code beginning with 72;
                    (B) any eligible recipient operating as a 
                franchise;
                    (C) any eligible recipient that receives financial 
                assistance from a company licensed under section 301 of 
                the Small Business Investment Act of 1958 (15 U.S.C. 
                681); and
                    (D) any eligible recipient with not more than 500 
                full-time employees that is not more than 50 percent 
                owned or controlled by another entity.
            (8) Calculation of full-time employees.--For purposes of 
        determining the number of full-time employees of an eligible 
        recipient as of February 15, 2020--
                    (A) any employee working not fewer than 30 hours 
                per week shall be considered a full-time employee; and
                    (B) any employee working not fewer than 10 hours 
                and fewer than 30 hours per week shall be counted as 
                one-half of a full-time employee.
            (9) Credit elsewhere.--During the covered period, an 
        eligible recipient is not required to show that the eligible 
        recipient is unable to obtain credit elsewhere, as defined in 
        section 3(h) of the Small Business Act (15 U.S.C. 632(h)).
            (10) Subordination.--Any covered loan made to an eligible 
        recipient shall be subordinate to any liability incurred by the 
        eligible recipient before February 15, 2020.
            (11) Restrictions for prior bankruptcy.--A lender may deny 
        an application for a covered loan submitted by an eligible 
        recipient if, during the 7-year period preceding the date of 
        the application, the eligible recipient or a person that owns 
        or controls the eligible recipient filed a petition for 
        bankruptcy under chapter 7 or 13 of title 11, United States 
        Code.
    (g) Use of Funds.--
            (1) In general.--An eligible recipient of a covered loan 
        may use the proceeds for allowable expenses described in 
        paragraph (2).
            (2) Allowable expenses.--The expenses described in this 
        paragraph are--
                    (A) payroll costs for employees and furloughed 
                employees, including--
                            (i) costs for continuation coverage 
                        provided pursuant to part 6 of subtitle B of 
                        title I of the Employee Retirement Income 
                        Security Act of 1974 (other than under section 
                        609), title XXII of the Public Health Service 
                        Act, section 4980B of the Internal Revenue Code 
                        of 1986 (other than subsection (f)(1) of such 
                        section insofar as it relates to pediatric 
                        vaccines), or section 8905a of title 5, United 
                        States Code, or under a State program that 
                        provides comparable continuation coverage, 
                        other than coverage under a health flexible 
                        spending arrangement under a cafeteria plan 
                        within the meaning of section 125 of the 
                        Internal Revenue Code of 1986; or
                            (ii) any other non-cash benefit;
                    (B) rent;
                    (C) utilities;
                    (D) mortgage interest payments on existing 
                mortgages as of February 15, 2020;
                    (E) scheduled interest payments on other scheduled 
                debt as of February 15, 2020;
                    (F) costs related to personal protective equipment;
                    (G) payments of principal on outstanding loans;
                    (H) payments made to independent contractors, as 
                reported on Form-1099 MISC;
                    (I) other ordinary and necessary business expenses, 
                including--
                            (i) settling existing debts owed to vendors 
                        and replenishing inventory;
                            (ii) franchise fees;
                            (iii) hotel management fees;
                            (iv) maintenance expenses;
                            (v) administrative costs;
                            (vi) taxes;
                            (vii) operating leases; and
                            (viii) any other capital expenditure or 
                        expense required under any State, local, or 
                        Federal law or guideline related to social 
                        distancing.
            (3) Prohibited expenses.--An eligible recipient may not use 
        the proceeds of a covered loan--
                    (A) to purchase real estate;
                    (B) for payments of interest or principal on loans 
                originated after February 15, 2020;
                    (C) to invest or re-lend funds;
                    (D) for contributions or expenditures to, or on 
                behalf of, any political party, party committee, or 
                candidate for elective office; or
                    (E) for any other use as may be prohibited by the 
                Administrator.
    (h) Loan Disbursal.--
            (1) Initial disbursal.--During the initial 14-day period in 
        which lenders make and approve covered loans, the lenders shall 
        be limited to making covered loans to eligible recipients--
                    (A) with fewer than 50 full-time employees for the 
                first 7-day period; and
                    (B) with fewer than 500 full-time employees for the 
                second 7-day period.
            (2) Report.--Not later than the later of the date that is 
        180 days after the date on which amounts made available to 
        carry out this Act are expended or July 31, 2021, the Inspector 
        General of the Administration shall submit to Congress a report 
        evaluating whether small business concerns (as defined in 
        section 3 of the Small Business Act (15 U.S.C. 632)), minority-
        owned eligible recipients, and other underserved borrowers are 
        treated fairly in the process of making and approving covered 
        loans.
    (i) Maturity for Loans With Remaining Balance After Application for 
Forgiveness.--With respect to a covered loan that has a remaining 
balance after a reduction based on the loan forgiveness amount under 
subsection (j)--
            (1) the remaining balance shall continue to be guaranteed 
        by the Administration under this section; and
            (2) the covered loan shall have a maximum maturity of 78 
        months from the date on which the borrower applies for loan 
        forgiveness under that subsection.
    (j) Loan Forgiveness.--
            (1) In general.--Except as otherwise provided in this 
        subsection, an eligible recipient of a covered loan that is not 
        a nonprofit organization shall be eligible for forgiveness for 
        expenses described in subparagraphs (A) through (F) of 
        subsection (g)(2) incurred during the covered period using 
        proceeds of the covered loan in an amount equal to the product 
        obtained by multiplying--
                    (A) the product obtained by multiplying--
                            (i) the percentage decline in revenues of 
                        the eligible recipient--
                                    (I) if the covered period does not 
                                extend past March 31, 2021, between the 
                                total revenue received by the business 
                                during calendar year 2020 and the total 
                                revenue received by the business during 
                                calendar year 2019; or
                                    (II) between the total revenue 
                                during the 6-month period following the 
                                date of the origination of the covered 
                                loan and the total revenue during a 
                                comparable 6-month period during the 
                                12-month period preceding the date of 
                                the origination of the covered loan; 
                                and
                            (ii) .90; and
                    (B)(i) for an eligible recipient with not more than 
                500 employees, the sum of the expenses of the eligible 
                recipient described in subparagraphs (A) through (F) of 
                subsection (g)(2) paid during the covered period; or
                    (ii) for an eligible recipient with more than 500 
                and not more than 5,000 employees, the sum of--
                            (I) the benefits described in clauses (i) 
                        and (ii) of subsection (g)(2)(A) of this 
                        section and the payments described in subitems 
                        (CC) through (GG) of section 
                        7(a)(36)(A)(viii)(I)(aa) of the Small Business 
                        Act (15 U.S.C. 636(a)(36)(A)(viii)(I)(aa)) that 
                        were paid during the covered period; and
                            (II) the expenses described in 
                        subparagraphs (B) through (F) of subsection 
                        (g)(2) that were paid during the covered 
                        period.
            (2) Loan forgiveness for small nonprofits.--A nonprofit 
        organization described in subsection (a)(5)(B) with not more 
        than 500 full-time employees that is an eligible recipient of a 
        covered loan shall be eligible for forgiveness for expenses 
        described in subparagraphs (A) through (F) of subsection (g)(2) 
        using, at the election of the nonprofit organization--
                    (A) the amount obtained using the formula described 
                in paragraph (1), except that gross receipts shall not 
                include donations, grants, dues, and investment income; 
                or
                    (B) the amount obtained using the formula described 
                in paragraph (1), except that the number in 
                subparagraph (A)(ii) of such paragraph shall be--
                            (i) .7 for a nonprofit organization with 
                        not more than 50 full-time employees; and
                            (ii) .2 for a nonprofit organization with 
                        not fewer than 50 and not more than 500 full-
                        time employees.
            (3) Prohibition on forgiveness.--Any covered loan made to 
        an eligible recipient that is publicly traded, is a nonprofit 
        organization described in section 501(c)(7) of the Internal 
        Revenue Code, or is an eligible recipient described in 
        subsection (f)(7)(D) shall not be eligible for loan forgiveness 
        under this subsection.
            (4) Limitation on amount of forgiveness.--
                    (A) In general.--The amount of all covered loans 
                made to an eligible recipient that may be forgiven 
                under this subsection shall not exceed the total losses 
                incurred by the eligible recipient in the taxable year 
                2020.
                    (B) Application of related party payments.--The 
                Secretary shall issue regulations that provide that, 
                for purposes of the loss calculation under subparagraph 
                (A)--
                            (i) with respect to an eligible recipient 
                        of a covered loan with not fewer than 500 full-
                        time employees, related party transactions are 
                        prohibited from counting toward the loss 
                        calculation; and
                            (ii) with respect to an eligible recipient 
                        of a covered loan with not more than 500 full-
                        time employees, any related party payments made 
                        during the covered period cannot be greater 
                        than related party payments made during taxable 
                        year 2019.
                    (C) Capital losses.--For purposes of the loss 
                calculation under subparagraph (A), capital losses from 
                the sale of assets or deductions for guaranteed 
                payments to partners in partnerships or owners in S 
                corporations shall not count toward the loss 
                calculation.
                    (D) Limitation on ppe expenses.--An eligible 
                recipient may only receive forgiveness for personal 
                protective equipment expenses described in subsection 
                (g)(2)(F) of not more than $5,000.
            (5) No limits based on percentage of funds used for certain 
        expenses.--The Administrator or the Secretary shall not place 
        limitations on forgiveness under this subsection based on the 
        percentage of covered loan proceeds that are used for specific 
        expenses described in subsection (g)(2).
            (6) Hold harmless.--If a lender approved to make covered 
        loans has received the required documentation under this 
        section from an applicant attesting that the applicant has 
        accurately verified the eligibility, gross receipts, and 
        expenses of the applicant during the covered period--
                    (A) an enforcement action may not be taken against 
                the lender under section 47(e) of the Small Business 
                Act (15 U.S.C. 657t(e)) relating to loan forgiveness 
                for those expenses; and
                    (B) the lender shall not be subject to any 
                penalties by the Administrator relating to loan 
                forgiveness for the expenses.
            (7) Treatment of forgiven amounts.--
                    (A) In general.--Section 108(a)(1) of the Internal 
                Revenue Code of 1986 is amended by striking ``or'' at 
                the end of subparagraph (D), by striking the period at 
                the end of subparagraph (E)(ii) and inserting ``, or'', 
                and by adding at the end the following new 
                subparagraph:
                    ``(F) the indebtedness discharged is a covered loan 
                (as defined in section 4(a) of the RESTART Act) 
                discharged under section 4(j) of such Act.''.
                    (B) Reduction of tax attributes.--Section 108(b)(1) 
                of such Code is amended by striking ``or (C)'' and 
                inserting ``, (C), or (F) (after application of 
                subsection (j)(i))''.
                    (C) Limitation.--Section 108 of such Code is 
                amended by adding at the end the following new 
                subsection:
    ``(j) Special Rules for Discharges of Covered Loans.--
            ``(1) Inclusion of excess amounts.--
                    ``(A) In general.--In the case of any taxpayer to 
                which subsection (a)(1)(F) applies, the gross income of 
                such taxpayer for any taxable year in the applicable 
                period shall be increased by the product of--
                            ``(i) 20 percent, and
                            ``(ii) so much of the amount excluded under 
                        subsection (a)(1)(F) as exceeds $250,000.
                    ``(B) Applicable period.--For purposes of 
                subparagraph (A), the term `applicable period' means 
                the 5 taxable-year period beginning with the taxable 
                year in which the discharge occurs.
            ``(2) Application to tax attributes.--For purposes of 
        applying subsection (b), the amount taken into account as 
        excluded from income under subsection (a)(1)(F) shall not 
        exceed $250,000.''.
                    (D) Effective date.--The amendments made by this 
                paragraph shall apply to discharges of indebtedness 
                after the date of the enactment of this Act.
            (8) Coordination with employee retention tax credit.--
        Section 2301(g) of the CARES Act (Public Law 116-136) is 
        amended to read as follows:
    ``(g) Election To Not Take Certain Wages Into Account.--
            ``(1) In general.--This section shall not apply to 
        qualified wages paid by an eligible employer with respect to 
        which such employer makes an election (at such time and in such 
        manner as the Secretary may prescribe) to have this section not 
        apply to such wages.
            ``(2) Coordination with restart loans.--The Secretary, in 
        consultation with the Administrator of the Small Business 
        Administration, shall issue guidance providing that payroll 
        costs paid or incurred during the covered period shall not fail 
        to be treated as qualified wages under this section by reason 
        of an election under paragraph (1) to the extent that a covered 
        loan of the eligible employer is not forgiven by reason of a 
        decision under section 3(j) of the RESTART Act. Terms used in 
        the preceding sentence which are also used in section 3 of such 
        Act shall have the same meaning as when used in such 
        section.''.
    (k) Special Rules for Seasonal and New Businesses.--
            (1) In general.--The Administrator and the Secretary shall 
        develop special rules and procedures for eligibility, 
        calculation of full-time employees, loan terms, and loan 
        forgiveness for--
                    (A) covered loans made to eligible recipients that 
                are seasonal that do not have sufficient revenue to 
                fully benefit from assistance provided under this 
                section; and
                    (B) covered loans made to eligible recipients 
                formed after January 1, 2019, that do not have 
                sufficient revenue to fully benefit from assistance 
                provided under this section.
            (2) Loan amount.--The Administrator and the Secretary shall 
        develop terms with respect to the loan amount of a covered loan 
        for the eligible recipients described in paragraph (1) to 
        provide consistent support to those eligible recipients 
        relative to an existing or a non-seasonal eligible recipient.
            (3) Prohibition.--An eligible recipient formed after 
        January 1, 2019, shall not be eligible for loan forgiveness 
        under this section.
    (l) Transparency.--
            (1) Reporting.--The Administrator shall collect and publish 
        information in searchable and downloadable format on eligible 
        recipients of covered loans, including--
                    (A) the name of each eligible recipient with not 
                fewer than 50 full-time employees that received a 
                covered loan, which shall be published on a monthly 
                basis;
                    (B) aggregate demographic information of applicants 
                that applied and applicants that were approved for a 
                covered loan, which shall be published on a weekly 
                basis;
                    (C) the number of loan applications received and 
                total loan amount requested, the number of loan 
                applications awaiting disposition and the total loan 
                amount awaiting disposition, the number of loan 
                applications rejected and the total loan amount 
                rejected, and the number of loan applications approved 
                and the total loan amount approved by each lender, 
                which shall be published on a weekly basis;
                    (D) aggregate total loan volume approved broken 
                down by industry and by State, which shall be published 
                on a weekly basis;
                    (E) details on the number of full-time equivalent 
                employees, loan size, loan terms, industry, and 
                headquarters location of each eligible recipient of a 
                covered loan, which shall be published on a monthly 
                basis; and
                    (F) the name of and loan amount forgiven for each 
                eligible recipient of a covered loan with not fewer 
                than 50 full-time employees, with aggregate loan amount 
                forgiveness data provided for all eligible recipients 
                of covered loans, which shall be published in a final 
                report not later than December 31, 2022.
            (2) Multiple applications.--To the extent possible, the 
        Administrator should endeavor to de-duplicate multiple 
        applications for a covered loan submitted by the same applicant 
        to different lenders for purposes of public reporting.
    (m) Separation of Funds and Bankruptcy Treatment.--
            (1) Separation of funds.--An eligible recipient of a 
        covered loan shall--
                    (A) separately account for, and not commingle with 
                other funds, the proceeds of the covered loan; and
                    (B) account in detail for the use of the proceeds.
            (2) Bankruptcy treatment.--
                    (A) In general.--If an eligible recipient of a 
                covered loan is a debtor in a case under chapter 7 or 
                13 of title 11, United States Code, and the covered 
                loan is still outstanding on the date of the 
                commencement of the case--
                            (i) any interest of the eligible recipient 
                        in the proceeds of the covered loan shall not 
                        be included in the property of the estate; and
                            (ii) the amount of the proceeds of the 
                        covered loan that were not expended on 
                        allowable expenses described in subsection 
                        (g)(2) or forgiven under subjection (j) shall 
                        be transferred to the Federal Government.
                    (B) Unrecovered amounts on covered loans.--Nothing 
                in subparagraph (A) shall preclude the Federal 
                Government from pursuing a claim in a case under 
                chapter 7 or 13 of title 11, United States Code, with 
                respect to the difference, if any, between the amount 
                due to the Federal Government on a covered loan and the 
                amount that was transferred under subparagraph (A)(ii).
    (n) Authorization of Appropriations.--There is authorized to be 
appropriated to the Administration--
            (1) such sums as may be necessary to carry out this 
        section, to remain available until December 31, 2020; and
            (2) $150,000,000, to remain available until expended, for 
        administrative purposes to update technologies to allow for 
        digital case management, electronic submissions, and increased 
        telecommunications related to the program under this section.
                                 <all>
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