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[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 4607 Introduced in Senate (IS)]

<DOC>

116th CONGRESS
  2d Session
                                S. 4607

  To provide forgiveness for paycheck protection program and economic 
 injury disaster loans related to COVID-19 made to businesses that are 
 located in an area for which the President declared a major disaster 
 related to Hurricane Laura or Hurricane Sally, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           September 17, 2020

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

_______________________________________________________________________

                                 A BILL

 
  To provide forgiveness for paycheck protection program and economic 
 injury disaster loans related to COVID-19 made to businesses that are 
 located in an area for which the President declared a major disaster 
 related to Hurricane Laura or Hurricane Sally, 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 ``Disaster Relief for Southeastern 
Small Businesses Act of 2020''.

SEC. 2. LOAN FORGIVENESS FOR BUSINESSES LOCATED IN MAJOR DISASTER 
              AREAS.

    (a) Definitions.--In this section:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Small Business Administration.
            (2) Covered disaster.--The term ``covered area'' means an 
        area for which the President declared a major disaster under 
        section 401 of the Robert T. Stafford Disaster Relief and 
        Emergency Assistance Act (42 U.S.C. 5170) related to Hurricane 
        Laura or Hurricane Sally.
            (3) Covered entity.--The term ``covered entity'' means any 
        entity--
                    (A) the principal place of business of which is 
                located in a covered area; and
                    (B) that received a covered loan.
            (4) Covered loan.--The term ``covered loan'' means a loan 
        made under--
                    (A) section 7(a)(36) of the Small Business Act (15 
                U.S.C. 636(a)(36)); or
                    (B) section 7(b)(2) of the Small Business Act (15 
                U.S.C. 636(b)(2)) related to COVID-19.
    (b) Loan Forgiveness.--
            (1) In general.--Notwithstanding section 1106 of the CARES 
        Act (15 U.S.C. 9005), a covered entity shall receive 
        forgiveness of indebtedness on a covered loan in an amount 
        equal to the covered loan amount if the covered entity submits 
        to the lender of the covered loan a one-page online or paper 
        form, to be established by the Administrator not later than 7 
        days after the date of enactment of this Act, that attests that 
        the covered entity used the covered loan proceeds for eligible 
        activities as described in paragraph (a)(36) or (b)(2) of 
        section 7 of the Small Business Act (15 U.S.C. 636), as 
        applicable.
            (2) Review and audit.--The Administrator may review and 
        audit covered loans for which forgiveness is provided to 
        covered entities under paragraph (1) using the same process 
        used for loans made under section 7(a)(36) of the Small 
        Business Act (15 U.S.C. 636(a)(36)).
            (3) Taxability.--For purposes of the Internal Revenue Code 
        of 1986--
                    (A) any amount which (but for this paragraph) would 
                be includible in gross income of the covered entity by 
                reason of forgiveness described in paragraph (1) shall 
                be excluded from gross income; and
                    (B) no deduction shall be denied or reduced, no tax 
                attribute shall be reduced, and no basis increase shall 
                be denied, by reason of the exclusion from gross income 
                provided by subparagraph (A).
    (c) Inapplicability of EIDL Advance Amount to PPP Loan Forgiveness 
Amount.--Notwithstanding paragraph (6) of section 1110(e) of the CARES 
Act (15 U.S.C. 9009(e)), with respect to a covered entity that received 
an advance grant under such section 1110(e), the advance amount shall 
not be reduced from the loan forgiveness amount for a loan for payroll 
costs made to the covered entity under section 7(a)(36) of the Small 
Business Act (15 U.S.C. 636(a)(36)).
    (d) Applicability.--This Act shall apply with respect to covered 
loans and advance grants under section 1110(e) of the CARES Act (15 
U.S.C. 9009(e)) made to a covered entity before, on, or after the date 
of enactment of this Act.
                                 <all>
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