II 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Disaster Relief for 

5 Southeastern Small Businesses Act of 2020’’. 


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•S 4607 IS

1 SEC. 2. LOAN FORGIVENESS FOR BUSINESSES LOCATED IN 

2 MAJOR DISASTER AREAS. 

3 (a) DEFINITIONS.—In this section: 

4 (1) ADMINISTRATOR.—The term ‘‘Adminis5 trator’’ means the Administrator of the Small Busi6 ness Administration. 

7 (2) COVERED DISASTER.—The term ‘‘covered 

8 area’’ means an area for which the President de9 clared a major disaster under section 401 of the 

10 Robert T. Stafford Disaster Relief and Emergency 

11 Assistance Act (42 U.S.C. 5170) related to Hurri12 cane Laura or Hurricane Sally. 

13 (3) COVERED ENTITY.—The term ‘‘covered en14 tity’’ means any entity— 

15 (A) the principal place of business of which 

16 is located in a covered area; and 

17 (B) that received a covered loan. 

18 (4) COVERED LOAN.—The term ‘‘covered loan’’ 

19 means a loan made under— 

20 (A) section 7(a)(36) of the Small Business 

21 Act (15 U.S.C. 636(a)(36)); or 

22 (B) section 7(b)(2) of the Small Business 

23 Act (15 U.S.C. 636(b)(2)) related to COVID– 

24 19. 

25 (b) LOAN FORGIVENESS.— 


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•S 4607 IS

1 (1) IN GENERAL.—Notwithstanding section 

2 1106 of the CARES Act (15 U.S.C. 9005), a cov3 ered entity shall receive forgiveness of indebtedness 

4 on a covered loan in an amount equal to the covered 

5 loan amount if the covered entity submits to the 

6 lender of the covered loan a one-page online or paper 

7 form, to be established by the Administrator not 

8 later than 7 days after the date of enactment of this 

9 Act, that attests that the covered entity used the 

10 covered loan proceeds for eligible activities as de11 scribed in paragraph (a)(36) or (b)(2) of section 7 

12 of the Small Business Act (15 U.S.C. 636), as appli13 cable. 

14 (2) REVIEW AND AUDIT.—The Administrator 

15 may review and audit covered loans for which for16 giveness is provided to covered entities under para17 graph (1) using the same process used for loans 

18 made under section 7(a)(36) of the Small Business 

19 Act (15 U.S.C. 636(a)(36)). 

20 (3) TAXABILITY.—For purposes of the Internal 

21 Revenue Code of 1986— 

22 (A) any amount which (but for this para23 graph) would be includible in gross income of 

24 the covered entity by reason of forgiveness deVerDate Sep 11 2014 18:03 Sep 24, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S4607.IS S4607

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•S 4607 IS

1 scribed in paragraph (1) shall be excluded from 

2 gross income; and 

3 (B) no deduction shall be denied or re4 duced, no tax attribute shall be reduced, and no 

5 basis increase shall be denied, by reason of the 

6 exclusion from gross income provided by sub7 paragraph (A). 

8 (c) INAPPLICABILITY OF EIDL ADVANCE AMOUNT

9 TO PPP LOAN FORGIVENESS AMOUNT.—Notwithstanding 

10 paragraph (6) of section 1110(e) of the CARES Act (15 

11 U.S.C. 9009(e)), with respect to a covered entity that re12 ceived an advance grant under such section 1110(e), the 

13 advance amount shall not be reduced from the loan for14 giveness amount for a loan for payroll costs made to the 

15 covered entity under section 7(a)(36) of the Small Busi16 ness Act (15 U.S.C. 636(a)(36)). 

17 (d) APPLICABILITY.—This Act shall apply with re18 spect to covered loans and advance grants under section 

19 1110(e) of the CARES Act (15 U.S.C. 9009(e)) made to 

20 a covered entity before, on, or after the date of enactment 

21 of this Act. 

Æ 


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