II 

116TH CONGRESS 

2D SESSION S. 4818 

To provide assistance to small businesses affected by COVID–19, and for 

other purposes. 

IN THE SENATE OF THE UNITED STATES 

OCTOBER 20 (legislative day, OCTOBER 19), 2020 

Mr. CARDIN (for himself, Mrs. SHAHEEN, Mr. SCHUMER, Ms. ROSEN, Ms. 

DUCKWORTH, Mr. COONS, Ms. HIRONO, Ms. CANTWELL, Mr. MARKEY, 

Mr. BOOKER, Ms. KLOBUCHAR, Mr. VAN HOLLEN, Mr. BLUMENTHAL, 

Mrs. GILLIBRAND, Mrs. MURRAY, Mr. KING, Mr. REED, Mr. MENENDEZ, 

Ms. CORTEZ MASTO, Ms. BALDWIN, Mr. KAINE, Mr. BROWN, Ms. WARREN, Mr. DURBIN, Mr. WYDEN, Mr. MERKLEY, Mr. HEINRICH, Mr. 

BENNET, Mr. WHITEHOUSE, Mr. UDALL, Mr. SCHATZ, Ms. STABENOW, 

Mrs. FEINSTEIN, and Mr. PETERS) introduced the following bill; which 

was read twice and referred to the Committee on Finance 

A BILL 

To provide assistance to small businesses affected by 

COVID–19, 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; TABLE OF CONTENTS; DEFINI4 TIONS. 

5 (a) SHORT TITLE.—This Act may be cited as the 

6 ‘‘Heroes Small Business Lifeline Act’’. 

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1 (b) TABLE OF CONTENTS.—The table of contents for 

2 this Act is as follows: 

Sec. 1. Short title; table of contents; definitions. 

TITLE I—FUNDING PROVISIONS 

Sec. 101. Amount authorized for commitments. 

Sec. 102. Funding for the Paycheck Protection Program. 

Sec. 103. Direct appropriations. 

Sec. 104. Emergency designation. 

TITLE II—MODIFICATIONS TO THE PAYCHECK PROTECTION 

PROGRAM 

Sec. 201. Periods for loan forgiveness and application submission. 

Sec. 202. Supplemental covered loans for certain business concerns. 

Sec. 203. Certifications and documentation for streamlined forgiveness of covered loans. 

Sec. 204. Eligibility of certain organizations for loans under the Paycheck Protection Program. 

Sec. 205. Limit on aggregate loan amount for eligible recipients with more than 

1 physical location. 

Sec. 206. Allowable uses of covered loans; forgiveness. 

Sec. 207. Documentation required for certain eligible recipients. 

Sec. 208. Exclusion of certain publicly traded and foreign entities. 

Sec. 209. Election of 12-week period by seasonal employers. 

Sec. 210. Inclusion of certain refinancing in nonrecourse requirements. 

Sec. 211. Credit elsewhere requirements. 

Sec. 212. Prohibition on receiving duplicative amounts for payroll costs. 

Sec. 213. Application of certain terms through life of covered loan. 

Sec. 214. Interest calculation on covered loans. 

Sec. 215. Reimbursement for processing. 

Sec. 216. Duplication requirements for economic injury disaster loan recipients. 

Sec. 217. Reapplication for and modification to Paycheck Protection Program. 

Sec. 218. Treatment of certain criminal violations. 

Sec. 219. Eligibility and treatment of Farm Credit System institutions. 

TITLE III—TAX PROVISIONS 

Sec. 301. Improved coordination between Paycheck Protection Program and 

employee retention tax credit. 

TITLE IV—COVID–19 ECONOMIC INJURY DISASTER LOAN 

PROGRAM REFORM 

Sec. 401. Sense of Congress. 

Sec. 402. Notices to applicants for economic injury disaster loans or advances. 

Sec. 403. Modifications to emergency EIDL advances. 

Sec. 404. Data transparency, verification, and notices for economic injury disaster loans. 

Sec. 405. Lifeline funding for small business continuity, adaptation, and resiliency. 

Sec. 406. Modifications to economic injury disaster loans. 

Sec. 407. Principal and interest payments for certain disaster loans. 

Sec. 408. Training. 

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Sec. 409. Outreach plan. 

Sec. 410. Report on best practices. 

Sec. 411. Extension of period of availability for administrative funds. 

TITLE V—MICRO-SBIC AND EQUITY INVESTMENT ENHANCEMENT 

Sec. 501. Micro-SBIC Program. 

TITLE VI—MISCELLANEOUS 

Sec. 601. Repeal of EIDL advance deduction. 

Sec. 602. Extension of the debt relief program. 

Sec. 603. Modifications to 7(a) loan programs. 

Sec. 604. Flexibility in deferral of payments of 7(a) loans. 

Sec. 605. Recovery assistance under the microloan program. 

Sec. 606. Maximum loan amount for 504 loans. 

Sec. 607. Temporary fee reductions. 

Sec. 608. Extension of participation in 8(a) program. 

Sec. 609. Report on minority, women, and rural lending. 

Sec. 610. Comprehensive program guidance. 

Sec. 611. Reports on Paycheck Protection Program. 

Sec. 612. Prohibiting conflicts of interest for small business programs under 

the CARES Act. 

Sec. 613. Inclusion of SCORE and Veteran Business Outreach Centers in entrepreneurial development programs. 

Sec. 614. Clarification of use of CARES Act funds for small business development centers. 

Sec. 615. Funding for the Office of Inspector General of the Small Business 

Administration. 

Sec. 616. Extension of waiver of matching funds requirement under the Women’s Business Center program. 

Sec. 617. Access to Small Business Administration information and databases. 

Sec. 618. Small business local relief program. 

Sec. 619. Grants for shuttered venue operators. 

Sec. 620. Support for restaurants. 

TITLE VII—MINORITY BUSINESS DEVELOPMENT AGENCY AND 

COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS FUND 

Sec. 701. Definitions. 

Subtitle A—Codification of the Minority Business Development Agency 

Sec. 711. Short title. 

Sec. 712. Findings and purposes. 

Sec. 713. Minority Business Development Agency. 

PART I—EXISTING INITIATIVES

SUBPART A—MARKET DEVELOPMENT, RESEARCH, AND INFORMATION

Sec. 721. Private sector development. 

Sec. 722. Public sector development. 

Sec. 723. Research and information. 

SUBPART B—MINORITY BUSINESS DEVELOPMENT CENTER PROGRAM

Sec. 731. Purpose. 

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Sec. 732. Definitions. 

Sec. 733. Establishment. 

Sec. 734. Cooperative agreements. 

Sec. 735. Minimizing disruptions to existing business centers program. 

Sec. 736. Publicity. 

Sec. 737. Emergency appropriations. 

PART II—NEW INITIATIVES TO PROMOTE ECONOMIC RESILIENCY FOR

MINORITY BUSINESSES

Sec. 741. Annual diverse business forum on capital formation. 

Sec. 742. Agency study on alternative financing solutions. 

Sec. 743. Educational development relating to management and entrepreneurship. 

PART III—ADMINISTRATIVE AND OTHER POWERS OF THE AGENCY; 

MISCELLANEOUS PROVISIONS

Sec. 751. Administrative powers. 

Sec. 752. Financial assistance. 

Sec. 753. Audits. 

Sec. 754. Review and report by comptroller general. 

Sec. 755. Annual reports; recommendations. 

Sec. 756. Separability. 

Sec. 757. Executive Order 11625. 

Sec. 758. Amendment to the Federal Acquisition Streamlining Act of 1994. 

Subtitle B—Other Provisions 

Sec. 761. Emergency grants to minority business enterprises. 

TITLE VIII—PROMOTING AND ADVANCING COMMUNITIES OF 

COLOR THROUGH INCLUSIVE LENDING 

Sec. 801. Short title. 

Sec. 802. Findings; sense of Congress. 

Sec. 803. Purposes. 

Sec. 804. Considerations; requirements for creditors. 

Sec. 805. Neighborhood Capital Investment Program. 

Sec. 806. Emergency support for CDFIs and communities. 

Sec. 807. Ensuring diversity in community banking. 

Sec. 808. Establishment of Financial Agent Partnership Program. 

Sec. 809. Strengthening minority lending institutions. 

Sec. 810. CDFI Bond Guarantee Reform. 

Sec. 811. Reports. 

Sec. 812. Inspector General oversight. 

Sec. 813. Study and report with respect to impact of programs on low- and 

moderate-income and minority communities. 

Sec. 814. Community development financial institutions fund. 

1 (c) DEFINITIONS.—In this Act: 

2 (1) ADMINISTRATION.—The term ‘‘Administra3 tion’’ means the Small Business Administration. 

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1 (2) ADMINISTRATOR.—The term ‘‘Adminis2 trator’’ means the Administrator of the Small Busi3 ness Administration. 

4 (d) EFFECTIVE DATE; APPLICABILITY.—Except as 

5 otherwise provided in this Act, this Act and the amend6 ments made by this Act shall take effect on the date of 

7 the enactment of this Act and shall apply to loans made, 

8 or other assistance provided, on or after the date of enact9 ment of this Act. 

10 TITLE I—FUNDING PROVISIONS 

11 SEC. 101. AMOUNT AUTHORIZED FOR COMMITMENTS. 

12 Section 1102(b) of the CARES Act (Public Law 116– 

13 136) is amended to read as follows: 

14 ‘‘(b) COMMITMENTS FOR PPP AND OTHER 7(a) 

15 LOANS.— 

16 ‘‘(1) PPP LOANS.—During the period begin17 ning on the date of enactment of the Heroes Small 

18 Business Lifeline Act and ending on March 31, 

19 2021, subject to the availability of appropriations, 

20 the Administrator may make commitments under 

21 paragraph (36) of section 7(a) of the Small Business 

22 Act (15 U.S.C. 636(a)) in such amounts as the Ad23 ministrator determines necessary, but not less than 

24 $779,640,000,000. 

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1 ‘‘(2) OTHER 7(a) LOANS.—For fiscal year 

2 2021, commitments for general business loans au3 thorized under paragraphs (1) through (35) of sec4 tion 7(a) of the Small Business Act (15 U.S.C. 

5 636(a)) shall not exceed $75,000,000,000 for a com6 bination of amortizing term loans and the aggre7 gated maximum line of credit provided by revolving 

8 loans.’’. 

9 SEC. 102. FUNDING FOR THE PAYCHECK PROTECTION PRO10 GRAM. 

11 (a) DIRECT APPROPRIATIONS.—There is appro12 priated, out of amounts in the Treasury not otherwise ap13 propriated, to remain available until September 30, 2021, 

14 such sums as may be necessary under the heading ‘‘Small 

15 Business Administration—Business Loans Program Ac16 count, CARES Act’’ for the cost of guaranteed loans as 

17 authorized under section 7(a)(36) of the Small Business 

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

19 (b) REMAINING UNOBLIGATED BALANCES.—Subject 

20 to subsection (d), the unobligated balances for the cost 

21 of guaranteed loans as authorized under section 7(a)(36) 

22 of the Small Business Act (15 U.S.C. 636(a)(36)) in the 

23 appropriations account under the heading ‘‘Small Busi24 ness Administration—Business Loans Program Account, 

25 CARES Act’’ as of the day before the date of enactment 

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1 of this Act shall remain available until September 30, 

2 2021, for the cost of guaranteed loans as authorized under 

3 section 7(a)(36) of the Small Business Act (15 U.S.C. 

4 636(a)(36)). 

5 (c) SET ASIDE FOR CERTAIN ENTITIES.—Section 

6 7(a)(36)(S) of the Small Business Act (15 U.S.C. 

7 636(a)(36)(S)) is amended to read as follows: 

8 ‘‘(S) SET ASIDE FOR CERTAIN ENTITIES.— 

9 Of the amounts available on or after the date 

10 of enactment of the Heroes Small Business 

11 Lifeline Act (including amounts that were made 

12 available before such date of enactment) to 

13 guarantee covered loans under this paragraph, 

14 the Administrator shall provide— 

15 ‘‘(i) a set aside of not less than 10 

16 percent of such amounts for covered loans 

17 under subparagraph (B)(i) that are— 

18 ‘‘(I) made to eligible recipients 

19 with 10 or fewer employees, including 

20 individuals who operate under a sole 

21 proprietorship or as an independent 

22 contractor and eligible self-employed 

23 individuals; or 

24 ‘‘(II) of not more than $250,000 

25 and made to an eligible recipient that 

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1 is located in neighborhood that is a 

2 low-income neighborhood or moderate3 income neighborhood, for purposes of 

4 the Community Reinvestment Act of 

5 1977 (12 U.S.C. 2901 et seq.); 

6 ‘‘(ii) a set aside of not more than 30 

7 percent of such amounts for covered loans 

8 under subparagraph (B)(i) that are made 

9 to covered nonprofit organizations, covered 

10 organizations, organizations described in 

11 subparagraph (D)(viii), or housing co12 operatives; and 

13 ‘‘(iii) a set aside of not more than 50 

14 percent of such amounts for supplemental 

15 covered loans that are made under sub16 paragraph (B)(ii), of which not less than 

17 10 percent shall be for such supplemental 

18 covered loans that are made to eligible re19 cipients with 10 or fewer employees, in20 cluding individuals who operate under a 

21 sole proprietorship or as an independent 

22 contractor and eligible self-employed indi23 viduals.’’. 

24 (d) SET ASIDE FOR COMMUNITY FINANCIAL INSTI25 TUTIONS.—Of the amounts available on or after the date 

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1 of enactment of this Act (including amounts that were 

2 made available before such date of enactment) in the ap3 propriations account under the heading ‘‘Small Business 

4 Administration—Business Loans Program Account, 

5 CARES Act’’, the lesser of 25 percent of such amounts 

6 or $15,000,000,000 shall be set aside for the cost to guar7 antee loans made under section 7(a)(36) of the Small 

8 Business Act (15 U.S.C. 636(a)(36)) by community finan9 cial institutions (as such term is defined in subparagraph 

10 (A)(xi) of such section). 

11 (e) AMOUNTS RETURNED.—Section 7(a)(36) of the 

12 Small Business Act (15 U.S.C. 636(a)(36)), as amended 

13 by subsection (c), is amended by adding at the end the 

14 following: 

15 ‘‘(T) AMOUNTS RETURNED.—Any amounts 

16 returned to the Secretary of the Treasury due 

17 to the cancellation of a covered loan shall be 

18 solely used for the cost to guarantee covered 

19 loans made to eligible recipients with 10 or 

20 fewer employees or covered loans of less than or 

21 equal to $250,000 made to an eligible recipient 

22 that is located in a low- or moderate-income 

23 neighborhoods (as that term is used in the 

24 Community Reinvestment Act of 1977 (12 

25 U.S.C. 2901 et seq.)).’’. 

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1 SEC. 103. DIRECT APPROPRIATIONS. 

2 (a) IN GENERAL.—There is appropriated, out of 

3 amounts in the Treasury not otherwise appropriated, for 

4 additional amounts— 

5 (1) for the cost of carrying out section 407 of 

6 this Act, $8,000,000,000; 

7 (2) for the cost of carrying out title V of this 

8 Act, $1,000,000,000; 

9 (3) for the cost of carrying out section 603 and 

10 607 of this Act and the cost of guaranteed loans as 

11 authorized by paragraphs (1) through (35) of sec12 tion 7(a) of the Small Business Act (15 U.S.C. 

13 636(a)), $1,000,000,000; 

14 (4) for the cost of carrying out section 605 of 

15 this Act, $57,000,000; 

16 (5) for the cost of carrying out section 618 of 

17 this Act, $15,000,000,000; 

18 (6) for the cost of carrying out section 619 of 

19 this Act, $15,000,000,000; and 

20 (7) for the cost of carrying out subtitle A of 

21 title VII of this Act, $25,000,000. 

22 (b) EMERGENCY EIDL GRANTS.— 

23 (1) IN GENERAL.—There is appropriated, out 

24 of amounts in the Treasury not otherwise appro25 priated, for additional amounts under the heading 

26 ‘‘Small Business Administration—Emergency EIDL 

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1 Grants’’ for the cost of emergency economic injury 

2 disaster loan grants authorized under section 1110 

3 of the CARES Act (15 U.S.C. 9009), 

4 $50,000,000,000, to remain available until ex5 pended. 

6 (2) SET ASIDE.—Of amounts appropriated 

7 under paragraph (1), $40,000,000,000 shall be for 

8 carrying out subsection (i) of section 1110 of the 

9 CARES Act (15 U.S.C. 9009), as added by section 

10 405 of this Act, of which $20,000,000,000 shall be 

11 for providing funding to covered entities described in 

12 paragraph (8) of such subsection (i). 

13 SEC. 104. EMERGENCY DESIGNATION. 

14 (a) IN GENERAL.—The amounts provided under this 

15 title are designated as an emergency requirement pursu16 ant to section 4(g) of the Statutory Pay-As-You-Go Act 

17 of 2010 (2 U.S.C. 933(g)). 

18 (b) DESIGNATION IN SENATE.—In the Senate, this 

19 title is designated as an emergency requirement pursuant 

20 to section 4112(a) of H. Con. Res. 71 (115th Congress), 

21 the concurrent resolution on the budget for fiscal year 

22 2018. 

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1 TITLE II—MODIFICATIONS TO 

2 THE PAYCHECK PROTECTION 

3 PROGRAM 

4 SEC. 201. PERIODS FOR LOAN FORGIVENESS AND APPLICA5 TION SUBMISSION. 

6 (a) PERIOD FOR COSTS THAT ARE ELIGIBLE FOR

7 FORGIVENESS AND APPLICATION SUBMISSION.—Section 

8 1106 of the CARES Act (15 U.S.C. 9005) is amended— 

9 (1) in subsection (a), by striking paragraph (3) 

10 and inserting the following: 

11 ‘‘(3) the term ‘covered period’ means the period 

12 beginning on the date of the origination of a covered 

13 loan and ending on a date selected by the eligible re14 cipient of the covered loan that— 

15 ‘‘(A) is not earlier than the date that is 8 

16 weeks after such date of origination; and 

17 ‘‘(B) is not later than the date that is 24 

18 weeks after such date of origination;’’; 

19 (2) in subsection (d), by striking ‘‘December 

20 31, 2020’’ each place it appears and inserting ‘‘Sep21 tember 30, 2021’’; and 

22 (3) by striking subsection (l) and inserting the 

23 following: 

24 ‘‘(l) APPLICATION DEADLINE.—An eligible recipient 

25 may apply for forgiveness under this section with respect 

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1 to a covered loan any time after the covered period appli2 cable to the covered loan ends if— 

3 ‘‘(1) proceeds from the covered loan have been 

4 spent; and 

5 ‘‘(2) the eligible recipient is in compliance with 

6 subsections (e) and (f).’’. 

7 (b) APPLICABILITY OF AMENDMENTS.—The amend8 ments made by subsection (a) shall be effective as if in9 cluded in the CARES Act (Public Law 116–136) and shall 

10 apply to any loan made pursuant to section 7(a)(36) of 

11 the Small Business Act (15 U.S.C. 636(a)(36)) or section 

12 1109 of the CARES Act (15 U.S.C. 9008). 

13 SEC. 202. SUPPLEMENTAL COVERED LOANS FOR CERTAIN 

14 BUSINESS CONCERNS. 

15 Section 7(a)(36)(B) of the Small Business Act (15 

16 U.S.C. 636(a)(36)(B)) is amended— 

17 (1) by striking ‘‘Except’’ and inserting the fol18 lowing: 

19 ‘‘(i) IN GENERAL.—Except’’; and 

20 (2) by adding at the end the following: 

21 ‘‘(ii) SUPPLEMENTAL COVERED

22 LOANS.— 

23 ‘‘(I) DEFINITIONS.—In this 

24 clause— 

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1 ‘‘(aa) the terms ‘exchange’, 

2 ‘issuer’, and ‘security’ have the 

3 meanings given those terms in 

4 section 3(a) of the Securities Ex5 change Act of 1934 (15 U.S.C. 

6 78c(a)); 

7 ‘‘(bb) the term ‘gross re8 ceipts’ means gross receipts with9 in the meaning of section 448(c) 

10 of the Internal Revenue Code of 

11 1986; 

12 ‘‘(cc) the term ‘national se13 curities exchange’ means an ex14 change registered as a national 

15 securities exchange under section 

16 6 of the Securities Exchange Act 

17 of 1934 (15 U.S.C. 78f); 

18 ‘‘(dd) the term ‘publicly 

19 traded entity’ means an issuer, 

20 the securities of which are listed 

21 on a national securities exchange; 

22 ‘‘(ee) the term ‘significant 

23 loss in revenue’ means that, due 

24 to the impact of COVID–19— 

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1 ‘‘(AA) the gross re2 ceipts of the eligible recipi3 ent during the first, second, 

4 or third calendar quarter of 

5 2020 are less than 75 per6 cent of the gross receipts of 

7 the eligible recipient during 

8 the same calendar quarter in 

9 2019; 

10 ‘‘(BB) if the eligible re11 cipient was not in business 

12 on April 1, 2019, the gross 

13 receipts of the eligible recipi14 ent during any 2-month pe15 riod during the first 3 cal16 endar quarters of 2020 are 

17 less than 75 percent of the 

18 amount of the gross receipts 

19 of the eligible recipient dur20 ing any prior 2-month pe21 riod during the first 3 cal22 endar quarters of 2020; or 

23 ‘‘(CC) if the eligible re24 cipient is seasonal employer, 

25 as determined by the AdVerDate Sep 11 2014 20:21 Oct 31, 2020 Jkt 019200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 E:\BILLS\S4818.IS S4818
16 

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1 ministrator, the gross re2 ceipts of the eligible recipi3 ent during any 2-month pe4 riod during the first 3 cal5 endar quarters of 2020 are 

6 less than 75 percent of the 

7 amount of the gross receipts 

8 of the eligible recipient dur9 ing the same 2-month period 

10 in 2019; and 

11 ‘‘(ff) the term ‘smaller con12 cern’ means an eligible recipient 

13 that— 

14 ‘‘(AA) has not more 

15 than 200 employees; 

16 ‘‘(BB) operates under a 

17 sole proprietorship or as an 

18 independent contractor; or 

19 ‘‘(CC) is an eligible 

20 self-employed individual. 

21 ‘‘(II) AUTHORITY.—Except as 

22 otherwise provided in this clause, for 

23 an eligible recipient that has received 

24 a covered loan under clause (i), the 

25 Administrator may guarantee a single 

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1 supplemental covered loan to the eligi2 ble recipient under the same terms, 

3 conditions, and processes as a covered 

4 loan made under clause (i). 

5 ‘‘(III) CHOICE OF LENDER.—An 

6 eligible recipient may apply for a sup7 plemental covered loan under this 

8 clause with the lender that made the 

9 covered loan under clause (i) to the el10 igible recipient or another lender. 

11 ‘‘(IV) ELIGIBILITY.— 

12 ‘‘(aa) IN GENERAL.—A sup13 plemental covered loan under this 

14 clause— 

15 ‘‘(AA) may only be 

16 made to an eligible recipient 

17 that is a smaller concern 

18 that has had a significant 

19 loss in revenue and has 

20 used, or is expending funds 

21 at a rate that the eligible re22 cipient will use on or before 

23 the expected date of the dis24 bursement of the supple25 mental covered loan under 

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1 this clause, the full amount 

2 of the covered loan received 

3 under clause (i); and 

4 ‘‘(BB) may not be 

5 made to a publicly traded or 

6 foreign owned entity as de7 scribed in clause (x) of sub8 paragraph (D). 

9 ‘‘(bb) BUSINESS CONCERNS

10 WITH MORE THAN 1 PHYSICAL

11 LOCATION.— 

12 ‘‘(AA) IN GENERAL.— 

13 For purposes of a supple14 mental covered loan under 

15 this clause, subparagraph 

16 (D)(iii)(I) shall be applied 

17 by substituting ‘not more 

18 than 200 employees per 

19 physical location’ for ‘not 

20 more than 500 employees 

21 per physical location’. 

22 ‘‘(BB) LIMIT FOR MUL23 TIPLE LOCATIONS.—For an 

24 eligible recipient with more 

25 than 1 physical location, the 

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1 total amount of all supple2 mental covered loans made 

3 under this clause to the eli4 gible recipient shall not be 

5 more than $2,000,000. 

6 ‘‘(V) MAXIMUM AMOUNT.—The 

7 maximum amount of a supplemental 

8 covered loan under this clause is the 

9 lesser of— 

10 ‘‘(aa) the product obtained 

11 by multiplying— 

12 ‘‘(AA) the average total 

13 monthly payments for pay14 roll costs by the eligible re15 cipient used to determine 

16 the maximum amount of the 

17 covered loan under clause (i) 

18 made to the eligible recipient 

19 under this paragraph; by 

20 ‘‘(BB) 2.5; or 

21 ‘‘(bb) $2,000,000. 

22 ‘‘(VI) EXCEPTION FROM CERTAIN

23 CERTIFICATION REQUIREMENTS.—An 

24 eligible recipient applying for a sup25 plemental covered loan under this 

20 

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1 clause shall not be required to make 

2 the certification described in clause 

3 (iii) or (iv) of subparagraph (G). 

4 ‘‘(VII) REIMBURSEMENT FOR

5 PROCESSING SUPPLEMENTAL PPP.— 

6 For a supplemental covered loan 

7 under this clause of not more than 

8 $50,000, the reimbursement under 

9 subparagraph (P)(i)(I) by the Admin10 istrator shall not be less than 

11 $2,500.’’. 

12 SEC. 203. CERTIFICATIONS AND DOCUMENTATION FOR 

13 STREAMLINED FORGIVENESS OF COVERED 

14 LOANS. 

15 Section 1106 of the CARES Act (15 U.S.C. 9005) 

16 is amended— 

17 (1) in subsection (e), in the matter preceding 

18 paragraph (1), by striking ‘‘An eligible recipient’’ 

19 and all that follows through ‘‘an application,’’ and 

20 inserting ‘‘Subject to subsection (f), an eligible re21 cipient applying for loan forgiveness under this sec22 tion shall provide proof of the use of covered loan 

23 proceeds,’’; 

24 (2) by amending subsection (f) to read as fol25 lows: 

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1 ‘‘(f) DOCUMENTATION REQUIREMENTS.—To receive 

2 loan forgiveness under this section, an eligible recipient 

3 shall comply with the following requirements: 

4 ‘‘(1) With respect to a covered loan in an 

5 amount that is not more than $50,000, the eligible 

6 recipient— 

7 ‘‘(A) shall certify to the Administrator that 

8 the eligible recipient has used proceeds from the 

9 covered loan in compliance with the require10 ments of section 7(a)(36) of the Small Business 

11 Act (15 U.S.C. 636(a)(36)), including a de12 scription of the amount of proceeds used for 

13 payroll costs and the number of employees the 

14 eligible recipient was able to retain because of 

15 the covered loan; 

16 ‘‘(B) is not required to submit any docu17 mentation or application to receive forgiveness 

18 under this section; 

19 ‘‘(C) shall certify to the Administrator that 

20 the eligible recipient can make the documenta21 tion described under subsection (e) available, 

22 upon request, for a period of time determined 

23 by the Administrator, which period shall be not 

24 less than 3 years; and 

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1 ‘‘(D) may submit to the Administrator de2 mographic information of the owner of the eligi3 ble recipient, including the sex, race, ethnicity, 

4 and veteran status of the owner, through a 

5 process established by the Administrator. 

6 ‘‘(2) With respect to a covered loan in an 

7 amount that is more than $50,000 but not more 

8 than $150,000, the eligible recipient— 

9 ‘‘(A) shall submit to the lender that is 

10 servicing the covered loan the certification de11 scribed in paragraph (1)(A) and a simplified 

12 one-page application form that does not require 

13 the submission of any documentation described 

14 in subsection (e); 

15 ‘‘(B) shall make the certification described 

16 in paragraph (1)(C); and 

17 ‘‘(C) may submit to the Administrator de18 mographic information of the owner of the eligi19 ble recipient, including the sex, race, ethnicity, 

20 and veteran status of the owner, as established 

21 by the Administrator on the application form 

22 described in subparagraph (A). 

23 ‘‘(3) With respect to a covered loan in an 

24 amount that is more than $150,000, the eligible re25 cipient— 

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1 ‘‘(A) shall submit to the lender that is 

2 servicing the covered loan the documentation 

3 described in subsection (e); and 

4 ‘‘(B) may submit to the Administrator de5 mographic information of the owner of the eligi6 ble recipient, including the sex, race, ethnicity, 

7 and veteran status of the owner, through a 

8 process established by the Administrator.’’; and 

9 (3) by amending subsection (g) to read as fol10 lows: 

11 ‘‘(g) LENDER SUBMISSION.—Not later than 60 days 

12 after the date on which a lender receives an application 

13 for loan forgiveness under this section from an eligible re14 cipient, the lender shall only be required to review the ap15 plication to ensure completion, including that required at16 testations have been made, before submitting the applica17 tion to the Administrator.’’. 

18 SEC. 204. ELIGIBILITY OF CERTAIN ORGANIZATIONS FOR 

19 LOANS UNDER THE PAYCHECK PROTECTION 

20 PROGRAM. 

21 Section 7(a)(36) of the Small Business Act (15 

22 U.S.C. 636(a)(36))— 

23 (1) in subparagraph (A)— 

24 (A) in clause (vii), by inserting ‘‘covered’’ 

25 before ‘‘nonprofit’’; 

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1 (B) in clause (viii)(II)— 

2 (i) in item (dd), by striking ‘‘or’’ at 

3 the end; 

4 (ii) in item (ee), by adding ‘‘or’’ at the 

5 end; and 

6 (iii) by adding at the end the fol7 lowing: 

8 ‘‘(ff) any compensation of 

9 an employee who is a registered 

10 lobbyist under the Lobbying Dis11 closure Act of 1995 (2 U.S.C. 

12 1601 et seq.);’’; 

13 (C) by amending clause (ix) to read as fol14 lows: 

15 ‘‘(ix) the term ‘covered organization’ 

16 means— 

17 ‘‘(I) an organization described in 

18 section 501(c) of the Internal Revenue 

19 Code of 1986 and exempt from tax 

20 under section 501(a) of such Code 

21 that is not a covered nonprofit organi22 zation; 

23 ‘‘(II) an entity created by a State 

24 or local government that derives the 

25 

•S 4818 IS

1 majority of its operating budget from 

2 the production of live events; or 

3 ‘‘(III) a destination marketing 

4 organization;’’; 

5 (D) in clause (xi)(IV), by striking ‘‘and’’ at 

6 the end; 

7 (E) in clause (xii), by striking the period 

8 at the end and inserting a semicolon; and 

9 (F) by adding at the end the following: 

10 ‘‘(xiii) the term ‘housing cooperative’ 

11 means a cooperative housing corporation 

12 (as defined in section 216(b) of the Inter13 nal Revenue Code of 1986); and 

14 ‘‘(xiv) the term ‘destination marketing 

15 organization’ means a nonprofit entity that 

16 is an organization described in section 

17 501(c)(6) of the Internal Revenue Code of 

18 1986 and exempt from tax under section 

19 501(a) of such Code, a State, or a political 

20 subdivision of a State (including any in21 strumentality of such entities) engaged in 

22 marketing and promoting communities and 

23 facilities to businesses and leisure travelers 

24 through a range of activities, including— 

26 

•S 4818 IS

1 ‘‘(I) assisting with the location of 

2 meeting and convention sites; 

3 ‘‘(II) providing travel information 

4 on area attractions, lodging accom5 modations, and restaurants; 

6 ‘‘(III) providing maps; and 

7 ‘‘(IV) organizing group tours of 

8 local historical, recreational, and cul9 tural attractions.’’; and 

10 (2) in subparagraph (D)— 

11 (A) in clause (i)— 

12 (i) by inserting ‘‘covered’’ before 

13 ‘‘nonprofit organization’’ each place it ap14 pears; and 

15 (ii) by striking ‘‘veterans organiza16 tion’’ each place it appears and inserting 

17 ‘‘housing cooperative, covered organiza18 tion’’; 

19 (B) in clause (iii)— 

20 (i) by amending the clause heading to 

21 read as follows: ‘‘REQUIREMENTS FOR

22 RESTAURANTS AND CERTAIN NEWS ORGA23 NIZATIONS’’; 

24 (ii) by striking ‘‘During the covered 

25 period, any business concern that employs’’ 

27 

•S 4818 IS

1 and inserting the following: ‘‘Any business 

2 concern or other organization— 

3 ‘‘(I) that, during the covered pe4 riod, employs’’; 

5 (iii) in subclause (I), as so designated, 

6 by striking the period at the end and in7 serting a semicolon; and 

8 (iv) by adding at the end the fol9 lowing: 

10 ‘‘(II) that— 

11 ‘‘(aa) was not eligible to re12 ceive a covered loan the day be13 fore the date of enactment of this 

14 subclause, is assigned a North 

15 American Industry Classification 

16 System code beginning with 

17 511110, 515112, or 515120, and 

18 an individual physical location of 

19 the business concern at the time 

20 of disbursal does not exceed the 

21 size standard established by the 

22 Administrator for the applicable 

23 code shall, notwithstanding 

24 clause (x), be eligible to receive a 

25 covered loan for expenses associVerDate Sep 11 2014 20:21 Oct 31, 2020 Jkt 019200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6201 E:\BILLS\S4818.IS S4818
28 

•S 4818 IS

1 ated with an individual physical 

2 location of that business concern 

3 to support the continued provi4 sion of local news, information, 

5 content, or emergency informa6 tion, and, at the time of dis7 bursal, the individual physical lo8 cation; or 

9 ‘‘(bb) was not eligible to re10 ceive a covered loan the day be11 fore the date of enactment of this 

12 subclause, has a trade or busi13 ness that falls under a North 

14 American Industry Classification 

15 System code beginning with 5151 

16 as a public broadcast entity (as 

17 defined in section 397(11) of the 

18 Communications Act of 1934 (47 

19 U.S.C. 397(11))), and is a cov20 ered nonprofit organization or 

21 another organization otherwise 

22 subject to section 511(a)(2) of 

23 the Internal Revenue Code of 

24 1986, shall be eligible to receive 

25 a covered loan for expenses to 

29 

•S 4818 IS

1 support the continued provision 

2 of local news, information, con3 tent, or emergency information 

4 by such entity; or 

5 ‘‘(III) that was not eligible to re6 ceive a covered loan the day before the 

7 date of enactment of this subclause, is 

8 assigned a North American Industry 

9 Classification System code of 519130, 

10 is identified as a Internet-only news 

11 publisher or Internet-only periodical 

12 publisher, and is engaged in the col13 lection and distribution of local or re14 gional and national news and informa15 tion shall be eligible to receive a cov16 ered loan for expenses to support the 

17 continued provision of news, informa18 tion, content, or emergency informa19 tion.’’; 

20 (C) in clause (iv)— 

21 (i) in subclause (II), by striking 

22 ‘‘and’’ at the end; 

23 (ii) in subclause (III), by striking the 

24 period at the end and inserting ‘‘; and’’; 

25 and 

30 

•S 4818 IS

1 (iii) by adding at the end the fol2 lowing: 

3 ‘‘(IV) an individual physical loca4 tion of a business concern described in 

5 clause (iii)(II), if such concern does 

6 not pay, distribute, or otherwise pro7 vide any portion of the covered loan to 

8 any other entity other than the indi9 vidual physical location that is the in10 tended recipient of the covered loan.’’; 

11 (D) in clause (v), by striking ‘‘nonprofit 

12 organization, veterans organization,’’ and in13 serting ‘‘covered organization, covered nonprofit 

14 organization, housing cooperative,’’; 

15 (E) in clause (vi), by striking ‘‘nonprofit 

16 organization and a veterans organization’’ and 

17 inserting ‘‘covered organization, a covered non18 profit organization, and a housing cooperative’’; 

19 and 

20 (F) by adding at the end the following: 

21 ‘‘(vii) ADDITIONAL REQUIREMENTS

22 AND ADDITIONAL ELIGIBILITY FOR COV23 ERED ORGANIZATIONS AND COVERED NON24 PROFIT ORGANIZATIONS.— 

31 

•S 4818 IS

1 ‘‘(I) LOBBYING RESTRICTION ON

2 SMALLER COVERED ORGANIZA3 TIONS.—During the covered period, a 

4 covered organization described in 

5 clause (i) may only receive a covered 

6 loan if— 

7 ‘‘(aa) the covered organiza8 tion does not receive more than 

9 10 percent of its receipts from 

10 lobbying activities; 

11 ‘‘(bb) the lobbying activities 

12 of the covered organization do 

13 not comprise more than 10 per14 cent of the total activities of the 

15 covered organization; and 

16 ‘‘(cc) with respect to a cov17 ered organization described in 

18 section 501(c)(4) of the Internal 

19 Revenue Code of 1986 that is ex20 empt from taxation under sub21 section (a) of such section, such 

22 covered organization has not 

23 made and will not make a con24 tribution, expenditure, inde25 pendent expenditure, or electionVerDate Sep 11 2014 20:21 Oct 31, 2020 Jkt 019200 PO 00000 Frm 00031 Fmt 6652 Sfmt 6201 E:\BILLS\S4818.IS S4818
32 

•S 4818 IS

1 eering communication within the 

2 meaning of the Federal Election 

3 Campaign Act of 1971 (52 

4 U.S.C. 30101 et seq.), and has 

5 not undertaken and will not un6 dertake similar campaign finance 

7 activities in State and local elec8 tions, during the election cycle 

9 which ends on the date of the 

10 general election in calendar year 

11 2020. 

12 ‘‘(II) ELIGIBILITY OF LARGER

13 ORGANIZATIONS.— 

14 ‘‘(aa) COVERED NONPROFIT

15 ORGANIZATIONS.—During the 

16 covered period, a covered non17 profit organization that employs 

18 more than the maximum number 

19 of employees allowed under 

20 clause (i) shall be eligible to re21 ceive a covered loan if the cov22 ered nonprofit organization has 

23 had a significant loss in revenue 

24 (as defined in subparagraph 

25 (B)(ii)(I)(ee)). 

33 

•S 4818 IS

1 ‘‘(bb) COVERED ORGANIZA2 TIONS.—During the covered pe3 riod, a covered organization that 

4 employs more than the maximum 

5 number of employees allowed 

6 under clause (i) shall be eligible 

7 to receive a covered loan if the 

8 covered organization— 

9 ‘‘(AA) meets the re10 quirements of items (aa), 

11 (bb), and (cc) of subclause 

12 (I); and 

13 ‘‘(BB) has had a sig14 nificant loss in revenue (as 

15 defined in subparagraph 

16 (B)(ii)(I)(ee)). 

17 ‘‘(viii) INCLUSION OF CRITICAL AC18 CESS HOSPITALS.—During the covered pe19 riod, any covered organization that is a 

20 critical access hospital (as defined in sec21 tion 1861(mm) of the Social Security Act 

22 (42 U.S.C. 1395x(mm))) shall be eligible 

23 to receive a covered loan, regardless of the 

24 status of such a hospital as a debtor in a 

25 case under chapter 11 of title 11, United 

34 

•S 4818 IS

1 States Code, or the status of any debts 

2 owed by such a hospital to the Federal 

3 Government. 

4 ‘‘(ix) ADDITIONAL REQUIREMENTS

5 FOR CERTAIN NEWS ENTITIES.— 

6 ‘‘(I) IN GENERAL.—With respect 

7 to an individual physical location of a 

8 business concern described in item 

9 (aa) of clause (iii)(II), each such loca10 tion shall be treated as an inde11 pendent, nonaffiliated entity for pur12 poses of this paragraph. 

13 ‘‘(II) DEMONSTRATION OF

14 NEED.—Any individual physical loca15 tion of a business concern described in 

16 item (aa) of clause (iii)(II) that is a 

17 franchise or affiliate of, or owned or 

18 controlled by a parent company, in19 vestment company, or the manage20 ment thereof, shall demonstrate, upon 

21 request of the Administrator, the need 

22 for a covered loan to support the con23 tinued provision of local news, infor24 mation, content, or emergency inforVerDate Sep 11 2014 20:21 Oct 31, 2020 Jkt 019200 PO 00000 Frm 00034 Fmt 6652 Sfmt 6201 E:\BILLS\S4818.IS S4818
35 

•S 4818 IS

1 mation, and, at the time of disbursal, 

2 the individual physical location. 

3 ‘‘(III) LIMITATION ON USE OF

4 FUNDS.—A business concern, or a 

5 parent company, investment company, 

6 or management company of 1 or more 

7 physical locations of a business con8 cern, described in item (aa) of clause 

9 (iii)(II) may not use any portion of 

10 the proceeds of a covered loan for any 

11 expense that is not directly related to 

12 the individual physical location de13 scribed in subclause (I) of this clause 

14 with respect to which the covered loan 

15 was made. 

16 ‘‘(IV) WAIVER OF CERTAIN LIMI17 TATIONS.—For an organization de18 scribed in item (bb) of clause (iii)(II), 

19 during the covered period, the provi20 sions applicable to affiliations under 

21 section 121.103 of title 13, Code of 

22 Federal Regulations, or any successor 

23 regulation, the provisions of section 

24 120.110(j) of title 13, Code of Fed25 eral Regulations, or any successor 

36 

•S 4818 IS

1 regulation, and any otherwise applica2 ble covered loan limitations based on 

3 number of employees or loss in rev4 enue are waived with respect to deter5 mining eligibility for a covered loan 

6 under such item.’’. 

7 SEC. 205. LIMIT ON AGGREGATE LOAN AMOUNT FOR ELIGI8 BLE RECIPIENTS WITH MORE THAN 1 PHYS9 ICAL LOCATION. 

10 Section 7(a)(36)(E) of the Small Business Act (15 

11 U.S.C. 636(a)(36)(E)) is amended by adding at the end 

12 the following flush matter: 

13 ‘‘With respect to an eligible recipient with more 

14 than 1 physical location, the total amount of all 

15 covered loans made under this clause to the eli16 gible recipient shall not be more than 

17 $10,000,000.’’. 

18 SEC. 206. ALLOWABLE USES OF COVERED LOANS; FORGIVE19 NESS. 

20 (a) PAYCHECK PROTECTION PROGRAM.—Section 

21 7(a)(36) of the Small Business Act (15 U.S.C. 

22 636(a)(36)) is amended— 

23 (1) in subparagraph (F)(i)— 

24 (A) in subclause (VI), by striking ‘‘and’’ at 

25 the end; 

37 

•S 4818 IS

1 (B) in subclause (VII), by striking the pe2 riod at the end and inserting a semicolon; and 

3 (C) by adding at the end the following: 

4 ‘‘(VIII) costs related to the provi5 sion of personal protective equipment 

6 for employees or other equipment or 

7 supplies determined by the employer 

8 to be necessary to protect the health 

9 and safety of employees and the gen10 eral public; 

11 ‘‘(IX) payments for inventory, 

12 raw materials, or supplies; and 

13 ‘‘(X) costs related to property 

14 damage, vandalism, or looting due to 

15 public disturbances that occurred dur16 ing 2020 that were not covered by in17 surance or other compensation.’’; and 

18 (2) in subparagraph (G)— 

19 (A) in the subparagraph heading, by strik20 ing ‘‘BORROWER REQUIREMENTS’’ and all that 

21 follows through ‘‘eligible recipient applying’’ 

22 and inserting ‘‘BORROWER CERTIFICATION RE23 QUIREMENTS.—An eligible recipient applying’’; 

24 (B) by redesignating subclauses (I) 

25 through (IV) as clauses (i) through (iv), respecVerDate Sep 11 2014 20:21 Oct 31, 2020 Jkt 019200 PO 00000 Frm 00037 Fmt 6652 Sfmt 6201 E:\BILLS\S4818.IS S4818
38 

•S 4818 IS

1 tively, and adjusting the margins accordingly; 

2 and 

3 (C) in clause (ii), as so redesignated, by 

4 striking ‘‘to retain workers’’ and all that follows 

5 through ‘‘utility payments’’ and inserting ‘‘for 

6 an allowable use described in subparagraph 

7 (F)’’. 

8 (b) FORGIVENESS.— 

9 (1) DEFINITION OF EXPECTED FORGIVENESS

10 AMOUNT.—Section 1106(a)(7) of the CARES Act 

11 (15 U.S.C. 9005(a)(7)) is amended— 

12 (A) in subparagraph (C), by striking 

13 ‘‘and’’ at the end; 

14 (B) in subparagraph (D), by striking 

15 ‘‘and’’ at the end; and 

16 (C) by adding at the end the following: 

17 ‘‘(E) interest on any other debt obligations 

18 that were incurred before the covered period; 

19 ‘‘(F) any amount that was a loan made 

20 under section 7(b)(2) of the Small Business Act 

21 (15 U.S.C. 636(b)(2)) that was refinanced as 

22 part of a covered loan and authorized by section 

23 7(a)(36)(F)(iv) of the such Act; 

24 ‘‘(G) payments made for the provision of 

25 personal protective equipment for employees or 

39 

•S 4818 IS

1 other equipment or supplies determined by the 

2 employer to be necessary to protect the health 

3 and safety of employees and the general public; 

4 ‘‘(H) payments made for inventory, raw 

5 materials, or supplies; and 

6 ‘‘(I) payments related to property damage, 

7 vandalism, or looting due to public disturbances 

8 that occurred during 2020 that were not cov9 ered by insurance or other compensation; and’’. 

10 (2) FORGIVENESS.—Section 1106(b) of the 

11 CARES Act (15 U.S.C. 9005(b)), is amended by 

12 adding at the end the following: 

13 ‘‘(5) Any payment of interest on any other debt 

14 obligations that were incurred before the covered pe15 riod. 

16 ‘‘(6) Any amount that was a loan made under 

17 section 7(b)(2) of the Small Business Act (15 U.S.C. 

18 636(b)(2)) that was refinanced as part of a covered 

19 loan and authorized by section 7(a)(36)(F)(iv) of 

20 such Act. 

21 ‘‘(7) Any payment made for the provision of 

22 personal protective equipment for employees or other 

23 equipment or supplies determined by the employer to 

24 be necessary to protect the health and safety of em25 ployees. 

40 

•S 4818 IS

1 ‘‘(8) Any payment made for inventory, raw ma2 terials, or supplies. 

3 ‘‘(9) Any payment related to property damage, 

4 vandalism, or looting due to public disturbances that 

5 occurred during 2020 that was not covered by insur6 ance or other compensation.’’. 

7 (3) CONFORMING AMENDMENTS.—Section 1106 

8 of the CARES Act (15 U.S.C. 9005) is amended— 

9 (A) in subsection (e), as amended by sec10 tion 203— 

11 (i) in paragraph (2), by striking ‘‘pay12 ments on covered mortgage obligations, 

13 payments on covered lease obligations, and 

14 covered utility payments’’ and inserting 

15 ‘‘payments or amounts refinanced de16 scribed in subsection (b) (other than pay17 roll costs)’’; and 

18 (ii) in paragraph (3)(B), by striking 

19 ‘‘, make interest payments’’ and all that 

20 follows through ‘‘or make covered utility 

21 payments’’ and inserting ‘‘, make pay22 ments described in subsection (b), or that 

23 was refinanced as part of a covered loan 

24 and authorized by section 7(a)(36)(F)(iv) 

25 of the Small Business Act’’; and 

41 

•S 4818 IS

1 (B) in subsection (h), by striking ‘‘pay2 ments for payroll costs, payments on covered 

3 mortgage obligations, payments on covered 

4 lease obligations, or covered utility payments’’ 

5 each place it appears and inserting ‘‘payments 

6 or amounts refinanced described in subsection 

7 (b)’’. 

8 SEC. 207. DOCUMENTATION REQUIRED FOR CERTAIN ELI9 GIBLE RECIPIENTS. 

10 Section 7(a)(36)(D)(ii)(II) of the Small Business Act 

11 (15 U.S.C. 636(a)(36)(D)(ii)(II)) is amended by striking 

12 ‘‘as is necessary’’ and all that follows through the period 

13 at the end and inserting ‘‘as determined necessary by the 

14 Administrator and the Secretary, to establish such indi15 vidual as eligible.’’. 

16 SEC. 208. EXCLUSION OF CERTAIN PUBLICLY TRADED AND 

17 FOREIGN ENTITIES. 

18 Section 7(a)(36)(D) of the Small Business Act (15 

19 U.S.C. 636(a)(36)(D)), as amended by section 204, is 

20 amended by adding at the end the following: 

21 ‘‘(x) EXCLUSION OF CERTAIN PUB22 LICLY TRADED AND FOREIGN ENTITIES.— 

23 Effective on the date of enactment of this 

24 clause— 

42 

•S 4818 IS

1 ‘‘(I) a publicly traded entity, as 

2 defined in subparagraph (B)(ii), is not 

3 eligible to receive a covered loan; and 

4 ‘‘(II) an entity that is 51 percent 

5 or more owned by a foreign person, or 

6 the management and daily business 

7 operations of which are controlled by 

8 a foreign person (excluding an entity 

9 owned and controlled by a person 

10 domiciled in a territory or possession 

11 of the United States), is not eligible to 

12 receive a covered loan.’’. 

13 SEC. 209. ELECTION OF 12-WEEK PERIOD BY SEASONAL EM14 PLOYERS. 

15 Section 7(a)(36)(E)(i)(I)(aa)(AA) of the Small Busi16 ness Act (15 U.S.C. 636(a)(36)(E)(i)(I)(aa)(AA)) is 

17 amended by striking ‘‘, in the case of an applicant’’ and 

18 all that follows through ‘‘June 30, 2019’’ and inserting 

19 the following: ‘‘an applicant that is a seasonal employer, 

20 as determined by the Administrator, shall use the average 

21 total monthly payments for payroll for any 12-week period 

22 selected by the seasonal employer between February 15, 

23 2019, and December 31, 2019’’. 

43 

•S 4818 IS

1 SEC. 210. INCLUSION OF CERTAIN REFINANCING IN NON2 RECOURSE REQUIREMENTS. 

3 Section 7(a)(36)(F)(v) of the Small Business Act (15 

4 U.S.C. 636(a)(36)(F)(v)) is amended by striking ‘‘clause 

5 (i)’’ and inserting ‘‘clause (i) or (iv)’’. 

6 SEC. 211. CREDIT ELSEWHERE REQUIREMENTS. 

7 Section 7(a)(36)(I) of the Small Business Act (15 

8 U.S.C. 636(a)(36)(I)) is amended to read as follows: 

9 ‘‘(I) CREDIT ELSEWHERE.—The require10 ment that a small business concern is unable to 

11 obtain credit elsewhere (as defined in section 

12 3(h))— 

13 ‘‘(i) shall not apply to— 

14 ‘‘(I) a covered loan approved by 

15 the Administrator before the date of 

16 enactment of the Heroes Small Busi17 ness Lifeline Act; or 

18 ‘‘(II) a covered loan made to a 

19 covered organization, covered non20 profit organization, or housing cooper21 ative; and 

22 ‘‘(ii) shall only apply to covered loans 

23 in an amount greater than $350,000 ap24 proved by the Administrator on or after 

25 the date of the enactment of the Heroes 

26 Small Business Lifeline Act.’’. 

44 

•S 4818 IS

1 SEC. 212. PROHIBITION ON RECEIVING DUPLICATIVE 

2 AMOUNTS FOR PAYROLL COSTS. 

3 (a) PAYCHECK PROTECTION PROGRAM.—Clause (iv) 

4 of section 7(a)(36)(G) of the Small Business Act (15 

5 U.S.C. 636(a)(36)(G)), as redesignated by section 206, is 

6 amended— 

7 (1) by striking ‘‘December 31, 2020’’ and in8 serting ‘‘June 30, 2020’’; and 

9 (2) by striking ‘‘the same purpose and’’ and in10 serting ‘‘payments for payroll costs incurred during 

11 such period’’. 

12 (b) TREASURY PROGRAM.—Section 1109(f) of the 

13 CARES Act (15 U.S.C. 9008(f)) is amended— 

14 (1) in paragraph (1), by striking ‘‘for the same 

15 purpose’’ and inserting ‘‘for payments for payroll 

16 costs (as defined in section 7(a)(36)(A)(viii) of the 

17 Small Business Act (15 U.S.C. 

18 636(a)(36)(A)(viii)))’’; and 

19 (2) in paragraph (2), by striking ‘‘December 

20 31, 2020’’ and inserting ‘‘June 30, 2020’’. 

21 SEC. 213. APPLICATION OF CERTAIN TERMS THROUGH 

22 LIFE OF COVERED LOAN. 

23 Section 7(a)(36) of the Small Business Act (15 

24 U.S.C. 636(a)(36)) is amended— 

45 

•S 4818 IS

1 (1) in subparagraph (H), in the matter pre2 ceding clause (i), by striking ‘‘During the covered 

3 period, with’’ and inserting ‘‘With’’; 

4 (2) in subparagraph (J), in the matter pre5 ceding clause (i), by striking ‘‘During the covered 

6 period, with’’ and inserting ‘‘With’’; and 

7 (3) in subparagraph (M)— 

8 (A) in clause (ii), in the matter preceding 

9 subclause (I), by striking ‘‘During the covered 

10 period, the’’ and inserting ‘‘The’’; and 

11 (B) in clause (iii), by striking ‘‘During the 

12 covered period, with’’ and inserting ‘‘With’’. 

13 SEC. 214. INTEREST CALCULATION ON COVERED LOANS. 

14 Section 7(a)(36)(L) of the Small Business Act (15 

15 U.S.C. 636(a)(36)(L)) is amended by inserting ‘‘, cal16 culated on a non-compounding, non-adjustable basis’’ 

17 after ‘‘4 percent’’. 

18 SEC. 215. REIMBURSEMENT FOR PROCESSING. 

19 Section 7(a)(36)(P) of the Small Business Act (15 

20 U.S.C. 636(a)(36)(P)) is amended— 

21 (1) in clause (ii), by adding at the end the fol22 lowing: ‘‘Such fees shall be paid by the eligible re23 cipient and may not be paid out of the proceeds of 

24 a covered loan. A lender shall only be responsible for 

46 

•S 4818 IS

1 paying fees to an agent for services for which the 

2 lender directly contracts with the agent.’’; and 

3 (2) by amending clause (iii) to read as follows: 

4 ‘‘(iii) TIMING.—A reimbursement de5 scribed in clause (i) shall be made not later 

6 than 5 days after the reported disburse7 ment of the covered loan and may not be 

8 required to be repaid by a lender unless 

9 the lender is found guilty of an act of 

10 fraud in connection with the covered 

11 loan.’’. 

12 SEC. 216. DUPLICATION REQUIREMENTS FOR ECONOMIC 

13 INJURY DISASTER LOAN RECIPIENTS. 

14 Section 7(a)(36)(Q) of the Small Business Act (15 

15 U.S.C. 636(a)(36)(Q)) is amended by striking ‘‘during the 

16 period beginning on January 31, 2020, and ending on the 

17 date on which covered loans are made available’’. 

18 SEC. 217. REAPPLICATION FOR AND MODIFICATION TO 

19 PAYCHECK PROTECTION PROGRAM. 

20 (a) DEFINITIONS.—In this section, the terms ‘‘cov21 ered loan’’ and ‘‘eligible recipient’’ have the meanings 

22 given those terms in 7(a)(36)(A) of the Small Business 

23 Act (15 U.S.C. 636(a)(36)(A)). 

24 (b) RULES OR GUIDANCE.—Not later than 7 days 

25 after the date of enactment of this Act, the Administrator 

47 

•S 4818 IS

1 shall issue rules or guidance to ensure that an eligible re2 cipient of a covered loan that returns amounts disbursed 

3 under the covered loan or does not accept the full amount 

4 of the covered loan for which the eligible recipient was ap5 proved— 

6 (1) in the case of an eligible recipient that re7 turned all or part of a covered loan, the eligible re8 cipient may reapply for a covered loan for an 

9 amount equal to the difference between the amount 

10 retained and the maximum amount applicable; and 

11 (2) in the case of an eligible recipient that did 

12 not accept the full amount of a covered loan, the eli13 gible recipient may request a modification to in14 crease the amount of the covered loan to the max15 imum amount applicable, subject to the require16 ments of section 7(a)(36) of the Small Business Act 

17 (15 U.S.C. 636(a)). 

18 SEC. 218. TREATMENT OF CERTAIN CRIMINAL VIOLATIONS. 

19 (a) IN GENERAL.—Section 7(a)(36) of the Small 

20 Business Act (15 U.S.C. 636(a)(36)), as amended by sec21 tion 101, is amended by adding at the end the following: 

22 ‘‘(U) TREATMENT OF CERTAIN CRIMINAL

23 VIOLATIONS.— 

24 ‘‘(i) FINANCIAL FRAUD OR DECEP25 TION.—An entity that is a business, orgaVerDate Sep 11 2014 20:21 Oct 31, 2020 Jkt 019200 PO 00000 Frm 00047 Fmt 6652 Sfmt 6201 E:\BILLS\S4818.IS S4818
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•S 4818 IS

1 nization, cooperative, or enterprise may not 

2 receive a covered loan if an owner of 20 

3 percent or more of the equity of the entity, 

4 during the 5-year period preceding the 

5 date on which the entity applies for a cov6 ered loan, has been convicted of a felony of 

7 financial fraud or deception under Federal, 

8 State, or Tribal law. 

9 ‘‘(ii) ARRESTS OR CONVICTIONS.—An 

10 entity that is a business, organization, co11 operative, or enterprise shall be an eligible 

12 recipient notwithstanding a prior arrest or 

13 conviction under Federal, State, or Tribal 

14 law of an owner of 20 percent or more of 

15 the equity of the entity, unless the owner 

16 is currently incarcerated. 

17 ‘‘(iii) WAIVER.—The Administrator 

18 may waive the requirements of clause (i).’’. 

19 (b) RULEMAKING.—Not later than 15 days after the 

20 date of enactment of this Act, the Administrator shall 

21 make necessary revisions to any rules to carry out the 

22 amendment made by this section. 

49 

•S 4818 IS

1 SEC. 219. ELIGIBILITY AND TREATMENT OF FARM CREDIT 

2 SYSTEM INSTITUTIONS. 

3 (a) DEFINITION OF FARM CREDIT SYSTEM INSTITU4 TION.—In this section, the term ‘‘Farm Credit System in5 stitution’’— 

6 (1) means an institution of the Farm Credit 

7 System chartered under the Farm Credit Act of 

8 1971 (12 U.S.C. 2001 et seq.); and 

9 (2) does not include the Federal Agricultural 

10 Mortgage Corporation. 

11 (b) FACILITATION OF PARTICIPATION IN PPP AND

12 SECOND DRAW LOANS.— 

13 (1) APPLICABLE RULES.—Solely with respect to 

14 loans under paragraph (36) of section 7(a) of the 

15 Small Business Act (15 U.S.C. 636(a)), Farm Cred16 it Administration regulations and guidance issued as 

17 of July 14, 2020, and compliance with such regula18 tions and guidance, shall be deemed functionally 

19 equivalent to requirements referenced in section 

20 3(a)(iii)(II) of the interim final rule of the Adminis21 tration entitled ‘‘Business Loan Program Temporary 

22 Changes; Paycheck Protection Program’’ (85 Fed. 

23 Reg. 20811 (April 15, 2020)). 

24 (2) APPLICABILITY OF CERTAIN LOAN RE25 QUIREMENTS.—For purposes of making loans under 

26 paragraph (36) of section 7(a) of the Small Business 

50 

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1 Act (15 U.S.C. 636(a)) or forgiving those loans in 

2 accordance with section 1106 of the CARES Act (15 

3 U.S.C. 9005), sections 4.13, 4.14, and 4.14A of the 

4 Farm Credit Act of 1971 (12 U.S.C. 2199, 2202, 

5 2202a) (including regulations issued under those 

6 sections) shall not apply. 

7 (3) RISK WEIGHT.— 

8 (A) IN GENERAL.—With respect to the ap9 plication of Farm Credit Administration capital 

10 requirements, a loan described in subparagraph 

11 (B)— 

12 (i) shall receive a risk weight of zero 

13 percent; and 

14 (ii) shall not be included in the cal15 culation of any applicable leverage ratio or 

16 other applicable capital ratio or calculation. 

17 (B) LOANS DESCRIBED.—A loan referred 

18 to in subparagraph (A) is— 

19 (i) a loan made by a Farm Credit 

20 Bank described in section 1.2(a) of the 

21 Farm Credit Act of 1971 (12 U.S.C. 

22 2002(a)) to a Federal Land Bank Associa23 tion, a Production Credit Association, or 

24 an agricultural credit association described 

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1 graph (36) of section 7(a) of the Small 

2 Business Act (15 U.S.C. 636(a)) or forgive 

3 those loans in accordance with section 

4 1106 of the CARES Act (15 U.S.C. 9005); 

5 or 

6 (ii) a loan made by a Federal Land 

7 Bank Association, a Production Credit As8 sociation, an agricultural credit associa9 tion, or the bank for cooperatives described 

10 in section 1.2(a) of the Farm Credit Act of 

11 1971 (12 U.S.C. 2002(a)) under para12 graph (36) of section 7(a) of the Small 

13 Business Act (15 U.S.C. 636(a)). 

14 TITLE III—TAX PROVISIONS 

15 SEC. 301. IMPROVED COORDINATION BETWEEN PAYCHECK 

16 PROTECTION PROGRAM AND EMPLOYEE RE17 TENTION TAX CREDIT. 

18 (a) AMENDMENT TO PAYCHECK PROTECTION PRO19 GRAM.—Section 1106(a)(8) of the CARES Act (15 U.S.C. 

20 9005(a)(8)) is amended by inserting ‘‘, except that such 

21 costs shall not include qualified wages taken into account 

22 in determining the credit allowed under section 2301 of 

23 this Act’’ before the period at the end. 

24 (b) AMENDMENTS TO EMPLOYEE RETENTION TAX

25 CREDIT.— 

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1 (1) IN GENERAL.—Section 2301(g) of the 

2 CARES Act (Public Law 116–136; 26 U.S.C. 3111 

3 note) is amended to read as follows: 

4 ‘‘(g) ELECTION TO NOT TAKE CERTAIN WAGES

5 INTO ACCOUNT.— 

6 ‘‘(1) IN GENERAL.—This section shall not apply 

7 to so much of the qualified wages paid by an eligible 

8 employer as such employer elects (at such time and 

9 in such manner as the Secretary may prescribe) to 

10 not take into account for purposes of this section. 

11 ‘‘(2) COORDINATION WITH PAYCHECK PROTEC12 TION PROGRAM.—The Secretary, in consultation 

13 with the Administrator of the Small Business Ad14 ministration, shall issue guidance providing that 

15 payroll costs paid or incurred during the covered pe16 riod shall not fail to be treated as qualified wages 

17 under this section by reason of an election under 

18 paragraph (1) to the extent that a covered loan of 

19 the eligible employer is not forgiven under section 

20 1106(b) by reason of such payroll costs. Terms used 

21 in the preceding sentence which are also used in sec22 tion 1106 shall have the same meaning as when 

23 used in such section.’’. 

24 (2) CONFORMING AMENDMENTS.— 

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1 (A) Section 2301 of the CARES Act (Pub2 lic Law 116–136; 26 U.S.C. 3111 note) is 

3 amended by striking subsection (j). 

4 (B) Section 2301(l) of the CARES Act 

5 (Public Law 116–136; 26 U.S.C. 3111 note) is 

6 amended by striking paragraph (3) and by re7 designating paragraphs (4) and (5) as para8 graphs (3) and (4), respectively. 

9 (c) EFFECTIVE DATE.—The amendments made by 

10 this section shall take effect as if included in the provisions 

11 of the CARES Act (Public Law 116–136) to which they 

12 relate. 

13 TITLE IV—COVID–19 ECONOMIC 

14 INJURY DISASTER LOAN PRO15 GRAM REFORM 

16 SEC. 401. SENSE OF CONGRESS. 

17 It is the sense of Congress that— 

18 (1) many businesses that have received eco19 nomic injury disaster loans under section 7(b)(2) of 

20 the Small Business Act (15 U.S.C. 636(b)(2)) con21 tinue to suffer from the effects of the COVID–19 

22 pandemic and may not be in a position to make pay23 ments in the near term; 

24 (2) the Administrator has the authority under 

25 the Small Business Act (15 U.S.C. 631 et seq.) to 

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1 reduce the interest charged on loans and to offer 

2 borrowers up to 4 years of deferment on the pay3 ment of interest and principal; and 

4 (3) the Congress encourages the Administrator 

5 to use this discretion to provide relief to the hardest 

6 hit small businesses that have received or will receive 

7 direct loans from the Administration under section 

8 7(b)(2) of the Small Business Act (15 U.S.C. 

9 636(b)(2)). 

10 SEC. 402. NOTICES TO APPLICANTS FOR ECONOMIC INJURY 

11 DISASTER LOANS OR ADVANCES. 

12 Section 7(b)(11) of the Small Business Act (15 

13 U.S.C. 636(b)(11)) is amended— 

14 (1) by striking ‘‘The Administrator’’ and insert15 ing the following: 

16 ‘‘(A) IN GENERAL.—The Administrator’’; 

17 and 

18 (2) by adding at the end the following: 

19 ‘‘(B) ACCEPTANCE CRITERIA AND QUALI20 FICATIONS.—In carrying out subparagraph (A), 

21 the Administrator shall— 

22 ‘‘(i) publish on the website of the Ad23 ministration a description of the rules 

24 issued with respect to a loan made under 

55 

•S 4818 IS

1 this subsection, which shall be clear and 

2 easy to understand; and 

3 ‘‘(ii) upon receiving an application for 

4 a loan under this subsection, provide to the 

5 loan applicant the description described in 

6 clause (i). 

7 ‘‘(C) RIGHT TO EXPLANATION OF DE8 CLINED LOAN OR ADVANCE.— 

9 ‘‘(i) IN GENERAL.—The Administrator 

10 shall— 

11 ‘‘(I) provide all applicants for a 

12 loan under this subsection or an ad13 vance under section 1110(e) of the 

14 CARES Act (15 U.S.C. 9009(e)) for 

15 which the loan or advance application 

16 was fully or partially denied with a 

17 complete written application of the 

18 reason for the denial at the time the 

19 decision is made; 

20 ‘‘(II) establish a dedicated tele21 phonic information line and e-mail ad22 dress to respond to further inquiries 

23 about denied applications described in 

24 subclause (I); and 

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1 ‘‘(III) before fully or partially de2 nying an application for a loan under 

3 this subsection or an advance under 

4 such section 1110(e) because the ap5 plicant submitted incomplete informa6 tion— 

7 ‘‘(aa) contact the applicant 

8 and give the applicant the oppor9 tunity to provide that informa10 tion; and 

11 ‘‘(bb) reconsider the applica12 tion with any additional informa13 tion provided. 

14 ‘‘(ii) SUBMISSION OF ADDITIONAL IN15 FORMATION.—An applicant for a loan 

16 under this subsection or an advance under 

17 section 1110(e) of the CARES Act (15 

18 U.S.C. 9008(e)) that can remedy the 

19 grounds for denial of the application by 

20 submitting additional information under 

21 clause (i)(III)— 

22 ‘‘(I) shall have the opportunity to 

23 do so directly with a loan officer; and 

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•S 4818 IS

1 ‘‘(II) shall not be required to 

2 seek a remedy through the appeals 

3 process of the Administration.’’. 

4 SEC. 403. MODIFICATIONS TO EMERGENCY EIDL AD5 VANCES. 

6 Section 1110(e)(1) of the CARES Act (15 U.S.C. 

7 9009(e)(1)) is amended to read as follows: 

8 ‘‘(1) IN GENERAL.—During the covered period, 

9 an entity included for eligibility in subsection (b), in10 cluding small business concerns, private nonprofit 

11 organizations, and small agricultural cooperatives, 

12 that applies for a loan under section 7(b)(2) of the 

13 Small Business Act (15 U.S.C. 636(b)(2)) in re14 sponse to COVID–19 shall be provided an advance 

15 that is, subject to paragraph (3), disbursed within 3 

16 days after the Administrator receives an application 

17 from the entity, unless the advance is specifically de18 clined by the entity.’’. 

19 SEC. 404. DATA TRANSPARENCY, VERIFICATION, AND NO20 TICES FOR ECONOMIC INJURY DISASTER 

21 LOANS. 

22 (a) IN GENERAL.—Section 1110 of the CARES Act 

23 (15 U.S.C. 9009) is amended— 

24 (1) by redesignating subsection (f) as sub25 section (j); and 

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1 (2) by inserting after subsection (e) the fol2 lowing: 

3 ‘‘(f) DATA TRANSPARENCY.— 

4 ‘‘(1) IN GENERAL.—In this subsection, the term 

5 ‘covered application’ means an application submitted 

6 to the Administrator for a loan under section 

7 7(b)(2) of the Small Business Act (15 U.S.C. 

8 636(b)(2)), including an application for such a loan 

9 submitted by an eligible entity. 

10 ‘‘(2) WEEKLY REPORTS.—Not later than 1 

11 week after the date of enactment of the Heroes 

12 Small Business Lifeline Act, and weekly thereafter 

13 until the end of the covered period, the Adminis14 trator shall publish on the website of the Adminis15 tration a report that contains the following informa16 tion: 

17 ‘‘(A) For the week covered by the report, 

18 the number of covered applications that the Ad19 ministrator— 

20 ‘‘(i) received; 

21 ‘‘(ii) processed; and 

22 ‘‘(iii) approved and rejected, including 

23 the percentage of covered applications that 

24 the Administrator approved. 

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1 ‘‘(B) With respect to the covered applica2 tions that the Administrator approved during 

3 the week covered by the report, the number and 

4 dollar amount of the loans made with respect to 

5 such applications as part of a response to 

6 COVID–19. 

7 ‘‘(C) The identification number, or other 

8 indicator showing the order in which any appli9 cation was received and intended to be proc10 essed, for the most recent covered application 

11 processed by the Administrator. 

12 ‘‘(D) Demographic data with respect to ap13 plicants submitting covered applications during 

14 the week covered by the report and loans made 

15 pursuant to covered applications during the 

16 week covered by the report, which shall in17 clude— 

18 ‘‘(i) with respect to each such appli19 cant or loan recipient, as applicable, infor20 mation regarding— 

21 ‘‘(I) the geographic area in which 

22 the applicant or loan recipient oper23 ates; 

24 ‘‘(II) if applicable, the sex, race, 

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1 plicant or loan recipient, which the in2 dividual may decline to provide; 

3 ‘‘(III) the annual revenue of the 

4 applicant or loan recipient; 

5 ‘‘(IV) the number of employees 

6 employed by the applicant or loan re7 cipient; 

8 ‘‘(V) whether the applicant or 

9 loan recipient is a for-profit or non10 profit entity; and 

11 ‘‘(VI) the industry in which the 

12 applicant or loan recipient operates; 

13 ‘‘(ii) the number of such loans made 

14 to agricultural enterprises (as defined in 

15 section 18(b) of the Small Business Act 

16 (15 U.S.C. 647)(b))); and 

17 ‘‘(iii) the average economic injury suf18 fered by— 

19 ‘‘(I) applicants, the covered appli20 cations of which the Administrator 

21 approved; and 

22 ‘‘(II) applicants, the covered ap23 plications of which the Administrator 

24 rejected. 

25 ‘‘(g) VERIFICATION OF BUSINESS ELIGIBILITY.— 

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1 ‘‘(1) IN GENERAL.—With respect to an applica2 tion submitted to the Administrator during the cov3 ered period for a loan under section 7(b)(2) of the 

4 Small Business Act (15 U.S.C. 636(b)(2)) in re5 sponse to COVID–19, the Administrator shall verify 

6 that each such applicant was in operation on Janu7 ary 31, 2020. 

8 ‘‘(2) REPORT.—Not later than 30 days after 

9 the date of enactment of this subsection, the Admin10 istrator shall submit to Congress a report that de11 scribes the steps taken by the Administrator to per12 form the verification required under paragraph (1). 

13 ‘‘(3) SENSE OF CONGRESS.—It is the sense of 

14 Congress that the verification required under para15 graph (1) constitutes oversight that the Adminis16 trator is required to perform under paragraph (15) 

17 of section 7(b) of the Small Business Act (15 U.S.C. 

18 636(b)) with respect to entities receiving loans under 

19 paragraph (2) of such section 7(b). 

20 ‘‘(h) NOTIFICATIONS TO CONGRESS.— 

21 ‘‘(1) DEFINITIONS.—In this subsection— 

22 ‘‘(A) the term ‘appropriate committees of 

23 Congress’ means— 

24 ‘‘(i) the Committee on Small Business 

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1 committee on Financial Services and Gen2 eral Government of the Committee on Ap3 propriations of the Senate; and 

4 ‘‘(ii) the Committee on Small Busi5 ness and the Subcommittee on Financial 

6 Services and General Government of the 

7 Committee on Appropriations of the House 

8 of Representatives; and 

9 ‘‘(B) the term ‘covered program, project, 

10 or activity’ means— 

11 ‘‘(i) the program under this section; 

12 ‘‘(ii) the loan program under section 

13 7(b)(2) of the Small Business Act (15 

14 U.S.C. 636(b)(2)); 

15 ‘‘(iii) the authorized activities for 

16 amounts were appropriated in response to 

17 the COVID–19 pandemic under the head18 ing ‘Small Business Administration—Sala19 ries and Expenses’; or 

20 ‘‘(iv) any other program, project, or 

21 activity for which funds are made available 

22 to the Administration to respond to the 

23 COVID–19 pandemic. 

24 ‘‘(2) NOTICE OF APPROACHING FUNDING

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1 propriate committees of Congress a notification not 

2 later than 2 days after the date on which unobli3 gated balances of amounts appropriated for a fiscal 

4 year for any covered program, project, or activity 

5 are less than 25 percent of the total amount appro6 priated for the covered program, project, or activity 

7 for such fiscal year. 

8 ‘‘(3) MONTHLY REPORT.—The Administrator 

9 shall submit to the appropriate committees of Con10 gress a monthly report detailing the current and fu11 ture planned uses of amounts appropriated in re12 sponse to the COVID–19 pandemic under the head13 ing ‘Small Business Administration—Salaries and 

14 Expenses’, which shall include— 

15 ‘‘(A) the number of employees hired and 

16 contractors retained using such amounts; 

17 ‘‘(B) the number of contracts with a total 

18 cost of more than $5,000,000 entered into 

19 using such amounts; 

20 ‘‘(C) a list of all sole source contracts en21 tered into using such amounts; and 

22 ‘‘(D) any program changes, regulatory ac23 tions, guidance issuances, or other initiatives 

24 relating to the response to the COVID–19 pan25 demic.’’. 

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1 (b) RETROACTIVE COLLECTION.—As soon as is prac2 ticable after the date of enactment of this Act, the Admin3 istrator shall collect the information required under sec4 tion 1110(f) of the CARES Act (15 U.S.C. 9009(f)), as 

5 amended by subsection (a), from applicants that sub6 mitted covered applications (as defined in such section 

7 1110(f)) during the period beginning on the date of enact8 ment of the CARES Act (Public Law 116–136) and end9 ing on the date of enactment of this Act. 

10 SEC. 405. LIFELINE FUNDING FOR SMALL BUSINESS CON11 TINUITY, ADAPTATION, AND RESILIENCY. 

12 Section 1110 of the CARES Act (15 U.S.C. 9009), 

13 is amended by inserting after subsection (h), as added by 

14 section 404, the following: 

15 ‘‘(i) LIFELINE FUNDING FOR SMALL BUSINESS CON16 TINUITY, ADAPTATION, AND RESILIENCY.— 

17 ‘‘(1) DEFINITIONS.—In this subsection: 

18 ‘‘(A) AGRICULTURAL ENTERPRISE.—The 

19 term ‘agricultural enterprise’ has the meaning 

20 given the term in section 18(b) of the Small 

21 Business Act (15 U.S.C. 647(b)). 

22 ‘‘(B) COVERED ENTITY.—The term ‘cov23 ered entity’— 

65 

•S 4818 IS

1 ‘‘(i) means an eligible entity described 

2 in subsection (b) of this section, if such eli3 gible entity— 

4 ‘‘(I) has not more than 50 em5 ployees; and 

6 ‘‘(II) has suffered an economic 

7 loss of not less than 30 percent; and 

8 ‘‘(ii) except with respect to an entity 

9 included under section 123.300(c) of title 

10 13, Code of Federal Regulations, or any 

11 successor regulation, does not include an 

12 agricultural enterprise. 

13 ‘‘(C) ECONOMIC LOSS.—The term ‘eco14 nomic loss’ means, with respect to a covered en15 tity, the amount by which the gross receipts of 

16 the covered entity declined during an 8-week 

17 period between March 2, 2020, and December 

18 31, 2020 (as determined by the covered entity), 

19 relative to a comparable 8-week period imme20 diately preceding March 2, 2020, or during 

21 2019 (as determined by the covered entity). 

22 ‘‘(D) ECONOMICALLY DISADVANTAGED IN23 DIVIDUAL.—The term ‘economically disadvan24 taged individual’ means an economically dis25 advantaged individual under section 124.104 of 

66 

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1 title 13, Code of Federal Regulations, or any 

2 successor regulation. 

3 ‘‘(E) LOW-INCOME COMMUNITY.—The 

4 term ‘low-income community’ has the meaning 

5 given the term in section 45D(e) of the Internal 

6 Revenue Code of 1986. 

7 ‘‘(F) REMOTE RECREATIONS ENTER8 PRISE.—The term ‘remote recreational enter9 prise’ means a covered entity that was in oper10 ation on or before March 1, 2020, that can doc11 ument an economic loss caused by the closure 

12 of the United States and Canadian border that 

13 restricted the ability of American customers to 

14 access the location of the covered entity. 

15 ‘‘(G) SOCIALLY DISADVANTAGED INDI16 VIDUAL.—The term ‘socially disadvantaged in17 dividual’ means a socially disadvantaged indi18 vidual under section 124.103 of title 13, Code 

19 of Federal Regulations, or any successor regula20 tion. 

21 ‘‘(H) VETERAN.—The term ‘veteran’ has 

22 the meaning given the term in section 3(q) of 

23 the Small Business Act (15 U.S.C. 632(q)). 

24 ‘‘(2) PROCEDURE.—During the covered period, 

25 a covered entity that applies for a loan under section 

67 

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1 7(b)(2) of the Small Business Act (15 U.S.C. 

2 636(b)(2)) may request that the Administrator pro3 vide funding for the purposes described in paragraph 

4 (6). 

5 ‘‘(3) VERIFICATION.—With respect to each re6 quest submitted by an entity under paragraph (2), 

7 the Administrator shall— 

8 ‘‘(A) not later than 14 days after the date 

9 on which the Administrator receives the re10 quest, verify whether the entity is a covered en11 tity; and 

12 ‘‘(B) if the Administrator verifies that the 

13 entity is a covered entity under subparagraph 

14 (A), and subject to paragraph (8), disburse the 

15 funding requested by the covered entity not 

16 later than 7 days after the date on which the 

17 Administrator completes the verification. 

18 ‘‘(4) ORDER OF PROCESSING.—Subject to para19 graph (8), the Administrator shall process and ap20 prove requests submitted under paragraph (2) in the 

21 order the Administrator receives the requests. 

22 ‘‘(5) AMOUNT OF FUNDING.— 

23 ‘‘(A) IN GENERAL.—The amount of fund24 ing provided to a covered entity that submits a 

68 

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1 request under paragraph (2) shall be in an 

2 amount that is the lesser of— 

3 ‘‘(i) the amount of working capital 

4 needed by the covered entity for the 180- 

5 day period beginning on the date on which 

6 the covered entity would receive the fund7 ing, as determined by the Administrator 

8 using a methodology that is identical to the 

9 methodology used by the Administrator to 

10 determine working capital needs with re11 spect to an application for a loan sub12 mitted under section 7(b)(2) of the Small 

13 Business Act (15 U.S.C. 636(b)(2)); or 

14 ‘‘(ii) $50,000. 

15 ‘‘(B) ENTITLEMENT TO FULL AMOUNT.— 

16 A covered entity that receives funding pursuant 

17 to a request submitted under paragraph (2) 

18 shall be entitled to receive the full amount of 

19 that funding, as determined under subpara20 graph (A), without regard to— 

21 ‘‘(i) if the applicable loan for which 

22 the covered entity has applied under sec23 tion 7(b)(2) of the Small Business Act (15 

24 U.S.C. 636(b)(2)) is approved, the amount 

25 of the loan; 

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•S 4818 IS

1 ‘‘(ii) whether the covered entity ac2 cepts the offer of the Administrator with 

3 respect to an approved loan described in 

4 clause (i); or 

5 ‘‘(iii) whether the covered entity has 

6 previously received any amounts under 

7 subsection (e). 

8 ‘‘(6) USE OF FUNDS.—A covered entity that re9 ceives funding under this subsection— 

10 ‘‘(A) may use the funding— 

11 ‘‘(i) for any purpose for which a loan 

12 received under section 7(b)(2) of the Small 

13 Business Act (15 U.S.C. 636(b)(2)) may 

14 be used; 

15 ‘‘(ii) for working capital needs, includ16 ing investments to implement adaptive 

17 changes or resiliency strategies to help the 

18 eligible entity maintain business continuity 

19 during the COVID–19 pandemic; or 

20 ‘‘(iii) to repay any unpaid amount 

21 of— 

22 ‘‘(I) a loan received under sub23 section (a)(36) or (b)(2) of section 7 

24 of the Small Business Act (15 U.S.C. 

25 636); or 

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1 ‘‘(II) mortgage interest; and 

2 ‘‘(B) may not use the funding to pay any 

3 loan debt, except as provided in subparagraph 

4 (A)(iii). 

5 ‘‘(7) APPLICABILITY.—In addition to any other 

6 restriction imposed under this subsection, any eligi7 bility restriction applicable to a loan made under 

8 section 7(b)(2) of the Small Business Act (15 U.S.C. 

9 636(b)(2)), including any restriction under section 

10 123.300 or 123.301 of title 13, Code of Federal 

11 Regulations, or any successor regulation, shall apply 

12 with respect to funding provided under this sub13 section. 

14 ‘‘(8) PRIORITY.—During the 56-day period be15 ginning on the date of enactment of this subsection, 

16 the Administrator may approve a request for fund17 ing under this subsection only if the request is sub18 mitted by— 

19 ‘‘(A) a covered entity located in a low-in20 come community; 

21 ‘‘(B) a covered entity owned or controlled 

22 by a veteran or a member of the Armed Forces; 

23 ‘‘(C) a covered entity owned or controlled 

24 by an economically disadvantaged individual or 

25 a socially disadvantaged individual; or 

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1 ‘‘(D) a remote recreational enterprise. 

2 ‘‘(9) ADMINISTRATION.—In carrying out this 

3 subsection, the Administrator may rely on loan offi4 cers and other personnel of the Office of Disaster 

5 Assistance of the Administration and other resources 

6 of the Administration, including contractors of the 

7 Administration. 

8 ‘‘(10) RETROACTIVE EFFECT.—Any covered en9 tity that, during the period beginning on January 1, 

10 2020, and ending on the day before the date of en11 actment of this subsection, applied for a loan under 

12 section 7(b)(2) of the Small Business Act (15 U.S.C. 

13 636(b)(2)) may submit to the Administrator a re14 quest under paragraph (2) with respect to that loan. 

15 ‘‘(11) AUTHORIZATION OF APPROPRIATIONS.— 

16 There are authorized to be appropriated to the Ad17 ministrator $40,000,000,000 to carry out this sub18 section, which shall remain available through De19 cember 31, 2021, of which— 

20 ‘‘(A) $20,000,000,000 is authorized to be 

21 appropriated to provide funding to covered enti22 ties described in paragraph (8); and 

23 ‘‘(B) $20,000,000 is authorized to be ap24 propriated to the Inspector General of the Ad25 ministration to prevent waste, fraud, and abuse 

72 

•S 4818 IS

1 with respect to funding provided under this 

2 subsection.’’. 

3 SEC. 406. MODIFICATIONS TO ECONOMIC INJURY DISASTER 

4 LOANS. 

5 (a) LOANS FOR NEW BORROWERS.—With respect to 

6 a loan made under section 7(b)(2) of the Small Business 

7 Act (15 U.S.C. 636(b)(2)) to a borrower adversely im8 pacted by COVID–19 during the period beginning on the 

9 date of enactment of this Act and ending on December 

10 31, 2020— 

11 (1) the borrower shall be eligible for a loan in 

12 an amount equal to 6 months of working capital if 

13 the borrower otherwise meets the underwriting 

14 standards established by the Administration; and 

15 (2) the Administrator— 

16 (A) shall not impose a maximum loan 

17 amount limit that is lower than $2,000,000; 

18 and 

19 (B) shall not disqualify any applicant for 

20 such a loan due to the criminal history or arrest 

21 record of the applicant, except in the case of an 

22 applicant that, during the 5-year period pre23 ceding the date on which the applicant submits 

24 an application, has been convicted— 

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1 (i) of a felony offense involving fraud, 

2 bribery, or embezzlement in any State or 

3 Federal court; or 

4 (ii) in connection with a false state5 ment made in— 

6 (I) a loan application; or 

7 (II) an application for Federal fi8 nancial assistance. 

9 (b) ADDITIONAL LOAN FOR EXISTING BOR10 ROWERS.— 

11 (1) IN GENERAL.—A recipient of a loan made 

12 under section 7(b)(2) of the Small Business Act (15 

13 U.S.C. 636(b)(2)) to a borrower adversely impacted 

14 by COVID–19 during the period beginning on Janu15 ary 31, 2020, and ending on the date of enactment 

16 of this Act may submit to the Administrator a re17 quest for an additional amount to increase in the 

18 amount of that loan, provided that the aggregate 

19 amount received under such section by the recipient 

20 during that period shall be not more than the lesser 

21 of— 

22 (A) an amount equal to 6 months of work23 ing capital for the recipient; and 

24 (B) $2,000,000. 

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1 (2) CONSIDERATION.—In considering a request 

2 submitted under paragraph (1), the Administrator— 

3 (A) may not recalculate the economic in4 jury or creditworthiness of the borrower; and 

5 (B) shall issue a determination based on 

6 the documentation submitted by the borrower 

7 for the initial loan under section 7(b)(2) of the 

8 Small Business Act (15 U.S.C. 636(b)(2)), any 

9 other new information voluntarily provided by 

10 the borrower, and any information obtained to 

11 prevent fraud or abuse. 

12 (3) ADDITIONAL DOCUMENTATION.—If the Ad13 ministrator requires a borrower making a request 

14 under paragraph (1) to provide additional docu15 mentation, the Administrator shall— 

16 (A) publish those documentation require17 ments on the website of the Administration not 

18 later than 7 days after the date of enactment 

19 of this Act; and 

20 (B) proactively provide those requirements 

21 to any such borrower that received a loan de22 scribed in paragraph (1). 

23 SEC. 407. PRINCIPAL AND INTEREST PAYMENTS FOR CER24 TAIN DISASTER LOANS. 

25 (a) DEFINITIONS.—In this section: 

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1 (1) COVERED EIDL LOAN.—The term ‘‘covered 

2 EIDL loan’’ means a loan made under section 

3 7(b)(2) of the Small Business Act (15 U.S.C. 

4 636(b)(2)) that— 

5 (A) was approved by the Administrator be6 fore February 15, 2020; and 

7 (B) is in a regular servicing status. 

8 (2) PHYSICAL DISASTER LOAN.—The term 

9 ‘‘physical disaster loan’’ means a loan made under 

10 section 7(b)(1) of the Small Business Act (15 U.S.C. 

11 636(b)(1)) in a regular servicing status. 

12 (b) PAYMENT BY ADMINISTRATOR.—The Adminis13 trator shall pay the principal, interest, and any associated 

14 fees that are owed on a physical disaster loan or a covered 

15 EIDL loan as follows: 

16 (1) With respect to a physical disaster loan— 

17 (A) not in deferment, for the 12-month pe18 riod beginning with the next payment due on 

19 such loan; 

20 (B) in deferment, for the 12-month period 

21 beginning with the next payment due on such 

22 loan after the deferment period; and 

23 (C) made on or after the date of enact24 ment of this Act, for the 12-month period beVerDate Sep 11 2014 20:21 Oct 31, 2020 Jkt 019200 PO 00000 Frm 00075 Fmt 6652 Sfmt 6201 E:\BILLS\S4818.IS S4818
76 

•S 4818 IS

1 ginning with the first payment due on such 

2 loan. 

3 (2) With respect to a covered EIDL loan— 

4 (A) not in deferment, for the 12-month pe5 riod beginning with the next payment due on 

6 such loan; and 

7 (B) in deferment, for the 12-month period 

8 beginning with the next payment due on such 

9 loan after the deferment period. 

10 (c) TIMING OF PAYMENT.—The Administrator shall 

11 begin making payments under subsection (b) not later 

12 than 30 days after the date on which the first such pay13 ment is due. 

14 (d) APPLICATION OF PAYMENT.—Any payment made 

15 by the Administrator under subsection (b) shall be applied 

16 to the physical disaster loan or a covered EIDL loan (as 

17 applicable) such that the borrower is relieved of the obliga18 tion to pay that amount. 

19 SEC. 408. TRAINING. 

20 The Administrator shall— 

21 (1) develop and implement a plan to train any 

22 staff responsible for implementing or administering 

23 the loan program established under section 7(b)(2) 

24 of the Small Business Act (15 U.S.C. 636(b)(2)) on 

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•S 4818 IS

1 specific responsibilities with respect to such pro2 gram; and 

3 (2) submit the plan to the Committee on Small 

4 Business and Entrepreneurship of the Senate and 

5 the Committee on Small Business of the House of 

6 Representatives. 

7 SEC. 409. OUTREACH PLAN. 

8 Not later than 30 days after the date of enactment 

9 of this Act, the Administrator shall submit to the Com10 mittee on Small Business and Entrepreneurship of the 

11 Senate and the Committee on Small Business of the 

12 House of Representatives an outreach plan to clearly com13 municate program and policy changes to all offices of the 

14 Administration, small business development centers (as 

15 defined in section 3 of the Small Business Act (15 U.S.C. 

16 632)), women’s business centers (described in section 29 

17 of such Act (15 U.S.C. 656)), chapters of the Service 

18 Corps of Retired Executives (established under section 

19 8(b)(1)(B) of such Act (15 U.S.C. 637(b)(1)(B))), Vet20 eran Business Outreach Centers (described in section 32 

21 of such Act (15 U.S.C. 657b)), Members of Congress, con22 gressional committees, small business concerns (as defined 

23 in section 3 of such Act (15 U.S.C. 632)), and the public. 

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1 SEC. 410. REPORT ON BEST PRACTICES. 

2 Not later than 60 days after the date of enactment 

3 of this Act, the Administrator shall submit to the Com4 mittee on Small Business and Entrepreneurship of the 

5 Senate and the Committee on Small Business of the 

6 House of Representatives a report on outlining the best 

7 practices to administer the loan program established 

8 under section 7(b)(2) of the Small Business Act (15 

9 U.S.C. 636(b)(2)) during a pandemic. 

10 SEC. 411. EXTENSION OF PERIOD OF AVAILABILITY FOR AD11 MINISTRATIVE FUNDS. 

12 Section 1107(a) of the CARES Act (15 U.S.C. 

13 9006(a)) is amended, in the matter preceding paragraph 

14 (1), by striking ‘‘until September 30, 2021’’ and inserting 

15 ‘‘until December 31, 2021, for amounts appropriated 

16 under paragraph (2), and until September 30, 2021, for 

17 all other amounts appropriated under this subsection’’. 

18 TITLE V—MICRO-SBIC AND EQ19 UITY INVESTMENT ENHANCE20 MENT 

21 SEC. 501. MICRO-SBIC PROGRAM. 

22 Title III of the Small Business Investment Act of 

23 1958 (15 U.S.C. 681 et seq.) is amended by adding at 

24 the end the following: 

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•S 4818 IS

1 ‘‘PART D—MICRO-SBIC PROGRAM 

2 ‘‘SEC. 399A. MICRO-SBIC PROGRAM. 

3 ‘‘(a) ESTABLISHMENT.—There is established in the 

4 Administration a program to be known as the ‘Micro5 SBIC Program’ under which the Administrator shall issue 

6 a license to an applicant for the purpose of making loans 

7 to and investments in small business concerns. An appli8 cant licensed under this section shall have the same bene9 fits as an applicant licensed under section 301. 

10 ‘‘(b) ELIGIBILITY.—An applicant desiring to receive 

11 a license to operate as a micro-SBIC shall submit an appli12 cation to the Administrator at such time, in such manner, 

13 and containing such information as the Administrator may 

14 require, including— 

15 ‘‘(1) evidence that the applicant holds private 

16 capital of not less than $5,000,000; 

17 ‘‘(2) evidence that the management of the ap18 plicant is qualified and has significant business ex19 pertise relevant to the applicant’s strategy; and 

20 ‘‘(3) an election to receive a seed investment 

21 under section 399C or leverage from the Adminis22 trator. 

23 ‘‘(c) ISSUANCE OF LICENSE.— 

24 ‘‘(1) PROCEDURES.— 

25 ‘‘(A) STATUS.—Not later than 90 days 

26 after the initial receipt by the Administrator of 

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•S 4818 IS

1 an application under this section, the Adminis2 trator shall provide the applicant with a written 

3 report detailing the status of the application 

4 and any requirements remaining for completion 

5 of the application. 

6 ‘‘(B) APPROVAL OR DISAPPROVAL.—Ex7 cept as provided in subparagraph (C) and with8 in a reasonable time after providing the report 

9 under subparagraph (A), and in accordance 

10 with such requirements as the Administrator 

11 may prescribe by regulation, the Administrator 

12 shall— 

13 ‘‘(i) approve the application and issue 

14 to the applicant a license to operate as a 

15 micro-SBIC; or 

16 ‘‘(ii) disapprove the application and 

17 notify the applicant in writing of the dis18 approval. 

19 ‘‘(C) PROVISIONAL APPROVAL.—The Ad20 ministrator may provide provisional approval 

21 for an applicant for a period of not more than 

22 12 months before making a final determination 

23 of approval or disapproval under subparagraph 

24 (B). 

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1 ‘‘(D) EXPLANATION OF DISAPPROVAL.— 

2 An applicant may submit to the Administrator 

3 a request for a written explanation regarding 

4 the disapproval of an application under sub5 paragraph (B)(ii). 

6 ‘‘(2) APPEALS.— 

7 ‘‘(A) DISAPPROVED APPLICATIONS.—With 

8 respect to an application that is disapproved 

9 under paragraph (1)(B)(ii)— 

10 ‘‘(i) not later than 30 days after the 

11 date on which the application is dis12 approved, the applicant may submit an ap13 peal to the Chair of the Investment Divi14 sion Licensing Committee of the Adminis15 tration (referred to in this paragraph as 

16 the ‘Chair’); and 

17 ‘‘(ii) not later than 30 days after the 

18 date on which the applicant submits an ap19 peal under clause (i), the Chair shall issue 

20 a ruling with respect to the appeal and no21 tify the applicant regarding such ruling. 

22 ‘‘(B) DENIAL OF APPEAL.—With respect 

23 to an application that the Chair denies in an 

24 appeal submitted under subparagraph (A)— 

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•S 4818 IS

1 ‘‘(i) not later than 30 days after the 

2 date on which the Chair submits the notifi3 cation required under subparagraph 

4 (A)(ii), the applicant may submit to the 

5 Administrator an appeal of the ruling 

6 made by the Chair; and 

7 ‘‘(ii) not later than 30 days after the 

8 date on which the applicant submits an ap9 peal under clause (i), the Administrator 

10 shall issue a final ruling with respect to 

11 the appeal and notify the applicant regard12 ing such ruling. 

13 ‘‘(3) PRIORITY.—In reviewing applications and 

14 issuing licenses under this section, the Administrator 

15 shall give priority to an applicant the management 

16 of which consists of not fewer than 2 socially dis17 advantaged individuals or economically disadvan18 taged individuals and not fewer than 1 track record 

19 investment committee member. 

20 ‘‘(4) EXPEDITED PROCEDURES.—The Adminis21 trator shall establish expedited procedures for the 

22 consideration of an application submitted under sub23 section (b), including a written report under para24 graph (1)(A) not later than 45 days after the initial 

25 receipt of an application, for— 

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•S 4818 IS

1 ‘‘(A) a small business investment company 

2 licensed under section 301; 

3 ‘‘(B) a rural business investment company; 

4 or 

5 ‘‘(C) a bank-owned applicant. 

6 ‘‘(d) MAXIMUM LEVERAGE.— 

7 ‘‘(1) IN GENERAL.—For a micro-SBIC that 

8 elects to receive leverage under subsection (b)(3), 

9 the maximum amount of outstanding leverage made 

10 available to any one micro-SBIC may not exceed— 

11 ‘‘(A) 50 percent of the private capital of 

12 the micro-SBIC, not to exceed $25,000,000; or 

13 ‘‘(B) in the case of a micro-SBIC owned 

14 by persons who also own a small business in15 vestment company licensed under section 301, 

16 100 percent of the private capital of the micro17 SBIC, not to exceed $50,000,000. 

18 ‘‘(2) INVESTMENTS IN CERTAIN BUSINESSES.— 

19 In calculating the outstanding leverage of a micro20 SBIC for purposes of paragraph (1), the Adminis21 trator shall exclude the amount of the cost basis of 

22 any investments made in an early-stage small busi23 ness, growth-stage small business, scale-up small 

24 business, or covered small business in an amount not 

25 to exceed— 

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•S 4818 IS

1 ‘‘(A) $25,000,000; or 

2 ‘‘(B) in the case of a micro-SBIC owned 

3 by persons who also own a small business in4 vestment company licensed under section 301, 

5 $50,000,000. 

6 ‘‘SEC. 399B. MICRO-SBIC PROGRAM REQUIREMENTS. 

7 ‘‘(a) SURRENDER OF LICENSE.—A micro-SBIC that 

8 voluntarily surrenders a license issued under this part 

9 shall enter into an agreement with Administrator for the 

10 repayment of leverage received. Such agreement may not 

11 require the micro-SBIC to immediately repay all leverage 

12 received. 

13 ‘‘(b) ADMINISTRATION.—To the extent practicable, 

14 for a micro-SBIC that elects to receive leverage under sec15 tion 399A(b)(3), the Administrator shall administer the 

16 Micro-SBIC Program in a similar manner to the program 

17 under section 301. 

18 ‘‘SEC. 399C. SEED INVESTMENT PROGRAM. 

19 ‘‘(a) ESTABLISHMENT.—The Administrator shall es20 tablish and carry out an equity investment program (in 

21 this part referred to as the ‘Seed Investment Program’) 

22 to provide seed investments to a micro-SBIC to invest in 

23 small business concerns. 

24 ‘‘(b) APPLICATION.—A micro-SBIC that elects to re25 ceive a seed investment under section 399A(b)(3) shall 

85 

•S 4818 IS

1 submit to the Administrator an application that includes 

2 the following: 

3 ‘‘(1) A business plan describing how the appli4 cant intends to make successful investments in 

5 early-stage small businesses, growth-stage small 

6 businesses, scale-up small businesses, or covered 

7 small businesses, as applicable. 

8 ‘‘(2) A description of the extent to which the 

9 applicant meets the selection criteria under sub10 section (c). 

11 ‘‘(c) SELECTION.— 

12 ‘‘(1) IN GENERAL.—Not later than 90 days 

13 after the date of receipt of an application under sub14 section (b), the Administrator shall make a final de15 termination to approve or disapprove the applicant 

16 as a participant in the Seed Investment Program 

17 and shall submit such determination to the applicant 

18 in writing. 

19 ‘‘(2) CRITERIA.—In making a determination 

20 under paragraph (1), the Administrator shall con21 sider each of the following criteria: 

22 ‘‘(A) The likelihood that the applicant will 

23 meet the goals specified in the business plan of 

24 the applicant. 

86 

•S 4818 IS

1 ‘‘(B) The likelihood that the investments of 

2 the applicant will directly and indirectly create 

3 or preserve jobs. 

4 ‘‘(C) The character and fitness of the man5 agement of the applicant. 

6 ‘‘(D) The experience and background of 

7 the management of the applicant. 

8 ‘‘(E) The extent to which the applicant will 

9 concentrate investment activities on early-stage 

10 small businesses, growth-stage small businesses, 

11 scale-up small businesses, or covered small busi12 nesses, as applicable. 

13 ‘‘(F) The likelihood that the applicant will 

14 achieve profitability. 

15 ‘‘(G) The experience of the management of 

16 the applicant with respect to establishing a 

17 profitable investment track record. 

18 ‘‘SEC. 399D. REQUIREMENTS FOR SEED INVESTMENTS. 

19 ‘‘(a) IN GENERAL.—The Administrator may make 1 

20 seed investment to a Program participant, which shall be 

21 held in an account from which the Program participant 

22 may make withdrawals. 

23 ‘‘(b) AMOUNTS.— 

24 ‘‘(1) NON-FEDERAL CAPITAL.—A seed invest25 ment made to a Program participant may not exceed 

87 

•S 4818 IS

1 the amount of capital of the Program participant 

2 that— 

3 ‘‘(A) is not from a Federal source; and 

4 ‘‘(B) is available for investment, including 

5 through legally binding commitments, on or be6 fore the date on which the seed investment is 

7 approved. 

8 ‘‘(2) LIMITATION ON AMOUNT.—The amount of 

9 a seed investment made to a Program participant 

10 may not exceed the lesser of— 

11 ‘‘(A) $25,000,000; or 

12 ‘‘(B) 100 percent of the private capital 

13 committed to the Program participant. 

14 ‘‘(c) PROCESS.— 

15 ‘‘(1) IN GENERAL.—Amounts held in an ac16 count under this section shall remain available to a 

17 Program participant— 

18 ‘‘(A) for initial seed investments, during 

19 the 5-year period beginning on the date on 

20 which the Program participant first accesses 

21 amounts from the account; and 

22 ‘‘(B) for follow-on investments and man23 agement fees, during the 10-year period begin24 ning on the date on which the Program partici25 pant first accesses amounts from the account. 

88 

•S 4818 IS

1 ‘‘(2) EXTENSION.—Upon request by a Program 

2 participant, the Administrator may grant a 1-year 

3 extension of the period described in paragraph 

4 (1)(B) not more than 2 times. 

5 ‘‘(3) USE OF AMOUNTS.—A Program partici6 pant shall invest all amounts held in an account 

7 under this section during the 10-year period begin8 ning on the date on which the Program participant 

9 first accesses amounts from the account. 

10 ‘‘(d) PRIORITY.—The Administrator shall prioritize 

11 making seed investments under this section to Program 

12 participants in underlicensed States. 

13 ‘‘(e) INVESTMENTS IN CERTAIN BUSINESSES.— 

14 ‘‘(1) IN GENERAL.—A Program participant that 

15 receives a seed investment under this part shall 

16 make all of the investments of the Program partici17 pant in small business concerns, of which not less 

18 than 50 percent shall be in covered small businesses. 

19 ‘‘(2) MINORITY POSITIONS.— 

20 ‘‘(A) IN GENERAL.—On the date on which 

21 a Program participant first accesses amounts 

22 from a seed investment received under this 

23 Part, the Program participant may not own or 

24 control not more than 50 percent of the shares 

89 

•S 4818 IS

1 of any small business concern in which the Pro2 gram participant invests. 

3 ‘‘(B) FOLLOW-ON INVESTMENTS.—A Pro4 gram participant described in subparagraph (A) 

5 shall not pursue a buyout strategy as a primary 

6 purpose of an investment in a small business 

7 concern, but may take control in follow-on in8 vestments if necessary for the success of any 

9 such small business concern. 

10 ‘‘(3) EVALUATION OF COMPLIANCE.—The Ad11 ministrator shall evaluate the compliance of a Pro12 gram participant with the requirements under this 

13 section once the Program participant has expended 

14 75 percent of the amount of a seed investment made 

15 under this part. 

16 ‘‘(f) SEED INVESTMENT INTEREST.— 

17 ‘‘(1) IN GENERAL.— 

18 ‘‘(A) IN GENERAL.—Subject to paragraph 

19 (4), a Program participant that receives a seed 

20 investment under this part shall convey a seed 

21 investment interest to the Administrator in ac22 cordance with subparagraph (B). 

23 ‘‘(B) EFFECT OF CONVEYANCE.— 

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1 ‘‘(i) IN GENERAL.—The seed invest2 ment interest conveyed under paragraph 

3 (1) shall— 

4 ‘‘(I) have all the rights and at5 tributes of other investors with re6 spect to the Program participant, but 

7 shall not assign control or voting 

8 rights to the Administrator; and 

9 ‘‘(II) entitle the Administrator to 

10 a pro rata portion of any distributions 

11 made by the Program participant 

12 equal to the percentage of capital in 

13 the Program participant that the seed 

14 investment comprises. 

15 ‘‘(ii) DISTRIBUTIONS.—The Adminis16 trator shall receive distributions from a 

17 Program participant under this paragraph 

18 at the same times and in the same 

19 amounts as any other investor in the Pro20 gram participant with a similar interest. 

21 ‘‘(iii) ALLOCATIONS.—A Program par22 ticipant shall make allocations of income, 

23 gain, loss, deduction, and credit to the Ad24 ministrator with respect to a seed investVerDate Sep 11 2014 20:21 Oct 31, 2020 Jkt 019200 PO 00000 Frm 00090 Fmt 6652 Sfmt 6201 E:\BILLS\S4818.IS S4818
91 

•S 4818 IS

1 ment interest received under this part as if 

2 the Administrator were an investor. 

3 ‘‘(2) MANAGER PROFITS.— 

4 ‘‘(A) IN GENERAL.—The manager profits 

5 interest payable to the managers of a Program 

6 participant shall not exceed 20 percent of prof7 its, exclusive of any profits that may accrue as 

8 a result of the capital contributions of any such 

9 managers with respect to the Program partici10 pant. 

11 ‘‘(B) RETURN OF EXCESS.—Any excess of 

12 the amount described in subparagraph (A), less 

13 taxes payable thereon, shall be returned by the 

14 managers and paid to the investors and the Ad15 ministrator in proportion to the capital con16 tributions and seed investments paid in. 

17 ‘‘(C) TIMING.—No manager profits inter18 est (other than a tax distribution) shall be paid 

19 prior to the repayment to the investors and the 

20 Administrator of all contributed capital and 

21 seed investments made. 

22 ‘‘(D) FEES.—A manager of a Program 

23 participant may charge reasonable and cus24 tomary management and organizational fees. 

92 

•S 4818 IS

1 ‘‘(3) DISTRIBUTION REQUIREMENTS.—A Pro2 gram participant that receives a seed investment 

3 under this part shall make all distributions to all in4 vestors in cash and shall make distributions within 

5 a reasonable time after exiting investments, includ6 ing following a public offering or market sale of un7 derlying investments. 

8 ‘‘(4) LIMITATION ON GRANT PROFITS.—Once 

9 the Administrator has received an amount equal to 

10 110 percent of the amount of the seed investment 

11 made to a Program participant, the requirement to 

12 convey seed investment interest under this sub13 section shall be terminated and no further distribu14 tions of profits shall be made to the Administrator. 

15 ‘‘SEC. 399E. ADMINISTRATION. 

16 ‘‘(a) ELECTRONIC SUBMISSIONS.—The Adminis17 trator shall permit the electronic submission of any docu18 ment submitted under this part or pursuant to a regula19 tion carrying out this part, including by permitting an 

20 electronic signature for any signature that is required on 

21 such a document. 

22 ‘‘(b) APPLICATION OF PENALTIES.—To the extent 

23 not inconsistent with requirements under this part, the 

24 Administrator may take such action as set forth in sec25 tions 309, 311, 312, 313, and 314 to activities under this 

93 

•S 4818 IS

1 part and an officer, director, employee, agent, or other 

2 participant in a micro-SBIC shall be subject to the re3 quirements under such sections. 

4 ‘‘SEC. 399F. REPORT. 

5 ‘‘The Administrator shall include in the annual report 

6 required under section 10(a) of the Small Business Act 

7 a description of— 

8 ‘‘(1) the number of applications received under 

9 this part, including the number of applications re10 ceived from applicants for which the management 

11 consists of at least two socially disadvantaged indi12 viduals or economically disadvantaged individuals; 

13 and 

14 ‘‘(2) the number of licenses issued under sec15 tion 399A, including the number of such licenses 

16 issued to applicants for which the management con17 sists of at least two socially disadvantaged individ18 uals or economically disadvantaged individuals. 

19 ‘‘SEC. 399G. DEFINITIONS. 

20 ‘‘In this part: 

21 ‘‘(1) APPLICANT.—The term ‘applicant’ 

22 means— 

23 ‘‘(A) an incorporated body, a limited liabil24 ity corporation, or a limited partnership orga25 nized and chartered or otherwise existing under 

94 

•S 4818 IS

1 State law solely for the purpose of performing 

2 the functions and conducting the activities con3 templated under this section; or 

4 ‘‘(B) a bank-owned applicant, rural busi5 ness investment company, or small business in6 vestment company licensed under section 301 

7 that submits an application to operate as a 

8 micro-SBIC under section 399A. 

9 ‘‘(2) BANK-OWNED APPLICANT.—The term 

10 ‘bank-owned applicant’ means an applicant for a li11 cense to operate as a small business investment com12 pany under this part that— 

13 ‘‘(A) is a national bank or any member 

14 bank of the Federal Reserve System or non15 member insured bank that bears the same 

16 name as the small business investment company 

17 that is the subject of the application; 

18 ‘‘(B) is domestically domiciled within the 

19 United States; and 

20 ‘‘(C) has not had a license issued under 

21 this Act revoked or involuntarily surrendered 

22 during the 10-year period preceding the date on 

23 which the application is submitted. 

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•S 4818 IS

1 ‘‘(3) COVERED SMALL BUSINESS.—The term 

2 ‘covered small business’ means a small business con3 cern that— 

4 ‘‘(A) is a small business concern owned 

5 and controlled by women (as defined in section 

6 3(n) of the Small Business Act (15 U.S.C. 

7 632(n))), small business concern owned and 

8 controlled by socially and economically dis9 advantaged individuals (as defined in section 

10 8(d)(3)(C) of such Act (15 U.S.C. 

11 637(d)(3)(C))), a small business concern owned 

12 and controlled by veterans (as defined in section 

13 3(q) of such Act (15 U.S.C. 632(q))) or a Trib14 al business concern (as described in section 

15 31(b)(2)(C) of such Act (15 U.S.C. 

16 657a(b)(2)(C))); 

17 ‘‘(B) has its principal place of business lo18 cated in a rural census tract (as determined 

19 under the most recent rural urban commuting 

20 area code as set forth by the Office of Manage21 ment and Budget); 

22 ‘‘(C) is a domestic manufacturing business 

23 that is assigned a North American Industry 

24 Classification System code beginning with 31, 

25 32, or 33 at the time at which the small busiVerDate Sep 11 2014 21:04 Nov 07, 2020 Jkt 019200 PO 00000 Frm 00095 Fmt 6652 Sfmt 6201 E:\BILLS\S4818.IS S4818
96 

•S 4818 IS

1 ness concern receives an investment from a 

2 micro-SBIC under this section; or 

3 ‘‘(D) either— 

4 ‘‘(i) had gross receipts during the first 

5 or second quarter in 2020 that are not less 

6 than 50 percent less than the gross re7 ceipts of the concern during the same 

8 quarter in 2019; 

9 ‘‘(ii) if the concern was not in busi10 ness during the first or second quarter of 

11 2019, but was in business during the third 

12 and fourth quarter of 2019, had gross re13 ceipts during the first or second quarter of 

14 2020 that are less than 50 percent of the 

15 amount of the gross receipts of the concern 

16 during the third or fourth quarter of 2019; 

17 ‘‘(iii) if the concern was not in busi18 ness during the first, second, or third 

19 quarter of 2019, but was in business dur20 ing the fourth quarter of 2019, had gross 

21 receipts during the first or second quarter 

22 of 2020 that are less than 50 percent of 

23 the amount of the gross receipts of the 

24 concern during the fourth quarter of 2019; 

25 or 

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•S 4818 IS

1 ‘‘(iv) if the concern was not in busi2 ness during 2019, but was in operation on 

3 February 15, 2020, had gross receipts dur4 ing the second quarter of 2020 that are 

5 less than 50 percent of the amount of the 

6 gross receipts of the concern during the 

7 first quarter of 2020. 

8 ‘‘(4) EARLY-STAGE SMALL BUSINESS.—The 

9 term ‘early-stage small business’ means a small busi10 ness concern that— 

11 ‘‘(A) is domestically domiciled within the 

12 United States; 

13 ‘‘(B) during the 3-year period preceding 

14 the date of application, has not generated gross 

15 annual sales revenues exceeding $15,000,000; 

16 ‘‘(C) produces a majority of its goods or 

17 provides a majority of its services in the United 

18 States; and 

19 ‘‘(D) does not move production or employ20 ment outside the United States. 

21 ‘‘(5) ECONOMICALLY DISADVANTAGED INDI22 VIDUAL; SOCIALLY DISADVANTAGED INDIVIDUAL.— 

23 The terms ‘economically disadvantaged individual’ 

24 and ‘socially disadvantaged individual’ have the 

98 

•S 4818 IS

1 meanings given those terms in section 8(a) of the 

2 Small Business Act (15 U.S.C. 637(a)). 

3 ‘‘(6) GROWTH-STAGE SMALL BUSINESS.—The 

4 term ‘growth-stage small business’ means a small 

5 business concern that— 

6 ‘‘(A) is domestically domiciled within the 

7 United States; 

8 ‘‘(B) during the 3-year period preceding 

9 the date of application, has not generated gross 

10 annual sales revenues exceeding $30,000,000; 

11 ‘‘(C) produces a majority of its good or 

12 provides a majority of its services in the United 

13 States; and 

14 ‘‘(D) does not move production or employ15 ment outside the United States. 

16 ‘‘(7) MANAGEMENT.—The term ‘management’ 

17 means a general partner of an applicant or member 

18 of the investment committee of an applicant. 

19 ‘‘(8) MICRO-SBIC.—The term ‘micro-SBIC’ 

20 means an applicant licensed under section 399A. 

21 ‘‘(9) PROGRAM PARTICIPANT.—The term ‘Pro22 gram participant’ means a micro-SBIC that received 

23 a seed investment under the Seed Investment Pro24 gram established by section 399C. 

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•S 4818 IS

1 ‘‘(10) SCALE-UP SMALL BUSINESS.—The term 

2 ‘scale-up small business’ means a small business 

3 concern that— 

4 ‘‘(A) is domestically domiciled within the 

5 United States; 

6 ‘‘(B) during the 3-year period preceding 

7 the date of application, has not generated earn8 ings before interest, tax, depreciation, and am9 ortization in excess of $3,000,000; 

10 ‘‘(C) produces a majority of its goods or 

11 provides a majority of its services in the United 

12 States; and 

13 ‘‘(D) does not move production or employ14 ment outside the United States. 

15 ‘‘(11) SMALL BUSINESS CONCERN.—The term 

16 ‘small business concern’ has the meaning given the 

17 term in section 3(a) of the Small Business Act (15 

18 U.S.C. 632(a)). 

19 ‘‘(12) TRACK RECORD INVESTMENT COMMITTEE

20 MEMBER.—The term ‘track record investment com21 mittee member’ means a current or former small 

22 business investment company licensed under section 

23 301, a private small- and lower-middle-market ven24 ture capital firm, or a private equity fund manager 

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•S 4818 IS

1 with the knowledge, experience, and capability nec2 essary to serve as management for an applicant. 

3 ‘‘(13) UNITED STATES.—The term ‘United 

4 States’ means each of the several States, the Dis5 trict of Columbia, each territory or possession of the 

6 United States, and each federally recognized Indian 

7 Tribe. 

8 ‘‘SEC. 399H. FUNDING. 

9 ‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—There 

10 is authorized to be appropriated to the revolving fund es11 tablished under subsection (b) $1,000,000,000 for the 

12 first full fiscal year beginning after the date of enactment 

13 of this part to carry out the requirements of this part. 

14 ‘‘(b) REVOLVING FUND.— 

15 ‘‘(1) IN GENERAL.—There is created within the 

16 Administration a separate revolving fund for the 

17 Seed Investment Program established under section 

18 399C, which shall be available to the Administrator 

19 subject to annual appropriations. 

20 ‘‘(2) DEPOSITS.—All amounts received by the 

21 Administrator, including any money, property, or as22 sets derived by the Administrator from operations in 

23 connection with the Seed Investment Program, in24 cluding repayments of seed investments, shall be deVerDate Sep 11 2014 20:21 Oct 31, 2020 Jkt 019200 PO 00000 Frm 00100 Fmt 6652 Sfmt 6201 E:\BILLS\S4818.IS S4818
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1 posited in the revolving fund described in paragraph 

2 (1). 

3 ‘‘(3) EXPENSES AND PAYMENTS.—All expenses 

4 and payments, excluding administrative expenses, 

5 pursuant to the operations of the Administrator 

6 under the Seed Investment Program shall be paid 

7 from the revolving fund described in paragraph 

8 (1).’’. 

9 TITLE VI—MISCELLANEOUS 

10 SEC. 601. REPEAL OF EIDL ADVANCE DEDUCTION. 

11 Section 1110(e)(6) of the CARES Act (15 U.S.C. 

12 9009(e)(6)) is repealed. 

13 SEC. 602. EXTENSION OF THE DEBT RELIEF PROGRAM. 

14 (a) IN GENERAL.—Section 1112 of the CARES Act 

15 (15 U.S.C. 9011) is amended— 

16 (1) in subsection (c)— 

17 (A) in paragraph (1)— 

18 (i) in the matter preceding subpara19 graph (A), by inserting ‘‘, without regard 

20 to the date on which the covered loan is 

21 fully disbursed and subject to availability 

22 of funds’’ after ‘‘status’’; 

23 (ii) by amending subparagraphs (A) 

24 and (B) to read as follows: 

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1 ‘‘(A) with respect to a covered loan ap2 proved by the Administration before the date of 

3 enactment of this Act and not on deferment— 

4 ‘‘(i) except as provided in clauses (ii) 

5 and (iii), for the 6-month period beginning 

6 with the next payment due on the covered 

7 loan after the covered loan is fully dis8 bursed; 

9 ‘‘(ii) for the 11-month period begin10 ning with the next payment due on the 

11 covered loan after the covered loan is fully 

12 disbursed, with respect to a covered loan 

13 that— 

14 ‘‘(I) is described in subsection 

15 (a)(1)(B) or is a loan guaranteed by 

16 the Administration under section 7(a) 

17 of the Small Business Act (15 U.S.C. 

18 636(a)) other than a loan described in 

19 clause (i) or (ii) of subsection 

20 (a)(1)(A); and 

21 ‘‘(II) is made to a borrower oper22 ating primarily in an industry other 

23 than an industry that is assigned a 

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1 tion System code described in item 

2 (aa) or (bb) of clause (iii)(II); and 

3 ‘‘(iii) for the 18-month period begin4 ning with the next payment due on the 

5 covered loan after the covered loan is fully 

6 disbursed, with respect to— 

7 ‘‘(I) a covered loan described in 

8 paragraph (1)(A)(i) or paragraph (2) 

9 of subsection (a); or 

10 ‘‘(II) any covered loan made to a 

11 borrower operating primarily in an in12 dustry that is assigned— 

13 ‘‘(aa) a North American In14 dustry Classification System code 

15 beginning with 61, 71, 72, or 

16 487; or 

17 ‘‘(bb) the North American 

18 Industry Classification System 

19 Code 485510, 511110, 515112, 

20 or 515120; 

21 ‘‘(B) with respect to a covered loan ap22 proved by the Administration before the date of 

23 enactment of this Act and on deferment— 

24 ‘‘(i) except as provided in clauses (ii) 

25 and (iii), for the 6-month period beginning 

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1 with the next payment due on the covered 

2 loan after the deferment period and after 

3 the covered loan is fully disbursed; 

4 ‘‘(ii) for the 11-month period begin5 ning with the next payment due on the 

6 covered loan after the deferment period 

7 and after the covered loan is fully dis8 bursed, with respect to a covered loan de9 scribed in subclause (I) or (II) of subpara10 graph (A)(ii); and 

11 ‘‘(iii) for the 18-month period begin12 ning with the next payment due on the 

13 covered loan after the deferment period 

14 and after the covered loan is fully dis15 bursed, with respect to a covered loan de16 scribed in subclause (I) or (II) of subpara17 graph (A)(iii); and’’; and 

18 (iii) in subparagraph (C)— 

19 (I) by striking ‘‘covered loan 

20 made’’ and inserting ‘‘covered loan 

21 approved by the Administration’’; 

22 (II) by striking ‘‘6 months after’’ 

23 and inserting ‘‘18 months after’’; 

24 (III) by inserting ‘‘(or, for a cov25 ered loan made by an intermediary to 

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1 a small business concern using loans 

2 or grants received under section 7(m) 

3 of the Small Business Act (15 U.S.C. 

4 636(m)) or guaranteed by the Admin5 istration under the Community Ad6 vantage Pilot Program of the Admin7 istration, for the 12-month period)’’ 

8 after ‘‘6-month period’’; and 

9 (IV) by inserting ‘‘after the cov10 ered loan is fully disbursed’’ after 

11 ‘‘due on the covered loan’’; and 

12 (B) by adding at the end the following: 

13 ‘‘(4) ADDITIONAL PROVISIONS FOR NEW

14 LOANS.—With respect to a loan described in para15 graph (1)(C)— 

16 ‘‘(A) the Administrator may further extend 

17 the 18-month period described in paragraph 

18 (1)(C) if there are sufficient funds to continue 

19 those payments; and 

20 ‘‘(B) during the underwriting process, a 

21 lender of such a loan may consider the pay22 ments under this section as part of a com23 prehensive review to determine the ability to 

24 repay over the entire period of maturity of the 

25 loan. 

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1 ‘‘(5) ELIGIBILITY.—Eligibility for a covered 

2 loan to receive such payments of principal, interest, 

3 and any associated fees under this subsection shall 

4 be based on the date on which the covered loan is 

5 approved by the Administration. 

6 ‘‘(6) AUTHORITY TO REVISE EXTENSIONS.— 

7 ‘‘(A) IN GENERAL.—As part of preparing 

8 the reports under subsection (i)(5) that are re9 quired to be submitted not later than January 

10 15, 2021, and not later than June 15, 2021, 

11 the Administrator conducts an evaluation of 

12 whether amounts made available to make pay13 ments under this subsection are sufficient to 

14 make the payments for the period described in 

15 paragraph (1). 

16 ‘‘(B) PLAN.—If the Administrator deter17 mines under subparagraph (A) that the 

18 amounts made available to make payments 

19 under this subsection are insufficient, the Ad20 ministrator shall— 

21 ‘‘(i) develop a plan to proportionally 

22 reduce the number of months provided for 

23 each period described in paragraph (1), 

24 while ensuring all amounts made available 

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1 to make payments under this subsection 

2 are fully expended; and 

3 ‘‘(ii) before taking action under the 

4 plan developed under clause (i), include in 

5 the applicable report under subsection 

6 (i)(5) the plan and the data that informs 

7 the plan. 

8 ‘‘(7) RULE OF CONSTRUCTION.—Nothing in 

9 this subsection shall preclude a borrower from re10 ceiving full payments of principal, interest, and any 

11 associated fees as authorized by subsection.’’; 

12 (2) by redesignating subsection (f) as sub13 section (k); and 

14 (3) by inserting after subsection (e) the fol15 lowing: 

16 ‘‘(f) ELIGIBILITY FOR NEW LOANS.—For each indi17 vidual lending program under this section, the Adminis18 trator may establish a minimum loan maturity period, tak19 ing into consideration the normal underwriting require20 ments for each such program, with the goal of preventing 

21 abuse under the program. 

22 ‘‘(g) LIMITATION ON ASSISTANCE.—A borrower may 

23 not receive assistance under subsection (c) for more than 

24 1 covered loan of the borrower described in paragraph 

25 (1)(C) of that subsection. 

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1 ‘‘(h) TAXABILITY.—For purposes of the Internal 

2 Revenue Code of 1986— 

3 ‘‘(1) any payment made under subsection (c) 

4 shall be treated as paid by the person on whose be5 half such payment is made, 

6 ‘‘(2) no amount shall be included in the gross 

7 income of the borrower by reason of a payment 

8 made under subsection (c), and 

9 ‘‘(3) no deduction shall be denied or reduced, 

10 no tax attribute shall be reduced, and no basis in11 crease shall be denied, by reason of the exclusion 

12 from gross income provided by paragraph (2). 

13 ‘‘(i) REPORTING AND OUTREACH.— 

14 ‘‘(1) UPDATED INFORMATION.— 

15 ‘‘(A) IN GENERAL.—Not later than 7 days 

16 after the date of enactment of the Heroes Small 

17 Business Lifeline Act, the Administrator shall 

18 make publicly available information regarding 

19 the modifications to the assistance provided 

20 under this section under the amendments made 

21 by such Act. 

22 ‘‘(B) GUIDANCE.—Not later than 14 days 

23 after the date of enactment of the Heroes Small 

24 Business Lifeline Act the Administrator shall 

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1 tions to the assistance provided under this sec2 tion under the amendments made by such Act. 

3 ‘‘(2) PUBLICATION OF LIST.—Not later than 14 

4 days after the date of enactment of the Heroes 

5 Small Business Lifeline Act, the Administrator shall 

6 transmit to each lender of a covered loan a list of 

7 each borrower of a covered loan that includes the 

8 North American Industry Classification System code 

9 assigned to the borrower, based on the records of 

10 the Administration, to assist the lenders in identi11 fying which borrowers qualify for an extension of 

12 payments under subsection (c). 

13 ‘‘(3) EDUCATION AND OUTREACH.—The Ad14 ministrator shall provide education, outreach, and 

15 communication to lenders, borrowers, district offices, 

16 and resource partners of the Administration in order 

17 to ensure full and proper compliance with this sec18 tion, encourage broad participation with respect to 

19 covered loans that have not yet been approved by the 

20 Administrator, and help lenders transition borrowers 

21 from subsidy payments under this section directly to 

22 a deferral when suitable for the borrower. 

23 ‘‘(4) NOTIFICATION.—Not later than 30 days 

24 after the date of enactment of the Heroes Small 

25 Business Lifeline Act, the Administrator shall mail 

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1 a letter to each borrower of a covered loan that in2 cludes— 

3 ‘‘(A) an overview of assistance provided 

4 under this section; 

5 ‘‘(B) the rights of the borrower to receive 

6 that assistance; 

7 ‘‘(C) how to seek recourse with the Admin8 istrator or the lender of the covered loan if the 

9 borrower has not received that assistance; and 

10 ‘‘(D) the rights of the borrower to request 

11 a loan deferral from a lender, and guidance on 

12 how to do successfully transition directly to a 

13 loan deferral once subsidy payments under this 

14 section are concluded. 

15 ‘‘(5) MONTHLY REPORTING.—Not later than 

16 the 15th of each month beginning after the date of 

17 enactment of the Heroes Small Business Lifeline 

18 Act, the Administrator shall submit to Congress a 

19 report on assistance provided under this section, 

20 which shall include— 

21 ‘‘(A) monthly and cumulative data on pay22 ments made under this section as of the date of 

23 the report, including a breakdown by— 

24 ‘‘(i) the number of participating bor25 rowers; 

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1 ‘‘(ii) the volume of payments made for 

2 each type of covered loan; and 

3 ‘‘(iii) the volume of payments made 

4 for covered loans made before the date of 

5 enactment of this Act and loans made 

6 after such date of enactment; 

7 ‘‘(B) the names of any lenders of covered 

8 loans that have not submitted information on 

9 the covered loans to the Administrator during 

10 the preceding month; and 

11 ‘‘(C) an update on the education and out12 reach activities of the Administration carried 

13 out under paragraph (3).’’. 

14 (b) EFFECTIVE DATE.—The amendments made by 

15 this section shall apply as if included in the enactment 

16 of section 1112 of the CARES Act (15 U.S.C. 9011). 

17 SEC. 603. MODIFICATIONS TO 7(a) LOAN PROGRAMS. 

18 (a) 7(a) LOAN GUARANTEES.— 

19 (1) IN GENERAL.—Section 7(a)(2)(A) of the 

20 Small Business Act (15 U.S.C. 636(a)(2)(A)) is 

21 amended by striking ‘‘), such participation by the 

22 Administration shall be equal to’’ and all that fol23 lows through the period at the end and inserting ‘‘or 

24 the Community Advantage Pilot Program of the Ad25 ministration), such participation by the AdministraVerDate Sep 11 2014 20:21 Oct 31, 2020 Jkt 019200 PO 00000 Frm 00111 Fmt 6652 Sfmt 6201 E:\BILLS\S4818.IS S4818
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1 tion shall be equal to 90 percent of the balance of 

2 the financing outstanding at the time of disburse3 ment of the loan.’’. 

4 (2) PROSPECTIVE REPEAL.—Effective October 

5 1, 2021, section 7(a)(2)(A) of the Small Business 

6 Act (15 U.S.C. 636(a)(2)(A)), as amended by para7 graph (1), is amended to read as follows: 

8 ‘‘(A) IN GENERAL.—Except as provided in 

9 subparagraphs (B), (D), (E), and (F), in an 

10 agreement to participate in a loan on a deferred 

11 basis under this subsection (including a loan 

12 made under the Preferred Lenders Program), 

13 such participation by the Administration shall 

14 be equal to— 

15 ‘‘(i) 75 percent of the balance of the 

16 financing outstanding at the time of dis17 bursement of the loan, if such balance ex18 ceeds $150,000; or 

19 ‘‘(ii) 85 percent of the balance of the 

20 financing outstanding at the time of dis21 bursement of the loan, if such balance is 

22 less than or equal to $150,000.’’. 

23 (b) EXPRESS LOANS.— 

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1 (1) LOAN AMOUNT.—Section 1102(c)(2) of the 

2 CARES Act (Public Law 116–36; 15 U.S.C. 636 

3 note) is amended to read as follows: 

4 ‘‘(2) PROSPECTIVE REPEAL.—Section 

5 7(a)(31)(D) of the Small Business Act (15 U.S.C. 

6 636(a)(31)(D)) is amended— 

7 ‘‘(A) by striking ‘$1,000,000’ and inserting 

8 ‘$500,000’, effective during the period begin9 ning on January 1, 2021, and ending on Sep10 tember 30, 2021; and 

11 ‘‘(B) by striking ‘$500,000’ and inserting 

12 ‘$350,000’, effective October 1, 2021.’’. 

13 (2) GUARANTEE RATES.— 

14 (A) TEMPORARY MODIFICATION.—Section 

15 7(a)(31)(A)(iv) of the Small Business Act (15 

16 U.S.C. 636(a)(31)(A)(iv)) is amended by strik17 ing ‘‘with a guaranty rate of not more than 50 

18 percent.’’ and inserting the following: ‘‘with a 

19 guarantee rate— 

20 ‘‘(I) for a loan in an amount less 

21 than or equal to $350,000, of not 

22 more than 75 percent; and 

23 ‘‘(II) for a loan in an amount 

24 greater than $350,000, of not more 

25 than 50 percent.’’. 

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1 (B) PROSPECTIVE REPEAL.—Effective Oc2 tober 1, 2021, section 7(a)(31)(A)(iv) of the 

3 Small Business Act (15 U.S.C. 636(a)(31)(iv)), 

4 as amended by subparagraph (A), is amended 

5 by striking ‘‘guarantee rate’’ and all that fol6 lows through the period at the end and insert7 ing ‘‘guarantee rate of not more than 50 per8 cent.’’. 

9 SEC. 604. FLEXIBILITY IN DEFERRAL OF PAYMENTS OF 7(a) 

10 LOANS. 

11 Section 7(a)(7) of the Small Business Act (15 U.S.C. 

12 636(a)(7)) is amended— 

13 (1) by striking ‘‘The Administration’’ and in14 serting ‘‘(A) IN GENERAL.—The Administrator’’; 

15 (2) by inserting ‘‘and interest’’ after ‘‘prin16 cipal’’; and 

17 (3) by adding at the end the following new sub18 paragraphs: 

19 ‘‘(B) DEFERRAL REQUIREMENTS.—With re20 spect to a deferral provided under this paragraph, 

21 the Administrator may allow lenders under this sub22 section— 

23 ‘‘(i) to provide full payment deferment re24 lief (including payment of principal and inter25 est) for a period of not more than 1 year; and 

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1 ‘‘(ii) to provide an additional deferment pe2 riod if the borrower provides documentation 

3 justifying such additional deferment. 

4 ‘‘(C) SECONDARY MARKET.—If an investor de5 clines to approve a deferral or additional deferment 

6 requested by a lender under subparagraph (B), the 

7 Administrator shall exercise the authority to pur8 chase the loan so that the borrower may receive full 

9 payment deferment relief (including payment of 

10 principal and interest) or an additional deferment as 

11 described in subparagraph (B).’’. 

12 SEC. 605. RECOVERY ASSISTANCE UNDER THE MICROLOAN 

13 PROGRAM. 

14 (a) LOANS TO INTERMEDIARIES.— 

15 (1) IN GENERAL.—Section 7(m) of the Small 

16 Business Act (15 U.S.C. 636(m)) is amended— 

17 (A) in paragraph (3)(C)— 

18 (i) by striking ‘‘and $6,000,000’’ and 

19 inserting ‘‘$10,000,000 (in the aggre20 gate)’’; and 

21 (ii) by inserting before the period at 

22 the end the following: ‘‘, and $4,500,000 in 

23 any of those remaining years’’; 

24 (B) in paragraph (4)— 

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1 (i) in subparagraph (A), by striking 

2 ‘‘subparagraph (C)’’ each place that term 

3 appears and inserting ‘‘subparagraphs (C) 

4 and (G)’’; 

5 (ii) in subparagraph (C), by amending 

6 clause (i) to read as follows: 

7 ‘‘(i) IN GENERAL.—In addition to 

8 grants made under subparagraph (A) or 

9 (G), each intermediary shall be eligible to 

10 receive a grant equal to 5 percent of the 

11 total outstanding balance of loans made to 

12 the intermediary under this subsection if— 

13 ‘‘(I) the intermediary provides 

14 not less than 25 percent of its loans 

15 to small business concerns located in 

16 or owned by 1 or more residents of an 

17 economically distressed area; or 

18 ‘‘(II) the intermediary has a 

19 portfolio of loans made under this 

20 subsection— 

21 ‘‘(aa) that averages not 

22 more than $10,000 during the 

23 period of the intermediary’s par24 ticipation in the program; or 

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1 ‘‘(bb) of which not less than 

2 25 percent is serving rural areas 

3 during the period of the 

4 intermediary’s participation in 

5 the program.’’; and 

6 (iii) by adding at the end the fol7 lowing: 

8 ‘‘(G) GRANT AMOUNTS BASED ON APPRO9 PRIATIONS.—In any fiscal year in which the 

10 amount appropriated to make grants under 

11 subparagraph (A) is sufficient to provide to 

12 each intermediary that receives a loan under 

13 paragraph (1)(B)(i) a grant of not less than 25 

14 percent of the total outstanding balance of 

15 loans made to the intermediary under this sub16 section, the Administration shall make a grant 

17 under subparagraph (A) to each intermediary 

18 of not less than 25 percent and not more than 

19 30 percent of that total outstanding balance for 

20 the intermediary.’’; 

21 (C) by striking paragraph (7) and insert22 ing the following: 

23 ‘‘(7) PROGRAM FUNDING FOR MICROLOANS.— 

24 Under the program authorized by this subsection, 

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1 the Administration may fund, on a competitive basis, 

2 not more than 300 intermediaries.’’; and 

3 (D) in paragraph (11)— 

4 (i) in subparagraph (C)(ii), by strik5 ing all after the semicolon and inserting 

6 ‘‘and’’; and 

7 (ii) by striking all after subparagraph 

8 (C), and inserting the following: 

9 ‘‘(D) the term ‘economically distressed 

10 area’, as used in paragraph (4), means a county 

11 or equivalent division of local government of a 

12 State in which the small business concern is lo13 cated, in which, according to the most recent 

14 data available from the Bureau of the Census, 

15 Department of Commerce, not less than 40 per16 cent of residents have an annual income that is 

17 at or below the poverty level.’’. 

18 (2) PROSPECTIVE AMENDMENT.—Effective on 

19 October 1, 2021, section 7(m)(3)(C) of the Small 

20 Business Act (15 U.S.C. 636(m)(3)(C)), as amended 

21 by paragraph (1)(A), is amended— 

22 (A) by striking ‘‘$10,000,000’’ and by in23 serting ‘‘$7,000,000’’; and 

24 (B) by striking ‘‘$4,500,000’’ and insert25 ing ‘‘$3,000,000’’. 

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1 (b) TEMPORARY WAIVER OF TECHNICAL ASSIST2 ANCE GRANTS MATCHING REQUIREMENTS AND FLEXI3 BILITY ON PRE- AND POST-LOAN ASSISTANCE.—During 

4 the period beginning on the date of enactment of this Act 

5 and ending on September 30, 2021, the Administration 

6 shall waive— 

7 (1) the requirement to contribute non-Federal 

8 funds under section 7(m)(4)(B) of the Small Busi9 ness Act (15 U.S.C. 636(m)(4)(B)); and 

10 (2) the limitation on amounts allowed to be ex11 pended to provide information and technical assist12 ance under clause (i) of section 7(m)(4)(E) of the 

13 Small Business Act (15 U.S.C. 636(m)(4)(E)) and 

14 enter into third-party contracts to provide technical 

15 assistance under clause (ii) of such section 

16 7(m)(4)(E). 

17 (c) TEMPORARY DURATION OF LOANS TO BOR18 ROWERS.— 

19 (1) IN GENERAL.—During the period beginning 

20 on the date of enactment of this Act and ending on 

21 September 30, 2021, the duration of a loan made by 

22 an eligible intermediary under section 7(m) of the 

23 Small Business Act (15 U.S.C. 636(m))— 

24 (A) to an existing borrower may be ex25 tended to not more than 8 years; and 

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1 (B) to a new borrower may be not more 

2 than 8 years. 

3 (2) REVERSION.—On and after October 1, 

4 2021, the duration of a loan made by an eligible 

5 intermediary to a borrower under section 7(m) of 

6 the Small Business Act (15 U.S.C. 636(m)) shall be 

7 7 years or such other amount established by the Ad8 ministrator. 

9 (d) FUNDING.—Section 20 of the Small Business Act 

10 (15 U.S.C. 631 note) is amended by adding at the end 

11 the following: 

12 ‘‘(h) MICROLOAN PROGRAM.—For each of fiscal 

13 years 2021 through 2025, the Administration is author14 ized to make— 

15 ‘‘(1) $80,000,000 in technical assistance grants, 

16 as provided in section 7(m); and 

17 ‘‘(2) $110,000,000 in direct loans, as provided 

18 in section 7(m).’’. 

19 (e) AUTHORIZATION OF APPROPRIATIONS.—In addi20 tion to amounts provided under the Consolidated Appro21 priations Act, 2020 (Public Law 116–93) for the program 

22 established under section 7(m) of the Small Business Act 

23 (15 U.S.C. 636(m)) and amounts provided for fiscal year 

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1 priated for fiscal year 2021, to remain available until ex2 pended— 

3 (1) $50,000,000 to provide technical assistance 

4 grants under such section 7(m); and 

5 (2) $7,000,000 to provide direct loans under 

6 such section 7(m). 

7 SEC. 606. MAXIMUM LOAN AMOUNT FOR 504 LOANS. 

8 (a) PERMANENT INCREASE FOR SMALL MANUFAC9 TURERS.—Section 502(2)(A)(iii) of the Small Business 

10 Investment Act of 1958 (15 U.S.C. 696(2)(A)(iii)) is 

11 amended by striking ‘‘$5,500,000’’ and inserting 

12 ‘‘$6,500,000’’. 

13 (b) LOW-INTEREST REFINANCING UNDER THE

14 LOCAL DEVELOPMENT BUSINESS LOAN PROGRAM.— 

15 (1) REPEAL.—Section 521(a) of title V of divi16 sion E of the Consolidated Appropriations Act, 2016 

17 (Public Law 114–113; 129 Stat. 2463; 15 U.S.C. 

18 696 note) is repealed. 

19 (2) REFINANCING.—Section 502(7) of the 

20 Small Business Investment Act of 1958 (15 U.S.C. 

21 696) is amended— 

22 (A) in subparagraph (B), in the matter 

23 preceding clause (i), by striking ‘‘50’’ and in24 serting ‘‘100’’; and 

25 (B) by adding at the end the following: 

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1 ‘‘(C) REFINANCING NOT INVOLVING EX2 PANSIONS.— 

3 ‘‘(i) DEFINITIONS.—In this subpara4 graph— 

5 ‘‘(I) the term ‘borrower’ means a 

6 small business concern that submits 

7 an application to a development com8 pany for financing under this sub9 paragraph; 

10 ‘‘(II) the term ‘eligible fixed 

11 asset’ means tangible property relat12 ing to which the Administrator may 

13 provide financing under this section; 

14 and 

15 ‘‘(III) the term ‘qualified debt’ 

16 means indebtedness that— 

17 ‘‘(aa) was incurred not less 

18 than 6 months before the date of 

19 the application for assistance 

20 under this subparagraph; 

21 ‘‘(bb) is a commercial loan; 

22 ‘‘(cc) the proceeds of which 

23 were used to acquire an eligible 

24 fixed asset; 

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1 ‘‘(dd) was incurred for the 

2 benefit of the small business con3 cern; and 

4 ‘‘(ee) is collateralized by eli5 gible fixed assets. 

6 ‘‘(ii) AUTHORITY.—A project that 

7 does not involve the expansion of a small 

8 business concern may include the refi9 nancing of qualified debt if— 

10 ‘‘(I) the amount of the financing 

11 is not more than 90 percent of the 

12 value of the collateral for the financ13 ing, except that, if the appraised value 

14 of the eligible fixed assets serving as 

15 collateral for the financing is less than 

16 the amount equal to 125 percent of 

17 the amount of the financing, the bor18 rower may provide additional cash or 

19 other collateral to eliminate any defi20 ciency; 

21 ‘‘(II) the borrower has been in 

22 operation for all of the 2-year period 

23 ending on the date the loan applica24 tion is submitted; and 

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1 ‘‘(III) for a financing for which 

2 the Administrator determines there 

3 will be an additional cost attributable 

4 to the refinancing of the qualified 

5 debt, the borrower agrees to pay a fee 

6 in an amount equal to the anticipated 

7 additional cost. 

8 ‘‘(iii) FINANCING FOR BUSINESS EX9 PENSES.— 

10 ‘‘(I) FINANCING FOR BUSINESS

11 EXPENSES.—The Administrator may 

12 provide financing to a borrower that 

13 receives financing that includes a refi14 nancing of qualified debt under clause 

15 (ii), in addition to the refinancing 

16 under clause (ii), to be used solely for 

17 the payment of business expenses. 

18 ‘‘(II) APPLICATION FOR FINANC19 ING.—An application for financing 

20 under subclause (I) shall include— 

21 ‘‘(aa) a specific description 

22 of the expenses for which the ad23 ditional financing is requested; 

24 and 

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1 ‘‘(bb) an itemization of the 

2 amount of each expense. 

3 ‘‘(III) CONDITION ON ADDI4 TIONAL FINANCING.—A borrower may 

5 not use any part of the financing 

6 under this clause for non-business 

7 purposes. 

8 ‘‘(iv) LOANS BASED ON JOBS.— 

9 ‘‘(I) JOB CREATION AND RETEN10 TION GOALS.— 

11 ‘‘(aa) IN GENERAL.—The 

12 Administrator may provide fi13 nancing under this subparagraph 

14 for a borrower that meets the job 

15 creation goals under subsection 

16 (d) or (e) of section 501. 

17 ‘‘(bb) ALTERNATE JOB RE18 TENTION GOAL.—The Adminis19 trator may provide financing 

20 under this subparagraph to a 

21 borrower that does not meet the 

22 goals described in item (aa) in an 

23 amount that is not more than the 

24 product obtained by multiplying 

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•S 4818 IS

1 the number of employees of the 

2 borrower by $75,000. 

3 ‘‘(II) NUMBER OF EMPLOYEES.— 

4 For purposes of subclause (I), the 

5 number of employees of a borrower is 

6 equal to the sum of— 

7 ‘‘(aa) the number of full8 time employees of the borrower 

9 on the date on which the bor10 rower applies for a loan under 

11 this subparagraph; and 

12 ‘‘(bb) the product obtained 

13 by multiplying— 

14 ‘‘(AA) the number of 

15 part-time employees of the 

16 borrower on the date on 

17 which the borrower applies 

18 for a loan under this sub19 paragraph, by 

20 ‘‘(BB) the quotient ob21 tained by dividing the aver22 age number of hours each 

23 part time employee of the 

24 borrower works each week 

25 by 40. 

127 

•S 4818 IS

1 ‘‘(v) TOTAL AMOUNT OF LOANS.—The 

2 Administrator may provide not more than 

3 a total of $7,500,000,000 of financing 

4 under this subparagraph for each fiscal 

5 year.’’. 

6 (c) EXPRESS LOAN AUTHORITY FOR ACCREDITED

7 LENDERS.— 

8 (1) IN GENERAL.—Section 507 of the Small 

9 Business Investment Act of 1958 (15 U.S.C. 697d) 

10 is amended by striking subsection (e) and inserting 

11 the following: 

12 ‘‘(e) EXPRESS LOAN AUTHORITY.—A local develop13 ment company designated as an accredited lender in ac14 cordance with subsection (b)— 

15 ‘‘(1) may— 

16 ‘‘(A) approve, authorize, close, and service 

17 covered loans that are funded with proceeds of 

18 a debenture issued by the company; and 

19 ‘‘(B) authorize the guarantee of a deben20 ture described in subparagraph (A); and 

21 ‘‘(2) with respect to a covered loan, shall be 

22 subject to final approval as to eligibility of any guar23 antee by the Administration pursuant to section 

24 503(a), but such final approval shall not include re25 view of decisions by the lender involving creditVerDate Sep 11 2014 20:21 Oct 31, 2020 Jkt 019200 PO 00000 Frm 00127 Fmt 6652 Sfmt 6201 E:\BILLS\S4818.IS S4818
128 

•S 4818 IS

1 worthiness, loan closing, or compliance with legal re2 quirements imposed by law or regulation. 

3 ‘‘(f) DEFINITIONS.—In this section— 

4 ‘‘(1) the term ‘accredited lender certified com5 pany’ means a certified development company that 

6 meets the requirements under section 507(b), includ7 ing a certified development company that the Ad8 ministration has designated as an accredited lender 

9 under such section 507(b); 

10 ‘‘(2) the term ‘covered loan’— 

11 ‘‘(A) means a loan made under subsection 

12 (a) in an amount that is not more than 

13 $500,000; and 

14 ‘‘(B) does not include a loan made to a 

15 borrower that is a franchise that, or is in an in16 dustry that, has a high rate of default, as annu17 ally determined by the Administrator; and 

18 ‘‘(3) the term ‘qualified State or local develop19 ment company’ has the meaning given the term in 

20 section 503(e).’’. 

21 (2) PROSPECTIVE REPEAL.—Effective on Sep22 tember 30, 2023, section 507 of the Small Business 

23 Investment Act of 1958 (15 U.S.C. 697d), as 

24 amended by paragraph (1), is amended by striking 

25 subsections (e) and (f) and inserting the following: 

129 

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1 ‘‘(e) DEFINITION.—In this section, the term ‘quali2 fied State or local development company’ has the meaning 

3 given the term in section 503(e).’’. 

4 (d) REFINANCING SENIOR PROJECT DEBT.—During 

5 the 1-year period beginning on the date of enactment of 

6 this Act, a development company described in title V of 

7 the Small Business Investment Act of 1958 (15 U.S.C. 

8 695 et seq.) is authorized to allow the refinancing of a 

9 senior loan on an existing project in an amount that, when 

10 combined with the outstanding balance on the develop11 ment company loan, is not more than 90 percent of the 

12 total loan to value. Proceeds of such refinancing can be 

13 used to support business operating expenses. 

14 SEC. 607. TEMPORARY FEE REDUCTIONS. 

15 (a) ADMINISTRATIVE FEE WAIVER.— 

16 (1) IN GENERAL.—During the period beginning 

17 on the date of enactment of this Act and ending on 

18 September 30, 2021, and to the extent that the cost 

19 of such elimination or reduction of fees is offset by 

20 appropriations, with respect to each loan guaranteed 

21 under section 7(a) of the Small Business Act (15 

22 U.S.C. 636(a)) (including a recipient of assistance 

23 under the Community Advantage Pilot Program of 

24 the Administration) for which an application is apVerDate Sep 11 2014 20:21 Oct 31, 2020 Jkt 019200 PO 00000 Frm 00129 Fmt 6652 Sfmt 6201 E:\BILLS\S4818.IS S4818
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•S 4818 IS

1 proved or pending approval on or after the date of 

2 enactment of this Act, the Administrator shall— 

3 (A) in lieu of the fee otherwise applicable 

4 under section 7(a)(23)(A) of the Small Busi5 ness Act (15 U.S.C. 636(a)(23)(A)), collect no 

6 fee or reduce fees to the maximum extent pos7 sible; and 

8 (B) in lieu of the fee otherwise applicable 

9 under section 7(a)(18)(A) of the Small Busi10 ness Act (15 U.S.C. 636(a)(18)(A)), collect no 

11 fee or reduce fees to the maximum extent pos12 sible. 

13 (2) APPLICATION OF FEE ELIMINATIONS OR RE14 DUCTIONS.—To the extent that amounts are made 

15 available to the Administrator for the purpose of fee 

16 eliminations or reductions under paragraph (1), the 

17 Administrator shall— 

18 (A) first use any amounts provided to 

19 eliminate or reduce fees paid by small business 

20 borrowers under clauses (i) through (iii) of sec21 tion 7(a)(18)(A) of the Small Business Act (15 

22 U.S.C. 636(a)(18)(A)), to the maximum extent 

23 possible; and 

24 (B) then use any amounts provided to 

25 eliminate or reduce fees under 7(a)(23)(A) of 

131 

•S 4818 IS

1 the Small Business Act (15 U.S.C. 

2 636(a)(23)(A)). 

3 (b) TEMPORARY FEE ELIMINATION FOR THE 504 

4 LOAN PROGRAM.— 

5 (1) IN GENERAL.—During the period beginning 

6 on the date of enactment of this Act and ending on 

7 September 30, 2021, and to the extent the cost of 

8 such elimination in fees is offset by appropriations, 

9 with respect to each project or loan guaranteed by 

10 the Administrator pursuant to title V of the Small 

11 Business Investment Act of 1958 (15 U.S.C. 695 et 

12 seq.) for which an application is approved or pending 

13 approval on or after the date of enactment of this 

14 Act— 

15 (A) the Administrator shall, in lieu of the 

16 fee otherwise applicable under section 503(d)(2) 

17 of the Small Business Investment Act of 1958 

18 (15 U.S.C. 697(d)(2)), collect no fee; and 

19 (B) a development company shall, in lieu 

20 of the processing fee under section 

21 120.971(a)(1) of title 13, Code of Federal Reg22 ulations (relating to fees paid by borrowers), or 

23 any successor regulation, collect no fee. 

24 (2) REIMBURSEMENT FOR WAIVED FEES.— 

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1 (A) IN GENERAL.—To the extent that the 

2 cost of such payments is offset by appropria3 tions, the Administrator shall reimburse each 

4 development company that does not collect a 

5 processing fee pursuant to paragraph (1)(B). 

6 (B) AMOUNT.—The payment to a develop7 ment company under subparagraph (A) shall be 

8 in an amount equal to 1.5 percent of the net 

9 debenture proceeds for which the development 

10 company does not collect a processing fee pur11 suant to paragraph (1)(B). 

12 SEC. 608. EXTENSION OF PARTICIPATION IN 8(a) PROGRAM. 

13 (a) IN GENERAL.—The Administrator shall ensure 

14 that a small business concern (as defined in section 3 of 

15 the Small Business Act (15 U.S.C. 632) participating in 

16 the program established under section 8(a) of the Small 

17 Business Act (15 U.S.C. 637(a)) on or before September 

18 9, 2020, may elect to extend such participation by a period 

19 of 1 year, regardless of whether the small business concern 

20 previously elected to suspend participation in the program 

21 pursuant to guidance of the Administrator. 

22 (b) EMERGENCY RULEMAKING AUTHORITY.—Not 

23 later than 15 days after the date of enactment of this sec24 tion, the Administrator shall issue regulations to carry out 

133 

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1 this section without regard to the notice requirements 

2 under section 553(b) of title 5, United States Code. 

3 SEC. 609. REPORT ON MINORITY, WOMEN, AND RURAL 

4 LENDING. 

5 Not later than 90 days after the date of the enact6 ment of this Act, the Administrator shall submit to the 

7 Committee on Small Business and Entrepreneurship of 

8 the Senate and the Committee on Small Business of the 

9 House of Representatives a report to determine and quan10 tify the extent to which the programs established under 

11 subsections (a) and (m) of section 7 of the Small Business 

12 Act (15 U.S.C. 636), titles III and V of the Small Busi13 ness Investment Act of 1958 (15 U.S.C. 681 et seq., 695 

14 et seq.), and the Community Advantage Pilot Program of 

15 the Small Business Administration have assisted in the 

16 establishment, development, and performance of small 

17 business concerns owned and controlled by socially and 

18 economically disadvantaged individuals (as defined in sec19 tion 8(d)(3)(C) of the Small Business Act (15 U.S.C. 

20 637(d)(3)(C))), small business concerns owned and con21 trolled by women (as defined in section 3 of such Act (15 

22 U.S.C. 632)), and rural small businesses, including rec23 ommendations to improve such access to capital programs. 

134 

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1 SEC. 610. COMPREHENSIVE PROGRAM GUIDANCE. 

2 Not later than 7 days after the date of enactment 

3 of this Act, the Administrator shall— 

4 (1) establish a process for accepting applica5 tions for loan forgiveness under section 1106 of the 

6 CARES Act (15 U.S.C. 9005); 

7 (2) issue a comprehensive compilation of rules 

8 and guidance issued related to loans made under 

9 section 7(a)(36) of the Small Business Act (15 

10 U.S.C. 636(a)(36)); and 

11 (3) to the maximum extent practicable, before 

12 accepting applications for supplemental covered 

13 loans under clause (ii) of section 7(a)(36)(B) of the 

14 Small Business Act (15 U.S.C. 636(a)(36)(B)), as 

15 added by section 202 of this Act, the Administrator 

16 shall issue comprehensive rules and guidance to en17 sure that borrowers and lenders are aware of eligi18 bility and terms of receiving a supplemental covered 

19 loan and the process for forgiveness of a supple20 mental covered loan. 

21 SEC. 611. REPORTS ON PAYCHECK PROTECTION PROGRAM. 

22 (a) REPORT TO CONGRESS.—Not later than 30 days 

23 after the date of enactment of this Act, and every 30 days 

24 thereafter until the end of the covered period described 

25 in section 7(a)(36)(A) of the Small Business Act (15 

26 U.S.C. 636(a)(36)(A)), the Secretary of the Treasury and 

135 

•S 4818 IS

1 the Administrator shall submit to the Committee on Small 

2 Business and Entrepreneurship of the Senate and the 

3 Committee on Small Business of the House of Representa4 tives a report, in a searchable digital format, that includes, 

5 with respect to each loan made under such section 

6 7(a)(36)— 

7 (1) the business name, address, and ZIP Code 

8 of each recipient of the loan; 

9 (2) the North American Industry Classification 

10 System code and the type of entity of each such re11 cipient; 

12 (3) demographic data of each such recipient; 

13 (4) the number of jobs supported by the loan; 

14 (5) loan forgiveness data; and 

15 (6) the amount and origination date of the loan. 

16 (b) PUBLICLY AVAILABLE REPORT.— 

17 (1) LARGER COVERED LOANS.—Not later than 

18 30 days after the date of enactment of this Act, and 

19 every 30 days thereafter until the end of the covered 

20 period described in section 7(a)(36)(A) of the Small 

21 Business Act (15 U.S.C. 636(a)(36)(A)), for each 

22 loan made under such section 7(a)(36) in an amount 

23 greater than or equal to $150,000, the Secretary of 

24 the Treasury and the Administrator shall make pub25 licly available the following: 

136 

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1 (A) The information described in para2 graphs (1) through (4) of subsection (a). 

3 (B) The loan size range, of those listed 

4 below, to which the loan belongs: 

5 (i) Not less than $150,000 and less 

6 than $350,000. 

7 (ii) Not less than $350,000 and less 

8 than $1,000,000. 

9 (iii) Not less than $1,000,000 and 

10 less than $2,000,000. 

11 (iv) Not less than $2,000,000 and less 

12 than $5,000,000. 

13 (v) Not less than $5,000,000 and less 

14 than $10,000,000. 

15 (2) SMALLER COVERED LOANS.—Not later than 

16 30 days after the date of enactment of this Act, and 

17 every 30 days thereafter until the end of the covered 

18 period described in section 7(a)(36) of the Small 

19 Business Act (15 U.S.C. 636(a)(36)), for loans 

20 made under such section 7(a)(36) in an amount less 

21 than $150,000, the Secretary of the Treasury and 

22 the Administrator shall make publicly available the 

23 total number of loans made and the amount of each 

24 loan, disaggregated by ZIP Code of each recipient, 

25 industry of each recipient, business type of each reVerDate Sep 11 2014 20:21 Oct 31, 2020 Jkt 019200 PO 00000 Frm 00136 Fmt 6652 Sfmt 6201 E:\BILLS\S4818.IS S4818
137 

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1 cipient, and demographic categories of each recipi2 ent. 

3 (3) PUBLICATION.—Information provided under 

4 paragraphs (1) and (2) shall be made publicly avail5 able in a searchable digital format on websites of the 

6 Department of the Treasury and the Administration. 

7 SEC. 612. PROHIBITING CONFLICTS OF INTEREST FOR 

8 SMALL BUSINESS PROGRAMS UNDER THE 

9 CARES ACT. 

10 Section 4019 of the CARES Act (15 U.S.C. 9054) 

11 is amended— 

12 (1) in subsection (a), by adding at the end the 

13 following: 

14 ‘‘(7) SMALL BUSINESS ASSISTANCE.—The term 

15 ‘small business assistance’ means assistance pro16 vided under— 

17 ‘‘(A) section 7(a)(36) of the Small Busi18 ness Act (15 U.S.C. 636(a)(36)); 

19 ‘‘(B) subsection (b) or (c) of section 1103 

20 of this Act; 

21 ‘‘(C) section 1110 of this Act; or 

22 ‘‘(D) section 1112 of this Act.’’; 

23 (2) in subsection (b)— 

138 

•S 4818 IS

1 (A) by inserting ‘‘or provisions relating to 

2 small business assistance’’ after ‘‘this subtitle’’; 

3 and 

4 (B) by inserting ‘‘or for any small business 

5 assistance’’ before the period at the end; and 

6 (3) in subsection (c)— 

7 (A) by inserting ‘‘or seeking any small 

8 business assistance’’ after ‘‘section 4003’’; 

9 (B) by inserting ‘‘or small business assist10 ance’’ after ‘‘that transaction’’; 

11 (C) by inserting ‘‘or the Administrator of 

12 the Small Business Administration, as applica13 ble,’’ after ‘‘Federal Reserve System’’; and 

14 (D) by inserting ‘‘or to receive the small 

15 business assistance’’ after ‘‘in that trans16 action’’. 

17 SEC. 613. INCLUSION OF SCORE AND VETERAN BUSINESS 

18 OUTREACH CENTERS IN ENTREPRENEURIAL 

19 DEVELOPMENT PROGRAMS. 

20 (a) IN GENERAL.—Section 1103(a)(2) of the CARES 

21 Act (15 U.S.C. 9002(a)(2)) is amended— 

22 (1) in subparagraph (A), by striking ‘‘and’’ at 

23 the end; and 

24 (2) by adding at the end the following: 

139 

•S 4818 IS

1 ‘‘(C) a Veteran Business Outreach Center 

2 (as described in section 32(d) of the Small 

3 Business Act (15 U.S.C. 657b(d))); and 

4 ‘‘(D) the Service Corps of Retired Execu5 tives Association, or any successor or other or6 ganization, that receives a grant from the Ad7 ministrator to operate the SCORE program es8 tablished under section 8(b)(1)(B) of the Small 

9 Business Act (15 U.S.C. 637(b)(1)(B));’’. 

10 (b) FUNDING.—Section 1107(a)(4) of the CARES 

11 Act (15 U.S.C. 9006(a)(4)) is amended— 

12 (1) in subparagraph (A)— 

13 (A) by striking ‘‘$240,000,000’’ and in14 serting ‘‘$220,000,000’’; and 

15 (B) by striking ‘‘and’’ at the end; and 

16 (2) by adding at the end the following: 

17 ‘‘(C) $10,000,000 shall be for a Veteran 

18 Business Outreach Center described in section 

19 1103(a)(2)(C) of this Act to carry out activities 

20 under such section; and 

21 ‘‘(D) $10,000,000 shall be for the Service 

22 Corps of Retired Executives Association de23 scribed in section 1103(a)(2)(D) of this Act to 

24 carry out activities under such section;’’. 

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1 SEC. 614. CLARIFICATION OF USE OF CARES ACT FUNDS 

2 FOR SMALL BUSINESS DEVELOPMENT CEN3 TERS. 

4 Section 1103(b)(3)(A) of the CARES Act (15 U.S.C. 

5 9002(b)(3)(A)) is amended by adding at the end the fol6 lowing: ‘‘Funds awarded under this paragraph shall be in 

7 addition to any amounts appropriated for grants under 

8 section 21(a) of the Small Business Act (15 U.S.C. 

9 648(a)), and may be used to complement and support 

10 those appropriated program grants to assist covered small 

11 business concerns, with prioritization of such concerns af12 fected directly or indirectly by COVID–19 as described in 

13 paragraph (2).’’. 

14 SEC. 615. FUNDING FOR THE OFFICE OF INSPECTOR GEN15 ERAL OF THE SMALL BUSINESS ADMINISTRA16 TION. 

17 Section 1107(a)(3) of the CARES Act (15 U.S.C. 

18 9006(a)(3)) is amended by striking ‘‘September 30, 2024’’ 

19 and inserting ‘‘expended’’. 

20 SEC. 616. EXTENSION OF WAIVER OF MATCHING FUNDS RE21 QUIREMENT UNDER THE WOMEN’S BUSINESS 

22 CENTER PROGRAM. 

23 Section 1105 of the CARES Act (15 U.S.C. 9004) 

24 is amended by striking ‘‘During the 3-month period begin25 ning on the date of enactment of this Act,’’ and inserting 

26 ‘‘Until December 31, 2020,’’. 

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•S 4818 IS

1 SEC. 617. ACCESS TO SMALL BUSINESS ADMINISTRATION 

2 INFORMATION AND DATABASES. 

3 Section 19010 of division B of the CARES Act (Pub4 lic Law 116–136) is amended— 

5 (1) by redesignating subsection (e) as sub6 section (f); and 

7 (2) by inserting after subsection (d) the fol8 lowing: 

9 ‘‘(e) SMALL BUSINESS ADMINISTRATION DATA10 BASES.— 

11 ‘‘(1) IN GENERAL.—In conducting monitoring 

12 and oversight under this section, the Comptroller 

13 General, upon notice to the Administrator of the 

14 Small Business Administration, shall have direct ac15 cess to all information collected or produced in con16 nection with the administration of programs or pro17 vision of assistance carried out by the Administrator, 

18 including direct access to any information technology 

19 systems maintained or utilized by the Administrator 

20 to collect, process, or analyze documents or informa21 tion submitted by borrowers, lenders, or others in 

22 connection with any such program or provision of 

23 assistance. 

24 ‘‘(2) INFORMATION TECHNOLOGY SYSTEMS.— 

25 The Administrator of the Small Business Adminis26 tration shall appropriately identify and classify any 

142 

•S 4818 IS

1 sensitive information contained in an information 

2 technology system accessed by the Comptroller Gen3 eral. 

4 ‘‘(3) DEFINITION OF DIRECT ACCESS.—In this 

5 subsection, the term ‘direct access’ means secured 

6 access to the information technology systems main7 tained by the Administrator that would enable the 

8 Comptroller General to independently access, view, 

9 download, and retrieve data from such systems.’’. 

10 SEC. 618. SMALL BUSINESS LOCAL RELIEF PROGRAM. 

11 (a) ESTABLISHMENT.—There is established in the 

12 Department of the Treasury a Small Business Local Relief 

13 Program to allocate resources to States, units of general 

14 local government, and Indian Tribes to provide assistance 

15 to eligible entities and organizations that assist eligible en16 tities. 

17 (b) FUNDING.— 

18 (1) FUNDING TO STATES, LOCALITIES, AND IN19 DIAN TRIBES.— 

20 (A) IN GENERAL.—The Secretary shall al21 locate— 

22 (i) $10,250,000,000 to States and 

23 units of general local government in ac24 cordance with subparagraph (B)(i); 

143 

•S 4818 IS

1 (ii) $4,250,000,000 to States in ac2 cordance with subparagraph (B)(ii); and 

3 (iii) $500,000,000 to the Secretary of 

4 Housing and Urban Development for allo5 cations to Indian Tribes in accordance with 

6 subparagraph (B)(iii). 

7 (B) ALLOCATIONS.— 

8 (i) FORMULA FOR STATES AND UNITS

9 OF GENERAL LOCAL GOVERNMENT.—Of 

10 the amount described in subparagraph 

11 (A)(i)— 

12 (I) 70 percent shall be allocated 

13 to entitlement communities in accord14 ance with the formula under section 

15 106(b) of the Housing and Commu16 nity Development Act of 1974 (42 

17 U.S.C. 5306(b)); and 

18 (II) 30 percent shall be allocated 

19 to States, for use in nonentitlement 

20 areas, in accordance with the formula 

21 under section 106(d)(1) of such Act 

22 (42 U.S.C. 5306(d)(1)). 

23 (ii) RURAL BONUS FORMULA FOR

24 STATES.—The Secretary shall allocate the 

25 amount described in subparagraph (A)(ii) 

144 

•S 4818 IS

1 to States, for use in nonentitlement areas, 

2 in accordance with the formula under sec3 tion 106(d)(1) of such Act (42 U.S.C. 

4 5306(d)(1)). 

5 (iii) COMPETITIVE AWARDS TO INDIAN

6 TRIBES.— 

7 (I) IN GENERAL.—The Secretary 

8 of Housing and Urban Development 

9 shall allocate to Indian Tribes on a 

10 competitive basis the amount de11 scribed in subparagraph (A)(iii). 

12 (II) REQUIREMENTS.—In making 

13 allocations under subclause (I), the 

14 Secretary of Housing and Urban De15 velopment shall, to the greatest extent 

16 practicable, ensure that each Indian 

17 Tribe that satisfies requirements es18 tablished by the Secretary of Housing 

19 and Urban Development receives such 

20 an allocation. 

21 (C) STATE ALLOCATIONS FOR NON22 ENTITLEMENT AREAS.— 

23 (i) EQUITABLE ALLOCATION.—To the 

24 greatest extent practicable, a State shall 

25 allocate amounts for nonentitlement areas 

145 

•S 4818 IS

1 under clauses (i)(II) and (ii) of subpara2 graph (B) on an equitable basis. 

3 (ii) DISTRIBUTION OF AMOUNTS.— 

4 (I) DISCRETION.—Not later than 

5 14 days after the date on which a 

6 State receives amounts for use in a 

7 nonentitlement area under clause 

8 (i)(II) or (ii) of subparagraph (B), the 

9 State shall— 

10 (aa) distribute the amounts, 

11 or a portion thereof, to a unit of 

12 general local government located 

13 in the nonentitlement area or an 

14 entity designated thereby, that 

15 has established or will establish a 

16 small business emergency fund, 

17 for use under paragraph (2); or 

18 (bb) elect to reserve the 

19 amounts, or a portion thereof, for 

20 use by the State under paragraph 

21 (2) for the benefit of eligible enti22 ties located in the nonentitlement 

23 area. 

24 (II) SENSE OF CONGRESS.—It is 

25 the sense of Congress that, in distribVerDate Sep 11 2014 20:21 Oct 31, 2020 Jkt 019200 PO 00000 Frm 00145 Fmt 6652 Sfmt 6201 E:\BILLS\S4818.IS S4818
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1 uting amounts under subclause (I), in 

2 the case of amounts allocated for a 

3 nonentitlement area in which a unit of 

4 general local government or an entity 

5 designated thereby has established a 

6 small business emergency fund, a 

7 State should, as quickly as is prac8 ticable, distribute amounts to that 

9 unit of general local government or 

10 entity, respectively, as described in 

11 item (aa) of such subclause. 

12 (iii) TREATMENT OF STATES NOT

13 ACTING AS PASS-THROUGH AGENTS UNDER

14 CDBG.—The Secretary shall allocate 

15 amounts to a State under this paragraph 

16 without regard to whether the State has 

17 elected to distribute amounts allocated 

18 under section 106(d)(1) of the Housing 

19 and Community Development Act of 1974 

20 (42 U.S.C. 5306(d)(1)). 

21 (2) USE OF FUNDS.— 

22 (A) IN GENERAL.—A State, unit of general 

23 local government, or Indian Tribe that receives 

24 an allocation under paragraph (1), or an entity 

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147 

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1 ment under paragraph (1)(C)(ii)(I)(aa), wheth2 er directly or indirectly, may use such alloca3 tion, not later than 60 days after receipt of the 

4 allocation— 

5 (i) to provide funding to a small busi6 ness emergency fund established by that 

7 State (or entity designated thereby), that 

8 unit of general local government (or entity 

9 designated thereby), that entity designated 

10 by a unit of general local government, or 

11 that Indian Tribe (or entity designated 

12 thereby), respectively; 

13 (ii) to provide funding to support or14 ganizations that provide technical assist15 ance to eligible entities; or 

16 (iii) subject to subparagraph (B), to 

17 pay for administrative costs incurred by 

18 that State (or entity designated thereby), 

19 that unit of general local government (or 

20 entity designated thereby), that entity des21 ignated by a unit of general local govern22 ment, or that Indian Tribe (or entity des23 ignated thereby), respectively, in estab24 lishing and administering a small business 

25 emergency fund. 

148 

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1 (B) LIMITATION.—A State, unit of general 

2 local government, or Indian Tribe, or an entity 

3 designated by a unit of general local govern4 ment under paragraph (1)(C)(ii)(I)(aa), may 

5 not use more than 3 percent of an allocation re6 ceived under paragraph (1) for a purpose de7 scribed in subparagraph (A)(iii) of this para8 graph. 

9 (C) OBLIGATION DEADLINES.— 

10 (i) STATES.—Of the amounts that a 

11 State elects under paragraph 

12 (1)(C)(ii)(I)(bb) to reserve for use by the 

13 State under this paragraph— 

14 (I) any amounts that the State 

15 provides to a small business emer16 gency fund under subparagraph (A)(i) 

17 of this paragraph shall be obligated by 

18 the small business emergency fund for 

19 expenditure not later than 74 days 

20 after the date on which the State re21 ceived the amounts from the Sec22 retary under clause (i) or (ii) of para23 graph (1)(A); and 

24 (II) any amounts that the State 

25 chooses to provide to an organization 

149 

•S 4818 IS

1 under subparagraph (A)(ii) of this 

2 paragraph, or to use to pay for ad3 ministrative costs under subparagraph 

4 (A)(iii) of this paragraph, shall be ob5 ligated by the State for expenditure 

6 not later than 74 days after the date 

7 on which the State received the 

8 amounts from the Secretary under 

9 clause (i) or (ii) of paragraph (1)(A). 

10 (ii) ENTITLEMENT COMMUNITIES.— 

11 Of the amounts that an entitlement com12 munity receives from the Secretary under 

13 paragraph (1)(B)(i)(I)— 

14 (I) any amounts that the entitle15 ment community provides to a small 

16 business emergency fund under sub17 paragraph (A)(i) of this paragraph 

18 shall be obligated by the small busi19 ness emergency fund for expenditure 

20 not later than 74 days after the date 

21 on which the entitlement community 

22 received the amounts; and 

23 (II) any amounts that the entitle24 ment community chooses to provide to 

25 an organization under subparagraph 

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•S 4818 IS

1 (A)(ii) of this paragraph, or to use to 

2 pay for administrative costs under 

3 subparagraph (A)(iii) of this para4 graph, shall be obligated by the enti5 tlement community for expenditure 

6 not later than 74 days after the date 

7 on which the entitlement community 

8 received the amounts. 

9 (iii) NONENTITLEMENT COMMU10 NITIES.—Of the amounts that a unit of 

11 general local government, or an entity des12 ignated thereby, located in a nonentitle13 ment area receives from a State under 

14 paragraph (1)(C)(ii)(I)(aa)— 

15 (I) any amounts that the unit of 

16 general local government or entity 

17 provides to a small business emer18 gency fund under subparagraph (A)(i) 

19 of this paragraph shall be obligated by 

20 the small business emergency fund for 

21 expenditure not later than 60 days 

22 after the date on which the unit of 

23 general local government or entity re24 ceived the amounts; and 

151 

•S 4818 IS

1 (II) any amounts that the unit of 

2 general local government or entity 

3 chooses to provide to a support orga4 nization under subparagraph (A)(ii) of 

5 this paragraph or to use to pay for 

6 administrative costs under subpara7 graph (A)(iii) of this paragraph shall 

8 be obligated by the unit of general 

9 local government or entity for expend10 iture not later than 60 days after the 

11 date on which the unit of general local 

12 government or entity received the 

13 amounts. 

14 (D) RECOVERY OF UNOBLIGATED

15 FUNDS.—If a State, entitlement community, 

16 other unit of general local government, entity 

17 designated by a unit of general local govern18 ment under paragraph (1)(C)(ii)(I)(aa), or 

19 small business emergency fund fails to obligate 

20 amounts by the applicable deadline under sub21 paragraph (C), the Secretary shall recover the 

22 amount of those amounts that remain unobli23 gated, as of that deadline. 

24 (E) COLLABORATION.—It is the sense of 

25 Congress that— 

152 

•S 4818 IS

1 (i) an entitlement community that re2 ceives amounts allocated under paragraph 

3 (1)(B)(i)(I) should collaborate with the ap4 plicable local entity responsible for eco5 nomic development and small business de6 velopment in establishing and admin7 istering a small business emergency fund; 

8 and 

9 (ii) States, units of general local gov10 ernment, and Indian Tribes that receive 

11 amounts under paragraph (1) and are lo12 cated in the same region should collaborate 

13 in establishing and administering one or 

14 more small business emergency funds. 

15 (c) SMALL BUSINESS EMERGENCY FUNDS.—With 

16 respect to a small business emergency fund that receives 

17 funds from an allocation made under subsection (b)— 

18 (1) if the small business emergency fund makes 

19 a loan to an eligible entity with those funds, the 

20 small business emergency fund may use amounts re21 turned to the small business emergency fund from 

22 the repayment of the loan to provide further assist23 ance to eligible entities without regard to the termi24 nation date described in subsection (g); and 

153 

•S 4818 IS

1 (2) the small business emergency fund shall 

2 conduct outreach to eligible entities that are less 

3 likely to participate in programs established under 

4 the CARES Act (Public Law 116–136) and the 

5 amendments made by that Act, including minority6 owned entities, businesses in low-income commu7 nities, businesses in rural and Tribal areas, and 

8 other businesses that are underserved by the tradi9 tional banking system. 

10 (d) INFORMATION GATHERING.— 

11 (1) IN GENERAL.—When providing assistance 

12 to an eligible entity with funds received from an allo13 cation made under subsection (b), the State, unit of 

14 general local government, or Indian Tribe, or the en15 tity designated by a State, unit of general local gov16 ernment, or Indian Tribe, that provides assistance 

17 through a small business emergency fund shall— 

18 (A) inquire whether the eligible entity is— 

19 (i) in the case of an eligible entity 

20 that is a business entity or a nonprofit or21 ganization, a women-owned entity or a mi22 nority-owned entity; and 

23 (ii) in the case of an eligible entity 

24 who is an individual, a woman or a minor25 ity; and 

154 

•S 4818 IS

1 (B) maintain a record of the responses to 

2 each inquiry conducted under subparagraph 

3 (A), which the entity shall promptly submit to 

4 the applicable State, unit of general local gov5 ernment, or Indian Tribe. 

6 (2) RIGHT TO REFUSE.—An eligible entity may 

7 refuse to provide any information requested under 

8 paragraph (1)(A). 

9 (e) REPORTING.— 

10 (1) IN GENERAL.—Not later than 30 days after 

11 the date on which a State, unit of general local gov12 ernment, or Indian Tribe initially receives an alloca13 tion made under subsection (b), and not later than 

14 14 days after the date on which that State, unit of 

15 local government, or Indian Tribe completes the full 

16 expenditure of that allocation, that State, unit of 

17 general local government, or Indian Tribe shall sub18 mit to the Secretary a report that includes— 

19 (A) the number of recipients of assistance 

20 made available from the allocation; 

21 (B) the total amount, and type, of assist22 ance made available from the allocation; 

23 (C) to the extent applicable, with respect 

24 to each recipient described in subparagraph 

25 (A), information regarding the industry of the 

155 

•S 4818 IS

1 recipient, the amount of assistance received by 

2 the recipient, the annual sales of the recipient, 

3 and the number of employees of the recipient; 

4 (D) to the extent available from informa5 tion collected under subsection (d), information 

6 regarding the number of recipients described in 

7 subparagraph (A) that are minority-owned enti8 ties, minorities, women, and women-owned enti9 ties; 

10 (E) the ZIP Code of each recipient de11 scribed in subparagraph (A); and 

12 (F) any other information that the Sec13 retary, in the sole discretion of the Secretary, 

14 determines to be necessary to carry out the 

15 Program. 

16 (2) PUBLIC AVAILABILITY.—As soon as is prac17 ticable after receiving each report submitted under 

18 paragraph (1), the Secretary shall make all informa19 tion contained in the report publicly available. 

20 (f) RULES AND GUIDANCE.—The Secretary, in con21 sultation with the Administrator, shall issue any rules and 

22 guidance that are necessary to carry out the Program, in23 cluding by establishing appropriate compliance and report24 ing requirements in addition to the reporting requirements 

25 under subsection (e). 

156 

•S 4818 IS

1 (g) TERMINATION.—The Program, and any rules and 

2 guidance issued under subsection (f) with respect to the 

3 Program, shall terminate on the date that is 1 year after 

4 the date of enactment of this Act. 

5 (h) DEFINITIONS.—In this section: 

6 (1) ELIGIBLE ENTITY.—The term ‘‘eligible enti7 ty’’— 

8 (A) means a business concern or a covered 

9 nonprofit organization (as defined in section 

10 7(a)(36)(A)(vii) of the Small Business Act (15 

11 U.S.C. 636(a)(36)(A)(vii))) that— 

12 (i) employs— 

13 (I) not more than 20 full-time 

14 equivalent employees; or 

15 (II) if the entity or organization 

16 is located in a low-income community, 

17 not more than 50 full-time equivalent 

18 employees; 

19 (ii) has experienced a loss of revenue 

20 as a result of the COVID–19 pandemic, 

21 according to criteria established by the 

22 Secretary; and 

23 (iii) with respect to such an entity or 

24 organization that receives assistance from 

25 a small business emergency fund, satisfies 

157 

•S 4818 IS

1 additional requirements, as determined by 

2 the State, unit of general local government, 

3 Indian Tribe, or other entity that has es4 tablished the small business emergency 

5 fund; and 

6 (B) includes an individual who operates 

7 under a sole proprietorship, an individual who 

8 operates as an independent contractor, and an 

9 eligible self-employed individual if such an indi10 vidual has experienced a loss of revenue as a re11 sult of the COVID–19 pandemic, according to 

12 criteria established by the Secretary. 

13 (2) ELIGIBLE SELF-EMPLOYED INDIVIDUAL.— 

14 The term ‘‘eligible self-employed individual’’ has the 

15 meaning given the term in section 7(a)(36)(A) of the 

16 Small Business Act (15 U.S.C. 636(a)(36)(A)). 

17 (3) ENTITLEMENT COMMUNITY.—The term 

18 ‘‘entitlement community’’ means a metropolitan city 

19 or urban county, as those terms are defined in sec20 tion 102 of the Housing and Community Develop21 ment Act of 1974 (42 U.S.C. 5302). 

22 (4) FULL-TIME EQUIVALENT EMPLOYEES.— 

23 (A) IN GENERAL.—The term ‘‘full-time 

24 equivalent employees’’ means a number of emVerDate Sep 11 2014 20:21 Oct 31, 2020 Jkt 019200 PO 00000 Frm 00157 Fmt 6652 Sfmt 6201 E:\BILLS\S4818.IS S4818
158 

•S 4818 IS

1 ployees equal to the number determined by di2 viding— 

3 (i) the total number of hours of serv4 ice for which wages were paid by the em5 ployer to employees during the taxable 

6 year; by 

7 (ii) 2,080. 

8 (B) ROUNDING.—The number determined 

9 under subparagraph (A) shall be rounded to the 

10 next lowest whole number if not otherwise a 

11 whole number. 

12 (C) EXCESS HOURS NOT COUNTED.—If an 

13 employee works in excess of 2,080 hours of 

14 service during any taxable year, such excess 

15 shall not be taken into account under subpara16 graph (A). 

17 (D) HOURS OF SERVICE.—The Secretary, 

18 in consultation with the Secretary of Labor, 

19 shall prescribe such regulations, rules, and 

20 guidance as may be necessary to determine the 

21 hours of service of an employee, including rules 

22 for the application of this paragraph to employ23 ees who are not compensated on an hourly 

24 basis. 

159 

•S 4818 IS

1 (5) INDIAN TRIBE.—The term ‘‘Indian Tribe’’ 

2 has the meaning given the term ‘‘Indian tribe’’ in 

3 section 102 of the Housing and Community Devel4 opment Act of 1974 (42 U.S.C. 5302). 

5 (6) LOW-INCOME COMMUNITY.—The term ‘‘low6 income community’’ has the meaning given the term 

7 in section 45D(e) of the Internal Revenue Code of 

8 1986. 

9 (7) MINORITY.—The term ‘‘minority’’ has the 

10 meaning given the term in section 1204(c)(3) of the 

11 Financial Institutions Reform, Recovery, and En12 forcement Act of 1989 (12 U.S.C. 1811 note). 

13 (8) MINORITY-OWNED ENTITY.—The term ‘‘mi14 nority-owned entity’’ means an entity— 

15 (A) more than 50 percent of the ownership 

16 or control of which is held by not less than 1 

17 minority; and 

18 (B) more than 50 percent of the net profit 

19 or loss of which accrues to not less than 1 mi20 nority. 

21 (9) NONENTITLEMENT AREA; STATE; UNIT OF

22 GENERAL LOCAL GOVERNMENT.— 

23 (A) IN GENERAL.—Except as provided in 

24 subparagraph (B), the terms ‘‘nonentitlement 

25 area’’, ‘‘State’’, and ‘‘unit of general local govVerDate Sep 11 2014 20:21 Oct 31, 2020 Jkt 019200 PO 00000 Frm 00159 Fmt 6652 Sfmt 6201 E:\BILLS\S4818.IS S4818
160 

•S 4818 IS

1 ernment’’ have the meanings given those terms 

2 in section 102 of the Housing and Community 

3 Development Act of 1974 (42 U.S.C. 5302). 

4 (B) STATE.—For purposes of subpara5 graphs (A)(ii) and (B)(ii) of subsection (b)(1), 

6 the term ‘‘State’’ means any State of the 

7 United States. 

8 (10) PROGRAM.—The term ‘‘Program’’ means 

9 the Small Business Local Relief Program established 

10 under this section. 

11 (11) SECRETARY.—The term ‘‘Secretary’’ 

12 means the Secretary of the Treasury. 

13 (12) SMALL BUSINESS EMERGENCY FUND.— 

14 The term ‘‘small business emergency fund’’ means a 

15 fund or program— 

16 (A) established by a State, a unit of gen17 eral local government, an Indian Tribe, or an 

18 entity designated by a State, unit of general 

19 local government, or Indian Tribe; and 

20 (B) that provides or administers financing 

21 to eligible entities in the form of grants, loans, 

22 or other means in accordance with the needs of 

23 eligible entities and the capacity of the fund or 

24 program. 

161 

•S 4818 IS

1 (13) WOMEN-OWNED ENTITY.—The term 

2 ‘‘women-owned entity’’ means an entity— 

3 (A) more than 50 percent of the ownership 

4 or control of which is held by not less than 1 

5 woman; and 

6 (B) more than 50 percent of the net profit 

7 or loss of which accrues to not less than 1 

8 woman. 

9 SEC. 619. GRANTS FOR SHUTTERED VENUE OPERATORS. 

10 (a) DEFINITIONS.—In this section: 

11 (1) ELIGIBLE LIVE VENUE OPERATOR OR PRO12 MOTER, THEATRICAL PRODUCER, MOTION PICTURE

13 THEATRE OPERATOR, OR TALENT REPRESENTA14 TIVE.— 

15 (A) IN GENERAL.—The term ‘‘eligible live 

16 venue operator or promoter, theatrical pro17 ducer, motion picture theatre operator, or talent 

18 representative’’ means a live venue operator or 

19 promoter or theatrical producer, a motion pic20 ture theatre operator, or a talent representative 

21 that meets the following requirements: 

22 (i) The live venue operator or pro23 moter or theatrical producer, the motion 

24 picture theatre operator, or the talent rep25 resentative was fully operational as a live 

162 

•S 4818 IS

1 venue operator or promoter or theatrical 

2 producer, motion picture theatre operator, 

3 or talent representative on February 29, 

4 2020. 

5 (ii) As of the date of the grant under 

6 this section— 

7 (I) the live venue operator or 

8 promoter or theatrical producer is or9 ganizing, promoting, producing, man10 aging, or hosting future live events de11 scribed in paragraph (3)(A)(i); 

12 (II) the motion picture theatre 

13 operator is open or intends to reopen 

14 for the primary purpose of public ex15 hibition of motion pictures; or 

16 (III) the talent representative is 

17 representing or managing artists and 

18 entertainers. 

19 (iii) The venues at which the live 

20 venue operator or promoter or theatrical 

21 producer promotes, produces, manages, or 

22 hosts events described in paragraph 

23 (3)(A)(i) or the artists and entertainers 

24 represented or managed by the talent repVerDate Sep 11 2014 20:21 Oct 31, 2020 Jkt 019200 PO 00000 Frm 00162 Fmt 6652 Sfmt 6201 E:\BILLS\S4818.IS S4818
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•S 4818 IS

1 resentative perform have the following 

2 characteristics: 

3 (I) A defined performance and 

4 audience space. 

5 (II) Mixing equipment, a public 

6 address system, and a lighting rig. 

7 (III) Engages 1 or more individ8 uals to carry out not less than 2 of 

9 the following roles: 

10 (aa) A sound engineer. 

11 (bb) A booker. 

12 (cc) A promoter. 

13 (dd) A stage manager. 

14 (ee) Security personnel. 

15 (ff) A box office manager. 

16 (IV) There is a paid ticket or 

17 cover charge to attend most perform18 ances and artists are paid fairly and 

19 do not play for free or solely for tips, 

20 except for fundraisers or similar char21 itable events. 

22 (V) For a venue owned or oper23 ated by a nonprofit entity that pro24 duces free events, the events are proVerDate Sep 11 2014 20:21 Oct 31, 2020 Jkt 019200 PO 00000 Frm 00163 Fmt 6652 Sfmt 6201 E:\BILLS\S4818.IS S4818
164 

•S 4818 IS

1 duced and managed by paid employ2 ees, not by volunteers. 

3 (VI) Performances are marketed 

4 through listings in printed or elec5 tronic publications, on websites, by 

6 mass email, or on social media. 

7 (iv) A motion picture theatre or mo8 tion picture theatres operated by the mo9 tion picture theatre operator have the fol10 lowing characteristics: 

11 (I) At least 1 auditorium that in12 cludes a motion picture screen and 

13 fixed audience seating. 

14 (II) A projection booth or space 

15 containing not less than 1 motion pic16 ture projector. 

17 (III) A paid ticket charge to at18 tend exhibition of motion pictures. 

19 (IV) Motion picture exhibitions 

20 are marketed through showtime list21 ings in printed or electronic publica22 tions, on websites, by mass mail, or 

23 on social media. 

24 (v) The live venue operator or pro25 moter or theatrical producer, the motion 

165 

•S 4818 IS

1 picture theatre operator, or the talent rep2 resentative does not have, or is not major3 ity owned or controlled by an entity with, 

4 more than 1 of the following characteris5 tics: 

6 (I) Being an issuer, the securities 

7 of which are listed on a national secu8 rities exchange. 

9 (II) Owning or operating venues, 

10 motion picture theatres, or talent 

11 agencies or talent management com12 panies with offices in more than 1 

13 country. 

14 (III) Owning or operating venues 

15 or motion picture theatres in more 

16 than 10 States. 

17 (IV) Employing more than 500 

18 employees, determined on a full-time 

19 equivalent basis in accordance with 

20 subparagraph (B). 

21 (V) Receiving more than 10 per22 cent of gross revenue from Federal 

23 funding. 

24 (B) CALCULATION OF FULL-TIME EMPLOY25 EES.—For purposes of determining the number 

166 

•S 4818 IS

1 of full-time equivalent employees under sub2 paragraph (A)(v)(IV)— 

3 (i) any employee working not fewer 

4 than 30 hours per week shall be considered 

5 a full-time employee; and 

6 (ii) any employee working not fewer 

7 than 10 hours and fewer than 30 hours 

8 per week shall be counted as one-half of a 

9 full-time employee. 

10 (C) MULTIPLE BUSINESS ENTITIES.—Each 

11 business entity of an eligible live venue operator 

12 or promoter, theatrical producer, motion picture 

13 theatre operator, or talent representative that 

14 also meets the requirements under subpara15 graph (A) shall be treated by the Administrator 

16 as an independent, non-affiliated entity for the 

17 purposes of this section. 

18 (2) EXCHANGE; ISSUER; SECURITY.—The terms 

19 ‘‘exchange’’, ‘‘issuer’’, and ‘‘security’’ have the 

20 meanings given those terms in section 3(a) of the 

21 Securities Exchange Act of 1934 (15 U.S.C. 78c(a)). 

22 (3) LIVE VENUE OPERATOR OR PROMOTER OR

23 THEATRICAL PRODUCER.—The term ‘‘live venue op24 erator or promoter or theatrical producer’’— 

25 (A) means— 

167 

•S 4818 IS

1 (i) an individual or entity— 

2 (I) that, as a principal business 

3 activity, organizes, promotes, pro4 duces, manages, or hosts live concerts, 

5 comedy shows, theatrical productions, 

6 or other events by performing artists 

7 for which— 

8 (aa) a cover charge through 

9 ticketing or front door entrance 

10 fee is applied; and 

11 (bb) performers are paid in 

12 an amount that is based on a 

13 percentage of sales, a guarantee 

14 (in writing or standard contract), 

15 or another mutually beneficial 

16 formal agreement; and 

17 (II) for which not less than 70 

18 percent of the earned revenue of the 

19 individual or entity is generated 

20 through, to the extent related to a live 

21 event described in subclause (I), cover 

22 charges or ticket sales, production 

23 fees or production reimbursements, 

24 nonprofit educational initiatives, or 

168 

•S 4818 IS

1 the sale of event beverages, food, or 

2 merchandise; or 

3 (ii) an individual or entity that, as a 

4 principal business activity, makes available 

5 for purchase by the public an average of 

6 not less than 60 days before the date of 

7 the event tickets to events— 

8 (I) described in clause (i)(I); and 

9 (II) for which performers are 

10 paid in an amount that is based on a 

11 percentage of sales, a guarantee (in 

12 writing or standard contract), or an13 other mutually beneficial formal 

14 agreement; and 

15 (B) includes an individual or entity de16 scribed in subparagraph (A) that— 

17 (i) operates for profit or as a non18 profit; 

19 (ii) is government-owned; or 

20 (iii) is a corporation, limited liability 

21 company, or partnership or operated as a 

22 sole proprietorship. 

23 (4) MOTION PICTURE THEATRE OPERATOR.— 

24 The term ‘‘motion picture theatre operator’’ means 

25 an individual or entity that— 

169 

•S 4818 IS

1 (A) as the principal business activity of the 

2 individual or entity, owns or operates at least 1 

3 place of public accommodation for the purpose 

4 of motion picture exhibition for a fee; and 

5 (B) includes an individual or entity de6 scribed in subparagraph (A) that— 

7 (i) operates for profit or as a non8 profit; 

9 (ii) is government-owned; or 

10 (iii) is a corporation, limited liability 

11 company, or partnership or operated as a 

12 sole proprietorship. 

13 (5) NATIONAL SECURITIES EXCHANGE.—The 

14 term ‘‘national securities exchange’’ means an ex15 change registered as a national securities exchange 

16 under section 6 of the Securities Exchange Act of 

17 1934 (15 U.S.C. 78f). 

18 (6) STATE.—The term ‘‘State’’ means— 

19 (A) a State; 

20 (B) the District of Columbia; 

21 (C) the Commonwealth of Puerto Rico; 

22 and 

23 (D) any other territory or possession of the 

24 United States. 

170 

•S 4818 IS

1 (7) TALENT REPRESENTATIVE.—The term ‘‘tal2 ent representative’’— 

3 (A) means an agent or manager that— 

4 (i) as not less than 70 percent of the 

5 operations of the agent or manager, is en6 gaged in representing or managing artists 

7 and entertainers; 

8 (ii) books or represents musicians, co9 medians, actors, or similar performing art10 ists primarily at live events in venues or at 

11 festivals; and 

12 (iii) represents performers described 

13 in clause (ii) that are paid in an amount 

14 that is based on the number of tickets sold, 

15 or a similar basis; and 

16 (B) includes an agent or manager de17 scribed in subparagraph (A) that— 

18 (i) operates for profit or as a non19 profit; 

20 (ii) is government-owned; or 

21 (iii) is a corporation, limited liability 

22 company, or partnership or operated as a 

23 sole proprietorship. 

24 (b) AUTHORITY.— 

25 (1) INITIAL GRANTS.— 

171 

•S 4818 IS

1 (A) IN GENERAL.—The Administrator may 

2 make initial grants to eligible live venue opera3 tors or promoters, theatrical producers, motion 

4 picture theatre operators, or talent representa5 tives in accordance with this section. 

6 (B) FIRST PRIORITY IN AWARDING

7 GRANTS.—During the initial 14-day period dur8 ing which the Administrator awards grants 

9 under this section, the Administrator shall only 

10 award grants to an eligible live venue operator 

11 or promoter, theatrical producer, motion picture 

12 theatre operator, or talent representative with 

13 revenue, during the calendar quarter during 

14 which the Administrator begins awarding such 

15 grants, that is not more than 10 percent of the 

16 revenue of the eligible live venue operator or 

17 promoter, theatrical producer, motion picture 

18 theatre operator, or talent representative during 

19 the corresponding calendar quarter during 2019 

20 due to the COVID–19 pandemic. 

21 (C) SECOND PRIORITY IN AWARDING

22 GRANTS.—During the 14-day period imme23 diately following the 14-day period described in 

24 subparagraph (B), the Administrator shall only 

25 award grants to an eligible live venue operator 

172 

•S 4818 IS

1 or promoter, theatrical producer, motion picture 

2 theatre operator, or talent representative with 

3 revenue, during the calendar quarter during 

4 which the Administrator begins awarding such 

5 grants, that is not more than 30 percent of the 

6 revenue of the eligible live venue operator or 

7 promoter, theatrical producer, motion picture 

8 theatre operator, or talent representative during 

9 the corresponding calendar quarter during 2019 

10 due to the COVID–19 pandemic. 

11 (2) SUPPLEMENTAL GRANTS.—The Adminis12 trator may make a supplemental grant in accordance 

13 with this section to an eligible live venue operator or 

14 promoter, theatrical producer, motion picture the15 atre operator, or talent representative that receives 

16 a grant under paragraph (1) if, as of December 1, 

17 2020, the revenues of the eligible live venue operator 

18 or promoter, theatrical producer, motion picture the19 atre operator, or talent representative for the most 

20 recent calendar quarter are not more than 20 per21 cent of the revenues of the eligible live venue oper22 ator or promoter, theatrical producer, motion picture 

23 theatre operator, or talent representative for the cor24 responding calendar quarter during 2019 due to the 

25 COVID–19 pandemic. 

173 

•S 4818 IS

1 (3) CERTIFICATION.—An eligible live venue op2 erator or promoter, theatrical producer, motion pic3 ture theatre operator, or talent representative apply4 ing for a grant under this section that is an eligible 

5 business described in the matter preceding subclause 

6 (I) of section 4003(c)(3)(D)(i) of the CARES Act 

7 (15 U.S.C. 9042(c)(3)(D)(i)), shall make a good8 faith certification described in subclauses (IX) and 

9 (X) of such section. 

10 (c) AMOUNT.— 

11 (1) INITIAL GRANTS.—A grant under sub12 section (b)(1) shall be in the amount equal to the 

13 lesser of— 

14 (A) the amount equal to 45 percent of the 

15 gross earned revenue of the eligible live venue 

16 operator or promoter, theatrical producer, mo17 tion picture theatre operator, or talent rep18 resentative during 2019; 

19 (B) for an eligible live venue operator or 

20 promoter, theatrical producer, motion picture 

21 theatre operator, or talent representative that 

22 began operations after January 1, 2019, the 

23 amount equal to the product obtained by multi24 plying— 

174 

•S 4818 IS

1 (i) the average monthly gross earned 

2 revenue for each full month during which 

3 the entity was in operation during 2019; 

4 by 

5 (ii) 6; or 

6 (C) $12,000,000. 

7 (2) SUPPLEMENTAL GRANTS.—A grant under 

8 subsection (b)(2) shall be in the amount equal to 50 

9 percent of the grant received by the eligible live 

10 venue operator or promoter, theatrical producer, mo11 tion picture theatre operator, or talent representa12 tive under subsection (b)(1). 

13 (d) USE OF FUNDS.— 

14 (1) TIMING.— 

15 (A) EXPENSES INCURRED.— 

16 (i) IN GENERAL.—Except as provided 

17 in clause (ii), amounts received under a 

18 grant under this section may be used for 

19 costs incurred during the period beginning 

20 on March 1, 2020, and ending on Decem21 ber 31, 2021. 

22 (ii) EXTENSION FOR SUPPLEMENTAL

23 GRANTS.—If an eligible live venue operator 

24 or promoter, theatrical producer, motion 

25 picture theatre operator, or talent repVerDate Sep 11 2014 20:21 Oct 31, 2020 Jkt 019200 PO 00000 Frm 00174 Fmt 6652 Sfmt 6201 E:\BILLS\S4818.IS S4818
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•S 4818 IS

1 resentative receives a grant under sub2 section (b)(2), amounts received under ei3 ther grant under this section may be used 

4 for costs incurred during the period begin5 ning on March 1, 2020, and ending on 

6 June 30, 2022. 

7 (B) EXPENDITURE.— 

8 (i) IN GENERAL.—Except as provided 

9 in clause (ii), an eligible live venue oper10 ator or promoter, theatrical producer, mo11 tion picture theatre operator, or talent rep12 resentative shall return to the Adminis13 trator any amounts received under a grant 

14 under this section that are not expended 

15 on or before the date that is 1 year after 

16 the date of disbursement of the grant. 

17 (ii) EXTENSION FOR SUPPLEMENTAL

18 GRANTS.—If an eligible live venue operator 

19 or promoter, theatrical producer, motion 

20 picture theatre operator, or talent rep21 resentative receives a grant under sub22 section (b)(2), the eligible live venue oper23 ator or promoter, theatrical producer, mo24 tion picture theatre operator, or talent rep25 resentative shall return to the AdminisVerDate Sep 11 2014 20:21 Oct 31, 2020 Jkt 019200 PO 00000 Frm 00175 Fmt 6652 Sfmt 6201 E:\BILLS\S4818.IS S4818
176 

•S 4818 IS

1 trator any amounts received under either 

2 grant under this section that are not ex3 pended on or before the date that is 18 

4 months after the date of disbursement to 

5 the eligible live venue operator or pro6 moter, theatrical producer, motion picture 

7 theatre operator, or talent representative 

8 of the grant under subsection (b)(1). 

9 (2) ALLOWABLE EXPENSES.—An eligible live 

10 venue operator or promoter, theatrical producer, mo11 tion picture theatre operator, or talent representa12 tive may use amounts received under a grant under 

13 this section for— 

14 (A) payroll costs for employees and fur15 loughed employees, including— 

16 (i) costs for continuation coverage 

17 provided pursuant to part 6 of subtitle B 

18 of title I of the Employee Retirement In19 come Security Act of 1974 (29 U.S.C. 

20 1161 et seq.) (other than under section 

21 609 of such Act (29 U.S.C. 1169)), title 

22 XXII of the Public Health Service Act (42 

23 U.S.C. 300bb–1 et seq.), section 4980B of 

24 the Internal Revenue Code of 1986 (other 

25 than subsection (f)(1) of such section insoVerDate Sep 11 2014 20:21 Oct 31, 2020 Jkt 019200 PO 00000 Frm 00176 Fmt 6652 Sfmt 6201 E:\BILLS\S4818.IS S4818
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•S 4818 IS

1 far as it relates to pediatric vaccines), or 

2 section 8905a of title 5, United States 

3 Code, or under a State program that pro4 vides comparable continuation coverage, 

5 other than coverage under a health flexible 

6 spending arrangement under a cafeteria 

7 plan within the meaning of section 125 of 

8 the Internal Revenue Code of 1986; or 

9 (ii) any other non-cash benefit; 

10 (B) rent; 

11 (C) utilities; 

12 (D) mortgage interest payments on exist13 ing mortgages as of February 15, 2020; 

14 (E) scheduled interest payments on other 

15 scheduled debt as of February 15, 2020; 

16 (F) costs related to personal protective 

17 equipment; 

18 (G) payments of principal on outstanding 

19 loans; 

20 (H) payments made to independent con21 tractors, as reported on Form–1099 MISC; and 

22 (I) other ordinary and necessary business 

23 expenses, including— 

24 (i) settling existing debts owed to ven25 dors; 

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1 (ii) maintenance expenses; 

2 (iii) administrative costs; 

3 (iv) taxes; 

4 (v) operating leases; 

5 (vi) insurance; 

6 (vii) advertising, production transpor7 tation, and capital expenditures related to 

8 producing a theatrical production, concert, 

9 or comedy show; and 

10 (viii) any other capital expenditure or 

11 expense required under any State, local, or 

12 Federal law or guideline related to social 

13 distancing. 

14 (3) PROHIBITED EXPENSES.—An eligible live 

15 venue operator or promoter, theatrical producer, mo16 tion picture theatre operator, or talent representa17 tive may not use amounts received under a grant 

18 under this section— 

19 (A) to purchase real estate; 

20 (B) for payments of interest or principal 

21 on loans originated after February 15, 2020; 

22 (C) to invest or re-lend funds; 

23 (D) for contributions or expenditures to, or 

24 on behalf of, any political party, party com25 mittee, or candidate for elective office; or 

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1 (E) for any other use as may be prohibited 

2 by the Administrator. 

3 SEC. 620. SUPPORT FOR RESTAURANTS. 

4 (a) SHORT TITLE.—This section may be cited as the 

5 ‘‘Real Economic Support That Acknowledges Unique Res6 taurant Assistance Needed To Survive Act of 2020’’ or 

7 the ‘‘RESTAURANTS Act of 2020’’. 

8 (b) DEFINITIONS.—In this section: 

9 (1) AFFILIATED BUSINESS.—The term ‘‘affili10 ated business’’ means a business in which an eligible 

11 entity has an equity or right to profit distributions 

12 of not less than 50 percent, or in which an eligible 

13 entity has the contractual authority to control the 

14 direction of the business, provided that such affili15 ation shall be determined as of any arrangements or 

16 agreements in existence, as of March 13, 2020. 

17 (2) COVERED PERIOD.—The term ‘‘covered pe18 riod’’ means the period beginning on February 15, 

19 2020, and ending on June 30, 2021. 

20 (3) ELIGIBLE ENTITY.—The term ‘‘eligible enti21 ty’’— 

22 (A) means a restaurant, food stand, food 

23 truck, food cart, caterer, saloon, inn, tavern, 

24 bar, lounge, brewpub, tasting room, taproom, li25 censed facility, or premise of a beverage alcohol 

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1 producer where the public may taste, sample, or 

2 purchase products, or other similar place of 

3 business— 

4 (i) in which the public or patrons as5 semble for the primary purpose of being 

6 served food or drink; and 

7 (ii) that, as of March 13, 2020, owns 

8 or operates (together with any affiliated 

9 business) not more than 20 locations, re10 gardless of whether those locations do 

11 business under the same or multiple 

12 names; 

13 (B) means an entity that is located in an 

14 airport terminal and that, as of March 13, 

15 2020, sold any food and beverage, if, as of 

16 March 13, 2020, the entity owns or operates 

17 (together with any affiliated business) not more 

18 than 20 locations, regardless of whether those 

19 locations do business under the same or mul20 tiple names; and 

21 (C) does not include an entity described in 

22 subparagraph (A) or (B) that is part of a State 

23 or local government facility, not including an 

24 airport. 

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1 (4) FUND.—The term ‘‘Fund’’ means the Res2 taurant Revitalization Fund established under sub3 section (c). 

4 (5) IMMEDIATE FAMILY MEMBER.—With re5 spect to an individual, the term ‘‘immediate family 

6 member’’ means any parent or child of the indi7 vidual. 

8 (6) PAYROLL COSTS.—The term ‘‘payroll costs’’ 

9 has the meaning given the term in section 

10 7(a)(36)(A) of the Small Business Act (15 U.S.C. 

11 636(a)(36)(A)). 

12 (7) SECRETARY.—The term ‘‘Secretary’’ means 

13 the Secretary of the Treasury. 

14 (c) ESTABLISHMENT OF A RESTAURANT REVITAL15 IZATION FUND.— 

16 (1) IN GENERAL.—There is established in the 

17 Treasury of the United States a fund to be known 

18 as the Restaurant Revitalization Fund. 

19 (2) APPROPRIATIONS.— 

20 (A) IN GENERAL.—There is appropriated 

21 to the Fund, out of amounts in the Treasury 

22 not otherwise appropriated, $120,000,000,000, 

23 to remain available until June 30, 2021. 

24 (B) REMAINDER TO TREASURY.—Any 

25 amounts remaining in the Fund after June 30, 

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1 2021, shall be deposited in the general fund of 

2 the Treasury. 

3 (3) USE OF FUNDS.—The Secretary shall use 

4 amounts in the Fund to make grants described in 

5 section subsection (d). 

6 (d) RESTAURANT REVITALIZATION GRANTS.— 

7 (1) IN GENERAL.—The Secretary shall award 

8 grants to eligible entities in the order in which the 

9 application is received by the Secretary. 

10 (2) REGISTRATION.—The Secretary shall reg11 ister each grant awarded under this subsection using 

12 the employer identification number of the eligible en13 tity. 

14 (3) APPLICATION.— 

15 (A) IN GENERAL.—An eligible entity desir16 ing a grant under this subsection shall submit 

17 to the Secretary an application at such time, in 

18 such manner, and containing such information 

19 as the Secretary may require. 

20 (B) CERTIFICATION.—An eligible entity 

21 applying for a grant under this subsection shall 

22 make a good faith certification— 

23 (i) that the uncertainty of current eco24 nomic conditions makes necessary the 

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1 grant request to support the ongoing oper2 ations of the eligible entity; 

3 (ii) acknowledging that funds will be 

4 used to retain workers, for payroll costs, 

5 and for other allowable expenses described 

6 in paragraph (6) and not for any other 

7 purposes; 

8 (iii) that the eligible entity does not 

9 have an application pending for a grant 

10 under subsection (a)(36) or (b)(2) of sec11 tion 7 of the Small Business Act (15 

12 U.S.C. 636) for the same purpose and that 

13 is duplicative of amounts applied for or re14 ceived under this section; and 

15 (iv) during the covered period, that 

16 the eligible entity has not received amounts 

17 under subsection (a)(36) or (b)(2) of sec18 tion 7 of the Small Business Act (15 

19 U.S.C. 636) for the same purpose and that 

20 is duplicative of amounts applied for or re21 ceived under this section. 

22 (C) HOLD HARMLESS.—An eligible entity 

23 applying for a grant under this subsection shall 

24 not be ineligible for a grant if the eligible entity 

25 is able to document— 

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1 (i) an inability to rehire individuals 

2 who were employees of the eligible entity 

3 on February 15, 2020; and 

4 (ii) an inability to hire similarly quali5 fied employees for unfilled positions on or 

6 before June 30, 2021. 

7 (4) PRIORITY IN AWARDING GRANTS.—During 

8 the initial 14-day period in which the Secretary 

9 awards grants under this subsection, the Secretary 

10 shall— 

11 (A) prioritize awarding grants to 

12 marginalized and underrepresented commu13 nities, with a focus on women-, veteran-, and 

14 minority-owned, and women-, veteran-, and mi15 nority-operated eligible entities; and 

16 (B) only award grants to eligible entities 

17 with annual revenues of less than $1,500,000. 

18 (5) GRANT AMOUNT.— 

19 (A) DETERMINATION OF GRANT

20 AMOUNT.— 

21 (i) IN GENERAL.—The amount of a 

22 grant made to an eligible entity under this 

23 subsection shall be equal to— 

24 (I) the sum of the revenues or es25 timated revenues of the eligible entity 

185 

•S 4818 IS

1 during each calendar quarter in 2020 

2 subtracted from the sum of such reve3 nues during the same calendar quar4 ter in 2019, if such sum is greater 

5 than zero; and 

6 (II) if applicable, the additional 

7 amount required to pay for sick leave 

8 described under clause (ii). 

9 (ii) SICK LEAVE.—An eligible entity 

10 applying for a grant under this section— 

11 (I) may request an additional 

12 grant amount based on the amount 

13 required to provide 10 days of paid 

14 sick leave to each employee of the en15 tity to— 

16 (aa) care for themselves or 

17 an immediate family member who 

18 is ill; or 

19 (bb) provide care for chil20 dren when schools or childcare 

21 providers are shut down due to 

22 COVID–19; and 

23 (II) shall, if provided a grant 

24 under this section that includes an ad25 ditional amount for sick leave deVerDate Sep 11 2014 20:21 Oct 31, 2020 Jkt 019200 PO 00000 Frm 00185 Fmt 6652 Sfmt 6201 E:\BILLS\S4818.IS S4818
186 

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1 scribed under subclause (I), provide 

2 each employee of the entity with such 

3 10 days of paid sick leave. 

4 (iii) VERIFICATION.—An eligible enti5 ty shall submit to the Secretary such rev6 enue verification documentation as the 

7 Secretary may require to determine the 

8 amount of a grant under clause (i). 

9 (iv) REPAYMENT.—Any amount of a 

10 grant made under this subsection to an eli11 gible entity based on estimated revenues in 

12 a calendar quarter in 2020 that is greater 

13 than the actual revenues of the eligible en14 tity during that calendar quarter shall be 

15 converted to a loan that has— 

16 (I) an interest rate of 1 percent; 

17 and 

18 (II) a maturity date of 10 years 

19 beginning on January 1, 2021. 

20 (B) REDUCTION BASED ON PPP FORGIVE21 NESS OR EIDL EMERGENCY GRANT.—If an eligi22 ble entity has, at the time of application for a 

23 grant under this subsection, received an ad24 vance under section 1110(e) of the CARES Act 

25 (15 U.S.C. 9009(e)) or loan forgiveness under 

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•S 4818 IS

1 section 1106 of such Act (15 U.S.C. 9005) re2 lated to expenses incurred during the covered 

3 period, the maximum amount of a grant award4 ed to the eligible entity under this subsection 

5 shall be reduced by the amount of funds ex6 pended by or forgiven for the eligible entity for 

7 those expenses using amounts received under 

8 such section 1110(e) or forgiven under such 

9 section 1106. 

10 (C) LIMITATION.—An eligible entity may 

11 not receive more than 1 grant under this sub12 section. 

13 (D) AGGREGATE MAXIMUM AMOUNT.—The 

14 aggregate amount of grants made to an eligible 

15 entity and any affiliate businesses of the eligible 

16 entity under this section shall not exceed 

17 $10,000,000. 

18 (6) USE OF FUNDS.— 

19 (A) IN GENERAL.—During the covered pe20 riod, an eligible entity that receives a grant 

21 under this subsection may use the grant funds 

22 for— 

23 (i) payroll costs; 

24 (ii) payments of principal or interest 

25 on any mortgage obligation; 

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•S 4818 IS

1 (iii) rent payments, including rent 

2 under a lease agreement; 

3 (iv) utilities; 

4 (v) maintenance expenses, including— 

5 (I) construction to accommodate 

6 outdoor seating; and 

7 (II) walls, floors, deck surfaces, 

8 furniture, fixtures, and equipment; 

9 (vi) supplies, including protective 

10 equipment and cleaning materials; 

11 (vii) food, beverage, and operational 

12 expenses that are within the scope of the 

13 normal business practice of the eligible en14 tity before the covered period; 

15 (viii) debt obligations to suppliers that 

16 were incurred before the covered period; 

17 (ix) costs associated with providing 

18 employees with 10 days of sick leave, as 

19 described in paragraph (5)(A)(ii); and 

20 (x) any other expenses that the Sec21 retary determines to be essential to main22 taining the eligible entity. 

23 (B) RETURNING FUNDS.—If an eligible en24 tity that receives a grant under this subsection 

25 permanently ceases operations on or before 

189 

•S 4818 IS

1 June 30, 2021, the eligible entity shall return 

2 to the Treasury any funds that the eligible enti3 ty did not use for the allowable expenses under 

4 subparagraph (A). 

5 (C) CONVERSION TO LOAN.—Any grant 

6 amounts received by an eligible entity under 

7 this subsection that are unused after June 30, 

8 2021, shall be immediately converted to a loan 

9 with— 

10 (i) an interest rate of 1 percent; and 

11 (ii) a maturity date of 10 years. 

12 (7) REGULATIONS.—Not later than 15 days 

13 after the date of enactment of this Act, the Sec14 retary shall issue regulations to carry out this sub15 section without regard to the notice and comment 

16 requirements under section 553 of title 5, United 

17 States Code. 

18 (8) APPROPRIATIONS FOR STAFFING AND AD19 MINISTRATIVE EXPENSES.— 

20 (A) IN GENERAL.—Of the amounts pro21 vided by subsection (c)(2)(A), $300,000,000 

22 shall be for staffing and administrative ex23 penses related to administering grants awarded 

24 under this subsection. 

190 

•S 4818 IS

1 (B) SET ASIDE.—Of amounts provided 

2 under subparagraph (A), $60,000,000 shall be 

3 allocated for outreach to traditionally 

4 marginalized and underrepresented commu5 nities, with a focus on women, veteran, and mi6 nority-owned and operated eligible entities, in7 cluding the creation of a resource center tar8 geted toward these communities. 

9 (e) LIMITATION WITH RESPECT TO PRIVATE

10 FUNDS.— 

11 (1) IN GENERAL.—No amounts received under 

12 this section may be directly or indirectly used to pay 

13 distributions, dividends, consulting fees, advisory 

14 fees, interest payments, or any other fees, expenses, 

15 or charges to— 

16 (A) a person registered as an investment 

17 adviser under the Investment Advisers Act of 

18 1940 (15 U.S.C. 80b–1 et seq.) who advises a 

19 private fund; 

20 (B) any affiliate of such adviser; 

21 (C) any executive of such adviser or affil22 iate; or 

23 (D) any employee, consultant, or other per24 son with a contractual relationship to provide 

191 

•S 4818 IS

1 services for or on behalf of such adviser or affil2 iate. 

3 (2) ANTI-EVASION.—No company in which a 

4 private fund holds an ownership interest that has, 

5 directly or indirectly, received amounts under this 

6 title may pay any distributions, dividends, consulting 

7 fees, advisory fees, interest payments, or any other 

8 fees, expenses, or charges in excess of 10 percent of 

9 such company’s net operating profits for the cal10 endar year ending December 31, 2020 (and for each 

11 successive year until the covered period has ended 

12 and all loans created under this section have been 

13 repaid), to— 

14 (A) a person registered as an investment 

15 adviser under the Investment Advisers Act of 

16 1940 (15 U.S.C. 80b–1 et seq.) who advises a 

17 private fund; 

18 (B) any affiliate of such adviser; 

19 (C) any executive of such adviser or affil20 iate; or 

21 (D) any employee, consultant, or other per22 son with a contractual relationship to provide 

23 services for or on behalf of such adviser or affil24 iate. 

25 (3) DEFINITIONS.—In this section: 

192 

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1 (A) AFFILIATE.— 

2 (i) IN GENERAL.—The term ‘‘affil3 iate’’ means, with respect to a person, any 

4 other person directly or indirectly control5 ling, controlled by, or under direct or indi6 rect common control with such person. 

7 (ii) CONTROL.—For purposes of 

8 clause (i), a person shall be deemed to con9 trol another person if such person pos10 sesses, directly or indirectly, the power to 

11 direct or cause the direction of the man12 agement and policies of such other person, 

13 whether through the ownership of voting 

14 securities, by contract, or otherwise. 

15 (B) EXECUTIVE.—The term ‘‘executive’’ 

16 means— 

17 (i) any individual who serves an exec18 utive or director of a person, including the 

19 principal executive officer, principal finan20 cial officer, comptroller or principal ac21 counting officer; and 

22 (ii) an executive officer, as defined in 

23 section 230.405 of title 17, Code of Fed24 eral Regulations, or any successor regula25 tion. 

193 

•S 4818 IS

1 (C) PRIVATE FUND.—The term ‘‘private 

2 fund’’ means an issuer that would be an invest3 ment company, as defined in section 3 of the 

4 Investment Company Act of 1940 (15 U.S.C. 

5 80a–3), but for paragraph (1) or (7) of section 

6 3(c) of that Act. 

7 (f) DEMOGRAPHIC DATA AND TRANSPARENCY.— 

8 (1) DEMOGRAPHIC DATA.—In establishing an 

9 application process for carrying out this section, the 

10 Secretary shall include a voluntary request for cer11 tain demographic data with respect to the majority 

12 ownership of eligible entities, including race, eth13 nicity, gender, and veteran-status. 

14 (2) MONTHLY REPORTS.—Not later than the 

15 end of the first month in which initial grants are 

16 disbursed under this section, and every month there17 after until the date on which the last grant has been 

18 disbursed under this section, the Secretary shall sub19 mit to the Committee on Banking, Housing, and 

20 Urban Affairs of the Senate and the Committee on 

21 Financial Services of the House of Representatives 

22 a report providing— 

23 (A) the number and dollar amount of 

24 grants approved for or disbursed to all eligible 

25 entities, including a list of eligible entities with 

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•S 4818 IS

1 the grant amount received by the eligible entity; 

2 and 

3 (B) a breakout of the number and dollar 

4 of grants by State, congressional district, demo5 graphics (including race, ethnicity, gender, and 

6 veteran-status), and business type. 

7 (3) QUARTERLY REPORTS.—Beginning on Jan8 uary 1, 2021, and every subsequent quarter until 

9 the last grant that was converted to a loan under 

10 this section is repaid, the Secretary shall submit to 

11 the Committee on Banking, Housing, and Urban Af12 fairs of the Senate and the Committee on Financial 

13 Services of the House of Representatives a report 

14 on— 

15 (A) the number and dollar amount of 

16 grants approved for or disbursed to all eligible 

17 entities, including a breakout of grants by 

18 State, congressional district, demographics (in19 cluding race, ethnicity, gender, and veteran-sta20 tus), and business type; and 

21 (B) the number and dollar amount of 

22 grants that converted to loans under this sec23 tion, including a breakout of outstanding loans 

24 by State, congressional district, demographics 

195 

•S 4818 IS

1 (including race, ethnicity, gender, and veteran2 status), and business type. 

3 (4) DATA TRANSPARENCY.—Not later than 30 

4 days after the date of enactment of this Act, the 

5 Secretary shall make available on a publicly available 

6 website in a standardized and downloadable format, 

7 and update on a monthly basis, any data contained 

8 in a report submitted under this section. 

9 TITLE VII—MINORITY BUSINESS 

10 DEVELOPMENT AGENCY AND 

11 COMMUNITY DEVELOPMENT 

12 FINANCIAL INSTITUTIONS 

13 FUND 

14 SEC. 701. DEFINITIONS. 

15 In this title: 

16 (1) AGENCY.—The term ‘‘Agency’’ means the 

17 Minority Business Development Agency of the De18 partment of Commerce. 

19 (2) ASSISTANT SECRETARY.—The term ‘‘Assist20 ant Secretary’’ means the Assistant Secretary of 

21 Commerce for Minority Business Development who 

22 is appointed as described in section 714(b) to ad23 minister this subtitle. 

196 

•S 4818 IS

1 (3) FEDERAL AGENCY.—The term ‘‘Federal 

2 agency’’ has the meaning given the term ‘‘agency’’ 

3 in section 551 of title 5, United States Code. 

4 (4) FEDERALLY RECOGNIZED AREA OF ECO5 NOMIC DISTRESS.—The term ‘‘federally recognized 

6 area of economic distress’’ means— 

7 (A) a HUBZone, as that term is defined in 

8 section 31(b) of the Small Business Act (15 

9 U.S.C. 657a(b)); 

10 (B) an area that— 

11 (i) has been designated as— 

12 (I) an empowerment zone under 

13 section 1391 of the Internal Revenue 

14 Code of 1986; or 

15 (II) a Promise Zone by the Sec16 retary of Housing and Urban Devel17 opment; or 

18 (ii) is a low or moderate income area, 

19 as determined by the Bureau of the Cen20 sus; 

21 (C) a qualified opportunity zone, as that 

22 term is defined in section 1400Z–1 of the Inter23 nal Revenue Code of 1986; or 

24 (D) any other political subdivision or unin25 corporated area of a State determined by the 

197 

•S 4818 IS

1 Assistant Secretary to be an area of economic 

2 distress. 

3 (5) INDIAN TRIBE.— 

4 (A) IN GENERAL.—Subject to subpara5 graph (B), the term ‘‘Indian Tribe’’ has the 

6 meaning given the term ‘‘Indian tribe’’ in sec7 tion 4 of the Indian Self-Determination and 

8 Education Assistance Act (25 U.S.C. 5304). 

9 (B) NATIVE HAWAIIAN ORGANIZATION.— 

10 The term ‘‘Indian Tribe’’ includes a Native Ha11 waiian organization. 

12 (6) INSTITUTION OF HIGHER EDUCATION.—The 

13 term ‘‘institution of higher education’’ has the 

14 meaning given the term in section 101 of the Higher 

15 Education Act of 1965 (20 U.S.C. 1001). 

16 (7) MINORITY BUSINESS ENTERPRISE.—The 

17 term ‘‘minority business enterprise’’ means a for18 profit business enterprise— 

19 (A) that is not less than 51 percent-owned 

20 by 1 or more socially disadvantaged individuals; 

21 and 

22 (B) the management and daily business 

23 operations of which are controlled by 1 or more 

24 socially disadvantaged individuals. 

198 

•S 4818 IS

1 (8) PRIVATE SECTOR ENTITY.—The term ‘‘pri2 vate sector entity’’— 

3 (A) means an entity that is not a public 

4 sector entity; and 

5 (B) does not include— 

6 (i) the Federal Government; 

7 (ii) any Federal agency; or 

8 (iii) any instrumentality of the Fed9 eral Government. 

10 (9) PUBLIC SECTOR ENTITY.—The term ‘‘public 

11 sector entity’’ means— 

12 (A) a State; 

13 (B) an agency of a State; 

14 (C) a political subdivision of a State; or 

15 (D) an agency of a political subdivision of 

16 a State. 

17 (10) SECRETARY.—The term ‘‘Secretary’’ 

18 means the Secretary of Commerce. 

19 (11) SOCIALLY DISADVANTAGED INDIVIDUAL.— 

20 (A) IN GENERAL.—The term ‘‘socially dis21 advantaged individual’’ means an individual 

22 who has been subjected to racial or ethnic prej23 udice or cultural bias because of the identity of 

24 the individual as a member of a group, without 

199 

•S 4818 IS

1 regard to any individual quality of the indi2 vidual that is unrelated to that identity. 

3 (B) PRESUMPTION.—In carrying out this 

4 subtitle, the Assistant Secretary shall presume 

5 that the term ‘‘socially disadvantaged indi6 vidual’’ includes any individual who is— 

7 (i) Black or African American; 

8 (ii) Hispanic or Latino; 

9 (iii) American Indian or Alaska Na10 tive; 

11 (iv) Asian; 

12 (v) Native Hawaiian or other Pacific 

13 Islander; or 

14 (vi) a member of a group that the Mi15 nority Business Development Agency de16 termines under part 1400 of title 15, Code 

17 of Federal Regulations, as in effect on No18 vember 23, 1984, is a socially disadvan19 taged group eligible to receive assistance. 

20 (12) STATE.—The term ‘‘State’’ means— 

21 (A) each of the States of the United 

22 States; 

23 (B) the District of Columbia; 

24 (C) the Commonwealth of Puerto Rico; 

25 (D) the United States Virgin Islands; 

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•S 4818 IS

1 (E) Guam; 

2 (F) American Samoa; 

3 (G) the Commonwealth of the Northern 

4 Mariana Islands; and 

5 (H) each Indian Tribe. 

6 Subtitle A—Codification of the Mi7 nority Business Development 

8 Agency 

9 SEC. 711. SHORT TITLE. 

10 This subtitle may be cited as the ‘‘Minority Business 

11 Resiliency Act of 2020’’. 

12 SEC. 712. FINDINGS AND PURPOSES. 

13 (a) FINDINGS.—Congress finds the following: 

14 (1) During times of economic downturn or re15 cession, communities of color, and businesses within 

16 those communities, are generally more adversely af17 fected, which requires an expansion of the ability of 

18 the Federal Government to infuse resources into 

19 those communities. 

20 (2) Despite the growth in the number of minor21 ity business enterprises, gaps remain with respect to 

22 key metrics for those enterprises, such as access to 

23 capital, revenue, number of employees, and survival 

24 rate. Specifically— 

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•S 4818 IS

1 (A) according to the Department of Com2 merce, minority business enterprises are 2 to 3 

3 times more likely to be denied loans than non4 minority business enterprises; 

5 (B) according to the Bureau of the Cen6 sus, the average non-minority business enter7 prise reports receipts that are more than 3 

8 times higher than receipts reported by the aver9 age minority business enterprise; and 

10 (C) according to the Kauffman Founda11 tion— 

12 (i) minority business enterprises are 

1 13 ⁄2 as likely to employ individuals, as com14 pared with non-minority business enter15 prises; and 

16 (ii) if minorities started and owned 

17 businesses at the same rate as non-minori18 ties, the United States economy would 

19 have more than 1,000,000 additional em20 ployer businesses and more than 9,500,000 

21 additional jobs. 

22 (3) Because of the conditions described in para23 graph (2), it is in the interest of the United States 

24 and the economy of the United States to expediVerDate Sep 11 2014 20:21 Oct 31, 2020 Jkt 019200 PO 00000 Frm 00201 Fmt 6652 Sfmt 6201 E:\BILLS\S4818.IS S4818
202 

•S 4818 IS

1 tiously ameliorate the disparities that minority busi2 ness enterprises experience. 

3 (4) Many individuals who own minority busi4 ness enterprises are socially disadvantaged because 

5 those individuals identify as members of certain 

6 groups that have suffered the effects of discrimina7 tory practices or similar circumstances over which 

8 those individuals have no control, including individ9 uals who are— 

10 (A) Black or African American; 

11 (B) Hispanic or Latino; 

12 (C) American Indian or Alaska Native; 

13 (D) Asian; and 

14 (E) Native Hawaiian or other Pacific Is15 lander. 

16 (5) Discriminatory practices and similar cir17 cumstances described in paragraph (4) are a signifi18 cant determinant of overall economic disadvantage 

19 in the United States, which is evident in the per20 sistent racial wealth gap in the United States. 

21 (6) While other Federal agencies focus only on 

22 small businesses and businesses that represent a 

23 broader demographic than solely minority business 

24 enterprises, the Agency focuses exclusively on— 

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•S 4818 IS

1 (A) the unique needs of minority business 

2 enterprises; and 

3 (B) enhancing the capacity of minority 

4 business enterprises. 

5 (b) PURPOSES.—The purposes of this subtitle are 

6 to— 

7 (1) require the Agency to promote and admin8 ister programs in the public and private sectors to 

9 assist the development of minority business enter10 prises; and 

11 (2) achieve the development described in para12 graph (1) by authorizing the Assistant Secretary to 

13 carry out programs that will result in increased ac14 cess to capital, management, and technology for mi15 nority business enterprises. 

16 SEC. 713. MINORITY BUSINESS DEVELOPMENT AGENCY. 

17 (a) IN GENERAL.—There is within the Department 

18 of Commerce the Minority Business Development Agency. 

19 (b) ASSISTANT SECRETARY.— 

20 (1) APPOINTMENT AND DUTIES.—The Agency 

21 shall be headed by an Assistant Secretary of Com22 merce for Minority Business Development, who shall 

23 be— 

24 (A) appointed by the President, by and 

25 with the advice and consent of the Senate; and 

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•S 4818 IS

1 (B) except as otherwise expressly provided, 

2 responsible for the administration of this sub3 title. 

4 (2) COMPENSATION.—The Assistant Secretary 

5 shall be compensated at an annual rate of basic pay 

6 prescribed for level IV of the Executive Schedule 

7 under section 5315 of title 5, United States Code. 

8 (c) REPORT TO CONGRESS.—Not later than 120 days 

9 after the date of enactment of this Act, the Secretary shall 

10 submit to Congress a report that describes— 

11 (1) the organizational structure of the Agency; 

12 (2) the organizational position of the Agency 

13 within the Department of Commerce; and 

14 (3) a description of how the Agency shall func15 tion in relation to the operations carried out by each 

16 other component of the Department of Commerce. 

17 (d) OFFICE OF BUSINESS CENTERS.— 

18 (1) ESTABLISHMENT.—There is established 

19 within the Agency an Office of Business Centers. 

20 (2) DIRECTOR.—The Office of Business Cen21 ters shall be administered by a Director, who shall 

22 be appointed by the Assistant Secretary. 

23 (e) OFFICES OF THE AGENCY.— 

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1 (1) IN GENERAL.—The Assistant Secretary 

2 shall establish such other offices within the Agency 

3 as are necessary to carry out this subtitle. 

4 (2) REGIONAL OFFICES.— 

5 (A) IN GENERAL.—In order to carry out 

6 this subtitle, the Assistant Secretary may estab7 lish a regional office of the Agency for each of 

8 the regions of the United States, as determined 

9 by the Assistant Secretary. 

10 (B) DUTIES.—Each regional office estab11 lished under subparagraph (A) shall expand the 

12 reach of the Agency and enable the Federal 

13 Government to better serve the needs of minor14 ity business enterprises in the region served by 

15 the office, including by— 

16 (i) understanding and participating in 

17 the business environment of that region; 

18 (ii) working with— 

19 (I) Centers, as that term is de20 fined in section 732, that are located 

21 in that region; and 

22 (II) resource and lending part23 ners of the Small Business Adminis24 tration that are located in that region; 

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1 (iii) being aware of business retention 

2 or expansion programs specific to that re3 gion; 

4 (iv) seeking out opportunities to col5 laborate with regional public and private 

6 programs that focus on minority business 

7 enterprises; and 

8 (v) promoting business continuity and 

9 preparedness. 

10 PART I—EXISTING INITIATIVES 

11 Subpart A—Market Development, Research, and 

12 Information 

13 SEC. 721. PRIVATE SECTOR DEVELOPMENT. 

14 The Assistant Secretary shall, whenever the Assistant 

15 Secretary determines such action is necessary or appro16 priate— 

17 (1) assist minority business enterprises to pene18 trate domestic and foreign markets by making avail19 able to those business enterprises, either directly or 

20 in cooperation with private sector entities, including 

21 community-based organizations and national non22 profit organizations— 

23 (A) resources relating to management; 

24 (B) technological assistance; 

25 (C) financial and marketing services; and 

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1 (D) services relating to workforce develop2 ment; 

3 (2) encourage minority business enterprises to 

4 establish joint ventures and projects— 

5 (A) with other minority business enter6 prises; or 

7 (B) in cooperation with public sector enti8 ties or private sector entities, including commu9 nity-based organizations and national nonprofit 

10 organizations, to increase the share of any mar11 ket activity being performed by minority busi12 ness enterprises; and 

13 (3) facilitate the efforts of private sector enti14 ties and Federal agencies to advance the growth of 

15 minority business enterprises. 

16 SEC. 722. PUBLIC SECTOR DEVELOPMENT. 

17 The Assistant Secretary shall, whenever the Assistant 

18 Secretary determines such action is necessary or appro19 priate— 

20 (1) consult and cooperate with public sector en21 tities for the purpose of leveraging resources avail22 able in the jurisdictions of those public sector enti23 ties to promote the position of minority business en24 terprises in the local economies of those public sector 

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1 entities, including by assisting public sector entities 

2 to establish or enhance— 

3 (A) programs to procure goods and serv4 ices through minority business enterprises and 

5 goals for that procurement; 

6 (B) programs offering assistance relating 

7 to— 

8 (i) management; 

9 (ii) technology; 

10 (iii) financing; 

11 (iv) marketing; and 

12 (v) workforce development; and 

13 (C) informational programs designed to in14 form minority business enterprises located in 

15 the jurisdictions of those public sector entities 

16 about the availability of programs described in 

17 this section; 

18 (2) meet with leaders and officials of public sec19 tor entities for the purpose of recommending and 

20 promoting local administrative and legislative initia21 tives needed to advance the position of minority 

22 business enterprises in the local economies of those 

23 public sector entities; and 

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1 (3) facilitate the efforts of public sector entities 

2 and Federal agencies to advance the growth of mi3 nority business enterprises. 

4 SEC. 723. RESEARCH AND INFORMATION. 

5 (a) IN GENERAL.—In order to achieve the purposes 

6 of this subtitle, the Assistant Secretary— 

7 (1) shall— 

8 (A) collect and analyze data, including 

9 data relating to the causes of the success or 

10 failure of minority business enterprises; 

11 (B) perform evaluations of programs car12 ried out by Federal agencies with an emphasis 

13 on increasing coordination between Federal 

14 agencies with respect to the development of mi15 nority business enterprises; and 

16 (C) conduct research, studies, and surveys 

17 of— 

18 (i) economic conditions generally in 

19 the United States; and 

20 (ii) how the conditions described in 

21 clause (i) particularly affect the develop22 ment of minority business enterprises; and 

23 (2) may, at the request of a public sector entity 

24 or a private sector entity, perform an evaluation of 

25 programs carried out by the entity that are designed 

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1 to assist the development of minority business enter2 prises. 

3 (b) INFORMATION CLEARINGHOUSE.—The Assistant 

4 Secretary shall— 

5 (1) establish and maintain an information clear6 inghouse for the collection and dissemination of de7 mographic, economic, financial, managerial, and 

8 technical data relating to minority business enter9 prises; and 

10 (2) take such steps as the Assistant Secretary 

11 may determine to be necessary and desirable to 

12 search for, collect, classify, coordinate, integrate, 

13 record, and catalog the data described in paragraph 

14 (1). 

15 Subpart B—Minority Business Development Center 

16 Program 

17 SEC. 731. PURPOSE. 

18 The purpose of the MBDC Program shall be to create 

19 a national network of public-private partnerships that— 

20 (1) assist minority business enterprises to— 

21 (A) access capital and contracts; and 

22 (B) create and maintain jobs; 

23 (2) provide counseling and mentoring to minor24 ity business enterprises; and 

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1 (3) facilitate the growth of minority business 

2 enterprises by promoting trade. 

3 SEC. 732. DEFINITIONS. 

4 In this subpart: 

5 (1) CENTER.—The term ‘‘Center’’ means an el6 igible entity that enters into an MBDC agreement 

7 with the Assistant Secretary. 

8 (2) ELIGIBLE ENTITY.—Except as otherwise ex9 pressly provided, the term ‘‘eligible entity’’— 

10 (A) means— 

11 (i) a private sector entity; or 

12 (ii) a public sector entity; and 

13 (B) includes an institution of higher edu14 cation. 

15 (3) MBDC AGREEMENT.—The term ‘‘MBDC 

16 agreement’’ means a collaborative agreement entered 

17 into between the Assistant Secretary and a Center 

18 under the MBDC Program. 

19 (4) MBDC PROGRAM.—The term ‘‘MBDC Pro20 gram’’ means the program established under section 

21 733. 

22 SEC. 733. ESTABLISHMENT. 

23 (a) IN GENERAL.—Subject to subsection (b), there 

24 is established in the Agency a program— 

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1 (1) that shall be known as the Minority Busi2 ness Development Centers Program; 

3 (2) that shall be separate and distinct from the 

4 efforts of the Assistant Secretary under section 721; 

5 and 

6 (3) under which the Assistant Secretary shall 

7 enter into cooperative agreements with eligible enti8 ties under which, in accordance with section 734— 

9 (A) the eligible entities shall provide tech10 nical assistance and business development serv11 ices to minority business enterprises; and 

12 (B) the Assistant Secretary shall provide 

13 financial assistance to the eligible entities to 

14 carry out the activities described in subpara15 graph (A). 

16 (b) COVERAGE.—The Assistant Secretary shall take 

17 all necessary actions to ensure that the MBDC Program, 

18 in accordance with section 734, offers the services de19 scribed in subsection (a)(3)(A) in all regions of the United 

20 States. 

21 (c) SCOPE OF AUTHORITY.—The authority of the As22 sistant Secretary to enter into MBDC agreements shall 

23 be effective each fiscal year only to the extent that 

24 amounts are made available to the Assistant Secretary 

25 under applicable appropriations Acts. 

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1 SEC. 734. COOPERATIVE AGREEMENTS. 

2 (a) REQUIREMENTS.—A Center shall, using financial 

3 assistance awarded to the Center under an MBDC agree4 ment— 

5 (1) provide to minority business enterprises 

6 programs and services determined to be appropriate 

7 by the Assistant Secretary, which— 

8 (A) shall include referral services to meet 

9 the needs of minority business enterprises; and 

10 (B) may include programs and services to 

11 accomplish the goals described in section 

12 721(1); 

13 (2) develop, cultivate, and maintain a network 

14 of strategic partnerships with organizations that fos15 ter access by minority business enterprises to eco16 nomic markets or contracts; 

17 (3) continue to upgrade and modify the services 

18 provided by the Center, as necessary, in order to 

19 meet the changing and evolving needs of the busi20 ness community; 

21 (4) collaborate with other Centers; and 

22 (5) in providing programs and services under 

23 the MBDC agreement— 

24 (A) operate on a fee-for-service basis; and 

25 (B) generate income through the collection 

26 of— 

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1 (i) client fees; 

2 (ii) membership fees; 

3 (iii) success fees; and 

4 (iv) any other appropriate fees pro5 posed by the Center in the application sub6 mitted by the Center for the MBDC agree7 ment. 

8 (b) TERM.—Subject to subsection (g), the term of an 

9 MBDC agreement shall be 3 years. 

10 (c) FINANCIAL ASSISTANCE.— 

11 (1) MINIMUM AMOUNT.—Subject to paragraph 

12 (2), the amount of financial assistance provided by 

13 the Assistant Secretary under an MBDC agreement 

14 shall be not less than $250,000 for the term of the 

15 MBDC agreement. 

16 (2) ADDITIONAL AMOUNTS.—In determining 

17 whether to award financial assistance under an 

18 MBDC agreement to a Center in an amount greater 

19 than $250,000, the Assistant Secretary shall take 

20 into consideration the cost of living and the size of 

21 the population in the area in which the Center is lo22 cated. 

23 (3) MATCHING REQUIREMENT.— 

24 (A) IN GENERAL.—A Center shall match 

not less than 1 25 ⁄3 of the amount of the financial 

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1 assistance awarded to the Center under an 

2 MBDC agreement. 

3 (B) FORM OF FUNDS.—A Center may 

4 meet the matching requirement under subpara5 graph (A) using cash or in-kind contributions, 

6 without regard to whether the contribution is 

7 made by a third party. 

8 (4) USE OF FINANCIAL ASSISTANCE AND PRO9 GRAM INCOME.—A Center shall use— 

10 (A) all financial assistance awarded to the 

11 Center under an MBDC agreement to carry out 

12 the requirements under subsection (a); and 

13 (B) all income that the Center generates in 

14 carrying out the requirements under subsection 

15 (a)— 

16 (i) to meet the matching requirement 

17 under paragraph (3) of this subsection; 

18 and 

19 (ii) if the Center meets the matching 

20 requirement under paragraph (3) of this 

21 subsection, to carry out the requirements 

22 under subsection (a). 

23 (d) CRITERIA FOR SELECTION.—The Assistant Sec24 retary shall— 

25 (1) establish— 

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1 (A) criteria that— 

2 (i) the Assistant Secretary shall use in 

3 determining whether to enter into an 

4 MBDC agreement with an eligible entity; 

5 and 

6 (ii) may include criteria relating to 

7 whether an eligible entity is located in— 

8 (I) an area, the population of 

9 which is composed of not less than 51 

10 percent socially disadvantaged individ11 uals; 

12 (II) a federally recognized area of 

13 economic distress; or 

14 (III) a State that is underserved 

15 with respect to the MBDC program, 

16 as defined by the Assistant Secretary; 

17 and 

18 (B) standards relating to the consideration 

19 given to the criteria established under subpara20 graph (A); and 

21 (2) make the criteria and standards established 

22 under paragraph (1) publicly available, including— 

23 (A) on the website of the Agency; and 

24 (B) in each solicitation for applications for 

25 MBDC agreements. 

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1 (e) APPLICATIONS.—An eligible entity desiring to 

2 enter into an MBDC agreement shall submit to the Assist3 ant Secretary an application that includes— 

4 (1) a statement of— 

5 (A) how the eligible entity will meet the re6 quirements under subsection (a); and 

7 (B) any experience of the eligible entity 

8 in— 

9 (i) assisting minority business enter10 prises to— 

11 (I) obtain— 

12 (aa) large-scale contracts or 

13 procurements; or 

14 (bb) financing; 

15 (II) access established supply 

16 chains; and 

17 (III) engage in— 

18 (aa) joint ventures, teaming 

19 arrangements, and mergers and 

20 acquisitions; or 

21 (bb) large-scale transactions 

22 in global markets; and 

23 (ii) advocating for minority business 

24 enterprises; and 

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1 (2) the budget and corresponding budget nar2 rative that the eligible entity will use in carrying out 

3 the requirements under subsection (a) during the 

4 term of the MBDC agreement. 

5 (f) NOTIFICATION.—If the Assistant Secretary 

6 grants an application of an eligible entity submitted under 

7 subsection (e), the Assistant Secretary shall notify the eli8 gible entity that the application has been granted not later 

9 than 150 days after the last day on which an application 

10 may be submitted under that subsection. 

11 (g) PROGRAM EXAMINATION; ACCREDITATION; EX12 TENSIONS.— 

13 (1) EXAMINATION.—Not later than 180 days 

14 after the date of enactment of this Act, and bienni15 ally thereafter, the Assistant Secretary shall conduct 

16 a programmatic financial examination of each Cen17 ter. 

18 (2) ACCREDITATION.—The Assistant Secretary 

19 may provide financial support, by contract or other20 wise, to an association, not less than 51 percent of 

21 the members of which are Centers, to— 

22 (A) pursue matters of common concern 

23 with respect to Centers; and 

24 (B) develop an accreditation program with 

25 respect to Centers. 

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1 (3) EXTENSIONS.— 

2 (A) IN GENERAL.—The Assistant Sec3 retary may extend the term under subsection 

4 (b) of an MBDC agreement to which a Center 

5 is a party to a term of 5 years, if the Center 

6 consents to the extension. 

7 (B) FINANCIAL ASSISTANCE.—If the As8 sistant Secretary extends the term of an MBDC 

9 agreement under paragraph (1), the Assistant 

10 Secretary shall, in the same manner and 

11 amount in which financial assistance was pro12 vided during the initial term of the MBDC 

13 agreement, provide financial assistance under 

14 the MBDC agreement during the extended term 

15 of the MBDC agreement. 

16 (h) PRIORITY.—In entering into MBDC agreements 

17 under the MBDC Program and extending MBDC agree18 ments under subsection (g)(3), the Assistant Secretary 

19 shall give priority to extending MBDC agreements under 

20 subsection (g)(3). 

21 (i) SUSPENSION, TERMINATION, AND REFUSAL TO

22 EXTEND.— 

23 (1) IN GENERAL.— 

24 (A) IN GENERAL.—The Assistant Sec25 retary may suspend, terminate, or refuse to exVerDate Sep 11 2014 20:21 Oct 31, 2020 Jkt 019200 PO 00000 Frm 00219 Fmt 6652 Sfmt 6201 E:\BILLS\S4818.IS S4818
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1 tend the term of an MBDC agreement on the 

2 basis of the poor performance by a Center in 

3 meeting the performance goals established by 

4 the Secretary under subparagraph (B). 

5 (B) PERFORMANCE GOALS.—The Assistant 

6 Secretary shall establish performance goals by 

7 which to evaluate the performance of a Center 

8 in meeting the requirements under subsection 

9 (a). 

10 (2) NOTICE.—Before suspending, terminating, 

11 or refusing to extend the term of an MBDC agree12 ment under paragraph (1), the Assistant Secretary 

13 shall provide to the relevant Center— 

14 (A) a written notice of the reasons for the 

15 suspension, termination, or refusal; and 

16 (B) an opportunity for a hearing, appeal, 

17 or other administrative proceeding to contest 

18 the suspension, termination, or refusal. 

19 (j) MBDA INVOLVEMENT.—The Assistant Secretary 

20 shall ensure that the Agency is substantially involved in 

21 the activities of Centers in carrying out the requirements 

22 under subsection (a), including by— 

23 (1) providing to each Center training relating to 

24 the MBDC Program; 

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1 (2) requiring that the operator and staff of 

2 each Center— 

3 (A) attend— 

4 (i) a conference with the Agency to 

5 establish the services and programs that 

6 the Center will provide in carrying out the 

7 requirements before the date on which the 

8 Center begins providing those services and 

9 programs; and 

10 (ii) training provided under paragraph 

11 (1); 

12 (B) receive necessary advising relating to 

13 carrying out the requirements under subsection 

14 (a); and 

15 (C) work in coordination and collaboration 

16 with the Assistant Secretary to carry out the 

17 MBDC Program and other programs of the 

18 Agency; 

19 (3) facilitating connections between Centers 

20 and— 

21 (A) Federal agencies other than the Agen22 cy, including the Small Business Administration 

23 and the Economic Development Administration 

24 of the Department of Commerce; and 

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1 (B) other institutions or entities that use 

2 Federal resources, including— 

3 (i) small business development cen4 ters, as that term is defined in section 3(t) 

5 of the Small Business Act (15 U.S.C. 

6 632(t)); 

7 (ii) women’s business centers de8 scribed in section 29 of the Small Business 

9 Act (15 U.S.C. 656); 

10 (iii) eligible entities, as that term is 

11 defined in section 2411 of title 10, United 

12 States Code, that provide services under 

13 the program carried out under chapter 142 

14 of that title; and 

15 (iv) entities participating in the Hol16 lings Manufacturing Extension Partnership 

17 Program established under section 25 of 

18 the National Institute of Standards and 

19 Technology Act (15 U.S.C. 278k); 

20 (4) monitoring projects carried out by each 

21 Center; and 

22 (5) establishing and enforcing administrative 

23 and reporting requirements for each Center to carry 

24 out the requirements under subsection (a). 

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1 (k) REGULATIONS.—The Assistant Secretary shall 

2 issue and publish regulations that establish minimum 

3 standards regarding verification of minority business en4 terprise status for clients of entities operating under the 

5 MBDC Program. 

6 SEC. 735. MINIMIZING DISRUPTIONS TO EXISTING BUSI7 NESS CENTERS PROGRAM. 

8 The Assistant Secretary shall ensure that each coop9 erative agreement entered into under the Business Centers 

10 program of the Agency that is in effect on the day before 

11 the date of enactment of this Act is carried out in a man12 ner that, to the greatest extent practicable, prevents dis13 ruption of any activity carried out under the cooperative 

14 agreement. 

15 SEC. 736. PUBLICITY. 

16 In carrying out the MBDC Program, the Assistant 

17 Secretary shall widely publicize the MBDC Program, in18 cluding— 

19 (1) on the website of the Agency; and 

20 (2) via social media outlets. 

21 SEC. 737. EMERGENCY APPROPRIATIONS. 

22 (a) IN GENERAL.—There is appropriated, out of 

23 amounts in the Treasury not otherwise appropriated, for 

24 an additional amount for ‘‘Minority Business Develop25 ment’’, $25,000,000, for necessary expenses for the 

224 

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1 MBDC Program, including the component of the program 

2 relating to Specialty Centers, including any cost sharing 

3 requirements that may exist, for assisting minority busi4 ness enterprises to prevent, prepare for, and respond to 

5 coronavirus, including identifying and accessing local, 

6 State, and Federal Government assistance related to such 

7 virus. 

8 (b) EMERGENCY DESIGNATION.— 

9 (1) IN GENERAL.—The amounts provided under 

10 this section are designated as an emergency require11 ment pursuant to section 4(g) of the Statutory Pay12 As-You-Go Act of 2010 (2 U.S.C. 933(g)). 

13 (2) DESIGNATION IN SENATE.—In the Senate, 

14 this section is designated as an emergency require15 ment pursuant to section 4112(a) of H. Con. Res. 

16 71 (115th Congress), the concurrent resolution on 

17 the budget for fiscal year 2018. 

18 PART II—NEW INITIATIVES TO PROMOTE ECO19 NOMIC RESILIENCY FOR MINORITY BUSI20 NESSES 

21 SEC. 741. ANNUAL DIVERSE BUSINESS FORUM ON CAPITAL 

22 FORMATION. 

23 (a) RESPONSIBILITY OF AGENCY.—Not later than 18 

24 months after the date of enactment of this Act, and annu25 ally thereafter, the Agency shall conduct a GovernmentVerDate Sep 11 2014 21:04 Nov 07, 2020 Jkt 019200 PO 00000 Frm 00224 Fmt 6652 Sfmt 6201 E:\BILLS\S4818.IS S4818
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1 business forum to review the current status of problems 

2 and programs relating to capital formation by minority 

3 business enterprises. 

4 (b) PARTICIPATION IN FORUM PLANNING.—The As5 sistant Secretary shall invite the heads of other Federal 

6 agencies, such as the Chairman of the Securities and Ex7 change Commission, the Secretary of the Treasury, and 

8 the Chairman of the Board of Governors of the Federal 

9 Reserve System, organizations representing State securi10 ties commissioners, representatives of leading minority 

11 chambers of commerce, business organizations, and pro12 fessional organizations concerned with capital formation 

13 to participate in the planning of each forum conducted 

14 under subsection (a). 

15 (c) PREPARATION OF STATEMENTS AND REPORTS.— 

16 (1) REQUESTS.—The Assistant Secretary may 

17 request that any head of a Federal department, 

18 agency, or organization, including those described in 

19 subsection (b), or any other group or individual, pre20 pare a statement or report to be delivered at any 

21 forum conducted under subsection (a). 

22 (2) COOPERATION.—Any head of a Federal de23 partment, agency, or organization who receives a re24 quest under paragraph (1) shall, to the greatest exVerDate Sep 11 2014 20:21 Oct 31, 2020 Jkt 019200 PO 00000 Frm 00225 Fmt 6652 Sfmt 6201 E:\BILLS\S4818.IS S4818
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1 tent practicable, cooperate with the Assistant Sec2 retary to fulfill that request. 

3 (d) TRANSMITTAL OF PROCEEDINGS AND FIND4 INGS.—The Assistant Secretary shall— 

5 (1) prepare a summary of the proceedings of 

6 each forum conducted under subsection (a), which 

7 shall include the findings and recommendations of 

8 the forum; and 

9 (2) transmit the summary described in para10 graph (1) with respect to each forum conducted 

11 under subsection (a) to— 

12 (A) the participants in the forum; 

13 (B) Congress; and 

14 (C) the public, through a publicly available 

15 website. 

16 (e) REVIEW OF FINDINGS AND RECOMMENDATIONS; 

17 PUBLIC STATEMENTS.— 

18 (1) IN GENERAL.—A Federal agency to which 

19 a finding or recommendation described in subsection 

20 (d)(1) relates shall— 

21 (A) review that finding or recommenda22 tion; and 

23 (B) promptly after the finding or rec24 ommendation is transmitted under paragraph 

227 

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1 (2)(C) of subsection (d), issue a public state2 ment— 

3 (i) assessing the finding or rec4 ommendation; and 

5 (ii) disclosing the action, if any, the 

6 Federal agency intends to take with re7 spect to the finding or recommendation. 

8 (2) JOINT STATEMENT PERMITTED.—If a find9 ing or recommendation described in subsection 

10 (d)(1) relates to more than 1 Federal agency, the 

11 applicable Federal agencies may, for the purposes of 

12 the public statement required under paragraph 

13 (1)(B), issue a joint statement. 

14 SEC. 742. AGENCY STUDY ON ALTERNATIVE FINANCING SO15 LUTIONS. 

16 (a) PURPOSE.—The purpose of this section is to pro17 vide information relating to alternative financing solutions 

18 to minority business enterprises, as those business enter19 prises are more likely to struggle in accessing, particularly 

20 at affordable rates, traditional sources of capital. 

21 (b) STUDY AND REPORT.—Not later than 1 year 

22 after the date of enactment of this Act, the Assistant Sec23 retary shall— 

228 

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1 (1) conduct a study on opportunities for pro2 viding alternative financing solutions to minority 

3 business enterprises; and 

4 (2) submit to Congress, and publish on the 

5 website of the Agency, a report describing the find6 ings of the study carried out under paragraph (1). 

7 SEC. 743. EDUCATIONAL DEVELOPMENT RELATING TO 

8 MANAGEMENT AND ENTREPRENEURSHIP. 

9 (a) DUTIES.—The Assistant Secretary shall, when10 ever the Assistant Secretary determines such action is nec11 essary or appropriate— 

12 (1) promote and provide assistance for the edu13 cation and training of socially disadvantaged individ14 uals in subjects directly relating to business adminis15 tration and management; 

16 (2) join with, and encourage, institutions of 

17 higher education, leaders in business and industry, 

18 and other public sector and private sector entities, 

19 particularly minority business enterprises, to— 

20 (A) develop programs to offer scholarships 

21 and fellowships, apprenticeships, and intern22 ships relating to business to socially disadvan23 taged individuals; and 

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1 (B) sponsor seminars, conferences, and 

2 similar activities relating to business for the 

3 benefit of socially disadvantaged individuals; 

4 (3) stimulate and accelerate curriculum design 

5 and improvement in support of development of mi6 nority business enterprises; and 

7 (4) encourage and assist private institutions 

8 and organizations and public sector entities to un9 dertake activities similar to the activities described 

10 in paragraphs (1), (2), and (3). 

11 (b) PARREN J. MITCHELL ENTREPRENEURSHIP

12 EDUCATION GRANTS.— 

13 (1) DEFINITION.—In this subsection, the term 

14 ‘‘eligible institution’’ means an institution of higher 

15 education described in any of paragraphs (1) 

16 through (7) of section 371(a) of the Higher Edu17 cation Act of 1965 (20 U.S.C. 1067q(a)). 

18 (2) GRANTS.—The Assistant Secretary shall 

19 award grants to eligible institutions to develop and 

20 implement entrepreneurship curricula. 

21 (3) REQUIREMENTS.—An eligible institution 

22 that receives a grant awarded under this subsection 

23 shall use the grant funds to— 

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1 (A) develop a curriculum that includes 

2 training in various skill sets needed by contem3 porary successful entrepreneurs, including— 

4 (i) business management and mar5 keting; 

6 (ii) financial management and ac7 counting; 

8 (iii) market analysis; 

9 (iv) competitive analysis; 

10 (v) innovation; 

11 (vi) strategic planning; and 

12 (vii) any other skill set that the eligi13 ble institution determines is necessary for 

14 the students served by the eligible institu15 tion and the community in which the eligi16 ble institution is located; and 

17 (B) implement the curriculum developed 

18 under subparagraph (A) at the eligible institu19 tion. 

20 (4) IMPLEMENTATION TIMELINE.—The Assist21 ant Secretary shall establish and publish a timeline 

22 under which an eligible institution that receives a 

23 grant under this section shall carry out the require24 ments under paragraph (3). 

231 

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1 (5) REPORTS.—Each year, the Assistant Sec2 retary shall submit to the Committee on Commerce, 

3 Science, and Transportation of the Senate and the 

4 Committee on Energy and Commerce of the House 

5 of Representatives, as part of the annual budget 

6 submission of the President under section 1105(a) 

7 of title 31, United States Code, a report evaluating 

8 the awarding and use of grants under this sub9 section during the fiscal year immediately preceding 

10 the date on which the report is submitted, which 

11 shall include, with respect to that fiscal year— 

12 (A) a description of each curriculum devel13 oped and implemented under each grant award14 ed under this section; 

15 (B) the date on which each grant awarded 

16 under this section was awarded; and 

17 (C) the number of eligible entities that 

18 were recipients of grants awarded under this 

19 section. 

20 PART III—ADMINISTRATIVE AND OTHER POWERS 

21 OF THE AGENCY; MISCELLANEOUS PROVISIONS 

22 SEC. 751. ADMINISTRATIVE POWERS. 

23 (a) IN GENERAL.—In carrying out this subtitle, the 

24 Assistant Secretary may— 

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1 (1) adopt and use a seal for the Agency, which 

2 shall be judicially noticed; 

3 (2) hold hearings, sit and act, and take testi4 mony as the Assistant Secretary may determine to 

5 be necessary or appropriate to carry out this sub6 title; 

7 (3) acquire, in any lawful manner, any property 

8 that the Assistant Secretary may determine to be 

9 necessary or appropriate to carry out this subtitle; 

10 (4) make advance payments under grants, con11 tracts, and cooperative agreements awarded under 

12 this subtitle; 

13 (5) enter into agreements with other Federal 

14 agencies; 

15 (6) coordinate with the heads of the Offices of 

16 Small and Disadvantaged Business Utilization of 

17 Federal agencies; 

18 (7) require a coordinated review of all training 

19 and technical assistance activities that are proposed 

20 to be carried out by Federal agencies in direct sup21 port of the development of minority business enter22 prises to— 

23 (A) ensure consistency with the purposes 

24 of this subtitle; and 

233 

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1 (B) avoid duplication of existing efforts; 

2 and 

3 (8) prescribe such rules, regulations, and proce4 dures as the Agency may determine to be necessary 

5 or appropriate to carry out this subtitle. 

6 (b) EMPLOYMENT OF CERTAIN EXPERTS AND CON7 SULTANTS.— 

8 (1) IN GENERAL.—In carrying out this subtitle, 

9 the Assistant Secretary may procure by contract the 

10 temporary or intermittent services of experts or con11 sultants or an organization thereof, as authorized 

12 under section 3109 of title 5, United States Code. 

13 (2) RENEWAL OF CONTRACTS.—The Assistant 

14 Secretary may annually renew a contract entered 

15 into under paragraph (1). 

16 (c) DONATION OF PROPERTY.— 

17 (1) IN GENERAL.—Subject to paragraph (2), in 

18 carrying out this subtitle, the Assistant Secretary 

19 may, without cost (except for costs of care and han20 dling), donate for use by any public sector entity, or 

21 by any recipient nonprofit organization, for the pur22 pose of the development of minority business enter23 prises, any real or tangible personal property ac24 quired by the Agency in carrying out this subtitle. 

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1 (2) TERMS, CONDITIONS, RESERVATIONS, AND

2 RESTRICTIONS.—The Assistant Secretary may im3 pose reasonable terms, conditions, reservations, and 

4 restrictions upon the use of any property donated 

5 under paragraph (1). 

6 SEC. 752. FINANCIAL ASSISTANCE. 

7 (a) IN GENERAL.— 

8 (1) PROVISION OF FINANCIAL ASSISTANCE.—To 

9 carry out sections 721, 722, and 723(a), the Assist10 ant Secretary may provide financial assistance to 

11 public sector entities and private sector entities in 

12 the form of contracts, grants, or cooperative agree13 ments. 

14 (2) NOTICE.—Not later than 120 days before 

15 the first day of each fiscal year, the Assistant Sec16 retary shall, in accordance with subsection (b), 

17 broadly publish a statement regarding financial as18 sistance that will, or may, be made available under 

19 paragraph (1) in the first fiscal year that begins 

20 after the date on which the statement is published, 

21 including— 

22 (A) the actual, or anticipated, amount of 

23 financial assistance that will, or may, be made 

24 available; 

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•S 4818 IS

1 (B) the types of financial assistance that 

2 will, or may, be made available; 

3 (C) the manner in which financial assist4 ance will be allocated among public sector enti5 ties and private sector entities, as applicable; 

6 and 

7 (D) the methodology used by the Assistant 

8 Secretary to make allocations under subpara9 graph (C). 

10 (3) CONSULTATION.—The Assistant Secretary 

11 shall consult with public sector entities and private 

12 sector entities, as applicable, in deciding the 

13 amounts and types of financial assistance to make 

14 available under paragraph (1). 

15 (b) PUBLICITY.—In carrying out this section, the As16 sistant Secretary shall broadly publicize all opportunities 

17 for financial assistance available under this section, in18 cluding— 

19 (1) on the website of the Agency; and 

20 (2) via social media outlets. 

21 SEC. 753. AUDITS. 

22 (a) RECORDKEEPING REQUIREMENT.—Each recipi23 ent of assistance under this subtitle shall keep such 

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236 

•S 4818 IS

1 ing records that fully disclose, with respect to the assist2 ance received by the recipient under this subtitle— 

3 (1) the amount and nature of that assistance; 

4 (2) the disposition by the recipient of the pro5 ceeds of that assistance; 

6 (3) the total cost of the undertaking for which 

7 the assistance is given or used; 

8 (4) the amount and nature of the portion of the 

9 cost of the undertaking described in paragraph (3) 

10 that is supplied by a source other than the Agency; 

11 and 

12 (5) any other records that will facilitate an ef13 fective audit of the assistance. 

14 (b) ACCESS BY GOVERNMENT OFFICIALS.—The As15 sistant Secretary, the Inspector General of the Depart16 ment of Commerce, and the Comptroller General of the 

17 United States, or any duly authorized representative of 

18 any such individual, shall have access, for the purpose of 

19 audit, investigation, and examination, to any book, docu20 ment, paper, record, or other material of a recipient of 

21 assistance under this subtitle that pertains to the assist22 ance received by the recipient under this subtitle. 

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1 SEC. 754. REVIEW AND REPORT BY COMPTROLLER GEN2 ERAL. 

3 Not later than 4 years after the date of enactment 

4 of this Act, the Comptroller General of the United States 

5 shall— 

6 (1) conduct a thorough review of the programs 

7 carried out under this subtitle; and 

8 (2) submit to Congress a detailed report of the 

9 findings of the Comptroller General of the United 

10 States under the review carried out under paragraph 

11 (1), which shall include— 

12 (A) an evaluation of the effectiveness of 

13 the programs in achieving the purposes of this 

14 subtitle; 

15 (B) a description of any failure by any re16 cipient of assistance under this subtitle to com17 ply with the requirements under this subtitle; 

18 and 

19 (C) recommendations for any legislative or 

20 administrative action that should be taken to 

21 improve the achievement of the purposes of this 

22 subtitle. 

23 SEC. 755. ANNUAL REPORTS; RECOMMENDATIONS. 

24 (a) ANNUAL REPORT.—Not later than 90 days after 

25 the last day of each fiscal year, the Assistant Secretary 

26 shall submit to Congress, and publish on the website of 

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•S 4818 IS

1 the Agency, a report of each activity of the Agency carried 

2 out under this subtitle during the fiscal year preceding the 

3 date on which the report is submitted. 

4 (b) RECOMMENDATIONS.—The Assistant Secretary 

5 shall periodically submit to Congress and the President 

6 recommendations for legislation or other actions that the 

7 Assistant Secretary determines to be necessary or appro8 priate to promote the purposes of this subtitle. 

9 SEC. 756. SEPARABILITY. 

10 If a provision of this subtitle, or the application of 

11 a provision of this subtitle to any person or circumstance, 

12 is held by a court of competent jurisdiction to be invalid, 

13 that judgment— 

14 (1) shall not affect, impair, or invalidate— 

15 (A) any other provision of this subtitle; or 

16 (B) the application of this subtitle to any 

17 other person or circumstance; and 

18 (2) shall be confined in its operation to— 

19 (A) the provision of this subtitle with re20 spect to which the judgment is rendered; or 

21 (B) the application of the provision of this 

22 subtitle to each person or circumstance directly 

23 involved in the controversy in which the judg24 ment is rendered. 

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1 SEC. 757. EXECUTIVE ORDER 11625. 

2 The powers and duties of the Agency shall be deter3 mined— 

4 (1) in accordance with this subtitle and the re5 quirements of this subtitle; and 

6 (2) without regard to Executive Order 11625 

7 (36 Fed. Reg. 19967; relating to prescribing addi8 tional arrangements for developing and coordinating 

9 a national program for minority business enter10 prise). 

11 SEC. 758. AMENDMENT TO THE FEDERAL ACQUISITION 

12 STREAMLINING ACT OF 1994. 

13 Section 7104(c) of the Federal Acquisition Stream14 lining Act of 1994 (15 U.S.C. 644a(c)) is amended by 

15 striking paragraph (2) and inserting the following: 

16 ‘‘(2) The Assistant Secretary of Commerce for 

17 Minority Business Development.’’. 

18 Subtitle B—Other Provisions 

19 SEC. 761. EMERGENCY GRANTS TO MINORITY BUSINESS EN20 TERPRISES. 

21 (a) GRANTS DURING THE COVID–19 PANDEMIC.— 

22 The Agency shall provide grants to address the needs of 

23 minority business enterprises impacted by the COVID–19 

24 pandemic. 

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1 (b) RECIPIENTS.—The Agency may make grants 

2 through nonprofit organizations or directly to minority 

3 business enterprises. 

4 (c) PRIORITY AREAS.—In providing grants pursuant 

5 to subsection (a), the Agency shall prioritize providing as6 sistance to— 

7 (1) minority business enterprises that have been 

8 unable to obtain loans from the paycheck protection 

9 program under section 7(a)(36) of the Small Busi10 ness Act (15 U.S.C. 636(a)(36)) and other programs 

11 established under the CARES Act (Public Law 116– 

12 136); 

13 (2) minority business enterprises located in low14 income areas or areas that have been significantly 

15 impacted by the COVID–19 pandemic; and 

16 (3) minority business enterprises that do not 

17 have access to capital and whose business is sub18 stantially impaired because of the impact of stay-at19 home orders implemented by State and local govern20 ments due to the COVID–19 pandemic. 

21 (d) TERMS AND CONDITIONS.— 

22 (1) IN GENERAL.—The Assistant Secretary 

23 shall set such terms and conditions for the grants 

24 made under this section as the Assistant Secretary 

25 determines appropriate. 

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1 (2) NOTIFICATION.—No later than 15 days 

2 prior to making any grants under this section, the 

3 Assistant Secretary shall provide the terms and con4 ditions for grants made under this section to the 

5 Committee on Banking, Housing, and Urban Affairs 

6 of the Senate and the Committee on Financial Serv7 ices of the House of Representatives. 

8 (e) GAO OVERSIGHT.—Not later than 6 months after 

9 the date of enactment of this Act, the Comptroller General 

10 of the United States shall provide a report on the effective11 ness of the grants made under this section, including the 

12 manner in which the Agency implemented the priorities 

13 described in subsection (c). 

14 (f) AUTHORIZATION OF APPROPRIATIONS.—There 

15 are authorized to be appropriated $3,000,000,000 to carry 

16 out this section, to remain available until expended. 

17 TITLE VIII—PROMOTING AND 

18 ADVANCING COMMUNITIES 

19 OF COLOR THROUGH INCLU20 SIVE LENDING 

21 SEC. 801. SHORT TITLE. 

22 This title may be cited as the ‘‘Promoting and Ad23 vancing Communities of Color through Inclusive Lending 

24 Act’’. 

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1 SEC. 802. FINDINGS; SENSE OF CONGRESS. 

2 (a) FINDINGS.—The Congress finds the following: 

3 (1) The Coronavirus 2019 (COVID–19) pan4 demic and the resulting recession have led to— 

5 (A) more than 4,800,000 cases and at 

6 least 157,000 deaths in the United States as of 

7 August 6, 2020; 

8 (B) a 7.6 percent increase in the unem9 ployment rate from February to June, or ap10 proximately 12,000,000 more persons who have 

11 lost their job; and 

12 (C) an estimated 36 percent of renters and 

13 4,100,000 homeowners who are struggling to 

14 pay their rent and mortgages. 

15 (2) According to the Centers for Disease Con16 trol and Prevention, ‘‘long-standing systemic health 

17 and social inequities have put some members of ra18 cial and ethnic minority groups at increased risk of 

19 getting COVID–19 or experiencing severe illness’’. 

20 (3) Minority-owned businesses are also facing 

21 more difficult economic circumstances than others as 

22 a result of the COVID–19 pandemic. In April 2020, 

23 the Federal Reserve Bank of New York reported 

24 that minority- and women-owned businesses were 

25 not only more likely to show signs of limited finan26 cial health, but also twice as likely to be classified 

243 

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1 as ‘‘at risk’’ or ‘‘distressed’’ than their non-minority 

2 counterparts. 

3 (4) During the Coronavirus 2019 (COVID–19) 

4 pandemic, community development financial institu5 tions (in this section referred to as ‘‘CDFIs’’) and 

6 minority depository institutions (in this section re7 ferred to as ‘‘MDIs’’) have delivered needed capital 

8 and relief to underserved communities, many of 

9 which have borne a disproportionate impact of the 

10 COVID–19 pandemic. Through August 8, 2020, 

11 CDFIs and MDIs have provided more than 

12 $16,400,000,000 in loans under the Paycheck Pro13 tection Program under section 7(a)(36) of the Small 

14 Business Act (15 U.S.C. 636(a)(36)) to small busi15 nesses with a smaller median loan size of about 

16 $74,000 compared to the overall program median 

17 loan size of $101,000. 

18 (5) In addition to establishing relief funds and 

19 services for local businesses and individuals experi20 encing loss of income, CDFIs and MDIs have pro21 vided mortgage forbearances, loan deferments, and 

22 modifications to help address the needs of their bor23 rowers. CDFIs and MDIs are reaching underserved 

24 communities and minority-owned businesses at a 

25 critical time. 

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1 (6) The Community Development Financial In2 stitutions Fund (in this section referred to as the 

3 ‘‘CDFI Fund’’) is an agency of the Department of 

4 the Treasury and was established by the Community 

5 Development Banking and Financial Institutions Act 

6 of 1994. The mission of the CDFI Fund is ‘‘to ex7 pand economic opportunity for underserved people 

8 and communities by supporting the growth and ca9 pacity of a national network of community develop10 ment lenders, investors, and financial service pro11 viders’’. As of September 15, 2020, there were 1,137 

12 certified CDFIs in all 50 States, the District of Co13 lumbia, Guam, and the Commonwealth of Puerto 

14 Rico. 

15 (7) Following the 2008 financial crisis and the 

16 disproportionate impact the Great Recession had on 

17 minority communities, the number of MDIs that are 

18 banks fell more than 30 percent over the following 

19 decade, to 143 as of the second quarter of 2020. 

20 Meanwhile, MDIs that are credit unions have seen 

21 similar declines, with more than one-third of such 

22 institutions disappearing since 2013. 

23 (b) SENSE OF CONGRESS.—The following is the sense 

24 of the Congress: 

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•S 4818 IS

1 (1) The Department of the Treasury, Board of 

2 Governors of the Federal Reserve System, Small 

3 Business Administration, Office of the Comptroller 

4 of the Currency, Federal Deposit Insurance Cor5 poration, National Credit Union Administration, and 

6 other Federal agencies should take steps to support, 

7 engage with, and utilize MDIs and CDFIs in the 

8 near term, especially as they carry out programs to 

9 respond to the COVID–19 pandemic, and the long 

10 term. 

11 (2) The Board of Governors of the Federal Re12 serve System should, consistent with its mandates, 

13 work to increase lending by MDIs and CDFIs to un14 derserved communities, and when appropriate, 

15 should work with the Department of the Treasury to 

16 increase lending by MDIs and CDFIs to underserved 

17 communities. 

18 (3) The Department of the Treasury and pru19 dential regulators should establish a strategic plan 

20 identifying concrete steps that they can take to sup21 port existing MDIs, as well as the formation of new 

22 MDIs consistent with the goals established in section 

23 308 of the Financial Institutions Reform, Recovery, 

24 and Enforcement Act of 1989 (12 U.S.C. 1463 

25 note) to preserve and promote MDIs. 

246 

•S 4818 IS

1 (4) Congress should increase funding and make 

2 other enhancements, including those provided by this 

3 legislation, to enhance the effectiveness of the CDFI 

4 Fund, especially reforms to support minority-owned 

5 and minority led CDFIs in times of crisis and be6 yond. 

7 (5) Congress should conduct robust and ongo8 ing oversight of the Department of the Treasury, the 

9 CDFI Fund, Federal prudential regulators, the 

10 Small Business Administration, and other Federal 

11 agencies to ensure they fulfill their obligations under 

12 the law as well as implement this title and other 

13 laws in a manner that supports and fully utilizes 

14 MDIs and community development financial intui15 tions, as appropriate. 

16 (6) The investments made by the Secretary of 

17 the Treasury under this title and the amendments 

18 made by this title should be designed to maximize 

19 the benefit to low- and moderate-income and minor20 ity communities and contemplate losses to capital of 

21 the Treasury. 

22 SEC. 803. PURPOSES. 

23 The purposes of this title are to— 

24 (1) establish programs to revitalize and provide 

25 long-term financial products and service availability 

247 

•S 4818 IS

1 for, and provide investments in, low- and moderate2 income and minority communities; 

3 (2) respond to the unprecedented loss of Black4 owned businesses and unemployment; and 

5 (3) otherwise enhance the stability, safety and 

6 soundness of community development financial insti7 tutions that support low- and moderate-income and 

8 minority communities. 

9 SEC. 804. CONSIDERATIONS; REQUIREMENTS FOR CREDI10 TORS. 

11 (a) IN GENERAL.—In exercising the authorities 

12 under this title and the amendments made by this title, 

13 the Secretary of the Treasury shall take into consider14 ation— 

15 (1) increasing the availability of affordable 

16 credit for consumers, small businesses, and nonprofit 

17 organizations, including for projects supporting af18 fordable housing, community-serving real estate, and 

19 other projects, that provide direct benefits to low20 and moderate-income communities, low-income and 

21 underserved individuals, and minorities; 

22 (2) providing funding to minority-owned or mi23 nority-led eligible institutions and other eligible insti24 tutions that have a strong track record of serving 

25 minority small businesses; 

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1 (3) protecting and increasing jobs in the United 

2 States; 

3 (4) increasing the opportunity for small busi4 ness, affordable housing, and community develop5 ment in geographic areas and demographic segments 

6 with poverty and high unemployment rates that ex7 ceed the average in the United States; 

8 (5) ensuring that all low- and moderate-income 

9 community financial institutions may apply to par10 ticipate in the programs established under this title 

11 and the amendments made by this title, without dis12 crimination based on geography; 

13 (6) providing transparency with respect to use 

14 of funds provided under this title and the amend15 ments made by this title; 

16 (7) promoting and engaging in financial edu17 cation to would-be borrowers; and 

18 (8) providing funding to eligible institutions 

19 that serve consumers, small businesses, and non20 profit organizations to support affordable housing, 

21 community-serving real estate, and other projects 

22 that provide direct benefits to low- and moderate-in23 come communities, low-income individuals, and mi24 norities directly affected by the COVID–19 pan25 demic. 

249 

•S 4818 IS

1 (b) REQUIREMENT FOR CREDITORS.—Any creditor 

2 participating in a program established under this title or 

3 the amendments made by this title shall fully comply with 

4 all applicable statutory and regulatory requirements relat5 ing to fair lending. 

6 SEC. 805. NEIGHBORHOOD CAPITAL INVESTMENT PRO7 GRAM. 

8 The Coronavirus Economic Stabilization Act of 2020 

9 (15 U.S.C. 9041 et seq.) is amended— 

10 (1) in section 4002 (15 U.S.C. 9041)— 

11 (A) by redesignating paragraphs (7) 

12 through (10) as paragraphs (9) through (12), 

13 respectively; and 

14 (B) by inserting after paragraph (6) the 

15 following: 

16 ‘‘(7) LOW- AND MODERATE-INCOME COMMU17 NITY FINANCIAL INSTITUTION.—The term ‘low- and 

18 moderate-income community financial institution’ 

19 means any financial institution that is— 

20 ‘‘(A) a community development financial 

21 institution, as defined in section 103 of the 

22 Community Development Banking and Finan23 cial Institutions Act of 1994 (12 U.S.C. 4702); 

24 or 

25 ‘‘(B) a minority depository institution. 

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1 ‘‘(8) MINORITY DEPOSITORY INSTITUTION.— 

2 The term ‘minority depository institution’ means— 

3 ‘‘(A) a depository institution described in 

4 section 308(b) of the Financial Institutions Re5 form, Recovery, and Enforcement Act of 1989 

6 (12 U.S.C. 1463 note); 

7 ‘‘(B) an entity considered to be a minority 

8 depository institution by— 

9 ‘‘(i) the appropriate Federal banking 

10 agency (as defined under section 3 of the 

11 Federal Deposit Insurance Act (12 U.S.C. 

12 1813)); or 

13 ‘‘(ii) the National Credit Union Ad14 ministration, in the case of an insured 

15 credit union, as defined in section 101 of 

16 the Federal Credit Union Act (12 U.S.C. 

17 1752); and 

18 ‘‘(C) an entity listed in the Minority De19 pository Institutions List published by the Fed20 eral Deposit Insurance Corporation for the Sec21 ond Quarter 2020.’’; and 

22 (2) in section 4003 (15 U.S.C. 9042), by add23 ing at the end the following: 

24 ‘‘(i) NEIGHBORHOOD CAPITAL INVESTMENT PRO25 GRAM.— 

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1 ‘‘(1) DEFINITIONS.—In this subsection— 

2 ‘‘(A) the terms ‘community development fi3 nancial institution’, ‘insured community devel4 opment financial institution’, and ‘minority 

5 lending institution’ have the meanings given 

6 such terms in section 103 of the Community 

7 Development Banking and Financial Institu8 tions Act of 1994 (12 U.S.C. 4702); 

9 ‘‘(B) the term ‘Fund’ means the Commu10 nity Development Financial Institutions Fund 

11 established under section 104(a) of the Commu12 nity Development Banking and Financial Insti13 tutions Act of 1994 (12 U.S.C. 4703(a)); 

14 ‘‘(C) the term ‘minority’ means any Black 

15 American, Native American, Hispanic Amer16 ican, or Asian American; 

17 ‘‘(D) the term ‘Program’ means the Neigh18 borhood Capital Investment Program estab19 lished under paragraph (2); and 

20 ‘‘(E) the term ‘Secretary’ means the Sec21 retary of the Treasury. 

22 ‘‘(2) ESTABLISHMENT.—The Secretary shall es23 tablish a Neighborhood Capital Investment Program 

24 to support the efforts of low- and moderate-income 

25 community financial institutions to, among other 

252 

•S 4818 IS

1 things, provide loans and forbearances to small busi2 nesses, minority-owned businesses, and consumers, 

3 especially in low-income and underserved commu4 nities, by providing direct capital investments in low5 and moderate-income community financial institu6 tions. 

7 ‘‘(3) APPLICATION.— 

8 ‘‘(A) ACCEPTANCE.—The Secretary shall 

9 begin accepting applications for capital invest10 ments under the Program not later than the 

11 end of the 30-day period beginning on the date 

12 of enactment of this subsection, with priority in 

13 distribution given to low- and moderate-income 

14 community financial institutions that are mi15 nority lending institutions. 

16 ‘‘(B) REQUIREMENT TO PROVIDE A NEIGH17 BORHOOD INVESTMENT LENDING PLAN.— 

18 ‘‘(i) IN GENERAL.—At the time that 

19 an applicant submits an application to the 

20 Secretary for a capital investment under 

21 the Program, the applicant shall provide 

22 the Secretary, along with the appropriate 

23 Federal banking agency, an investment 

24 and lending plan that— 

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•S 4818 IS

1 ‘‘(I) demonstrates that not less 

2 than 30 percent of the lending of the 

3 applicant over the past 2 fiscal years 

4 was made directly to low- and mod5 erate income borrowers, to borrowers 

6 that create direct benefits for low- and 

7 moderate-income populations, to other 

8 targeted populations as defined by the 

9 Fund, or any combination thereof, as 

10 measured by the total number and 

11 dollar amount of loans; 

12 ‘‘(II) describes how the business 

13 strategy and operating goals of the 

14 applicant will address community de15 velopment needs, including the needs 

16 of small businesses, consumers, non17 profit organizations, community devel18 opment, and other projects providing 

19 direct benefits to low- and moderate20 income communities, low-income indi21 viduals, and minorities within the mi22 nority, rural, and urban low-income 

23 and underserved areas served by the 

24 applicant; 

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1 ‘‘(III) includes a plan to provide 

2 linguistically and culturally appro3 priate outreach, where appropriate; 

4 ‘‘(IV) includes an attestation by 

5 the applicant that the applicant does 

6 not own, service, or offer any financial 

7 products at an annual percentage rate 

8 of more than 36 percent interest, as 

9 defined in section 987(i)(4) of title 

10 10, United States Code, and is com11 pliant with State interest rate laws; 

12 and 

13 ‘‘(V) includes details on how the 

14 applicant plans to expand or maintain 

15 significant lending or investment ac16 tivity in low- or moderate-income mi17 nority communities, to historically dis18 advantaged borrowers, and to minori19 ties that have significant unmet cap20 ital or financial services needs. 

21 ‘‘(ii) COMMUNITY DEVELOPMENT

22 LOAN FUNDS.—An applicant that is not an 

23 insured community development financial 

24 institution or otherwise regulated by a 

25 Federal financial regulator shall submit 

255 

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1 the plan described in clause (i) only to the 

2 Secretary. 

3 ‘‘(iii) DOCUMENTATION.—In the case 

4 of an applicant that is certified as a com5 munity development financial institution as 

6 of the date of enactment of this subsection, 

7 for purposes of clause (i)(I), the Secretary 

8 may rely on documentation submitted the 

9 Fund as part of certification compliance 

10 reporting. 

11 ‘‘(4) INCENTIVES TO INCREASE LENDING AND

12 PROVIDE AFFORDABLE CREDIT.— 

13 ‘‘(A) REQUIREMENTS ON PREFERRED

14 STOCK AND OTHER FINANCIAL INSTRUMENT.— 

15 Any financial instrument issued to the Sec16 retary by a low- and moderate-income commu17 nity financial institution under the Program 

18 shall comply with the following requirements: 

19 ‘‘(i) No dividend, interest or other 

20 payment shall exceed 2 percent per annum. 

21 ‘‘(ii) After the first 24 months after 

22 the date of the capital investment under 

23 the Program, annual payments may be re24 quired, as determined by the Secretary and 

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256 

•S 4818 IS

1 justed downward based on the amount of 

2 affordable credit provided by the low- and 

3 moderate-income community financial in4 stitution to borrowers in minority, rural, 

5 and urban low-income and underserved 

6 communities. 

7 ‘‘(iii) During any calendar quarter 

8 after the initial 24-month period referred 

9 to in clause (ii), the annual payment rate 

10 of a low- and moderate-income community 

11 financial institution shall be adjusted 

12 downward to reflect the following schedule, 

13 based on lending by the institution relative 

14 to the baseline period: 

15 ‘‘(I) If the institution in the most 

16 recent annual period prior to the in17 vestment provides significant lending 

18 or investment activity in low- or mod19 erate-income minority communities, 

20 historically disadvantaged borrowers, 

21 and to minorities that have significant 

22 unmet capital or financial services, 

23 the annual payment rate shall not ex24 ceed 0.5 percent per annum. 

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•S 4818 IS

1 ‘‘(II) If the amount of lending 

2 within minority, rural, and urban low3 income and underserved communities 

4 and to low- and moderate-income bor5 rowers has increased dollar for dollar 

6 based on the amount of the capital in7 vestment, the annual payment rate 

8 shall not exceed 1 percent per annum. 

9 ‘‘(III) If the amount of lending 

10 within minority, rural, and urban low11 income and underserved communities 

12 and to low- and moderate-income bor13 rowers has increased by twice the 

14 amount of the capital investment, the 

15 annual payment rate shall not exceed 

16 0.5 percent per annum. 

17 ‘‘(B) CONTINGENCY OF PAYMENTS BASED

18 ON CERTAIN FINANCIAL CRITERIA.— 

19 ‘‘(i) DEFERRAL.—Any annual pay20 ments under this subsection shall be de21 ferred in any quarter or payment period if 

22 any of the following occur: 

23 ‘‘(I) The low- and moderate-in24 come community institution fails to 

25 meet the Tier 1 capital ratio or simiVerDate Sep 11 2014 20:21 Oct 31, 2020 Jkt 019200 PO 00000 Frm 00257 Fmt 6652 Sfmt 6201 E:\BILLS\S4818.IS S4818
258 

•S 4818 IS

1 lar ratio as determined by the Sec2 retary. 

3 ‘‘(II) The low- and moderate-in4 come community financial institution 

5 fails to achieve positive net income for 

6 the quarter or payment period. 

7 ‘‘(III) The low- and moderate-in8 come community financial institution 

9 determines that the payment would be 

10 detrimental to the financial health of 

11 the institution. 

12 ‘‘(ii) TESTING DURING NEXT PAY13 MENT PERIOD.—Any deferred annual pay14 ment under this subsection shall— 

15 ‘‘(I) be tested against the metrics 

16 described in clause (i) at the begin17 ning of the next payment period; and 

18 ‘‘(II) continue to be deferred 

19 until the metrics described in that 

20 clause are no longer applicable. 

21 ‘‘(5) RESTRICTIONS.— 

22 ‘‘(A) IN GENERAL.—Each low- and mod23 erate-income community financial institution 

24 may only issue financial instruments or senior 

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1 preferred stock under this subsection with an 

2 aggregate principal amount that is— 

3 ‘‘(i) not more than 15 percent of risk4 weighted assets for an institution with as5 sets of more than $2,000,000,000; 

6 ‘‘(ii) not more than 25 percent of 

7 risk-weighted assets for an institution with 

8 assets of not less than $500,000,000 and 

9 not more than $2,000,000,000; and 

10 ‘‘(iii) not more than 30 percent of 

11 risk-weighted assets for an institution with 

12 assets of less than $500,000,000. 

13 ‘‘(B) HOLDING OF INSTRUMENTS.—Hold14 ing any instrument of a low- and moderate-in15 come community financial institution described 

16 in subparagraph (A) shall not give the Sec17 retary or any successor that owns the instru18 ment any rights over the management of the in19 stitution. 

20 ‘‘(C) SALE OF INTEREST.—With respect to 

21 a capital investment made into a low- and mod22 erate-income community financial institution 

23 under this subsection, the Secretary— 

24 ‘‘(i) except as provided in clause (iv), 

25 during the 10-year period beginning on the 

260 

•S 4818 IS

1 date of the investment, may not sell the in2 terest of the Secretary in the capital in3 vestment to a third party; 

4 ‘‘(ii) shall provide the low- and mod5 erate-income community financial institu6 tion a right of first refusal to buy back the 

7 investment under terms that do not exceed 

8 a value as determined by an independent 

9 third party; 

10 ‘‘(iii) may not sell more than a 5 per11 cent ownership interest in the capital in12 vestment to a single third party; and 

13 ‘‘(iv) with the permission of the insti14 tution, may gift or sell the interest of the 

15 Secretary in the capital investment for a 

16 de minimis amount to a mission aligned 

17 nonprofit affiliate of an applicant that is 

18 an insured community development finan19 cial institution. 

20 ‘‘(v) CALCULATION OF OWNERSHIP

21 FOR MINORITY DEPOSITORY INSTITU22 TIONS.—The calculation and determination 

23 of ownership thresholds for a depository 

24 institution to qualify as a minority deposi25 tory institution shall exclude any dilutive 

261 

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1 effect of equity investments by the Federal 

2 Government, including under the Program 

3 or through the Fund. 

4 ‘‘(6) AVAILABLE AMOUNTS.—In carrying out 

5 the Program, the Secretary shall use not more than 

6 $13,000,000,000, from amounts appropriated under 

7 section 4027, and shall use not less than 

8 $7,000,000,000 of such amount for direct capital in9 vestments under the Program. 

10 ‘‘(7) TREATMENT OF CAPITAL INVESTMENTS.— 

11 In making any capital investment under the Pro12 gram, the Secretary shall ensure that the terms of 

13 the investment are designed to ensure the invest14 ment receives Tier 1 capital treatment. 

15 ‘‘(8) OUTREACH TO MINORITIES.—The Sec16 retary shall require low- and moderate-income com17 munity financial institutions receiving capital invest18 ments under the Program to provide linguistically 

19 and culturally appropriate outreach and advertising 

20 describing the availability and application process of 

21 receiving loans made possible by the Program 

22 through organizations, trade associations, and indi23 viduals that represent or work within or are mem24 bers of minority communities. 

25 ‘‘(9) RESTRICTIONS.— 

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1 ‘‘(A) IN GENERAL.—Not later than the 

2 end of the 30-day period beginning on the date 

3 of enactment of this subsection, the Secretary 

4 shall issue rules setting restrictions on executive 

5 compensation, share buybacks, and dividend 

6 payments for recipients of capital investments 

7 under the Program. 

8 ‘‘(B) RULE OF CONSTRUCTION.—The pro9 visions of section 4019 apply to investments 

10 made under the Program. 

11 ‘‘(10) TERMINATION OF INVESTMENT AUTHOR12 ITY.—The authority to make capital investments in 

13 low- and moderate-income community financial insti14 tutions, including commitments to purchase pre15 ferred stock or other instruments, provided under 

16 the Program shall terminate on the date that is 36 

17 months after the date of enactment of this sub18 section. 

19 ‘‘(11) COLLECTION OF DATA.—Notwithstanding 

20 the Equal Credit Opportunity Act (15 U.S.C. 1691 

21 et seq.)— 

22 ‘‘(A) any low- and moderate-income com23 munity financial institution may collect data de24 scribed in section 701(a)(1) of that Act (15 

25 U.S.C. 1691(a)(1)) from borrowers and appliVerDate Sep 11 2014 20:21 Oct 31, 2020 Jkt 019200 PO 00000 Frm 00262 Fmt 6652 Sfmt 6201 E:\BILLS\S4818.IS S4818
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1 cants for credit for the purpose of monitoring 

2 compliance under the plan required under para3 graph (4)(B); and 

4 ‘‘(B) a low- and moderate-income commu5 nity financial institution that collects the data 

6 described in subparagraph (A) shall not be sub7 ject to adverse action related to that collection 

8 by the Bureau of Consumer Financial Protec9 tion or any other Federal agency. 

10 ‘‘(12) DEPOSIT OF FUNDS.—All funds received 

11 by the Secretary in connection with purchases made 

12 pursuant this subsection, including interest pay13 ments, dividend payments, and proceeds from the 

14 sale of any financial instrument, shall be deposited 

15 into the Fund and used to provide financial and 

16 technical assistance pursuant to section 108 of the 

17 Community Development and Banking and Finan18 cial Institutions Act of 1994 (12 U.S.C. 4707), ex19 cept that subsection (e) of that section shall be 

20 waived. 

21 ‘‘(13) EQUITY EQUIVALENT INVESTMENT OP22 TION.— 

23 ‘‘(A) IN GENERAL.—The Secretary shall 

24 establish an Equity Equivalent Investment Op25 tion, under which, with respect to a specific inVerDate Sep 11 2014 20:21 Oct 31, 2020 Jkt 019200 PO 00000 Frm 00263 Fmt 6652 Sfmt 6201 E:\BILLS\S4818.IS S4818
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1 vestment in a low- and moderate-income com2 munity financial institution— 

3 ‘‘(i) 80 percent of such investment is 

4 made by the Secretary under the Program; 

5 and 

6 ‘‘(ii) 20 percent of such investment if 

7 made by a banking institution. 

8 ‘‘(B) REQUIREMENT TO FOLLOW SIMILAR

9 TERMS AND CONDITIONS.—The terms and con10 ditions applicable to investments made by the 

11 Secretary under the Program shall apply to any 

12 investment made by a banking institution under 

13 this paragraph. 

14 ‘‘(C) LIMITATIONS.—The amount of a spe15 cific investment described under subparagraph 

16 (A) may not exceed $10,000,000, but the re17 ceipt of an investment under subparagraph (A) 

18 shall not preclude the recipient from being eligi19 ble for other assistance under the Program. 

20 ‘‘(D) BANKING INSTITUTION DEFINED.— 

21 In this paragraph, the term ‘banking institu22 tion’ means any entity with respect to which 

23 there is an appropriate Federal banking agency 

24 under section 3 of the Federal Deposit Insur25 ance Act (12 U.S.C. 1813). 

265 

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1 ‘‘(j) APPLICATION OF THE MILITARY LENDING

2 ACT.— 

3 ‘‘(1) IN GENERAL.—No low- and moderate-in4 come community financial institution that receives 

5 an equity investment under subsection (i) shall, for 

6 so long as the investment or participation continues, 

7 make any loan at an annualized percentage rate 

8 above 36 percent, as determined in accordance with 

9 section 987(b) of title 10, United States Code (com10 monly known as the ‘Military Lending Act)’. 

11 ‘‘(2) NO EXEMPTIONS PERMITTED.—The ex12 emption authority of the Bureau of Consumer Fi13 nancial Protection under section 105(f) of the Truth 

14 in Lending Act (15 U.S.C. 1604(f)) shall not apply 

15 with respect to this subsection.’’. 

16 SEC. 806. EMERGENCY SUPPORT FOR CDFIS AND COMMU17 NITIES. 

18 (a) AUTHORIZATION OF APPROPRIATIONS.—There is 

19 authorized to be appropriated to the Fund $2,000,000,000 

20 for fiscal year 2021, for providing financial assistance and 

21 technical assistance under subparagraphs (A) and (B) of 

22 section 108(a)(1) of the Community Development Bank23 ing and Financial Institutions Act of 1994 (12 U.S.C. 

24 4707(a)(1)), except that subsections (d) and (e) of such 

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1 ance, for the Bank Enterprise Award program, and for 

2 financial assistance, technical assistance, training, and 

3 outreach programs designed to benefit Native American, 

4 Native Hawaiian, and Alaska Native communities and 

5 provided primarily through qualified community develop6 ment lender organizations with experience and expertise 

7 in community development banking and lending in Indian 

8 country, Native American organizations, Tribes and Trib9 al organizations, and other suitable providers. 

10 (b) SET ASIDES.—Of the amounts appropriated pur11 suant to the authorization under subsection (a), the fol12 lowing amounts shall be set aside: 

13 (1) Up to $400,000,000, to remain available 

14 until expended, to provide grants to CDFIs— 

15 (A) to expand lending or investment activ16 ity in low- or moderate-income minority commu17 nities and to minorities that have significant 

18 unmet capital or financial services needs, of 

19 which not less than $10,000,000 may be for 

20 grants to benefit Native American, Native Ha21 waiian, and Alaska Native communities; and 

22 (B) using a formula that takes into ac23 count criteria such as certification status, finan24 cial and compliance performance, portfolio and 

25 balance sheet strength, a diversity of CDFI 

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1 business model types, and program capacity, as 

2 well as experience making loans and invest3 ments to those areas and populations identified 

4 in this paragraph. 

5 (2) Up to $160,000,000, to remain available 

6 until expended, for technical assistance, technology, 

7 and training under sections 108(a)(1)(B) and 109, 

8 respectively, of the Community Development Bank9 ing and Financial Institutions Act of 1994 (12 

10 U.S.C. 4707(a)(1)(B), 4708), with a preference for 

11 minority lending institutions. 

12 (3) Up to $800,000,000, to remain available 

13 until expended, shall be for providing financial as14 sistance, technical assistance, awards, training, and 

15 outreach programs described under subsection (a) to 

16 recipients that are minority lending institutions. 

17 (c) ADMINISTRATIVE EXPENSES.—Funds appro18 priated pursuant to the authorization under subsection (a) 

19 may be used for administrative expenses, including admin20 istration of Fund programs and the New Markets Tax 

21 Credit Program under section 45D of the Internal Rev22 enue Code of 1986. 

23 (d) DEFINITIONS.—In this section: 

24 (1) CDFI.—The term ‘‘CDFI’’ means a com25 munity development financial institution, as defined 

268 

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1 in section 103 of the Community Development 

2 Banking and Financial Institutions Act of 1994 (12 

3 U.S.C. 4702). 

4 (2) FUND.—The term ‘‘Fund’’ means the Com5 munity Development Financial Institutions Fund es6 tablished under section 104(a) of the Community 

7 Development Banking and Financial Institutions Act 

8 of 1994 (12 U.S.C. 4703(a)). 

9 (3) MINORITY; MINORITY LENDING INSTITU10 TION.—The terms ‘‘minority’’ and ‘‘minority lending 

11 institution’’ have the meanings given those terms 

12 under section 103 of the Community Development 

13 Banking and Financial Institutions Act of 1994 (12 

14 U.S.C. 4702), as amended by section 809 of this 

15 Act. 

16 SEC. 807. ENSURING DIVERSITY IN COMMUNITY BANKING. 

17 (a) SENSE OF CONGRESS ON FUNDING THE LOAN18 LOSS RESERVE FUND FOR SMALL DOLLAR LOANS.—The 

19 sense of Congress is the following: 

20 (1) The Community Development Financial In21 stitutions Fund (in this subsection referred to as the 

22 ‘‘CDFI Fund’’) is an agency of the Department of 

23 the Treasury, and was established by the Commu24 nity Development Banking and Financial Institu25 tions of 1994. The mission of the CDFI Fund is ‘‘to 

269 

•S 4818 IS

1 expand economic opportunity for underserved people 

2 and communities by supporting the growth and ca3 pacity of a national network of community develop4 ment lenders, investors, and financial service pro5 viders’’. A community development financial institu6 tion (in this subsection referred to as a ‘‘CDFI’’) is 

7 a specialized financial institution serving low-income 

8 communities and a Community Development Entity 

9 (in this subsection referred to as a ‘‘CDE’’) is a do10 mestic corporation or partnership that is an inter11 mediary vehicle for the provision of loans, invest12 ments, or financial counseling in low-income commu13 nities. The CDFI Fund certifies CDFIs and CDEs. 

14 Becoming a certified CDFI or CDE allows organiza15 tions to participate in various CDFI Fund programs 

16 as follows: 

17 (A) The Bank Enterprise Award Program, 

18 which provides FDIC-insured depository institu19 tions awards for a demonstrated increase in 

20 lending and investments in distressed commu21 nities and CDFIs. 

22 (B) The CDFI Program, which provides 

23 Financial and Technical Assistance awards to 

24 CDFIs to reinvest in the CDFI, and to build 

270 

•S 4818 IS

1 the capacity of the CDFI, including financing 

2 product development and loan loss reserves. 

3 (C) The Native American CDFI Assistance 

4 Program, which provides CDFIs and spon5 soring entities Financial and Technical Assist6 ance awards to increase lending and grow the 

7 number of CDFIs owned by Native Americans 

8 to help build capacity of such CDFIs. 

9 (D) The New Market Tax Credit Program, 

10 which provides tax credits for making equity in11 vestments in CDEs that stimulate capital in12 vestments in low-income communities. 

13 (E) The Capital Magnet Fund, which pro14 vides awards to CDFIs and nonprofit affordable 

15 housing organizations to finance affordable 

16 housing solutions and related economic develop17 ment activities. 

18 (F) The Bond Guarantee Program, a 

19 source of long-term, patient capital for CDFIs 

20 to expand lending and investment capacity for 

21 community and economic development purposes. 

22 (2) The Department of the Treasury is author23 ized to create multi-year grant programs designed to 

24 encourage low-to-moderate income individuals to es25 tablish accounts at federally insured banks, and to 

271 

•S 4818 IS

1 improve low-to-moderate income individuals’ access 

2 to such accounts on reasonable terms. 

3 (3) Under this authority, grants to participants 

4 in CDFI Fund programs may be used for loan-loss 

5 reserves and to establish small-dollar loan programs 

6 by subsidizing related losses. These grants also allow 

7 for the providing recipients with the financial coun8 seling and education necessary to conduct trans9 actions and manage their accounts. These loans pro10 vide low-cost alternatives to payday loans and other 

11 nontraditional forms of financing that often impose 

12 excessive interest rates and fees on borrowers, and 

13 lead millions of Americans to fall into debt traps. 

14 Small-dollar loans can only be made pursuant to 

15 terms, conditions, and practices that are reasonable 

16 for the individual consumer obtaining the loan. 

17 (4) Program participation is restricted to eligi18 ble institutions, which are limited to organizations 

19 listed in section 501(c)(3) of the Internal Revenue 

20 Code of 1986 and exempt from tax under 501(a) of 

21 such Code, federally insured depository institutions, 

22 community development financial institutions and 

23 State, local, or Tribal government entities. 

24 (5) Since its founding, the CDFI Fund has 

25 awarded over $3,300,000,000 to CDFIs and CDEs 

272 

•S 4818 IS

1 and has allocated $54,000,000,000 in tax credits 

2 and $1,510,000,000 in bond guarantees. According 

3 to the CDFI Fund, some programs attract as much 

4 as $10 in private capital for every $1 invested by the 

5 CDFI Fund. The Administration and the Congress 

6 should prioritize appropriation of funds for the loan 

7 loss reserve fund and technical assistance programs 

8 administered by the Community Development Finan9 cial Institution Fund. 

10 (b) DEFINITIONS.—In this section: 

11 (1) COMMUNITY DEVELOPMENT FINANCIAL IN12 STITUTION.—The term ‘‘community development fi13 nancial institution’’ has the meaning given under 

14 section 103 of the Community Development Banking 

15 and Financial Institutions Act of 1994 (12 U.S.C. 

16 4702). 

17 (2) MINORITY DEPOSITORY INSTITUTION.—The 

18 term ‘‘minority depository institution’’ has the 

19 meaning given under section 308 of the Financial 

20 Institutions Reform, Recovery, and Enforcement Act 

21 of 1989 (12 U.S.C. 1463 note). 

22 (c) ESTABLISHMENT OF IMPACT BANK DESIGNA23 TION.— 

24 (1) IN GENERAL.—Each Federal banking agen25 cy shall establish a program under which a deposiVerDate Sep 11 2014 20:21 Oct 31, 2020 Jkt 019200 PO 00000 Frm 00272 Fmt 6652 Sfmt 6201 E:\BILLS\S4818.IS S4818
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1 tory institution with total consolidated assets of less 

2 than $10,000,000,000 may elect to be designated as 

3 an impact bank if the total dollar value of the loans 

4 extended by such depository institution to low-in5 come borrowers is greater than or equal to 50 per6 cent of the assets of such bank. 

7 (2) NOTIFICATION OF ELIGIBILITY.—Based on 

8 data obtained through examinations of depository in9 stitutions, the appropriate Federal banking agency 

10 shall notify a depository institution if the institution 

11 is eligible to be designated as an impact bank. 

12 (3) APPLICATION.—Regardless of whether or 

13 not it has received a notice of eligibility under para14 graph (2), a depository institution may submit an 

15 application to the appropriate Federal banking agen16 cy— 

17 (A) requesting to be designated as an im18 pact bank; and 

19 (B) demonstrating that the depository in20 stitution meets the applicable qualifications. 

21 (4) LIMITATION ON ADDITIONAL DATA RE22 QUIREMENTS.—The Federal banking agencies may 

23 only impose additional data collection requirements 

24 on a depository institution under this subsection if 

25 such data is— 

274 

•S 4818 IS

1 (A) necessary to process an application 

2 submitted by the depository institution to be 

3 designated an impact bank; or 

4 (B) with respect to a depository institution 

5 that is designated as an impact bank, necessary 

6 to ensure the depository institution’s ongoing 

7 qualifications to maintain such designation. 

8 (5) REMOVAL OF DESIGNATION.—If the appro9 priate Federal banking agency determines that a de10 pository institution designated as an impact bank no 

11 longer meets the criteria for such designation, the 

12 appropriate Federal banking agency shall rescind 

13 the designation and notify the depository institution 

14 of such rescission. 

15 (6) RECONSIDERATION OF DESIGNATION; AP16 PEALS.—Under such procedures as the Federal 

17 banking agencies may establish, a depository institu18 tion may— 

19 (A) submit to the appropriate Federal 

20 banking agency a request to reconsider a deter21 mination that such depository institution no 

22 longer meets the criteria for the designation; or 

23 (B) file an appeal of such determination. 

24 (7) RULEMAKING.—Not later than 1 year after 

25 the date of the enactment of this Act, the Federal 

275 

•S 4818 IS

1 banking agencies shall jointly issue rules to carry 

2 out the requirements of this subsection, including by 

3 providing a definition of a low-income borrower. 

4 (8) REPORTS.—Each Federal banking agency 

5 shall submit an annual report to the Congress con6 taining a description of actions taken to carry out 

7 this subsection. 

8 (9) FEDERAL DEPOSIT INSURANCE ACT DEFINI9 TIONS.—In this subsection, the terms ‘‘depository 

10 institution’’, ‘‘appropriate Federal banking agency’’, 

11 and ‘‘Federal banking agency’’ have the meanings 

12 given such terms, respectively, in section 3 of the 

13 Federal Deposit Insurance Act (12 U.S.C. 1813). 

14 (d) MINORITY DEPOSITORIES ADVISORY COMMIT15 TEES.— 

16 (1) ESTABLISHMENT.—Each covered regulator 

17 shall establish an advisory committee to be called the 

18 ‘‘Minority Depositories Advisory Committee’’. 

19 (2) DUTIES.—Each Minority Depositories Advi20 sory Committee shall provide advice to the respective 

21 covered regulator on meeting the goals established 

22 by section 308 of the Financial Institutions Reform, 

23 Recovery, and Enforcement Act of 1989 (12 U.S.C. 

24 1463 note) to preserve the present number of cov25 ered minority institutions, preserve the minority 

276 

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1 character of minority-owned institutions in cases in2 volving mergers or acquisitions, provide technical as3 sistance, and encourage the creation of new covered 

4 minority institutions. The scope of the work of each 

5 such Minority Depositories Advisory Committee shall 

6 include an assessment of the current condition of 

7 covered minority institutions, what regulatory 

8 changes or other steps the respective agencies may 

9 be able to take to fulfill the requirements of such 

10 section 308, and other issues of concern to covered 

11 minority institutions. 

12 (3) MEMBERSHIP.— 

13 (A) IN GENERAL.—Each Minority Deposi14 tories Advisory Committee shall consist of no 

15 more than 10 members, who— 

16 (i) shall serve for one two-year term; 

17 (ii) shall serve as a representative of 

18 a depository institution or an insured cred19 it union with respect to which the respec20 tive covered regulator is the covered regu21 lator of such depository institution or in22 sured credit union; and 

23 (iii) shall not receive pay by reason of 

24 their service on the advisory committee, 

25 but may receive travel or transportation 

277 

•S 4818 IS

1 expenses in accordance with section 5703 

2 of title 5, United States Code. 

3 (B) DIVERSITY.—To the extent prac4 ticable, each covered regulator shall ensure that 

5 the members of the Minority Depositories Advi6 sory Committee of such agency reflect the di7 versity of covered minority institutions. 

8 (4) MEETINGS.— 

9 (A) IN GENERAL.—Each Minority Deposi10 tories Advisory Committee shall meet not less 

11 frequently than twice each year. 

12 (B) NOTICE AND INVITATIONS.—Each Mi13 nority Depositories Advisory Committee shall— 

14 (i) notify the Committee on Financial 

15 Services of the House of Representatives 

16 and the Committee on Banking, Housing, 

17 and Urban Affairs of the Senate in ad18 vance of each meeting of the Minority De19 positories Advisory Committee; and 

20 (ii) invite the attendance at each 

21 meeting of the Minority Depositories Advi22 sory Committee of— 

23 (I) one member of the majority 

24 party and one member of the minority 

25 party of the Committee on Financial 

278 

•S 4818 IS

1 Services of the House of Representa2 tives and the Committee on Banking, 

3 Housing, and Urban Affairs of the 

4 Senate; and 

5 (II) one member of the majority 

6 party and one member of the minority 

7 party of any relevant subcommittees 

8 of such committees. 

9 (5) NO TERMINATION OF ADVISORY COMMIT10 TEES.—The termination requirements under section 

11 14 of the Federal Advisory Committee Act (5 U.S.C. 

12 App.) shall not apply to a Minority Depositories Ad13 visory Committee established pursuant to this sub14 section. 

15 (6) DEFINITIONS.—In this subsection: 

16 (A) COVERED REGULATOR.—The term 

17 ‘‘covered regulator’’ means the Comptroller of 

18 the Currency, the Board of Governors of the 

19 Federal Reserve System, the Federal Deposit 

20 Insurance Corporation, and the National Credit 

21 Union Administration. 

22 (B) COVERED MINORITY INSTITUTION.— 

23 The term ‘‘covered minority institution’’ means 

24 a minority depository institution (as defined in 

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•S 4818 IS

1 form, Recovery, and Enforcement Act of 1989 

2 (12 U.S.C. 1463 note)). 

3 (C) DEPOSITORY INSTITUTION.—The term 

4 ‘‘depository institution’’ has the meaning given 

5 that term in section 3 of the Federal Deposit 

6 Insurance Act (12 U.S.C. 1813). 

7 (D) INSURED CREDIT UNION.—The term 

8 ‘‘insured credit union’’ has the meaning given 

9 that term in section 101 of the Federal Credit 

10 Union Act (12 U.S.C. 1752). 

11 (7) TECHNICAL AMENDMENT.—Section 308(b) 

12 of the Financial Institutions Reform, Recovery, and 

13 Enforcement Act of 1989 (12 U.S.C. 1463 note) is 

14 amended by adding at the end the following new 

15 paragraph: 

16 ‘‘(3) DEPOSITORY INSTITUTION.—The term ‘de17 pository institution’ means an ‘insured depository in18 stitution’ (as defined in section 3 of the Federal De19 posit Insurance Act (12 U.S.C. 1813)) and an in20 sured credit union (as defined in section 101 of the 

21 Federal Credit Union Act (12 U.S.C. 1752)).’’. 

22 (e) FEDERAL DEPOSITS IN MINORITY DEPOSITORY

23 INSTITUTIONS.— 

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1 (1) IN GENERAL.—Section 308 of the Financial 

2 Institutions Reform, Recovery, and Enforcement Act 

3 of 1989 (12 U.S.C. 1463 note) is amended— 

4 (A) by adding at the end the following new 

5 subsection: 

6 ‘‘(d) FEDERAL DEPOSITS.—The Secretary of the 

7 Treasury shall ensure that deposits made by Federal agen8 cies in minority depository institutions and impact banks 

9 are collateralized or insured, as determined by the Sec10 retary. Such deposits shall include reciprocal deposits as 

11 defined in section 337.6(e)(2)(v) of title 12, Code of Fed12 eral Regulations (as in effect on March 6, 2019).’’; and 

13 (B) in subsection (b), as amended by sub14 section (d)(7) of this section, by adding at the 

15 end the following new paragraph: 

16 ‘‘(4) IMPACT BANK.—The term ‘impact bank’ 

17 means a depository institution designated by the ap18 propriate Federal banking agency pursuant to sec19 tion 807(c) of the Promoting and Advancing Com20 munities of Color through Inclusive Lending Act.’’. 

21 (2) TECHNICAL AMENDMENTS.—Section 308(b) 

22 of the Financial Institutions Reform, Recovery, and 

23 Enforcement Act of 1989 (12 U.S.C. 1463 note) is 

24 amended— 

281 

•S 4818 IS

1 (A) in the matter preceding paragraph (1), 

2 by striking ‘‘section—’’ and inserting ‘‘sec3 tion:’’; and 

4 (B) in the paragraph heading for para5 graph (1), by striking ‘‘FINANCIAL’’ and insert6 ing ‘‘DEPOSITORY’’. 

7 (f) MINORITY BANK DEPOSIT PROGRAM.— 

8 (1) IN GENERAL.—Section 1204 of the Finan9 cial Institutions Reform, Recovery, and Enforcement 

10 Act of 1989 (12 U.S.C. 1811 note) is amended to 

11 read as follows: 

12 ‘‘SEC. 1204. EXPANSION OF USE OF MINORITY DEPOSITORY 

13 INSTITUTIONS. 

14 ‘‘(a) MINORITY BANK DEPOSIT PROGRAM.— 

15 ‘‘(1) ESTABLISHMENT.—There is established a 

16 program to be known as the ‘Minority Bank Deposit 

17 Program’ to expand the use of minority depository 

18 institutions. 

19 ‘‘(2) ADMINISTRATION.—The Secretary of the 

20 Treasury, acting through the Bureau of the Fiscal 

21 Service, shall— 

22 ‘‘(A) on application by a depository institu23 tion or credit union, certify whether such depos24 itory institution or credit union is a minority 

25 depository institution; 

282 

•S 4818 IS

1 ‘‘(B) maintain and publish a list of all de2 pository institutions and credit unions that have 

3 been certified pursuant to subparagraph (A); 

4 and 

5 ‘‘(C) periodically distribute the list de6 scribed in subparagraph (B) to— 

7 ‘‘(i) all Federal departments and 

8 agencies; 

9 ‘‘(ii) interested State and local govern10 ments; and 

11 ‘‘(iii) interested private sector compa12 nies. 

13 ‘‘(3) INCLUSION OF CERTAIN ENTITIES ON

14 LIST.—A depository institution or credit union that, 

15 on the date of the enactment of the Promoting and 

16 Advancing Communities of Color through Inclusive 

17 Lending Act, has a current certification from the 

18 Secretary of the Treasury stating that such deposi19 tory institution or credit union is a minority deposi20 tory institution shall be included on the list de21 scribed under paragraph (2)(B). 

22 ‘‘(b) EXPANDED USE AMONG FEDERAL DEPART23 MENTS AND AGENCIES.— 

24 ‘‘(1) IN GENERAL.—Not later than 1 year after 

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1 section (a), the head of each Federal department or 

2 agency shall develop and implement standards and 

3 procedures to prioritize, to the maximum extent pos4 sible as permitted by law and consistent with prin5 ciples of sound financial management, the use of mi6 nority depository institutions to hold the deposits of 

7 each such department or agency. 

8 ‘‘(2) REPORT TO CONGRESS.—Not later than 2 

9 years after the establishment of the program de10 scribed in subsection (a), and annually thereafter, 

11 the head of each Federal department or agency shall 

12 submit to Congress a report on the actions taken to 

13 increase the use of minority depository institutions 

14 to hold the deposits of each such department or 

15 agency. 

16 ‘‘(c) DEFINITIONS.—For purposes of this section: 

17 ‘‘(1) CREDIT UNION.—The term ‘credit union’ 

18 has the meaning given the term ‘insured credit 

19 union’ in section 101 of the Federal Credit Union 

20 Act (12 U.S.C. 1752). 

21 ‘‘(2) DEPOSITORY INSTITUTION.—The term ‘de22 pository institution’ has the meaning given that term 

23 in section 3 of the Federal Deposit Insurance Act 

24 (12 U.S.C. 1813). 

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•S 4818 IS

1 ‘‘(3) MINORITY DEPOSITORY INSTITUTION.— 

2 The term ‘minority depository institution’ has the 

3 meaning given that term under section 308 of this 

4 Act.’’. 

5 (2) CONFORMING AMENDMENTS.—The fol6 lowing provisions are amended by inserting ‘‘, as in 

7 effect on the day before the date of enactment of the 

8 Promoting and Advancing Communities of Color 

9 through Inclusive Lending Act’’ after ‘‘section 

10 1204(c)(3) of the Financial Institutions Reform, Re11 covery, and Enforcement Act of 1989’’: 

12 (A) Section 808(b)(3) of the Community 

13 Reinvestment Act of 1977 (12 U.S.C. 

14 2907(b)(3)). 

15 (B) Section 40(g)(1)(B) of the Federal De16 posit Insurance Act (12 U.S.C. 

17 1831q(g)(1)(B)). 

18 (C) Section 704B(h)(4) of the Equal Cred19 it Opportunity Act (15 U.S.C. 1691c–2(h)(4)). 

20 (g) DIVERSITY REPORT AND BEST PRACTICES.— 

21 (1) ANNUAL REPORT.—Each covered regulator 

22 shall submit to Congress an annual report on diver23 sity including the following: 

24 (A) Data, based on voluntary self-identi25 fication, on the racial, ethnic, and gender comVerDate Sep 11 2014 20:21 Oct 31, 2020 Jkt 019200 PO 00000 Frm 00284 Fmt 6652 Sfmt 6201 E:\BILLS\S4818.IS S4818
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1 position of the examiners of each covered regu2 lator, disaggregated by length of time served as 

3 an examiner. 

4 (B) The status of any examiners of cov5 ered regulators, based on voluntary self-identi6 fication, as a veteran. 

7 (C) Whether any covered regulator, as of 

8 the date on which the report required under 

9 this section is submitted, has adopted a policy, 

10 plan, or strategy to promote racial, ethnic, and 

11 gender diversity among examiners of the cov12 ered regulator. 

13 (D) Whether any special training is devel14 oped and provided for examiners related specifi15 cally to working with depository institutions 

16 and credit unions that serve communities that 

17 are predominantly minorities, low income, or 

18 rural, and the key focus of such training. 

19 (2) BEST PRACTICES.—Each Office of Minority 

20 and Women Inclusion of a covered regulator shall 

21 develop, provide to the head of the covered regulator, 

22 and make publicly available best practices— 

23 (A) for increasing the diversity of can24 didates applying for examiner positions, includ25 ing through outreach efforts to recruit diverse 

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1 candidates to apply for entry-level examiner po2 sitions; and 

3 (B) for retaining and providing fair consid4 eration for promotions within the examiner 

5 staff for purposes of achieving diversity among 

6 examiners. 

7 (3) COVERED REGULATOR DEFINED.—In this 

8 subsection, the term ‘‘covered regulator’’ means the 

9 Comptroller of the Currency, the Board of Gov10 ernors of the Federal Reserve System, the Federal 

11 Deposit Insurance Corporation, and the National 

12 Credit Union Administration. 

13 (h) INVESTMENTS IN MINORITY DEPOSITORY INSTI14 TUTIONS AND IMPACT BANKS.— 

15 (1) CONTROL FOR CERTAIN INSTITUTIONS.— 

16 Section 7(j)(8)(B) of the Federal Deposit Insurance 

17 Act (12 U.S.C. 1817(j)(8)(B)) is amended to read 

18 as follows: 

19 ‘‘(B) ‘control’ means the power, directly or indi20 rectly— 

21 ‘‘(i) to direct the management or policies 

22 of an insured depository institution; or 

23 ‘‘(ii)(I) to vote 25 per centum or more of 

24 any class of voting securities of an insured de25 pository institution; or 

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•S 4818 IS

1 ‘‘(II) with respect to an insured depository 

2 institution that is an impact bank (as des3 ignated pursuant to section 807(c) of the Pro4 moting and Advancing Communities of Color 

5 through Inclusive Lending Act) or a minority 

6 depository institution (as defined in section 

7 308(b) of the Financial Institutions Reform, 

8 Recovery, and Enforcement Act of 1989 (12 

9 U.S.C. 1463 note)), of an individual to vote 30 

10 percent or more of any class of voting securities 

11 of such an impact bank or a minority deposi12 tory institution.’’. 

13 (2) RULEMAKING.—The Federal banking agen14 cies (as defined in section 3 of the Federal Deposit 

15 Insurance Act (12 U.S.C. 1813)) shall jointly issue 

16 rules for de novo minority depository institutions to 

17 allow 3 years to meet the capital requirements other18 wise applicable to minority depository institutions 

19 (as defined in section 308(b) of the Financial Insti20 tutions Reform, Recovery, and Enforcement Act of 

21 1989 (12 U.S.C. 1463 note)). 

22 (3) REPORT.—Not later than 1 year after the 

23 date of the enactment of this Act, the Federal bank24 ing agencies shall jointly submit to Congress a re25 port on— 

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1 (A) the principal causes for the low num2 ber of de novo minority depository institutions 

3 during the 10-year period preceding the date of 

4 the report; 

5 (B) the main challenges to the creation of 

6 de novo minority depository institutions; and 

7 (C) regulatory and legislative consider8 ations to promote the establishment of de novo 

9 minority depository institutions. 

10 (i) REPORT ON COVERED MENTOR-PROTEGE PRO11 GRAMS.— 

12 (1) REPORT.—Not later than 6 months after 

13 the date of the enactment of this Act and annually 

14 thereafter, the Secretary of the Treasury shall sub15 mit to Congress a report on participants in a cov16 ered mentor-protege program, including— 

17 (A) an analysis of outcomes of such pro18 gram; 

19 (B) the number of minority depository in20 stitutions that are eligible to participate in such 

21 program but do not have large financial institu22 tion mentors; and 

23 (C) recommendations for how to match 

24 such minority depository institutions with large 

25 financial institution mentors. 

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1 (2) DEFINITIONS.—In this subsection: 

2 (A) COVERED MENTOR-PROTEGE PRO3 GRAM.—The term ‘‘covered mentor-protege pro4 gram’’ means a mentor-protege program estab5 lished by the Secretary of the Treasury pursu6 ant to section 45 of the Small Business Act (15 

7 U.S.C. 657r). 

8 (B) LARGE FINANCIAL INSTITUTION.—The 

9 term ‘‘large financial institution’’ means any 

10 entity— 

11 (i) regulated by the Comptroller of the 

12 Currency, the Board of Governors of the 

13 Federal Reserve System, the Federal De14 posit Insurance Corporation, or the Na15 tional Credit Union Administration; and 

16 (ii) that has total consolidated assets 

17 greater than or equal to $50,000,000,000. 

18 (C) MINORITY DEPOSITORY INSTITU19 TION.—The term ‘‘minority depository institu20 tion’’ has the meaning given the term in section 

21 308(b) of the Financial Institutions Reform, 

22 Recovery, and Enforcement Act of 1989 (12 

23 U.S.C. 1463 note). 

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1 (j) CUSTODIAL DEPOSIT PROGRAM FOR COVERED

2 MINORITY DEPOSITORY INSTITUTIONS AND IMPACT

3 BANKS.— 

4 (1) IN GENERAL.—Not later than 1 year after 

5 the date of the enactment of this Act, the Secretary 

6 of the Treasury shall issue rules establishing a cus7 todial deposit program under which a covered bank 

8 may receive deposits from a qualifying account. 

9 (2) REQUIREMENTS.—In issuing rules under 

10 paragraph (1), the Secretary of the Treasury shall— 

11 (A) consult with the Federal banking agen12 cies; 

13 (B) ensure each covered bank participating 

14 in the program established under this sub15 section— 

16 (i) has appropriate policies relating to 

17 management of assets, including measures 

18 to ensure the safety and soundness of each 

19 such covered bank; and 

20 (ii) is compliant with applicable law; 

21 and 

22 (C) ensure, to the extent practicable, that 

23 the rules do not conflict with goals described in 

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1 form, Recovery, and Enforcement Act of 1989 

2 (12 U.S.C. 1463 note). 

3 (3) LIMITATIONS.— 

4 (A) DEPOSITS.—With respect to the funds 

5 of an individual qualifying account, an entity 

6 may not deposit an amount greater than the in7 sured amount in a single covered bank. 

8 (B) TOTAL DEPOSITS.—The total amount 

9 of funds deposited in a covered bank under the 

10 custodial deposit program described under this 

11 subsection may not exceed the lesser of— 

12 (i) 10 percent of the average amount 

13 of deposits held by such covered bank in 

14 the previous quarter; or 

15 (ii) $100,000,000 (as adjusted for in16 flation). 

17 (4) REPORT.—Each quarter, the Secretary of 

18 the Treasury shall submit to Congress a report on 

19 the implementation of the program established under 

20 this subsection, including information identifying 

21 participating covered banks and the total amount of 

22 deposits received by covered banks under the pro23 gram. 

24 (5) DEFINITIONS.—In this subsection: 

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1 (A) APPROPRIATE FEDERAL BANKING

2 AGENCY; FEDERAL BANKING AGENCY.—The 

3 terms ‘‘appropriate Federal banking agency’’ 

4 and ‘‘Federal banking agencies’’ have the mean5 ings given those terms in section 3 of the Fed6 eral Deposit Insurance Act (12 U.S.C. 1813). 

7 (B) COVERED BANK.—The term ‘‘covered 

8 bank’’ means— 

9 (i) a minority depository institution 

10 that is well capitalized, as defined by the 

11 appropriate Federal banking agency; or 

12 (ii) a depository institution designated 

13 pursuant to subsection (c) that is well cap14 italized, as defined by the appropriate Fed15 eral banking agency. 

16 (C) INSURED AMOUNT.—The term ‘‘in17 sured amount’’ means the amount that is the 

18 greater of— 

19 (i) the standard maximum deposit in20 surance amount (as defined in section 

21 11(a)(1)(E) of the Federal Deposit Insur22 ance Act (12 U.S.C. 1821(a)(1)(E))); or 

23 (ii) such higher amount negotiated be24 tween the Secretary of the Treasury and 

25 the Federal Deposit Insurance Corporation 

293 

•S 4818 IS

1 under which the Corporation will insure all 

2 deposits of such higher amount. 

3 (D) MINORITY DEPOSITORY INSTITU4 TION.—The term ‘‘minority depository institu5 tion’’ has the meaning given the term in section 

6 308(b) of the Financial Institutions Reform, 

7 Recovery, and Enforcement Act of 1989 (12 

8 U.S.C. 1463 note). 

9 (E) QUALIFYING ACCOUNT.—The term 

10 ‘‘qualifying account’’ means any account estab11 lished in the Department of the Treasury 

12 that— 

13 (i) is controlled by the Secretary; and 

14 (ii) is expected to maintain a balance 

15 greater than $200,000,000 for the fol16 lowing 24-month period. 

17 (k) STREAMLINED COMMUNITY DEVELOPMENT FI18 NANCIAL INSTITUTION APPLICATIONS AND REPORTING.— 

19 (1) APPLICATION PROCESSES.—Not later than 

20 12 months after the date of the enactment of this 

21 Act and with respect to any person having assets 

22 under $3,000,000,000 that submits an application 

23 for deposit insurance with the Federal Deposit In24 surance Corporation that could also become a com25 munity development financial institution (as defined 

294 

•S 4818 IS

1 in section 103 of the Community Development 

2 Banking and Financial Institutions Act of 1994 (12 

3 U.S.C. 4702)), the Federal Deposit Insurance Cor4 poration, in consultation with the Administrator of 

5 the Community Development Financial Institutions 

6 Fund, shall— 

7 (A) develop systems and procedures to 

8 record necessary information to allow the Ad9 ministrator to conduct preliminary analysis for 

10 such person to also become a community devel11 opment financial institution; and 

12 (B) develop procedures to streamline the 

13 application and annual certification processes 

14 and to reduce costs for such person to become, 

15 and maintain certification as, a community de16 velopment financial institution. 

17 (2) IMPLEMENTATION REPORT.—Not later than 

18 18 months after the date of the enactment of this 

19 Act, the Federal Deposit Insurance Corporation 

20 shall submit to Congress a report describing the sys21 tems and procedures required under paragraph (1). 

22 (3) ANNUAL REPORT.— 

23 (A) IN GENERAL.—Section 17(a)(1) of the 

24 Federal Deposit Insurance Act (12 U.S.C. 

25 1827(a)(1)) is amended— 

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1 (i) in subparagraph (E), by striking 

2 ‘‘and’’ at the end; 

3 (ii) by redesignating subparagraph 

4 (F) as subparagraph (G); and 

5 (iii) by inserting after subparagraph 

6 (E) the following new subparagraph: 

7 ‘‘(F) applicants for deposit insurance that 

8 could also become a community development fi9 nancial institution (as defined in section 103 of 

10 the Community Development Banking and Fi11 nancial Institutions Act of 1994 (12 U.S.C. 

12 4702)), a minority depository institution (as de13 fined in section 308 of the Financial Institu14 tions Reform, Recovery, and Enforcement Act 

15 of 1989 (12 U.S.C. 1463 note)), or an impact 

16 bank (as designated pursuant to section 807(c) 

17 of the Promoting and Advancing Communities 

18 of Color through Inclusive Lending Act); and’’. 

19 (B) APPLICATION.—The amendment made 

20 by this paragraph shall apply with respect to 

21 the first report to be submitted after the date 

22 that is 2 years after the date of the enactment 

23 of this Act. 

24 (l) TASK FORCE ON LENDING TO SMALL BUSINESS

25 CONCERNS.— 

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1 (1) DEFINITIONS.—In this subsection: 

2 (A) ADMINISTRATION; ADMINISTRATOR.— 

3 The terms ‘‘Administration’’ and ‘‘Adminis4 trator’’ mean the Small Business Administra5 tion and the Administrator thereof, respectively. 

6 (B) COMMUNITY DEVELOPMENT FINAN7 CIAL INSTITUTION.—The term ‘‘community de8 velopment financial institution’’ has the mean9 ing given the term in section 103 of the Com10 munity Development Banking and Financial In11 stitutions Act of 1994 (12 U.S.C. 4702). 

12 (C) IMPACT BANK.—The term ‘‘impact 

13 bank’’ means a depository institution des14 ignated by the appropriate Federal banking 

15 agency pursuant to section 807(c) of the Pro16 moting and Advancing Communities of Color 

17 through Inclusive Lending Act. 

18 (D) MINORITY DEPOSITORY INSTITU19 TION.—The term ‘‘minority depository institu20 tion’’ has the meaning given the term in section 

21 308 of the Financial Institutions Reform, Re22 covery, and Enforcement Act of 1989 (12 

23 U.S.C. 1463 note). 

24 (E) SMALL BUSINESS CONCERN.—The 

25 term ‘‘small business concern’’ has the meaning 

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1 given the term in section 3(a) of the Small 

2 Business Act (15 U.S.C. 632(a)). 

3 (2) TASK FORCE.—Not later than 6 months 

4 after the date of the enactment of this Act, the Ad5 ministrator shall establish a task force to examine 

6 methods for improving relationships between the Ad7 ministration and community development financial 

8 institutions, minority depository institutions, and im9 pact banks to increase the volume of loans provided 

10 by such institutions to small business concerns. 

11 (3) REPORT TO CONGRESS.—Not later than 18 

12 months after the establishment of the task force de13 scribed in paragraph (2), the Administrator shall 

14 submit to Congress a report on the findings of the 

15 task force. 

16 SEC. 808. ESTABLISHMENT OF FINANCIAL AGENT PART17 NERSHIP PROGRAM. 

18 (a) IN GENERAL.—Section 308 of the Financial In19 stitutions Reform, Recovery, and Enforcement Act of 

20 1989 (12 U.S.C. 1463 note), as amended by section 

21 806(e), is further amended by adding at the end the fol22 lowing new subsection: 

23 ‘‘(e) FINANCIAL AGENT PARTNERSHIP PROGRAM.— 

24 ‘‘(1) IN GENERAL.—The Secretary of the 

25 Treasury shall establish a program to be known as 

298 

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1 the ‘Financial Agent Partnership Program’ (in this 

2 subsection referred to as the ‘Program’) under which 

3 a financial agent designated by the Secretary or a 

4 large financial institution may serve as a mentor, 

5 under guidance or regulations prescribed by the Sec6 retary, to a small financial institution to allow such 

7 small financial institution— 

8 ‘‘(A) to be prepared to perform as a finan9 cial agent; or 

10 ‘‘(B) to improve capacity to provide serv11 ices to the customers of the small financial in12 stitution. 

13 ‘‘(2) OUTREACH.—The Secretary shall hold 

14 outreach events to promote the participation of fi15 nancial agents, large financial institutions, and small 

16 financial institutions in the Program at least once a 

17 year. 

18 ‘‘(3) FINANCIAL PARTNERSHIPS.— 

19 ‘‘(A) IN GENERAL.—Any large financial in20 stitution participating in a program with the 

21 Department of the Treasury, if not already re22 quired to include a small financial institution, 

23 shall offer not more than 5 percent of every 

24 contract under that program to a small finan25 cial institution. 

299 

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1 ‘‘(B) ACCEPTANCE OF RISK.—As a re2 quirement of participation in a contract de3 scribed under subparagraph (A), a small finan4 cial institution shall accept the risk of the 

5 transaction equivalent to the percentage of any 

6 fee the institution receives under the contract. 

7 ‘‘(C) PARTNER.—A large financial institu8 tion partner may work with small financial in9 stitutions, if necessary, to train professionals to 

10 understand any risks involved in a contract 

11 under the Program. 

12 ‘‘(D) INCREASED LIMIT FOR CERTAIN IN13 STITUTIONS.—With respect to a program de14 scribed under subparagraph (A), if the Sec15 retary of the Treasury determines that it would 

16 be appropriate and would encourage capacity 

17 building, the Secretary may alter the require18 ments under subparagraph (A) to require 

19 both— 

20 ‘‘(i) a higher percentage of the con21 tract be offered to a small financial institu22 tion; and 

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1 nancial institution or a minority depository 

2 institution. 

3 ‘‘(4) EXCLUSION.—The Secretary shall issue 

4 guidance or regulations to establish a process under 

5 which a financial agent, large financial institution, 

6 or small financial institution may be excluded from 

7 participation in the Program. 

8 ‘‘(5) REPORT.—The Office of Minority and 

9 Women Inclusion of the Department of the Treasury 

10 shall include in the report submitted to Congress 

11 under section 342(e) of the Dodd-Frank Wall Street 

12 Reform and Consumer Protection Act (12 U.S.C. 

13 5452(e)) information pertaining to the Program, in14 cluding— 

15 ‘‘(A) the number of financial agents, large 

16 financial institutions, and small financial insti17 tutions participating in the Program; and 

18 ‘‘(B) the number of outreach events de19 scribed in paragraph (2) held during the year 

20 covered by such report. 

21 ‘‘(6) DEFINITIONS.—In this subsection: 

22 ‘‘(A) COMMUNITY DEVELOPMENT FINAN23 CIAL INSTITUTION.—The term ‘community de24 velopment financial institution’ has the meaning 

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1 munity Development Banking and Financial In2 stitutions Act of 1994 (12 U.S.C. 4702). 

3 ‘‘(B) FINANCIAL AGENT.—The term ‘fi4 nancial agent’ means any national banking as5 sociation designated by the Secretary of the 

6 Treasury to be employed as a financial agent of 

7 the Government. 

8 ‘‘(C) LARGE FINANCIAL INSTITUTION.— 

9 The term ‘large financial institution’ means any 

10 entity regulated by the Comptroller of the Cur11 rency, the Board of Governors of the Federal 

12 Reserve System, the Federal Deposit Insurance 

13 Corporation, or the National Credit Union Ad14 ministration that has total consolidated assets 

15 greater than or equal to $50,000,000,000. 

16 ‘‘(D) SMALL FINANCIAL INSTITUTION.— 

17 The term ‘small financial institution’ means— 

18 ‘‘(i) any entity regulated by the 

19 Comptroller of the Currency, the Board of 

20 Governors of the Federal Reserve System, 

21 the Federal Deposit Insurance Corpora22 tion, or the National Credit Union Admin23 istration that has total consolidated assets 

24 of not more than $2,000,000,000; or 

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1 ‘‘(ii) a minority depository institu2 tion.’’. 

3 (b) EFFECTIVE DATE.—This section and the amend4 ments made by this section shall take effect 90 days after 

5 the date of the enactment of this Act. 

6 SEC. 809. STRENGTHENING MINORITY LENDING INSTITU7 TIONS. 

8 (a) MINORITY LENDING INSTITUTION SET-ASIDE IN

9 PROVIDING ASSISTANCE.— 

10 (1) IN GENERAL.—Section 108 of the Commu11 nity Development Banking and Financial Institu12 tions Act of 1994 (12 U.S.C. 4707) is amended by 

13 adding at the end the following: 

14 ‘‘(i) MINORITY LENDING INSTITUTION SET-ASIDE IN

15 PROVIDING ASSISTANCE.—Notwithstanding any other 

16 provision of law, in providing any assistance, the Fund 

17 shall reserve 40 percent of such assistance for minority 

18 lending institutions.’’. 

19 (2) DEFINITIONS.— 

20 (A) IN GENERAL.—Section 103 of the 

21 Community Development Banking and Finan22 cial Institutions Act of 1994 (12 U.S.C. 4702) 

23 is amended by adding at the end the following: 

24 ‘‘(22) MINORITY LENDING INSTITUTION DEFI25 NITIONS.— 

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1 ‘‘(A) MINORITY.—The term ‘minority’ 

2 means any Black American, Hispanic Amer3 ican, Asian American, Native American, Native 

4 Alaskan, Native Hawaiian, or Pacific Islander. 

5 ‘‘(B) MINORITY LENDING INSTITUTION.— 

6 The term ‘minority lending institution’ means a 

7 community development financial institution— 

8 ‘‘(i) with respect to which a majority 

9 of the total number of loans and a major10 ity of the value of investments of the com11 munity development financial institution 

12 are directed at minorities and other tar13 geted populations; 

14 ‘‘(ii) that is a minority depository in15 stitution, as defined under section 308 of 

16 the Financial Institutions Reform, Recov17 ery, and Enforcement Act of 1989 (12 

18 U.S.C. 1463 note), or otherwise considered 

19 to be a minority depository institution by 

20 the appropriate Federal banking agency; or 

21 ‘‘(iii) that is 51 percent owned by 1 or 

22 more socially and economically disadvan23 taged individuals. 

24 ‘‘(C) ADDITIONAL DEFINITIONS.—In this 

25 paragraph, the terms ‘other targeted popuVerDate Sep 11 2014 20:21 Oct 31, 2020 Jkt 019200 PO 00000 Frm 00303 Fmt 6652 Sfmt 6201 E:\BILLS\S4818.IS S4818
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1 lations’ and ‘socially and economically disadvan2 taged individual’ shall have the meaning given 

3 those terms by the Administrator.’’. 

4 (B) TEMPORARY SAFE HARBOR FOR CER5 TAIN INSTITUTIONS.—A community develop6 ment financial institution that is a minority de7 pository institution listed in the Federal De8 posit Insurance Corporation’s Minority Deposi9 tory Institutions List published for the Second 

10 Quarter 2020 shall be deemed a ‘‘minority lend11 ing institution’’ under paragraph (22) of section 

12 103 of the Community Development Banking 

13 and Financial Institutions Act of 1994 (12 

14 U.S.C. 4702), as added by subparagraph (A), 

15 for purposes of— 

16 (i) any program carried out using ap17 propriations authorized for the Community 

18 Development Financial Institutions Fund 

19 under section 806; and 

20 (ii) the Neighborhood Capital Invest21 ment Program established under section 

22 4003(i) of the CARES Act. 

23 (b) OFFICE OF MINORITY LENDING INSTITU24 TIONS.—Section 104 of the Community Development 

25 Banking and Financial Institutions Act of 1994 (12 

305 

•S 4818 IS

1 U.S.C. 4703) is amended by adding at the end the fol2 lowing: 

3 ‘‘(l) OFFICE OF MINORITY LENDING INSTITU4 TIONS.— 

5 ‘‘(1) ESTABLISHMENT.—There is established 

6 within the Fund an Office of Minority Lending In7 stitutions, which shall oversee assistance provided by 

8 the Fund to minority lending institutions. 

9 ‘‘(2) DEPUTY DIRECTOR.—The head of the Of10 fice shall be the Deputy Director of Minority Lend11 ing Institutions, who shall report directly to the Ad12 ministrator.’’. 

13 (c) REPORTING ON MINORITY LENDING INSTITU14 TIONS.—Section 117 of the Community Development 

15 Banking and Financial Institutions Act of 1994 (12 

16 U.S.C. 4716) is amended by adding at the end the fol17 lowing: 

18 ‘‘(g) REPORTING ON MINORITY LENDING INSTITU19 TIONS.—Each report required under subsection (a) shall 

20 include a description of the extent to which assistance 

21 from the Fund is provided to minority lending institu22 tions.’’. 

23 (d) SUBMISSION OF DATA RELATING TO DIVERSITY

24 BY COMMUNITY DEVELOPMENT FINANCIAL INSTITU25 TIONS.—Section 104 of the Community Development 

306 

•S 4818 IS

1 Banking and Financial Institutions Act of 1994 (12 

2 U.S.C. 4703) is amended by adding at the end the fol3 lowing: 

4 ‘‘(l) SUBMISSION OF DATA RELATING TO DIVER5 SITY.— 

6 ‘‘(1) DEFINITIONS.—In this subsection— 

7 ‘‘(A) the term ‘executive officer’ has the 

8 meaning given that term in section 230.501(f) 

9 of title 17, Code of Federal Regulations, as in 

10 effect on the date of enactment of this sub11 section; and 

12 ‘‘(B) the term ‘veteran’ has the meaning 

13 given that term in section 101 of title 38, 

14 United States Code. 

15 ‘‘(2) SUBMISSION OF DISCLOSURE.—Each Fund 

16 applicant and recipient shall provide the following: 

17 ‘‘(A) Data, based on voluntary self-identi18 fication, on the racial, ethnic, and gender com19 position of— 

20 ‘‘(i) the board of directors of the insti21 tution; 

22 ‘‘(ii) nominees for the board of direc23 tors of the institution; and 

24 ‘‘(iii) the executive officers of the in25 stitution. 

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•S 4818 IS

1 ‘‘(B) The status of any member of the 

2 board of directors of the institution, any nomi3 nee for the board of directors of the institution, 

4 or any executive officer of the institution, based 

5 on voluntary self-identification, as a veteran. 

6 ‘‘(C) Whether the board of directors of the 

7 institution, or any committee of that board of 

8 directors, has, as of the date on which the insti9 tution makes a disclosure under this paragraph, 

10 adopted any policy, plan, or strategy to promote 

11 racial, ethnic, and gender diversity among— 

12 ‘‘(i) the board of directors of the insti13 tution; 

14 ‘‘(ii) nominees for the board of direc15 tors of the institution; or 

16 ‘‘(iii) the executive officers of the in17 stitution. 

18 ‘‘(3) ANNUAL REPORT.—Not later than 18 

19 months after the date of enactment of this sub20 section, and annually thereafter, the Fund shall sub21 mit to the Committee on Banking, Housing, and 

22 Urban Affairs of the Senate and the Committee on 

23 Financial Services of the House of Representatives, 

24 and make publicly available on the website of the 

25 Fund, a report— 

308 

•S 4818 IS

1 ‘‘(A) on the data and trends of the diver2 sity information made available pursuant to 

3 paragraph (2); and 

4 ‘‘(B) containing all administrative or legis5 lative recommendations of the Fund to enhance 

6 the implementation of this title or to promote 

7 diversity and inclusion within community devel8 opment financial institutions.’’. 

9 SEC. 810. CDFI BOND GUARANTEE REFORM. 

10 Effective October 1, 2020, section 114A(e)(2)(B) of 

11 the Community Development Banking and Financial In12 stitutions Act of 1994 (12 U.S.C. 4713a(e)(2)(B)) is 

13 amended by striking ‘‘$100,000,000’’ and inserting 

14 ‘‘$50,000,000’’. 

15 SEC. 811. REPORTS. 

16 (a) IN GENERAL.—The Secretary of the Treasury 

17 shall provide to the appropriate committees of Congress— 

18 (1) within 30 days of the end of each month 

19 commencing with the first month in which trans20 actions are made under a program established under 

21 this title or the amendments made by this title, a 

22 written report describing all of the transactions 

23 made during the reporting period pursuant to the 

24 authorities granted under this title or the amend25 ments made by this title; and 

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1 (2) after the end of March and the end of Sep2 tember, commencing March 31, 2021, a written re3 port on all projected costs and liabilities, all oper4 ating expenses, including compensation for financial 

5 agents, and all transactions made by the Community 

6 Development Financial Institutions Fund, including 

7 participating institutions and amounts each institu8 tion has received under each program described in 

9 paragraph (1). 

10 (b) BREAKDOWN OF FUNDS.—Each report required 

11 under subsection (a) shall specify the amount of funds 

12 under each program described under subsection (a)(1) 

13 that went to— 

14 (1) minority depository institutions that are de15 pository institutions; 

16 (2) minority depository institutions that are 

17 credit unions; 

18 (3) minority lending institutions; 

19 (4) community development financial institution 

20 loan funds; 

21 (5) community development financial institu22 tions that are depository institutions; and 

23 (6) community development financial institu24 tions that are credit unions. 

25 (c) DEFINITIONS.—In this section: 

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1 (1) APPROPRIATE COMMITTEES OF CON2 GRESS.—The term ‘‘appropriate committees of Con3 gress’’ means the Committee on Financial Services 

4 of the House of Representatives and the Committee 

5 on Banking, Housing, and Urban Affairs of the Sen6 ate. 

7 (2) COMMUNITY DEVELOPMENT FINANCIAL IN8 STITUTION.—The term ‘‘community development fi9 nancial institution’’ has the meaning given that term 

10 under section 103 of the Community Development 

11 Banking and Financial Institutions Act of 1994 (12 

12 U.S.C. 4702). 

13 (3) CREDIT UNION.—The term ‘‘credit union’’ 

14 means a State credit union or a Federal credit 

15 union, as such terms are defined, respectively, under 

16 section 101 of the Federal Credit Union Act (12 

17 U.S.C. 1752). 

18 (4) DEPOSITORY INSTITUTION.—The term ‘‘de19 pository institution’’ has the meaning given that 

20 term under section 3 of the Federal Deposit Insur21 ance Act (12 U.S.C. 1813). 

22 (5) MINORITY DEPOSITORY INSTITUTION.—The 

23 term ‘‘minority depository institution’’ has the 

24 meaning given under section 308(b) of the Financial 

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1 Institutions Reform, Recovery, and Enforcement Act 

2 of 1989 (12 U.S.C. 1463 note). 

3 (6) MINORITY LENDING INSTITUTION.—The 

4 term ‘‘minority lending institution’’ has the meaning 

5 given that term under section 103 of the Community 

6 Development Banking and Financial Institutions Act 

7 of 1994, as amended by section 809 of this Act. 

8 SEC. 812. INSPECTOR GENERAL OVERSIGHT. 

9 (a) IN GENERAL.—The Inspector General of the De10 partment of the Treasury shall conduct, supervise, and co11 ordinate audits and investigations of any program estab12 lished under this title or the amendments made by this 

13 title. 

14 (b) REPORTING.—The Inspector General of the De15 partment of the Treasury shall issue a report not less fre16 quently than 2 times per year to Congress and the Sec17 retary of the Treasury relating to the oversight provided 

18 by the Office of the Inspector General, including any rec19 ommendations for improvements to the programs de20 scribed in subsection (a). 

21 SEC. 813. STUDY AND REPORT WITH RESPECT TO IMPACT 

22 OF PROGRAMS ON LOW- AND MODERATE-IN23 COME AND MINORITY COMMUNITIES. 

24 (a) STUDY.—The Secretary of the Treasury shall 

25 conduct a study of the impact of the programs established 

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1 under this title or any amendment made by this title on 

2 low- and moderate-income and minority communities. 

3 (b) REPORT.—Not later than 18 months after the 

4 date of enactment of this Act, the Secretary shall submit 

5 to Congress a report on the results of the study conducted 

6 pursuant to subsection (a), which shall include, to the ex7 tent possible, the results of the study disaggregated by 

8 ethnic group. 

9 (c) INFORMATION PROVIDED TO THE SECRETARY.— 

10 Eligible institutions that participate in any of the pro11 grams described in subsection (a) shall provide the Sec12 retary of the Treasury with such information as the Sec13 retary may require to carry out the study required by this 

14 section. 

15 SEC. 814. COMMUNITY DEVELOPMENT FINANCIAL INSTITU16 TIONS FUND. 

17 (a) DIRECT APPROPRIATIONS.—There is appro18 priated, out of amounts in the Treasury not otherwise ap19 propriated, for an additional amount for the ‘‘Community 

20 Development Financial Institutions Fund Program Ac21 count’’ for the fiscal year ending September 30, 2021, 

22 $1,000,000,000 to prevent, prepare for, and response to 

23 coronavirus, domestically or internationally. 

24 (b) CRITERIA.—The Community Development Finan25 cial Institutions Fund (in this section referred to as the 

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1 ‘‘Fund’’) shall, using amounts provided under subsection 

2 (a), provide grants using a formula that takes into account 

3 criteria such as certification status, financial and compli4 ance performance, portfolio and balance sheet strength, 

5 and program capacity. 

6 (c) SET ASIDE.—Of amounts appropriated under 

7 subsection (a), not less than $25,000,000 shall be for fi8 nancial assistance, technical assistance, and training and 

9 outreach programs designed to benefit Native American, 

10 Native Hawaiian, and Alaska Native communities. 

11 (d) DEADLINE.—The Fund shall make amounts pro12 vided under this section available to grantees not later 

13 than 60 days after the date of enactment of this Act. 

14 (e) ADMINISTRATIVE EXPENSES.—The Fund may 

15 use amounts appropriated under subsection (a) for admin16 istrative expenses, including the administration of pro17 grams of the Fund and the New Markets Tax Credit Pro18 gram under section 45D of the Internal Revenue Code of 

19 1986. 

20 (f) EMERGENCY DESIGNATION.— 

21 (1) IN GENERAL.—The amounts provided under 

22 this section are designated as an emergency require23 ment pursuant to section 4(g) of the Statutory Pay24 As-You-Go Act of 2010 (2 U.S.C. 933(g)). 

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1 (2) DESIGNATION IN SENATE.—In the Senate, 

2 this section is designated as an emergency require3 ment pursuant to section 4112(a) of H. Con. Res. 

4 71 (115th Congress), the concurrent resolution on 

5 the budget for fiscal year 2018. 

Æ