I 

116TH CONGRESS 

2D SESSION H. R. 7562 

To amend the Internal Revenue Code of 1986 to provide for youth sports, 

to amend the Small Business Act to establish a loan program for youth 

sports providers, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 9, 2020 

Mr. ROSE of New York (for himself, Mr. FITZPATRICK, Mr. GOTTHEIMER, 

Mr. CISNEROS, Ms. CLARKE of New York, Mrs. DAVIS of California, Ms. 

NORTON, Mr. GONZALEZ of Texas, Mr. MICHAEL F. DOYLE of Pennsylvania, Ms. SCANLON, Mr. VEASEY, Mr. RASKIN, Ms. SCHAKOWSKY, and 

Ms. SEWELL of Alabama) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the 

Committee on Small Business, for a period to be subsequently determined 

by the Speaker, in each case for consideration of such provisions as fall 

within the jurisdiction of the committee concerned 

A BILL 

To amend the Internal Revenue Code of 1986 to provide 

for youth sports, to amend the Small Business Act to 

establish a loan program for youth sports providers, and 

for other purposes. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘COVID–19 Youth 

5 Sports and Healthy Working Families Relief Act’’. 


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1 SEC. 2. MODIFICATION OF CHILD AND DEPENDENT CARE 

2 TAX CREDIT. 

3 (a) ALLOWANCE OF EXPENSES FOR YOUTH PHYS4 ICAL ACTIVITIES.—Section 21(b)(2)(A) of the Internal 

5 Revenue Code of 1986 is amended by striking ‘‘and’’ at 

6 the end of clause (i), by striking the period at the end 

7 of clause (ii) and inserting ‘‘, and’’, and by inserting after 

8 clause (ii) the following: 

9 ‘‘(iii) expenses for youth physical ac10 tivities (within the meaning of section 

11 223(d)(5)).’’. 

12 (b) EXCEPTION TO CAMP RULE.—Section 

13 21(b)(2)(A) of such Code (as amended by subsection (a)) 

14 is amended by striking ‘‘Such term’’ and inserting ‘‘Ex15 cept as provided by clause (iii), such term’’. 

16 (c) DOLLAR LIMITATIONS.—Section 221(c) of such 

17 Code is amended to read as follows: 

18 ‘‘(c) DOLLAR LIMIT ON AMOUNT CREDITABLE.—The 

19 amount of the employment-related expenses incurred dur20 ing any taxable year which may be taken into account 

21 under subsection (a) shall not exceed— 

22 ‘‘(1) if there is 1 qualifying individual with re23 spect to the taxpayer for such taxable year, the sum 

24 of— 


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1 ‘‘(A) $3,000 of so much of employment-re2 lated expenses as are described in clauses (i) 

3 and (ii) of subsection (b)(2)(A), and 

4 ‘‘(B) $6,000 of so much of employment-re5 lated expenses as are described in clause (iii) of 

6 subsection (b)(2)(A), or 

7 ‘‘(2) if there are 2 or more qualifying individ8 uals with respect to the taxpayer for such taxable 

9 year, the sum of— 

10 ‘‘(A) $6,000 of so much of employment-re11 lated expenses as are described in clauses (i) 

12 and (ii) of subsection (b)(2)(A), and 

13 ‘‘(B) $12,000 of so much of employment14 related expenses as are described in clause (iii) 

15 of subsection (b)(2)(A). 

16 The amounts determined under subparagraphs (A) and 

17 (B) of paragraph (1) or (2) (whichever is applicable) shall 

18 each be reduced by the aggregate amount for the same 

19 categories of expenses excludable from gross income under 

20 section 129 for the taxable year.’’. 

21 (d) REFUNDABLE.—Section 21(e) of such Code is 

22 amended by adding at the end the following: 

23 ‘‘(11) CREDIT REFUNDABLE FOR 2020.—In the 

24 case of a taxable year beginning in calendar year 

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1 mined without regard to this paragraph and section 

2 26(a)) shall be treated as a credit allowable under 

3 subpart C (and not allowed under subsection (a)).’’. 

4 (e) EFFECTIVE DATE.—The amendments made by 

5 this section shall apply to taxable years beginning after 

6 December 31, 2019. 

7 SEC. 3. INCREASE IN DOLLAR AMOUNT OF ELECTION FOR 

8 DEPENDENT CARE FLEXIBLE SPENDING AR9 RANGEMENTS. 

10 (a) IN GENERAL.—Section 125 of the Internal Rev11 enue Code of 1986 is amended by redesignating sub12 sections (k) and (l) as subsections (l) and (m) and insert13 ing after subsection (j) the following: 

14 ‘‘(k) LIMITATION ON DEPENDENT CARE FLEXIBLE

15 SPENDING ARRANGEMENTS.— 

16 ‘‘(1) IN GENERAL.—For purposes of this sec17 tion, if a benefit is provided under a cafeteria plan 

18 through employer contributions to a dependent care 

19 flexible spending arrangement, such benefit shall not 

20 be treated as a qualified benefit unless the cafeteria 

21 plan provides that an employee may not elect for 

22 any taxable year to have salary reduction contribu23 tions in excess of $10,000 made to such arrange24 ment for each dependent under such arrangement. 


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1 ‘‘(2) SINGLE PARENT.—In the case that the 

2 employee is an individual who is not married as of 

3 the beginning of the taxable year for which the em4 ployee elects to participate in the arrangement, 

5 paragraph (1) shall be applied by substituting 

6 ‘$12,000’ for ‘$10,000’.’’. 

7 (b) EFFECTIVE DATE.—The amendments made by 

8 this section shall apply to taxable years beginning after 

9 December 31, 2019. 

10 SEC. 4. YOUTH AND FAMILY PHYSICAL ACTIVITIES. 

11 (a) IN GENERAL.—Paragraph (1) of section 213(d) 

12 of the Internal Revenue Code of 1986 is amended by strik13 ing ‘‘or’’ at the end of subparagraph (C), by striking the 

14 period at the end of subparagraph (D) and inserting ‘‘, 

15 or’’, and by inserting after subparagraph (D) the following 

16 new subparagraph: 

17 ‘‘(E) for qualified sports and fitness ex18 penses.’’. 

19 (b) QUALIFIED SPORTS AND FITNESS EXPENSES.— 

20 Subsection (d) of section 213 of the Internal Revenue 

21 Code of 1986 is amended by adding at the end the fol22 lowing new paragraph: 

23 ‘‘(12) QUALIFIED SPORTS AND FITNESS EX24 PENSES.— 


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1 ‘‘(A) IN GENERAL.—The term ‘qualified 

2 sports and fitness expenses’ means amounts 

3 paid exclusively for the sole purpose of partici4 pating in a physical activity including— 

5 ‘‘(i) for membership at a fitness facil6 ity, 

7 ‘‘(ii) for participation or instruction in 

8 physical exercise or physical activity, or 

9 ‘‘(iii) for equipment used in a pro10 gram (including a self-directed program) of 

11 physical exercise or physical activity. 

12 ‘‘(B) OVERALL DOLLAR LIMITATION.—The 

13 aggregate amount treated as qualified sports 

14 and fitness expenses with respect to any tax15 payer for any taxable year shall not exceed 

16 $1,000 ($2,000 in the case of a joint return or 

17 a head of household (as defined in section 

18 2(b))). 

19 ‘‘(C) FITNESS FACILITY.—For purposes of 

20 subparagraph (A)(i), the term ‘fitness facility’ 

21 means a facility— 

22 ‘‘(i) which provides instruction in a 

23 program of physical exercise, offers facili24 ties for the preservation, maintenance, en25 couragement, or development of physical 


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1 fitness, or serves as the site of such a pro2 gram of a State or local government, 

3 ‘‘(ii) which is not a private club owned 

4 and operated by its members, 

5 ‘‘(iii) which does not offer golf, hunt6 ing, sailing, or riding facilities, 

7 ‘‘(iv) the health or fitness component 

8 of which is not incidental to its overall 

9 function and purpose, and 

10 ‘‘(v) which is fully compliant with the 

11 State of jurisdiction and Federal anti-dis12 crimination laws. 

13 ‘‘(D) TREATMENT OF EXERCISE VIDEOS, 

14 ETC.—Videos, books, and similar materials 

15 shall be treated as described in subparagraph 

16 (A)(ii) if the content of such materials con17 stitutes instruction in a program of physical ex18 ercise or physical activity. 

19 ‘‘(E) LIMITATIONS RELATED TO SPORTS

20 AND FITNESS EQUIPMENT.—Amounts paid for 

21 equipment described in subparagraph (A)(iii) 

22 shall be treated as qualified sports and fitness 

23 expenses only— 


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1 ‘‘(i) if such equipment is utilized ex2 clusively for participation in fitness, exer3 cise, sport, or other physical activity, 

4 ‘‘(ii) in the case of amounts paid for 

5 apparel or footwear, if such apparel or 

6 footwear is of a type that is necessary for, 

7 and is not used for any purpose other 

8 than, a specific physical activity, and 

9 ‘‘(iii) in the case of amounts paid for 

10 any single item of sports equipment (other 

11 than exercise equipment), to the extent 

12 such amounts do not exceed $250. 

13 ‘‘(F) PROGRAMS WHICH INCLUDE COMPO14 NENTS OTHER THAN PHYSICAL EXERCISE AND

15 PHYSICAL ACTIVITY.—Rules similar to the rules 

16 of paragraph (6) shall apply in the case of any 

17 program that includes physical exercise or phys18 ical activity and also other components. For 

19 purposes of the preceding sentence, travel and 

20 accommodations shall be treated as a separate 

21 component.’’. 

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

23 this section shall apply to taxable years beginning after 

24 the date of the enactment of this Act. 


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1 SEC. 5. YOUTH SPORT PROVIDERS LOAN PROGRAM. 

2 (a) DEFINITIONS.—In this section, the terms ‘‘Ad3 ministration’’ and ‘‘Administrator’’ mean the Small Busi4 ness Administration and the Administrator thereof, re5 spectively. 

6 (b) IN GENERAL.—Section 7(a) of the Small Busi7 ness Act (15 U.S.C. 636(a)) is amended— 

8 (1) in paragraph (2)— 

9 (A) in subparagraph (A), in the matter 

10 preceding clause (i), by striking ‘‘and (F)’’ and 

11 inserting ‘‘(F), and (G)’’; and 

12 (B) by adding at the end the following: 

13 ‘‘(G) PARTICIPATION IN THE YOUTH

14 SPORTS PROVIDER LOAN PROGRAM.—In an 

15 agreement to participate in a loan on a deferred 

16 basis under paragraph (37), the participation 

17 by the Administration shall be 100 percent.’’; 

18 and 

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

20 ‘‘(37) YOUTH SPORTS PROVIDER LOAN PRO21 GRAM.— 

22 ‘‘(A) DEFINITIONS.—In this paragraph— 

23 ‘‘(i) the terms ‘appropriate Federal 

24 banking agency’ and ‘insured depository 

25 institution’ have the meanings given those 


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1 terms in section 3 of the Federal Deposit 

2 Insurance Act (12 U.S.C. 1813); 

3 ‘‘(ii) the term ‘covered loan’ means a 

4 loan made under this paragraph during the 

5 covered period; 

6 ‘‘(iii) the term ‘covered period’ means 

7 the period beginning on March 1, 2020, 

8 and ending on December 31, 2020; 

9 ‘‘(iv) the term ‘eligible recipient’ 

10 means an individual or entity that is a 

11 youth sports provider and is eligible to re12 ceive a covered loan; 

13 ‘‘(v) the term ‘eligible self-employed 

14 individual’ has the meaning given the term 

15 in section 7002(b) of the Families First 

16 Coronavirus Response Act (Public Law 

17 116–127); 

18 ‘‘(vi) the term ‘high priority area’ 

19 means a geographic area for which an eli20 gible recipient is a small business concern 

21 owned and controlled by socially and eco22 nomically disadvantaged individuals, a 

23 small business concern owned and con24 trolled by women, or a small business con25 cern owned and controlled by veterans— 


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1 ‘‘(I) working in or attracting 

2 youth participants from low income, 

3 underserved, or rural communities 

4 (based on ZIP code); 

5 ‘‘(II) working with populations 

6 disproportionately affected by 

7 COVID–19 (based on ZIP code); and 

8 ‘‘(III) working with populations 

9 of youth that already have low access 

10 to quality sports programs; 

11 ‘‘(vii) the term ‘insured credit union’ 

12 has the meaning given the term in section 

13 101 of the Federal Credit Union Act (12 

14 U.S.C. 1752); 

15 ‘‘(viii) the term ‘nonprofit organiza16 tion’ means an organization that is de17 scribed in section 501(c)(3) of the Internal 

18 Revenue Code of 1986 and that is exempt 

19 from taxation under section 501(a) of such 

20 Code; 

21 ‘‘(ix) the term ‘operating losses’ 

22 means regular operating expenses accrued 

23 since January 1, 2020, through the date of 

24 the loan application since January 1, 2020, 

25 minus revenue generated over that period; 


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1 ‘‘(x) the term ‘regular operating ex2 penses’— 

3 ‘‘(I) means expenses incurred in 

4 the regular operations of business and 

5 includes— 

6 ‘‘(aa) payroll costs (as de7 fined in paragraph (36)); 

8 ‘‘(bb) other expenses relat9 ing to workforce support, includ10 ing 1099–MISC contractors and 

11 volunteers, such as contractor 

12 fees for services, training, back13 ground screenings, or insurance; 

14 ‘‘(cc) regular or necessary 

15 facilities maintenance and up16 keep; 

17 ‘‘(dd) supplies or materials 

18 that due to their nature are un19 usable at a future date and main20 tain only a nominal value; 

21 ‘‘(ee) overhead expenses for 

22 events or programs cancelled due 

23 to COVID–19 that are not reim24 bursable through insurance or 

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1 bursable deposits and cancella2 tion fees; 

3 ‘‘(ff) rent (including rent 

4 under a lease agreement); 

5 ‘‘(gg) payments of interest 

6 or mandatory principal payment 

7 on any mortgage obligation 

8 (which shall not include any pre9 payment of principal or interest 

10 on a mortgage obligation); 

11 ‘‘(hh) utilities; 

12 ‘‘(ii) interest or mandatory 

13 principal payment on any other 

14 debt obligations that were in15 curred before the covered period 

16 (which shall not include any pre17 payment of principal or interest 

18 on a debt obligation); 

19 ‘‘(jj) marketing; 

20 ‘‘(kk) insurance; or 

21 ‘‘(ll) any other operational 

22 expenses, including program fee 

23 refunds, costs for referees or 

24 sports officials, software and 

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1 plies or materials that due to 

2 their nature are unusable at a fu3 ture date and maintain only a 

4 nominal value; and 

5 ‘‘(II) does not include— 

6 ‘‘(aa) expenses permitted to 

7 be reimbursed under contract or 

8 otherwise reimbursable; 

9 ‘‘(bb) expenses reimbursable 

10 under currently held insurance; 

11 or 

12 ‘‘(cc) any compensation of 

13 an employee whose principal 

14 place of residence is outside of 

15 the United States; 

16 ‘‘(xi) the term ‘youth sports pro17 vider’— 

18 ‘‘(I) means any entity or organi19 zation that has a primary purpose to 

20 provide direct sports programming or 

21 sports events to youth 18 and under, 

22 including— 

23 ‘‘(aa) sports-based youth de24 velopment organizations; 


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1 ‘‘(bb) interscholastic sports 

2 programs; 

3 ‘‘(cc) youth sports providers 

4 such as coaches, trainers, and in5 structors; and 

6 ‘‘(dd) youth sport league, 

7 camp, or event providers; and 

8 ‘‘(xii) the term ‘veterans organization’ 

9 means an organization that is described in 

10 section 501(c)(19) of the Internal Revenue 

11 Code that is exempt from taxation under 

12 section 501(a) of such code. 

13 ‘‘(B) COVERED LOANS.— 

14 ‘‘(i) YOUTH SPORTS PROVIDER

15 LOANS.—Except as otherwise provided in 

16 this paragraph, the Administrator may 

17 guarantee covered loans under the same 

18 terms, conditions, and processes as a loan 

19 made under this subsection. 

20 ‘‘(ii) DELEGATED AUTHORITY.—For 

21 purposes of making covered loans under 

22 this paragraph, a lender approved to make 

23 loans under this subsection shall be 

24 deemed to have been delegated authority 

25 by the Administrator to make and approve 


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1 covered loans, subject to the provisions of 

2 this paragraph. 

3 ‘‘(iii) ADDITIONAL LENDERS.—The 

4 authority to make loans under this para5 graph shall be extended to additional lend6 ers determined by the Administrator and 

7 the Secretary of the Treasury to have the 

8 necessary qualifications to process, close, 

9 disburse, and service loans made with the 

10 guarantee of the Administration. 

11 ‘‘(iv) REFINANCE.—A loan made 

12 under subsection (b)(2) during the period 

13 beginning on January 31, 2020, and end14 ing on the date on which covered loans are 

15 made available may be refinanced as part 

16 of a covered loan. 

17 ‘‘(v) NONRECOURSE.—Notwith18 standing the waiver of the personal guar19 antee requirement or collateral under sub20 paragraph (J), the Administrator shall 

21 have no recourse against any individual 

22 shareholder, member, or partner of an eli23 gible recipient of a covered loan for non24 payment of any covered loan, except to the 

25 extent that such shareholder, member, or 


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1 partner uses the covered loan proceeds for 

2 a purpose not authorized under clause (ii). 

3 ‘‘(C) REGISTRATION OF LOANS.—Not later 

4 than 15 days after the date on which a loan is 

5 made under this paragraph, the Administration 

6 shall register the loan using the TIN (as de7 fined in section 7701 of the Internal Revenue 

8 Code of 1986) assigned to the borrower. 

9 ‘‘(D) ELIGIBILITY FOR CERTAIN SMALL

10 BUSINESSES AND ORGANIZATIONS.— 

11 ‘‘(i) IN GENERAL.—During the cov12 ered period, any youth sports provider 

13 business concern, nonprofit organization, 

14 veterans organization, or Tribal business 

15 concern described in section 31(b)(2)(C) 

16 shall be eligible to receive a covered loan if 

17 the youth sports provider concern or orga18 nization employs not more than 500 full19 time employees. An eligible recipient apply20 ing for a covered loan shall make a good 

21 faith certification— 

22 ‘‘(I) that the uncertainty of cur23 rent economic conditions makes nec24 essary the loan request to support the 


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1 ongoing operations of the eligible re2 cipient; 

3 ‘‘(II) that the eligible recipient 

4 provides direct sports programming or 

5 sports events to youth 18 and under; 

6 ‘‘(III) that the eligible recipient 

7 does not have an application pending 

8 for a loan under this subsection for 

9 the same purpose and duplicative of 

10 amounts applied for or received under 

11 a covered loan; and 

12 ‘‘(IV) during the period begin13 ning on February 15, 2020, and end14 ing on December 31, 2020, that the 

15 eligible recipient has not received 

16 amounts under this subsection for the 

17 same purpose that when added to the 

18 applied for loan amount under this 

19 program will exceed $2 million. 

20 ‘‘(ii) INCLUSION OF SOLE PROPRI21 ETORS, INDEPENDENT CONTRACTORS, AND

22 ELIGIBLE SELF-EMPLOYED INDIVID23 UALS.— 

24 ‘‘(I) IN GENERAL.—During the 

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1 ate under a sole proprietorship or as 

2 an independent contractor and eligible 

3 self-employed individuals shall be eli4 gible to receive a covered loan. 

5 ‘‘(II) DOCUMENTATION.—An eli6 gible self-employed individual, inde7 pendent contractor, or sole proprietor8 ship seeking a covered loan shall sub9 mit such documentation as is nec10 essary to establish such individual as 

11 eligible, including payroll tax filings 

12 reported to the Internal Revenue 

13 Service, Forms 1099–MISC, and in14 come and expenses from the sole pro15 prietorship, as determined by the Ad16 ministrator and the Secretary. 

17 ‘‘(iii) PAYROLL PROTECTION PROGRAM

18 ELIGIBILITY.—No youth sports provider 

19 that received a covered loan under para20 graph (36) shall be deemed ineligible for a 

21 covered loan under this paragraph. 

22 ‘‘(iv) EMPLOYEE.—For purposes of 

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1 ness concern described in section 

2 31(b)(2)(C) employs not more than 500 

3 employees under clause (i)(I), the term 

4 ‘employee’ includes individuals employed 

5 on a full-time basis. 

6 ‘‘(v) AFFILIATION.—The provisions 

7 applicable to affiliations under section 

8 121.103 of title 13, Code of Federal Regu9 lations, or any successor thereto, shall not 

10 apply with respect to a nonprofit organiza11 tion and a veterans organization in the 

12 same manner as with respect to a small 

13 business concern. 

14 ‘‘(E) MAXIMUM LOAN AMOUNT.— 

15 ‘‘(i) ALLOCATION.—During the cov16 ered period, with respect to a covered loan, 

17 the maximum loan amount shall not exceed 

18 $2,000,000 and be the greater of— 

19 ‘‘(I) gross receipts in 2019; or 

20 ‘‘(II) 85 percent of regular oper21 ating expenses accrued since January 

22 1, 2020, minus revenue generated 

23 over that period. 

24 ‘‘(ii) DISBURSEMENT.—Priority con25 sideration in the loan disbursement shall 


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1 be given to nonprofits representing youth 

2 sports providers serving high priority 

3 areas. This consideration may include des4 ignating a specific amount of the loan 

5 funding allocated to be used exclusively for 

6 nonprofit providers serving high priority 

7 areas. 

8 ‘‘(F) ALLOWABLE USES OF COVERED

9 LOANS.—During the covered period, an eligible 

10 recipient may use the proceeds of the covered 

11 loan for regular operating expenses. 

12 ‘‘(G) LOAN FORGIVENESS.— 

13 ‘‘(i)(I) FORGIVENESS.—An eligible re14 cipient shall be eligible for forgiveness of 

15 indebtedness on a covered loan in an 

16 amount equal to percentage forgiveness 

17 multiplied by the loan amount. 

18 ‘‘(II) ELIGIBLE EXPENSES.—Up to 50 

19 percent of forgiveness shall be granted for 

20 use for the eligible expenses enumerated 

21 above. 

22 ‘‘(III) ADDITIONAL FORGIVENESS.— 

23 Additional forgiveness of the remaining 50 

24 percent shall be prorated based on the 

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1 gram participating in some capacity (i.e. 

2 virtual) by December 2021 (as compared 

3 to participation rates over a comparable 

4 period in 2019). Criteria shall be developed 

5 to define this standard and take into ac6 count factors that would limit or reduce 

7 participation, such as continuing COVID– 

8 19 concerns. 

9 ‘‘(IV) TREATMENT OF AMOUNTS FOR10 GIVEN.— 

11 ‘‘(aa) IN GENERAL.—Amounts 

12 which have been forgiven under this 

13 section shall be considered cancelled 

14 indebtedness by a lender authorized 

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

17 ‘‘(bb) PURCHASE OF GUARAN18 TEES.—For purposes of the purchase 

19 of the guarantee for a covered loan by 

20 the Administrator, amounts which are 

21 forgiven under this section shall be 

22 treated in accordance with the proce23 dures that are otherwise applicable to 

24 a loan guaranteed under section 7(a) 


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

2 636(a)). 

3 ‘‘(cc) REMITTANCE.—Not later 

4 than 90 days after the date on which 

5 the amount of forgiveness under this 

6 section is determined, the Adminis7 trator shall remit to the lender an 

8 amount equal to the amount of for9 giveness, plus any interest accrued 

10 through the date of payment.’’. 

11 (c) APPLICATION.—An eligible recipient seeking 

12 loan forgiveness under this section shall submit to 

13 the lender that is servicing the covered loan an ap14 plication, which shall include— 

15 (1) documentation verifying youth under 

16 the age of 18 participation numbers during the 

17 forgiveness calculation periods; 

18 (2) documentation showing expenditures of 

19 the covered loan on allowed uses; 

20 (3) a certification from a representative of 

21 the eligible recipient authorized to make such 

22 certifications that— 

23 (A) the documentation presented is 

24 true and correct; and 


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1 (B) the amount for which forgiveness 

2 is requested was used to provide sports 

3 programing and sports events for youth 

4 under the age of 18; and 

5 (4) any other documentation the Adminis6 trator determines necessary. 

7 (d) PROHIBITION ON FORGIVENESS WITHOUT

8 DOCUMENTATION.—No eligible recipient shall receive 

9 forgiveness under this section without submitting, to 

10 the lender that is servicing the covered loan, the doc11 umentation required under subsection (f). 

12 (e) DECISION.—Not later than 60 days after 

13 the date on which a lender receives an application 

14 for loan forgiveness under this section from an eligi15 ble recipient, the lender shall issue a decision on the 

16 application. 

17 (f) HOLD HARMLESS.—If a lender has received 

18 the documentation required under this section from 

19 an eligible recipient attesting that the eligible recipi20 ent has accurately verified the payments for payroll 

21 costs, payments on covered mortgage obligations, 

22 payments on covered lease obligations, or covered 

23 utility payments during covered period— 

24 (1) an enforcement action may not be 

25 taken against the lender under section 47(e) of 


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1 the Small Business Act (15 U.S.C. 657t(e)) re2 lating to loan forgiveness for the payments for 

3 payroll costs, payments on covered mortgage 

4 obligations, payments on covered lease obliga5 tions, or covered utility payments, as the case 

6 may be; and 

7 (2) the lender shall not be subject to any 

8 penalties by the Administrator relating to loan 

9 forgiveness for the payments for payroll costs, 

10 payments on covered mortgage obligations, pay11 ments on covered lease obligations, or covered 

12 utility payments, as the case may be. 

13 (g) TAXABILITY.—For purposes of the Internal 

14 Revenue Code of 1986, any amount which (but for 

15 this subsection) would be includible in gross income 

16 of the eligible recipient by reason of forgiveness de17 scribed in subsection (b) shall be excluded from 

18 gross income. 

19 (h) RULE OF CONSTRUCTION.—The cancellation 

20 of indebtedness on a covered loan under this section 

21 shall not otherwise modify the terms and conditions 

22 of the covered loan. 

23 (i) REGULATIONS.—Not later than 30 days 

24 after the date of enactment of this Act, the AdminisVerDate Sep 11 2014 02:26 Aug 22, 2020 Jkt 099200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 E:\BILLS\H7562.IH H7562

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1 trator shall issue guidance and regulations imple2 menting this section. 

3 (j) DIRECT APPROPRIATIONS.—There is appro4 priated, out of amounts in the Treasury not otherwise ap5 propriated, for the fiscal year ending September 30, 2020, 

6 to remain available until September 30, 2021, for addi7 tional amounts $8,500,000,000 under the heading ‘‘Small 

8 Business Administration—Business Loans Program Ac9 count, CARES Act’’ for the cost of guaranteed loans as 

10 authorized under paragraph (37) of section 7(a) of the 

11 Small Business Act (15 U.S.C. 636(a)), as added by sec12 tion 5 of this Act. 

13 (k) EMERGENCY RULEMAKING AUTHORITY.—Not 

14 later than 15 days after the date of enactment of this Act, 

15 the Administrator shall issue regulations to carry out this 

16 title and the amendments made by this title without re17 gard to the notice requirements under section 553(b) of 

18 title 5, United States Code. 

19 (l) LOAN EDUCATION.— 

20 (1) The SBA shall have authority to provide 

21 additional financial awards to resource partners 

22 (Small Business Development Centers, Women’s 

23 Business Centers) to provide counseling, training, 

24 and education to youth sports providers on use of 

25 loans. 


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1 (2) The SBA or Treasury shall provide non2 profits representing youth sports providers serving 

3 high priority areas with grants to establish a train4 ing program on accessing resources under the pro5 gram, and general financial management. 

6 (m) FEE WAIVER.—During the covered period, with 

7 respect to a covered loan— 

8 (1) in lieu of the fee otherwise applicable under 

9 paragraph (23)(A), the Administrator shall collect 

10 no fee; and 

11 (2) in lieu of the fee otherwise applicable under 

12 paragraph (18)(A), the Administrator shall collect 

13 no fee. 

14 (n) INTEREST RATE REQUIREMENTS.—A covered 

15 loan shall bear an interest rate— 

16 (1) for the first two years, and shall be no 

17 greater than 4 percent; 

18 (2) for years 3 through 7, and shall have Appli19 cable Federal Rate (AFR) plus 250–450 base points 

20 (bps) as determined by the Administrator based on 

21 revenue decline. 

22 (o) LOAN DEFERMENT.— 

23 (1) DEFINITION OF IMPACTED BORROWER.—In 

24 this section, the term ‘‘impacted borrower’’ means 

25 an eligible recipient that— 


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1 (A) is in operation on February 15, 2020; 

2 and 

3 (B) has an application for a covered loan 

4 that is approved or pending approval on or 

5 after the date of enactment of this section. 

6 (2) PRESUMPTION.—For purposes of this sub7 section, an impacted borrower is presumed to have 

8 been adversely impacted by COVID–19. 

Æ 


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