I 

118TH CONGRESS 

2D SESSION H. R. 7061 

To provide loans and other financial assistance to small businesses affected 

by the wildfires on Maui, and for other purpose. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 22, 2024 

Mr. CASE introduced the following bill; which was referred to the Committee 

on Small Business, and in addition to the Committees on Ways and 

Means, and Financial Services, 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 provide loans and other financial assistance to small 

businesses affected by the wildfires on Maui, and for 

other purpose. 

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 ‘‘Healing and Economic 

5 Advancement for Local businesses in Maui Act’’ or the 

6 ‘‘HEAL Maui Act’’. 

7 SEC. 2. EMERGENCY EIDL GRANTS. 

8 (a) DEFINITIONS.—In this section— 


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1 (1) the term ‘‘covered entity’’ means— 

2 (A) a business with not more than 500 em3 ployees; 

4 (B) any individual who operates under a 

5 sole proprietorship, with or without employees, 

6 or as an independent contractor; 

7 (C) a cooperative with not more than 500 

8 employees; 

9 (D) an ESOP (as defined in section 3 of 

10 the Small Business Act (15 U.S.C. 632)) with 

11 not more than 500 employees; or 

12 (E) a tribal small business concern, as de13 scribed in section 31(b)(2)(C) of the Small 

14 Business Act (15 U.S.C. 657a(b)(2)(C)), with 

15 not more than 500 employees; 

16 (2) the term ‘‘covered period’’ means the period 

17 beginning on August 8, 2023, and ending on May 

18 10, 2024; 

19 (3) the term ‘‘eligible entity’’ means a covered 

20 entity the principal office of which is located on 

21 Maui and not fewer than 35 percent of the employ22 ees of which reside on Maui; and 

23 (4) the term ‘‘Hawai’i Wildfires’’ means 

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1 ginning on August 1, 2023, and ending on Sep2 tember 30, 2023. 

3 (b) ELIGIBLE ENTITIES.—During the covered period, 

4 in addition to small business concerns, private nonprofit 

5 organizations, and small agricultural cooperatives, an eli6 gible entity shall be eligible for a loan made under section 

7 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2)). 

8 (c) TERMS; CREDIT ELSEWHERE.—With respect to 

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

10 Act (15 U.S.C. 636(b)(2)) during the covered period in 

11 response to the Hawai‘i Wildfires, the Administrator shall 

12 waive— 

13 (1) any rules related to personal guarantee on 

14 advances and loans of not more than $200,000 dur15 ing the covered period for all applicants; 

16 (2) the requirement that an applicant needs to 

17 be in business for the 1-year period before the dis18 aster, except that no waiver may be made for a busi19 ness that was not in operation on August 8, 2023; 

20 and 

21 (3) the requirement in the flush matter fol22 lowing subparagraph (E) of section 7(b)(2) of the 

23 Small Business Act (15 U.S.C. 636(b)(2)) that an 

24 applicant be unable to obtain credit elsewhere. 


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1 (d) APPROVAL AND ABILITY TO REPAY FOR SMALL

2 DOLLAR LOANS.—With respect to a loan made under sec3 tion 7(b)(2) of the Small Business Act (15 U.S.C. 

4 636(b)(2)) during the covered period in response to the 

5 Hawai‘i Wildfires, the Administrator may— 

6 (1) approve an applicant based solely on the 

7 credit score of the applicant and shall not require an 

8 applicant to submit a tax return or a tax return 

9 transcript for such approval; or 

10 (2) use alternative appropriate methods to de11 termine an applicant’s ability to repay. 

12 (e) EMERGENCY GRANT.— 

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

14 an entity made eligible for a loan under section 

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

16 636(b)(2)) by subsection (b) of this Act, including 

17 small business concerns, private nonprofit organiza18 tions, and small agricultural cooperatives, that ap19 plies for a loan under such section 7(b)(2) in re20 sponse to the Hawai‘i Wildfires may request that the 

21 Administrator provide to such entity an advance 

22 that is, subject to paragraph (4), in the amount re23 quested by such entity. 

24 (2) TIMING.—The Administrator shall provide 

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1 questing such advance not later than three days 

2 after the Administrator receives from such entity an 

3 application 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 the Hawai‘i Wildfires, a request for such 

6 advance, and the self-certification required by para7 graph (3). 

8 (3) VERIFICATION.— 

9 (A) IN GENERAL.—An entity seeking an 

10 advance under this subsection shall submit to 

11 the Administrator, under penalty of perjury 

12 pursuant to section 1746 of title 28, United 

13 States Code, a self-certification that such entity 

14 is an eligible entity. 

15 (B) TIMING.—The Administrator may not 

16 disburse any amounts under this subsection to 

17 an entity before such entity submits a self-cer18 tification under subparagraph (A). 

19 (4) AMOUNT.—The amount of an advance pro20 vided under this subsection shall be not more than 

21 $15,000. 

22 (5) PRIORITIZATION.— 

23 (A) IN GENERAL.—The Administrator 

24 shall prioritize providing advances under this 


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1 subsection to eligible entities that experienced 

2 economic loss of not less than 30 percent. 

3 (B) ECONOMIC LOSS DEFINED.—In this 

4 paragraph, the term ‘‘economic loss’’ means, 

5 with respect to an eligible entity— 

6 (i) the amount by which the gross re7 ceipts of the eligible entity declined during 

8 an 8-week period between August 8, 2023, 

9 and May 10, 2024, relative to a com10 parable 8-week period between January 1, 

11 2022, and August 7, 2023; or 

12 (ii) if the eligible entity is a seasonal 

13 business concern, such other amount deter14 mined appropriate by the Administrator. 

15 (6) USE OF FUNDS.—An advance provided 

16 under this subsection may be used to address any al17 lowable purpose for a loan made under section 

18 7(b)(2) of the Small Business Act (15 U.S.C. 

19 636(b)(2)), including— 

20 (A) maintaining payroll to retain employ21 ees during business disruptions or substantial 

22 slowdowns; 

23 (B) paying increased costs to obtain mate24 rials due to disruptions to supply chains; 


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1 (C) making rent or mortgage payments; 

2 and 

3 (D) repaying obligations that cannot be 

4 met due to revenue losses. 

5 (7) REPAYMENT.— 

6 (A) IN GENERAL.—An entity shall not be 

7 required to repay any amounts of an advance 

8 provided under this subsection, even if subse9 quently denied a loan under section 7(b)(2) of 

10 the Small Business Act (15 U.S.C. 636(b)(2)). 

11 (B) TAX TREATMENT.—For purposes of 

12 the Internal Revenue Code of 1986— 

13 (i) no amount shall be included in the 

14 gross income of the eligible recipient by 

15 reason of subparagraph (A), 

16 (ii) no deduction shall be denied, no 

17 tax attribute shall be reduced, and no basis 

18 increase shall be denied, by reason of the 

19 exclusion from gross income provided by 

20 clause (i), and 

21 (iii) in the case of an eligible recipient 

22 that is a partnership or S corporation— 

23 (I) any amount excluded from in24 come by reason of clause (i) shall be 

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1 poses of sections 705 and 1366 of 

2 title 26, and 

3 (II) except as provided by the 

4 Secretary of the Treasury (or the Sec5 retary’s delegate), any increase in the 

6 adjusted basis of a partner’s interest 

7 in a partnership under section 705 of 

8 title 26 with respect to any amount 

9 described in subclause (I) shall equal 

10 the partner’s distributive share of de11 ductions resulting from costs paid in 

12 accordance with paragraph (6) using 

13 amounts from an advance provided 

14 under this section. 

15 (8) SUBSEQUENT LOAN GRANT.—If an entity 

16 that receives an advance under this subsection trans17 fers into, or is approved for, the loan program under 

18 paragraph (38) of section 7(a) of the Small Business 

19 Act (15 U.S.C. 636(a)), the advance amount shall be 

20 reduced from the loan forgiveness amount for a loan 

21 for payroll costs made under such paragraph (38). 

22 (9) AUTHORIZATION OF APPROPRIATIONS.— 

23 There is authorized to be appropriated to the Ad24 ministration $1,000,000,000 to carry out this sub25 section. 


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1 (10) TERMINATION.—The authority to make 

2 advances under this subsection shall terminate on 

3 May 10, 2024. 

4 (f) APPROPRIATIONS.—There is appropriated, out of 

5 amounts in the Treasury not otherwise appropriated, for 

6 the fiscal year ending September 30, 2023, to remain 

7 available until September 30, 2024, for additional 

8 amounts $1,000,000,000 under the heading ‘‘Small Busi9 ness Administration—Emergency EIDL Grants’’ for car10 rying out this section. 

11 SEC. 3. MAUI WILDFIRE PAYCHECK PROTECTION PRO12 GRAM. 

13 (a) IN GENERAL.—Section 7(a) of the small Business 

14 Act (15 U.S.C. 636(a)) is amended— 

15 (1) in paragraph (2)— 

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

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

18 inserting ‘‘(F), and (G)’’; and 

19 (B) by adding at the end the following new 

20 subparagraph: 

21 ‘‘(G) PARTICIPATION IN THE MAUI WILD22 FIRE PAYCHECK PROTECTION PROGRAM.—In an 

23 agreement to participate in a loan on a deferred 

24 basis under paragraph (38), the participation 


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

2 and 

3 (2) by adding at the end the following new 

4 paragraph: 

5 ‘‘(38) MAUI WILDFIRE PAYCHECK PROTECTION

6 PROGRAM.— 

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

8 ‘‘(i) the terms ‘appropriate Federal 

9 banking agency’, ‘insured depository insti10 tution’, ‘eligible self-employed individual’, 

11 ‘insured credit union’, ‘nonprofit organiza12 tion’, ‘payroll costs’ and ‘veterans organi13 zation’ have the meanings given such 

14 terms under paragraph (36)(A); 

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

16 loan made under this paragraph during the 

17 covered period; 

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

19 the period beginning on August 8, 2023, 

20 and ending on May 10, 2024; and 

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

22 means an individual or entity that is eligi23 ble to receive a covered loan. 

24 ‘‘(B) MAUI WILDFIRE PAYCHECK PROTEC25 TION PROGRAM.—Except as otherwise provided 


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1 in this paragraph, the Administrator may guar2 antee covered loans under the same terms, con3 ditions, and processes as a loan made under 

4 this subsection. 

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

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

7 made under this paragraph, the Administration 

8 shall register the loan using the TIN (as de9 fined in section 7701 of title 26) assigned to 

10 the borrower. 

11 ‘‘(D) INCREASED ELIGIBILITY FOR CER12 TAIN SMALL BUSINESS AND ORGANIZATIONS.— 

13 ‘‘(i) INCLUSION OF SOLE PROPRI14 ETORS, INDEPENDENT CONTRACTORS, AND

15 ELIGIBLE SELF-EMPLOYED INDIVID16 UALS.— 

17 ‘‘(I) IN GENERAL.—During the 

18 covered period, individuals who oper19 ate under a sole proprietorship or as 

20 an independent contractor and eligible 

21 self-employed individuals shall be eli22 gible to receive a covered loan. 

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1 ship seeking a covered loan shall sub2 mit such documentation as deter3 mined necessary by the Administrator 

4 and the Secretary, to establish the ap5 plicant as eligible. 

6 ‘‘(ii) BUSINESS CONCERNS WITH

7 MORE THAN 1 PHYSICAL LOCATION.—Dur8 ing the covered period, any business con9 cern that employs not more than 500 em10 ployees per physical location of the busi11 ness concern and that is assigned a North 

12 American Industry Classification System 

13 code beginning with 72 at the time of dis14 bursal shall be eligible to receive a covered 

15 loan. 

16 ‘‘(iii) WAIVER OF AFFILIATION

17 RULES.—During the covered period, the 

18 provisions applicable to affiliations under 

19 section 121.103 of title 13, Code of Fed20 eral Regulations, or any successor regula21 tion, are waived with respect to eligibility 

22 for a covered loan for— 

23 ‘‘(I) any business concern with 

24 not more than 500 employees that, as 

25 of the date on which the covered loan 


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1 is disbursed, is assigned a North 

2 American Industry Classification Sys3 tem code beginning with 72; 

4 ‘‘(II) any business concern oper5 ating as a franchise that is assigned a 

6 franchise identifier code by the Ad7 ministration; and 

8 ‘‘(III) any business concern that 

9 receives financial assistance from a 

10 company licensed under section 301 of 

11 the Small Business Investment Act of 

12 1958 (15 U.S.C. 681). 

13 ‘‘(iv) AFFILIATION.—The provisions 

14 applicable to affiliations under section 

15 121.103 of title 13, Code of Federal Regu16 lations, or any successor thereto, shall 

17 apply with respect to a nonprofit organiza18 tion and a veterans organization in the 

19 same manner as with respect to a small 

20 business concern. 

21 ‘‘(E) MAXIMUM LOAN AMOUNT.—During 

22 the covered period, with respect to a covered 

23 loan, the maximum loan amount shall be the 

24 lesser of— 

25 ‘‘(i)(I) the sum of— 


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1 ‘‘(aa) the product obtained by 

2 multiplying— 

3 ‘‘(AA) the average total 

4 monthly payments by the appli5 cant for payroll costs incurred 

6 during the 1-year period before 

7 the date on which the loan is 

8 made, except that, in the case of 

9 an applicant that is seasonal em10 ployer, as determined by the Ad11 ministrator, the average total 

12 monthly payments for payroll 

13 shall be for any 12-week period 

14 selected by the seasonal employer 

15 that is between August 8, 2023, 

16 and May 10, 2024 and ends be17 fore the date on which the loan is 

18 made; by 

19 ‘‘(BB) 2.5; and 

20 ‘‘(bb) the outstanding amount of 

21 a loan under subsection (b)(2) that 

22 was made during the period beginning 

23 on August 8, 2023, and ending on the 

24 date on which covered loans are made 


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1 available to be refinanced under the 

2 covered loan; or 

3 ‘‘(II) if requested by an otherwise eli4 gible recipient that was not in business 

5 during the period beginning on August 8, 

6 2022, and ending on May 10, 2023, the 

7 sum of— 

8 ‘‘(aa) the product obtained by 

9 multiplying— 

10 ‘‘(AA) the average total 

11 monthly payments by the appli12 cant for payroll costs incurred 

13 during the period beginning on 

14 May 11, 2023, and ending on 

15 August 8, 2023; by 

16 ‘‘(BB) 2.5; and 

17 ‘‘(bb) the outstanding amount of 

18 a loan under subsection (b)(2) that 

19 was made during the period beginning 

20 on August 8, 2023, and ending on the 

21 date on which covered loans are made 

22 available to be refinanced under the 

23 covered loan; or 

24 ‘‘(ii) the costs, expenses, and expendi25 tures described in subclauses (I) through 


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1 (XI) of subparagraph (F)(i) that were in2 curred by the applicant during the covered 

3 period with respect to employees of the ap4 plicant on Maui, up to $10,000,000. 

5 ‘‘(F) ALLOWABLE USES OF COVERED

6 LOANS.— 

7 ‘‘(i) IN GENERAL.—During the cov8 ered period, an eligible recipient may, in 

9 addition to the allowable uses of a loan 

10 made under this subsection, use the pro11 ceeds of the covered loan for any of the fol12 lowing costs, expenses, or expenditures in13 curred with respect to employees, property, 

14 or operations of the eligibility recipient on 

15 Maui: 

16 ‘‘(I) Payroll costs. 

17 ‘‘(II) Costs related to the con18 tinuation of group health care benefits 

19 during periods of paid sick, medical, 

20 or family leave, and insurance pre21 miums. 

22 ‘‘(III) Employee salaries, com23 missions, or similar compensations. 

24 ‘‘(IV) Payments of interest on 

25 any mortgage obligation (which shall 


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1 not include any prepayment of or pay2 ment of principal on a mortgage obli3 gation). 

4 ‘‘(V) Rent (including rent under 

5 a lease agreement). 

6 ‘‘(VI) Utilities. 

7 ‘‘(VII) Interest on any other debt 

8 obligations that were incurred before 

9 the covered period. 

10 ‘‘(VIII) Covered operations ex11 penditures, as defined in section 4(a) 

12 of the Healing and Economic Ad13 vancement for Local businesses in 

14 Maui Act. 

15 ‘‘(IX) Covered property damage 

16 costs, as defined in such section. 

17 ‘‘(X) Covered supplier costs, as 

18 defined in such section. 

19 ‘‘(XI) Covered worker protection 

20 expenditures, as defined in such sec21 tion. 

22 ‘‘(ii) DELEGATED AUTHORITY.— 

23 ‘‘(I) IN GENERAL.—For purposes 

24 of making covered loans for the pur25 poses described in clause (i), a lender 


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1 approved to make loans under this 

2 subsection shall be deemed to have 

3 been delegated authority by the Ad4 ministrator to make and approve cov5 ered loans, subject to the provisions of 

6 this paragraph. 

7 ‘‘(II) CONSIDERATIONS.—In eval8 uating the eligibility of a borrower for 

9 a covered loan with the terms de10 scribed in this paragraph, a lender 

11 shall consider whether the borrower— 

12 ‘‘(aa) was in operation on 

13 August 8, 2023; and 

14 ‘‘(bb)(AA) had employees 

15 for whom the borrower paid sala16 ries and payroll taxes; or 

17 ‘‘(BB) paid independent 

18 contractors, as reported on a 

19 Form 1099–MISC. 

20 ‘‘(iii) ADDITIONAL LENDERS.—The 

21 authority to make loans under this para22 graph shall be extended to additional lend23 ers determined by the Administrator and 

24 the Secretary of the Treasury to have the 

25 necessary qualifications to process, close, 


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1 disburse and service loans made with the 

2 guarantee of the Administration. 

3 ‘‘(iv) REFINANCE.—A loan made 

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

5 beginning on August 8, 2023, and ending 

6 on the date on which covered loans are 

7 made available may be refinanced as part 

8 of a covered loan. 

9 ‘‘(v) NONRECOURSE.—Notwith10 standing the waiver of the personal guar11 antee requirement or collateral under sub12 paragraph (J), the Administrator shall 

13 have no recourse against any individual 

14 shareholder, member, or partner of an eli15 gible recipient of a covered loan for non16 payment of any covered loan, except to the 

17 extent that such shareholder, member, or 

18 partner uses the covered loan proceeds for 

19 a purpose not authorized under clause (i) 

20 or (iv). 

21 ‘‘(G) CERTIFICATION.—An eligible recipi22 ent applying for a covered loan shall make a 

23 good faith certification— 

24 ‘‘(i) that the uncertainty of current 

25 economic conditions makes necessary the 


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1 loan request to support the ongoing oper2 ations of the eligible recipient; 

3 ‘‘(ii) acknowledging that funds will be 

4 used to retain workers and maintain pay5 roll or make mortgage payments, lease 

6 payments, and utility payments; 

7 ‘‘(iii) that the eligible recipient does 

8 not have an application pending for a loan 

9 under this subsection for the same purpose 

10 and duplicative of amounts applied for or 

11 received under a covered loan; and 

12 ‘‘(iv) during the covered period, that 

13 the eligible recipient has not received 

14 amounts under this subsection for the 

15 same purpose and duplicative of amounts 

16 applied for or received under a covered 

17 loan. 

18 ‘‘(H) FEE WAIVER.—With respect to a 

19 covered loan— 

20 ‘‘(i) in lieu of the fee otherwise appli21 cable under paragraph (23)(A), the Ad22 ministrator shall collect no fee; and 

23 ‘‘(ii) in lieu of the fee otherwise appli24 cable under paragraph (18)(A), the Ad25 ministrator shall collect no fee. 


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1 ‘‘(I) CREDIT ELSEWHERE.—During the 

2 covered period, the requirement that a small 

3 business concern is unable to obtain credit else4 where, as defined in section 3(h), shall not 

5 apply to a covered loan. 

6 ‘‘(J) WAIVER OF PERSONAL GUARANTEE

7 REQUIREMENT.—With respect to a covered 

8 loan— 

9 ‘‘(i) no personal guarantee shall be re10 quired for the covered loan; and 

11 ‘‘(ii) no collateral shall be required for 

12 the covered loan. 

13 ‘‘(K) MATURITY FOR LOANS WITH RE14 MAINING BALANCE AFTER APPLICATION OF

15 FORGIVENESS.—With respect to a covered loan 

16 that has a remaining balance after reduction 

17 based on the loan forgiveness amount under 

18 section 4 of the Healing and Economic Ad19 vancement for Local businesses in Maui Act— 

20 ‘‘(i) the remaining balance shall con21 tinue to be guaranteed by the Administra22 tion under this subsection; and 

23 ‘‘(ii) the covered loan shall have a 

24 maximum maturity of 10 years from the 


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1 date on which the borrower applies for 

2 loan forgiveness under that section. 

3 ‘‘(L) INTEREST RATE REQUIREMENTS.—A 

4 covered loan shall bear an interest rate not to 

5 exceed 4 percent, calculated on a non6 compounding, non-adjustable basis. 

7 ‘‘(M) LOAN DEFERMENT.— 

8 ‘‘(i) DEFINITION OF IMPACTED BOR9 ROWER.— 

10 ‘‘(I) IN GENERAL.—In this sub11 paragraph, the term ‘impacted bor12 rower’ means an eligible recipient 

13 that— 

14 ‘‘(aa) was in operation on 

15 August 8, 2023; and 

16 ‘‘(bb) has an application for 

17 a covered loan that is approved 

18 or pending approval on or after 

19 the date of the enactment of this 

20 paragraph. 

21 ‘‘(II) PRESUMPTION.—For pur22 poses of this subparagraph, an im23 pacted borrower is presumed to have 

24 been adversely impacted by the Ha25 wai’i Wildfires. 


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1 ‘‘(ii) DEFERRAL.—During the covered 

2 period, the Administrator shall— 

3 ‘‘(I) consider each eligible recipi4 ent that applies for a covered loan to 

5 be an impacted borrower; and 

6 ‘‘(II) require lenders under this 

7 subsection to provide complete pay8 ment deferment relief for impacted 

9 borrowers with covered loans for a pe10 riod of not less than 6 months, includ11 ing payment of principal, interest, and 

12 fees, and not more than 1 year. 

13 ‘‘(iii) SECONDARY MARKET.—During 

14 the covered period, with respect to a cov15 ered loan that is sold on the secondary 

16 market, if an investor declines to approve 

17 a deferral requested by a lender under 

18 clause (ii), the Administrator shall exercise 

19 the authority to purchase the loan so that 

20 the impacted borrower may receive a defer21 ral for a period of not less than 6 months, 

22 including payment of principal, interest, 

23 and fees, and not more than 1 year. 

24 ‘‘(iv) GUIDANCE.—Not later than 30 

25 days after the date of enactment of this 


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1 paragraph, the Administrator shall provide 

2 guidance to lenders under this paragraph 

3 on the deferment process described in this 

4 subparagraph. 

5 ‘‘(N) SECONDARY MARKET SALES.—A cov6 ered loan shall be eligible to be sold in the sec7 ondary market consistent with this subsection. 

8 The Administrator may not collect any fee for 

9 any guarantee sold into the secondary market 

10 under this subparagraph. 

11 ‘‘(O) REGULATORY CAPITAL REQUIRE12 MENTS.— 

13 ‘‘(i) RISK WEIGHT.—With respect to 

14 the appropriate Federal banking agencies 

15 or the National Credit Union Administra16 tion Board applying capital requirements 

17 under their respective risk-based capital re18 quirements, a covered loan shall receive a 

19 risk weight of zero percent. 

20 ‘‘(ii) TEMPORARY RELIEF FROM TDR

21 DISCLOSURES.—Notwithstanding any other 

22 provision of law, an insured depository in23 stitution or an insured credit union that 

24 modifies a covered loan in relation to 

25 Hawai‘i Wildfire-related difficulties in a 


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1 troubled debt restructuring on or after Au2 gust 8, 2023, shall not be required to com3 ply with the Financial Accounting Stand4 ards Board Accounting Standards Codi5 fication Subtopic 310–40 (‘Receivables - 

6 Troubled Debt Restructurings by Credi7 tors’) for purposes of compliance with the 

8 requirements of the Federal Deposit Insur9 ance Act (12 U.S.C. 1811 et seq.), until 

10 such time and under such circumstances as 

11 the appropriate Federal banking agency or 

12 the National Credit Union Administration 

13 Board, as applicable, determines appro14 priate. 

15 ‘‘(P) REIMBURSEMENT FOR PROC16 ESSING.— 

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

18 shall reimburse a lender authorized to 

19 make a covered loan at a rate, based on 

20 the balance of the financing outstanding at 

21 the time of disbursement of the covered 

22 loan, of— 

23 ‘‘(I) the lesser of 50 percent of 

24 such balance or $2,500 for a covered 

25 loan of not more than $50,000; 


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1 ‘‘(II) 5 percent for a covered loan 

2 of more than $50,000 and not more 

3 than $350,000; 

4 ‘‘(III) 3 percent for a covered 

5 loan of more than $350,000 and less 

6 than $2,000,000; and 

7 ‘‘(IV) 1 percent for a covered 

8 loan of not less than $2,000,000. 

9 ‘‘(ii) FEE LIMITS.—An agent that as10 sists an eligible recipient to prepare an ap11 plication for a covered loan may not collect 

12 a fee in excess of the limits established by 

13 the Administrator. If an eligible recipient 

14 has knowingly retained an agent, such fees 

15 shall be paid by the eligible recipient and 

16 may not be paid out of the proceeds of a 

17 covered loan. A lender shall only be respon18 sible for paying fees to an agent for serv19 ices for which the lender directly contracts 

20 with the agent. 

21 ‘‘(iii) TIMING.—A reimbursement de22 scribed in clause (i) shall be made not later 

23 than 5 days after the disbursement of the 

24 covered loan. 


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1 ‘‘(Q) DUPLICATION.—Nothing in this 

2 paragraph shall prohibit a recipient of an eco3 nomic injury disaster loan made under sub4 section (b)(2) during the period beginning on 

5 August 8, 2023, and ending on the date on 

6 which covered loans are made available that is 

7 for a purpose other than paying payroll costs or 

8 any other purpose described in subparagraph 

9 (F) from receiving assistance under this para10 graph. 

11 ‘‘(R) WAIVER OF PREPAYMENT PEN12 ALTY.—Notwithstanding any other provision of 

13 law, there shall be no prepayment penalty for 

14 any payment made on a covered loan.’’. 

15 (b) SET-ASIDES FOR INSURED DEPOSITORY INSTI16 TUTIONS, CREDIT UNIONS, AND COMMUNITY FINANCIAL

17 INSTITUTIONS.— 

18 (1) INSURED DEPOSITORY INSTITUTIONS AND

19 CREDIT UNIONS.—In making loan guarantees under 

20 paragraph (38) of section 7(a) of the Small Business 

21 Act (15 U.S.C. 636(a)), the Administrator of the 

22 Small Business Administration shall guarantee not 

23 less than $30,000,000,000 in loans made by— 

24 (A) insured depository institutions with 

25 consolidated assets of not less than 


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1 $10,000,000,000 and less than 

2 $50,000,000,000; and 

3 (B) credit unions with consolidated assets 

4 of not less than $10,000,000,000 and less than 

5 $50,000,000,000. 

6 (2) COMMUNITY FINANCIAL INSTITUTIONS, 

7 SMALL INSURED DEPOSITORY INSTITUTIONS, AND

8 CREDIT UNIONS.—In making loan guarantees under 

9 paragraph (38) of section 7(a) of the Small Business 

10 Act (15 U.S.C. 636(a)), the Administrator of the 

11 Small Business Administration shall guarantee not 

12 less than $30,000,000,000 in loans made by— 

13 (A) community financial institutions; 

14 (B) insured depository institutions with 

15 consolidated assets of less than 

16 $10,000,000,000; and 

17 (C) credit unions with consolidated assets 

18 of less than $10,000,000,000. 

19 (3) DEFINITIONS.—In this subsection, the 

20 terms ‘‘community financial institution’’, ‘‘credit 

21 union’’, and ‘‘insured depository institution’’ have 

22 the meanings given such terms in section 

23 7(a)(36)(A) of the Small Business Act (15 U.S.C. 

24 636(a)(36)(A)). 


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1 (c) COMMITMENTS FOR 7(A) LOANS.—During the pe2 riod beginning on August 8, 2023, and ending on May 

3 10, 2024— 

4 (1) the amount authorized for commitments for 

5 loans authorized under paragraph (38) of section 

6 7(a) of the Small Business Act (15 U.S.C. 636(a)), 

7 as added by subsection (a) of this section, shall be 

8 $400,000,000,000; and 

9 (2) the amount authorized for commitments for 

10 general business loans under the heading ‘‘Business 

11 Loans Program Account’’ in title V of the Financial 

12 Services and General Government Appropriations 

13 Act, 2023 (division E of Public Law 117–328) shall 

14 not apply with respect to the loans described in 

15 paragraph (1). 

16 (d) EXPRESS LOANS.—Section 7(a)(31)(D) of the 

17 Small Business Act (15 U.S.C. 636(a)(31)(D)) is amend18 ed by striking ‘‘$500,000’’ and inserting ‘‘$1,000,000’’. 

19 SEC. 4. LOAN FORGIVENESS. 

20 (a) DEFINITIONS.—In this section: 

21 (1) ADMINISTRATION.—The term ‘‘Administra22 tion’’ means the Small Business Administration. 

23 (2) ADMINISTRATOR.—The term ‘‘Adminis24 trator’’ means the Administrator of the Small Busi25 ness Administration. 


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1 (3) COVERED LOAN.—The term ‘‘covered loan’’ 

2 means— 

3 (A) a loan of more than $500 made under 

4 paragraph (1) or (2) of section 7(b) of the 

5 Small Business Act (15 U.S.C. 636(b)) during 

6 the period beginning on August 8, 2023, and 

7 ending on May 10, 2024 in response to the Ha8 wai’i Wildfires; or 

9 (B) a loan guaranteed under paragraph 

10 (38) of section 7(a) of such Act (15 U.S.C. 

11 636(a)), as added by section 3(a). 

12 (4) COVERED MORTGAGE OBLIGATION.—The 

13 term ‘‘covered mortgage obligation’’ means any in14 debtedness or debt instrument incurred in the ordi15 nary course of business that— 

16 (A) is a liability of the borrower; 

17 (B) is a mortgage on real or personal 

18 property; and 

19 (C) was incurred before August 8, 2023. 

20 (5) COVERED OPERATIONS EXPENDITURE.— 

21 The term ‘‘covered operations expenditure’’ has the 

22 meaning given such term in section 7A(a) of the 

23 Small Business Act (15 U.S.C. 636m(a)). 

24 (6) COVERED PERIOD.—The term ‘‘covered pe25 riod’’ means the period— 


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1 (A) beginning on the date of the origina2 tion of a covered loan; and 

3 (B) ending on a date selected by the eligi4 ble recipient of the covered loan that occurs 

5 during the period— 

6 (i) beginning on the date that is 8 

7 weeks after such date of origination; and 

8 (ii) ending on the date that is 24 

9 weeks after such date of origination. 

10 (7) COVERED PROPERTY DAMAGE COST.—The 

11 term ‘‘covered property damage cost’’ means a cost 

12 related to property damage and vandalism or looting 

13 due to public disturbances that occurred during the 

14 period beginning on August 8, 2023, and ending on 

15 May 10, 2024 that was not covered by insurance or 

16 other compensation. 

17 (8) COVERED RENT OBLIGATION.—The term 

18 ‘‘covered rent obligation’’ means rent obligated 

19 under a leasing agreement in force before August 8, 

20 2023. 

21 (9) COVERED SUPPLIER COST.—The term ‘‘cov22 ered supplier cost’’ means an expenditure made by 

23 an entity to a supplier of goods for the supply of 

24 goods that— 


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1 (A) are essential to the operations of the 

2 entity at the time at which the expenditure is 

3 made; and 

4 (B) is made pursuant to a contract, order, 

5 or purchase order— 

6 (i) in effect at any time before the 

7 covered period with respect to the applica8 ble covered loan; or 

9 (ii) with respect to perishable goods, 

10 in effect before or at any time during the 

11 covered period with respect to the applica12 ble covered loan. 

13 (10) COVERED UTILITY PAYMENT.—The term 

14 ‘‘covered utility payment’’ means payment for a 

15 service for the distribution of electricity, gas, water, 

16 transportation, telephone, or internet access for 

17 which service began before August 8, 2023. 

18 (11) ELIGIBLE RECIPIENT.—The term ‘‘eligible 

19 recipient’’ means the recipient of a covered loan. 

20 (12) EXPECTED FORGIVENESS AMOUNT.—The 

21 term ‘‘expected forgiveness amount’’ means— 

22 (A) with respect to a covered loan de23 scribed in paragraph (3)(A), the amount of 

24 principal of such loan that a lender reasonably 

25 expects a borrower to expend during the covVerDate Sep 11 2014 23:36 Feb 02, 2024 Jkt 049200 PO 00000 Frm 00032 Fmt 6652 Sfmt 6201 E:\BILLS\H7061.IH H7061

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1 ered period on costs payable using such covered 

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

3 Act (15 U.S.C. 636(b)); and 

4 (B) with respect to a covered loan de5 scribed in paragraph (3)(B), the amount of 

6 principal of such covered loan that a lender rea7 sonably expects a borrower to expend during 

8 the covered period on the sum of any— 

9 (i) payroll costs; 

10 (ii) payments of interest on any cov11 ered mortgage obligation (which shall not 

12 include any prepayment of or payment of 

13 principal on a covered mortgage obliga14 tion); 

15 (iii) payments on any covered rent ob16 ligation; 

17 (iv) covered utility payments; 

18 (v) covered operations expenditures; 

19 (vi) covered property damage costs; 

20 and 

21 (vii) covered supplier costs. 

22 (13) HAWAI’I WILDFIRES.—The term ‘‘Hawai’i 

23 Wildfires’’ has the meanings given such term in sec24 tion 2(a). 

25 (14) PAYROLL COSTS; SEASONAL EMPLOYER.— 


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1 (A) IN GENERAL.—Except as provided in 

2 subparagraph (B), the terms ‘‘payroll costs’’ 

3 and ‘‘seasonal employer’’ have the meanings 

4 given those terms in section 7(a)(36)(A) of the 

5 Small Business Act (15 U.S.C. 636(a)(36)(A)). 

6 (B) PAYROLL COSTS EXCLUSIONS.—The 

7 term ‘‘payroll costs’’ shall not include qualified 

8 wages taken into account in determining the 

9 credit allowed under section 2301 of the 

10 CARES Act (26 U.S.C. 3111 note), qualified 

11 wages taken into account in determining the 

12 credit allowed under subsection (a) or (d) of 

13 section 303 of the Taxpayer Certainty and Dis14 aster Relief Act of 2020 (Public Law 116–260; 

15 134 Stat. 3075), or premiums taken into ac16 count in determining the credit allowed under 

17 section 6432 of the Internal Revenue Code of 

18 1986. 

19 (15) PRIVATE SCHOOL.—The term ‘‘private 

20 school’’ means an institution of higher education (as 

21 such term is defined in section 101(a) of the Higher 

22 Education Act of 1965 (20 U.S.C. 1001(a)) that is 

23 not a public institution. 

24 (b) FORGIVENESS AND WAIVERS.— 


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1 (1) PAYROLL LOANS.—A recipient of a covered 

2 loan described in subsection (a)(3)(B) shall be eligi3 ble for forgiveness of indebtedness on such covered 

4 loan in an amount equal to the sum of the following 

5 costs incurred and payments made during the cov6 ered period: 

7 (A) Payroll costs. 

8 (B) Any payment of interest on any cov9 ered mortgage obligation (which shall not in10 clude any prepayment of or payment of prin11 cipal on a covered mortgage obligation). 

12 (C) Any payment on any covered rent obli13 gation. 

14 (D) Any covered utility payment. 

15 (E) Any covered operations expenditure. 

16 (F) Any covered property damage cost. 

17 (G) Any covered supplier cost. 

18 (2) DISASTER LOANS.— 

19 (A) IN GENERAL.—Except as provided by 

20 subparagraph (B), a recipient of a covered loan 

21 described in subsection (a)(3)(A) shall, at the 

22 election of the recipient, be eligible for— 

23 (i) forgiveness of indebtedness on such 

24 covered loan in amount equal to the lesser 

25 of— 


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1 (I) the amount by which such 

2 covered loan exceeds $500; and 

3 (II) $1800; or 

4 (ii) a waiver of interest charges on 

5 such covered loan, except that— 

6 (I) the total amount of interest 

7 waived under such waiver may not ex8 ceed $1800; and 

9 (II) such waiver may last not 

10 more than three years. 

11 (B) PRIVATE SCHOOLS.—A recipient of a 

12 covered loan described in subsection (a)(3)(A) 

13 that is a private school shall, at the election of 

14 the recipient, be eligible for— 

15 (i) forgiveness of indebtedness on such 

16 covered loan as described in subparagraph 

17 (A)(i); or 

18 (ii) a waiver of interest and principal 

19 charges on such covered. 

20 (c) TREATMENT OF AMOUNTS FORGIVEN AND

21 WAIVED.— 

22 (1) IN GENERAL.—Amounts which have been 

23 forgiven under this section shall be considered can24 celed indebtedness by the lender. 


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1 (2) PURCHASE OF GUARANTEES.—For purposes 

2 of the purchase of the guarantee for a covered loan 

3 by the Administrator, amounts which are forgiven 

4 under this section shall be treated in accordance 

5 with the procedures that are otherwise applicable to 

6 a loan guaranteed under section 7(a) of the Small 

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

8 (3) REMITTANCES.— 

9 (A) FORGIVEN AMOUNTS.—Not later than 

10 90 days after the date on which the amount of 

11 forgiveness under this section is determined 

12 with respect to a covered loan described in sub13 section (a)(3)(B), and not later the two weeks 

14 after the date on which the amount of forgive15 ness under this section is determined with re16 spect to a covered loan described in subsection 

17 (a)(3)(A), the Administrator shall remit to the 

18 lender an amount equal to the amount of for19 giveness, plus any interest accrued through the 

20 date of payment. 

21 (B) INTEREST WAIVED.—During the pe22 riod interest charges are waived under subpara23 graphs (A)(ii) or (B)(ii) of subsection (b)(2) on 

24 a covered loan in which any individual or entity 

25 other than the Administrator is participating, 


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1 the Administrator shall pay to each individual 

2 and entity participating in the covered loan the 

3 interest that, but for such subsection, would be 

4 owed to such individual or entity at the time 

5 such interest would be due. 

6 (4) ADVANCE PURCHASE OF COVERED

7 LOANS.— 

8 (A) REPORT.—A lender authorized under 

9 subsections (a) or (b) of section 7 of the Small 

10 Business Act (15 U.S.C. 636), or, at the discre11 tion of the Administrator, a third party partici12 pant in the secondary market, may, report to 

13 the Administrator an expected forgiveness 

14 amount on a covered loan or on a pool of cov15 ered loans of up to 100 percent of the principal 

16 on the covered loan or pool of covered loans, re17 spectively. 

18 (B) PURCHASE.—The Administrator shall 

19 purchase the expected forgiveness amount de20 scribed in subparagraph (A) as if the amount 

21 were the principal amount of a loan guaranteed 

22 under section 7(a) of the Small Business Act 

23 (15 U.S.C. 636(a)). 

24 (C) TIMING.—Not later than 15 days after 

25 the date on which the Administrator receives a 


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1 report under subparagraph (A), the Adminis2 trator shall purchase the expected forgiveness 

3 amount under subparagraph (B) with respect to 

4 each covered loan to which the report relates. 

5 (d) APPLICATION.— 

6 (1) 7(A) LOANS.—An eligible recipient seeking 

7 loan forgiveness with respect to a covered loan de8 scribed in subsection (a)(3)(B) under this section 

9 shall submit to the lender that is servicing the cov10 ered loan an application, which shall include— 

11 (A) documentation verifying the number of 

12 full-time equivalent employees on payroll and 

13 pay rates to support such loan forgiveness, in14 cluding— 

15 (i) payroll tax filings reported to the 

16 Internal Revenue Service; and 

17 (ii) State income, payroll, and unem18 ployment insurance filings; 

19 (B) documentation, including cancelled 

20 checks, payment receipts, transcripts of ac21 counts, purchase orders, orders, invoices, or 

22 other documents verifying payments on covered 

23 mortgage obligations, payments on covered rent 

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1 age costs, payments on covered supplier costs, 

2 payments on covered worker protection expendi3 tures, and covered utility payments; 

4 (C) a certification from a representative of 

5 the eligible recipient authorized to make such 

6 certifications that— 

7 (i) the documentation presented is 

8 true and correct; and 

9 (ii) the amount for which forgiveness 

10 is requested was used to retain employees, 

11 make interest payments on a covered mort12 gage obligation, make payments on a cov13 ered rent obligation, make payments on 

14 covered operations expenditures, make pay15 ments on covered property damage costs, 

16 make payments on covered supplier costs, 

17 make payments on covered worker protec18 tion expenditures, or make covered utility 

19 payments; and 

20 (D) any other documentation the Adminis21 trator determines necessary. 

22 (2) DISASTER LOANS.— 

23 (A) IN GENERAL.—An eligible recipient 

24 seeking loan forgiveness with respect to a cov25 ered loan described in subsection (a)(3)(A) 


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1 under this section shall submit to the appro2 priate entity an application at such time, in 

3 such manner, and containing such information 

4 as the Administrator determines appropriate. 

5 (B) APPROPRIATE ENTITY DEFINED.—In 

6 this paragraph, the term ‘‘appropriate entity’’ 

7 means— 

8 (i) with respect to a covered loan de9 scribed in subsection (a)(3)(A) in which 

10 the Administrator is participating on a 

11 guaranteed basis, the lender that is serv12 icing the covered loan; and 

13 (ii) in all other cases, the Adminis14 trator. 

15 (e) PROHIBITION ON FORGIVENESS WITHOUT DOCU16 MENTATION.—No eligible recipient shall receive forgive17 ness under this section without submitting the documenta18 tion required under subsection (d). 

19 (f) DECISION.—Not later than 60 days after the date 

20 on which a lender or the Administrator receives an appli21 cation under subsection (e) for loan forgiveness under this 

22 section from an eligible recipient, the lender or the Admin23 istrator, as applicable, shall issue a decision on the appli24 cation. 

25 (g) HOLD HARMLESS.— 


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1 (1) RELIANCE.—A lender may rely on any cer2 tification or documentation submitted by an appli3 cant for a covered loan or an eligible recipient or eli4 gible entity receiving a covered loan that— 

5 (A) is submitted pursuant to all applicable 

6 statutory requirements, regulations, and guid7 ance related to such covered loan, including 

8 under subsections (a)(38), as added by section 

9 3(a) of this Act, and (b) section 7 of the Small 

10 Business Act (15 U.S.C. 636) and under this 

11 section; and 

12 (B) attests that the applicant, eligible re13 cipient, or eligible entity, as applicable, has ac14 curately provided the certification or docu15 mentation to the lender in accordance with the 

16 statutory requirements, regulations, and guid17 ance described in subparagraph (A). 

18 (2) NO ENFORCEMENT ACTION.—With respect 

19 to a lender that relies on a certification or docu20 mentation described in paragraph (1) related to cov21 ered loan, an enforcement action may not be taken 

22 against the lender, and the lender shall not be sub23 ject to any penalties relating to loan origination or 

24 forgiveness of the covered loan, if— 


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1 (A) the lender acts in good faith relating 

2 to loan origination or forgiveness of the covered 

3 loan based on that reliance; and 

4 (B) all other relevant Federal, State, local, 

5 and other statutory and regulatory require6 ments applicable to the lender are satisfied with 

7 respect to the covered loan. 

8 (h) TAX TREATMENT.—For purposes of the Internal 

9 Revenue Code of 1986— 

10 (1) no amount shall be included in the gross in11 come of the eligible recipient by reason of forgive12 ness of indebtedness or waivers described in sub13 section (b), 

14 (2) no deduction shall be denied, no tax at15 tribute shall be reduced, and no basis increase shall 

16 be denied, by reason of the exclusion from gross in17 come provided by paragraph (1), and 

18 (3) in the case of an eligible recipient that is a 

19 partnership or S corporation— 

20 (A) any amount excluded from income by 

21 reason of paragraph (1) shall be treated as tax 

22 exempt income for purposes of sections 705 and 

23 1366 of the Internal Revenue Code of 1986, 

24 and 


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1 (B) except as provided by the Secretary of 

2 the Treasury (or the Secretary’s delegate), any 

3 increase in the adjusted basis of a partner’s in4 terest in a partnership under section 705 of the 

5 Internal Revenue Code of 1986 with respect to 

6 any amount described in subparagraph (A) 

7 shall equal the partner’s distributive share of 

8 deductions resulting from costs giving rise to 

9 forgiveness described in subsection (b) or from 

10 charges waived as described in such subsection. 

11 (i) RULE OF CONSTRUCTION.—The cancellation of 

12 indebtedness on a covered loan under this section shall not 

13 otherwise modify the terms and conditions of the covered 

14 loan. 

15 (j) REGULATIONS.—Not later than 30 days after the 

16 date of enactment of this Act, the Administrator shall 

17 issue guidance and regulations implementing this section. 

18 SEC. 5. MAUI WILDFIRE PAYCHECK PROTECTION PROGRAM 

19 LOAN FACILITY. 

20 The Board of Governors of the Federal Reserve Sys21 tem shall, under section 13(3) of the Federal Reserve Act 

22 (12 U.S.C. 343(3)), establish a Maui Wildfire Paycheck 

23 Protection Program Liquidity Facility to provide loans to 

24 entities making loans guaranteed under the Maui Wildfire 

25 Paycheck Protection Program. In establishing the requireVerDate Sep 11 2014 23:36 Feb 02, 2024 Jkt 049200 PO 00000 Frm 00044 Fmt 6652 Sfmt 6201 E:\BILLS\H7061.IH H7061

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1 ments for the Maui Wildfire Paycheck Protection Pro2 gram, the Board of Governors shall make the require3 ments as close as practicable to the requirements applica4 ble to the Paycheck Protection Program Liquidity Facil5 ity. 

Æ 


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