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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7061 Introduced in House (IH)]

<DOC>

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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Healing and Economic Advancement for 
Local businesses in Maui Act'' or the ``HEAL Maui Act''.

SEC. 2. EMERGENCY EIDL GRANTS.

    (a) Definitions.--In this section--
            (1) the term ``covered entity'' means--
                    (A) a business with not more than 500 employees;
                    (B) any individual who operates under a sole 
                proprietorship, with or without employees, or as an 
                independent contractor;
                    (C) a cooperative with not more than 500 employees;
                    (D) an ESOP (as defined in section 3 of the Small 
                Business Act (15 U.S.C. 632)) with not more than 500 
                employees; or
                    (E) a tribal small business concern, as described 
                in section 31(b)(2)(C) of the Small Business Act (15 
                U.S.C. 657a(b)(2)(C)), with not more than 500 
                employees;
            (2) the term ``covered period'' means the period beginning 
        on August 8, 2023, and ending on May 10, 2024;
            (3) the term ``eligible entity'' means a covered entity the 
        principal office of which is located on Maui and not fewer than 
        35 percent of the employees of which reside on Maui; and
            (4) the term ``Hawai'i Wildfires'' means wildfires 
        occurring in Hawai'i during the period beginning on August 1, 
        2023, and ending on September 30, 2023.
    (b) Eligible Entities.--During the covered period, in addition to 
small business concerns, private nonprofit organizations, and small 
agricultural cooperatives, an eligible entity shall be eligible for a 
loan made under section 7(b)(2) of the Small Business Act (15 U.S.C. 
636(b)(2)).
    (c) Terms; Credit Elsewhere.--With respect to a loan made under 
section 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2)) during 
the covered period in response to the Hawai`i Wildfires, the 
Administrator shall waive--
            (1) any rules related to personal guarantee on advances and 
        loans of not more than $200,000 during the covered period for 
        all applicants;
            (2) the requirement that an applicant needs to be in 
        business for the 1-year period before the disaster, except that 
        no waiver may be made for a business that was not in operation 
        on August 8, 2023; and
            (3) the requirement in the flush matter following 
        subparagraph (E) of section 7(b)(2) of the Small Business Act 
        (15 U.S.C. 636(b)(2)) that an applicant be unable to obtain 
        credit elsewhere.
    (d) Approval and Ability To Repay for Small Dollar Loans.--With 
respect to a loan made under section 7(b)(2) of the Small Business Act 
(15 U.S.C. 636(b)(2)) during the covered period in response to the 
Hawai`i Wildfires, the Administrator may--
            (1) approve an applicant based solely on the credit score 
        of the applicant and shall not require an applicant to submit a 
        tax return or a tax return transcript for such approval; or
            (2) use alternative appropriate methods to determine an 
        applicant's ability to repay.
    (e) Emergency Grant.--
            (1) In general.--During the covered period, an entity made 
        eligible for a loan under section 7(b)(2) of the Small Business 
        Act (15 U.S.C. 636(b)(2)) by subsection (b) of this Act, 
        including small business concerns, private nonprofit 
        organizations, and small agricultural cooperatives, that 
        applies for a loan under such section 7(b)(2) in response to 
        the Hawai`i Wildfires may request that the Administrator 
        provide to such entity an advance that is, subject to paragraph 
        (4), in the amount requested by such entity.
            (2) Timing.--The Administrator shall provide an advance 
        under this subsection to the entity requesting such advance not 
        later than three days after the Administrator receives from 
        such entity an application for a loan under section 7(b)(2) of 
        the Small Business Act (15 U.S.C. 636(b)(2)) in response to the 
        Hawai`i Wildfires, a request for such advance, and the self-
        certification required by paragraph (3).
            (3) Verification.--
                    (A) In general.--An entity seeking an advance under 
                this subsection shall submit to the Administrator, 
                under penalty of perjury pursuant to section 1746 of 
                title 28, United States Code, a self-certification that 
                such entity is an eligible entity.
                    (B) Timing.--The Administrator may not disburse any 
                amounts under this subsection to an entity before such 
                entity submits a self-certification under subparagraph 
                (A).
            (4) Amount.--The amount of an advance provided under this 
        subsection shall be not more than $15,000.
            (5) Prioritization.--
                    (A) In general.--The Administrator shall prioritize 
                providing advances under this subsection to eligible 
                entities that experienced economic loss of not less 
                than 30 percent.
                    (B) Economic loss defined.--In this paragraph, the 
                term ``economic loss'' means, with respect to an 
                eligible entity--
                            (i) the amount by which the gross receipts 
                        of the eligible entity declined during an 8-
                        week period between August 8, 2023, and May 10, 
                        2024, relative to a comparable 8-week period 
                        between January 1, 2022, and August 7, 2023; or
                            (ii) if the eligible entity is a seasonal 
                        business concern, such other amount determined 
                        appropriate by the Administrator.
            (6) Use of funds.--An advance provided under this 
        subsection may be used to address any allowable purpose for a 
        loan made under section 7(b)(2) of the Small Business Act (15 
        U.S.C. 636(b)(2)), including--
                    (A) maintaining payroll to retain employees during 
                business disruptions or substantial slowdowns;
                    (B) paying increased costs to obtain materials due 
                to disruptions to supply chains;
                    (C) making rent or mortgage payments; and
                    (D) repaying obligations that cannot be met due to 
                revenue losses.
            (7) Repayment.--
                    (A) In general.--An entity shall not be required to 
                repay any amounts of an advance provided under this 
                subsection, even if subsequently denied a loan under 
                section 7(b)(2) of the Small Business Act (15 U.S.C. 
                636(b)(2)).
                    (B) Tax treatment.--For purposes of the Internal 
                Revenue Code of 1986--
                            (i) no amount shall be included in the 
                        gross income of the eligible recipient by 
                        reason of subparagraph (A),
                            (ii) no deduction shall be denied, no tax 
                        attribute shall be reduced, and no basis 
                        increase shall be denied, by reason of the 
                        exclusion from gross income provided by clause 
                        (i), and
                            (iii) in the case of an eligible recipient 
                        that is a partnership or S corporation--
                                    (I) any amount excluded from income 
                                by reason of clause (i) shall be 
                                treated as tax exempt income for 
                                purposes of sections 705 and 1366 of 
                                title 26, and
                                    (II) except as provided by the 
                                Secretary of the Treasury (or the 
                                Secretary's delegate), any increase in 
                                the adjusted basis of a partner's 
                                interest in a partnership under section 
                                705 of title 26 with respect to any 
                                amount described in subclause (I) shall 
                                equal the partner's distributive share 
                                of deductions resulting from costs paid 
                                in accordance with paragraph (6) using 
                                amounts from an advance provided under 
                                this section.
            (8) Subsequent loan grant.--If an entity that receives an 
        advance under this subsection transfers into, or is approved 
        for, the loan program under paragraph (38) of section 7(a) of 
        the Small Business Act (15 U.S.C. 636(a)), the advance amount 
        shall be reduced from the loan forgiveness amount for a loan 
        for payroll costs made under such paragraph (38).
            (9) Authorization of appropriations.--There is authorized 
        to be appropriated to the Administration $1,000,000,000 to 
        carry out this subsection.
            (10) Termination.--The authority to make advances under 
        this subsection shall terminate on May 10, 2024.
    (f) Appropriations.--There is appropriated, out of amounts in the 
Treasury not otherwise appropriated, for the fiscal year ending 
September 30, 2023, to remain available until September 30, 2024, for 
additional amounts $1,000,000,000 under the heading ``Small Business 
Administration--Emergency EIDL Grants'' for carrying out this section.

SEC. 3. MAUI WILDFIRE PAYCHECK PROTECTION PROGRAM.

    (a) In General.--Section 7(a) of the small Business Act (15 U.S.C. 
636(a)) is amended--
            (1) in paragraph (2)--
                    (A) in subparagraph (A), in the matter preceding 
                clause (i), by striking ``and (F)'' and inserting 
                ``(F), and (G)''; and
                    (B) by adding at the end the following new 
                subparagraph:
                    ``(G) Participation in the maui wildfire paycheck 
                protection program.--In an agreement to participate in 
                a loan on a deferred basis under paragraph (38), the 
                participation by the Administration shall be 100 
                percent.''; and
            (2) by adding at the end the following new paragraph:
            ``(38) Maui wildfire paycheck protection program.--
                    ``(A) Definitions.--In this paragraph--
                            ``(i) the terms `appropriate Federal 
                        banking agency', `insured depository 
                        institution', `eligible self-employed 
                        individual', `insured credit union', `nonprofit 
                        organization', `payroll costs' and `veterans 
                        organization' have the meanings given such 
                        terms under paragraph (36)(A);
                            ``(ii) the term `covered loan' means a loan 
                        made under this paragraph during the covered 
                        period;
                            ``(iii) the term `covered period' means the 
                        period beginning on August 8, 2023, and ending 
                        on May 10, 2024; and
                            ``(iv) the term `eligible recipient' means 
                        an individual or entity that is eligible to 
                        receive a covered loan.
                    ``(B) Maui wildfire paycheck protection program.--
                Except as otherwise provided in this paragraph, the 
                Administrator may guarantee covered loans under the 
                same terms, conditions, and processes as a loan made 
                under this subsection.
                    ``(C) Registration of loans.--Not later than 15 
                days after the date on which a loan is made under this 
                paragraph, the Administration shall register the loan 
                using the TIN (as defined in section 7701 of title 26) 
                assigned to the borrower.
                    ``(D) Increased eligibility for certain small 
                business and organizations.--
                            ``(i) Inclusion of sole proprietors, 
                        independent contractors, and eligible self-
                        employed individuals.--
                                    ``(I) In general.--During the 
                                covered period, individuals who operate 
                                under a sole proprietorship or as an 
                                independent contractor and eligible 
                                self-employed individuals shall be 
                                eligible to receive a covered loan.
                                    ``(II) Documentation.--An eligible 
                                self-employed individual, independent 
                                contractor, or sole proprietorship 
                                seeking a covered loan shall submit 
                                such documentation as determined 
                                necessary by the Administrator and the 
                                Secretary, to establish the applicant 
                                as eligible.
                            ``(ii) Business concerns with more than 1 
                        physical location.--During the covered period, 
                        any business concern that employs not more than 
                        500 employees per physical location of the 
                        business concern and that is assigned a North 
                        American Industry Classification System code 
                        beginning with 72 at the time of disbursal 
                        shall be eligible to receive a covered loan.
                            ``(iii) Waiver of affiliation rules.--
                        During the covered period, the provisions 
                        applicable to affiliations under section 
                        121.103 of title 13, Code of Federal 
                        Regulations, or any successor regulation, are 
                        waived with respect to eligibility for a 
                        covered loan for--
                                    ``(I) any business concern with not 
                                more than 500 employees that, as of the 
                                date on which the covered loan is 
                                disbursed, is assigned a North American 
                                Industry Classification System code 
                                beginning with 72;
                                    ``(II) any business concern 
                                operating as a franchise that is 
                                assigned a franchise identifier code by 
                                the Administration; and
                                    ``(III) any business concern that 
                                receives financial assistance from a 
                                company licensed under section 301 of 
                                the Small Business Investment Act of 
                                1958 (15 U.S.C. 681).
                            ``(iv) Affiliation.--The provisions 
                        applicable to affiliations under section 
                        121.103 of title 13, Code of Federal 
                        Regulations, or any successor thereto, shall 
                        apply with respect to a nonprofit organization 
                        and a veterans organization in the same manner 
                        as with respect to a small business concern.
                    ``(E) Maximum loan amount.--During the covered 
                period, with respect to a covered loan, the maximum 
                loan amount shall be the lesser of--
                            ``(i)(I) the sum of--
                                    ``(aa) the product obtained by 
                                multiplying--
                                            ``(AA) the average total 
                                        monthly payments by the 
                                        applicant for payroll costs 
                                        incurred during the 1-year 
                                        period before the date on which 
                                        the loan is made, except that, 
                                        in the case of an applicant 
                                        that is seasonal employer, as 
                                        determined by the 
                                        Administrator, the average 
                                        total monthly payments for 
                                        payroll shall be for any 12-
                                        week period selected by the 
                                        seasonal employer that is 
                                        between August 8, 2023, and May 
                                        10, 2024 and ends before the 
                                        date on which the loan is made; 
                                        by
                                            ``(BB) 2.5; and
                                    ``(bb) the outstanding amount of a 
                                loan under subsection (b)(2) that was 
                                made during the period beginning on 
                                August 8, 2023, and ending on the date 
                                on which covered loans are made 
                                available to be refinanced under the 
                                covered loan; or
                            ``(II) if requested by an otherwise 
                        eligible recipient that was not in business 
                        during the period beginning on August 8, 2022, 
                        and ending on May 10, 2023, the sum of--
                                    ``(aa) the product obtained by 
                                multiplying--
                                            ``(AA) the average total 
                                        monthly payments by the 
                                        applicant for payroll costs 
                                        incurred during the period 
                                        beginning on May 11, 2023, and 
                                        ending on August 8, 2023; by
                                            ``(BB) 2.5; and
                                    ``(bb) the outstanding amount of a 
                                loan under subsection (b)(2) that was 
                                made during the period beginning on 
                                August 8, 2023, and ending on the date 
                                on which covered loans are made 
                                available to be refinanced under the 
                                covered loan; or
                            ``(ii) the costs, expenses, and 
                        expenditures described in subclauses (I) 
                        through (XI) of subparagraph (F)(i) that were 
                        incurred by the applicant during the covered 
                        period with respect to employees of the 
                        applicant on Maui, up to $10,000,000.
                    ``(F) Allowable uses of covered loans.--
                            ``(i) In general.--During the covered 
                        period, an eligible recipient may, in addition 
                        to the allowable uses of a loan made under this 
                        subsection, use the proceeds of the covered 
                        loan for any of the following costs, expenses, 
                        or expenditures incurred with respect to 
                        employees, property, or operations of the 
                        eligibility recipient on Maui:
                                    ``(I) Payroll costs.
                                    ``(II) Costs related to the 
                                continuation of group health care 
                                benefits during periods of paid sick, 
                                medical, or family leave, and insurance 
                                premiums.
                                    ``(III) Employee salaries, 
                                commissions, or similar compensations.
                                    ``(IV) Payments of interest on any 
                                mortgage obligation (which shall not 
                                include any prepayment of or payment of 
                                principal on a mortgage obligation).
                                    ``(V) Rent (including rent under a 
                                lease agreement).
                                    ``(VI) Utilities.
                                    ``(VII) Interest on any other debt 
                                obligations that were incurred before 
                                the covered period.
                                    ``(VIII) Covered operations 
                                expenditures, as defined in section 
                                4(a) of the Healing and Economic 
                                Advancement for Local businesses in 
                                Maui Act.
                                    ``(IX) Covered property damage 
                                costs, as defined in such section.
                                    ``(X) Covered supplier costs, as 
                                defined in such section.
                                    ``(XI) Covered worker protection 
                                expenditures, as defined in such 
                                section.
                            ``(ii) Delegated authority.--
                                    ``(I) In general.--For purposes of 
                                making covered loans for the purposes 
                                described in clause (i), a lender 
                                approved to make loans under this 
                                subsection shall be deemed to have been 
                                delegated authority by the 
                                Administrator to make and approve 
                                covered loans, subject to the 
                                provisions of this paragraph.
                                    ``(II) Considerations.--In 
                                evaluating the eligibility of a 
                                borrower for a covered loan with the 
                                terms described in this paragraph, a 
                                lender shall consider whether the 
                                borrower--
                                            ``(aa) was in operation on 
                                        August 8, 2023; and
                                            ``(bb)(AA) had employees 
                                        for whom the borrower paid 
                                        salaries and payroll taxes; or
                                            ``(BB) paid independent 
                                        contractors, as reported on a 
                                        Form 1099-MISC.
                            ``(iii) Additional lenders.--The authority 
                        to make loans under this paragraph shall be 
                        extended to additional lenders determined by 
                        the Administrator and the Secretary of the 
                        Treasury to have the necessary qualifications 
                        to process, close, disburse and service loans 
                        made with the guarantee of the Administration.
                            ``(iv) Refinance.--A loan made under 
                        subsection (b)(2) during the period beginning 
                        on August 8, 2023, and ending on the date on 
                        which covered loans are made available may be 
                        refinanced as part of a covered loan.
                            ``(v) Nonrecourse.--Notwithstanding the 
                        waiver of the personal guarantee requirement or 
                        collateral under subparagraph (J), the 
                        Administrator shall have no recourse against 
                        any individual shareholder, member, or partner 
                        of an eligible recipient of a covered loan for 
                        nonpayment of any covered loan, except to the 
                        extent that such shareholder, member, or 
                        partner uses the covered loan proceeds for a 
                        purpose not authorized under clause (i) or 
                        (iv).
                    ``(G) Certification.--An eligible recipient 
                applying for a covered loan shall make a good faith 
                certification--
                            ``(i) that the uncertainty of current 
                        economic conditions makes necessary the loan 
                        request to support the ongoing operations of 
                        the eligible recipient;
                            ``(ii) acknowledging that funds will be 
                        used to retain workers and maintain payroll or 
                        make mortgage payments, lease payments, and 
                        utility payments;
                            ``(iii) that the eligible recipient does 
                        not have an application pending for a loan 
                        under this subsection for the same purpose and 
                        duplicative of amounts applied for or received 
                        under a covered loan; and
                            ``(iv) during the covered period, that the 
                        eligible recipient has not received amounts 
                        under this subsection for the same purpose and 
                        duplicative of amounts applied for or received 
                        under a covered loan.
                    ``(H) Fee waiver.--With respect to a covered loan--
                            ``(i) in lieu of the fee otherwise 
                        applicable under paragraph (23)(A), the 
                        Administrator shall collect no fee; and
                            ``(ii) in lieu of the fee otherwise 
                        applicable under paragraph (18)(A), the 
                        Administrator shall collect no fee.
                    ``(I) Credit elsewhere.--During the covered period, 
                the requirement that a small business concern is unable 
                to obtain credit elsewhere, as defined in section 3(h), 
                shall not apply to a covered loan.
                    ``(J) Waiver of personal guarantee requirement.--
                With respect to a covered loan--
                            ``(i) no personal guarantee shall be 
                        required for the covered loan; and
                            ``(ii) no collateral shall be required for 
                        the covered loan.
                    ``(K) Maturity for loans with remaining balance 
                after application of forgiveness.--With respect to a 
                covered loan that has a remaining balance after 
                reduction based on the loan forgiveness amount under 
                section 4 of the Healing and Economic Advancement for 
                Local businesses in Maui Act--
                            ``(i) the remaining balance shall continue 
                        to be guaranteed by the Administration under 
                        this subsection; and
                            ``(ii) the covered loan shall have a 
                        maximum maturity of 10 years from the date on 
                        which the borrower applies for loan forgiveness 
                        under that section.
                    ``(L) Interest rate requirements.--A covered loan 
                shall bear an interest rate not to exceed 4 percent, 
                calculated on a non-compounding, non-adjustable basis.
                    ``(M) Loan deferment.--
                            ``(i) Definition of impacted borrower.--
                                    ``(I) In general.--In this 
                                subparagraph, the term `impacted 
                                borrower' means an eligible recipient 
                                that--
                                            ``(aa) was in operation on 
                                        August 8, 2023; and
                                            ``(bb) has an application 
                                        for a covered loan that is 
                                        approved or pending approval on 
                                        or after the date of the 
                                        enactment of this paragraph.
                                    ``(II) Presumption.--For purposes 
                                of this subparagraph, an impacted 
                                borrower is presumed to have been 
                                adversely impacted by the Hawai'i 
                                Wildfires.
                            ``(ii) Deferral.--During the covered 
                        period, the Administrator shall--
                                    ``(I) consider each eligible 
                                recipient that applies for a covered 
                                loan to be an impacted borrower; and
                                    ``(II) require lenders under this 
                                subsection to provide complete payment 
                                deferment relief for impacted borrowers 
                                with covered loans for a period of not 
                                less than 6 months, including payment 
                                of principal, interest, and fees, and 
                                not more than 1 year.
                            ``(iii) Secondary market.--During the 
                        covered period, with respect to a covered loan 
                        that is sold on the secondary market, if an 
                        investor declines to approve a deferral 
                        requested by a lender under clause (ii), the 
                        Administrator shall exercise the authority to 
                        purchase the loan so that the impacted borrower 
                        may receive a deferral for a period of not less 
                        than 6 months, including payment of principal, 
                        interest, and fees, and not more than 1 year.
                            ``(iv) Guidance.--Not later than 30 days 
                        after the date of enactment of this paragraph, 
                        the Administrator shall provide guidance to 
                        lenders under this paragraph on the deferment 
                        process described in this subparagraph.
                    ``(N) Secondary market sales.--A covered loan shall 
                be eligible to be sold in the secondary market 
                consistent with this subsection. The Administrator may 
                not collect any fee for any guarantee sold into the 
                secondary market under this subparagraph.
                    ``(O) Regulatory capital requirements.--
                            ``(i) Risk weight.--With respect to the 
                        appropriate Federal banking agencies or the 
                        National Credit Union Administration Board 
                        applying capital requirements under their 
                        respective risk-based capital requirements, a 
                        covered loan shall receive a risk weight of 
                        zero percent.
                            ``(ii) Temporary relief from tdr 
                        disclosures.--Notwithstanding any other 
                        provision of law, an insured depository 
                        institution or an insured credit union that 
                        modifies a covered loan in relation to Hawai`i 
                        Wildfire-related difficulties in a troubled 
                        debt restructuring on or after August 8, 2023, 
                        shall not be required to comply with the 
                        Financial Accounting Standards Board Accounting 
                        Standards Codification Subtopic 310-40 
                        (`Receivables - Troubled Debt Restructurings by 
                        Creditors') for purposes of compliance with the 
                        requirements of the Federal Deposit Insurance 
                        Act (12 U.S.C. 1811 et seq.), until such time 
                        and under such circumstances as the appropriate 
                        Federal banking agency or the National Credit 
                        Union Administration Board, as applicable, 
                        determines appropriate.
                    ``(P) Reimbursement for processing.--
                            ``(i) In general.--The Administrator shall 
                        reimburse a lender authorized to make a covered 
                        loan at a rate, based on the balance of the 
                        financing outstanding at the time of 
                        disbursement of the covered loan, of--
                                    ``(I) the lesser of 50 percent of 
                                such balance or $2,500 for a covered 
                                loan of not more than $50,000;
                                    ``(II) 5 percent for a covered loan 
                                of more than $50,000 and not more than 
                                $350,000;
                                    ``(III) 3 percent for a covered 
                                loan of more than $350,000 and less 
                                than $2,000,000; and
                                    ``(IV) 1 percent for a covered loan 
                                of not less than $2,000,000.
                            ``(ii) Fee limits.--An agent that assists 
                        an eligible recipient to prepare an application 
                        for a covered loan may not collect a fee in 
                        excess of the limits established by the 
                        Administrator. If an eligible recipient has 
                        knowingly retained an agent, such fees shall be 
                        paid by the eligible recipient and may not be 
                        paid out of the proceeds of a covered loan. A 
                        lender shall only be responsible for paying 
                        fees to an agent for services for which the 
                        lender directly contracts with the agent.
                            ``(iii) Timing.--A reimbursement described 
                        in clause (i) shall be made not later than 5 
                        days after the disbursement of the covered 
                        loan.
                    ``(Q) Duplication.--Nothing in this paragraph shall 
                prohibit a recipient of an economic injury disaster 
                loan made under subsection (b)(2) during the period 
                beginning on August 8, 2023, and ending on the date on 
                which covered loans are made available that is for a 
                purpose other than paying payroll costs or any other 
                purpose described in subparagraph (F) from receiving 
                assistance under this paragraph.
                    ``(R) Waiver of prepayment penalty.--
                Notwithstanding any other provision of law, there shall 
                be no prepayment penalty for any payment made on a 
                covered loan.''.
    (b) Set-Asides for Insured Depository Institutions, Credit Unions, 
and Community Financial Institutions.--
            (1) Insured depository institutions and credit unions.--In 
        making loan guarantees under paragraph (38) of section 7(a) of 
        the Small Business Act (15 U.S.C. 636(a)), the Administrator of 
        the Small Business Administration shall guarantee not less than 
        $30,000,000,000 in loans made by--
                    (A) insured depository institutions with 
                consolidated assets of not less than $10,000,000,000 
                and less than $50,000,000,000; and
                    (B) credit unions with consolidated assets of not 
                less than $10,000,000,000 and less than 
                $50,000,000,000.
            (2) Community financial institutions, small insured 
        depository institutions, and credit unions.--In making loan 
        guarantees under paragraph (38) of section 7(a) of the Small 
        Business Act (15 U.S.C. 636(a)), the Administrator of the Small 
        Business Administration shall guarantee not less than 
        $30,000,000,000 in loans made by--
                    (A) community financial institutions;
                    (B) insured depository institutions with 
                consolidated assets of less than $10,000,000,000; and
                    (C) credit unions with consolidated assets of less 
                than $10,000,000,000.
            (3) Definitions.--In this subsection, the terms ``community 
        financial institution'', ``credit union'', and ``insured 
        depository institution'' have the meanings given such terms in 
        section 7(a)(36)(A) of the Small Business Act (15 U.S.C. 
        636(a)(36)(A)).
    (c) Commitments for 7(a) Loans.--During the period beginning on 
August 8, 2023, and ending on May 10, 2024--
            (1) the amount authorized for commitments for loans 
        authorized under paragraph (38) of section 7(a) of the Small 
        Business Act (15 U.S.C. 636(a)), as added by subsection (a) of 
        this section, shall be $400,000,000,000; and
            (2) the amount authorized for commitments for general 
        business loans under the heading ``Business Loans Program 
        Account'' in title V of the Financial Services and General 
        Government Appropriations Act, 2023 (division E of Public Law 
        117-328) shall not apply with respect to the loans described in 
        paragraph (1).
    (d) Express Loans.--Section 7(a)(31)(D) of the Small Business Act 
(15 U.S.C. 636(a)(31)(D)) is amended by striking ``$500,000'' and 
inserting ``$1,000,000''.

SEC. 4. LOAN FORGIVENESS.

    (a) Definitions.--In this section:
            (1) Administration.--The term ``Administration'' means the 
        Small Business Administration.
            (2) Administrator.--The term ``Administrator'' means the 
        Administrator of the Small Business Administration.
            (3) Covered loan.--The term ``covered loan'' means--
                    (A) a loan of more than $500 made under paragraph 
                (1) or (2) of section 7(b) of the Small Business Act 
                (15 U.S.C. 636(b)) during the period beginning on 
                August 8, 2023, and ending on May 10, 2024 in response 
                to the Hawai'i Wildfires; or
                    (B) a loan guaranteed under paragraph (38) of 
                section 7(a) of such Act (15 U.S.C. 636(a)), as added 
                by section 3(a).
            (4) Covered mortgage obligation.--The term ``covered 
        mortgage obligation'' means any indebtedness or debt instrument 
        incurred in the ordinary course of business that--
                    (A) is a liability of the borrower;
                    (B) is a mortgage on real or personal property; and
                    (C) was incurred before August 8, 2023.
            (5) Covered operations expenditure.--The term ``covered 
        operations expenditure'' has the meaning given such term in 
        section 7A(a) of the Small Business Act (15 U.S.C. 636m(a)).
            (6) Covered period.--The term ``covered period'' means the 
        period--
                    (A) beginning on the date of the origination of a 
                covered loan; and
                    (B) ending on a date selected by the eligible 
                recipient of the covered loan that occurs during the 
                period--
                            (i) beginning on the date that is 8 weeks 
                        after such date of origination; and
                            (ii) ending on the date that is 24 weeks 
                        after such date of origination.
            (7) Covered property damage cost.--The term ``covered 
        property damage cost'' means a cost related to property damage 
        and vandalism or looting due to public disturbances that 
        occurred during the period beginning on August 8, 2023, and 
        ending on May 10, 2024 that was not covered by insurance or 
        other compensation.
            (8) Covered rent obligation.--The term ``covered rent 
        obligation'' means rent obligated under a leasing agreement in 
        force before August 8, 2023.
            (9) Covered supplier cost.--The term ``covered supplier 
        cost'' means an expenditure made by an entity to a supplier of 
        goods for the supply of goods that--
                    (A) are essential to the operations of the entity 
                at the time at which the expenditure is made; and
                    (B) is made pursuant to a contract, order, or 
                purchase order--
                            (i) in effect at any time before the 
                        covered period with respect to the applicable 
                        covered loan; or
                            (ii) with respect to perishable goods, in 
                        effect before or at any time during the covered 
                        period with respect to the applicable covered 
                        loan.
            (10) Covered utility payment.--The term ``covered utility 
        payment'' means payment for a service for the distribution of 
        electricity, gas, water, transportation, telephone, or internet 
        access for which service began before August 8, 2023.
            (11) Eligible recipient.--The term ``eligible recipient'' 
        means the recipient of a covered loan.
            (12) Expected forgiveness amount.--The term ``expected 
        forgiveness amount'' means--
                    (A) with respect to a covered loan described in 
                paragraph (3)(A), the amount of principal of such loan 
                that a lender reasonably expects a borrower to expend 
                during the covered period on costs payable using such 
                covered loan under section 7(b) of the Small Business 
                Act (15 U.S.C. 636(b)); and
                    (B) with respect to a covered loan described in 
                paragraph (3)(B), the amount of principal of such 
                covered loan that a lender reasonably expects a 
                borrower to expend during the covered period on the sum 
                of any--
                            (i) payroll costs;
                            (ii) payments of interest on any covered 
                        mortgage obligation (which shall not include 
                        any prepayment of or payment of principal on a 
                        covered mortgage obligation);
                            (iii) payments on any covered rent 
                        obligation;
                            (iv) covered utility payments;
                            (v) covered operations expenditures;
                            (vi) covered property damage costs; and
                            (vii) covered supplier costs.
            (13) Hawai'i wildfires.--The term ``Hawai'i Wildfires'' has 
        the meanings given such term in section 2(a).
            (14) Payroll costs; seasonal employer.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the terms ``payroll costs'' and ``seasonal 
                employer'' have the meanings given those terms in 
                section 7(a)(36)(A) of the Small Business Act (15 
                U.S.C. 636(a)(36)(A)).
                    (B) Payroll costs exclusions.--The term ``payroll 
                costs'' shall not include qualified wages taken into 
                account in determining the credit allowed under section 
                2301 of the CARES Act (26 U.S.C. 3111 note), qualified 
                wages taken into account in determining the credit 
                allowed under subsection (a) or (d) of section 303 of 
                the Taxpayer Certainty and Disaster Relief Act of 2020 
                (Public Law 116-260; 134 Stat. 3075), or premiums taken 
                into account in determining the credit allowed under 
                section 6432 of the Internal Revenue Code of 1986.
            (15) Private school.--The term ``private school'' means an 
        institution of higher education (as such term is defined in 
        section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 
        1001(a)) that is not a public institution.
    (b) Forgiveness and Waivers.--
            (1) Payroll loans.--A recipient of a covered loan described 
        in subsection (a)(3)(B) shall be eligible for forgiveness of 
        indebtedness on such covered loan in an amount equal to the sum 
        of the following costs incurred and payments made during the 
        covered period:
                    (A) Payroll costs.
                    (B) Any payment of interest on any covered mortgage 
                obligation (which shall not include any prepayment of 
                or payment of principal on a covered mortgage 
                obligation).
                    (C) Any payment on any covered rent obligation.
                    (D) Any covered utility payment.
                    (E) Any covered operations expenditure.
                    (F) Any covered property damage cost.
                    (G) Any covered supplier cost.
            (2) Disaster loans.--
                    (A) In general.--Except as provided by subparagraph 
                (B), a recipient of a covered loan described in 
                subsection (a)(3)(A) shall, at the election of the 
                recipient, be eligible for--
                            (i) forgiveness of indebtedness on such 
                        covered loan in amount equal to the lesser of--
                                    (I) the amount by which such 
                                covered loan exceeds $500; and
                                    (II) $1800; or
                            (ii) a waiver of interest charges on such 
                        covered loan, except that--
                                    (I) the total amount of interest 
                                waived under such waiver may not exceed 
                                $1800; and
                                    (II) such waiver may last not more 
                                than three years.
                    (B) Private schools.--A recipient of a covered loan 
                described in subsection (a)(3)(A) that is a private 
                school shall, at the election of the recipient, be 
                eligible for--
                            (i) forgiveness of indebtedness on such 
                        covered loan as described in subparagraph 
                        (A)(i); or
                            (ii) a waiver of interest and principal 
                        charges on such covered.
    (c) Treatment of Amounts Forgiven and Waived.--
            (1) In general.--Amounts which have been forgiven under 
        this section shall be considered canceled indebtedness by the 
        lender.
            (2) Purchase of guarantees.--For purposes of the purchase 
        of the guarantee for a covered loan by the Administrator, 
        amounts which are forgiven under this section shall be treated 
        in accordance with the procedures that are otherwise applicable 
        to a loan guaranteed under section 7(a) of the Small Business 
        Act (15 U.S.C. 636(a)).
            (3) Remittances.--
                    (A) Forgiven amounts.--Not later than 90 days after 
                the date on which the amount of forgiveness under this 
                section is determined with respect to a covered loan 
                described in subsection (a)(3)(B), and not later the 
                two weeks after the date on which the amount of 
                forgiveness under this section is determined with 
                respect to a covered loan described in subsection 
                (a)(3)(A), the Administrator shall remit to the lender 
                an amount equal to the amount of forgiveness, plus any 
                interest accrued through the date of payment.
                    (B) Interest waived.--During the period interest 
                charges are waived under subparagraphs (A)(ii) or 
                (B)(ii) of subsection (b)(2) on a covered loan in which 
                any individual or entity other than the Administrator 
                is participating, the Administrator shall pay to each 
                individual and entity participating in the covered loan 
                the interest that, but for such subsection, would be 
                owed to such individual or entity at the time such 
                interest would be due.
            (4) Advance purchase of covered loans.--
                    (A) Report.--A lender authorized under subsections 
                (a) or (b) of section 7 of the Small Business Act (15 
                U.S.C. 636), or, at the discretion of the 
                Administrator, a third party participant in the 
                secondary market, may, report to the Administrator an 
                expected forgiveness amount on a covered loan or on a 
                pool of covered loans of up to 100 percent of the 
                principal on the covered loan or pool of covered loans, 
                respectively.
                    (B) Purchase.--The Administrator shall purchase the 
                expected forgiveness amount described in subparagraph 
                (A) as if the amount were the principal amount of a 
                loan guaranteed under section 7(a) of the Small 
                Business Act (15 U.S.C. 636(a)).
                    (C) Timing.--Not later than 15 days after the date 
                on which the Administrator receives a report under 
                subparagraph (A), the Administrator shall purchase the 
                expected forgiveness amount under subparagraph (B) with 
                respect to each covered loan to which the report 
                relates.
    (d) Application.--
            (1) 7(a) loans.--An eligible recipient seeking loan 
        forgiveness with respect to a covered loan described in 
        subsection (a)(3)(B) under this section shall submit to the 
        lender that is servicing the covered loan an application, which 
        shall include--
                    (A) documentation verifying the number of full-time 
                equivalent employees on payroll and pay rates to 
                support such loan forgiveness, including--
                            (i) payroll tax filings reported to the 
                        Internal Revenue Service; and
                            (ii) State income, payroll, and 
                        unemployment insurance filings;
                    (B) documentation, including cancelled checks, 
                payment receipts, transcripts of accounts, purchase 
                orders, orders, invoices, or other documents verifying 
                payments on covered mortgage obligations, payments on 
                covered rent obligations, payments on covered 
                operations expenditures, payments on covered property 
                damage costs, payments on covered supplier costs, 
                payments on covered worker protection expenditures, and 
                covered utility payments;
                    (C) a certification from a representative of the 
                eligible recipient authorized to make such 
                certifications that--
                            (i) the documentation presented is true and 
                        correct; and
                            (ii) the amount for which forgiveness is 
                        requested was used to retain employees, make 
                        interest payments on a covered mortgage 
                        obligation, make payments on a covered rent 
                        obligation, make payments on covered operations 
                        expenditures, make payments on covered property 
                        damage costs, make payments on covered supplier 
                        costs, make payments on covered worker 
                        protection expenditures, or make covered 
                        utility payments; and
                    (D) any other documentation the Administrator 
                determines necessary.
            (2) Disaster loans.--
                    (A) In general.--An eligible recipient seeking loan 
                forgiveness with respect to a covered loan described in 
                subsection (a)(3)(A) under this section shall submit to 
                the appropriate entity an application at such time, in 
                such manner, and containing such information as the 
                Administrator determines appropriate.
                    (B) Appropriate entity defined.--In this paragraph, 
                the term ``appropriate entity'' means--
                            (i) with respect to a covered loan 
                        described in subsection (a)(3)(A) in which the 
                        Administrator is participating on a guaranteed 
                        basis, the lender that is servicing the covered 
                        loan; and
                            (ii) in all other cases, the Administrator.
    (e) Prohibition on Forgiveness Without Documentation.--No eligible 
recipient shall receive forgiveness under this section without 
submitting the documentation required under subsection (d).
    (f) Decision.--Not later than 60 days after the date on which a 
lender or the Administrator receives an application under subsection 
(e) for loan forgiveness under this section from an eligible recipient, 
the lender or the Administrator, as applicable, shall issue a decision 
on the application.
    (g) Hold Harmless.--
            (1) Reliance.--A lender may rely on any certification or 
        documentation submitted by an applicant for a covered loan or 
        an eligible recipient or eligible entity receiving a covered 
        loan that--
                    (A) is submitted pursuant to all applicable 
                statutory requirements, regulations, and guidance 
                related to such covered loan, including under 
                subsections (a)(38), as added by section 3(a) of this 
                Act, and (b) section 7 of the Small Business Act (15 
                U.S.C. 636) and under this section; and
                    (B) attests that the applicant, eligible recipient, 
                or eligible entity, as applicable, has accurately 
                provided the certification or documentation to the 
                lender in accordance with the statutory requirements, 
                regulations, and guidance described in subparagraph 
                (A).
            (2) No enforcement action.--With respect to a lender that 
        relies on a certification or documentation described in 
        paragraph (1) related to covered loan, an enforcement action 
        may not be taken against the lender, and the lender shall not 
        be subject to any penalties relating to loan origination or 
        forgiveness of the covered loan, if--
                    (A) the lender acts in good faith relating to loan 
                origination or forgiveness of the covered loan based on 
                that reliance; and
                    (B) all other relevant Federal, State, local, and 
                other statutory and regulatory requirements applicable 
                to the lender are satisfied with respect to the covered 
                loan.
    (h) Tax Treatment.--For purposes of the Internal Revenue Code of 
1986--
            (1) no amount shall be included in the gross income of the 
        eligible recipient by reason of forgiveness of indebtedness or 
        waivers described in subsection (b),
            (2) no deduction shall be denied, no tax attribute shall be 
        reduced, and no basis increase shall be denied, by reason of 
        the exclusion from gross income provided by paragraph (1), and
            (3) in the case of an eligible recipient that is a 
        partnership or S corporation--
                    (A) any amount excluded from income by reason of 
                paragraph (1) shall be treated as tax exempt income for 
                purposes of sections 705 and 1366 of the Internal 
                Revenue Code of 1986, and
                    (B) except as provided by the Secretary of the 
                Treasury (or the Secretary's delegate), any increase in 
                the adjusted basis of a partner's interest in a 
                partnership under section 705 of the Internal Revenue 
                Code of 1986 with respect to any amount described in 
                subparagraph (A) shall equal the partner's distributive 
                share of deductions resulting from costs giving rise to 
                forgiveness described in subsection (b) or from charges 
                waived as described in such subsection.
    (i) Rule of Construction.--The cancellation of indebtedness on a 
covered loan under this section shall not otherwise modify the terms 
and conditions of the covered loan.
    (j) Regulations.--Not later than 30 days after the date of 
enactment of this Act, the Administrator shall issue guidance and 
regulations implementing this section.

SEC. 5. MAUI WILDFIRE PAYCHECK PROTECTION PROGRAM LOAN FACILITY.

    The Board of Governors of the Federal Reserve System shall, under 
section 13(3) of the Federal Reserve Act (12 U.S.C. 343(3)), establish 
a Maui Wildfire Paycheck Protection Program Liquidity Facility to 
provide loans to entities making loans guaranteed under the Maui 
Wildfire Paycheck Protection Program. In establishing the requirements 
for the Maui Wildfire Paycheck Protection Program, the Board of 
Governors shall make the requirements as close as practicable to the 
requirements applicable to the Paycheck Protection Program Liquidity 
Facility.
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