I 

116TH CONGRESS 

2D SESSION H. R. 8946 

To provide emergency relief assistance under a modified Community Development Block Grant program for communities facing economic damage 

from civil and social crises, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 10, 2020 

Ms. OMAR introduced the following bill; which was referred to the Committee 

on Financial Services 

A BILL 

To provide emergency relief assistance under a modified 

Community Development Block Grant program for communities facing economic damage from civil and social 

crises, and for other purposes. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Holistic Economic Aid 

5 for Low-Income Neighborhood Growth Act of 2020’’ or 

6 the ‘‘HEALING Act of 2020’’. 

7 SEC. 2. SENSE OF CONGRESS. 

8 It is the sense of the Congress that— 


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1 (1) funds made available under the Community 

2 Development Block Grant Program (‘‘CDBG’’) 

3 should be used principally for low- and moderate-in4 come neighborhoods and can be used for community 

5 revitalization in areas affected by social and civil un6 rest during 2020; 

7 (2) CDBG funding must target historically 

8 disinvested communities of color that have suffered 

9 from long-standing systemic issues of racial injustice 

10 and economic inequality; 

11 (3) minority-serving institutions should be 

12 prioritized in receiving and administering economic 

13 development grants for their communities; 

14 (4) economic activities carried out using CDBG 

15 funds should be refocused on the implementation of 

16 direct anti-poverty programming with evidence of ef17 fectiveness, such as food security initiatives and 

18 basic income pilots, acquisition and rehabilitation of 

19 affordable housing, improvement to public facilities, 

20 including health centers, provision of public services, 

21 restoration of natural areas and other conservation 

22 efforts, and construction of clean energy infrastruc23 ture; 

24 (5) minority-owned businesses should be 

25 prioritized in receiving business development grants 


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1 to renovate their properties and create financial op2 portunities for their communities; and 

3 (6) CDBG business activities should be re4 focused on assisting private, for-profit businesses 

5 that pursue job creation and retention efforts 

6 through the employment of low- and moderate-in7 come persons, adopt environmentally sustainable 

8 practices to offer affordable goods and services to 

9 low- and moderate-income neighborhoods, and pro10 vide economic and technical assistance to other busi11 nesses based in low- and moderate-income areas. 

12 SEC. 3. FUNDING. 

13 (a) AUTHORIZATION OF APPROPRIATIONS.—There is 

14 authorized to be appropriated to the Secretary of Housing 

15 and Urban Development $11,000,000,000 for fiscal year 

16 2021 for providing assistance under this Act. 

17 (b) NON-BUSINESS COMMUNITY DEVELOPMENT

18 FUNDING.—Of any amounts made available pursuant to 

19 subsection (a), 77 percent shall be available for assistance 

20 under section 4 for community revitalization and economic 

21 development activities. 

22 (c) CIVIL UNREST BUSINESS DEVELOPMENT FUND23 ING.—Of any amounts made available pursuant to sub24 section (a), 23 percent shall be available for assistance 


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1 under section 5 for business recovery and renovation ac2 tivities. 

3 (d) ADMINISTRATIVE FUNDING.—Of any amounts 

4 available pursuant to subsection (a), the Secretary of 

5 Housing and Urban Development may use not more than 

6 1 percent for costs of administering the program under 

7 this Act. 

8 (e) TERMINATION OF FUNDS.—Upon the expiration 

9 of the 2-year period beginning upon the date of the enact10 ment of this Act, any programming and rulemaking asso11 ciated with the program shall expire. 

12 SEC. 4. NON-BUSINESS GRANTS FOR COMMUNITY REVITAL13 IZATION AND ECONOMIC DEVELOPMENT. 

14 (a) GRANT AUTHORITY.—The Secretary shall use 

15 amounts made available to carry out this section to make 

16 grants to States, units of general local government, Indian 

17 Tribes, insular areas, and eligible institutions serving or 

18 owned by minorities for use to carry out eligible non-busi19 ness activities under subsection (e) in low- and moderate20 income areas. 

21 (b) RESERVATION OF FUNDING.—Of any amounts 

22 made available to carry out this section, the Secretary 

23 shall reserve for grants under this section— 

24 (1) 76 percent for allocation in accordance with 

25 subsection (c)(1); 


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1 (2) 18 percent for allocation for minority-owned 

2 and minority-serving entities in accordance with sub3 section (c)(2); and 

4 (3) 6 percent for allocation for Indian Tribes 

5 and insular areas in accordance with subsection 

6 (c)(3). 

7 (c) ALLOCATIONS.— 

8 (1) ENTITLEMENT COMMUNITIES AND NON9 ENTITLEMENT AREAS.—Of the amount allocated 

10 under subsection (b)(1)— 

11 (A) 70 percent shall be allocated for enti12 tlement communities in accordance with the 

13 formula under section 106(b) of the Housing 

14 and Community Development Act of 1974 (42 

15 U.S.C. 5306(b)); and 

16 (B) 30 percent shall be allocated to States, 

17 for use in nonentitlement areas, in accordance 

18 with the formula under section 106(d)(1) of the 

19 Housing and Community Development Act of 

20 1974 (42 U.S.C. 5306(d)(1)). 

21 (2) COMPETITIVE AWARDS TO MINORITY22 OWNED ENTITIES.— 

23 (A) IN GENERAL.—The Secretary of Hous24 ing and Urban Development shall allocate the 

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1 rectly and on a competitive basis for grants to 

2 eligible minority-owned entities and minority3 serving entities. 

4 (B) COMPETITION.—Allocation for non5 business grants under this paragraph shall be 

6 made pursuant to a competition for such 

7 grants, as the Secretary shall provide, that— 

8 (i) takes into account the need for 

9 grant assistance for the area in which, and 

10 for the activities for which the grant 

11 amounts will be used; and 

12 (ii) provides grant amount only to ap13 plicants who will carry out activities as14 sisted with such grant amounts only in 

15 low- and moderate-income areas. 

16 (C) CDBG SPECIAL PURPOSE GRANTS.— 

17 Of the amount allocated under subsection 

18 (b)(2), not less than 33 percent shall be allo19 cated for grants under this section for minority20 serving entities. 

21 (D) VOUCHER PROGRAM.—The Secretary 

22 shall take such actions as may be necessary to 

23 ensure that grants under this paragraph are ac24 cessible to newer and smaller minority-owned 

25 entities and ensure that technical assistance is 


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1 prioritized and provided to organizations with 

2 little or no grant-writing capacity. 

3 (3) COMPETITIVE AWARDS TO INDIAN TRIBES

4 AND INSULAR AREAS.— 

5 (A) IN GENERAL.—The Secretary of Hous6 ing and Urban Development shall allocate for 

7 grants to Indian Tribes and insular areas on a 

8 competitive basis the amount allocated under 

9 subsection (b)(4). 

10 (B) REQUIREMENTS.—In making alloca11 tions under this paragraph, the Secretary shall, 

12 to the greatest extent practicable, ensure that 

13 each Indian Tribe and each insular area that 

14 satisfies low- to moderate-income requirements 

15 and unmet need criteria, as determined by the 

16 Secretary, receives such an allocation. 

17 (d) COORDINATION.—The Secretary shall monitor 

18 the reporting requirements and disclosures of allocated ex19 penditures as set forth in section 6(e), to coordinate with 

20 grantees and subgrantees to ensure there are no overpay21 ments or duplication of benefits. 

22 (e) ELIGIBLE NON-BUSINESS ACTIVITIES.— 

23 (1) PRIMARY OBJECTIVES.—Amounts from a 

24 grant under this section may be used by a grantee 


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1 or subgrantee only for activities specified under 

2 paragraph (2) that— 

3 (A) principally benefit households having 

4 incomes that do not exceed 50 percent of the 

5 median income of the area in which such house6 holds reside; 

7 (B) aid in the prevention or elimination of 

8 slums or blight primarily for severely economi9 cally distressed communities (as such term is 

10 defined in section 610 of the National and 

11 Community Service Act of 199 (42 U.S.C. 

12 12645d)), and historically disinvested commu13 nities, including high-poverty areas (as such 

14 term is defined in section 681.260 of title 20, 

15 Code of Federal Regulations) and persistent 

16 poverty counties (as such term is defined in the 

17 Department of Agriculture notice entitled ‘‘Im18 plementation of Certain Provisions of Consoli19 dated Appropriations Act, 2020 Specific to Per20 sistent Poverty Counties’’ [Docket No. RBS– 

21 20–BUSINESS–0033], published in the Fed22 eral Register on August 21, 2020 (85 Fed. Reg. 

23 51676)); or 

24 (C) reduce the isolation and inequality of 

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1 graphical areas and the promotion of an in2 crease in the diversity and vitality of neighbor3 hoods through the spatial deconcentration of 

4 housing opportunities for persons of lower in5 come and the revitalization of deteriorating or 

6 deteriorated neighborhoods; 

7 (D) conserve and expand the housing stock 

8 in order to provide a decent home and a suit9 able living environment for all persons, but 

10 principally those of low and moderate income, 

11 and expand the number of community land 

12 trust, cooperative, municipal, and public hous13 ing units as a ratio of total housing stock; 

14 (E) expand and enhance the quantity and 

15 quality of community services, principally for 

16 persons of low and moderate income, that are 

17 evidenced-based and essential for sound commu18 nity development and for the development of 

19 viable urban communities; 

20 (F) improve the rational utilization of land 

21 and other natural resources and the better ar22 rangement of residential, commercial, indus23 trial, recreational, and other needed activity 

24 centers, including parks, green spaces, and 

25 walking trails; 


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1 (G) conserve scarce energy resources, im2 prove energy efficiency, or provide alternative 

3 and renewable energy sources, especially for en4 vironmental justice communities that have 

5 harmful environmental quality issues; 

6 (H) restore and preserve properties of spe7 cial value for historic, architectural, or esthetic 

8 reasons; 

9 (I) alleviate the physical and economic dis10 tress through the stimulation of private invest11 ment and community revitalization in areas 

12 with population outmigration or a stagnating or 

13 declining tax base; 

14 (J) meet an urgent need by addressing 

15 economic conditions that pose a serious and im16 mediate threat to the health and safety of resi17 dents; or 

18 (K) prevent, prepare for, or respond to 

19 coronavirus, based on public health needs, risk 

20 of transmission of coronavirus, number of 

21 coronavirus cases compared to the national av22 erage, and economic and housing market dis23 ruptions, and other factors. 

24 (2) ACTIVITIES.—Activities specified under this 

25 subsection are as follows: 


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1 (A) CDBG ACTIVITIES.—Except as pro2 vided in paragraph (3)(C) of this subsection, 

3 any activity that is eligible for assistance under 

4 section 105(a) of the Housing and Community 

5 Development Act of 1974 (42 U.S.C. 5305(a)). 

6 (B) CDBG SPECIAL PURPOSE GRANTS AC7 TIVITIES.—Any activity that is eligible for as8 sistance under section 107 of such Act (42 

9 U.S.C. 5307). 

10 (C) CASH RELIEF FOR AFFECTED HOUSE11 HOLDS.—Direct income payments by States or 

12 units of general local government to households 

13 having incomes that do not exceed 200 percent 

14 of the Federal poverty level, provided that such 

15 payments otherwise comply with subsection (a) 

16 of this section. 

17 (D) HISTORICAL ARCHIVING.—Activities to 

18 conserve art, construct monuments, and pre19 serve memorials of contemporary civil rights 

20 struggles, such as the George Floyd Memorial 

21 in Minneapolis, Minnesota. 

22 (E) TECHNICAL ASSISTANCE.—Technical 

23 assistance and outreach activities by grantees to 

24 expand and diversify subgrantees funded with 

25 amounts provided under this section. 


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1 (F) INNOVATIVE ACTIVITIES BY MINORITY2 OWNED ACTIVITIES.—Any activity that— 

3 (i) is proposed by a grantee and ap4 proved by the Secretary; and 

5 (ii) complies with subsection (a) of 

6 this section. 

7 (3) PROHIBITIONS.—Amounts from a grant 

8 under this section may not be used to provide assist9 ance for— 

10 (A) any law enforcement agency or to sup11 port or assist any law enforcement activities; 

12 (B) any discriminatory conduct or pro13 gramming, as prohibited by section 109(a) of 

14 the Housing and Community Development Act 

15 of 1974 (42 U.S.C. 5309(a)); 

16 (C) any business support activity described 

17 in section 105(a)(17) of such Act (42 U.S.C. 

18 5305(a)(17)) or any other activity for business 

19 development or business support; or 

20 (D) any ineligible activity described in sec21 tion 570.207 of the Secretary’s regulations (24 

22 C.F.R. 570.207), but not including income pay23 ments authorized by paragraph (2)(C) of this 

24 subsection. 


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1 SEC. 5. CIVIL UNREST BUSINESS RECOVERY GRANTS FOR 

2 FINANCIAL RECOVERY AND BUSINESS DE3 VELOPMENT. 

4 (a) GRANT AUTHORITY.—The Secretary, in consulta5 tion with the Secretary of the Treasury and the Adminis6 trator of the Small Business Administration, shall carry 

7 out a Civil Unrest Business Recovery Program under this 

8 section to make grants to States, units of general local 

9 government, Indian Tribes and insular areas to provide 

10 assistance to eligible for-profit entities through local civil 

11 unrest business recovery funds established for the delivery 

12 of business recovery grants that primarily serve to com13 pensate damages from social and civil unrest during 2020 

14 and also support business-led economic development. 

15 (b) RESERVATION OF FUNDING.—Of any amounts 

16 made available to carry out this section, the Secretary 

17 shall reserve— 

18 (1) 80 percent for allocation in accordance with 

19 subsection (c)(1); 

20 (2) 12 percent for allocation for States in ac21 cordance with subsection (b)(2); and 

22 (3) 8 percent for allocation for Indian Tribes 

23 and insular areas in accordance with subsection 

24 (c)(3). 

25 (c) ALLOCATIONS.— 


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1 (1) FORMULA FOR STATES AND UNITS OF GEN2 ERAL LOCAL GOVERNMENT.—Of amount allocated 

3 under subsection (b)(1)— 

4 (A) 70 percent shall be allocated for enti5 tlement communities in accordance with the 

6 formula under section 106(b) of the Housing 

7 and Community Development Act of 1974 (42 

8 U.S.C. 5306(b)); and 

9 (B) 30 percent shall be allocated for 

10 States, for use in nonentitlement areas, in ac11 cordance with the formula under section 

12 106(d)(1) of the Housing and Community De13 velopment Act of 1974 (42 U.S.C. 5306(d)(1)). 

14 (2) RURAL BONUS FORMULA FOR STATES.— 

15 The Secretary shall allocate the amount allocated 

16 under subsection (b)(2) to States, for use in non17 entitlement areas having low-income or minority 

18 populations, in accordance with the formula under 

19 section 106(d)(1) of the Housing and Community 

20 Development Act of 1974 (42 U.S.C. 5306(d)(1)). 

21 (3) COMPETITIVE AWARDS TO INDIAN TRIBES

22 AND INSULAR AREAS.— 

23 (A) IN GENERAL.—The Secretary of Hous24 ing and Urban Development shall allocate to 

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1 tive basis the amount allocated under sub2 section (b)(3). 

3 (B) REQUIREMENTS.—In making alloca4 tions under subsection (b)(3), the Secretary of 

5 Housing and Urban Development shall, to the 

6 greatest extent practicable, ensure that each In7 dian Tribe and each insular area that satisfies 

8 low- to moderate-income requirements and 

9 unmet need criteria, as determined by the Sec10 retary, receives such an allocation. 

11 (d) STATE ALLOCATIONS FOR NONENTITLEMENT

12 AREAS.— 

13 (1) EQUITABLE ALLOCATION.—To the greatest 

14 extent practicable, a State shall allocate amounts al15 located under subsection (c)(1)(B) for use in non16 entitlement areas of the State on an equitable basis. 

17 (2) DISTRIBUTION OF AMOUNTS.— 

18 (A) DISCRETION.—Not later than 14 days 

19 after the date on which a State receives 

20 amounts for use in an nonentitlement area pur21 suant to subsection (c)(1)(B), the State shall— 

22 (i) distribute the amounts, or a por23 tion thereof, to units of general local gov24 ernment or entities designated thereby, 

25 that have established or will establish civil 


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1 unrest business recovery funds, for use 

2 under subsection (e)(1); and 

3 (ii) elect to reserve the amounts, or a 

4 portion thereof, for use by the State under 

5 subsection (e) for the benefit of eligible en6 tities located in the nonentitlement area. 

7 (B) SENSE OF CONGRESS.—It is the sense 

8 of Congress that, in distributing the amounts 

9 pursuant to subparagraph (A) for nonentitle10 ment areas in which a civil unrest business re11 covery fund has been established, a State 

12 should, as quickly as practicable, distribute 

13 amounts for use by such fund. 

14 (e) USE OF ALLOCATED AMOUNTS.—A State, unit 

15 of general local government, entity designated by a unit 

16 of general local government, Indian Tribe, or insular area 

17 that receives an allocation under subsection (c), whether 

18 directly or indirectly, may use amounts from the allocation 

19 only— 

20 (1) to provide funding to a civil unrest business 

21 recovery fund established in accordance with sub22 section (f); 

23 (2) to provide funding to support organizations 

24 that provide technical assistance to eligible entities; 


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1 (3) to cover administrative costs incurred by the 

2 State, unit of general local government, Indian 

3 Tribe, or insular area (or entity designated by the 

4 State, unit, tribe, or area), in establishing and ad5 ministering a civil unrest business recovery fund, ex6 cept that not more than 2 percent of the allocation 

7 under subsection (c) for the State, unit, tribe, or 

8 area may be used for the purpose under this para9 graph; or 

10 (4) to carry out technical assistance and out11 reach activities to expand and diversify subgrantees 

12 funded with amounts provided under this section. 

13 (f) CIVIL UNREST BUSINESS RECOVERY FUND.— 

14 For purposes of this section, a civil unrest business recov15 ery fund shall be a fund— 

16 (1) that is established by a State, a unit of gen17 eral local government, an Indian Tribe, an insular 

18 area, or an entity designated by a State, unit of gen19 eral local government, Indian Tribe, or an insular 

20 area; 

21 (2) the proceeds of which are used only to make 

22 business recovery grants under subsection (g) to eli23 gible entities operating within the area served by the 

24 fund in accordance with the needs of eligible entities 

25 and capacity of the program; and 


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1 (3) provides resources and services relating to 

2 such business recovery grants for eligible entities in 

3 the 10 most commonly spoken languages in the area 

4 in which the fund operates. 

5 (g) BUSINESS RECOVERY GRANTS.— 

6 (1) IN GENERAL.—Amounts from business re7 covery grant under this section may be used only— 

8 (A) for business economic development ac9 tivities that are eligible for assistance under 

10 section 105(a)(17) of the Housing and Commu11 nity Development Act of 1974 (42 U.S.C. 

12 5305(a)(17)) or to repair, rehabilitate, or re13 place property, real or personal, of the eligible 

14 entity receiving the grant that was damaged, 

15 destroyed, or stolen during the covered period 

16 as a result of social and civil unrest during 

17 2020; or 

18 (B) only if the need for assistance for ac19 tivities described in subparagraph (A) in the 

20 area served by the civil unrest business recovery 

21 fund has been met, for activities described in 

22 paragraph (4). 

23 The Secretary may issue guidance to ensure that the 

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1 paragraph (A) is met before amounts may be used 

2 as provided in paragraph (4). 

3 (2) LOW-INCOME AREAS AND HUBZONES.—Not4 withstanding any other provision in this Act, the 

5 Secretary, in consultation with the Administrator of 

6 the Small Business Administration, shall treat as 

7 qualifying for purposes of paragraph (1) as areas of 

8 affected social and civil unrest during 2020 and 

9 shall give priority in allocations under subsection (b) 

10 to— 

11 (A) low-income communities; 

12 (B) HUBZones; and 

13 (C) any other area designated by the Small 

14 Business Administration for a disaster loan re15 lating to social and civil unrest during 2020. 

16 (3) GRANT AMOUNT.—The amount of a busi17 ness recovery grant may not exceed the lesser of 

18 $1,000,000 or 100 percent of the amount required 

19 to repair, rehabilitate, or replace property, real or 

20 personal, including related labor cost offsets and re21 lated debt obligations incurred as a result of social 

22 or civil unrest during 2020, of the eligible entity 

23 that— 


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1 (A) was damaged, destroyed, or stolen dur2 ing the covered period as a result of the social 

3 and civil unrest during 2020; and 

4 (B) is not fully compensated for by— 

5 (i) insurance; 

6 (ii) private donation or loan; 

7 (iii) a loan or grant from a State, 

8 general local government, Indian Tribe, or 

9 an insular area; 

10 (iv) a disaster loan from the Small 

11 Business Administration; or 

12 (v) any other means. 

13 (4) SECONDARY BUSINESS DEVELOPMENT

14 USES.—Only to the extent provided in paragraph 

15 (1)(B), a business recovery grant may be used by a 

16 grantee or subgrantee, at the discretion of the grant17 ee or subgrantee, for business development and eco18 nomic support activities allowed under section 

19 105(a)(17) of the Housing and Community Develop20 ment Act of 1974 (42 U.S.C. 5305(a)(17)), if such 

21 assistance is appropriate to carry out an economic 

22 development project (that shall minimize, to the ex23 tent practicable, displacement of existing businesses 

24 and jobs in neighborhoods) that— 


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1 (A) creates or retains jobs for low- and 

2 moderate-income persons; 

3 (B) prevents or eliminates slums and 

4 blight; 

5 (C) meet urgent needs; 

6 (D) creates or retains businesses owned by 

7 community residents; 

8 (E) assists businesses that provide goods 

9 or services needed by, and affordable to, low10 and moderate-income residents; or 

11 (F) provides technical assistance to pro12 mote any of the activities under subparagraphs 

13 (A) through (E). 

14 (5) TREATMENT OF DUPLICATION OF BENE15 FITS.—The Secretary shall require that in any case 

16 in which amounts from a business recovery grant 

17 will be used for real property renovation, the eligible 

18 entity involved shall provide documentation to dem19 onstrate unmet need and damages as a result of so20 cial and civil unrest during 2020 to the satisfaction 

21 of the Secretary, using data available from the Fed22 eral Government or other publicly available sources, 

23 including State property damage claims and esti24 mates, private insurance policy claims and estimates, 


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1 and other cost estimates from local agencies in resi2 dential and commercial areas. 

3 SEC. 6. DEADLINES AND REPORTING. 

4 (a) COMPETITIVE APPLICATION DEADLINE.—Not 

5 later than 60 days after the date of the enactment of this 

6 Act, the Secretary shall establish and make publicly avail7 able an application form for the competitive grant process 

8 under section 4(c)(2). 

9 (b) HUD OBLIGATION DEADLINE.—Not later than 

10 180 days after the date of the enactment of this Act, the 

11 Secretary shall begin disbursing amounts made available 

12 to carry out this Act to States, units of general local gov13 ernments, Indian Tribes, and insular areas in accordance 

14 with the allocation formulas under sections 4(c) and 5(c). 

15 (c) LOCAL BUSINESS FUNDS OBLIGATION DEAD16 LINES.— 

17 (1) STATES.—Of the amounts that a State 

18 elects under section 5(d)(2)(A)(ii) to reserve for use 

19 by the State under this paragraph— 

20 (A) any amounts that the State provides to 

21 a civil unrest business recovery fund under sec22 tion 5(e)(1) shall be obligated by the civil un23 rest business recovery fund for expenditure not 

24 later than 75 days after the date on which the 


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1 State received the amounts from the Secretary; 

2 and 

3 (B) any amounts that the State chooses to 

4 provide to a support organization under section 

5 5(e)(2), or to use to pay for administrative 

6 costs under section 5(e)(3), shall be obligated 

7 by the State for expenditure not later than 75 

8 days after the date on which the State received 

9 the amounts from the Secretary. 

10 (2) ENTITLEMENT COMMUNITIES.—Of the 

11 amounts that an entitlement community receives 

12 from the Secretary under section 5(c)(1)(A)— 

13 (A) any amounts that the entitlement com14 munity provides to a civil unrest business recov15 ery fund under section 5(e)(1) shall be obli16 gated by the civil unrest business recovery fund 

17 for expenditure not later than 75 days after the 

18 date on which the entitlement community re19 ceived the amounts; and 

20 (B) any amounts that the entitlement com21 munity chooses to provide to a support organi22 zation under section 5(e)(2), or to use to pay 

23 for administrative costs under section 5(e)(3), 

24 shall be obligated by the entitlement community 

25 for expenditure not later than 75 days after the 


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1 date on which the entitlement community re2 ceived the amounts. 

3 (3) NONENTITLEMENT COMMUNITIES.—Of the 

4 amounts that a unit of general local government, or 

5 an entity designated thereby, located in a nonentitle6 ment area receives from a State under section 

7 5(d)(2)(A)(i)— 

8 (A) any amounts that the unit of general 

9 local government entity provides to a civil un10 rest business recovery fund under section 

11 5(e)(1) shall be obligated by the civil unrest 

12 business recovery fund for expenditure not later 

13 than 60 days after the date on which the unit 

14 of general local government or entity received 

15 the amounts; and 

16 (B) any amounts that the unit of general 

17 local government or entity community chooses 

18 to provide to a support organization under sec19 tion 5(e)(2), or to use to pay for administrative 

20 costs under section 5(e)(3), shall be obligated 

21 by the unit of general local government or enti22 ty for expenditure not later than 60 days after 

23 the date on which the unit of general local gov24 ernment or entity received the amounts. 


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1 (4) RECOVERY OF UNOBLIGATED FUNDS.—If a 

2 State, entitlement community, other unit of general 

3 local government, entity designated by a unit of gen4 eral local government, or civil unrest business recov5 ery fund fails to obligate amounts by the applicable 

6 deadline under paragraph (1), (2), or (3), the Sec7 retary shall recover the portion of such amounts that 

8 remain unobligated as of such deadline. 

9 (5) COLLABORATION.—It is the sense of the 

10 Congress that— 

11 (A) an entitlement community that re12 ceives amount allocated under section 5(c)(1) 

13 should collaborate with the applicable local enti14 ty responsible for economic development and 

15 small business development in establishing and 

16 administering a civil unrest business recovery 

17 fund; and 

18 (B) States, units of general local govern19 ment (including units of general local govern20 ment located within and outside of nonentitle21 ment areas), Indian Tribes, and insular areas 

22 that receive amounts under section 5(c)(2) and 

23 are located in the same region should collabo24 rate in establishing and administering civil un25 rest business recovery funds. 


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1 (d) INFORMATION GATHERING.—When providing as2 sistance to an eligible entity with amounts received from 

3 an allocation made under section 4 or 5, the entity pro4 viding the assistance shall— 

5 (1) inquire— 

6 (A) in the case of an eligible entity that is 

7 a business entity or a nonprofit organization, 

8 whether the entity is a minority-owned entity or 

9 a women-owned entity; and 

10 (B) in the case of an eligible entity who is 

11 an individual, whether the individual is a minor12 ity or a woman; 

13 (2) collect, in the case of an eligible entity that 

14 is a business entity or a nonprofit organization, de15 mographic information, including race and ethnicity, 

16 gender, disability status, housing status, family com17 position, and income level, regarding the households 

18 being served by economic development activities and 

19 other activities funded with amounts made available 

20 pursuant to this Act; and 

21 (3) maintain a record of the responses to each 

22 inquiry conducted under paragraph (1), which the 

23 entity shall promptly submit to the applicable State, 

24 unit of general local government, Indian Tribe, or 

25 insular area. 


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1 (e) REPORTING.— 

2 (1) IN GENERAL.—Not later than 30 days after 

3 the date on which a State, unit of general local gov4 ernment, Indian Tribe, or insular area initially re5 ceives an allocation made under section 4 or 5, and 

6 not later than 14 days after the date on which that 

7 State, unit of general local government, Indian 

8 Tribe, or insular area completes the full expenditure 

9 of amounts from such allocation, such State, unit of 

10 general local government, Indian Tribe, or insular 

11 area shall submit to the Secretary a report that in12 cludes information setting forth— 

13 (A) the number of recipients of assistance 

14 made available from the allocation, 

15 disaggregated by race and ethnicity, gender, 

16 and income and assets; 

17 (B) the total amount, and type, of assist18 ance made available from the allocation; 

19 (C) to the extent applicable, with respect 

20 to each recipient described in subparagraph 

21 (A), information regarding the industry of the 

22 recipient, the amount of assistance received by 

23 the recipient, the annual sales of the recipient, 

24 and the number of employees of the recipient; 


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1 (D) to the extent available from the infor2 mation collected under subsection (d), demo3 graphic information of the households receiving 

4 direct anti-poverty programming, such as cash 

5 assistance, disaggregated by race and ethnicity, 

6 gender, disability status, housing status, family 

7 composition, and income level as a percentage 

8 of the Federal poverty level; 

9 (E) the zip code of each recipient described 

10 in subparagraph (A); and 

11 (F) any other information that the Sec12 retary, in the sole discretion of the Secretary, 

13 determines to be necessary to carry out this 

14 Act. 

15 (2) PUBLIC AVAILABILITY.—As soon as is prac16 ticable after receiving each report submitted under 

17 paragraph (1), the Secretary shall make the infor18 mation contained in the report, including all of the 

19 information described in subparagraph (A) through 

20 (F) of such paragraph, publicly available. 

21 (f) FINAL REPORT.—Not later than September 30, 

22 2022, the Secretary shall submit to the Congress a report 

23 analyzing and assessing the program carried out under 

24 this Act, which shall identify any advantages and dis25 advantages of the program, include comments and assessVerDate Sep 11 2014 22:33 Dec 27, 2020 Jkt 019200 PO 00000 Frm 00028 Fmt 6652 Sfmt 6201 E:\BILLS\H8946.IH H8946

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1 ments from localities and communities assisted, and in2 clude any recommendations for legislative changes to im3 prove more equitable outcomes under the program, such 

4 as additional technical assistance, planning requirements, 

5 and administrative support. 

6 (g) EVALUATION.—Of amounts available under sec7 tion 3(d), the Secretary may use such amounts as may 

8 be necessary to evaluate the effectiveness of activities 

9 funded through grants under section 4, using a method10 ology that— 

11 (1) includes a random assignment whenever 

12 feasible, or other research methods that allow for the 

13 strongest possible casual inferences when random as14 signment is not feasible; and 

15 (2) generates evidence on impact of specific 

16 projects, or groups with identical (or nearly iden17 tical) service components and protocols. 

18 (h) RULES AND GUIDANCE.—The Secretary, in con19 sultation with the Secretary of the Treasury and the Ad20 ministrator of the Small Business Administration, shall 

21 issue any rules and guidance that are necessary to carry 

22 out this Act, including by establishing appropriate compli23 ance and reporting requirements, in addition to the report24 ing requirements under subsection (e). 


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1 SEC. 7. DEFINITIONS. 

2 In this section: 

3 (1) COVERED PERIOD.—The term ‘‘covered pe4 riod’’ means the period beginning on May 1, 2020, 

5 and ending at the end of December 31, 2020. 

6 (2) ELIGIBLE ENTITY.—The term ‘‘eligible enti7 ty’’ means— 

8 (A) a privately held business entity that— 

9 (i) employs not more than 50 full-time 

10 or full-time equivalent employees; and 

11 (ii)(I) is physically based and located 

12 in, or provides services to, a low-income 

13 community or a HUBZone; or 

14 (II) has incurred damage to real or 

15 personal property of the business entity 

16 during a covered period as a result of so17 cial and civil unrest; and 

18 (iii) has average annual receipts (as 

19 determined in accordance with section 

20 121.104 of title 13, Code of Federal Regu21 lations, or any successor regulation) of not 

22 more than $2,000,000; 

23 (B) an individual who operates under a 

24 sole proprietorship, an individual who operates 

25 as an independent contractor, or any eligible 

26 self-employed individual, if such an individual 


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1 has incurred damage to real or personal prop2 erty of their business concern during a covered 

3 period as a result of social and civil unrest; 

4 (C) a community- or worker-owned cooper5 ative that— 

6 (i) meets the requirements of an eligi7 ble cooperative under section 105 of the 

8 National Consumer Cooperative Bank Act 

9 (12 U.S.C. 3015); 

10 (ii) employs not more than 250 full11 time or full-time equivalent employees; and 

12 (iii) is based in, or provides services 

13 to, a low-income community; 

14 (D) an eligible nonprofit organization 

15 that— 

16 (i) employs not more than 250 full17 time or full-time equivalent employees; 

18 (ii) has $10,000,000 or less in assets; 

19 and 

20 (iii) is based in, or provides services 

21 to, a low-income community; or 

22 (E) any non-profit entity that is a minor23 ity-owned or minority-serving entity. 

24 (3) ELIGIBLE SELF-EMPLOYED INDIVIDUAL.— 

25 The term ‘‘eligible self-employed individual’’ has the 


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1 meaning given such term in section 7002(b) of the 

2 Families First Coronavirus Response Act (Public 

3 Law 116–127). 

4 (4) ENTITLEMENT COMMUNITY.—The term 

5 ‘‘entitlement community’’ means a metropolitan city 

6 or urban county, as such terms are defined in sec7 tion 102 of the Housing and Community Develop8 ment Act of 1974 (42 U.S.C. 5302). 

9 (5) ENVIRONMENTAL JUSTICE COMMUNITY.— 

10 The term ‘‘environmental justice community’’ means 

11 a community with significant representation of com12 munities of color, low-income communities, or Tribal 

13 and indigenous communities, that experiences, or is 

14 at risk of experiencing, higher or more adverse 

15 human health or environmental effects, identified 

16 through the Environmental Justice Screen of the 

17 Environmental Protection Agency or an equivalent 

18 mapping and screening tool. 

19 (6) FEDERAL POVERTY LEVEL.—The term 

20 ‘‘Federal poverty level’’ has the meaning given the 

21 term ‘‘poverty line’’ in section 673 of the Omnibus 

22 Budget Reconciliation Act of 1981 (42 U.S.C. 

23 9902). 

24 (7) FULL-TIME EQUIVALENT EMPLOYEES.— 


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1 (A) IN GENERAL.—The term ‘‘full-time 

2 equivalent employees’’ means a number of em3 ployees equal to the number determined by di4 viding— 

5 (i) the total number of hours of serv6 ice for which wages were paid by the em7 ployer to employees during the taxable 

8 year; by 

9 (ii) 2080. 

10 (B) ROUNDING.—The number determined 

11 under subparagraph (A) shall be rounded to the 

12 next lowest whole number if not otherwise a 

13 whole number. 

14 (C) EXCESS HOURS NOT COUNTED.—If an 

15 employee works in excess of 2,080 hours of 

16 service during any taxable year, such excess 

17 shall not be taken into account under subpara18 graph (A). 

19 (D) HOURS OF SERVICE.—The Secretary 

20 of Housing and Urban Development, in con21 sultation with the Secretary of Labor, shall pre22 scribe such regulations, rules, and guidance as 

23 may be necessary to determine the hours of 

24 service of an employee for purposes of this 

25 paragraph, including rules for the application of 


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1 this paragraph to employees who are not com2 pensated on an hourly basis. 

3 (8) HIGH-POVERTY AREA.—The term ‘‘high4 poverty area’’ means any census tract having a pov5 erty rate of 20 percent or higher, as measured by re6 cent 5-year data series available from the American 

7 Community Survey, as of the date of the enactment 

8 of this Act. 

9 (9) HUBZONE.—The term ‘‘HUBZone’’ has 

10 the meaning given the term ‘‘historically underuti11 lized business zone’’ in section 31 of the Small Busi12 ness Act (15 U.S.C. 657a). 

13 (10) INDIAN TRIBE.—The term ‘‘Indian Tribe’’ 

14 has the meaning given such term in section 102 of 

15 the Housing and Community Development Act of 

16 1974 (42 U.S.C. 5302). 

17 (11) INSULAR AREA.—The term ‘‘insular area’’ 

18 has the meaning given such term in section 5204 of 

19 the Omnibus Insular Areas Act of 1992 (42 U.S.C. 

20 5204). 

21 (12) LOW-INCOME COMMUNITY.—The term 

22 ‘‘low-income community’’ has the meaning given 

23 such term in section 45D(e) of the Internal Revenue 

24 Code of 1986 (26 U.S.C. 45D(e)). 


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1 (13) MINORITY.—The term ‘‘minority’’ has the 

2 meaning given such term in section 1204(c)(3) of 

3 the Financial Institutions Reform, Recovery, and 

4 Enforcement Act of 1989 (12 U.S.C. 1811 note). 

5 (14) MINORITY-OWNED ENTITY.—The term 

6 ‘‘minority-owned entity’’ means an entity— 

7 (A) more than 50 percent of the ownership 

8 or control of which is held by not less than 1 

9 minority; and 

10 (B) more than 50 percent of the net profit 

11 or loss of which accrues to not less than 1 mi12 nority. 

13 (15) MINORITY-SERVING ENTITY.—The term 

14 ‘‘minority-serving entity’’ means an institution of 

15 higher education whose minority student enrollment 

16 is at least 50 percent. Such term includes Asian 

17 American and Native American Pacific Islander18 serving institutions, as such term is defined in sec19 tion 371(c) of the Higher Education Act of 1965 

20 (20 U.S.C. 1067q(c)). 

21 (16) NONENTITLEMENT AREA; STATE; UNIT OF

22 GENERAL LOCAL GOVERNMENT.—The terms ‘‘non23 entitlement area’’, ‘‘State’’, and ‘‘unit of general 

24 local government’’ have the meanings given such 


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1 terms in section 102 of the Housing and Community 

2 Development Act of 1974 (42 U.S.C. 5302). 

3 (17) NONPROFIT ORGANIZATION.—The term 

4 ‘‘nonprofit organization’’ means an organization 

5 that— 

6 (A) is exempt from taxation pursuant to 

7 section 501(c)(3) of the Internal Revenue Code 

8 of 1986 (26 U.S.C. 501(c)(3)): and 

9 (B) is— 

10 (i) a community development organi11 zation or a community development cor12 poration; 

13 (ii) a community development finan14 cial institution; 

15 (iii) a community housing organiza16 tion; 

17 (iv) a church or religious organization; 

18 (v) a public charitable organization; or 

19 (vi) a private foundation. 

20 (18) PERSISTENT POVERTY COUNTY.—The 

21 term ‘‘persistent poverty county’’ means any county 

22 that has had 20 percent or more of its population 

23 living in poverty over the past 30 years, as measured 

24 by the most recent decennial censuses and the most 

25 recent Small Area Income and Poverty Estimates of 


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1 the Bureau of the Census, as of the date of the en2 actment of this Act. 

3 (19) SECRETARY.—The term ‘‘Secretary’’ 

4 means the Secretary of Housing and Urban Develop5 ment. 

6 (20) WOMEN-OWNED ENTITY.—The term 

7 ‘‘women-owned entity’’ means an entity— 

8 (A) more than 50 percent of the ownership 

9 or control of which is held by not less than 1 

10 woman; and 

11 (B) more than 50 percent of the net profit 

12 or loss of which accrues to not less than 1 

13 woman. 

Æ 


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