COVID-19 Recovery Grants for Small Businesses Act

To provide grants to small business concerns, private nonprofit organizations, and small agricultural cooperatives affected by COVID–19, and for other purposes. 1. Short title This Act may be cited as the COVID–19 Recovery Grants for Small Businesses Act 2. Definitions In this Act— (1) the terms Administration Administrator (2) the term eligible small business concern (A) meets the applicable size standard established under section 3 of the Small Business Act ( 15 U.S.C. 632 (B) has not less than 2 employees and not more than 50 employees; (C) due to the effects of COVID–19, suffered— (i) a loss of revenue in 1 month greater than 50 percent as compared to the same month in the previous year; or (ii) in the case of a business concern that has been in operation for not less than 4 months, a loss of revenue in 1 month greater than 50 percent as compared to the average of the 3 previous months; (D) can demonstrate an inability to pay obligations or stay up-to-date on accounts or payroll; and (E) submitted an application for a loan under section 7(b)(2) of the Small Business Act ( 15 U.S.C. 636(b)(2) (3) the term small business concern 15 U.S.C. 632 3. Economic injury grants (a) Grants The Administration shall provide assistance to eligible small business concerns, private nonprofit organizations, and small agricultural cooperatives that have suffered a substantial economic injury, directly or indirectly, as a result of COVID–19. (b) Awarding of grants and updates The Administration shall— (1) award grants under this section as expeditiously as possible; and (2) on a monthly basis until the date on which the authority under this section terminates, update the Committee on Small Business and Entrepreneurship and the Committee on Appropriations of the Senate and the Committee on Small Business and the Committee on Appropriations of the House of Representatives on— (A) the number of grants awarded under this section; and (B) the geographic distribution of the grants by State and county. (c) Amount of grant (1) In general Except as provided in paragraph (2), a grant provided under this section shall be in an amount that is not more than $50,000. (2) Increased grant amount The Administrator may make a grant under this section of not more than $100,000 if the Administrator demonstrates that doing so is necessary to assist eligible small business concerns, private nonprofit organizations, and small agricultural cooperatives that the Administrator determines are vital to their local economies. (3) Single award No eligible small business concern, private nonprofit organization, or small agricultural cooperative may receive or directly benefit from more than 1 award made under this section. (d) Use of funds An eligible small business concern, private nonprofit organization, or small agricultural cooperative that receives a grant under this section may use the grant funds to address the effects of COVID–19 through any of the permissible uses of funds under section 7(b)(2) of the Small Business Act ( 15 U.S.C. 636(b)(2) (e) Application (1) In general An eligible small business concern, private nonprofit organization, or small agricultural cooperative desiring a grant under this section shall submit to the Administration an application at such time, in such manner, and containing such information as the Administration may require. (2) Priority The Administrator shall— (A) establish selection criteria to ensure that eligible small business concerns, private nonprofit organizations, and small agricultural cooperatives that are hardest hit by the effects of COVID–19 receive priority in the event that funding is not sufficient to provide grants to all that submit applications under paragraph (1); (B) identify industry sectors for pri­or­i­ti­za­tion that have suffered uniquely and disproportionately from COVID–19; and (C) give priority to an applicant proposing to use grant funds for— (i) providing paid sick leave to employees unable to work due to the direct effects of COVID–19; (ii) maintaining payroll to retain employees during business disruptions or substantial slowdowns; (iii) making rent and mortgage payments; or (iv) repaying obligations that cannot be met due to revenue losses. (f) Procedures The Administrator shall establish procedures to discourage and prevent waste, fraud, and abuse by applicants and recipients of grants under this section. (g) Penalties for fraud and misapplication of funds Any applicant or recipient of a grant provided under this section shall be subject to all applicable provisions of Federal law, including section 1001 of title 18, United States Code, and the provisions of section 123.9 of title 13, Code of Federal Regulations, or any successor regulation, relating to the misapplication of loan proceeds shall apply to grants provided under this section to the same extent as if those grants were loans provided under section 7(b)(2) of the Small Business Act ( 15 U.S.C. 636(b)(2) (h) Inspector General audit Not later than 180 days after the date on which the Administrator begins to provide assistance under this section, the Inspector General of the Administration shall— (1) conduct an audit of grants made under this section, which shall identify any discrepancies or irregularities in the grants; and (2) submit to the Committee on Small Business and Entrepreneurship and the Committee on Appropriations of the Senate and the Committee on Small Business and the Committee on Appropriations of the House of Representatives a copy of the audit conducted under paragraph (1). (i) Authorization of appropriations There is authorized to be appropriated such sums as may be necessary to carry out this section. (j) Termination The authority to carry out grants under this section shall terminate on September 30, 2021.

Summary: COVID-19 Recovery Grants for Small Businesses Act This bill requires the Small Business Administration to provide economic injury grants to certain small businesses, private nonprofit organizations, and small agricultural cooperatives that have suffered a substantial economic injury as a result of COVID-19 (i.e., coronavirus disease 2019).