Small Business COVID Relief Act of 2022

To provide COVID relief for restaurants, gyms, minor league sports teams, border businesses, live venue service providers, exclave businesses, and providers of transportation services. 1. Short title This Act may be cited as the Small Business COVID Relief Act of 2022 2. Table of contents The table of contents for this Act is as follows: Sec. 1. Short title. Sec. 2. Table of contents. Sec. 3. Definitions. TITLE I—Restaurant Revitalization Fund replenishment and improvements Sec. 101. Appropriation. Sec. 102. Insufficient funding. Sec. 103. Data transparency and customer service. Sec. 104. Oversight and audits. Sec. 105. Requirement of continuing operation. TITLE II—Support for additional businesses suffering pandemic-related revenue loss Subtitle A—Support for gyms and fitness facilities Sec. 211. Definitions. Sec. 212. Support for gyms and fitness centers. Sec. 213. Grants from Fund. Subtitle B—Support for minor league sports Sec. 221. Definitions. Sec. 222. Save Minor League Sports Fund. Sec. 223. Save minor league sports grants. Subtitle C—Support for border businesses affected by border closures Sec. 231. Definitions. Sec. 232. Border closure recovery grant program. Sec. 233. Grants from Fund. Sec. 234. Outreach. Subtitle D—Support for live venue service and support companies Sec. 241. Definitions. Sec. 242. Live Venue Service and Support Business Relief Fund. Sec. 243. Grants from Fund. Subtitle E—Support for exclave community small businesses Sec. 251. Definitions. Sec. 252. Exclave Community Small Business Relief Fund. Sec. 253. Grants from Fund. Subtitle F—Administration and implementation of support programs Sec. 261 Definition. Sec. 262. Data transparency and customer service. Sec. 263. Business identifiers. Sec. 264. Applications. Sec. 265. Prohibition on participation in multiple programs. Sec. 266. Transfer of funds. Sec. 267. Oversight and audits. Sec. 268. Administrative funding. Sec. 269. Gross receipts. Sec. 270. Rules. TITLE III—Other SBA program improvements Sec. 301. Shuttered venue operators. Sec. 302. Treatment of paycheck protection program loan forgiveness of payroll costs under highway and public transportation project cost reimbursement contracts. TITLE IV—Transportation services Sec. 401. Additional assistance for eligible providers of transportation services affected by COVID–19. TITLE V—Offsets Sec. 501. Offsetting rescissions. TITLE VI—Budgetary effects Sec. 601. Emergency designation. 3. Definitions In this Act: (1) Administrator The term Administrator (2) Covered mortgage obligation; covered rent obligation; covered supplier cost; covered utility payment; covered worker protection expenditure The terms covered mortgage obligation covered rent obligation covered supplier cost covered utility payment covered worker protection expenditure 15 U.S.C. 636m(a) (3) Exchange; issuer; security The terms exchange issuer security 15 U.S.C. 78c(a) (4) National securities exchange The term national securities exchange 15 U.S.C. 78f (5) Payroll costs The term payroll costs 15 U.S.C. 636(a)(36)(A) (A) qualified wages (as defined in subsection (c)(3) of section 2301 of the CARES Act ( 26 U.S.C. 3111 (B) premiums taken into account in determining the credit allowed under section 6432 (6) Private equity fund The term private equity fund (7) Publicly-traded company The term publicly-traded company (8) Tribally-owned concern The term Tribally-owned concern I Restaurant Revitalization Fund replenishment and improvements 101. Appropriation Section 5003 of the American Rescue Plan Act of 2021 ( 15 U.S.C. 9009c (1) in subsection (b)(2)— (A) in subparagraph (A)— (i) by striking $28,600,000,000 $68,600,000,000 (ii) by inserting , of which not more than $250,000,000 shall be for administrative expenses to carry out this section and of which $20,000,000 shall be for the Inspector General of the Small Business Administration for audits of grants under this section to investigate fraud and to identify improper payments and ineligible recipients, and for other necessary expenses of the Office of the Inspector General (B) in subparagraph (B)(i)(II), by striking $23,600,000,000 any remaining amounts not used for a purpose authorized under subparagraph (A) or clause (i) of this subparagraph (2) in subsection (c)— (A) in paragraph (1), by striking and paragraph (3) (B) by striking paragraph (3). 102. Insufficient funding Section 5003 of the American Rescue Plan Act of 2021 ( 15 U.S.C. 9009c (d) Insufficient funding (1) In general If the Administrator determines that the amounts made available to carry out this section are insufficient to make grants in the amount provided in subsection (c)(4) to each eligible entity that has submitted an application in accordance with the program guidelines in effect on the day before the date of enactment of this subsection, but has not received an award as of such date, the Administrator shall make grants with the available amounts to each such eligible applicant— (A) such that the amount of the grant that each such eligible entity would have otherwise received under this section is reduced by an equal percentage; (B) by establishing a maximum amount for a grant made under this subsection to ensure that smaller eligible entities still receive grants in the amounts provided under subsection (c)(4); or (C) by providing full awards in the amounts provided under subsection (c)(4) below a certain threshold (as the Administrator may establish) and reducing grants above that threshold by an equal percentage. (2) Reserving funds Nothing in paragraph (1) shall prevent the Administrator from— (A) reserving funding for applicants that may be determined to be eligible for a grant under this section upon reconsideration; or (B) making partial awards to eligible entities on a preliminary basis until the amount of funding required to fund grants to all eligible applicants is established, upon the completion of the reconsideration process. . 103. Data transparency and customer service Section 5003 of the American Rescue Plan Act of 2021 ( 15 U.S.C. 9009c (e) Reports The Administrator shall— (1) on a biweekly basis until the amounts made available to carry out this section are fully expended, publish data that shows, for the period beginning on the date on which the Administrator began making grants under this section and ending on the date on which the information is published— (A) with respect to applications for grants under this section, the number of those applications— (i) that the Administrator has received; (ii) that the Administrator has reviewed or is in the process of reviewing; and (iii) with respect to which the Administrator has made a decision; and (B) the number and dollar amount of grants under this section— (i) that have been awarded; and (ii) that have been disbursed; (2) on a weekly basis until the amounts made available to carry out this section are fully expended, publish, with respect to the period beginning on the date of enactment of this subsection and ending on the date on which the information is published— (A) with respect to each eligible entity to which a grant is made under this section— (i) the name of the eligible entity, including the name or names under which the eligible entity does business if that name is different from the name of the eligible entity; and (ii) the address of— (I) the eligible entity; and (II) the physical location or locations for the eligible entity listed on the application, if different from the address of the eligible entity; (B) the amount of each grant described in subparagraph (A); and (C) the business category listed in subsection (a)(4)(A) to which the eligible entity belongs; and (3) with respect to an applicant that applies for a grant under this section and is denied by the Administrator— (A) make available to the applicant a brief explanation identifying the reason why the Administrator denied the application of the applicant, which shall include, where applicable, a citation to the statutory, regulatory, or guidance provision with which the applicant failed to comply and that was the basis for the denial; and (B) establish a reconsideration process through which the applicant may— (i) submit to the Administrator additional information the applicant determines to be relevant to whether the applicant is eligible for the grant; (ii) challenge the decision of the Administrator; and (iii) receive a second review of the application submitted by the applicant. . 104. Oversight and audits Section 5003 of the American Rescue Plan Act of 2021 ( 15 U.S.C. 9009c (f) Oversight and audits (1) In general The Administrator shall institute an oversight and audit plan with respect to eligible entities receiving grants under this section, which shall include— (A) documentation requirements that are consistent with the eligibility and other requirements under this section, including by requiring an eligible entity that receives a grant under this section to retain records that demonstrate compliance with those requirements; and (B) reviews of the use, by eligible entities, of grants made under this section to ensure compliance with the requirements of this section, which shall include— (i) the review and audit, by the Administrator, of grants made under this section; and (ii) in the case of fraud or other material noncompliance with respect to a grant made under this section— (I) a requirement that the applicable eligible entity repay to the Administrator the amount of the misspent funds; or (II) the pursuit, by the Administrator, of legal action to collect the misspent funds. (2) Submission of plan Not later than 30 days after the date of enactment of this subsection, the Administrator shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives the plan required under paragraph (1), which shall describe— (A) the policies and procedures of the Administrator for conducting oversight and audits of grants made under this section; and (B) the metrics that the Administrator will use to determine which grants made under this section will be audited under that plan. (3) Reports Not later than 60 days after the date of enactment of this subsection, and once every 30 days thereafter until the date that is 180 days after the date on which all amounts made available to carry out this section have been fully expended, and upon request thereafter, the Administrator shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report on the oversight and audit activities of the Administrator under this subsection, which shall include— (A) the total number of grants approved and disbursed under this section; (B) the total amount of each grant received by each eligible entity; (C) the number of active investigations and audits of grants made under this section; (D) the number of completed reviews and audits of grants made under this section, including a description of— (i) any findings of fraud or other material noncompliance with the requirements of this section; (ii) questionable costs identified by the Administrator; and (iii) the total amount recouped from ineligible recipients; and (E) a description of any substantial changes made to the plan required under paragraph (1). (4) Retroactive application This subsection shall apply to grants and decisions made under this section before, on, or after the date of enactment of this subsection. . 105. Requirement of continuing operation For any application for a grant under section 5003 of the American Rescue Plan Act of 2021 ( 15 U.S.C. 9009c II Support for additional businesses suffering pandemic-related revenue loss A Support for gyms and fitness facilities 211. Definitions In this subtitle: (1) Affiliated business (A) In general The term affiliated business (B) Regulations For purposes of eligibility for covered grants— (i) the provisions applicable to affiliations under section 121.301 of title 13, Code of Federal Regulations, or any successor regulation, are waived for any business concern operating as a franchise that is assigned a franchise identifier code by the Administration; and (ii) the exceptions to affiliation noted in section 121.103(b) of title 13, Code of Federal Regulations, or any successor regulation, shall apply to an affiliated business. (2) Covered grant The term covered grant (3) Covered period The term covered period (A) beginning on March 1, 2020; and (B) ending on March 31, 2023, or a date to be determined by the Administrator that is not later than 2 years after the date of enactment of this Act. (4) Eligible entity The term eligible entity (A) means a fitness facility— (i) that employs not more than 500 employees, determined on a full-time equivalency basis; (ii) that— (I) provides instruction in a program of in-person physical exercise; or (II) offers space for individuals to take part in the preservation, maintenance, encouragement, or development of physical fitness; (iii) for which the health or fitness component is not incidental to the overall function and purpose of the facility; and (iv) that derives revenue primarily from membership dues or admission or participation fees; (B) may include— (i) a for-profit entity; (ii) a nonprofit entity; and (iii) a Tribally-owned concern; and (C) does not include— (i) an entity with pandemic-related revenue losses that are not greater than 25 percent; (ii) an entity described in subparagraph (A) that— (I) is a State or local government-operated business; (II) as of March 1, 2020, owns or operates (together with any affiliated business) more than 10 locations, regardless of whether those locations do business under the same or multiple names; (III) has a pending application for or has received a grant under— (aa) section 324 of the Economic Aid to Hard Hit Small Businesses, Nonprofits, and Venues Act ( 15 U.S.C. 9009a (bb) section 5003 of the American Rescue Plan Act of 2021 ( 15 U.S.C. 9009c (IV) offers golf, hunting, sailing, shooting, or riding facilities; (iii) a publicly-traded company; (iv) an entity that was not in operation before March 1, 2020; or (v) an entity that is not in operation on, and does not intend to reopen on or before the date that is 180 days after, the date on which the entity applies for a covered grant. (5) Fund The term Fund (6) Pandemic-related revenue loss (A) In general Subject to subparagraph (B), the term pandemic-related revenue loss (i) except as provided in clauses (ii) and (iii), the gross receipts, as established using such verification documentation as the Administrator may require, of the eligible entity during 2020 subtracted from the gross receipts of the eligible entity in 2019, if such amount is greater than zero, except that the Administrator may make adjustments to this formula as needed for seasonal businesses, businesses affected by natural disasters, and to address other circumstances identified by the Administrator requiring accommodation; (ii) if the eligible entity was not in operation for the entirety of 2019— (I) the difference, if greater than zero, between— (aa) the product obtained by multiplying the average monthly gross receipts of the eligible entity in 2019 by 12; and (bb) the product obtained by multiplying the average monthly gross receipts of the eligible entity in 2020 by 12; or (II) an amount based on a formula determined by the Administrator; and (iii) if the eligible entity opened during the period beginning on January 1, 2020 and ending on February 29, 2020, an amount based on a formula determined by the Administrator. (B) Reduction (i) In general The pandemic-related revenue losses for an eligible entity shall be reduced by— (I) any amounts received from a covered loan made under paragraph (36) or (37) of section 7(a) of the Small Business Act ( 15 U.S.C. 636(a) (II) the amount by which the total of all remunerative payments made to an individual, including any annual salary paid to an employee, in 2020 exceeds $250,000. (ii) Administrator authority The Administrator may determine the types of payments and individuals to which clause (i)(II) applies. 212. Support for gyms and fitness centers (a) Establishment (1) In general There is established within the Restaurant Revitalization Fund established under section 5003 of the American Rescue Plan Act of 2021 ( 15 U.S.C. 9009c (2) Use of funds Subject to section 266, the Administrator may use amounts in the Fund only for the purposes described in this subtitle and not for any purpose described in section 5003 of the American Rescue Plan Act of 2021 ( 15 U.S.C. 9009c (b) Appropriations In addition to amounts otherwise available, there is appropriated to the Fund for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $2,000,000,000, to remain available until expended. 213. Grants from Fund (a) In general Except as provided in subsection (c)(3) of this section, the Administrator shall make covered grants to eligible entities in the order in which applications are received by the Administrator. (b) Applications (1) Certification An eligible entity applying for a covered grant shall make a good faith certification that— (A) the uncertainty of current economic conditions makes necessary the request for the covered grant to support the ongoing operations of the eligible entity; (B) the eligible entity does not have a pending application for, and has not received, a grant under— (i) section 324 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act ( 15 U.S.C. 9009a (ii) section 5003 of the American Rescue Plan Act of 2021 ( 15 U.S.C. 9009c (C) contains any other information that the Administrator may require. (2) Verification materials Subject to section 211(6)(A)(i), the Administrator shall use tax records, and may, in addition, use other reliable sources such as certified accounting statements, with respect to an applicant for a covered grant to determine— (A) the eligibility of the applicant for that covered grant; and (B) the amount of that covered grant to the applicant. (3) Acceptance of applications Not later than 60 days after the date of enactment of this Act, the Administrator shall begin accepting applications for covered grants. (c) Amount of grant (1) Aggregate maximum amount The aggregate amount of covered grants made to an eligible entity and any affiliated businesses of the eligible entity— (A) shall not exceed $2,000,000; and (B) shall be limited to $1,000,000 per physical location of the eligible entity. (2) Determination of amount of grant (A) In general Except as provided in this subsection, the amount of a covered grant made to an eligible entity shall be equal to the difference between— (i) the pandemic-related revenue loss of the eligible entity; and (ii) (I) the amount equal to the product obtained by multiplying 3 by the average monthly gross receipts of the eligible entity in 2019; or (II) for an eligible entity that did not have gross receipts in 2019, because the eligible entity began operating between January 1, 2020 and February 29, 2020 or due to other factors identified by the Administrator, an alternative amount based on a formula to be determined by the Administrator. (B) Limitation An eligible entity may not receive a covered grant in an amount that is greater than— (i) the amount equal to the product obtained by multiplying 6 by the average monthly gross receipts of the eligible entity in 2019; or (ii) if the eligible entity was not in operation for the entirety of 2019, if the gross receipts of the eligible entity during 2019 were reduced due to other factors identified by the Administrator, or if the eligible entity opened during the period beginning on January 1, 2020 and ending on February 29, 2020, an amount determined under a formula established by the Administrator. (C) Minimum amount The Administrator may establish a minimum amount of a covered grant in an amount that is not more than $10,000. (D) Return to SBA Any amount of a covered grant to an eligible entity based on estimated receipts that is greater than the actual gross receipts of the eligible entity in 2020 shall be returned to the Administrator, who may use those returned funds to make additional covered grants. (3) Insufficient funding (A) In general If the Administrator determines that the amounts made available to carry out this subtitle are insufficient to make covered grants to each eligible entity in the amount provided under paragraphs (1) and (2), the Administrator shall— (i) make covered grants with the available amounts— (I) such that the amount of the covered grant that each such eligible entity would have otherwise received under those paragraphs is reduced by an equal percentage; (II) by establishing a maximum amount for a covered grant made under this clause to ensure that smaller eligible entities still receive covered grants in the amounts provided under those paragraphs; or (III) by providing covered grants in the amounts provided under those paragraphs below a certain threshold (as the Administrator may establish) and reducing covered grants above that threshold by an equal percentage; and (ii) in a manner that complies with clause (i), make covered grants to each eligible entity that submits an application for a covered grant during the 21-day period beginning on the date on which the Administrator begins accepting those applications. (B) Reserving funds Nothing in subparagraph (A) shall prevent the Administrator from— (i) reserving funding for applicants that may be determined to be eligible for a covered grant upon reconsideration; or (ii) making partial awards to eligible entities on a preliminary basis until the amount of funding required to fund covered grants to all eligible entities that submit applications is established, upon the completion of the reconsideration process. (d) Use of funds During the covered period, an eligible entity that receives a covered grant may use amounts received under the covered grant for the following expenses incurred as a direct result of, or during, the COVID–19 pandemic: (1) Payroll costs. (2) Payments to independent contractors, as reported on Form 1099-MISC, except that each payment under this paragraph shall be in an amount that is not more than $100,000. (3) Scheduled payments of interest or principal on any covered mortgage obligation (which may not include any prepayment of principal on a covered mortgage obligation). (4) Payments on any covered rent obligation and common area maintenance charges under a lease agreement. (5) Covered utility payments. (6) Maintenance expenses. (7) Covered worker protection expenditures. (8) Supplies, including protective equipment and cleaning materials. (9) Expenses that were within the scope of the normal business practice of the eligible entity before the covered period. (10) Covered supplier costs. (11) Operational expenses. (12) Paid sick leave. (13) Capital expenditures (or expenses required under any Federal, State, or local law) relating to implementing social distancing measures. (14) Any other expenses that the Administrator determines to be essential to maintaining the eligible entity. (e) Returning funds If an eligible entity that receives a covered grant fails to use all of the amounts received under the covered grant on or before the last day of the covered period or permanently ceases operations on or before the last day of the covered period, the eligible entity shall return to the Treasury any funds that the eligible entity did not use for the allowable expenses under subsection (d). B Support for minor league sports 221. Definitions In this subtitle: (1) Covered grant The term covered grant (2) Fund The term Fund (3) Eligible entity (A) In general The term eligible entity (i) The minor league sports team was operating in the ordinary course of business on February 29, 2020. (ii) The gross receipts of the minor league sports team— (I) in calendar year 2020 or the fiscal year ending in 2021 was not more than 50 percent of the gross receipts of the minor league sports team in calendar year 2019 or the fiscal year ending in 2019, respectively; or (II) in calendar year 2020 or the fiscal year ending in 2021 was not more than 50 percent of the gross receipts of the minor league sports team over the 3-year period from calendar year 2016 through calendar 2018 or the fiscal year ending in 2016 through the fiscal year ending in 2018, respectively, if the gross receipts of the minor league sports team was negatively impacted by a natural disaster or weather disruption in calendar year 2019 or the fiscal year ending in 2019. (iii) The minor league sports team is open on, or intends to reopen on or before the date that is 180 days after, the date on which the minor league sports team submits the certification required under section 223(b)(1), for the primary purpose of conducting sports games. (B) Exclusions The term eligible entity (i) has a pending application for or has received a grant under— (I) section 324 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act ( 15 U.S.C. 9009a (II) section 5003 of the American Rescue Plan Act of 2021 ( 15 U.S.C. 9009c (ii) is owned directly or indirectly by a major league sports league or major league sports team; (iii) has an individual owner with— (I) not less than a 20 percent share in the team; and (II) more than a 10 percent ownership interest in a major league sports league or major league sports team; (iv) is more than 50 percent owned by a private equity fund; or (v) is more than 50 percent owned by a publicly-traded company. (C) Multiple business entities The Administrator shall treat each eligible entity as an independent, non-affiliated entity for the purposes of this subtitle. (4) Minor league sports team The term minor league sports team (A) that may be— (i) a corporation, limited liability company, partnership, or nonprofit organization; (ii) operated as a sole proprietorship; or (iii) a Tribally-owned concern; (B) that, as of the date of enactment of this Act— (i) is located in the United States; (ii) is not owned directly or indirectly by an educational institution; (iii) derives income primarily from the presence of in-person spectators; (iv) is not— (I) a recreational, intramural, club, or other type of amateur sports team; or (II) a training academy open to athletes under 18 years of age; (v) does not require players to pay a fee to participate; and (vi) either has a formal relationship with a major league sports team or major league sports league to develop players to compete in a major league sports league, or competes in a sports league from which a major league sports team or major league sports league scouts for prospective players; and (C) comprised of players paid a salary to play in the games of the team as of— (i) the date of enactment of this Act; or (ii) February 29, 2020. (5) Major league sports league The term major league sports league (6) Major league sports team The term major league sports team (7) Natural disaster or weather disruption The term natural disaster or weather disruption (A) a flooding event, hurricane, earthquake, forest fire, or other disaster that triggers eligibility for Federal aid, including disaster assistance from the Administrator; or (B) a series of weather-related events that, individually or collectively, caused more than 20 percent of games to be permanently canceled. (8) Pandemic-related revenue loss (A) In general The term pandemic-related revenue loss (i) except as provided in clauses (ii), (iii), and (iv), the gross receipts of the eligible entity during calendar year 2020 or the fiscal year ending in 2021 subtracted from the gross receipts of the eligible entity in calendar year 2019 or the fiscal year ending in 2019, respectively; (ii) the gross receipts of the eligible entity during calendar year 2020 or the fiscal year ending in 2021 subtracted from the average annual gross receipts of the eligible entity over the 3-year period from calendar year 2016 through calendar year 2018 or the fiscal year ending in 2016 through the fiscal year ending in 2018, respectively, if the gross receipts of the eligible entity were negatively impacted by a natural disaster or weather disruption in calendar year 2019 or the fiscal year ending in 2019; (iii) if the eligible entity was not in operation for the entirety of 2019— (I) the difference between— (aa) the product obtained by multiplying the average monthly gross receipts of the eligible entity in calendar year 2019 or the fiscal year ending in 2019 by 12; and (bb) the product obtained by multiplying the average monthly gross receipts of the eligible entity in calendar year 2020 or the fiscal year ending in 2021 by 12; or (II) an amount based on a formula determined by the Administrator; or (iv) if the eligible entity opened during the period beginning on January 1, 2020, and ending on February 29, 2020— (I) the expenses described in section 223(f) that were incurred by the eligible entity minus any gross receipts received; or (II) an amount based on a formula determined by the Administrator. (B) Reduction For purposes of this paragraph, the pandemic-related revenue loss for an eligible entity shall be reduced by any amounts received from a covered loan made under paragraph (36) or (37) of section 7(a) of the Small Business Act ( 15 U.S.C. 636(a) 222. Save Minor League Sports Fund (a) Establishment (1) In general There is established within the Restaurant Revitalization Fund established under section 5003 of the American Rescue Plan Act of 2021 ( 15 U.S.C. 9009c (2) Use of funds Subject to section 266, the Administrator may use amounts in the Fund only for the purposes described in this subtitle and not for any purpose described in section 5003 of the American Rescue Plan Act of 2021 ( 15 U.S.C. 9009c (b) Appropriations (1) In general In addition to amounts otherwise available, there is appropriated to the Fund for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $500,000,000, to remain available until expended. (c) Use of funds The Administrator shall use amounts in the Fund to make covered grants. 223. Save minor league sports grants (a) In general Except as provided in subsection (e)(3), the Administrator shall award covered grants to eligible entities in the order in which applications are received by the Administrator. (b) Application An eligible entity applying for a covered grant shall make a good faith certification that— (1) the uncertainty of current economic conditions makes necessary the grant request to support the ongoing operations of the eligible entity; (2) the eligible entity does not have a pending application nor has the eligible entity received a grant under— (A) section 324 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act ( 15 U.S.C. 9009a (B) section 5003 of the American Rescue Plan Act of 2021 ( 15 U.S.C. 9009c (3) contains any other information that the Administrator may require. (c) Verification materials Subject to section 221(8)(A), the Administrator shall use tax records, and may, in addition, use other reliable sources such as certified accounting statements, with respect to an applicant for a covered grant to determine— (1) the eligibility of the applicant for that covered grant; and (2) the amount of that covered grant to the applicant. (d) Limitation on number of grants An eligible entity may receive only 1 covered grant. (e) Maximum amount (1) Aggregate maximum amount The amount of a covered grant made to an eligible entity— (A) shall not exceed $5,000,000; and (B) shall be limited to— (i) 50 percent of the gross receipts of the eligible entity for calendar year 2019 or the fiscal year ending in 2019; (ii) 50 percent of the average annual gross receipts of the eligible entity over the 3-year period from calendar year 2016 through calendar year 2018 or the fiscal year ending in 2016 through the fiscal year ending in 2018, if the gross receipts of the eligible entity were negatively impacted by a natural disaster or weather disruption in calendar year 2019 or the fiscal year ending in 2019; (iii) an amount based on a formula determined by the Administrator if the eligible entity was not in operation for the entirety of 2019; or (iv) an amount based on a formula determined by the Administrator if the eligible entity opened during the period beginning on January 1, 2020 and ending on February 29, 2020. (2) Determination of grant amount (A) In general Except as provided in this subsection, the amount of a covered grant made to an eligible entity shall be equal to the difference between— (i) the pandemic-related revenue loss of the eligible entity; and (ii) (I) the amount equal to the product obtained by multiplying 3 by the average monthly gross receipts of the eligible entity in 2019; (II) for an eligible entity that did not have gross receipts in 2019, because the eligible entity began operating between January 1, 2020 and February 29, 2020, or due to other factors identified by the Administrator, an alternative amount based on a formula to be determined by the Administrator; or (III) for an eligibility that was negatively impacted by a natural disaster or weather disruption in calendar year 2019 or the fiscal year ending in 2019, the amount equal to the product obtained by multiplying 3 by the average monthly gross receipts of the eligible entity over the 3-year period from calendar year 2016 through calendar year 2018 or the fiscal year ending in 2016 through the fiscal year ending in 2018. (B) Return of grants (i) Gross receipts Any amount of a covered grant made to an eligible entity based on estimated gross receipts that is greater than the actual gross receipts of the eligible entity in 2020 shall be returned to the Administrator, who may use those returned funds to make additional covered grants. (ii) Private equity fund, publicly-traded company, or major league sports team The full amount of a covered grant made to an eligible entity shall be returned to the Treasury if, during the 3-year period following receipt of the covered grant, the eligible entity— (I) becomes more than 50 percent owned by a private equity fund; (II) becomes or is acquired by a publicly-traded company; or (III) becomes more than 50 percent owned by a major league sports team. (3) Insufficient funding (A) In general If the Administrator determines that the amounts made available to carry out this subtitle are insufficient to make covered grants to each eligible entity in the amount provided under paragraphs (1) and (2), the Administrator shall— (i) make covered grants with the available amounts— (I) such that the amount of the covered grant that each such eligible entity would have otherwise received under those paragraphs is reduced by an equal percentage; (II) by establishing a maximum amount for a covered grant made under this clause to ensure that smaller eligible entities still receive covered grants in the amounts provided under those paragraphs; or (III) by providing covered grants in the amounts provided under those paragraphs below a certain threshold (as the Administrator may establish) and reducing covered grants above that threshold by an equal percentage; and (ii) in a manner that complies with clause (i), make covered grants to each eligible entity that submits an application for a covered grant during the 21-day period beginning on the date on which the Administrator begins accepting those applications. (B) Reserving funds Nothing in subparagraph (A) shall prevent the Administrator from— (i) reserving funding for applicants that may be determined to be eligible for a covered grant upon reconsideration; or (ii) making partial awards to eligible entities on a preliminary basis until the amount of funding required to fund covered grants to all eligible entities that submit applications is established, upon the completion of the reconsideration process. (f) Use of funds (1) Timing (A) Expenses incurred Amounts received under a covered grant may only be used for expenses incurred, including for reimbursements of expenses already paid by the eligible entity, during the period beginning on March 1, 2020, and ending on the date that is 18 months after the date of enactment of this Act. (B) Expenditure An eligible entity shall return to the Treasury any amounts received under a covered grant that are not expended on or before the date that is 18 months after the date of disbursement of the covered grant. (2) Allowable expenses An eligible entity may use amounts received under a covered grant for— (A) payroll costs, not to exceed a total of $100,000 in annual compensation for any individual employee; (B) payments on any covered rent obligation or other obligation to a public entity from whom the primary venue of the eligible entity is leased or licensed; (C) any covered utility payment; (D) payments of interest or principal due on any covered mortgage obligation; (E) payments of interest or principal due on any indebtedness or debt instrument incurred in the ordinary course of business that is a liability of the eligible entity and was in place or incurred prior to March 1, 2020, including any subsequent renewals, amendments, or extensions of debt instruments in place as of that date; (F) covered worker protection expenditures; (G) payments made to independent contractors, as reported on Form-1099 MISC, not to exceed a total of $100,000 in annual compensation for any individual employee of an independent contractor; and (H) other ordinary and necessary business expenses, including— (i) maintenance expenses; (ii) administrative costs, including fees and licensing costs; (iii) State and local taxes and fees; (iv) operating leases in effect as of March 1, 2020; (v) payments required for insurance on any insurance policy; (vi) settling existing debts with vendors; and (vii) advertising, production, transportation, and other expenditures relating to the primary venue of the eligible entity or events held at such venue, except that a covered grant may not be used primarily for such expenditures. (3) Prohibited expenses An eligible entity may not use amounts received under a covered grant— (A) to purchase real estate or to make physical improvements to property unrelated to compliance with social distancing guidelines; (B) for payments of interest or principal for loans originated after March 1, 2020; (C) to invest or re-lend funds; (D) for contributions or expenditures to, or on behalf of, any political party, party committee, or candidate for elective office; or (E) for any other use as may be reasonably prohibited by the Administrator. C Support for border businesses affected by border closures 231. Definitions In this subtitle: (1) Affiliated business (A) In general The term affiliated business (B) Regulations For purposes of eligibility for covered grants— (i) the provisions applicable to affiliations under section 121.301 of title 13, Code of Federal Regulations, or any successor regulation, are waived for any business concern operating as a franchise that is assigned a franchise identifier code by the Administration; and (ii) the exceptions to affiliation noted in section 121.103(b) of title 13, Code of Federal Regulations, or any successor regulation, shall apply to an affiliated business. (2) Border business The term border business (A) means an entity— (i) that is a small business concern (as defined in section 3 of the Small Business Act ( 15 U.S.C. 632 (ii) the principal office of which is located in the United States; (iii) that has— (I) annual average gross receipts in 2019 in an amount that is not more than $1,000,000; and (II) not less than 1 and not more than 25 employees, determined on a full-time equivalency basis; and (iv) that has a physical location within— (I) an area adjacent to a designated land port of entry, including— (aa) the lands within the external boundaries of a designated land port of entry along the international borders between the United States and Mexico or the United States and Canada; (bb) the census tract in which the lands described in item (aa) are wholly contained; (cc) a census tract the boundaries of which intersect the lands described in item (aa); and (dd) a census tract— (AA) the boundaries of which are contiguous to the census tracts described in item (bb) or (cc); and (BB) which is not more than 50 miles from the international border between the United States and Mexico or the United States and Canada; or (II) a colonia; (B) may include— (i) a for-profit entity; and (ii) a Tribally-owned concern; and (C) does not include— (i) an entity with pandemic-related revenue losses that are not greater than 25 percent; (ii) an entity described in subparagraph (A) that is a State or local government-operated business; (iii) a publicly traded company; (iv) an entity that is owned or operated by a private equity fund; (v) an entity that was not in operation before March 1, 2020; or (vi) an entity that is not in operation on, and does not intend to reopen on or before the date that is 180 days after, the date on which the entity applies for a covered grant. (3) Colonia The term colonia 42 U.S.C. 5306 (4) Covered grant The term covered grant (5) Covered period The term covered period (A) beginning on March 1, 2020; and (B) ending on March 31, 2023, or a date to be determined by the Administrator that is not later than 2 years after the date of enactment of this Act. (6) Fund The term Fund (7) Pandemic-related revenue loss (A) In general Subject to subparagraph (B), the term pandemic-related revenue loss (i) except as provided in clauses (ii) and (iii), the gross receipts, as established using such verification documentation as the Administrator may require, of the border business during 2020 subtracted from the gross receipts of the border business in 2019, if such amount is greater than zero, except that the Administrator may make adjustments to this formula as needed for seasonal businesses, businesses affected by natural disasters, and to address other circumstances identified by the Administrator requiring accommodation; (ii) if the border business was not in operation for the entirety of 2019— (I) the difference between, if greater than zero— (aa) the product obtained by multiplying the average monthly gross receipts of the border business in 2019 by 12; and (bb) the product obtained by multiplying the average monthly gross receipts of the border business in 2020 by 12; or (II) an amount based on a formula determined by the Administrator; and (iii) if the border business opened during the period beginning on January 1, 2020, and ending on February 29, 2020, an amount based on a formula determined by the Administrator. (B) Reduction (i) In general The pandemic-related revenue losses for a border business shall be reduced by— (I) any amounts received from a covered loan made under paragraph (36) or (37) of section 7(a) of the Small Business Act ( 15 U.S.C. 636(a) (II) the amount by which any remunerative payment made to an individual, including any salary paid to an employee, in 2020 exceeds $250,000. (ii) Administrator authority The Administrator may determine the types of payments and individuals to which clause (i)(II) applies. 232. Border closure recovery grant program (a) Establishment (1) In general There is established within the Restaurant Revitalization Fund established under section 5003 of the American Rescue Plan Act of 2021 ( 15 U.S.C. 9009c Border Closure Recovery Grant Fund (2) Use of funds Subject to section 266, the Administrator may use amounts in the Fund only for the purposes described in this subtitle and not for any purpose described in section 5003 of the American Rescue Plan Act of 2021 ( 15 U.S.C. 9009c (b) Appropriations In addition to amounts otherwise available, there is appropriated to the Fund for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $1,415,000,000, to remain available until expended. 233. Grants from Fund (a) In general Except as provided in subsection (c)(3) and in accordance with subsection (c)(2)(E), the Administrator shall make covered grants in the order in which applications are received by the Administrator. (b) Applications (1) Certification A border business applying for a covered grant shall make a good faith certification that— (A) the covered grant is necessary to support the operations of the border business, which were adversely affected by the border travel restrictions imposed by the Federal Government in response to the COVID–19 pandemic; (B) the border business does not have a pending application for, and has not received, a grant under— (i) section 324 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act ( 15 U.S.C. 9009a (ii) section 5003 of the American Rescue Plan Act of 2021 ( 15 U.S.C. 9009c (C) contains any other information that the Administrator may require. (2) Verification materials Subject to section 231(7)(A)(i), the Administrator shall use tax records, and may, in addition, use other reliable sources such as certified accounting statements, with respect to an applicant for a covered grant to determine— (A) the eligibility of the applicant for that covered grant; and (B) the amount of that covered grant to the applicant. (3) Acceptance of applications Not later than 60 days after the date of enactment of this Act, the Administrator shall begin accepting applications for covered grants. (c) Amount of grant (1) Aggregate maximum amount The aggregate amount of covered grants made to a border business and any affiliated businesses of the border business shall not exceed $350,000. (2) Determination of amount of grant (A) In general Except as provided in this subsection, the amount of a covered grant made to a border business shall be equal to the difference between— (i) the pandemic-related revenue loss of the border business; and (ii) (I) the amount equal to the product obtained by multiplying 3 by the average monthly gross receipts of the border business in 2019; or (II) for a border business that did not have gross receipts in 2019, because the border business began operating between January 1, 2020 and February 29, 2020 or due to other factors identified by the Administrator, an alternative amount based on a formula to be determined by the Administrator. (B) Limitation A border business may not receive a covered grant in an amount that is greater than— (i) the amount equal to the product obtained by multiplying 6 by the average monthly gross receipts of the border business in 2019; or (ii) if the border business was not in operation for the entirety of 2019, if the gross receipts of the border business during 2019 were reduced due to other factors identified by the Administrator, or if the border business opened during the period beginning on January 1, 2020 and ending on February 29, 2020, an amount determined under a formula established by the Administrator. (C) Minimum amount The Administrator may establish a minimum amount of a covered grant in an amount that is not more than $10,000. (D) Return to SBA Any amount of a covered grant to a border business based on estimated receipts that is greater than the actual gross receipts of the border business in 2020 shall be returned to the Administrator, who may use those returned funds to make additional covered grants. (E) Minimum allocation The Administrator shall ensure that— (i) not less than one-third of amounts made available to carry out this subtitle is used to make covered grants to border businesses located along the international border between the United States and Mexico, including colonias; and (ii) not less than one-third of amounts made available to carry out this subtitle is used to make covered grants to border businesses located along the international border between the United States and Canada. (3) Insufficient funding (A) In general If the Administrator determines that the amounts made available to carry out this subtitle are insufficient to make covered grants to each border business in the amount provided under paragraphs (1) and (2), the Administrator shall, in a manner that maintains the minimum allocation requirements under paragraph (2)(E)— (i) make covered grants with the available amounts— (I) such that the amount of the covered grant that each border business would have otherwise received under those paragraphs is reduced by an equal percentage; (II) by establishing a maximum amount for a covered grant made under this clause to ensure that smaller border businesses still receive covered grants in the amounts provided under those paragraphs; or (III) by providing covered grants in the amounts provided under those paragraphs below a certain threshold (as the Administrator may establish) and reducing covered grants above that threshold by an equal percentage; and (ii) in a manner that complies with clause (i), make covered grants to each border business that submits an application for a covered grant during the 21-day period beginning on the date on which the Administrator begins accepting those applications. (B) Reserving funds Nothing in subparagraph (A) shall prevent the Administrator from— (i) reserving funding for applicants that may be determined to be eligible for a covered grant upon reconsideration; or (ii) making partial awards to border businesses on a preliminary basis until the amount of funding required to fund covered grants to all border businesses that submit applications is established, upon the completion of the reconsideration process. (d) Use of funds A border business may use amounts received under a covered grant for the following expenses incurred during the covered period as a direct result of, or during, the COVID–19 pandemic, including logistical expenses associated with border closures: (1) Payroll costs. (2) Payments to independent contractors, as reported on Form 1099-MISC, except that each payment under this paragraph shall be in an amount that is not more than $100,000. (3) Scheduled payments of interest or principal on any covered mortgage obligation (which may not include any prepayment of principal on a covered mortgage obligation). (4) Payments on any covered rent obligation and common area maintenance charges under a lease agreement. (5) Covered utility payments. (6) Maintenance expenses. (7) Covered worker protection expenditures. (8) Supplies, including protective equipment and cleaning materials. (9) Expenses that were within the scope of the normal business practice of the border business before the covered period. (10) Covered supplier costs. (11) Operational expenses. (12) Paid sick leave. (13) Costs associated with resuming or scaling up business operations after COVID–19 pandemic-related border travel restrictions have been lifted. (14) Workforce training or retraining expenses. (15) Any other expenses that the Administrator determines to be essential to maintaining the border business. (e) Returning funds If a border business that receives a covered grant fails to use all of the amounts received under the covered grant on or before the last day of the covered period or permanently ceases operations on or before the last day of the covered period, the border business shall return to the Treasury any funds that the border business did not use for the allowable expenses under subsection (d). 234. Outreach (a) In general In carrying out the program under this subtitle, the Administrator shall make grants to, or enter into contracts or cooperative agreements with, not fewer than 6 private nonprofit organizations, resource partners, States, Indian Tribes, or units of local government, including not fewer than 3 adjacent to the international border between the United States and Canada and not fewer than 3 adjacent to the international border between the United States and Mexico, under the authorities of the Community Navigator pilot program established under section 5004 of the American Rescue Plan Act ( 15 U.S.C. 9013 (b) Funding The Administrator shall set aside $10,000,000 from amounts in the Fund to make grants or enter into contracts or cooperative agreements under subsection (a). (c) Resource partners In addition to the activities described in subsection (a), the Administrator shall, in partnership with entities participating in the Community Navigator pilot program established under section 5004 of the American Rescue Plan Act ( 15 U.S.C. 9013 15 U.S.C. 632 15 U.S.C. 656 15 U.S.C. 657b 15 U.S.C. 637(b)(1)(B) (1) help make border businesses aware of the availability of the program under this subtitle and promote engagement with that program; and (2) provide technical assistance to applicants, including instructions on how to participate in the program under this subtitle, assistance in preparing applications for participation in that program, and assistance in complying with any reporting requirements established by the Administrator with respect to that program. (d) Language access The Administrator shall ensure that outreach and technical assistance activities described in this section are made available to border businesses in the 10 most commonly spoken languages, other than English, in the States of the United States that border the international boundary with Mexico or that border the international boundary with Canada, including in Spanish and in French. D Support for live venue service and support companies 241. Definitions In this subtitle: (1) Affiliated business (A) In general The term affiliated business (B) Regulations For purposes of eligibility for covered grants— (i) the provisions applicable to affiliations under section 121.301 of title 13, Code of Federal Regulations, or any successor regulation, are waived for any business concern operating as a franchise that is assigned a franchise identifier code by the Administration; and (ii) the exceptions to affiliation noted in section 121.103(b) of title 13, Code of Federal Regulations, or any successor regulation, shall apply to an affiliated business. (2) Covered grant The term covered grant (3) Covered period The term covered period (A) beginning on March 1, 2020; and (B) ending on March 31, 2023, or a date to be determined by the Administrator that is not later than 2 years after the date of enactment of this Act. (4) Eligible entity The term eligible entity (A) means an individual or entity— (i) that is assigned a North American Industry Classification System code of 532289, 532490, 541410, 541420, 541430, 541490, 561591, 561920, 711190, 711300, or 711320, as appears on the most recent income tax filing or on the application for a loan under paragraph (36) or (37) of section 7(a) of the Small Business Act ( 15 U.S.C. 636(a) (ii) (I) (aa) that, as the principal business of the individual or entity, provides stages, lighting, sound, casts, or other support for live events; and (bb) for which not less than 65 percent of the earned revenue generated through providing the support described in item (aa) is for live events organized, promoted, produced, managed, or hosted by an eligible person or entity described in section 324(a)(1)(A)(iii) of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act ( 15 U.S.C. 9009a(a)(1)(A)(iii) (II) (aa) as the principal business of the individual or entity, showcases performers or pre-packaged productions to potential buyers; and (bb) for which not less than 65 percent of the earned revenue generated through showcasing performers or pre-packaged productions described in item (aa) is for live events— (AA) organized, promoted, produced, managed, or hosted by an eligible person or entity described in section 324(a)(1)(A)(iii) of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act ( 15 U.S.C. 9009a(a)(1)(A)(iii) (BB) hosted in a hotel or convention center facility; (B) includes an individual or entity described in subparagraph (A) that— (i) operates for profit; (ii) is a Tribally-owned concern; or (iii) is a corporation, limited liability company, or partnership or operated as a sole proprietorship; and (C) does not include— (i) an individual or entity described in subparagraph (A) that— (I) employs more than 250 employees, determined on a full-time equivalency basis; (II) is registered outside of the United States; or (III) has pandemic-related revenue losses that are not greater than 25 percent; (ii) an entity described in subparagraph (A) that— (I) is a State or local government-operated business; (II) as of February 29, 2020, owns or operates (together with any affiliated business) more than 5 locations, regardless of whether those locations do business under the same or multiple names; or (III) has a pending application for, or has received, a grant under— (aa) section 324 of the Economic Aid to Hard Hit Small Businesses, Nonprofits, and Venues Act ( 15 U.S.C. 9009a (bb) section 5003 of the American Rescue Plan Act of 2021 ( 15 U.S.C. 9009c (iii) a publicly-traded company; (iv) an entity that is owned or operated by a private equity fund; (v) an entity that was not in operation before March 1, 2020; or (vi) an entity that is not in operation on, and does not intend to reopen on or before the date that is 180 days after, the date on which the entity applies for a covered grant. (5) Fund The term Fund (6) Pandemic-related revenue loss (A) In general Subject to subparagraph (B), the term pandemic-related revenue loss (i) except as provided in clauses (ii) and (iii), the gross receipts, as established using such verification documentation as the Administrator may require, of the eligible entity during 2020 subtracted from the gross receipts of the eligible entity in 2019, if such amount is greater than zero, except that the Administrator may make adjustments to this formula as needed for seasonal businesses, businesses affected by natural disasters, and to address other circumstances identified by the Administrator requiring accommodation; (ii) if the eligible entity was not in operation for the entirety of 2019— (I) the difference, if greater than zero, between— (aa) the product obtained by multiplying the average monthly gross receipts of the eligible entity in 2019 by 12; and (bb) the product obtained by multiplying the average monthly gross receipts of the eligible entity in 2020 by 12; or (II) an amount based on a formula determined by the Administrator; and (iii) if the eligible entity opened during the period beginning on January 1, 2020 and ending on February 29, 2020, an amount based on a formula determined by the Administrator. (B) Reduction (i) In general The pandemic-related revenue losses for an eligible entity shall be reduced by— (I) any amounts received from a covered loan made under paragraph (36) or (37) of section 7(a) of the Small Business Act ( 15 U.S.C. 636(a) (II) the amount by which the total of all remunerative payments made to an individual, including any annual salary paid to an employee, in 2020 exceeds $250,000. (ii) Administrator authority The Administrator may determine the types of payments and individuals to which clause (i)(II) applies. 242. Live Venue Service and Support Business Relief Fund (a) Establishment (1) In general There is established within the Restaurant Revitalization Fund established under section 5003 of the American Rescue Plan Act of 2021 ( 15 U.S.C. 9009c (2) Use of funds Subject to section 266, the Administrator may use amounts in the Fund only for the purposes described in this subtitle and not for any purpose described in section 5003 of the American Rescue Plan Act of 2021 ( 15 U.S.C. 9009c (b) Appropriations In addition to amounts otherwise available, there is appropriated to the Fund for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $2,000,000,000, to remain available until expended. 243. Grants from Fund (a) In general Except as provided in subsection (c)(3), the Administrator shall make covered grants to eligible entities in the order in which applications are received by the Administrator. (b) Applications (1) Certification An eligible entity applying for a covered grant shall make a good faith certification that— (A) the uncertainty of current economic conditions makes necessary the request for the covered grant to support the ongoing operations of the eligible entity; (B) the eligible entity does not have a pending application for, and has not received, a grant under— (i) section 324 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act ( 15 U.S.C. 9009a (ii) section 5003 of the American Rescue Plan Act of 2021 ( 15 U.S.C. 9009c (C) contains any other information that the Administrator may require. (2) Verification materials Subject to section 241(6)(A)(i), the Administrator shall use tax records, and may, in addition, use other reliable sources such as certified accounting statements, with respect to an applicant for a covered grant to determine— (A) the eligibility of the applicant for that covered grant; and (B) the amount of that covered grant to the applicant. (3) Acceptance of applications Not later than 60 days after the date of enactment of this Act, the Administrator shall begin accepting applications for covered grants. (c) Amount of grant (1) Aggregate maximum amount The aggregate amount of covered grants made to an eligible entity and any affiliated businesses of the eligible entity shall not exceed $2,000,000. (2) Determination of amount of grant (A) In general Except as provided in this subsection, the amount of a covered grant made to an eligible entity shall be equal to the difference between— (i) the pandemic-related revenue loss of the eligible entity; and (ii) (I) the amount equal to the product obtained by multiplying 3 by the average monthly gross receipts of the eligible entity in 2019; or (II) for an eligible entity that did not have gross receipts in 2019, because the eligible entity began operating between January 1, 2020 and February 29, 2020 or due to other factors identified by the Administrator, an alternative amount based on a formula to be determined by the Administrator. (B) Limitation An eligible entity may not receive a covered grant in an amount that is greater than— (i) the amount equal to the product obtained by multiplying 6 by the average monthly gross receipts of the eligible entity in 2019; or (ii) if the eligible entity was not in operation for the entirety of 2019, if the gross receipts of the eligible entity during 2019 were reduced due to other factors identified by the Administrator, or if the eligible entity opened during the period beginning on January 1, 2020 and ending on February 29, 2020, an amount determined under a formula established by the Administrator. (C) Minimum amount The Administrator may establish a minimum amount of a covered grant in an amount that is not more than $10,000. (D) Return to SBA Any amount of a covered grant to an eligible entity based on estimated receipts that is greater than the actual gross receipts of the eligible entity in 2020 shall be returned to the Administrator, who may use those returned funds to make additional covered grants. (3) Insufficient funding (A) In general If the Administrator determines that the amounts made available to carry out this subtitle are insufficient to make covered grants to each eligible entity in the amount provided under paragraphs (1) and (2), the Administrator shall— (i) make covered grants with the available amounts— (I) such that the amount of the covered grant that each such eligible entity would have otherwise received under those paragraphs is reduced by an equal percentage; (II) by establishing a maximum amount for a covered grant made under this clause to ensure that smaller eligible entities still receive covered grants in the amounts provided under those paragraphs; or (III) by providing covered grants in the amounts provided under those paragraphs below a certain threshold (as the Administrator may establish) and reducing covered grants above that threshold by an equal percentage; and (ii) in a manner that complies with clause (i), make covered grants to each eligible entity that submits an application for a covered grant during the 21-day period beginning on the date on which the Administrator begins accepting those applications. (B) Reserving funds Nothing in subparagraph (A) shall prevent the Administrator from— (i) reserving funding for applicants that may be determined to be eligible for a covered grant upon reconsideration; or (ii) making partial awards to eligible entities on a preliminary basis until the amount of funding required to fund covered grants to all eligible entities that submit applications is established, upon the completion of the reconsideration process. (d) Use of funds During the covered period, an eligible entity that receives a covered grant may use amounts received under the covered grant for the following expenses incurred as a direct result of, or during, the COVID–19 pandemic: (1) Payroll costs. (2) Payments to independent contractors, as reported on Form 1099-MISC, except that each payment under this paragraph shall be in an amount that is not more than $100,000. (3) Scheduled payments of interest or principal on any covered mortgage obligation (which may not include any prepayment of principal on a covered mortgage obligation). (4) Payments on any covered rent obligation and common area maintenance charges under a lease agreement. (5) Covered utility payments. (6) Maintenance expenses. (7) Covered worker protection expenditures. (8) Supplies, including protective equipment and cleaning materials. (9) Expenses that were within the scope of the normal business practice of the eligible entity before the covered period. (10) Covered supplier costs. (11) Operational expenses. (12) Paid sick leave. (13) Any other expenses that the Administrator determines to be essential to maintaining the eligible entity. (e) Returning funds If an eligible entity that receives a covered grant fails to use all of the amounts received under the covered grant on or before the last day of the covered period or permanently ceases operations on or before the last day of the covered period, the eligible entity shall return to the Treasury any funds that the eligible entity did not use for the allowable expenses under subsection (d). E Support for exclave community small businesses 251. Definitions In this subtitle: (1) Affiliated business (A) In general The term affiliated business (B) Regulations For purposes of eligibility for covered grants— (i) the provisions applicable to affiliations under section 121.301 of title 13, Code of Federal Regulations, or any successor regulation, are waived for any business concern operating as a franchise that is assigned a franchise identifier code by the Administration; and (ii) the exceptions to affiliation noted in section 121.103(b) of title 13, Code of Federal Regulations, or any successor regulation, shall apply to an affiliated business. (2) Covered grant The term covered grant (3) Covered period The term covered period (A) beginning on March 1, 2020; and (B) ending on March 31, 2023, or a date to be determined by the Administrator that is not later than 2 years after the date of enactment of this Act. (4) Exclave The term exclave (A) located in the United States; (B) within 75 miles of the international border between the United States and Canada; and (C) only accessible by land via Canada. (5) Eligible entity The term eligible entity (A) means a small business concern (as defined in section 3 of the Small Business Act ( 15 U.S.C. 632 (i) is located in an exclave; and (ii) certifies, and, if requested by the Administrator, demonstrates, that the closure of the international border between the United States and Canada— (I) directly resulted in a reduction in the gross receipts of the eligible entity; or (II) restricted the ability of customers to access the location of the small business concern; and (B) does not include— (i) an entity with pandemic-related revenue losses that are not greater than 25 percent; (ii) an entity described in subparagraph (A) that— (I) is a State or local government-operated business; (II) as of March 1, 2020, owns or operates (together with any affiliated business) more than 10 locations, regardless of whether those locations do business under the same or multiple names; or (III) has a pending application for or has received a grant under— (aa) section 324 of the Economic Aid to Hard Hit Small Businesses, Nonprofits, and Venues Act ( 15 U.S.C. 9009a (bb) section 5003 of the American Rescue Plan Act of 2021 ( 15 U.S.C. 9009c (iii) a publicly-traded company; (iv) an entity that is owned or operated by a private equity fund; (v) an entity that was not in operation before March 1, 2020; or (vi) an entity that is not in operation on, and does not intend to reopen on or before the date that is 180 days after, the date on which the entity applies for a covered grant. (6) Fund The term Fund (7) Pandemic-related revenue loss (A) In general Subject to subparagraph (B), the term pandemic-related revenue loss (i) except as provided in clauses (ii) and (iii), the gross receipts, as established using such verification documentation as the Administrator may require, of the eligible entity during 2020 subtracted from the gross receipts of the eligible entity in 2019, if such amount is greater than zero, except that the Administrator may make adjustments to this formula as needed for seasonal businesses, businesses affected by natural disasters, and to address other circumstances identified by the Administrator requiring accommodation; (ii) if the eligible entity was not in operation for the entirety of 2019— (I) the difference, if greater than zero, between— (aa) the product obtained by multiplying the average monthly gross receipts of the eligible entity in 2019 by 12; and (bb) the product obtained by multiplying the average monthly gross receipts of the eligible entity in 2020 by 12; or (II) an amount based on a formula determined by the Administrator; and (iii) if the eligible entity opened during the period beginning on January 1, 2020, and ending on February 29, 2020, an amount based on a formula determined by the Administrator. (B) Reduction (i) In general The pandemic-related revenue losses for an eligible entity shall be reduced by— (I) any amounts received from a covered loan made under paragraph (36) or (37) of section 7(a) of the Small Business Act ( 15 U.S.C. 636(a) (II) the amount by which the total of all remunerative payments made to an individual, including any annual salary paid to an employee, in 2020 exceeds $250,000. (ii) Administrator authority The Administrator may determine the types of payments and individuals to which clause (i)(II) applies. 252. Exclave Community Small Business Relief Fund (a) Establishment (1) In general There is established within the Restaurant Revitalization Fund established under section 5003 of the American Rescue Plan Act of 2021 ( 15 U.S.C. 9009c (2) Use of funds Subject to section 266, the Administrator may use amounts in the Fund only for the purposes described in this subtitle and not for any purpose described in section 5003 of the American Rescue Plan Act of 2021 ( 15 U.S.C. 9009c (b) Appropriations In addition to amounts otherwise available, there is appropriated to the Fund for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $85,000,000, to remain available until expended, of which $75,000,000 shall be available for eligible entities located in exclaves adjacent to the border between Alaska and Canada and $10,000,000 shall be available to exclaves adjacent to the border between the continental United States and Canada. 253. Grants from Fund (a) In general Except as provided in subsection (c)(3)(B), the Administrator shall make covered grants to eligible entities in the order in which applications are received by the Administrator. (b) Applications (1) Certification An eligible entity applying for a covered grant shall make a good faith certification that— (A) the uncertainty of current economic conditions makes necessary the request for the covered grant to support the ongoing operations of the eligible entity; (B) closure of the international border between the United States and Canada— (i) directly resulted in a reduction in the gross receipts of the eligible entity; or (ii) restricted the ability of customers to access the location of the covered business; (C) the eligible entity does not have a pending application for, and has not received, a grant under— (i) section 324 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act ( 15 U.S.C. 9009a (ii) section 5003 of the American Rescue Plan Act of 2021 ( 15 U.S.C. 9009c (D) contains any other information that the Administrator may require. (2) Verification materials Subject to section 251(7)(A)(i), the Administrator shall use tax records, and may, in addition, use other reliable sources such as certified accounting statements, with respect to an applicant for a covered grant to determine— (A) the eligibility of the applicant for that covered grant; and (B) the amount of that covered grant to the applicant. (3) Acceptance of applications Not later than 60 days after the date of enactment of this Act, the Administrator shall begin accepting applications for covered grants. (c) Amount of grant (1) Aggregate maximum amount The aggregate amount of covered grants made to an eligible entity and any affiliated businesses of the eligible entity shall not exceed $3,000,000. (2) Determination of amount of grant (A) In general Except as provided in section 252(b) and in this subsection, the amount of a covered grant made to an eligible entity shall be equal to the difference between— (i) the pandemic-related revenue loss of the eligible entity; and (ii) (I) the amount equal to the product obtained by multiplying 3 by the average monthly gross receipts of the eligible entity in 2019; or (II) for an eligible entity that did not have gross receipts in 2019, because the eligible entity began operating between January 1, 2020 and February 29, 2020 or due to other factors identified by the Administrator, an alternative amount based on a formula to be determined by the Administrator. (B) Minimum amount The Administrator may establish a minimum amount of a covered grant in an amount that is not more than $10,000. (C) Return to SBA Any amount of a covered grant to an eligible entity based on estimated receipts that is greater than the actual gross receipts of the eligible entity in 2020 shall be returned to the Administrator, who may use those returned funds to make additional covered grants. (3) Insufficient funding (A) In general If the Administrator determines that the amounts made available to carry out this subtitle are insufficient to make covered grants to each eligible entity in the amount provided under paragraphs (1) and (2) and in accordance with the allocations under section 252(b), the Administrator shall— (i) make covered grants with the available amounts— (I) such that the amount of the covered grant that each such eligible entity would have otherwise received under those paragraphs is reduced by an equal percentage; (II) by establishing a maximum amount for a covered grant made under this clause to ensure that smaller eligible entities still receive covered grants in the amounts provided under those paragraphs; or (III) by providing covered grants in the amounts provided under those paragraphs below a certain threshold (as the Administrator may establish) and reducing covered grants above that threshold by an equal percentage; and (ii) in a manner that complies with clause (i), make covered grants to each eligible entity that submits an application for a covered grant during the 21-day period beginning on the date on which the Administrator begins accepting those applications. (B) Reserving funds Nothing in subparagraph (A) shall prevent the Administrator from— (i) reserving funding for applicants that may be determined to be eligible for a covered grant upon reconsideration; or (ii) making partial awards to eligible entities on a preliminary basis until the amount of funding required to fund covered grants to all eligible entities that submit applications is established, upon the completion of the reconsideration process. (d) Use of funds (1) Permitted uses During the covered period, an eligible entity that receives a covered grant may use amounts received under the covered grant for the following expenses incurred as a direct result of, or during, the COVID–19 pandemic: (A) Payroll costs. (B) Payments to independent contractors, as reported on Form 1099-MISC, except that each payment under this subparagraph shall be in an amount that is not more than $100,000. (C) Scheduled payments of interest or principal on any covered mortgage obligation (which may not include any prepayment of principal on a covered mortgage obligation). (D) Payments on any covered rent obligation and common area maintenance charges under a lease agreement. (E) Covered utility payments. (F) Maintenance expenses. (G) Covered worker protection expenditures. (H) Supplies, including protective equipment and cleaning materials. (I) Expenses that were within the scope of the normal business practice of the eligible entity before the covered period. (J) Covered supplier costs. (K) Operational expenses. (L) Paid sick leave. (M) Any other expenses that the Administrator determines to be essential to maintaining the eligible entity. (2) Prohibited uses An eligible entity may not use amounts received under a covered grant for expenses incurred by the eligible entity outside the exclave, including those expenses incurred by related or affiliated businesses located outside the exclave. (e) Returning funds If an eligible entity that receives a covered grant fails to use all of the amounts received under the covered grant on or before the last day of the covered period or permanently ceases operations on or before the last day of the covered period, the eligible entity shall return to the Treasury any funds that the eligible entity did not use for the allowable expenses under subsection (d). F Administration and implementation of support programs 261 Definition In this subtitle, the term covered program 262. Data transparency and customer service The Administrator shall— (1) in carrying out each covered program, maintain regular communication during the period during which the covered program is in effect with applicants and their representatives, including by— (A) hosting regularly scheduled information sessions with applicants and their representatives; and (B) providing opportunities to applicants and their representatives to submit and receive answers to questions regarding covered programs; (2) for each covered program, on a bi-weekly basis until the amounts made available under this title for the covered program are fully expended, publish data that shows, for the period beginning on the date of enactment of this Act and ending on the date on which the information is published— (A) with respect to applications for grants under each covered program, the number of those applications— (i) that the Administrator has received; (ii) that the Administrator has reviewed or is in the process of reviewing; and (iii) with respect to which the Administrator has made a decision; and (B) the number and dollar amount of grants under each covered program— (i) that are awarded; and (ii) that are disbursed; (3) for each covered program, on a weekly basis until the amounts made available under this title to carry out the covered program are fully expended, publish, with respect to the period beginning on the date of enactment of this Act and ending on the date on which the information is published— (A) with respect to each entity to which a grant has been made under the covered program— (i) the name of the entity, including the name under which the entity does business if that name is different from the name of the entity; (ii) the address of the entity; and (iii) if the physical location for the eligible business listed on the application is different from the address of the entity, the address of such physical location; and (B) the amount of each grant described in subparagraph (A); and (4) with respect to an applicant that applies for a grant under a covered program and is denied by the Administrator— (A) make available to the applicant a brief explanation identifying the reason why the Administrator denied the application of the applicant, which shall include, where applicable, a citation to the statutory, regulatory, or guidance provision with which the applicant failed to comply and that was the basis for the denial; and (B) establish a reconsideration process through which the applicant may— (i) submit to the Administrator additional clarifying information the applicant determines to be relevant to whether the applicant is eligible for the grant; (ii) challenge the decision of the Administrator; and (iii) receive a second review of the application submitted by the applicant. 263. Business identifiers In accepting applications for grants under a covered program, the Administrator shall prioritize the ability of each applicant to use the existing business identifier of the applicant over requiring other forms of registration or identification that may not be common to the industry of the applicant, which may impose additional burdens on the applicant. 264. Applications (a) Expedited processing and approval authority (1) In general The Director of the Office of Management and Budget may, on an emergency basis, and in order to expedite the processing and approval of applications for grants under a covered program, waive the requirements of part 200 of title 2, Code of Federal Regulations, or any successor regulations, with respect to the covered program if— (A) the Director finds that such a waiver will prevent entities eligible for grants under the covered program from failing or suffering undue hardship; and (B) each entity that receives a grant under the covered program is still required to report to the Administrator on the use by the entity of the amounts received under the grant. (2) Continuity To the extent practicable, the Director of the Office of Management and Budget shall prioritize administrative continuity for covered programs with the Restaurant Revitalization Fund authorized in section 5003 of the American Rescue Plan Act of 2021 ( 15 U.S.C. 9009c (b) Limitation on denial based on denial for other SBA programs The Administrator may not deny an application by an entity for a grant under a covered program solely on the basis that an application by the entity for another program of the Small Business Administration, including the program under section 5003 of the American Rescue Plan Act of 2021 ( 15 U.S.C. 9009c 265. Prohibition on participation in multiple programs (a) In general An entity may not receive a grant under more than 1 covered program or receive a grant under a covered program and a grant under title IV. (b) Withdrawal of pending applications (1) Definition In this subsection, the term covered application (A) a covered program; (B) the program under section 5003 of the American Rescue Plan Act of 2021 ( 15 U.S.C. 9009c (C) the program under section 324 of the Economic Aid to Hard Hit Small Businesses, Nonprofits, and Venues Act ( 15 U.S.C. 9009a (2) Withdrawal An entity that has a pending covered application may submit a covered application with respect to another program if, at or before the time that the entity submits the covered application with respect to another program, the entity withdraws the pending covered application. 266. Transfer of funds (a) Authority (1) In general Subject to paragraph (2), on and after the date that is 30 days after the date on which the Administrator begins accepting applications under a covered program, the Administrator may transfer amounts made available under this title for that covered program to the fund established under this title for another covered program. (2) Limitation The Administrator may not transfer amounts made available under this title for a covered program if the Administrator determines that the amounts made available to carry out that covered program are insufficient to make grants to each eligible entity in the amount specified with respect to that covered program. (b) Use of transferred funds Any amounts transferred under subsection (a) shall be merged with, and available for the same purposes as, other amounts in the fund to which the amounts are transferred. 267. Oversight and audits (a) In general The Administrator shall institute an oversight and audit plan with respect to entities receiving grants under a covered program, which shall include— (1) documentation requirements that are consistent with the eligibility and other requirements under the applicable covered program, including by requiring an entity that receives a grant under the covered program to retain records that demonstrate compliance with those requirements; and (2) reviews of the use by entities of grants made under the applicable covered program to ensure compliance with the requirements under that covered program, which shall include— (A) the review and audit, by the Administrator, of grants made under that covered program; and (B) in the case of fraud or other material noncompliance with respect to a grant made under that covered program— (i) a requirement that the applicable entity repay to the Administrator the amount of the misspent funds; or (ii) the pursuit, by the Administrator, of legal action to collect the misspent funds. (b) Submission of plan Not later than 45 days after the date of enactment of this Act, the Administrator shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives the plan required under subsection (a), which shall describe— (1) the policies and procedures of the Administrator for conducting oversight and audits of grants made under the covered programs; and (2) the metrics that the Administrator will use to determine which grants made under a covered program will be audited under that plan. (c) Reports Not later than 60 days after the date of enactment of this Act, once every 30 days thereafter until the date that is 180 days after the date on which all amounts made available to carry out covered programs have been fully expended, and upon request thereafter, the Administrator shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report on the oversight and audit activities of the Administrator under this section, which shall include— (1) the total number of grants approved and disbursed under each covered program; (2) the total amount of each grant under each covered program received by each entity that received such a payment; (3) the number of active investigations and audits of grants made under each covered program; (4) the number of completed reviews and audits of grants made under each covered program, including a description of— (A) any findings of fraud or other material noncompliance with the requirements of the applicable covered program; (B) questionable costs identified by the Administrator; and (C) the total amount recouped from ineligible recipients; and (5) a description of any substantial changes made to the plan required under subsection (a). 268. Administrative funding In addition to amounts otherwise available, there is appropriated to the Administrator for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, to remain available until expended, $150,000,000 for administrative expenses to carry out the covered programs, of which, $20,000,000 shall be for the Inspector General of the Small Business Administration for necessary expenses of the Office of Inspector General. 269. Gross receipts For each covered program, the Administrator may authorize applicants for grants under the covered program to measure annual gross receipts using either the calendar year or fiscal year. 270. Rules Not later than 60 days after the date of enactment of this Act, the Administrator shall issue rules to carry out each covered program, without regard to the notice requirements under section 553(b) of title 5, United States Code. III Other SBA program improvements 301. Shuttered venue operators (a) In general Section 324(d) of title III of division N of the Consolidated Appropriations Act, 2021 ( 15 U.S.C. 9009a(d) (1) Timing (A) Expenses incurred Amounts received under a grant under this section may be used for costs incurred during the period beginning on March 1, 2020, and ending on March 11, 2023. (B) Expenditure An eligible person or entity shall return to the Administrator any amounts received under a grant under this section that are not expended on or before April 15, 2023, with respect to costs incurred during the period described in subparagraph (A). . (b) Applicability The amendment made by subsection (a) shall apply to grants made under section 324 of title III of division N of the Consolidated Appropriations Act, 2021 ( 15 U.S.C. 9009a 302. Treatment of paycheck protection program loan forgiveness of payroll costs under highway and public transportation project cost reimbursement contracts (a) In general Notwithstanding section 31.201–5 of title 48, Code of Federal Regulations (or successor regulations), for the purposes of any cost-reimbursement contract awarded in accordance with section 112 of title 23, United States Code, or section 5325 of title 49, United States Code, or any subcontract under such a contract, no cost reduction or cash refund (including through a reduced indirect cost rate) shall be due to the Department of Transportation or to a State transportation department, transit agency, or other recipient of assistance under chapter 1 chapter 53 15 U.S.C. 636m(a) 15 U.S.C. 636(a)(36) (b) Rule of construction Nothing in this section shall be construed to amend or exempt the prohibitions and liability under section 3729 of title 31, United States Code, (relating to false claims). (c) Termination This section shall cease to have force or effect on June 30, 2025. IV Transportation services 401. Additional assistance for eligible providers of transportation services affected by COVID–19 (a) Definitions In this section: (1) CERTS Act The term CERTS Act Public Law 116–260 (2) Provider of transportation services The term provider of transportation services (3) Secretary The term Secretary (b) Appropriation In addition to amounts otherwise made available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $2,000,000,000, to remain available until expended, to provide additional funding for grants under the CERTS Act. (c) Payments (1) Eligible entities The Secretary shall provide the funds made available by subsection (b) to providers of transportation services that— (A) as of the date of enactment of this Act— (i) have been determined to be eligible under the CERTS Act; and (ii) are in compliance with the applicable terms and conditions of the CERTS Act; or (B) on or after the date of enactment of this Act, are determined to be eligible under the terms and conditions described in subparagraph (A)(ii). (2) Calculation A payment provided under this subsection shall be calculated using the same methodology as is used for the distribution of funds under the CERTS Act. (3) Return of unused amounts A provider of transportation services shall return to the Secretary any funds provided under this subsection that are not used by the provider of transportation services by the date that is 1 year after the date of receipt of the funds. (d) Administration (1) In general The Secretary shall have the authorities provided by the CERTS Act with respect to the funds made available by subsection (b). (2) Administrative expenses Of the funds made available by subsection (b), not more than $50,000,000 may be used by the Secretary for the costs of administering this section and the CERTS Act. V Offsets 501. Offsetting rescissions (a) In general Of the unobligated balances from amounts made available under the heading Small Business Administration—Business Loans Program Account, CARES Act Public Law 116–260 15 U.S.C. 636(a) (b) CARES Act Of the unexpended balances remaining from amounts made available under the heading Small Business Administration—Business Loans Program Account, CARES Act 15 U.S.C. 9006(a)(1) VI Budgetary effects 601. Emergency designation (a) In general The amounts provided under the this Act and the amendments made by this Act are designated as an emergency requirement pursuant to section 4(g) of the Statutory Pay-As-You-Go Act of 2010 ( 2 U.S.C. 933(g) (b) House and Senate This Act and the amendments made by this Act are designated as an emergency requirement pursuant to subsections (a) and (b) of section 4001 of S. Con. Res. 14 (117th Congress), the concurrent resolution on the budget for fiscal year 2022. April 6, 2022 Read the second time and placed on the calendar

Summary: Small Business COVID Relief Act of 2022 This bill provides support for restaurants and other businesses impacted by the COVID-19 pandemic. Specifically, the bill provides additional funding for the Small Business Administration (SBA) to provide grants to support the ongoing operations of eligible restaurants and similar establishments. The SBA must report weekly and biweekly information about grant applications, awards, and denials. Additionally, the bill funds grants to support other eligible businesses impacted by the pandemic, including gyms and fitness centers, minor league sports teams, businesses located near land ports of entry, businesses that provide and support live events, and businesses located in certain U.S. exclaves with limited accessibility. A business may receive a grant under only one program. The bill also establishes procedures for the SBA to implement and provide administrative support for these grant programs. The SBA must institute an oversight and audit plan to review the use of grants under these programs. Further, the bill provides additional funding for grants to support eligible transportation service providers. Finally, the bill designates the funding as emergency spending, which is exempt from discretionary spending limits.