Small Business COVID-19 Recovery Grants Act of 2020

To require the Administrator of the Small Business Administration to provide economic injury grants for small business concerns affected by the COVID–19 pandemic, and for other purposes. 1. Short title This Act may be cited as the Small Business COVID–19 Recovery Grants Act of 2020 2. Economic injury grants for small business concerns (a) Grants The Administrator of the Small Business Administration shall provide grants to eligible small business concerns that have suffered a substantial economic injury (as defined in section 7(b)(2) of the Small Business Act ( 15 U.S.C. 636(b)(2) (b) Definition of eligible small business concern In this section, the term eligible small business concern 15 U.S.C. 632 (c) Amount of grant A grant provided under this section shall be in an amount that is not more than $100,000. (d) Use of funds An eligible small business concern that receives a grant under this section may use the grant funds to address the direct effects of the COVID–19 pandemic, including— (1) providing paid sick leave to employees unable to work; (2) maintaining payroll to retain employees during business disruptions or substantial slowdowns; (3) meeting increased costs to obtain materials unavailable from the original source of the eligible small business concern due to interrupted supply chains; (4) making payments under a lease or mortgage loan related to a place of operation of the small business concern; (5) repaying obligations that cannot be met due to revenue losses; and (6) other expenses as deemed appropriate by the Administrator. (e) Application (1) In general An eligible small business concern desiring a grant under this section shall submit to the Administration an application at such time, in such manner, and containing such information as the Administration may require. (2) Standards The Administrator shall establish minimum qualifying standards to ensure that applicants adversely impacted by the effects of COVID–19 pandemic receive funds expeditiously under this section. (f) Procedures The Administrator shall establish procedures to verify and document compliance with the requirements under this section in order to prevent waste, fraud, and abuse of funds awarded under this section. (g) Authorization of appropriations There is authorized to be appropriated $100,000,000,000 to the Administrator to carry out this section. (h) Emergency rulemaking authority (1) In general Within 15 days after the date of the enactment of this section, the Administrator of the Small Business Administration shall issue rules to carry out this section. (2) Notice Notice requirements of section 553(b) of title 5, United States Code, shall not apply to any issuance of rules under paragraph (1). (i) Report Not later than March 31, 2022, the Administrator of the Small Business Administration shall submit to Congress a report that includes— (1) the number of grants made under this section, disaggregated by the number of grants made— (A) in an amount less than or equal to $20,000; (B) in an amount greater than $20,000 but less than or equal to $40,000; (C) in an amount greater than $40,000 but less than or equal to $60,000; (D) in an amount greater than $60,000 but less than or equal to $80,000; and (E) in an amount greater than $80,000 but less than or equal to $100,000; (2) the average amount of an award; (3) an analysis of the program established under this section and recommendations for improvement; (4) the average time from receipt of an application to approval of grant under this section; and (5) the average time from approval of grant to disbursement of grant funds. (j) Termination The authority to carry out grants under this section shall terminate on September 30, 2021.

Summary: Small Business COVID-19 Recovery Grants Act of 2020 This bill requires the Small Business Administration to provide grants to small businesses that have suffered substantial economic injury as a result of COVID-19 (i.e., coronavirus disease 2019). Such grants may not exceed a specified amount and may be used to address direct effects of COVID-19, including (1) providing paid sick leave to employees, (2) maintaining payroll, and (3) meeting increased supply chain costs.