(g)(2) that were paid during the covered 
period. 
(2) ALTERNATIVE AMOUNT.—If the amount of 
forgiveness on a covered loan as calculated under 
paragraph (1) is less than or equal to the amount 
of accrued interest payments for the first 12 months 
of the covered loan— 
(A) the amount of loan forgiveness shall be 
equal to the amount of those interest payments; 
(B) forgiveness shall not be subject to sec-
tion 108(j) of the Internal Revenue Code, as 
added by paragraph (8)(C); and 
(C) to receive the forgiveness amount de-
scribed in subparagraph (A), the eligible recipi-
ent shall include in the loan forgiveness applica-
tion a certification to the Administrator that 
the eligible recipient was eligible for a covered 
loan under this section at the time of applica-
tion for the covered loan. 
(3) LOAN
FORGIVENESS
FOR
SMALL
NON-
PROFITS.—A nonprofit organization described in 
subsection (a)(5)(B) with not more than 500 full- 
time employees as of February 15, 2020, that is an 
eligible recipient of a covered loan and submits an 
application not later than December 31, 2023, shall 
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be eligible for forgiveness for expenses described in 
subparagraphs (A) through (F) of subsection (g)(2) 
using, at the election of the nonprofit organization— 
(A) the amount obtained using the formula 
described in paragraph (1), except that gross 
receipts shall not include donations, grants, 
dues, and investment income; or 
(B) the amount obtained using the formula 
described in paragraph (1), except that the 
number in subparagraph (A)(ii) of such para-
graph shall be— 
(i) .7 for a nonprofit organization 
with not more than 50 full-time employees 
as of February 15, 2020; and 
(ii) .2 for a nonprofit organization 
with not fewer than 50 and not more than 
500 full-time employees as of February 15, 
2020. 
(4) PROHIBITION ON FORGIVENESS.—Any cov-
ered loan made to an eligible recipient that is pub-
licly traded, is a nonprofit organization described in 
section 501(c)(7) of the Internal Revenue Code, or 
is an eligible recipient described in subsection 
(f)(7)(D) shall not be eligible for loan forgiveness 
under this subsection. 
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(5) LIMITATION
ON
AMOUNT
OF
FORGIVE-
NESS.— 
(A) IN GENERAL.—The amount of all cov-
ered loans made to an eligible recipient that 
may be forgiven under this subsection shall not 
exceed the total losses incurred by the eligible 
recipient in the taxable year 2020. 
(B) APPLICATION
OF
RELATED
PARTY 
PAYMENTS.—The Secretary shall issue regula-
tions that provide that, for purposes of the loss 
calculation under subparagraph (A)— 
(i) with respect to an eligible recipient 
of a covered loan with not fewer than 500 
full-time employees, related party trans-
actions are prohibited from counting to-
ward the loss calculation; and 
(ii) with respect to an eligible recipi-
ent of a covered loan with not more than 
500 full-time employees, any related party 
payments made during the covered period 
cannot be greater than related party pay-
ments made during taxable year 2019. 
(C) CAPITAL
LOSSES.—For purposes of 
the loss calculation under subparagraph (A), 
capital losses from the sale of assets or deduc-
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tions for guaranteed payments to partners in 
partnerships or owners in S-corporations shall 
not count toward the loss calculation. 
(D) LIMITATION ON PPE EXPENSES.—An 
eligible recipient may only receive forgiveness 
for personal protective equipment expenses de-
scribed in subsection (g)(2)(F) of not more 
than $5,000. 
(6) NO
LIMITS
BASED
ON
PERCENTAGE
OF 
FUNDS
USED
FOR
CERTAIN
EXPENSES.—The Ad-
ministrator or the Secretary shall not place limita-
tions on forgiveness under this subsection based on 
the percentage of covered loan proceeds that are 
used for specific expenses described in subsection 
(g)(2). 
(7) HOLD HARMLESS.—If a lender approved to 
make covered loans has received the required docu-
mentation under this section from an applicant at-
testing that the applicant has accurately verified the 
eligibility, gross receipts, and expenses of the appli-
cant during the covered period— 
(A) an enforcement action may not be 
taken against the lender under section 47(e) of 
the Small Business Act (15 U.S.C. 657t(e)) re-
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lating to loan forgiveness for those expenses; 
and 
(B) the lender shall not be subject to any 
penalties by the Administrator relating to loan 
forgiveness for the expenses. 
(8) TREATMENT OF FORGIVEN AMOUNTS.— 
(A) IN
GENERAL.—Section 108(a)(1) of 
the Internal Revenue Code of 1986 is amended 
by striking ‘‘or’’ at the end of subparagraph 
(D), by striking the period at the end of sub-
paragraph (E)(ii) and inserting ‘‘, or’’, and by 
adding at the end the following new subpara-
graph: 
‘‘(F) the indebtedness discharged is a cov-
ered loan (as defined in section 2(a) of the RE-
START Act) discharged under section 2(j) of 
such Act.’’. 
(B) REDUCTION
OF
TAX
ATTRIBUTES.— 
Section 108(b)(1) of such Code is amended by 
striking ‘‘or (C)’’ and inserting ‘‘, (C), or (F) 
(after application of subsection (j)(i))’’. 
(C) LIMITATION.—Section 108 of such 
Code is amended by adding at the end the fol-
lowing new subsection: 
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‘‘(j) SPECIAL RULES FOR DISCHARGES OF COVERED 
LOANS.— 
‘‘(1) INCLUSION OF EXCESS AMOUNTS.— 
‘‘(A) IN
GENERAL.—In the case of any 
taxpayer to which subsection (a)(1)(F) applies, 
the gross income of such taxpayer for any tax-
able year in the applicable period shall be in-
creased by the product of— 
‘‘(i) 20 percent, and 
‘‘(ii) so much of the amount excluded 
under subsection (a)(1)(F) as exceeds 
$250,000. 
‘‘(B) APPLICABLE PERIOD.—For purposes 
of subparagraph (A), the term ‘applicable pe-
riod’ means the 5 taxable-year period beginning 
with the taxable year in which the discharge oc-
curs. 
‘‘(2) APPLICATION TO TAX ATTRIBUTES.—For 
purposes of applying subsection (b), the amount 
taken into account as excluded from income under 
subsection (a)(1)(F) shall not exceed $250,000.’’. 
(D) EFFECTIVE DATE.—The amendments 
made by this paragraph shall apply to dis-
charges of indebtedness after the date of the 
enactment of this Act. 
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(9) COORDINATION
WITH
EMPLOYEE
RETEN-
TION TAX CREDIT.—Section 2301(g) of the CARES 
Act (Public Law 116–136) is amended to read as 
follows: 
‘‘(g) ELECTION TO NOT TAKE CERTAIN WAGES 
INTO ACCOUNT.— 
‘‘(1) IN GENERAL.—This section shall not apply 
to qualified wages paid by an eligible employer with 
respect to which such employer makes an election 
(at such time and in such manner as the Secretary 
may prescribe) to have this section not apply to such 
wages. 
‘‘(2) COORDINATION WITH RESTART LOANS.— 
The Secretary, in consultation with the Adminis-
trator of the Small Business Administration, shall 
issue guidance providing that payroll costs paid or 
incurred during the covered period shall not fail to 
be treated as qualified wages under this section by 
reason of an election under paragraph (1) to the ex-
tent that a covered loan of the eligible employer is 
not forgiven by reason of a decision under section 
2(j) of the RESTART Act. Terms used in the pre-
ceding sentence which are also used in section 3 of 
such Act shall have the same meaning as when used 
in such section.’’. 
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(k) SPECIAL RULES FOR SEASONAL AND NEW BUSI-
NESSES.— 
(1) IN GENERAL.—The Administrator and the 
Secretary shall develop special rules and procedures 
for eligibility, calculation of full-time employees, loan 
terms, and loan forgiveness for— 
(A) covered loans made to eligible recipi-
ents that are seasonal that do not have suffi-
cient revenue to fully benefit from assistance 
provided under this section; and 
(B) covered loans made to eligible recipi-
ents formed after January 1, 2019, that do not 
have sufficient revenue to fully benefit from as-
sistance provided under this section. 
(2) LOAN
AMOUNT.—The Administrator and 
the Secretary shall develop terms with respect to the 
loan amount of a covered loan for the eligible recipi-
ents described in paragraph (1) to provide consistent 
support to those eligible recipients relative to an ex-
isting or a non-seasonal eligible recipient. 
(3) PROHIBITION.—An eligible recipient formed 
after January 1, 2019, shall not be eligible for loan 
forgiveness under this section. 
(l) TRANSPARENCY.— 
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(1) REPORTING.—The Administrator shall col-
lect and publish information in searchable and 
downloadable format on eligible recipients of covered 
loans, including— 
(A) the name of each eligible recipient with 
not fewer than 50 full-time employees that re-
ceived a covered loan, which shall be published 
on a monthly basis; 
(B) aggregate demographic information of 
applicants that applied and applicants that were 
approved for a covered loan, which shall be pub-
lished on a weekly basis; 
(C) the number of loan applications re-
ceived and total loan amount requested, the 
number of loan applications awaiting disposition 
and the total loan amount awaiting disposition, 
the number of loan applications rejected and 
the total loan amount rejected, and the number 
of loan applications approved and the total loan 
amount approved by each lender, which shall be 
published on a weekly basis; 
(D) aggregate total loan volume approved 
broken down by the applicable North American 
Industry Classification System code and by 
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State, which shall be published on a weekly 
basis; 
(E) details on the total number of employ-
ees, loan size, applicable North American In-
dustry Classification System code, and head-
quarters location of each eligible recipient of a 
covered loan, which shall be published on a 
monthly basis; and 
(F) the name of and loan amount forgiven 
for each eligible recipient of a covered loan with 
not fewer than 50 full-time employees, with ag-
gregate loan amount forgiveness data provided 
for all eligible recipients of covered loans, which 
shall be published in a final report not later 
than December 31, 2022. 
(2) MULTIPLE APPLICATIONS.—To the extent 
possible, the Administrator should endeavor to de- 
duplicate multiple applications for a covered loan 
submitted by the same applicant to different lenders 
for purposes of public reporting. 
(3) INFORMATION
FROM
BORROWERS.—The 
Administrator shall require lenders of covered loans 
to collect information from eligible recipients and 
submit the information to the Administrator for the 
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purpose of meeting the reporting requirements in 
paragraph (1). 
(m) SEPARATION
OF FUNDS
AND BANKRUPTCY 
TREATMENT.— 
(1) SEPARATION OF FUNDS.—An eligible recipi-
ent of a covered loan shall— 
(A) separately account for, and not com-
mingle with other funds, the proceeds of the 
covered loan; and 
(B) account in detail for the use of the 
proceeds. 
(2) BANKRUPTCY TREATMENT.— 
(A) IN GENERAL.—If an eligible recipient 
of a covered loan is a debtor in a case under 
chapter 7 or 13 of title 11, United States Code, 
and the covered loan is still outstanding on the 
date of the commencement of the case— 
(i) any interest of the eligible recipient 
in the proceeds of the covered loan shall 
not be included in the property of the es-
tate; and 
(ii) the amount of the proceeds of the 
covered loan that were not expended on al-
lowable expenses described in subsection 
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(g)(2) or forgiven under subjection (j) shall 
be transferred to the Federal Government. 
(B) UNRECOVERED AMOUNTS ON COVERED 
LOANS.—Nothing in subparagraph (A) shall 
preclude the Federal Government from pur-
suing a claim in a case under chapter 7 or 13 
of title 11, United States Code, with respect to 
the difference, if any, between the amount due 
to the Federal Government on a covered loan 
and the amount that was transferred under 
subparagraph (A)(ii). 
(n) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to the Administration— 
(1) such sums as may be necessary to carry out 
this section, to remain available until December 31, 
2020; and 
(2) $150,000,000, to remain available until ex-
pended, for administrative purposes to update tech-
nologies to allow for digital case management, elec-
tronic submissions, and increased telecommuni-
cations related to the program under this section. 
Æ 
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