I 
116TH CONGRESS 
2D SESSION 
H. R. 6292 
To establish the Office of Coronavirus COVID–19 Small Business Recovery 
Grants in the Small Business Administration to compensate certain small 
business concerns for substantial economic injury, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 19, 2020 
Ms. JACKSON LEE introduced the following bill; which was referred to the 
Committee on Small Business, and in addition to the Committee on 
Transportation and Infrastructure, for a period to be subsequently deter-
mined by the Speaker, in each case for consideration of such provisions 
as fall within the jurisdiction of the committee concerned 
A BILL 
To establish the Office of Coronavirus COVID–19 Small 
Business Recovery Grants in the Small Business Admin-
istration to compensate certain small business concerns 
for substantial economic injury, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘COVID–19 Small 
Business Recovery Grants Act’’. 
SEC. 2. DEFINITIONS. 
In this Act, the following definitions apply: 
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(1) CLAIM.—The term ‘‘claim’’ means a claim 
by an injured concern under this Act for payment 
for substantial economic injury suffered by the in-
jured concern as a result of COVID–19. 
(2) CLAIMANT.—The term ‘‘claimant’’ means 
an injured concern that submits a claim under sec-
tion 4(b). 
(3) ADMINISTRATOR.—The term ‘‘Adminis-
trator’’ means the Administrator of the Small Busi-
ness Administration. 
(4) INJURED
CONCERN.—The term ‘‘injured 
concern’’— 
(A) means a small business concern that is 
located in an area that is a qualified disaster 
area as a result of COVID–19; and 
(B) does not include— 
(i) a lender that holds a mortgage on 
or security interest in real or personal 
property affected by COVID–19; or 
(ii) a person that holds a lien on real 
or personal property affected by COVID– 
19. 
(5) OFFICE.—The term ‘‘Office’’ means the Of-
fice of Coronavirus COVID–19 Small Business Re-
covery Grants established by section 3. 
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SEC. 3. OFFICE OF CORONAVIRUS COVID–19 SMALL BUSI-
NESS RECOVERY GRANTS. 
(a) IN GENERAL.—There is established within the 
Small Business Administration an office to be known as 
the ‘‘Office of Coronavirus COVID–19 Small Business Re-
covery Grants’’. 
(b) PURPOSE.—The Office shall receive, process, and 
pay claims in accordance with section 4. 
(c) FUNDING.—The Office— 
(1) shall be funded from funds made available 
under this Act; and 
(2) may reimburse any other Federal agency 
for provision of assistance in the receipt and proc-
essing of claims. 
(d) PERSONNEL.— 
(1) IN GENERAL.—The Office may appoint and 
fix the compensation of such temporary personnel as 
are necessary to carry out the duties of the Office, 
without regard to the provisions of title 5, United 
States Code, governing appointments in the competi-
tive service. 
(2) PERSONNEL FROM OTHER AGENCIES.—On 
the request of the Administrator, the head of any 
other Federal agency may detail, on a reimbursable 
basis, any of the personnel of the agency to the Fed-
eral Emergency Management Agency to assist the 
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Office in carrying out the duties of the Office under 
this Act. 
(3) EFFECT ON OTHER SBA DUTIES.—The es-
tablishment of the Office shall not diminish the au-
thority of, or funding available to, the Administrator 
to carry out the responsibilities of the Small Busi-
ness Act. 
SEC. 4. COMPENSATION FOR VICTIMS OF COVID–19. 
(a) IN GENERAL.—Each injured concern may receive 
compensation for substantial economic injury suffered as 
a result of COVID–19, as determined by the Adminis-
trator. 
(b) SUBMISSION OF CLAIMS.—Not later than 1 year 
after the date on which interim final regulations are pro-
mulgated under subsection (h), an injured concern may 
submit to the Administrator a written claim for compensa-
tion for substantial economic injury suffered as a result 
of COVID–19. 
(c) HANDLING OF CLAIMS.—The Administrator shall 
investigate, adjust, grant, deny, settle, or compromise any 
claim submitted under subsection (b). 
(d) AMOUNT OF GRANT.— 
(1) IN GENERAL.—Any grant made to an in-
jured concern— 
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(A) shall be limited to the amount nec-
essary to compensate the injured concern for 
substantial economic injury described in para-
graph (2) suffered as a result of COVID–19 
during the period beginning on December 1, 
2019, and ending on December 31, 2021; 
(B) shall not include— 
(i) interest on the amount of the pay-
ment before the date of settlement or pay-
ment of a claim; or 
(ii) punitive damages or any other 
form of noncompensatory damages; and 
(C) shall not exceed $100,000, except in 
the case of a grant application for which the 
Administrator 
determines 
that 
a 
greater 
amount up to $250,000 is appropriate. 
(2) SUBSTANTIAL
ECONOMIC
INJURY.—Under 
paragraph (1), an injured concern may receive pay-
ment for substantial economic injury consisting of 
one or more of the following: 
(A) An uninsured or underinsured property 
loss. 
(B) Damage to or destruction of physical 
infrastructure. 
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(1) 
DETERMINATION
AND
PAYMENT
OF 
AMOUNT.— 
(A) IN GENERAL.—To the maximum ex-
tent practicable, not later than 180 days after 
the date on which a claim is submitted under 
subsection (b), the Administrator shall— 
(i) determine the amount, if any, to 
be paid for the claim; and 
(ii) pay the amount. 
(B) PRIORITY.—The Administrator may 
establish priorities for processing and paying 
claims based on— 
(i) an assessment of the needs of the 
claimants; and 
(ii) any other criteria that the Admin-
istrator determines to be appropriate. 
(C) PARAMETERS OF DETERMINATION.— 
In determining and paying a claim, the Admin-
istrator shall determine only— 
(i) whether the claimant is an injured 
concern; and 
(ii) whether the injuries that are the 
subject of the claim resulted from COVID– 
19. 
(D) INSURANCE AND OTHER BENEFITS.— 
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(i) IN
GENERAL.—Subject to clause 
(ii), to prevent recovery by a claimant in 
excess of the equivalent of actual amount 
of the substantial economic injury suffered 
by the claimant in accordance with sub-
section (d), the Administrator shall reduce 
the amount to be paid for the claim by an 
amount that is equal to the sum of the 
payments or settlements of any kind that 
were paid, or will be paid, with respect to 
the claim, including payments by an insur-
ance company. 
(ii) GOVERNMENT LOANS.—Clause (i) 
shall not apply to the receipt by a claimant 
of any Federal, State, or local government 
loan that is required to be repaid by the 
claimant. 
(2) ADVANCE OR PARTIAL PAYMENTS.—At the 
request of a claimant, the Administrator may make 
one or more advance or partial payments before the 
final approval of a grant. 
(f) RECOVERY OF FUNDS IMPROPERLY PAID OR MIS-
USED.—The Administrator may recover any portion of a 
payment on a grant that was improperly paid to the claim-
ant as a result of— 
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(1) fraud or misrepresentation on the part of 
the claimant or a representative of the claimant; 
(2) a material mistake on the part of the Ad-
ministrator; 
(3) the payment of insurance or benefits de-
scribed in subsection (e)(1)(D) that were not taken 
into account in determining the amount of the pay-
ment; or 
(4) the failure of the claimant to cooperate in 
an audit. 
(g) APPEALS OF DECISIONS.— 
(1) RIGHT OF APPEAL.—A claimant may appeal 
a decision concerning payment of a claim by filing, 
not later than 60 days after the date on which the 
claimant is notified that the claim of the claimant 
will or will not be paid, a notice of appeal in the case 
of a decision on a claim relating to a business loss, 
with the Administrator of the Federal Emergency 
Management Administration. 
(2) PERIOD
FOR
DECISION.—A decision con-
cerning an appeal under paragraph (1) shall be ren-
dered not later than 90 days after the date on which 
the notice of appeal is received. 
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(h) REGULATIONS.—Notwithstanding any other pro-
vision of law, not later than 45 days after the date of en-
actment of this Act— 
(1) the Administrator shall promulgate and 
publish in the Federal Register interim final regula-
tions for the processing and payment of claims; and 
(2) the Administrator and the Administrator of 
the Federal Emergency Management Agency shall 
jointly promulgate and publish in the Federal Reg-
ister procedures under which a dispute concerning 
payment of a claim may be settled through an ap-
peals process described in subsection (g). 
(i) PUBLIC INFORMATION.—At the time of publica-
tion of interim final regulations under subsection (h), the 
Administrator shall publish a clear, concise, and easily un-
derstandable explanation of the grant program established 
under this Act the procedural and other requirements of 
the regulations promulgated under subsection (h). Such 
explanation shall be— 
(1) disseminated through brochures, pamphlets, 
radio, television, the print news media, and such 
other media as the Administrator determines to be 
likely to reach prospective claimants; and 
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(2) provided in English, Spanish, and any other 
language that the Administrator determines to be 
appropriate. 
(j) COORDINATION.—In carrying out this section, the 
Administrator shall coordinate with the Administrator of 
the Federal Emergency Management Agency, other Fed-
eral, State and local agencies, and any other individual 
or entity, as the Administrator determines to be necessary 
to ensure the efficient administration of the claims proc-
ess. 
(k) APPLICABILITY OF DEBT COLLECTION REQUIRE-
MENTS.— 
(1) IN
GENERAL.—Section 3716 of title 31, 
United States Code, shall not preclude any payment 
on a claim. 
(2) 
ASSIGNMENT
AND
EXEMPTION
FROM 
CLAIMS OF CREDITORS.— 
(A) ASSIGNMENT.—No assignment, re-
lease, or commutation of a payment due or pay-
able under this Act shall be valid. 
(B) EXEMPTION.— 
(i) IN GENERAL.—A payment under 
this Act shall be exempt from all claims of 
creditors and from levy, execution, attach-
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ment, or other remedy for recovery or col-
lection of a debt. 
(ii) NONWAIVABLE EXEMPTION.—The 
exemption provided by clause (i) may not 
be waived. 
SEC. 5. REPORTS AND AUDITS. 
(a) REPORTS.—Not later than 1 year after the date 
of promulgation of interim final regulations under section 
4(h) and annually thereafter, the Administrator shall sub-
mit to Congress a report that describes the claims sub-
mitted under section 4(b) during the year preceding the 
date of submission of the report, including, with respect 
to each claim— 
(1) the amount claimed; 
(2) a brief description of the nature of the 
claim; and 
(3) the status or disposition of the claim, in-
cluding the amount of any payment on the claim. 
(b) AUDITS.—The Comptroller General of the United 
States shall— 
(1) conduct an annual audit of the payment of 
all claims submitted under section 4(b); and 
(2) not later than 120 days after the date on 
which the Administrator submits the initial report 
required by subsection (a) and annually thereafter, 
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submit to Congress a report on the results of the 
audit. 
SEC. 6. AUTHORIZATION OF APPROPRIATIONS. 
(a) IN GENERAL.—There are authorized to be appro-
priated to carry out this Act— 
(1) to the Office of Business Recovery Grants 
established under section 3 to administer the claims 
process, $25,000,000; and 
(2) for payment of claims, $975,000,000. 
(b) AVAILABILITY.—Amounts made available under 
subsection (a) shall remain available until expended. 
SEC. 7. TERMINATION OF AUTHORITY. 
The authority provided by this Act terminates effec-
tive 30 months after the date of enactment of this Act. 
Æ 
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