SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Assistance for Busi-
nesses and Local Economies Act’’ or the ‘‘ABLE Act of 
2020’’. 
SEC. 2. ESTABLISHMENT AND COORDINATION OF THE 
EMERGENCY SOCIAL INSURANCE PROGRAM. 
(a) IN GENERAL.—The Administrator of the Social 
Security Administration and the Administrator of the 
Small Business Administration, under the direction of the 
Secretary of Labor and the Secretary of the Treasury, re-
spectively, in consultation with the Commissioner of the 
Internal Revenue Service, shall establish a joint program 
to efficiently coordinate and deliver direct payments to af-
fected small businesses and affected idle workers during 
the COVID-19 crisis. 
(b) ESTABLISHMENT.—The Emergency Social Insur-
ance Program shall be a dual approach for direct govern-
ment assistance to meet full salary need of lost wages 
faced by affected idle workers and to meet full mainte-
nance need of output losses faced by affected small busi-
nesses in order to stabilize and shelter the economy from 
COVID-19. 
(c) COORDINATION.—The Social Security Adminis-
tration and the Department of Labor shall collaborate 
with States to increase and maximize unemployment in-
surance benefits for affected idle workers through existing 
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State agency mechanisms. The Small Business Adminis-
tration and the Department of the Treasury (with the In-
ternal Revenue Service) shall be responsible for estab-
lishing and managing a $500 billion fund for direct eco-
nomic injury grants for qualifying small businesses, with 
IRS assisting in verification and oversight of awards’ 
amounts and uses. 
(d) DEFINITIONS.—In this Act: 
(1) SSA; SSA ADMINISTRATOR; SBA; SBA AD-
MINISTRATOR; IRS; IRS COMMISSIONER.—The terms 
‘‘SSA’’ and ‘‘SSA Administrator’’ mean the Social 
Security Administration and the Administrator 
thereof, the terms ‘‘SBA’’ and ‘‘SBA Administrator’’ 
mean the Small Business Administration and the 
Administrator thereof, the terms ‘‘IRS’’ and ‘‘IRS 
Commissioner’’ mean the Internal Revenue Service 
and the Commissioner thereof, respectively. 
(2) COVID-19 CRISIS.—The term ‘‘COVID-19 
crisis’’ means the period that begins upon the date 
of the enactment of this Act and ends on the date 
of the termination by the Federal Emergency Man-
agement Agency of the emergency declared on 
March 13, 2020, by the President under the Robert 
T. Stafford Disaster Relief and Emergency Assist-
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ance Act (42 U.S.C. 4121 et seq.) relating to the 
Coronavirus Disease 2019 (COVID–19) pandemic. 
(3) AFFECTED IDLE WORKER.—The term ‘‘af-
fected idle worker’’ means an individual who, as a 
result of COVID-19— 
(A) has no rights to regular compensation 
with respect to a week under State law or any 
other State unemployment compensation law or 
to compensation under any other Federal law; 
(B) is not receiving any State or private 
paid leave with respect to such week; and 
(C) can attest that— 
(i) the individual is not able or avail-
able to work due to COVID-19 with re-
spect to such week; 
(ii) the individual would be able and 
available to work during such week, if not 
for COVID-19; because 
(iii) the individual has a current diag-
nosis of COVID-19; 
(iv) the individual is under quarantine 
(including self-imposed quarantine), at the 
instruction of a health care provider, em-
ployer, or a local, State, or Federal official, 
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in order to prevent the spread of COVID- 
19; 
(v) the individual is unable to engage 
in self-employment and had past net earn-
ings from self-employment (as defined in 
section 1402(a) of the Internal Revenue 
Code of 1986) of not less than $2500 dur-
ing the 6-month period ending on the date 
of enactment of this Act; 
(vi) the individual had a contract or 
other offer of employment suspended or re-
scinded due to COVID-19; 
(vii) the individual is engaged in 
caregiving (without compensation) for an 
individual who has a current diagnosis of 
COVID-19 or is under quarantine; or 
(viii) the individual is engaged in 
caregiving (without compensation), because 
of the COVID-19-related closing of a 
school or other care facility or care pro-
gram, for a child or other individual unable 
to provide self-care. 
(4) AFFECTED
SMALL
BUSINESS.—The term 
‘‘affected small business’’ means— 
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(A) a small business concern (as defined 
under section 3 of the Small Business Act (15 
U.S.C. 636)); 
(B) a family farm; 
(C) an independent contractor; and 
(D) any other affected additional covered 
entity, under section 5 of this Act, to which the 
Small 
Business 
Administration 
determines 
grants would promote full employment and fi-
nancial stability during the COVID-19 crisis. 
(5) AFFECTED SMALL BUSINESS CONCERN.— 
The term ‘‘affected small business concern’’ means 
a small business concern that has experienced, as a 
result of COVID-19— 
(A) supply chain disruptions, including 
changes in— 
(i) quantity and lead time, including 
the number of shipments and components 
and delays in shipments; 
(ii) quality, including shortages in 
supply for quality control reasons; and 
(iii) technology, including a com-
promised payment network; 
(B) staffing challenges; 
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(C) a decrease in profits, sales, or cus-
tomers; or 
(D) a closure. 
SEC. 3. ENHANCEMENT OF EMERGENCY COVID-19 UNEM-
PLOYMENT COMPENSATION FOR AFFECTED 
IDLE WORKERS. 
(a) IN GENERAL.—The Administrator of the Social 
Security Administration (referred to as the ‘‘SSA Admin-
istrator’’ in this section), in consultation with the Sec-
retary of Labor, shall assist States to offer expanded un-
employment insurance for workers reporting as idle or un-
employed, as a result of the public health emergency de-
clared because of COVID-19. 
(b) IDLE DEFINED.—The term ‘‘idle’’ means a work-
er facing substantial economic uncertainty and hardship 
due the COVID-19 and its social distancing, including but 
not limited to— 
(1) food service industry workers and hospi-
tality workers; 
(2) domestic workers and tipped workers; 
(3) gig economy workers, freelancers, and other 
self-employed individuals; and 
(4) independent contractors. 
(c) FEDERAL-STATE
AGREEMENTS.—Any State 
which desires to do so may enter into and participate in 
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an agreement under this section with the Secretary of 
Labor (hereinafter this section referred to as the ‘‘Sec-
retary’’). Any State which is a party to an agreement 
under this section may, upon providing 30 days’ written 
notice to the Secretary, terminate such agreement. 
(d) PROVISIONS OF AGREEMENT.— 
(1) IN GENERAL.—Any agreement under this 
section shall provide the following: 
(A) EMERGENCY
COVID-19
UNEMPLOY-
MENT
COMPENSATION.—The State agency of 
the State will make payments of regular com-
pensation to individuals in amounts and to the 
extent that they would be determined if that 
State law of the State were applied, with re-
spect to any week for which the individual is 
(disregarding this section) otherwise entitled 
under the State law to receive regular com-
pensation, as if such State law had been modi-
fied in a manner such that the amount of reg-
ular compensation (including dependents’ allow-
ances) payable for any week shall be equal to 
meet 100 percent salary— 
(i) the amount determined under the 
State law (before the application of this 
paragraph), plus additional amount caps 
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(referred to as ‘‘Emergency COVID-19 
Unemployment Compensation’’ in this sec-
tion), including— 
(ii) up to an additional $5,000 per 
month for all affected idle workers of such 
affected small businesses (described in sec-
tion 3 of this Act); 
(iii) up to an additional $4,000 per 
month for all affected idle tipped workers, 
certain domestic workers, and independent 
contractors; and 
(iv) up to an additional $3,000 per 
month for all other affected and eligible 
self-employed individuals, such as gig econ-
omy workers and freelancers. 
(B) EMERGENCY
COVID-19
SHORT-TIME 
COMPENSATION.—In the case of a State that 
provides under the State law for the payment of 
short-time compensation under a short-time 
compensation program (as defined in section 
3306(v) of the Internal Revenue Code of 1986), 
the State agency of the State will make pay-
ments of compensation to employees partici-
pating in such program in amounts and to the 
extent that they would be determined under 
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such program if the State law of the State were 
applied with respect to any week for which the 
individual is (disregarding this section) other-
wise eligible under the program under the State 
law to receive such compensation, as if such 
State law had been modified in a manner such 
that the amount of compensation payable for 
any week shall be equal to the amount deter-
mined under the State law (before the applica-
tion of this paragraph) plus half the eligible 
amount of the caps in subparagraph (A) in this 
section (d). 
(2) ALLOWABLE METHODS OF PAYMENT.—Any 
Emergency COVID-19 Unemployment Compensa-
tion or Emergency COVID-19 Short-Time Com-
pensation provided for in the accordance with para-
graph (1) shall be payable either— 
(A) as an amount which is paid at the 
same time and in the same manner as any com-
pensation otherwise payable for the week in-
volved; or 
(B) at the option of the State, by pay-
ments which are made separately from, but on 
the same weekly basis as, any compensation 
otherwise payable. 
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(e) NONREDUCTION RULE.—Any agreement under 
this section shall not apply (or shall cease to apply) with 
respect to a State upon a determination by the Secretary 
that the method governing computation of regular com-
pensation under the State law of that State has been 
modified in a manner such that the maximum benefit enti-
tlement and the average weekly benefit amount of regular 
compensation (or short-time compensation in the case of 
a State described in subsection (d)(1)(B) which will be 
payable during the period of the agreement (determined 
disregarding any Emergency COVID-19 Unemployment 
Compensation or Emergency COVID-19 Short-time Com-
pensation) will be less than the maximum benefit entitle-
ment and the average weekly benefit amount of regular 
compensation (or short-time compensation) which would 
otherwise have been payable during such period under the 
State law, as in effect on January 1, 2020. 
(f) PAYMENTS TO STATES.— 
(1) IN GENERAL.— 
(A) FULL REIMBURSEMENT.—There shall 
be paid to each State which has entered into an 
agreement under this section an amount equal 
to 100 percent of— 
(i) the total amount of Emergency 
COVID-19 Unemployment Compensation 
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paid to individuals by the State pursuant 
to such agreement; 
(ii) the total amount of Emergency 
COVID-19 Short-Time Compensation paid 
to individuals. By the State pursuant to 
such agreement; and 
(iii) any additional administrative ex-
penses incurred by the State by reason of 
such agreement (as determined by the Sec-
retary). 
(B) TERMS OF PAYMENTS.—Sums payable 
to any State by reason of such State’s having 
an agreement under this section shall be pay-
able, either in advance or by way of reimburse-
ment (as determined by the Secretary), in such 
amounts as the Secretary Estimates that State 
will be entitled to receive under this section for 
each calendar month, reduced or increased, as 
the case may be, by any amount by which the 
Secretary finds that his estimates for any prior 
calendar month were greater or less than the 
amount which should have been paid to the 
State. Such estimates may be made on the 
basis of such statistical, sampling, or other 
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method as may be agreed upon by the Secretary 
and the State agency of the State involved. 
(2) 
CERTIFICATIONS.—The 
Secretary 
shall 
from time to time certify to the Secretary of the 
Treasury for payment to each State the sums pay-
able to such State under this section. 
(3) APPROPRIATION.—There are appropriated 
from the general fund of the Treasury, without fiscal 
year limitation, such sums as may be necessary for 
purposes of this subsection. 
(g) APPLICABILITY.— 
(1) IN GENERAL.—An agreement entered into 
under this section shall apply to weeks of unemploy-
ment— 
(A) beginning on or after March 1, 2020; 
and 
(B) ending on or before January 1, 2021. 
(2) DURATION OF BENEFIT PAYMENTS.—An in-
dividual who becomes entitled to such agreement will 
receive payments from a State or Agency for not 
more than 25 weeks. 
(3) TRANSITION RULE FOR INDIVIDUALS RE-
MAINING ENTITLED TO REGULAR COMPENSATION AS 
OF APRIL 30, 2021.—In the case of any individual 
who, as of the date specified in paragraph (1)(B), 
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has not yet exhausted all rights to regular com-
pensation under the State law of a State with re-
spect to a benefit year that began before such date 
(or short-time compensation in the case of State de-
scribed in subsection (d)(1)(B) Emergency COVID- 
19 Unemployment Compensation or Emergency 
COVID-19 Short-Time Compensation provided for 
in the accordance with paragraph (1) shall be pay-
able to such individual for any week beginning on or 
after such date for which the individual is otherwise 
eligible for regular compensation (or short-time com-
pensation) with respect to such benefit year. 
(4) TERMINATION.—Notwithstanding any other 
provision of this subsection, no Emergency COVID- 
19 Unemployment Compensation or Emergency 
COVID-19 Short-Time Compensation shall be pay-
able for any week beginning after April 30, 2021, 
but Congress has the option to end this program 
earlier or extend it as well. 
(h) FRAUD AND OVERPAYMENTS.— 
(1) IN GENERAL.—If an individual knowingly 
has made, or caused to be made by another, a false 
statement or representation of a material fact, or 
knowingly has failed, or caused another to fail, to 
disclose a material fact, and as a result of such false 
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statement or representation of such nondisclosure 
such individual has received an amount of Emer-
gency COVID-19 Unemployment Compensation or 
Emergency COVID-19 Short-Time Compensation to 
which such individual was not entitled, such indi-
vidual— 
(A) shall be ineligible for further Emer-
gency COVID-19 Unemployment Compensation 
or Emergency COVID-19 Short-Time Com-
pensation in accordance with provisions of the 
applicable State unemployment compensation 
law relating to fraud in connection with a claim 
for unemployment compensation; and 
(B) shall be subject to prosecution under 
section 1001 of title 18, United States Code. 
(2) REPAYMENT.—In the case of individuals 
who have received amounts of Emergency COVID- 
19 Unemployment Compensation or Emergency 
COVID-19 Short-Time Compensation to which they 
were not entitled, the State shall require such indi-
viduals to repay the amounts of such Emergency 
COVID-19 Unemployment Compensation or Emer-
gency COVID-19 Short-Time Compensation to the 
State agency, expect that the State agency may 
waive such repayment if it determines that— 
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(A) the payment of such Emergency 
COVID-19 Unemployment Compensation or 
Emergency COVID-19 Short-Time Compensa-
tion was without fault on the part of any such 
individual; and 
(B) such repayment would be contrary to 
equity and good conscience. 
(3) RECOVERY BY STATE AGENCY.— 
(A) IN GENERAL.—The State agency may 
recover the amount to be repaid, or any part 
thereof, by deductions from any Emergency 
COVID-19 Unemployment Compensation or 
Emergency COVID-19 Short-Time Compensa-
tion payable to such individual or from any un-
employment payable to such individual under 
any State or Federal unemployment compensa-
tion law administered by the State agency or 
under any other State or Federal law adminis-
tered by the State agency which provides for 
the payment of any assistance or allowance with 
respect to any week of unemployment, during 
the 3-year period after the date such individuals 
received 
the 
payment 
of 
the 
Emergency 
COVID-19 Unemployment Compensation or 
Emergency COVID-19 Short-Time Compensa-
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tion to which they were not entitled, in accord-
ance with the same procedures as apply to the 
recovery of overpayments of regular unemploy-
ment benefits paid by the State. 
(B) OPPORTUNITY FOR HEARING.—No re-
payment shall be required, and no deduction 
shall be made, until a determination has been 
made, notice thereof and an opportunity for a 
fair hearing has been given to the individual, 
and the determination has become final. 
(4) REVIEW.—Any determination by a State 
agency under this section shall be subject to review 
in the same manner and to the same extent as deter-
minations under the State unemployment compensa-
tion law, and only in that manner and to that ex-
tent. 
(i) APPLICATION TO OTHER UNEMPLOYMENT BENE-
FITS.— 
(1) IN GENERAL.—Each agreement under this 
section shall include provisions to provide that the 
purposes of the preceding provisions of this section 
shall be applied with respect to unemployment bene-
fits described in section (i)(3) to the same extent 
and in the same manner as if those benefits were 
regular compensation. 
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(2) ELIGIBILITY AND TERMINATION RULES.— 
Emergency COVID-19 Unemployment Compensa-
tion— 
(A) shall not be payable, pursuant to this 
subsection, with respect to any unemployment 
benefits described in subsection (i)(3) for any 
week beginning on or after the date specified in 
subsection (g)(1)(B), except in the case of an 
individual who was eligible to receive Emer-
gency COVID-19 Unemployment Compensation 
in connection with any regular compensation or 
any other unemployment benefits described in 
subsection (i)(3) for any period of unemploy-
ment ending before such date; and 
(B) shall in no event be payable for any 
week beginning after date specified in sub-
section (g)(3). 
(j) TREATMENT OF EMERGENCY COVID-19 UNEM-
PLOYMENT COMPENSATION AND EMERGENCY COVID-19 
SHORT-TIME
COMPENSATION
PAYMENTS.—An Emer-
gency COVID-19 Unemployment Compensation and 
Emergency COVID-19 Short-Time Compensation pay-
ment shall not be regarded as income and shall not be 
regarded as a resource for the money of receipt and the 
following 9 months, for purposes of determining the eligi-
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bility of the recipient (or the recipient’s spouse or family) 
for benefits or assistance, or the amount or extent of bene-
fits or assistance, under any Federal program or under 
any State or local program financed in whole or in part 
with Federal funds. 
(k) DEFINITIONS.—For purposes of this section— 
(1) the terms ‘‘compensation’’, ‘‘regular com-
pensation’’, ‘‘benefit year’’, ‘‘State’’, ‘‘State agency’’, 
‘‘State law’’, and ‘‘week’’ have the respective mean-
ings given such terms under section 205 of the Fed-
eral-State Extended Unemployment Compensation 
Act of 1970 (26 U.S.C. 3304); 
(2) the term ‘‘maximum benefit entitlement’’ 
means the amount of regular compensation payable 
to an individual with respect to the individual’s ben-
efit year; and 
(3) any reference to unemployment benefits de-
scribed in this paragraph shall be considered to refer 
to— 
(A) extended compensation (as defined by 
section 205 of the Federal-State Extended Un-
employment Compensation Act of 1970); and 
(B) unemployment compensation (as de-
fined by section 85(b) of the Internal Revenue 
Code of 1986) provided under any program ad-
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ministered by a State under an agreement with 
the Secretary. 
SEC. 4. EMERGENCY DIRECT COMPENSATION FOR AF-
FECTED ADDITIONAL COVERED ENTITIES. 
(a) IN GENERAL.—The Administrator of the Small 
Business Administration in consultation with the Sec-
retary of the Treasury and the Commissioner of the Inter-
nal Revenue Service, shall provide grants to additional 
covered entities 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))), directly or indirectly, as a re-
sult of the public health emergency declared because of 
COVID-19. 
(b) ADDITIONAL COVERED ENTITY DEFINED.—The 
term ‘‘additional covered entity’’ means— 
(1) a business concern that employs not more 
than 500 employees per physical location of the busi-
ness concern and that is assigned a North American 
Industry Classification System code beginning with 
71; 72; 44; 45; 
(2) a small business concern (as defined under 
section 3 of the Small Business Act (15 U.S.C. 
632)); and 
(3) if such person was in operation on or before 
January 31, 2020— 
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(1) a small business concern that employs not 
more than 100 employees per physical location; 
(2) a minority-owned small business concern, a 
woman-owned small business concern, or a veteran- 
owned small business concern; 
(3) a small business concern where the owner’s 
pay is equal to or less than 25 times the average 
worker pay; or 
(4) a small business concern that has not fired 
or laid off its employees yet, reduced the salaries or 
wages of its employees, or changed any labor con-
tracts, such as collective bargaining rights, for its 
employees in the interim, unless exceptions provided 
within subsection (o)(5) are met. 
(d) SELF-REPORTING IN APPLICATION.—The SBA 
Administrator, in coordination with the IRS Commis-
sioner, shall consider the necessary maintenance costs, as 
established in subsection (l), self-reported by qualifying 
additional covered entities, to determine the sufficient 
amount of grants. An eligible recipient seeking such a 
grant under this section shall submit documentation to the 
SBA and IRS that include— 
(1) documentation verifying the number of full- 
time equivalent employees on payroll and pay rates 
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for the periods described in subsection (d), includ-
ing— 
(A) payroll tax filings reported to the In-
ternal Revenue Service; and 
(B) State income, payroll, and unemploy-
ment insurance filings; 
(2) documentation, including cancelled checks, 
payment receipts, transcripts of accounts, or other 
documents verifying payments on covered mortgage 
obligations, payments on covered lease obligations, 
and covered utility payments; 
(3) a certification from a representative of the 
eligible recipient authorized to make such certifi-
cations that— 
(A) the documentation presented is true 
and correct; and 
(B) the amount for which the grant is re-
quested was used to retain employees, make in-
terest payments on a covered mortgage obliga-
tion, make payments on a covered rent obliga-
tion, or make covered utility payments; and 
(4) any other documentation the SBA Adminis-
trator determines necessary. 
(e) ADDITIONAL PROCESSES.—The SBA Adminis-
trator shall also be able to use the existing direct loan 
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application process administered under section 7(b) of the 
Small Business Act (15 U.S.C. 636(b)) to disburse grant 
funds, to the greatest extent possible, within 7 days after 
receiving an application from an additional covered entity. 
(f) VERIFICATION
OF
ELIGIBILITY.—Before dis-
bursing amounts under this subsection, the SBA Adminis-
trator shall verify that the applicant is an additional cov-
ered entity. 
(g) VERIFICATION
OF AMOUNT.—After disbursing 
amounts under this subsection, the SBA Administrator, 
in consultation with the IRS commissioner, shall verify 
that the requested amount for grants from an additional 
covered entity did not exceed necessary maintenance costs, 
not later than 1 year after the end date or termination 
of this Act. 
(h) OVERPAYMENT.—Excess compensation in the 
form of any overpayment of grants, as examined and de-
termined by the IRS and SBA in post-award reviews, shall 
be automatically considered as zero-interest loans to be 
paid and returned to the United States Government. 
(i) EXEMPTION FROM AFFILIATION RULES.—For 
purposes of this section, the SBA Administrator shall sus-
pend the application of the affiliation rules of the Small 
Business Administration during the period beginning on 
January 31, 2020, and ending on September 30, 2021, 
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expect that individual affiliates may not exceed the current 
small business size standard for the industry in which the 
affiliate operates, and any group of affiliates may not re-
ceive more than 3 times the maximum allowable grant 
amount under subsection (j). 
(j) AMOUNT OF GRANTS.—The amount of a grant 
provided under this section shall not be more than 
$100,000. The SBA Administrator shall have the discre-
tion to increase this cap for certain qualifying additional 
covered entities to ensure meeting 100 percent necessary 
maintenance costs. 
(k) AUTOMATIC MULTIPLE PAYMENTS.—Additional 
covered entities that receive their first grant will automati-
cally be considered for and delivered another grant at the 
same level for at least the next four months, unless self- 
opted out or determined by the SBA Administrator. 
(l) USE OF FUNDS ONLY FOR NECESSARY MAINTE-
NANCE COSTS.—An additional covered entity that receives 
grants under this section may use the grant funds for nec-
essary maintenance costs to address the direct effects of 
the COVID-19 pandemic, including— 
(1) payroll support, including paid sick, med-
ical, or family leave and costs related to the continu-
ation of health care benefits; 
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(2) maintaining payroll to retain employees dur-
ing business disruptions or substantial slowdowns; 
(3) meeting increased costs to obtain materials 
unavailable from the original source of the additional 
covered entity due to interrupted supply chains; 
(4) making payments under a lease or mortgage 
loan, or a contract for utility services, related to a 
place of operation of the additional covered entity; 
(5) repaying obligations that cannot be met due 
to revenue losses; and 
(6) other expenses, as deemed appropriate by 
the Administrator. 
(m) ELIGIBILITY FOR ADDITIONAL ASSISTANCE.— 
An additional covered entity that receives grants under 
this section may also apply for a zero-interest loan under 
subsection (a) or (b) of section 6 of the Small Business 
Act (15 U.S.C. 636). 
(n) TAXABILITY.—Grant amounts, canceled indebt-
edness, and other awards under this section shall be ex-
cluded from gross income for purposes of the Internal 
Revenue Code of 1986. 
(o) LIMITS ON AMOUNT OF GRANTS.— 
(1) REDUCTION BASED ON REDUCTION IN NUM-
BER OF EMPLOYEES.— 
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ees per month employed by the eligible re-
cipient during the beginning on February 
15, 2019, and ending on June 30, 2019. 
(B) CALCULATION OF AVERAGE NUMBER 
OF
EMPLOYEES.—For purposes of subpara-
graph (A), the average number of full-time 
equivalent employees shall be determined by 
calculating the average number of full-time 
equivalent employees for each pay period falling 
with a month. 
(2) REDUCTION
RELATING
TO
SALARY
AND 
WAGES.— 
(A) IN GENERAL.—The amount of grants 
under this section shall be reduced by the 
amount of any reduction in total salary or 
wages of any employee described in subpara-
graph (B) during the covered period that is in 
excess of 25 percent of the total salary or wages 
of the employee during the most recent full 
quarter during which the employee was em-
ployed before the covered period. 
(B) EMPLOYEES
DESCRIBED.—An em-
ployee described in this subparagraph is any 
employee who did not receive, during any single 
pay period during 2019, wages or salary at an 
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annualized rate of pay in an amount more than 
$100,000. 
(3) EXCEPTION FOR TIPPED WORKERS.—An el-
igible recipient with tipped employees described in 
section 3(m)(2)(A) of the Fair Labor Standards Act 
of 1938 (29 U.S.C. 203(m)(2)(A)) may receive for-
giveness for additional wages paid to those employ-
ees. 
(4) INELIGIBILITY AND EXCLUSION FROM FU-
TURE CONSIDERATION OF FUNDS.—The SBA Ad-
ministrator shall consider immediately stopping and 
excluding any future grants for additional covered 
entities that fire their employees during the payment 
period. 
(5) EXCEPTION FOR RE-HIRES.— 
(A) IN GENERAL.—In a circumstance de-
scribed in paragraph (4), the amount of grants 
under this section shall be determined without 
regard to a reduction in the number of full-time 
equivalent employees of an eligible recipient or 
a reduction in the salary of 1 or more employ-
ees of the eligible recipient, as applicable, dur-
ing the period beginning on February 15, 2020, 
and ending on April 1, 2020. 
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(B) CIRCUMSTANCES.—A circumstance de-
scribed 
in 
this 
subparagraph 
is 
a 
cir-
cumstance— 
(i) in which— 
(I) during the period beginning 
on February 15, 2020, and ending on 
April 1, 2020, there is a reduction, as 
compared to February 15, 2020, in 
the number of full-time equivalent em-
ployees of an eligible recipient; and 
(II) not later than June 30, 
2020, the eligible employer has elimi-
nated the reduction in the number of 
full-time equivalent employees; 
(ii) in which— 
(I) during the period beginning 
on February 15, 2020, and ending in 
April 1, 2020, there is a reduction, as 
compared to February 15, 2020, in 
the salary or wages of 1 or more em-
ployees of the eligible recipient; and 
(II) not later than June 30, 
2020, the eligible employer has elimi-
nated the reduction in the salary or 
wages of such employees; or 
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(iii) in which the events described in 
clauses (i) and (ii) occur. 
(p) PROCEDURES.—The SBA Administrator shall es-
tablish procedures, in coordination with the SSA Adminis-
trator and IRS Commissioner, to verify and document the 
compliance of an additional covered entity that receives 
grants under this section with the requirements under this 
section in order to prevent waste, fraud, and abuse of such 
grant funds. 
(q) REGULATIONS.—Not later than 30 days after the 
date of enactment of this Act, the SBA Administrator, in 
consultation with the IRS Commissioner, shall issue guid-
ance and regulations implementing this section. 
(r) REPORT.—Not later than March 31, 2022, the 
SBA Administrator shall submit to Congress a report that 
includes— 
(1) the number of grants made under this sec-
tion, disaggregated by the number of grants made 
per 10,000 amount; 
(2) the average amount of a grant award; 
(3) an analysis of the program established 
under this section and recommendations for im-
provement; 
(4) the average time from receipt of an applica-
tion to approval of grant under this section; and 
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(5) the average time from approval of grant to 
disbursement of grant funds. 
(s) AUTHORIZATIONS OF APPROPRIATIONS.—There 
is authorization to be appropriated $500,000,000,000 of 
the SBA Administrator to carry out this section. Congress 
shall consider increasing funds at the request of the SBA 
Administrator. 
(t) TERMINATION.—The authority to carry out 
grants under this subsection shall terminate on April 30, 
2021. 
Æ 
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