(8) APPLICATION.— 
(A) 
AVAILABILITY.—The 
Administrator 
shall make available the application for a cov-
ered loan in the 10 most commonly spoken lan-
guages, other than English, in the United 
States, which shall include Spanish, Mandarin, 
Cantonese, Japanese, and Korean. 
(B) GUIDANCE.—Not later than 15 days 
after the date of enactment of this Act, the Ad-
ministrator and the Secretary shall issue guid-
ance to allow lenders to receive applications for 
covered loans. 
(C) DEADLINE FOR RESPONSE.—A lender 
that receives an application for a covered loan 
shall— 
(i) not later than 2 days after submis-
sion of the application to the Adminis-
trator, notify the applicant that the lender 
submitted the application and provide the 
confirmation number; and 
(ii) not later than 15 days after ap-
proving the application, disburse the funds 
to the applicant. 
(D) FORMAT.—The application for a cov-
ered loan shall be similar to the application 
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used for a loan made under section 7(a)(36) of 
the Small Business Act (15 U.S.C. 636(a)(36)), 
with additional details requested by the Admin-
istrator as necessary. 
(E) APPLICATION WINDOWS.—The Admin-
istrator shall make efforts to ensure that under-
served borrowers that are eligible recipients re-
ceive covered loans, including by establishing 
exclusive application windows for those eligible 
recipients. 
(9) LIMITATION ON NUMBER OF LOANS.—An 
eligible recipient may receive not more than 2 cov-
ered loans, the requested aggregate amount of which 
shall not exceed the limitation on covered loan 
amounts described in paragraph (2)(A). 
(10) WAIVER OF PREPAYMENT PENALTY.—Not-
withstanding any other provision of law, there shall 
be no prepayment penalty for any payment made on 
a covered loan. 
(11) UNITED STATES OPERATIONS.—A covered 
loan may only be used for expenses which are— 
(A) properly allocable to the production of 
income from sources within the United States 
(as determined under rules similar to the rules 
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of part I of subchapter N of the Internal Rev-
enue Code of 1986), and 
(B) effectively connected (as determined 
under rules similar to the rules section 952 of 
such Code) with the conduct by the eligible re-
cipient of a trade or business within the United 
States (or any territory or possession of the 
United States) or off the coastline of the 
United States, including State submerged lands 
and territorial sea and exclusive economic zones 
owned by a United States entity. 
(e) LENDERS.— 
(1) EXISTING PPP LENDERS.—A lender that is 
approved to make loans under section 7(a)(36) of 
the Small Business Act (15 U.S.C. 636(a)(36)) and 
is approved by the Administrator and the Secretary 
may make and approve covered loans. 
(2) ADDITIONAL LENDERS.—The authority to 
make covered loans shall be extended to additional 
lenders determined by the Administrator and the 
Secretary to have the necessary qualifications to 
process, close, disburse, and service loans made with 
the guarantee of the Administration. 
(3) LENDERS
SERVING
UNDERSERVED
BOR-
ROWERS.—In approving lenders to make covered 
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loans, the Administrator and the Secretary shall give 
priority to lenders that are community development 
financial institutions with lower lending volumes, mi-
nority depository institutions, mission-based non-
profit lenders, nonbank lenders, and other financial 
institutions that disproportionately serve under-
served borrowers. 
(4) RESALE OF LOANS.—A lender of a covered 
loan may sell the covered loan to a third party. 
(5) SALE
OF
PARTICIPATION
IN
COVERED 
LOANS.—A lender of a covered loan may sell a par-
ticipation in the covered loan to a non-authorized 
lender in an amount that is not more than 85 per-
cent of the covered loan. 
(6) AGENT DISCLOSURE.—In order to be eligi-
ble to obtain a fee, any agent shall be disclosed to 
the lender and the Administrator at the time of ap-
plication for a covered loan. 
(7) CAPITAL AND LIQUIDITY REQUIREMENTS.— 
Until December 31, 2021, the amount of a covered 
loan made by a lender shall be disregarded by Fed-
eral regulators for the purpose of calculating regu-
latory capital and liquidity requirements. 
(f) BORROWER REQUIREMENTS.— 
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(1) CERTIFICATION.—An eligible recipient ap-
plying for a covered loan shall submit a good faith 
certification that the eligible recipient suffered a de-
cline in gross receipts of not less than 25 percent— 
(A) during an 8-week period during the pe-
riod beginning on February 1, 2020, and end-
ing on July 31, 2020, relative to— 
(i) an 8-week period during the period 
beginning on January 1, 2020, and ending 
on March 31, 2020; or 
(ii) a comparable 8-week period in 
2019; or 
(B) during a calendar or fiscal quarter 
during the period beginning on February 15, 
2020, and ending on July 31, 2020, relative to 
the same calendar or fiscal quarter in 2019. 
(2) ACCOUNTING METHOD.—An eligible recipi-
ent may calculate the decline in gross receipts de-
scribed in paragraph (1) using the cash or accrual 
accounting method. 
(3) ADJUSTMENTS.—The Administrator, in 
consultation with the Secretary, shall provide guid-
ance on appropriate adjustments to the terms under 
this subsection for eligible recipients seeking a cov-
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ered loan that are fiscal year taxpayers or seasonal 
businesses. 
(4) RESTRICTIONS.— 
(A) IN GENERAL.—The Administrator may 
enter into agreements to guarantee covered 
loans made to eligible recipients only if the Ad-
ministrator determines that the agreement pro-
vides that, until the date that is 12 months 
after the date on which the covered loan is no 
longer outstanding— 
(i) the eligible recipient or an affiliate 
of the eligible recipient shall not purchase 
an equity security that is listed on a na-
tional securities exchange of the eligible re-
cipient or any parent company of the eligi-
ble recipient, except to the extent required 
under a contractual obligation in effect as 
of the date of enactment of this Act; 
(ii) the eligible recipient shall not pay 
dividends or make other capital distribu-
tions with respect to the common stock of 
the eligible recipient; and 
(iii) the restrictions on certain em-
ployee compensation described in section 
4004(a) of the CARES Act (Public Law 
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116–136) apply to officers and employees 
of the eligible recipient. 
(B) EXCEPTIONS.— 
(i) DIVIDENDS.— 
(I) REAL
ESTATE
INVESTMENT 
TRUSTS.—Subparagraph (A)(ii) shall 
not apply to any eligible recipient that 
is a real estate investment trust (as 
defined under section 856 of the In-
ternal Revenue Code of 1986) for the 
taxable year in which the distribution 
is made to the extent that such entity 
distributes no more than 100 percent 
of real estate investment trust taxable 
income 
(as 
defined 
in 
section 
857(b)(2) of such Code, determined 
without regard to the deduction for 
dividends paid (as defined in section 
561 of such Code)) during such tax-
able year. 
(II) REGULATED
INVESTMENT 
COMPANIES.—Subparagraph 
(A)(ii) 
shall not apply to any eligible recipi-
ent that is a regulated investment 
company (as defined under section 
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851 of the Internal Revenue Code of 
1986) for the taxable year in which 
the distribution is made to the extent 
that such entity distributes no more 
than 100 percent of investment com-
pany taxable income (as defined in 
section 852(b)(2) of such Code, deter-
mined without regard to the deduction 
for dividends paid (as defined in sec-
tion 561 of such Code)) during such 
taxable year. 
(ii) 
DISTRIBUTIONS.—Notwith-
standing subparagraph (A), during the pe-
riod described in that subparagraph an eli-
gible recipient that is an S-corporation or 
a limited liability company may provide a 
distribution to pay income taxes. 
(5) EMERGENCY RELIEF FUNDS.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), an eligible recipient applying 
for a covered loan may not receive or have re-
ceived any assistance under 4003 of the 
CARES Act (Public Law 116–136) for any 
purpose. 
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(B) RETURN OF FUNDS.—An eligible re-
cipient that received assistance under section 
4003 of the CARES Act (Public Law 116–136) 
may apply for a covered loan if the eligible re-
cipient returns the funds received under such 
section 4003. 
(6) BUSINESS CONCERNS WITH MORE THAN 1 
PHYSICAL LOCATION.—A business concern that em-
ploys not more than 500 full-time employees per 
physical location of the business concern and that is 
assigned a North American Industry Classification 
System code beginning with 72 at the time of dis-
bursal shall be eligible to receive a covered loan of 
not more than $25,000,000 if the number of full- 
time employees, in the aggregate, does not exceed 
5,000. 
(7) WAIVER OF AFFILIATION RULES.— 
(A) IN GENERAL.—The provisions applica-
ble to affiliations under section 121.103 of title 
13, Code of Federal Regulations, or any suc-
cessor regulation, are waived with respect to eli-
gibility for a covered loan for— 
(i) any eligible recipient with not more 
than 500 full-time employees that is as-
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signed a North American Industry Classi-
fication System code beginning with 72; 
(ii) any eligible recipient operating as 
a franchise; 
(iii) any eligible recipient that receives 
financial assistance from a company li-
censed under section 301 of the Small 
Business Investment Act of 1958 (15 
U.S.C. 681); and 
(iv) any eligible recipient with not 
more than 500 full-time employees that is 
not more than 50 percent owned or con-
trolled by another entity. 
(B) CONTROL.—For purposes of this para-
graph, the term ‘‘control’’, with respect to an 
eligible recipient, shall include— 
(i) the possession, direct or indirect, 
of the power to vote not less than 50 per-
cent of the voting equity in the eligible re-
cipient; 
(ii) ownership, direct or indirect, of 
not less than 50 percent of the equity in-
terests in the eligible recipient; and 
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(iii) direct or indirect control over the 
management of affairs of the eligible re-
cipient. 
(8) CALCULATION
OF
FULL-TIME
EMPLOY-
EES.—For purposes of determining the number of 
full-time employees of an eligible recipient as of Feb-
ruary 15, 2020— 
(A) any employee working not fewer than, 
at the election of the eligible recipient, an aver-
age of 30 hours per week during the preceding 
3-month period or 30 hours during the pre-
ceding pay period shall be considered a full-time 
employee; and 
(B) any employee working not fewer than 
10 hours and fewer than 30 hours per week 
shall be counted as one-half of a full-time em-
ployee. 
(9) CREDIT ELSEWHERE.—During the covered 
period, an eligible recipient is not required to show 
that the eligible recipient is unable to obtain credit 
elsewhere, as defined in section 3(h) of the Small 
Business Act (15 U.S.C. 632(h)). 
(10) SUBORDINATION.—Any covered loan made 
to an eligible recipient shall be subordinate to any 
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liability incurred by the eligible recipient before Feb-
ruary 15, 2020. 
(11) 
RESTRICTIONS
FOR
PRIOR
BANK-
RUPTCY.—A lender may deny an application for a 
covered loan submitted by an eligible recipient if, 
during the 7-year period preceding the date of the 
application, the eligible recipient or a person that 
owns or controls the eligible recipient filed a petition 
for bankruptcy under chapter 7 or 13 of title 11, 
United States Code. 
(g) USE OF FUNDS.— 
(1) IN
GENERAL.—An eligible recipient of a 
covered loan may use the proceeds for allowable ex-
penses described in paragraph (2). 
(2) ALLOWABLE EXPENSES.—The expenses de-
scribed in this paragraph are— 
(A) payroll costs for employees and fur-
loughed employees, including— 
(i) costs for continuation coverage 
provided pursuant to part 6 of subtitle B 
of title I of the Employee Retirement In-
come Security Act of 1974 (other than 
under section 609), title XXII of the Pub-
lic Health Service Act, section 4980B of 
the Internal Revenue Code of 1986 (other 
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than subsection (f)(1) of such section inso-
far as it relates to pediatric vaccines), or 
section 8905a of title 5, United States 
Code, or under a State program that pro-
vides comparable continuation coverage, 
other than coverage under a health flexible 
spending arrangement under a cafeteria 
plan within the meaning of section 125 of 
the Internal Revenue Code of 1986; or 
(ii) any other non-cash benefit; 
(B) rent; 
(C) utilities; 
(D) scheduled mortgage interest payments 
on existing mortgages as of February 15, 2020; 
(E) scheduled interest payments on other 
scheduled debt as of February 15, 2020; 
(F) costs related to personal protective 
equipment, which shall include N95 masks and 
authorized equivalent respirator masks, surgical 
masks, exam gloves, face shields, head covers, 
isolation gowns, and coveralls; 
(G) payments of principal on outstanding 
loans as of February 15, 2020, not including 
the prepayment of any obligation for a period 
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in excess of a month unless the payment for 
such period is customarily due in advance; 
(H) payments of principal on outstanding 
loans; 
(I) payments made to independent contrac-
tors, as reported on Internal Revenue Service 
Form–1099 NEC; 
(J) other ordinary and necessary business 
expenses, including— 
(i) settling existing debts owed to ven-
dors and replenishing inventory; 
(ii) franchise fees; 
(iii) management fees paid to third 
parties on an arm’s length basis; 
(iv) maintenance expenses; 
(v) administrative costs; 
(vi) taxes; 
(vii) operating leases; and 
(viii) any other capital expenditure or 
expense required under any State, local, or 
Federal law or guideline related to social 
distancing as a result of COVID–19. 
(3) PROHIBITED EXPENSES.—An eligible recipi-
ent may not use the proceeds of a covered loan— 
(A) to purchase real estate; 
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(B) for payments of interest or principal 
on loans originated after February 15, 2020; 
(C) to invest or re-lend funds; 
(D) for contributions or expenditures to, or 
on behalf of, any political party, party com-
mittee, or candidate for elective office; 
(E) for expenses related to any acquisition 
or divestiture; or 
(F) for any other use as may be prohibited 
by the Administrator. 
(h) LOAN DISBURSAL.— 
(1) INITIAL DISBURSAL.—During the initial 14- 
day period in which lenders make and approve cov-
ered loans, the lenders shall be limited to making 
covered loans to eligible recipients— 
(A) with fewer than 50 full-time employees 
for the first 7-day period; and 
(B) with fewer than 500 full-time employ-
ees for the second 7-day period. 
(2) REPORT.—Not later than the later of the 
date that is 180 days after the date on which 
amounts made available to carry out this Act are ex-
pended or July 31, 2021, the Inspector General of 
the Administration shall submit to Congress a report 
evaluating whether small business concerns (as de-
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pamtmann on DSKBC07HB2PROD with BILLS
fined in section 3 of the Small Business Act (15 
U.S.C. 632)), minority-owned eligible recipients, and 
other underserved borrowers are treated fairly in the 
process of making and approving covered loans. 
(3) REQUIREMENT TO DRAW FUNDS.—An eligi-
ble recipient shall draw all covered loan proceeds not 
later than March 31, 2021. 
(i) MATURITY FOR LOANS WITH REMAINING BAL-
ANCE AFTER APPLICATION FOR FORGIVENESS.—With re-
spect to a covered loan that has a remaining balance after 
a reduction based on the loan forgiveness amount under 
subsection (j)— 
(1) the remaining balance shall continue to be 
guaranteed by the Administration under this section; 
and 
(2) the covered loan shall have a maximum ma-
turity of 7 years beginning on the date of the origi-
nation of the covered loan. 
(j) LOAN FORGIVENESS.— 
(1) IN
GENERAL.—Except as otherwise pro-
vided in this subsection, an eligible recipient of a 
covered loan that is not a nonprofit organization and 
submits an application not later than December 31, 
2023, shall be eligible for forgiveness for expenses 
described in subparagraphs (A) through (F) of sub-
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section (g)(2) incurred during the covered period 
using proceeds of the covered loan in an amount 
equal to the product obtained by multiplying— 
(A) the product obtained by multiplying— 
(i) the percentage decline in gross re-
ceipts of the eligible recipient— 
(I) if the covered period does not 
extend past March 31, 2021, between 
the total gross receipts received by the 
business during calendar year 2020 
and the total gross receipts received 
by the business during calendar year 
2019; 
(II) between the total gross re-
ceipts received by the business during 
the 6-month period following the date 
of the origination of the covered loan 
and the total gross receipts received 
by the business during a comparable 
6-month period during the 12-month 
period preceding the date of the origi-
nation of the covered loan; or 
(III) if the covered period ex-
tends past March 31, 2021, between 
the total gross receipts received by the 
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business during the covered period 
and the total gross receipts received 
by the business during a comparable 
period; and 
(ii) .90; and 
(B)(i) for an eligible recipient with not 
more than 500 full-time employees as of Feb-
ruary 15, 2020, the sum of the expenses of the 
eligible recipient described in subparagraphs 
(A) through (F) of subsection (g)(2) paid dur-
ing the covered period; or 
(ii) for an eligible recipient with more than 
500 and not more than 5,000 full-time employ-
ees as of February 15, 2020, the sum of— 
(I) the benefits described in clauses 
(i) and (ii) of subsection (g)(2)(A) of this 
section and the payments described in 
subitems (CC) through (GG) of section 
7(a)(36)(A)(viii)(I)(aa) of the Small Busi-
ness 
Act 
(15 
U.S.C. 
636(a)(36)(A)(viii)(I)(aa)) that were paid 
during the covered period; and 
(II) the expenses described in sub-
paragraphs (B) through (F) of subsection 
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