I 
116TH CONGRESS 
2D SESSION 
H. R. 6324 
To amend the Small Business Act to provide no interest rate loans to 
small businesses and non-profit entities impacted by the coronavirus 
(COVID-19), and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 23, 2020 
Mr. PAPPAS (for himself, Mr. ROSE of New York, Ms. KENDRA S. HORN of 
Oklahoma, Ms. NORTON, Mr. CARSON of Indiana, Ms. WILD, Ms. 
MUCARSEL-POWELL, Mr. PANETTA, Mrs. HAYES, Ms. KUSTER of New 
Hampshire, and Ms. PINGREE) introduced the following bill; which was 
referred to the Committee on Small Business 
A BILL 
To amend the Small Business Act to provide no interest 
rate loans to small businesses and non-profit entities 
impacted by the coronavirus (COVID-19), 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 ‘‘Too Small to Fail 
Act’’. 
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SEC. 2. FINANCIAL ASSISTANCE TO SMALL BUSINESSES 
AND NON-PROFIT ENTITIES. 
Section 7 of the Small Business Act (15 U.S.C. 636) 
is amended by adding at the end the following new sub-
section: 
‘‘(k) CORONAVIRUS RELATED LOANS.— 
‘‘(1) IN GENERAL.—The Administration shall 
waive the credit elsewhere requirement of subsection 
(a)(1) for loans to small businesses and non-profit 
entities affected by the coronavirus (COVID-19). 
Such loans shall be provided by the Administration 
at no interest rate. 
‘‘(2) AUTHORIZATION
OF
APPROPRIATIONS.— 
For an additional amount for the ‘Disaster Loans 
Program Account’ for the cost of direct loans au-
thorized by section 7(b) of the Small Business Act 
and 
for 
subsidizing 
interest 
rates, 
$350,000,000,000, to remain available until ex-
pended, except that— 
‘‘(A) not to exceed $225,000,000 may be 
transferred to and merged with ‘Salaries and 
Expenses’ for administrative expenses to carry 
out the disaster loan program authorized by 
section 7(b) of the Small Business Act; and 
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‘‘(B) none of the funds provided under this 
heading may be used for indirect administrative 
expenses. 
‘‘(3) EMERGENCY REQUIREMENT.—The amount 
provided under paragraph (2) is designated as an 
emergency 
requirement 
pursuant 
to 
section 
251(b)(2)(A)(i) of the Balanced Budget and Emer-
gency Deficit Control Act of 1985 and the amount 
designated under such paragraph as an emergency 
requirement 
pursuant 
to 
such 
section 
251(b)(2)(A)(i) shall be available only if the Presi-
dent subsequently so designates such amount and 
transmits such designation to the Congress. 
‘‘(4) SUSPENSION OF PAYMENT.—The Adminis-
tration is authorized to suspend the payment of any 
loan made under this Act to any small business or 
non-profit 
entity 
affected 
by 
the 
coronavirus 
(COVID-19) for a period determined by the Admin-
istration.’’. 
SEC. 3. EMERGENCY EIDL GRANTS. 
(a) EIDL EMERGENCY GRANT.— 
(1) IN GENERAL.—During the covered period, 
an eligible entity that applies for a loan under sec-
tion 7(b)(2) of the Small Business Act (15 U.S.C. 
636(b)(2)) in response to COVID–19 may request 
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that the Administrator provide an advance in the 
amount requested by such applicant (not to exceed 
$15,000) to such applicant within 3 days after the 
Administrator receives an application from such ap-
plicant. 
(2) VERIFICATION.—Before disbursing amounts 
under this subsection, the Administrator shall verify 
that the applicant is an eligible entity. 
(3) USE
OF
FUNDS.—An advance provided 
under this subsection may be used to address any al-
lowable purpose for a loan made under section 
7(b)(2) of the Small Business Act (15 U.S.C. 
636(b)(2)), including— 
(A) providing paid sick leave to employees 
unable to work due to the direct effect of the 
COVID–19; 
(B) maintaining payroll to retain employ-
ees during business disruptions or substantial 
slowdowns; 
(C) meeting increased costs to obtain ma-
terials unavailable from the applicant’s original 
source due to interrupted supply chains; 
(D) making rent or mortgage payments; 
and 
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(E) repaying obligations that cannot be 
met due to revenue losses. 
(4) REPAYMENT.—An applicant shall not be re-
quired to repay any amounts of an advance provided 
under this subsection, even if subsequently denied a 
loan under section 7(b)(2) of the Small Business Act 
(15 U.S.C. 636(b)(2)). 
(5) UNEMPLOYMENT GRANT.—If an applicant 
that receives an advance under this subsection trans-
fers into the loan program under section 7(a) of the 
Small Business Act (15 U.S.C. 636(a)), the advance 
amount shall be considered when determining loan 
forgiveness for a loan for payroll costs made under 
such section 7(a). 
(6) AUTHORIZATION
OF
APPROPRIATIONS.— 
There is authorized to be appropriated to the Small 
Business Administration $10,000,000,000 to carry 
out this subsection. 
(7) TERMINATION.—The authority to carry out 
grants under this subsection shall terminate on De-
cember 31, 2020. 
(b) DEFINITIONS.—In this Act— 
(1) the term ‘‘covered period’’ means the period 
beginning on January 31, 2020, and ending on De-
cember 31, 2020; 
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(2) the term ‘‘eligible entity’’ means— 
(A) a startup with not more than 500 em-
ployees; 
(B) any individual who operates under a 
sole proprietorship or as an independent con-
tractor; 
(C) a cooperative with not more than 500 
employees; or 
(D) an ESOP (as defined in section 3 of 
the Small Business Act (15 U.S.C. 632)) with 
not more than 500 employees; and 
(3) the term ‘‘COVID-19’’ means the virus 
SARS–CoV–2 and the resulting disease COVID-19 
or another coronavirus with pandemic potential. 
Æ 
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