approved to make loans under this 
subsection shall be deemed to have 
been delegated authority by the Ad-
ministrator to make and approve cov-
ered loans, subject to the provisions of 
this paragraph. 
‘‘(II) CONSIDERATIONS.—In eval-
uating the eligibility of a borrower for 
a covered loan with the terms de-
scribed in this paragraph, a lender 
shall consider whether the borrower— 
‘‘(aa) was in operation on 
August 8, 2023; and 
‘‘(bb)(AA) 
had 
employees 
for whom the borrower paid sala-
ries and payroll taxes; or 
‘‘(BB) 
paid 
independent 
contractors, as reported on a 
Form 1099–MISC. 
‘‘(iii) ADDITIONAL
LENDERS.—The 
authority to make loans under this para-
graph shall be extended to additional lend-
ers determined by the Administrator and 
the Secretary of the Treasury to have the 
necessary qualifications to process, close, 
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disburse and service loans made with the 
guarantee of the Administration. 
‘‘(iv) 
REFINANCE.—A 
loan 
made 
under subsection (b)(2) during the period 
beginning on August 8, 2023, and ending 
on the date on which covered loans are 
made available may be refinanced as part 
of a covered loan. 
‘‘(v) 
NONRECOURSE.—Notwith-
standing the waiver of the personal guar-
antee requirement or collateral under sub-
paragraph (J), the Administrator shall 
have no recourse against any individual 
shareholder, member, or partner of an eli-
gible recipient of a covered loan for non-
payment of any covered loan, except to the 
extent that such shareholder, member, or 
partner uses the covered loan proceeds for 
a purpose not authorized under clause (i) 
or (iv). 
‘‘(G) CERTIFICATION.—An eligible recipi-
ent applying for a covered loan shall make a 
good faith certification— 
‘‘(i) that the uncertainty of current 
economic conditions makes necessary the 
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loan request to support the ongoing oper-
ations of the eligible recipient; 
‘‘(ii) acknowledging that funds will be 
used to retain workers and maintain pay-
roll or make mortgage payments, lease 
payments, and utility payments; 
‘‘(iii) that the eligible recipient does 
not have an application pending for a loan 
under this subsection for the same purpose 
and duplicative of amounts applied for or 
received under a covered loan; and 
‘‘(iv) during the covered period, that 
the eligible recipient has not received 
amounts under this subsection for the 
same purpose and duplicative of amounts 
applied for or received under a covered 
loan. 
‘‘(H) FEE
WAIVER.—With respect to a 
covered loan— 
‘‘(i) in lieu of the fee otherwise appli-
cable under paragraph (23)(A), the Ad-
ministrator shall collect no fee; and 
‘‘(ii) in lieu of the fee otherwise appli-
cable under paragraph (18)(A), the Ad-
ministrator shall collect no fee. 
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‘‘(I) CREDIT
ELSEWHERE.—During the 
covered period, the requirement that a small 
business concern is unable to obtain credit else-
where, as defined in section 3(h), shall not 
apply to a covered loan. 
‘‘(J) WAIVER OF PERSONAL GUARANTEE 
REQUIREMENT.—With respect to a covered 
loan— 
‘‘(i) no personal guarantee shall be re-
quired for the covered loan; and 
‘‘(ii) no collateral shall be required for 
the covered loan. 
‘‘(K) MATURITY
FOR
LOANS
WITH
RE-
MAINING
BALANCE
AFTER
APPLICATION
OF 
FORGIVENESS.—With respect to a covered loan 
that has a remaining balance after reduction 
based on the loan forgiveness amount under 
section 4 of the Healing and Economic Ad-
vancement for Local businesses in Maui Act— 
‘‘(i) the remaining balance shall con-
tinue to be guaranteed by the Administra-
tion under this subsection; and 
‘‘(ii) the covered loan shall have a 
maximum maturity of 10 years from the 
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date on which the borrower applies for 
loan forgiveness under that section. 
‘‘(L) INTEREST RATE REQUIREMENTS.—A 
covered loan shall bear an interest rate not to 
exceed 4 percent, calculated on a non- 
compounding, non-adjustable basis. 
‘‘(M) LOAN DEFERMENT.— 
‘‘(i) DEFINITION OF IMPACTED BOR-
ROWER.— 
‘‘(I) IN GENERAL.—In this sub-
paragraph, the term ‘impacted bor-
rower’ means an eligible recipient 
that— 
‘‘(aa) was in operation on 
August 8, 2023; and 
‘‘(bb) has an application for 
a covered loan that is approved 
or pending approval on or after 
the date of the enactment of this 
paragraph. 
‘‘(II) PRESUMPTION.—For pur-
poses of this subparagraph, an im-
pacted borrower is presumed to have 
been adversely impacted by the Ha-
wai’i Wildfires. 
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‘‘(ii) DEFERRAL.—During the covered 
period, the Administrator shall— 
‘‘(I) consider each eligible recipi-
ent that applies for a covered loan to 
be an impacted borrower; and 
‘‘(II) require lenders under this 
subsection to provide complete pay-
ment deferment relief for impacted 
borrowers with covered loans for a pe-
riod of not less than 6 months, includ-
ing payment of principal, interest, and 
fees, and not more than 1 year. 
‘‘(iii) SECONDARY
MARKET.—During 
the covered period, with respect to a cov-
ered loan that is sold on the secondary 
market, if an investor declines to approve 
a deferral requested by a lender under 
clause (ii), the Administrator shall exercise 
the authority to purchase the loan so that 
the impacted borrower may receive a defer-
ral for a period of not less than 6 months, 
including payment of principal, interest, 
and fees, and not more than 1 year. 
‘‘(iv) GUIDANCE.—Not later than 30 
days after the date of enactment of this 
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paragraph, the Administrator shall provide 
guidance to lenders under this paragraph 
on the deferment process described in this 
subparagraph. 
‘‘(N) SECONDARY MARKET SALES.—A cov-
ered loan shall be eligible to be sold in the sec-
ondary market consistent with this subsection. 
The Administrator may not collect any fee for 
any guarantee sold into the secondary market 
under this subparagraph. 
‘‘(O) REGULATORY
CAPITAL
REQUIRE-
MENTS.— 
‘‘(i) RISK WEIGHT.—With respect to 
the appropriate Federal banking agencies 
or the National Credit Union Administra-
tion Board applying capital requirements 
under their respective risk-based capital re-
quirements, a covered loan shall receive a 
risk weight of zero percent. 
‘‘(ii) TEMPORARY RELIEF FROM TDR 
DISCLOSURES.—Notwithstanding any other 
provision of law, an insured depository in-
stitution or an insured credit union that 
modifies a covered loan in relation to 
Hawai‘i Wildfire-related difficulties in a 
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troubled debt restructuring on or after Au-
gust 8, 2023, shall not be required to com-
ply with the Financial Accounting Stand-
ards Board Accounting Standards Codi-
fication Subtopic 310–40 (‘Receivables - 
Troubled Debt Restructurings by Credi-
tors’) for purposes of compliance with the 
requirements of the Federal Deposit Insur-
ance Act (12 U.S.C. 1811 et seq.), until 
such time and under such circumstances as 
the appropriate Federal banking agency or 
the National Credit Union Administration 
Board, as applicable, determines appro-
priate. 
‘‘(P) 
REIMBURSEMENT
FOR
PROC-
ESSING.— 
‘‘(i) IN GENERAL.—The Administrator 
shall reimburse a lender authorized to 
make a covered loan at a rate, based on 
the balance of the financing outstanding at 
the time of disbursement of the covered 
loan, of— 
‘‘(I) the lesser of 50 percent of 
such balance or $2,500 for a covered 
loan of not more than $50,000; 
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‘‘(II) 5 percent for a covered loan 
of more than $50,000 and not more 
than $350,000; 
‘‘(III) 3 percent for a covered 
loan of more than $350,000 and less 
than $2,000,000; and 
‘‘(IV) 1 percent for a covered 
loan of not less than $2,000,000. 
‘‘(ii) FEE LIMITS.—An agent that as-
sists an eligible recipient to prepare an ap-
plication for a covered loan may not collect 
a fee in excess of the limits established by 
the Administrator. If an eligible recipient 
has knowingly retained an agent, such fees 
shall be paid by the eligible recipient and 
may not be paid out of the proceeds of a 
covered loan. A lender shall only be respon-
sible for paying fees to an agent for serv-
ices for which the lender directly contracts 
with the agent. 
‘‘(iii) TIMING.—A reimbursement de-
scribed in clause (i) shall be made not later 
than 5 days after the disbursement of the 
covered loan. 
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‘‘(Q) 
DUPLICATION.—Nothing 
in 
this 
paragraph shall prohibit a recipient of an eco-
nomic injury disaster loan made under sub-
section (b)(2) during the period beginning on 
August 8, 2023, and ending on the date on 
which covered loans are made available that is 
for a purpose other than paying payroll costs or 
any other purpose described in subparagraph 
(F) from receiving assistance under this para-
graph. 
‘‘(R) WAIVER
OF
PREPAYMENT
PEN-
ALTY.—Notwithstanding any other provision of 
law, there shall be no prepayment penalty for 
any payment made on a covered loan.’’. 
(b) SET-ASIDES FOR INSURED DEPOSITORY INSTI-
TUTIONS, CREDIT UNIONS, AND COMMUNITY FINANCIAL 
INSTITUTIONS.— 
(1) INSURED DEPOSITORY INSTITUTIONS AND 
CREDIT UNIONS.—In making loan guarantees under 
paragraph (38) of section 7(a) of the Small Business 
Act (15 U.S.C. 636(a)), the Administrator of the 
Small Business Administration shall guarantee not 
less than $30,000,000,000 in loans made by— 
(A) insured depository institutions with 
consolidated 
assets 
of 
not 
less 
than 
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$10,000,000,000 
and 
less 
than 
$50,000,000,000; and 
(B) credit unions with consolidated assets 
of not less than $10,000,000,000 and less than 
$50,000,000,000. 
(2) 
COMMUNITY
FINANCIAL
INSTITUTIONS, 
SMALL
INSURED
DEPOSITORY
INSTITUTIONS, AND 
CREDIT UNIONS.—In making loan guarantees under 
paragraph (38) of section 7(a) of the Small Business 
Act (15 U.S.C. 636(a)), the Administrator of the 
Small Business Administration shall guarantee not 
less than $30,000,000,000 in loans made by— 
(A) community financial institutions; 
(B) insured depository institutions with 
consolidated 
assets 
of 
less 
than 
$10,000,000,000; and 
(C) credit unions with consolidated assets 
of less than $10,000,000,000. 
(3) DEFINITIONS.—In this subsection, the 
terms ‘‘community financial institution’’, ‘‘credit 
union’’, and ‘‘insured depository institution’’ have 
the 
meanings 
given 
such 
terms 
in 
section 
7(a)(36)(A) of the Small Business Act (15 U.S.C. 
636(a)(36)(A)). 
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(c) COMMITMENTS FOR 7(A) LOANS.—During the pe-
riod beginning on August 8, 2023, and ending on May 
10, 2024— 
(1) the amount authorized for commitments for 
loans authorized under paragraph (38) of section 
7(a) of the Small Business Act (15 U.S.C. 636(a)), 
as added by subsection (a) of this section, shall be 
$400,000,000,000; and 
(2) the amount authorized for commitments for 
general business loans under the heading ‘‘Business 
Loans Program Account’’ in title V of the Financial 
Services and General Government Appropriations 
Act, 2023 (division E of Public Law 117–328) shall 
not apply with respect to the loans described in 
paragraph (1). 
(d) EXPRESS LOANS.—Section 7(a)(31)(D) of the 
Small Business Act (15 U.S.C. 636(a)(31)(D)) is amend-
ed by striking ‘‘$500,000’’ and inserting ‘‘$1,000,000’’. 
SEC. 4. LOAN FORGIVENESS. 
(a) DEFINITIONS.—In this section: 
(1) ADMINISTRATION.—The term ‘‘Administra-
tion’’ means the Small Business Administration. 
(2) ADMINISTRATOR.—The term ‘‘Adminis-
trator’’ means the Administrator of the Small Busi-
ness Administration. 
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(3) COVERED LOAN.—The term ‘‘covered loan’’ 
means— 
(A) a loan of more than $500 made under 
paragraph (1) or (2) of section 7(b) of the 
Small Business Act (15 U.S.C. 636(b)) during 
the period beginning on August 8, 2023, and 
ending on May 10, 2024 in response to the Ha-
wai’i Wildfires; or 
(B) a loan guaranteed under paragraph 
(38) of section 7(a) of such Act (15 U.S.C. 
636(a)), as added by section 3(a). 
(4) COVERED
MORTGAGE
OBLIGATION.—The 
term ‘‘covered mortgage obligation’’ means any in-
debtedness or debt instrument incurred in the ordi-
nary course of business that— 
(A) is a liability of the borrower; 
(B) is a mortgage on real or personal 
property; and 
(C) was incurred before August 8, 2023. 
(5) COVERED
OPERATIONS
EXPENDITURE.— 
The term ‘‘covered operations expenditure’’ has the 
meaning given such term in section 7A(a) of the 
Small Business Act (15 U.S.C. 636m(a)). 
(6) COVERED PERIOD.—The term ‘‘covered pe-
riod’’ means the period— 
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(A) beginning on the date of the origina-
tion of a covered loan; and 
(B) ending on a date selected by the eligi-
ble recipient of the covered loan that occurs 
during the period— 
(i) beginning on the date that is 8 
weeks after such date of origination; and 
(ii) ending on the date that is 24 
weeks after such date of origination. 
(7) COVERED PROPERTY DAMAGE COST.—The 
term ‘‘covered property damage cost’’ means a cost 
related to property damage and vandalism or looting 
due to public disturbances that occurred during the 
period beginning on August 8, 2023, and ending on 
May 10, 2024 that was not covered by insurance or 
other compensation. 
(8) COVERED
RENT
OBLIGATION.—The term 
‘‘covered rent obligation’’ means rent obligated 
under a leasing agreement in force before August 8, 
2023. 
(9) COVERED SUPPLIER COST.—The term ‘‘cov-
ered supplier cost’’ means an expenditure made by 
an entity to a supplier of goods for the supply of 
goods that— 
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(A) are essential to the operations of the 
entity at the time at which the expenditure is 
made; and 
(B) is made pursuant to a contract, order, 
or purchase order— 
(i) in effect at any time before the 
covered period with respect to the applica-
ble covered loan; or 
(ii) with respect to perishable goods, 
in effect before or at any time during the 
covered period with respect to the applica-
ble covered loan. 
(10) COVERED UTILITY PAYMENT.—The term 
‘‘covered utility payment’’ means payment for a 
service for the distribution of electricity, gas, water, 
transportation, telephone, or internet access for 
which service began before August 8, 2023. 
(11) ELIGIBLE RECIPIENT.—The term ‘‘eligible 
recipient’’ means the recipient of a covered loan. 
(12) EXPECTED FORGIVENESS AMOUNT.—The 
term ‘‘expected forgiveness amount’’ means— 
(A) with respect to a covered loan de-
scribed in paragraph (3)(A), the amount of 
principal of such loan that a lender reasonably 
expects a borrower to expend during the cov-
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ered period on costs payable using such covered 
loan under section 7(b) of the Small Business 
Act (15 U.S.C. 636(b)); and 
(B) with respect to a covered loan de-
scribed in paragraph (3)(B), the amount of 
principal of such covered loan that a lender rea-
sonably expects a borrower to expend during 
the covered period on the sum of any— 
(i) payroll costs; 
(ii) payments of interest on any cov-
ered mortgage obligation (which shall not 
include any prepayment of or payment of 
principal on a covered mortgage obliga-
tion); 
(iii) payments on any covered rent ob-
ligation; 
(iv) covered utility payments; 
(v) covered operations expenditures; 
(vi) covered property damage costs; 
and 
(vii) covered supplier costs. 
(13) HAWAI’I WILDFIRES.—The term ‘‘Hawai’i 
Wildfires’’ has the meanings given such term in sec-
tion 2(a). 
(14) PAYROLL COSTS; SEASONAL EMPLOYER.— 
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(A) IN GENERAL.—Except as provided in 
subparagraph (B), the terms ‘‘payroll costs’’ 
and ‘‘seasonal employer’’ have the meanings 
given those terms in section 7(a)(36)(A) of the 
Small Business Act (15 U.S.C. 636(a)(36)(A)). 
(B) PAYROLL
COSTS
EXCLUSIONS.—The 
term ‘‘payroll costs’’ shall not include qualified 
wages taken into account in determining the 
credit allowed under section 2301 of the 
CARES Act (26 U.S.C. 3111 note), qualified 
wages taken into account in determining the 
credit allowed under subsection (a) or (d) of 
section 303 of the Taxpayer Certainty and Dis-
aster Relief Act of 2020 (Public Law 116–260; 
134 Stat. 3075), or premiums taken into ac-
count in determining the credit allowed under 
section 6432 of the Internal Revenue Code of 
1986. 
(15) PRIVATE
SCHOOL.—The term ‘‘private 
school’’ means an institution of higher education (as 
such term is defined in section 101(a) of the Higher 
Education Act of 1965 (20 U.S.C. 1001(a)) that is 
not a public institution. 
(b) FORGIVENESS AND WAIVERS.— 
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(1) PAYROLL LOANS.—A recipient of a covered 
loan described in subsection (a)(3)(B) shall be eligi-
ble for forgiveness of indebtedness on such covered 
loan in an amount equal to the sum of the following 
costs incurred and payments made during the cov-
ered period: 
(A) Payroll costs. 
(B) Any payment of interest on any cov-
ered mortgage obligation (which shall not in-
clude any prepayment of or payment of prin-
cipal on a covered mortgage obligation). 
(C) Any payment on any covered rent obli-
gation. 
(D) Any covered utility payment. 
(E) Any covered operations expenditure. 
(F) Any covered property damage cost. 
(G) Any covered supplier cost. 
(2) DISASTER LOANS.— 
(A) IN GENERAL.—Except as provided by 
subparagraph (B), a recipient of a covered loan 
described in subsection (a)(3)(A) shall, at the 
election of the recipient, be eligible for— 
(i) forgiveness of indebtedness on such 
covered loan in amount equal to the lesser 
of— 
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(I) the amount by which such 
covered loan exceeds $500; and 
(II) $1800; or 
(ii) a waiver of interest charges on 
such covered loan, except that— 
(I) the total amount of interest 
waived under such waiver may not ex-
ceed $1800; and 
(II) such waiver may last not 
more than three years. 
(B) PRIVATE SCHOOLS.—A recipient of a 
covered loan described in subsection (a)(3)(A) 
that is a private school shall, at the election of 
the recipient, be eligible for— 
(i) forgiveness of indebtedness on such 
covered loan as described in subparagraph 
(A)(i); or 
(ii) a waiver of interest and principal 
charges on such covered. 
(c) TREATMENT
OF
AMOUNTS
FORGIVEN
AND 
WAIVED.— 
(1) IN GENERAL.—Amounts which have been 
forgiven under this section shall be considered can-
celed indebtedness by the lender. 
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(2) PURCHASE OF GUARANTEES.—For purposes 
of the purchase of the guarantee for a covered loan 
by the Administrator, amounts which are forgiven 
under this section shall be treated in accordance 
with the procedures that are otherwise applicable to 
a loan guaranteed under section 7(a) of the Small 
Business Act (15 U.S.C. 636(a)). 
(3) REMITTANCES.— 
(A) FORGIVEN AMOUNTS.—Not later than 
90 days after the date on which the amount of 
forgiveness under this section is determined 
with respect to a covered loan described in sub-
section (a)(3)(B), and not later the two weeks 
after the date on which the amount of forgive-
ness under this section is determined with re-
spect to a covered loan described in subsection 
(a)(3)(A), the Administrator shall remit to the 
lender an amount equal to the amount of for-
giveness, plus any interest accrued through the 
date of payment. 
(B) INTEREST WAIVED.—During the pe-
riod interest charges are waived under subpara-
graphs (A)(ii) or (B)(ii) of subsection (b)(2) on 
a covered loan in which any individual or entity 
other than the Administrator is participating, 
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the Administrator shall pay to each individual 
and entity participating in the covered loan the 
interest that, but for such subsection, would be 
owed to such individual or entity at the time 
such interest would be due. 
(4) 
ADVANCE
PURCHASE
OF
COVERED 
LOANS.— 
(A) REPORT.—A lender authorized under 
subsections (a) or (b) of section 7 of the Small 
Business Act (15 U.S.C. 636), or, at the discre-
tion of the Administrator, a third party partici-
pant in the secondary market, may, report to 
the Administrator an expected forgiveness 
amount on a covered loan or on a pool of cov-
ered loans of up to 100 percent of the principal 
on the covered loan or pool of covered loans, re-
spectively. 
(B) PURCHASE.—The Administrator shall 
purchase the expected forgiveness amount de-
scribed in subparagraph (A) as if the amount 
were the principal amount of a loan guaranteed 
under section 7(a) of the Small Business Act 
(15 U.S.C. 636(a)). 
(C) TIMING.—Not later than 15 days after 
the date on which the Administrator receives a 
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report under subparagraph (A), the Adminis-
trator shall purchase the expected forgiveness 
amount under subparagraph (B) with respect to 
each covered loan to which the report relates. 
(d) APPLICATION.— 
(1) 7(A) LOANS.—An eligible recipient seeking 
loan forgiveness with respect to a covered loan de-
scribed in subsection (a)(3)(B) under this section 
shall submit to the lender that is servicing the cov-
ered loan an application, which shall include— 
(A) documentation verifying the number of 
full-time equivalent employees on payroll and 
pay rates to support such loan forgiveness, in-
cluding— 
(i) payroll tax filings reported to the 
Internal Revenue Service; and 
(ii) State income, payroll, and unem-
ployment insurance filings; 
(B) documentation, including cancelled 
checks, payment receipts, transcripts of ac-
counts, purchase orders, orders, invoices, or 
other documents verifying payments on covered 
mortgage obligations, payments on covered rent 
obligations, payments on covered operations ex-
penditures, payments on covered property dam-
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age costs, payments on covered supplier costs, 
payments on covered worker protection expendi-
tures, and covered utility payments; 
(C) a certification from a representative of 
the eligible recipient authorized to make such 
certifications that— 
(i) the documentation presented is 
true and correct; and 
(ii) the amount for which forgiveness 
is requested was used to retain employees, 
make interest payments on a covered mort-
gage obligation, make payments on a cov-
ered rent obligation, make payments on 
covered operations expenditures, make pay-
ments on covered property damage costs, 
make payments on covered supplier costs, 
make payments on covered worker protec-
tion expenditures, or make covered utility 
payments; and 
(D) any other documentation the Adminis-
trator determines necessary. 
(2) DISASTER LOANS.— 
(A) IN
GENERAL.—An eligible recipient 
seeking loan forgiveness with respect to a cov-
ered loan described in subsection (a)(3)(A) 
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under this section shall submit to the appro-
priate entity an application at such time, in 
such manner, and containing such information 
as the Administrator determines appropriate. 
(B) APPROPRIATE ENTITY DEFINED.—In 
this paragraph, the term ‘‘appropriate entity’’ 
means— 
(i) with respect to a covered loan de-
scribed in subsection (a)(3)(A) in which 
the Administrator is participating on a 
guaranteed basis, the lender that is serv-
icing the covered loan; and 
(ii) in all other cases, the Adminis-
trator. 
(e) PROHIBITION ON FORGIVENESS WITHOUT DOCU-
MENTATION.—No eligible recipient shall receive forgive-
ness under this section without submitting the documenta-
tion required under subsection (d). 
(f) DECISION.—Not later than 60 days after the date 
on which a lender or the Administrator receives an appli-
cation under subsection (e) for loan forgiveness under this 
section from an eligible recipient, the lender or the Admin-
istrator, as applicable, shall issue a decision on the appli-
cation. 
(g) HOLD HARMLESS.— 
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(1) RELIANCE.—A lender may rely on any cer-
tification or documentation submitted by an appli-
cant for a covered loan or an eligible recipient or eli-
gible entity receiving a covered loan that— 
(A) is submitted pursuant to all applicable 
statutory requirements, regulations, and guid-
ance related to such covered loan, including 
under subsections (a)(38), as added by section 
3(a) of this Act, and (b) section 7 of the Small 
Business Act (15 U.S.C. 636) and under this 
section; and 
(B) attests that the applicant, eligible re-
cipient, or eligible entity, as applicable, has ac-
curately provided the certification or docu-
mentation to the lender in accordance with the 
statutory requirements, regulations, and guid-
ance described in subparagraph (A). 
(2) NO ENFORCEMENT ACTION.—With respect 
to a lender that relies on a certification or docu-
mentation described in paragraph (1) related to cov-
ered loan, an enforcement action may not be taken 
against the lender, and the lender shall not be sub-
ject to any penalties relating to loan origination or 
forgiveness of the covered loan, if— 
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(A) the lender acts in good faith relating 
to loan origination or forgiveness of the covered 
loan based on that reliance; and 
(B) all other relevant Federal, State, local, 
and other statutory and regulatory require-
ments applicable to the lender are satisfied with 
respect to the covered loan. 
(h) TAX TREATMENT.—For purposes of the Internal 
Revenue Code of 1986— 
(1) no amount shall be included in the gross in-
come of the eligible recipient by reason of forgive-
ness of indebtedness or waivers described in sub-
section (b), 
(2) no deduction shall be denied, no tax at-
tribute shall be reduced, and no basis increase shall 
be denied, by reason of the exclusion from gross in-
come provided by paragraph (1), and 
(3) in the case of an eligible recipient that is a 
partnership or S corporation— 
(A) any amount excluded from income by 
reason of paragraph (1) shall be treated as tax 
exempt income for purposes of sections 705 and 
1366 of the Internal Revenue Code of 1986, 
and 
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(B) except as provided by the Secretary of 
the Treasury (or the Secretary’s delegate), any 
increase in the adjusted basis of a partner’s in-
terest in a partnership under section 705 of the 
Internal Revenue Code of 1986 with respect to 
any amount described in subparagraph (A) 
shall equal the partner’s distributive share of 
deductions resulting from costs giving rise to 
forgiveness described in subsection (b) or from 
charges waived as described in such subsection. 
(i) RULE OF CONSTRUCTION.—The cancellation of 
indebtedness on a covered loan under this section shall not 
otherwise modify the terms and conditions of the covered 
loan. 
(j) REGULATIONS.—Not later than 30 days after the 
date of enactment of this Act, the Administrator shall 
issue guidance and regulations implementing this section. 
SEC. 5. MAUI WILDFIRE PAYCHECK PROTECTION PROGRAM 
LOAN FACILITY. 
The Board of Governors of the Federal Reserve Sys-
tem shall, under section 13(3) of the Federal Reserve Act 
(12 U.S.C. 343(3)), establish a Maui Wildfire Paycheck 
Protection Program Liquidity Facility to provide loans to 
entities making loans guaranteed under the Maui Wildfire 
Paycheck Protection Program. In establishing the require-
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ments for the Maui Wildfire Paycheck Protection Pro-
gram, the Board of Governors shall make the require-
ments as close as practicable to the requirements applica-
ble to the Paycheck Protection Program Liquidity Facil-
ity. 
Æ 
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