Border Business COVID–19 Rescue Act
Bill: H.R.399 | Sponsor: Rep. Grijalva, Raúl M. (D-AZ)
Policy area: Commerce

Summary:
Border Business COVID-19 Rescue Act
This bill establishes and provides funding for a program whereby the Small Business Administration (SBA) must make loans to border businesses directly impacted by COVID-19 (i.e., coronavirus disease 2019). A border business is any entity, otherwise eligible for an SBA disaster loan, that (1) has its principal office in the United States, (2) has annual revenue of up to $500,000, and (3) is located within 25 miles of the U.S. border.
The SBA shall make loans of up to $500,000 to border businesses, and these loans must have a zero percent interest rate. Loan recipients must use the funds to mitigate the effects of COVID-19 on their business, including by (1) providing paid sick leave to employees unable to work because of the pandemic, (2) making rent or mortgage payments, (3) purchasing personal protective equipment, or (4) paying for logistical expenses associated with border closures due to the pandemic.
Recipients may also request an advance on the loan, which shall not be less than $10,000. Further, certain recipients may be forgiven up to 100% of the loan, less any amount received under other specified COVID-19 economic relief programs.

To direct the Administrator of the Small Business Administration to 
establish a forgivable economic injury disaster loan program for small 
business concerns located near the United States border, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Border Business COVID-19 Rescue 
Act''.

SEC. 2. BORDER BUSINESS ECONOMIC INJURY DISASTER LOAN.

    (a) Border Business Economic Injury Disaster Loan Program.--
            (1) In general.--The Administrator of the Small Business 
        Administration shall carry out a program to make loans to 
        border businesses directly impacted by the COVID-19 pandemic.
            (2) Application.--A border business desiring a loan under 
        this subsection shall submit to the Administrator an 
        application at such time, in such place, and containing such 
        information as the Administrator determines necessary.
            (3) Terms.--
                    (A) Amount; interest rate.--A loan made under this 
                subsection shall be in an amount less than or equal to 
                $500,000 and have an interest rate equal to zero 
                percent.
                    (B) Waiver of certain requirements.--With respect 
                to a loan made under this subsection, the Administrator 
                shall waive--
                            (i) any rules related to a personal 
                        guarantee for loans of less than $200,000;
                            (ii) any requirement that an applicant 
                        exhaust other loan options before applying for 
                        a loan under this subsection; and
                            (iii) any requirement that an applicant 
                        needs to be in business for the 1-year period 
                        before March 13, 2020, except that no waiver 
                        may be made for a border business that was not 
                        in operation on or before January 31, 2020.
            (4) Use of funds.--A border business that receives a loan 
        under this subsection shall use loan proceeds to--
                    (A) provide paid sick leave to employees unable to 
                work as a direct effect of the COVID-19 pandemic;
                    (B) maintain payroll to retain employees during 
                business disruptions or substantial slowdowns caused by 
                the COVID-19 pandemic;
                    (C) meet increased costs to obtain materials from 
                other sources due to interrupted supply chains caused 
                by the COVID-19 pandemic;
                    (D) make rent or mortgage payments;
                    (E) purchase personal protective equipment;
                    (F) repay obligations that cannot be met due to 
                revenue losses; and
                    (G) pay for logistical expenses associated with 
                border closures due to the COVID-19 pandemic.
    (b) Approval and Ability To Repay.--With respect to a loan made 
under subsection (a), the Administrator may--
            (1) approve an applicant based solely on the credit score 
        of the applicant and shall not require an applicant to submit a 
        tax return or a tax return transcript for such approval; or
            (2) use an alternative appropriate method to determine an 
        applicant's ability to repay.
    (c) Forgiveness and Repayment.--
            (1) Forgiveness.--The Administrator shall select from among 
        applicants for a loan under subsection (a) a number of 
        recipients of such loan for which the Administrator shall 
        forgive up to 100 percent of such loan, less the amount the 
        borrower received from--
                    (A) any other loan forgiveness program, including 
                any program established under the CARES Act (Public Law 
                116-136); and
                    (B) an advance received under section 1110 of the 
                CARES Act (15 U.S.C. 9009).
            (2) Repayment.--With respect to a loan recipient not 
        selected for forgiveness of such loan under paragraph (1), the 
        Administrator shall establish the repayment terms with respect 
        to each such loan, except that such repayment may not begin 
        before the date that is 1 year after the date on which such 
        loan is made.
    (d) Loan Advance.--
            (1) In general.--A border business that applies for a loan 
        under subsection (a) may request that the Administrator provide 
        an advance in the amount requested by such applicant to such 
        applicant not later than three days after receipt of such 
        request. Such amount shall not be less than $10,000.
            (2) Verification.--Before disbursing amounts under this 
        subsection, the Administrator shall verify that the applicant 
        is a border business by accepting a self-certification from the 
        applicant under penalty of perjury pursuant to section 1746 of 
        title 28, United States Code.
            (3) Use of funds.--An advance provided under this 
        subsection may be used to for any purpose described under 
        subsection (a)(4).
            (4) Repayment.--An applicant shall not be required to repay 
        any amounts of an advance provided under this subsection, even 
        if such applicant is subsequently denied a loan under 
        subsection (a).
    (e) Other Benefits.--Receipt of an advance under subsection (d) or 
loan under subsection (a) shall not be construed as to prohibit receipt 
of any other Federal grant, loan, or aid.
    (f) Taxability.--For purposes of the Internal Revenue Code of 
1986--
            (1) any amount which would be includible in gross income of 
        the border business by reason of forgiveness described in 
        subsection (d) shall be excluded from gross income; and
            (2) any amount received under this section shall be 
        excluded from gross income.
    (g) Direct Appropriation.--There is appropriated, out of any 
amounts in the Treasury not otherwise appropriated, $1,000,000,000, to 
remain available until December 31, 2021, to carry out the requirements 
of this Act.
    (h) Definitions.--In this section:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Small Business Administration.
            (2) Border business.--The term ``border business'' means an 
        entity eligible for a loan under section 7(b)(2) of the Small 
        Business Act (15 U.S.C. 636(b)(2)) that--
                    (A) has its principal office located in the 
                contiguous United States;
                    (B) has estimated or actual annual average gross 
                receipts less than or equal to $500,000; and
                    (C) is located within 25 miles of the United States 
                border.
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