Title: COVID–19 Recovery Grants for Small Businesses Act
Policy area: Commerce

Summary:
COVID-19 Recovery Grants for Small Businesses Act
This bill requires the Small Business Administration to provide economic injury grants to certain small businesses, private nonprofit organizations, and small agricultural cooperatives that have suffered a substantial economic injury as a result of COVID-19 (i.e., coronavirus disease 2019).

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3518 Introduced in Senate (IS)]

<DOC>






116th CONGRESS
  2d Session
                                S. 3518

    To provide grants to small business concerns, private nonprofit 
 organizations, and small agricultural cooperatives affected by COVID-
                      19, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 18, 2020

  Mr. Cardin (for himself and Ms. Cantwell) introduced the following 
   bill; which was read twice and referred to the Committee on Small 
                     Business and Entrepreneurship

_______________________________________________________________________

                                 A BILL


 
    To provide grants to small business concerns, private nonprofit 
 organizations, and small agricultural cooperatives affected by COVID-
                      19, 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 ``COVID-19 Recovery Grants for Small 
Businesses Act''.

SEC. 2. DEFINITIONS.

    In this Act--
            (1) the terms ``Administration'' and ``Administrator'' mean 
        the Small Business Administration and the Administrator 
        thereof;
            (2) the term ``eligible small business concern'' means a 
        small business concern that--
                    (A) meets the applicable size standard established 
                under section 3 of the Small Business Act (15 U.S.C. 
                632);
                    (B) has not less than 2 employees and not more than 
                50 employees;
                    (C) due to the effects of COVID-19, suffered--
                            (i) a loss of revenue in 1 month greater 
                        than 50 percent as compared to the same month 
                        in the previous year; or
                            (ii) in the case of a business concern that 
                        has been in operation for not less than 4 
                        months, a loss of revenue in 1 month greater 
                        than 50 percent as compared to the average of 
                        the 3 previous months;
                    (D) can demonstrate an inability to pay obligations 
                or stay up-to-date on accounts or payroll; and
                    (E) submitted an application for a loan under 
                section 7(b)(2) of the Small Business Act (15 U.S.C. 
                636(b)(2)) and was denied assistance under such section 
                because the small business concern is unable to repay 
                the loan; and
            (3) the term ``small business concern'' has the meaning 
        given the term in section 3 of the Small Business Act (15 
        U.S.C. 632).

SEC. 3. ECONOMIC INJURY GRANTS.

    (a) Grants.--The Administration shall provide assistance to 
eligible small business concerns, private nonprofit organizations, and 
small agricultural cooperatives that have suffered a substantial 
economic injury, directly or indirectly, as a result of COVID-19.
    (b) Awarding of Grants and Updates.--The Administration shall--
            (1) award grants under this section as expeditiously as 
        possible; and
            (2) on a monthly basis until the date on which the 
        authority under this section terminates, update the Committee 
        on Small Business and Entrepreneurship and the Committee on 
        Appropriations of the Senate and the Committee on Small 
        Business and the Committee on Appropriations of the House of 
        Representatives on--
                    (A) the number of grants awarded under this 
                section; and
                    (B) the geographic distribution of the grants by 
                State and county.
    (c) Amount of Grant.--
            (1) In general.--Except as provided in paragraph (2), a 
        grant provided under this section shall be in an amount that is 
        not more than $50,000.
            (2) Increased grant amount.--The Administrator may make a 
        grant under this section of not more than $100,000 if the 
        Administrator demonstrates that doing so is necessary to assist 
        eligible small business concerns, private nonprofit 
        organizations, and small agricultural cooperatives that the 
        Administrator determines are vital to their local economies.
            (3) Single award.--No eligible small business concern, 
        private nonprofit organization, or small agricultural 
        cooperative may receive or directly benefit from more than 1 
        award made under this section.
    (d) Use of Funds.--An eligible small business concern, private 
nonprofit organization, or small agricultural cooperative that receives 
a grant under this section may use the grant funds to address the 
effects of COVID-19 through any of the permissible uses of funds under 
section 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2)).
    (e) Application.--
            (1) In general.--An eligible small business concern, 
        private nonprofit organization, or small agricultural 
        cooperative desiring a grant under this section shall submit to 
        the Administration an application at such time, in such manner, 
        and containing such information as the Administration may 
        require.
            (2) Priority.--The Administrator shall--
                    (A) establish selection criteria to ensure that 
                eligible small business concerns, private nonprofit 
                organizations, and small agricultural cooperatives that 
                are hardest hit by the effects of COVID-19 receive 
                priority in the event that funding is not sufficient to 
                provide grants to all that submit applications under 
                paragraph (1);
                    (B) identify industry sectors for prioritization 
                that have suffered uniquely and disproportionately from 
                COVID-19; and
                    (C) give priority to an applicant proposing to use 
                grant funds for--
                            (i) providing paid sick leave to employees 
                        unable to work due to the direct effects of 
                        COVID-19;
                            (ii) maintaining payroll to retain 
                        employees during business disruptions or 
                        substantial slowdowns;
                            (iii) making rent and mortgage payments; or
                            (iv) repaying obligations that cannot be 
                        met due to revenue losses.
    (f) Procedures.--The Administrator shall establish procedures to 
discourage and prevent waste, fraud, and abuse by applicants and 
recipients of grants under this section.
    (g) Penalties for Fraud and Misapplication of Funds.--Any applicant 
or recipient of a grant provided under this section shall be subject to 
all applicable provisions of Federal law, including section 1001 of 
title 18, United States Code, and the provisions of section 123.9 of 
title 13, Code of Federal Regulations, or any successor regulation, 
relating to the misapplication of loan proceeds shall apply to grants 
provided under this section to the same extent as if those grants were 
loans provided under section 7(b)(2) of the Small Business Act (15 
U.S.C. 636(b)(2)).
    (h) Inspector General Audit.--Not later than 180 days after the 
date on which the Administrator begins to provide assistance under this 
section, the Inspector General of the Administration shall--
            (1) conduct an audit of grants made under this section, 
        which shall identify any discrepancies or irregularities in the 
        grants; and
            (2) submit to the Committee on Small Business and 
        Entrepreneurship and the Committee on Appropriations of the 
        Senate and the Committee on Small Business and the Committee on 
        Appropriations of the House of Representatives a copy of the 
        audit conducted under paragraph (1).
    (i) Authorization of Appropriations.--There is authorized to be 
appropriated such sums as may be necessary to carry out this section.
    (j) Termination.--The authority to carry out grants under this 
section shall terminate on September 30, 2021.
                                 <all>