Title: To establish the Small Business Economic Assistance Program.
Policy area: Commerce

Summary:
This bill establishes the Small Business Economic Assistance Program to provide financial assistance to certain small businesses.
Among other eligibility requirements, a small business must have (1) more than 1 but fewer than 50 employees, (2) not received a payment under the Paycheck Protection Program, and (3) been established prior to January 1, 2020.
Such assistance shall consist of a financial assistance payment equal to $5,000 per employee, at least 80% of which the recipient shall use for employee compensation. The remaining amounts shall be used for business costs such as rent, mortgage payments, or utility payments.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7522 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 7522

      To establish the Small Business Economic Assistance Program.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              July 9, 2020

 Mr. Gallego introduced the following bill; which was referred to the 
                      Committee on Small Business

_______________________________________________________________________

                                 A BILL


 
      To establish the Small Business Economic Assistance Program.

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

SECTION 1. SMALL BUSINESS ECONOMIC ASSISTANCE PROGRAM.

    (a) Establishment.--The Secretary of the Treasury shall establish 
the Small Business Economic Assistance Program to provide financial 
assistance to each covered entity.
    (b) Assistance.--Subject to subsection (d), the Secretary shall 
provide each covered entity a financial assistance payment equal to 
$5,000 per employee of that covered entity. Such assistance may not be 
treated as taxable income, and expenses of a covered entity that arise 
from such assistance shall be eligible for any otherwise applicable tax 
deduction.
    (c) Purpose.--
            (1) A covered entity that receives assistance under 
        subsection (b) shall use at least 80 percent of the assistance 
        under subsection (b) for employee compensation, and the balance 
        for business costs (including rent, mortgage payments, or 
        utility payments).
            (2) The Secretary shall treat any portion of a payment of 
        assistance under subsection (b) not used pursuant to paragraph 
        (1) as a loan--
                    (A) subject to an interest rate the Secretary 
                determines to be low; and
                    (B) that the covered entity shall repay not later 
                than one year after the Secretary makes such payment.
    (d) Opt-Out.--A covered entity may elect in writing not to receive 
financial assistance under subsection (b).
    (e) Distribution.--The Secretary shall distribute payments under 
subsection (b) based on information in the Electronic Federal Tax 
Payment System.
    (f) Fraud.--All documents relating to the program under this 
section shall be subject to section 1001 of title 18, United States 
Code.
    (g) Covered Entity Defined.--In this section, the term ``covered 
entity'' means an entity that--
            (1) is categorized as a sole proprietorship, partnership 
        company, limited liability company, C corporation, S 
        corporation, B corporation, or 501(c) organization;
            (2) has more than one but fewer than 50 employees;
            (3) has any type of income subject to Federal income tax;
            (4) paid employment or self-employment tax during calendar 
        year 2019;
            (5) did not receive a payment under the Paycheck Protection 
        Program;
            (6) was established before January 1, 2020; and
            (7) has not filed for chapter 7 bankruptcy.
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