Title: Caring for Startup Employees Act of 2020
Policy area: Commerce

Summary:
Caring for Startup Employees Act of 2020
This bill expands the Paycheck Protection Program, established to support small businesses in response to COVID-19 (i.e., coronavirus disease 2019), to encompass certain small businesses that have accepted funding from an investment company.
The investment company may not be a majority stakeholder of the small business, and the small business may not distribute any proceeds of a program loan to the investment company, including through dividends, redemptions, security repurchases, or other transfers or transactions.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6751 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 6751

   To amend the Small Business Act to include certain small business 
  concerns in the paycheck protection program, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 8, 2020

 Ms. Eshoo (for herself and Mrs. Rodgers of Washington) introduced the 
 following bill; which was referred to the Committee on Small Business

_______________________________________________________________________

                                 A BILL


 
   To amend the Small Business Act to include certain small business 
  concerns in the paycheck protection program, 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 ``Caring for Startup Employees Act of 
2020''.

SEC. 2. ENSURING STARTUPS CAN ACCESS THE PAYCHECK PROTECTION PROGRAM.

    Section 7(a)(36)(D)(iv) of the Small Business Act (15 U.S.C. 
636(a)(36)(D)(iv)) is amended--
            (1) by adding at the end the following:
                                    ``(IV) any small business concern 
                                that has accepted funding from an 
                                investment company, as such term is 
                                defined in section 80a-3 of title 15, 
                                Code of Federal Regulations (or any 
                                successor regulation), notwithstanding 
                                any assessment of such investment 
                                company, as long as--
                                            ``(aa) no investment 
                                        company is a majority 
                                        stakeholder of the small 
                                        business concern; and
                                            ``(bb) the small business 
                                        concern does not distribute 
                                        proceeds of the loan to any 
                                        investment company of such 
                                        small business concern, 
                                        including through dividends, 
                                        redemptions, security 
                                        repurchases, or any other 
                                        transfer or transaction.'';
            (2) in subclause (II), by striking ``; and'' and inserting 
        a semicolon; and
            (3) in subclause (III), by striking the period at the end 
        and inserting ``; and''.
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