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

Summary:
COVID-19 Small Business Recovery Grants Act
This bill establishes within the Small Business Administration (SBA) the Office of Coronavirus COVID-19 Small Business Recovery Grants to compensate small businesses, located in a qualified disaster area, for substantial economic injury they suffered resulting from COVID-19 (i.e., coronavirus disease 2019) beginning December 1, 2019, and ending December 31, 2021. This compensation (1) excludes interest on the amount of the payment before the settlement or payment of a claim or any punitive or noncompensatory damages; and (2) is limited to $100,000, except in cases where the SBA determines that a greater amount up to $250,000 is appropriate.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6292 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 6292

To establish the Office of Coronavirus COVID-19 Small Business Recovery 
Grants in the Small Business Administration to compensate certain small 
   business concerns for substantial economic injury, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 19, 2020

 Ms. Jackson Lee introduced the following bill; which was referred to 
 the Committee on Small Business, and in addition to the Committee on 
  Transportation and Infrastructure, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
To establish the Office of Coronavirus COVID-19 Small Business Recovery 
Grants in the Small Business Administration to compensate certain small 
   business concerns for substantial economic injury, 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 Small Business Recovery 
Grants Act''.

SEC. 2. DEFINITIONS.

    In this Act, the following definitions apply:
            (1) Claim.--The term ``claim'' means a claim by an injured 
        concern under this Act for payment for substantial economic 
        injury suffered by the injured concern as a result of COVID-19.
            (2) Claimant.--The term ``claimant'' means an injured 
        concern that submits a claim under section 4(b).
            (3) Administrator.--The term ``Administrator'' means the 
        Administrator of the Small Business Administration.
            (4) Injured concern.--The term ``injured concern''--
                    (A) means a small business concern that is located 
                in an area that is a qualified disaster area as a 
                result of COVID-19; and
                    (B) does not include--
                            (i) a lender that holds a mortgage on or 
                        security interest in real or personal property 
                        affected by COVID-19; or
                            (ii) a person that holds a lien on real or 
                        personal property affected by COVID-19.
            (5) Office.--The term ``Office'' means the Office of 
        Coronavirus COVID-19 Small Business Recovery Grants established 
        by section 3.

SEC. 3. OFFICE OF CORONAVIRUS COVID-19 SMALL BUSINESS RECOVERY GRANTS.

    (a) In General.--There is established within the Small Business 
Administration an office to be known as the ``Office of Coronavirus 
COVID-19 Small Business Recovery Grants''.
    (b) Purpose.--The Office shall receive, process, and pay claims in 
accordance with section 4.
    (c) Funding.--The Office--
            (1) shall be funded from funds made available under this 
        Act; and
            (2) may reimburse any other Federal agency for provision of 
        assistance in the receipt and processing of claims.
    (d) Personnel.--
            (1) In general.--The Office may appoint and fix the 
        compensation of such temporary personnel as are necessary to 
        carry out the duties of the Office, without regard to the 
        provisions of title 5, United States Code, governing 
        appointments in the competitive service.
            (2) Personnel from other agencies.--On the request of the 
        Administrator, the head of any other Federal agency may detail, 
        on a reimbursable basis, any of the personnel of the agency to 
        the Federal Emergency Management Agency to assist the Office in 
        carrying out the duties of the Office under this Act.
            (3) Effect on other sba duties.--The establishment of the 
        Office shall not diminish the authority of, or funding 
        available to, the Administrator to carry out the 
        responsibilities of the Small Business Act.

SEC. 4. COMPENSATION FOR VICTIMS OF COVID-19.

    (a) In General.--Each injured concern may receive compensation for 
substantial economic injury suffered as a result of COVID-19, as 
determined by the Administrator.
    (b) Submission of Claims.--Not later than 1 year after the date on 
which interim final regulations are promulgated under subsection (h), 
an injured concern may submit to the Administrator a written claim for 
compensation for substantial economic injury suffered as a result of 
COVID-19.
    (c) Handling of Claims.--The Administrator shall investigate, 
adjust, grant, deny, settle, or compromise any claim submitted under 
subsection (b).
    (d) Amount of Grant.--
            (1) In general.--Any grant made to an injured concern--
                    (A) shall be limited to the amount necessary to 
                compensate the injured concern for substantial economic 
                injury described in paragraph (2) suffered as a result 
                of COVID-19 during the period beginning on December 1, 
                2019, and ending on December 31, 2021;
                    (B) shall not include--
                            (i) interest on the amount of the payment 
                        before the date of settlement or payment of a 
                        claim; or
                            (ii) punitive damages or any other form of 
                        noncompensatory damages; and
                    (C) shall not exceed $100,000, except in the case 
                of a grant application for which the Administrator 
                determines that a greater amount up to $250,000 is 
                appropriate.
            (2) Substantial economic injury.--Under paragraph (1), an 
        injured concern may receive payment for substantial economic 
        injury consisting of one or more of the following:
                    (A) An uninsured or underinsured property loss.
                    (B) Damage to or destruction of physical 
                infrastructure.
                    (C) Damage to or destruction of tangible assets or 
                inventory.
                    (D) A business interruption loss.
                    (E) Overhead costs.
                    (F) Employee wages for work not performed.
                    (G) An insurance deductible.
                    (H) A temporary relocation expense.
                    (I) Debris removal and other cleanup costs.
                    (J) Any other type of substantial economic injury 
                that the Administrator determines to be appropriate.
            (3) Burden of proof.--
                    (A) In general.--A claimant shall have the burden 
                of demonstrating substantial economic injury.
                    (B) Absence of documents.--If documentary evidence 
                substantiating substantial economic injury is not 
                reasonably available, the Administrator may pay a claim 
                based on an affidavit or other documentation executed 
                by the claimant.
    (e) Payment of Claims.--
            (1) Determination and payment of amount.--
                    (A) In general.--To the maximum extent practicable, 
                not later than 180 days after the date on which a claim 
                is submitted under subsection (b), the Administrator 
                shall--
                            (i) determine the amount, if any, to be 
                        paid for the claim; and
                            (ii) pay the amount.
                    (B) Priority.--The Administrator may establish 
                priorities for processing and paying claims based on--
                            (i) an assessment of the needs of the 
                        claimants; and
                            (ii) any other criteria that the 
                        Administrator determines to be appropriate.
                    (C) Parameters of determination.--In determining 
                and paying a claim, the Administrator shall determine 
                only--
                            (i) whether the claimant is an injured 
                        concern; and
                            (ii) whether the injuries that are the 
                        subject of the claim resulted from COVID-19.
                    (D) Insurance and other benefits.--
                            (i) In general.--Subject to clause (ii), to 
                        prevent recovery by a claimant in excess of the 
                        equivalent of actual amount of the substantial 
                        economic injury suffered by the claimant in 
                        accordance with subsection (d), the 
                        Administrator shall reduce the amount to be 
                        paid for the claim by an amount that is equal 
                        to the sum of the payments or settlements of 
                        any kind that were paid, or will be paid, with 
                        respect to the claim, including payments by an 
                        insurance company.
                            (ii) Government loans.--Clause (i) shall 
                        not apply to the receipt by a claimant of any 
                        Federal, State, or local government loan that 
                        is required to be repaid by the claimant.
            (2) Advance or partial payments.--At the request of a 
        claimant, the Administrator may make one or more advance or 
        partial payments before the final approval of a grant.
    (f) Recovery of Funds Improperly Paid or Misused.--The 
Administrator may recover any portion of a payment on a grant that was 
improperly paid to the claimant as a result of--
            (1) fraud or misrepresentation on the part of the claimant 
        or a representative of the claimant;
            (2) a material mistake on the part of the Administrator;
            (3) the payment of insurance or benefits described in 
        subsection (e)(1)(D) that were not taken into account in 
        determining the amount of the payment; or
            (4) the failure of the claimant to cooperate in an audit.
    (g) Appeals of Decisions.--
            (1) Right of appeal.--A claimant may appeal a decision 
        concerning payment of a claim by filing, not later than 60 days 
        after the date on which the claimant is notified that the claim 
        of the claimant will or will not be paid, a notice of appeal in 
        the case of a decision on a claim relating to a business loss, 
        with the Administrator of the Federal Emergency Management 
        Administration.
            (2) Period for decision.--A decision concerning an appeal 
        under paragraph (1) shall be rendered not later than 90 days 
        after the date on which the notice of appeal is received.
    (h) Regulations.--Notwithstanding any other provision of law, not 
later than 45 days after the date of enactment of this Act--
            (1) the Administrator shall promulgate and publish in the 
        Federal Register interim final regulations for the processing 
        and payment of claims; and
            (2) the Administrator and the Administrator of the Federal 
        Emergency Management Agency shall jointly promulgate and 
        publish in the Federal Register procedures under which a 
        dispute concerning payment of a claim may be settled through an 
        appeals process described in subsection (g).
    (i) Public Information.--At the time of publication of interim 
final regulations under subsection (h), the Administrator shall publish 
a clear, concise, and easily understandable explanation of the grant 
program established under this Act the procedural and other 
requirements of the regulations promulgated under subsection (h). Such 
explanation shall be--
            (1) disseminated through brochures, pamphlets, radio, 
        television, the print news media, and such other media as the 
        Administrator determines to be likely to reach prospective 
        claimants; and
            (2) provided in English, Spanish, and any other language 
        that the Administrator determines to be appropriate.
    (j) Coordination.--In carrying out this section, the Administrator 
shall coordinate with the Administrator of the Federal Emergency 
Management Agency, other Federal, State and local agencies, and any 
other individual or entity, as the Administrator determines to be 
necessary to ensure the efficient administration of the claims process.
    (k) Applicability of Debt Collection Requirements.--
            (1) In general.--Section 3716 of title 31, United States 
        Code, shall not preclude any payment on a claim.
            (2) Assignment and exemption from claims of creditors.--
                    (A) Assignment.--No assignment, release, or 
                commutation of a payment due or payable under this Act 
                shall be valid.
                    (B) Exemption.--
                            (i) In general.--A payment under this Act 
                        shall be exempt from all claims of creditors 
                        and from levy, execution, attachment, or other 
                        remedy for recovery or collection of a debt.
                            (ii) Nonwaivable exemption.--The exemption 
                        provided by clause (i) may not be waived.

SEC. 5. REPORTS AND AUDITS.

    (a) Reports.--Not later than 1 year after the date of promulgation 
of interim final regulations under section 4(h) and annually 
thereafter, the Administrator shall submit to Congress a report that 
describes the claims submitted under section 4(b) during the year 
preceding the date of submission of the report, including, with respect 
to each claim--
            (1) the amount claimed;
            (2) a brief description of the nature of the claim; and
            (3) the status or disposition of the claim, including the 
        amount of any payment on the claim.
    (b) Audits.--The Comptroller General of the United States shall--
            (1) conduct an annual audit of the payment of all claims 
        submitted under section 4(b); and
            (2) not later than 120 days after the date on which the 
        Administrator submits the initial report required by subsection 
        (a) and annually thereafter, submit to Congress a report on the 
        results of the audit.

SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated to carry 
out this Act--
            (1) to the Office of Business Recovery Grants established 
        under section 3 to administer the claims process, $25,000,000; 
        and
            (2) for payment of claims, $975,000,000.
    (b) Availability.--Amounts made available under subsection (a) 
shall remain available until expended.

SEC. 7. TERMINATION OF AUTHORITY.

    The authority provided by this Act terminates effective 30 months 
after the date of enactment of this Act.
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