Title: HEAL Act
Policy area: Commerce

Summary:
Helping Entrepreneurs Access Loans Act or the HEAL Act
This bill establishes eligibility and provides funding for Small Business Administration (SBA) disaster loans and advance grants for eligible small businesses.
Eligible small businesses are those that (1) are located in an area in which the SBA declared a disaster due to civil unrest occurring between May 26, 2020, and July 1, 2020; (2) incurred damage due to such civil unrest; and (3) have average annual gross receipts of $2 million or less.
Such small businesses shall be eligible to receive forgivable loans and advance grants under the SBA's disaster loan program. Such loans shall be equal to 100% of the amount required to repair, rehabilitate, or replace property that was damaged or destroyed due to civil unrest and that was not compensated for by insurance, state or local government grants, or any other means. An applicant may also request an advance of up to $10,000 on such loan.
Further, a recipient shall be eligible for forgiveness of 75% of such loan if they are still in operation on December 31, 2021, and have submitted specified documentation related to sales and taxes paid.
Additionally, the SBA shall waive certain loan requirements such as (1) personal guarantees, (2) inability to obtain credit elsewhere, and (3) provision of collateral.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 4135 Introduced in Senate (IS)]

<DOC>






116th CONGRESS
  2d Session
                                S. 4135

To provide forgivable physical disaster loans to businesses damaged due 
                to civil unrest, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              July 1, 2020

  Mr. Toomey introduced the following bill; which was read twice and 
    referred to the Committee on Small Business and Entrepreneurship

_______________________________________________________________________

                                 A BILL


 
To provide forgivable physical disaster loans to businesses damaged due 
                to civil unrest, 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 ``Helping Entrepreneurs Access Loans 
Act'' or the ``HEAL Act''.

SEC. 2. FORGIVABLE BUSINESS PHYSICAL DISASTER LOANS FOR DAMAGE DUE TO 
              CIVIL UNREST.

    (a) Definitions.--In this section--
            (1) the terms ``Administration'' and ``Administrator'' mean 
        the Small Business Administration and the Administrator 
        thereof, respectively;
            (2) the term ``covered period'' means the period beginning 
        on May 26, 2020 and ending on July 1, 2020; and
            (3) the term ``eligible entity'' means a business concern--
                    (A) with average annual receipts (as defined in 
                section 121.104 of title 13, Code of Federal 
                Regulations, or any successor regulation) of not more 
                than $2,000,000; and
                    (B) that--
                            (i) is located within an area for which the 
                        Administrator declared a disaster in accordance 
                        with section 123.3(a)(3) of title 13, Code of 
                        Federal Regulations, or any successor 
                        regulation, with respect to civil unrest that 
                        began on May 26, 2020 in Minneapolis, Minnesota 
                        and spread across the United States; and
                            (ii) incurred damage to real or personal 
                        property of the business concern during the 
                        covered period as a result of the civil unrest 
                        described in clause (i).
    (b) Business Physical Disaster Loans.--
            (1) In general.--Except as otherwise provided in this 
        subsection, an eligible entity shall be eligible for a loan 
        made by the Administration under section 7(b)(1) of the Small 
        Business Act (15 U.S.C. 636(b)(1)) under the same terms, 
        conditions, and processes as a loan made under such section to 
        repair, rehabilitate, or replace property, real or personal, of 
        the eligible entity that was damaged or destroyed during the 
        covered period as a result of the civil unrest described in 
        subsection (a)(3)(B)(i).
            (2) Disaster declaration.--With respect to the disaster 
        declaration described in subsection (a)(3)(B)(i) for a loan 
        made under paragraph (1), the requirement under section 
        123.3(a)(3)(ii) of title 13, Code of Federal Regulations, or 
        any successor regulation, that 25 percent or more of the work 
        force in the area would be unemployed for not fewer than 90 
        days shall not apply.
            (3) Loan amount.--
                    (A) In general.--The amount of a loan made under 
                paragraph (1) shall be equal to 100 percent of the 
                amount required to repair, rehabilitate, or replace 
                property, real or personal, of the eligible entity 
                that--
                            (i) was damaged or destroyed during the 
                        covered period as a result of the civil unrest 
                        described in subsection (a)(3)(B)(i); and
                            (ii) is not compensated for by--
                                    (I) insurance;
                                    (II) a grant from a State or local 
                                government; or
                                    (III) any other means.
                    (B) Deduction of advance amount.--The amount of any 
                advance received by an eligible entity under subsection 
                (c) shall be deducted from the loan amount for the 
                eligible entity under subparagraph (A).
            (4) Terms; credit elsewhere.--
                    (A) In general.--With respect to a loan made to an 
                eligible entity under paragraph (1)--
                            (i) the Administrator shall waive--
                                    (I) any rules related the personal 
                                guarantee on loans of not more than 
                                $200,000 during the covered period for 
                                all applicants; and
                                    (II) any requirement that an 
                                applicant needs to be in business for 
                                the 1-year period before the civil 
                                unrest described in subsection 
                                (a)(3)(B)(i), except that no waiver may 
                                be made for an eligible entity that was 
                                not in operation on January 31, 2020;
                            (ii) the eligible entity shall not be 
                        required to show that the eligible entity is 
                        unable to obtain credit elsewhere; and
                            (iii) no collateral shall be required for 
                        the loan.
                    (B) Repayment.--Any payments on a loan made to an 
                eligible entity under paragraph (1) are deferred until 
                June 30, 2022, and interest shall not begin to accrue 
                until such date.
            (5) Application.--
                    (A) In general.--Not later than 7 days after the 
                date of enactment of this Act, the Administrator shall 
                begin to accept applications for a loan under paragraph 
                (1).
                    (B) Deadline.--An eligible entity desiring a loan 
                under this subsection shall submit to the Administrator 
                an application not later than December 31, 2020.
                    (C) Approval and ability to repay.--With respect to 
                an applicant for a loan made under paragraph (1), the 
                Administrator may--
                            (i) approve the applicant based on the 
                        credit score or personal guarantee of the 
                        applicant; or
                            (ii) use alternative appropriate methods to 
                        determine the applicant's ability to repay.
            (6) Use of funds.--A recipient of a loan made under 
        paragraph (1) shall use the loan proceeds to repair, 
        rehabilitate, or replace property, real or personal, damaged or 
        destroyed during the covered period as a result of the civil 
        unrest described in subsection (a)(3)(B)(i), provided that such 
        damage or destruction is not compensated for by insurance, a 
        grant from a State or local government, or otherwise.
            (7) Loan forgiveness.--
                    (A) In general.--An eligible entity that received a 
                loan made under paragraph (1), or an eligible entity 
                that received a loan under section 7(b)(1) of the Small 
                Business Act (15 U.S.C. 636(b)(1)) before the date of 
                enactment of this Act related to the civil unrest 
                described in subsection (a)(3)(B)(i), shall be eligible 
                for forgiveness of indebtedness equal to 75 percent of 
                the loan amount if the eligible entity--
                            (i) submits to the Administrator 
                        documentation of sales for 2019 and 2020 and 
                        tax returns for 2019 and 2020; and
                            (ii) the eligible entity is in operation as 
                        of December 31, 2021.
                    (B) Amounts not forgiven.--Any remaining amount of 
                a loan described in subparagraph (A) that is not 
                forgiven under this paragraph as of December 31, 2021 
                shall--
                            (i) be considered a loan made under section 
                        7(b)(1) of the Small Business Act (15 U.S.C. 
                        636(b)(1));
                            (ii) bear an interest rate of 3.75 percent; 
                        and
                            (iii) have a 30-year term.
            (8) Duplication.--An eligible entity that received a loan 
        under subsection (a)(36) or (b)(2) of section 7 of the Small 
        Business Act (15 U.S.C. 636) before the date of enactment of 
        this Act shall be eligible for a loan under paragraph (1) if 
        the proceeds of the loan made under such subsection (a)(36) or 
        (b)(2) are not used for the same expenses as the loan under 
        paragraph (1).
    (c) Emergency Grant.--
            (1) In general.--An eligible entity that applies for a loan 
        under subsection (b)(1) may request that the Administrator 
        provide an advance, subject to paragraph (3), to the eligible 
        entity not later than 10 days after the date on which the 
        Administrator receives an application from the eligible entity.
            (2) Verification.--Before disbursing amounts under this 
        subsection, the Administrator shall verify that the applicant 
        is an eligible entity by accepting a self-certification from 
        the applicant under penalty of perjury pursuant to section 1746 
        of title 28, United States Code.
            (3) Amount.--The amount of an advance provided to an 
        eligible entity under this subsection shall be the lesser of--
                    (A) 20 percent of the amount requested by the 
                eligible entity; or
                    (B) $10,000.
            (4) Use of funds.--An advance received under this 
        subsection shall only be used for the allowable uses for a loan 
        under subsection (b)(1).
            (5) Repayment.--
                    (A) In general.--Except as provided under 
                subparagraph (B), an eligible entity that receives an 
                advance under this subsection shall not be required to 
                repay any amounts of the advance.
                    (B) Return of advance.--If an applicant for a loan 
                under subsection (b)(1) is later determined to be 
                ineligible for the loan because the applicant does not 
                meet the requirements to be an eligible entity 
                described in subsection (a)(3), the applicant shall 
                return to the Administrator any advance amount provided 
                under this subsection--
                            (i) not later than 90 days after receiving 
                        notice of the determination of ineligibility; 
                        or
                            (ii) if the Administrator determines that 
                        the applicant submitted the application in bad 
                        faith, not later than 30 days after receiving 
                        notice of that determination, plus interest in 
                        an amount equal to 4.75 percent of the advance.
    (d) Resources and Services in Languages Other Than English.--The 
Administrator shall provide the resources and services made available 
by the Administration relating to the loans and grants available under 
this section to eligible entities in the 10 most commonly spoken 
languages, other than English, in the United States, which shall 
include Mandarin, Cantonese, Japanese, and Korean.
    (e) Regulations.--The Administrator shall issue guidance and rules 
to carry out this section.
    (f) Direct Appropriation.--
            (1) In general.--There is appropriated, out of amounts in 
        the Treasury not otherwise appropriated, for the fiscal year 
        ending September 30, 2020, for an additional amount for ``Small 
        Business Administration--HEAL Act'', $80,000,000, to remain 
        available until September 30, 2021, for carrying out this 
        section.
            (2) Emergency designation.--
                    (A) In general.--The amounts provided under this 
                subsection are designated as an emergency requirement 
                pursuant to section 4(g) of the Statutory Pay-As-You-Go 
                Act of 2010 (2 U.S.C. 933(g)).
                    (B) Designation in senate.--In the Senate, this 
                subsection is designated as an emergency requirement 
                pursuant to section 4112(a) of H. Con. Res. 71 (115th 
                Congress), the concurrent resolution on the budget for 
                fiscal year 2018.
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