To establish the Small Business Economic Assistance Program.

Bill: 116-hr-7522
Sponsor: full_name: Rep. Gallego, Ruben [D-AZ-7]
Introduced: 2020-07-09
Policy area: Commerce
Subjects: Government lending and loan guarantees

Interest, dividends, interest rates

Small business
Latest action: action_date: 2020-07-09
text: Referred to the House Committee on Small Business.

Summaries:
action_date: 2020-07-09
action_desc: Introduced in House
text: <p>This bill establishes the Small Business Economic Assistance Program to provide financial assistance to certain small businesses.</p> <p>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.</p> <p>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.</p>

tv_txt: I 116th CONGRESS 2d Session H. R. 7522 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.

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.