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