[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6324 Introduced in House (IH)]
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116th CONGRESS
2d Session
H. R. 6324
To amend the Small Business Act to provide no interest rate loans to
small businesses and non-profit entities impacted by the coronavirus
(COVID-19), and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 23, 2020
Mr. Pappas (for himself, Mr. Rose of New York, Ms. Kendra S. Horn of
Oklahoma, Ms. Norton, Mr. Carson of Indiana, Ms. Wild, Ms. Mucarsel-
Powell, Mr. Panetta, Mrs. Hayes, Ms. Kuster of New Hampshire, and Ms.
Pingree) introduced the following bill; which was referred to the
Committee on Small Business
_______________________________________________________________________
A BILL
To amend the Small Business Act to provide no interest rate loans to
small businesses and non-profit entities impacted by the coronavirus
(COVID-19), 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 ``Too Small to Fail Act''.
SEC. 2. FINANCIAL ASSISTANCE TO SMALL BUSINESSES AND NON-PROFIT
ENTITIES.
Section 7 of the Small Business Act (15 U.S.C. 636) is amended by
adding at the end the following new subsection:
``(k) Coronavirus Related Loans.--
``(1) In general.--The Administration shall waive the
credit elsewhere requirement of subsection (a)(1) for loans to
small businesses and non-profit entities affected by the
coronavirus (COVID-19). Such loans shall be provided by the
Administration at no interest rate.
``(2) Authorization of appropriations.--For an additional
amount for the `Disaster Loans Program Account' for the cost of
direct loans authorized by section 7(b) of the Small Business
Act and for subsidizing interest rates, $350,000,000,000, to
remain available until expended, except that--
``(A) not to exceed $225,000,000 may be transferred
to and merged with `Salaries and Expenses' for
administrative expenses to carry out the disaster loan
program authorized by section 7(b) of the Small
Business Act; and
``(B) none of the funds provided under this heading
may be used for indirect administrative expenses.
``(3) Emergency requirement.--The amount provided under
paragraph (2) is designated as an emergency requirement
pursuant to section 251(b)(2)(A)(i) of the Balanced Budget and
Emergency Deficit Control Act of 1985 and the amount designated
under such paragraph as an emergency requirement pursuant to
such section 251(b)(2)(A)(i) shall be available only if the
President subsequently so designates such amount and transmits
such designation to the Congress.
``(4) Suspension of payment.--The Administration is
authorized to suspend the payment of any loan made under this
Act to any small business or non-profit entity affected by the
coronavirus (COVID-19) for a period determined by the
Administration.''.
SEC. 3. EMERGENCY EIDL GRANTS.
(a) EIDL Emergency Grant.--
(1) In general.--During the covered period, an eligible
entity that applies for a loan under section 7(b)(2) of the
Small Business Act (15 U.S.C. 636(b)(2)) in response to COVID-
19 may request that the Administrator provide an advance in the
amount requested by such applicant (not to exceed $15,000) to
such applicant within 3 days after the Administrator receives
an application from such applicant.
(2) Verification.--Before disbursing amounts under this
subsection, the Administrator shall verify that the applicant
is an eligible entity.
(3) Use of funds.--An advance provided under this
subsection may be used to address any allowable purpose for a
loan made under section 7(b)(2) of the Small Business Act (15
U.S.C. 636(b)(2)), including--
(A) providing paid sick leave to employees unable
to work due to the direct effect of the COVID-19;
(B) maintaining payroll to retain employees during
business disruptions or substantial slowdowns;
(C) meeting increased costs to obtain materials
unavailable from the applicant's original source due to
interrupted supply chains;
(D) making rent or mortgage payments; and
(E) repaying obligations that cannot be met due to
revenue losses.
(4) Repayment.--An applicant shall not be required to repay
any amounts of an advance provided under this subsection, even
if subsequently denied a loan under section 7(b)(2) of the
Small Business Act (15 U.S.C. 636(b)(2)).
(5) Unemployment grant.--If an applicant that receives an
advance under this subsection transfers into the loan program
under section 7(a) of the Small Business Act (15 U.S.C.
636(a)), the advance amount shall be considered when
determining loan forgiveness for a loan for payroll costs made
under such section 7(a).
(6) Authorization of appropriations.--There is authorized
to be appropriated to the Small Business Administration
$10,000,000,000 to carry out this subsection.
(7) Termination.--The authority to carry out grants under
this subsection shall terminate on December 31, 2020.
(b) Definitions.--In this Act--
(1) the term ``covered period'' means the period beginning
on January 31, 2020, and ending on December 31, 2020;
(2) the term ``eligible entity'' means--
(A) a startup with not more than 500 employees;
(B) any individual who operates under a sole
proprietorship or as an independent contractor;
(C) a cooperative with not more than 500 employees;
or
(D) an ESOP (as defined in section 3 of the Small
Business Act (15 U.S.C. 632)) with not more than 500
employees; and
(3) the term ``COVID-19'' means the virus SARS-CoV-2 and
the resulting disease COVID-19 or another coronavirus with
pandemic potential.
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