[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6409 Introduced in House (IH)]

<DOC>






116th CONGRESS
  2d Session
                                H. R. 6409

   To establish the Emergency Social Insurance Program in the Social 
 Security Administration and Small Business Administration in order to 
   address the injury concerns of certain small businesses and idle 
       workers disproportionally affected by the COVID-19 crisis.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 27, 2020

   Ms. Omar (for herself, Ms. Norton, Ms. Schakowsky, and Ms. Tlaib) 
 introduced the following bill; which was referred to the Committee on 
Ways and Means, and in addition to the Committee on Small Business, 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 Emergency Social Insurance Program in the Social 
 Security Administration and Small Business Administration in order to 
   address the injury concerns of certain small businesses and idle 
       workers disproportionally affected by the COVID-19 crisis.

    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 ``Assistance for Businesses and Local 
Economies Act'' or the ``ABLE Act of 2020''.

SEC. 2. ESTABLISHMENT AND COORDINATION OF THE EMERGENCY SOCIAL 
              INSURANCE PROGRAM.

    (a) In General.--The Administrator of the Social Security 
Administration and the Administrator of the Small Business 
Administration, under the direction of the Secretary of Labor and the 
Secretary of the Treasury, respectively, in consultation with the 
Commissioner of the Internal Revenue Service, shall establish a joint 
program to efficiently coordinate and deliver direct payments to 
affected small businesses and affected idle workers during the COVID-19 
crisis.
    (b) Establishment.--The Emergency Social Insurance Program shall be 
a dual approach for direct government assistance to meet full salary 
need of lost wages faced by affected idle workers and to meet full 
maintenance need of output losses faced by affected small businesses in 
order to stabilize and shelter the economy from COVID-19.
    (c) Coordination.--The Social Security Administration and the 
Department of Labor shall collaborate with States to increase and 
maximize unemployment insurance benefits for affected idle workers 
through existing State agency mechanisms. The Small Business 
Administration and the Department of the Treasury (with the Internal 
Revenue Service) shall be responsible for establishing and managing a 
$500 billion fund for direct economic injury grants for qualifying 
small businesses, with IRS assisting in verification and oversight of 
awards' amounts and uses.
    (d) Definitions.--In this Act:
            (1) SSA; ssa administrator; sba; sba administrator; irs; 
        irs commissioner.--The terms ``SSA'' and ``SSA Administrator'' 
        mean the Social Security Administration and the Administrator 
        thereof, the terms ``SBA'' and ``SBA Administrator'' mean the 
        Small Business Administration and the Administrator thereof, 
        the terms ``IRS'' and ``IRS Commissioner'' mean the Internal 
        Revenue Service and the Commissioner thereof, respectively.
            (2) COVID-19 crisis.--The term ``COVID-19 crisis'' means 
        the period that begins upon the date of the enactment of this 
        Act and ends on the date of the termination by the Federal 
        Emergency Management Agency of the emergency declared on March 
        13, 2020, by the President under the Robert T. Stafford 
        Disaster Relief and Emergency Assistance Act (42 U.S.C. 4121 et 
        seq.) relating to the Coronavirus Disease 2019 (COVID-19) 
        pandemic.
            (3) Affected idle worker.--The term ``affected idle 
        worker'' means an individual who, as a result of COVID-19--
                    (A) has no rights to regular compensation with 
                respect to a week under State law or any other State 
                unemployment compensation law or to compensation under 
                any other Federal law;
                    (B) is not receiving any State or private paid 
                leave with respect to such week; and
                    (C) can attest that--
                            (i) the individual is not able or available 
                        to work due to COVID-19 with respect to such 
                        week;
                            (ii) the individual would be able and 
                        available to work during such week, if not for 
                        COVID-19; because
                            (iii) the individual has a current 
                        diagnosis of COVID-19;
                            (iv) the individual is under quarantine 
                        (including self-imposed quarantine), at the 
                        instruction of a health care provider, 
                        employer, or a local, State, or Federal 
                        official, in order to prevent the spread of 
                        COVID-19;
                            (v) the individual is unable to engage in 
                        self-employment and had past net earnings from 
                        self-employment (as defined in section 1402(a) 
                        of the Internal Revenue Code of 1986) of not 
                        less than $2500 during the 6-month period 
                        ending on the date of enactment of this Act;
                            (vi) the individual had a contract or other 
                        offer of employment suspended or rescinded due 
                        to COVID-19;
                            (vii) the individual is engaged in 
                        caregiving (without compensation) for an 
                        individual who has a current diagnosis of 
                        COVID-19 or is under quarantine; or
                            (viii) the individual is engaged in 
                        caregiving (without compensation), because of 
                        the COVID-19-related closing of a school or 
                        other care facility or care program, for a 
                        child or other individual unable to provide 
                        self-care.
            (4) Affected small business.--The term ``affected small 
        business'' means--
                    (A) a small business concern (as defined under 
                section 3 of the Small Business Act (15 U.S.C. 636));
                    (B) a family farm;
                    (C) an independent contractor; and
                    (D) any other affected additional covered entity, 
                under section 5 of this Act, to which the Small 
                Business Administration determines grants would promote 
                full employment and financial stability during the 
                COVID-19 crisis.
            (5) Affected small business concern.--The term ``affected 
        small business concern'' means a small business concern that 
        has experienced, as a result of COVID-19--
                    (A) supply chain disruptions, including changes 
                in--
                            (i) quantity and lead time, including the 
                        number of shipments and components and delays 
                        in shipments;
                            (ii) quality, including shortages in supply 
                        for quality control reasons; and
                            (iii) technology, including a compromised 
                        payment network;
                    (B) staffing challenges;
                    (C) a decrease in profits, sales, or customers; or
                    (D) a closure.

SEC. 3. ENHANCEMENT OF EMERGENCY COVID-19 UNEMPLOYMENT COMPENSATION FOR 
              AFFECTED IDLE WORKERS.

    (a) In General.--The Administrator of the Social Security 
Administration (referred to as the ``SSA Administrator'' in this 
section), in consultation with the Secretary of Labor, shall assist 
States to offer expanded unemployment insurance for workers reporting 
as idle or unemployed, as a result of the public health emergency 
declared because of COVID-19.
    (b) Idle Defined.--The term ``idle'' means a worker facing 
substantial economic uncertainty and hardship due the COVID-19 and its 
social distancing, including but not limited to--
            (1) food service industry workers and hospitality workers;
            (2) domestic workers and tipped workers;
            (3) gig economy workers, freelancers, and other self-
        employed individuals; and
            (4) independent contractors.
    (c) Federal-State Agreements.--Any State which desires to do so may 
enter into and participate in an agreement under this section with the 
Secretary of Labor (hereinafter this section referred to as the 
``Secretary''). Any State which is a party to an agreement under this 
section may, upon providing 30 days' written notice to the Secretary, 
terminate such agreement.
    (d) Provisions of Agreement.--
            (1) In general.--Any agreement under this section shall 
        provide the following:
                    (A) Emergency covid-19 unemployment compensation.--
                The State agency of the State will make payments of 
                regular compensation to individuals in amounts and to 
                the extent that they would be determined if that State 
                law of the State were applied, with respect to any week 
                for which the individual is (disregarding this section) 
                otherwise entitled under the State law to receive 
                regular compensation, as if such State law had been 
                modified in a manner such that the amount of regular 
                compensation (including dependents' allowances) payable 
                for any week shall be equal to meet 100 percent 
                salary--
                            (i) the amount determined under the State 
                        law (before the application of this paragraph), 
                        plus additional amount caps (referred to as 
                        ``Emergency COVID-19 Unemployment 
                        Compensation'' in this section), including--
                            (ii) up to an additional $5,000 per month 
                        for all affected idle workers of such affected 
                        small businesses (described in section 3 of 
                        this Act);
                            (iii) up to an additional $4,000 per month 
                        for all affected idle tipped workers, certain 
                        domestic workers, and independent contractors; 
                        and
                            (iv) up to an additional $3,000 per month 
                        for all other affected and eligible self-
                        employed individuals, such as gig economy 
                        workers and freelancers.
                    (B) Emergency covid-19 short-time compensation.--In 
                the case of a State that provides under the State law 
                for the payment of short-time compensation under a 
                short-time compensation program (as defined in section 
                3306(v) of the Internal Revenue Code of 1986), the 
                State agency of the State will make payments of 
                compensation to employees participating in such program 
                in amounts and to the extent that they would be 
                determined under such program if the State law of the 
                State were applied with respect to any week for which 
                the individual is (disregarding this section) otherwise 
                eligible under the program under the State law to 
                receive such compensation, as if such State law had 
                been modified in a manner such that the amount of 
                compensation payable for any week shall be equal to the 
                amount determined under the State law (before the 
                application of this paragraph) plus half the eligible 
                amount of the caps in subparagraph (A) in this section 
                (d).
            (2) Allowable methods of payment.--Any Emergency COVID-19 
        Unemployment Compensation or Emergency COVID-19 Short-Time 
        Compensation provided for in the accordance with paragraph (1) 
        shall be payable either--
                    (A) as an amount which is paid at the same time and 
                in the same manner as any compensation otherwise 
                payable for the week involved; or
                    (B) at the option of the State, by payments which 
                are made separately from, but on the same weekly basis 
                as, any compensation otherwise payable.
    (e) Nonreduction Rule.--Any agreement under this section shall not 
apply (or shall cease to apply) with respect to a State upon a 
determination by the Secretary that the method governing computation of 
regular compensation under the State law of that State has been 
modified in a manner such that the maximum benefit entitlement and the 
average weekly benefit amount of regular compensation (or short-time 
compensation in the case of a State described in subsection (d)(1)(B) 
which will be payable during the period of the agreement (determined 
disregarding any Emergency COVID-19 Unemployment Compensation or 
Emergency COVID-19 Short-time Compensation) will be less than the 
maximum benefit entitlement and the average weekly benefit amount of 
regular compensation (or short-time compensation) which would otherwise 
have been payable during such period under the State law, as in effect 
on January 1, 2020.
    (f) Payments to States.--
            (1) In general.--
                    (A) Full reimbursement.--There shall be paid to 
                each State which has entered into an agreement under 
                this section an amount equal to 100 percent of--
                            (i) the total amount of Emergency COVID-19 
                        Unemployment Compensation paid to individuals 
                        by the State pursuant to such agreement;
                            (ii) the total amount of Emergency COVID-19 
                        Short-Time Compensation paid to individuals. By 
                        the State pursuant to such agreement; and
                            (iii) any additional administrative 
                        expenses incurred by the State by reason of 
                        such agreement (as determined by the 
                        Secretary).
                    (B) Terms of payments.--Sums payable to any State 
                by reason of such State's having an agreement under 
                this section shall be payable, either in advance or by 
                way of reimbursement (as determined by the Secretary), 
                in such amounts as the Secretary Estimates that State 
                will be entitled to receive under this section for each 
                calendar month, reduced or increased, as the case may 
                be, by any amount by which the Secretary finds that his 
                estimates for any prior calendar month were greater or 
                less than the amount which should have been paid to the 
                State. Such estimates may be made on the basis of such 
                statistical, sampling, or other method as may be agreed 
                upon by the Secretary and the State agency of the State 
                involved.
            (2) Certifications.--The Secretary shall from time to time 
        certify to the Secretary of the Treasury for payment to each 
        State the sums payable to such State under this section.
            (3) Appropriation.--There are appropriated from the general 
        fund of the Treasury, without fiscal year limitation, such sums 
        as may be necessary for purposes of this subsection.
    (g) Applicability.--
            (1) In general.--An agreement entered into under this 
        section shall apply to weeks of unemployment--
                    (A) beginning on or after March 1, 2020; and
                    (B) ending on or before January 1, 2021.
            (2) Duration of benefit payments.--An individual who 
        becomes entitled to such agreement will receive payments from a 
        State or Agency for not more than 25 weeks.
            (3) Transition rule for individuals remaining entitled to 
        regular compensation as of april 30, 2021.--In the case of any 
        individual who, as of the date specified in paragraph (1)(B), 
        has not yet exhausted all rights to regular compensation under 
        the State law of a State with respect to a benefit year that 
        began before such date (or short-time compensation in the case 
        of State described in subsection (d)(1)(B) Emergency COVID-19 
        Unemployment Compensation or Emergency COVID-19 Short-Time 
        Compensation provided for in the accordance with paragraph (1) 
        shall be payable to such individual for any week beginning on 
        or after such date for which the individual is otherwise 
        eligible for regular compensation (or short-time compensation) 
        with respect to such benefit year.
            (4) Termination.--Notwithstanding any other provision of 
        this subsection, no Emergency COVID-19 Unemployment 
        Compensation or Emergency COVID-19 Short-Time Compensation 
        shall be payable for any week beginning after April 30, 2021, 
        but Congress has the option to end this program earlier or 
        extend it as well.
    (h) Fraud and Overpayments.--
            (1) In general.--If an individual knowingly has made, or 
        caused to be made by another, a false statement or 
        representation of a material fact, or knowingly has failed, or 
        caused another to fail, to disclose a material fact, and as a 
        result of such false statement or representation of such 
        nondisclosure such individual has received an amount of 
        Emergency COVID-19 Unemployment Compensation or Emergency 
        COVID-19 Short-Time Compensation to which such individual was 
        not entitled, such individual--
                    (A) shall be ineligible for further Emergency 
                COVID-19 Unemployment Compensation or Emergency COVID-
                19 Short-Time Compensation in accordance with 
                provisions of the applicable State unemployment 
                compensation law relating to fraud in connection with a 
                claim for unemployment compensation; and
                    (B) shall be subject to prosecution under section 
                1001 of title 18, United States Code.
            (2) Repayment.--In the case of individuals who have 
        received amounts of Emergency COVID-19 Unemployment 
        Compensation or Emergency COVID-19 Short-Time Compensation to 
        which they were not entitled, the State shall require such 
        individuals to repay the amounts of such Emergency COVID-19 
        Unemployment Compensation or Emergency COVID-19 Short-Time 
        Compensation to the State agency, expect that the State agency 
        may waive such repayment if it determines that--
                    (A) the payment of such Emergency COVID-19 
                Unemployment Compensation or Emergency COVID-19 Short-
                Time Compensation was without fault on the part of any 
                such individual; and
                    (B) such repayment would be contrary to equity and 
                good conscience.
            (3) Recovery by state agency.--
                    (A) In general.--The State agency may recover the 
                amount to be repaid, or any part thereof, by deductions 
                from any Emergency COVID-19 Unemployment Compensation 
                or Emergency COVID-19 Short-Time Compensation payable 
                to such individual or from any unemployment payable to 
                such individual under any State or Federal unemployment 
                compensation law administered by the State agency or 
                under any other State or Federal law administered by 
                the State agency which provides for the payment of any 
                assistance or allowance with respect to any week of 
                unemployment, during the 3-year period after the date 
                such individuals received the payment of the Emergency 
                COVID-19 Unemployment Compensation or Emergency COVID-
                19 Short-Time Compensation to which they were not 
                entitled, in accordance with the same procedures as 
                apply to the recovery of overpayments of regular 
                unemployment benefits paid by the State.
                    (B) Opportunity for hearing.--No repayment shall be 
                required, and no deduction shall be made, until a 
                determination has been made, notice thereof and an 
                opportunity for a fair hearing has been given to the 
                individual, and the determination has become final.
            (4) Review.--Any determination by a State agency under this 
        section shall be subject to review in the same manner and to 
        the same extent as determinations under the State unemployment 
        compensation law, and only in that manner and to that extent.
    (i) Application to Other Unemployment Benefits.--
            (1) In general.--Each agreement under this section shall 
        include provisions to provide that the purposes of the 
        preceding provisions of this section shall be applied with 
        respect to unemployment benefits described in section (i)(3) to 
        the same extent and in the same manner as if those benefits 
        were regular compensation.
            (2) Eligibility and termination rules.--Emergency COVID-19 
        Unemployment Compensation--
                    (A) shall not be payable, pursuant to this 
                subsection, with respect to any unemployment benefits 
                described in subsection (i)(3) for any week beginning 
                on or after the date specified in subsection (g)(1)(B), 
                except in the case of an individual who was eligible to 
                receive Emergency COVID-19 Unemployment Compensation in 
                connection with any regular compensation or any other 
                unemployment benefits described in subsection (i)(3) 
                for any period of unemployment ending before such date; 
                and
                    (B) shall in no event be payable for any week 
                beginning after date specified in subsection (g)(3).
    (j) Treatment of Emergency COVID-19 Unemployment Compensation and 
Emergency COVID-19 Short-Time Compensation Payments.--An Emergency 
COVID-19 Unemployment Compensation and Emergency COVID-19 Short-Time 
Compensation payment shall not be regarded as income and shall not be 
regarded as a resource for the money of receipt and the following 9 
months, for purposes of determining the eligibility of the recipient 
(or the recipient's spouse or family) for benefits or assistance, or 
the amount or extent of benefits or assistance, under any Federal 
program or under any State or local program financed in whole or in 
part with Federal funds.
    (k) Definitions.--For purposes of this section--
            (1) the terms ``compensation'', ``regular compensation'', 
        ``benefit year'', ``State'', ``State agency'', ``State law'', 
        and ``week'' have the respective meanings given such terms 
        under section 205 of the Federal-State Extended Unemployment 
        Compensation Act of 1970 (26 U.S.C. 3304);
            (2) the term ``maximum benefit entitlement'' means the 
        amount of regular compensation payable to an individual with 
        respect to the individual's benefit year; and
            (3) any reference to unemployment benefits described in 
        this paragraph shall be considered to refer to--
                    (A) extended compensation (as defined by section 
                205 of the Federal-State Extended Unemployment 
                Compensation Act of 1970); and
                    (B) unemployment compensation (as defined by 
                section 85(b) of the Internal Revenue Code of 1986) 
                provided under any program administered by a State 
                under an agreement with the Secretary.

SEC. 4. EMERGENCY DIRECT COMPENSATION FOR AFFECTED ADDITIONAL COVERED 
              ENTITIES.

    (a) In General.--The Administrator of the Small Business 
Administration in consultation with the Secretary of the Treasury and 
the Commissioner of the Internal Revenue Service, shall provide grants 
to additional covered entities that have suffered a substantial 
economic injury (as defined in section 7(b)(2) of the Small Business 
Act (15 U.S.C. 636(b)(2))), directly or indirectly, as a result of the 
public health emergency declared because of COVID-19.
    (b) Additional Covered Entity Defined.--The term ``additional 
covered entity'' means--
            (1) a business concern that employs not more than 500 
        employees per physical location of the business concern and 
        that is assigned a North American Industry Classification 
        System code beginning with 71; 72; 44; 45;
            (2) a small business concern (as defined under section 3 of 
        the Small Business Act (15 U.S.C. 632)); and
            (3) if such person was in operation on or before January 
        31, 2020--
                    (A) an individual who operates under a sole 
                proprietorship or as an independent contractor;
                    (B) a cooperative that employs not more than 500 
                employees per physical location of the cooperative;
                    (C) an ESOP (as defined in section 3(q)(6) of the 
                Small Business Act (15 U.S.C. 632(q)(6))) that employs 
                not more than 500 employees per physical location of 
                the ESOP;
                    (D) an organization serving veterans or members of 
                the Armed Forces (as defined in section 501(c)(19) of 
                the Internal Revenue Code of 1986, that is exempt from 
                taxation under subsection (a) of such sections);
                    (E) a private nonprofit organization that employs 
                not more than 500 employees per physical location of 
                the organization; or
                    (F) a start-up small business concern that employs 
                not more than 500 employees per physical location of 
                the concern.
    (c) Priority.--The SBA Administrator shall consider prioritizing 
certain small businesses in initial rounds of grantmaking such as--
            (1) a small business concern that employs not more than 100 
        employees per physical location;
            (2) a minority-owned small business concern, a woman-owned 
        small business concern, or a veteran-owned small business 
        concern;
            (3) a small business concern where the owner's pay is equal 
        to or less than 25 times the average worker pay; or
            (4) a small business concern that has not fired or laid off 
        its employees yet, reduced the salaries or wages of its 
        employees, or changed any labor contracts, such as collective 
        bargaining rights, for its employees in the interim, unless 
        exceptions provided within subsection (o)(5) are met.
    (d) Self-Reporting in Application.--The SBA Administrator, in 
coordination with the IRS Commissioner, shall consider the necessary 
maintenance costs, as established in subsection (l), self-reported by 
qualifying additional covered entities, to determine the sufficient 
amount of grants. An eligible recipient seeking such a grant under this 
section shall submit documentation to the SBA and IRS that include--
            (1) documentation verifying the number of full-time 
        equivalent employees on payroll and pay rates for the periods 
        described in subsection (d), including--
                    (A) payroll tax filings reported to the Internal 
                Revenue Service; and
                    (B) State income, payroll, and unemployment 
                insurance filings;
            (2) documentation, including cancelled checks, payment 
        receipts, transcripts of accounts, or other documents verifying 
        payments on covered mortgage obligations, payments on covered 
        lease obligations, and covered utility payments;
            (3) a certification from a representative of the eligible 
        recipient authorized to make such certifications that--
                    (A) the documentation presented is true and 
                correct; and
                    (B) the amount for which the grant is requested was 
                used to retain employees, make interest payments on a 
                covered mortgage obligation, make payments on a covered 
                rent obligation, or make covered utility payments; and
            (4) any other documentation the SBA Administrator 
        determines necessary.
    (e) Additional Processes.--The SBA Administrator shall also be able 
to use the existing direct loan application process administered under 
section 7(b) of the Small Business Act (15 U.S.C. 636(b)) to disburse 
grant funds, to the greatest extent possible, within 7 days after 
receiving an application from an additional covered entity.
    (f) Verification of Eligibility.--Before disbursing amounts under 
this subsection, the SBA Administrator shall verify that the applicant 
is an additional covered entity.
    (g) Verification of Amount.--After disbursing amounts under this 
subsection, the SBA Administrator, in consultation with the IRS 
commissioner, shall verify that the requested amount for grants from an 
additional covered entity did not exceed necessary maintenance costs, 
not later than 1 year after the end date or termination of this Act.
    (h) Overpayment.--Excess compensation in the form of any 
overpayment of grants, as examined and determined by the IRS and SBA in 
post-award reviews, shall be automatically considered as zero-interest 
loans to be paid and returned to the United States Government.
    (i) Exemption From Affiliation Rules.--For purposes of this 
section, the SBA Administrator shall suspend the application of the 
affiliation rules of the Small Business Administration during the 
period beginning on January 31, 2020, and ending on September 30, 2021, 
expect that individual affiliates may not exceed the current small 
business size standard for the industry in which the affiliate 
operates, and any group of affiliates may not receive more than 3 times 
the maximum allowable grant amount under subsection (j).
    (j) Amount of Grants.--The amount of a grant provided under this 
section shall not be more than $100,000. The SBA Administrator shall 
have the discretion to increase this cap for certain qualifying 
additional covered entities to ensure meeting 100 percent necessary 
maintenance costs.
    (k) Automatic Multiple Payments.--Additional covered entities that 
receive their first grant will automatically be considered for and 
delivered another grant at the same level for at least the next four 
months, unless self-opted out or determined by the SBA Administrator.
    (l) Use of Funds Only for Necessary Maintenance Costs.--An 
additional covered entity that receives grants under this section may 
use the grant funds for necessary maintenance costs to address the 
direct effects of the COVID-19 pandemic, including--
            (1) payroll support, including paid sick, medical, or 
        family leave and costs related to the continuation of health 
        care benefits;
            (2) maintaining payroll to retain employees during business 
        disruptions or substantial slowdowns;
            (3) meeting increased costs to obtain materials unavailable 
        from the original source of the additional covered entity due 
        to interrupted supply chains;
            (4) making payments under a lease or mortgage loan, or a 
        contract for utility services, related to a place of operation 
        of the additional covered entity;
            (5) repaying obligations that cannot be met due to revenue 
        losses; and
            (6) other expenses, as deemed appropriate by the 
        Administrator.
    (m) Eligibility for Additional Assistance.--An additional covered 
entity that receives grants under this section may also apply for a 
zero-interest loan under subsection (a) or (b) of section 6 of the 
Small Business Act (15 U.S.C. 636).
    (n) Taxability.--Grant amounts, canceled indebtedness, and other 
awards under this section shall be excluded from gross income for 
purposes of the Internal Revenue Code of 1986.
    (o) Limits on Amount of Grants.--
            (1) Reduction based on reduction in number of employees.--
                    (A) In general.--The amount of grants under this 
                section shall be substantially reduced, but not 
                increased, by multiplying the amount described in 
                subsection (j) by the quotient obtained by dividing--
                            (i) the average number of full-time 
                        equivalent employees per month employed by the 
                        eligible recipient during the covered period; 
                        by
                            (ii)(I) the average number of full-time 
                        equivalent employees per month employed by the 
                        eligible recipient during the period beginning 
                        on February 15, 2019, and ending on June 30, 
                        2019;
                            (II) if the eligible recipient was not in 
                        operation before June 30, 2019, the average 
                        number of full-time equivalent employees per 
                        month employed by the eligible recipient during 
                        the period beginning on January 1, 2020, and 
                        ending on February 29, 2020; or
                            (III) in the case of an eligible recipient 
                        that is a seasonal employer, as determined by 
                        the SBA Administrator, the average number of 
                        full-time equivalent employees per month 
                        employed by the eligible recipient during the 
                        beginning on February 15, 2019, and ending on 
                        June 30, 2019.
                    (B) Calculation of average number of employees.--
                For purposes of subparagraph (A), the average number of 
                full-time equivalent employees shall be determined by 
                calculating the average number of full-time equivalent 
                employees for each pay period falling with a month.
            (2) Reduction relating to salary and wages.--
                    (A) In general.--The amount of grants under this 
                section shall be reduced by the amount of any reduction 
                in total salary or wages of any employee described in 
                subparagraph (B) during the covered period that is in 
                excess of 25 percent of the total salary or wages of 
                the employee during the most recent full quarter during 
                which the employee was employed before the covered 
                period.
                    (B) Employees described.--An employee described in 
                this subparagraph is any employee who did not receive, 
                during any single pay period during 2019, wages or 
                salary at an annualized rate of pay in an amount more 
                than $100,000.
            (3) Exception for tipped workers.--An eligible recipient 
        with tipped employees described in section 3(m)(2)(A) of the 
        Fair Labor Standards Act of 1938 (29 U.S.C. 203(m)(2)(A)) may 
        receive forgiveness for additional wages paid to those 
        employees.
            (4) Ineligibility and exclusion from future consideration 
        of funds.--The SBA Administrator shall consider immediately 
        stopping and excluding any future grants for additional covered 
        entities that fire their employees during the payment period.
            (5) Exception for re-hires.--
                    (A) In general.--In a circumstance described in 
                paragraph (4), the amount of grants under this section 
                shall be determined without regard to a reduction in 
                the number of full-time equivalent employees of an 
                eligible recipient or a reduction in the salary of 1 or 
                more employees of the eligible recipient, as 
                applicable, during the period beginning on February 15, 
                2020, and ending on April 1, 2020.
                    (B) Circumstances.--A circumstance described in 
                this subparagraph is a circumstance--
                            (i) in which--
                                    (I) during the period beginning on 
                                February 15, 2020, and ending on April 
                                1, 2020, there is a reduction, as 
                                compared to February 15, 2020, in the 
                                number of full-time equivalent 
                                employees of an eligible recipient; and
                                    (II) not later than June 30, 2020, 
                                the eligible employer has eliminated 
                                the reduction in the number of full-
                                time equivalent employees;
                            (ii) in which--
                                    (I) during the period beginning on 
                                February 15, 2020, and ending in April 
                                1, 2020, there is a reduction, as 
                                compared to February 15, 2020, in the 
                                salary or wages of 1 or more employees 
                                of the eligible recipient; and
                                    (II) not later than June 30, 2020, 
                                the eligible employer has eliminated 
                                the reduction in the salary or wages of 
                                such employees; or
                            (iii) in which the events described in 
                        clauses (i) and (ii) occur.
    (p) Procedures.--The SBA Administrator shall establish procedures, 
in coordination with the SSA Administrator and IRS Commissioner, to 
verify and document the compliance of an additional covered entity that 
receives grants under this section with the requirements under this 
section in order to prevent waste, fraud, and abuse of such grant 
funds.
    (q) Regulations.--Not later than 30 days after the date of 
enactment of this Act, the SBA Administrator, in consultation with the 
IRS Commissioner, shall issue guidance and regulations implementing 
this section.
    (r) Report.--Not later than March 31, 2022, the SBA Administrator 
shall submit to Congress a report that includes--
            (1) the number of grants made under this section, 
        disaggregated by the number of grants made per 10,000 amount;
            (2) the average amount of a grant award;
            (3) an analysis of the program established under this 
        section and recommendations for improvement;
            (4) the average time from receipt of an application to 
        approval of grant under this section; and
            (5) the average time from approval of grant to disbursement 
        of grant funds.
    (s) Authorizations of Appropriations.--There is authorization to be 
appropriated $500,000,000,000 of the SBA Administrator to carry out 
this section. Congress shall consider increasing funds at the request 
of the SBA Administrator.
    (t) Termination.--The authority to carry out grants under this 
subsection shall terminate on April 30, 2021.
                                 <all>