[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3518 Introduced in Senate (IS)]
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116th CONGRESS
2d Session
S. 3518
To provide grants to small business concerns, private nonprofit
organizations, and small agricultural cooperatives affected by COVID-
19, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 18, 2020
Mr. Cardin (for himself and Ms. Cantwell) introduced the following
bill; which was read twice and referred to the Committee on Small
Business and Entrepreneurship
_______________________________________________________________________
A BILL
To provide grants to small business concerns, private nonprofit
organizations, and small agricultural cooperatives affected by 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 ``COVID-19 Recovery Grants for Small
Businesses Act''.
SEC. 2. DEFINITIONS.
In this Act--
(1) the terms ``Administration'' and ``Administrator'' mean
the Small Business Administration and the Administrator
thereof;
(2) the term ``eligible small business concern'' means a
small business concern that--
(A) meets the applicable size standard established
under section 3 of the Small Business Act (15 U.S.C.
632);
(B) has not less than 2 employees and not more than
50 employees;
(C) due to the effects of COVID-19, suffered--
(i) a loss of revenue in 1 month greater
than 50 percent as compared to the same month
in the previous year; or
(ii) in the case of a business concern that
has been in operation for not less than 4
months, a loss of revenue in 1 month greater
than 50 percent as compared to the average of
the 3 previous months;
(D) can demonstrate an inability to pay obligations
or stay up-to-date on accounts or payroll; and
(E) submitted an application for a loan under
section 7(b)(2) of the Small Business Act (15 U.S.C.
636(b)(2)) and was denied assistance under such section
because the small business concern is unable to repay
the loan; and
(3) the term ``small business concern'' has the meaning
given the term in section 3 of the Small Business Act (15
U.S.C. 632).
SEC. 3. ECONOMIC INJURY GRANTS.
(a) Grants.--The Administration shall provide assistance to
eligible small business concerns, private nonprofit organizations, and
small agricultural cooperatives that have suffered a substantial
economic injury, directly or indirectly, as a result of COVID-19.
(b) Awarding of Grants and Updates.--The Administration shall--
(1) award grants under this section as expeditiously as
possible; and
(2) on a monthly basis until the date on which the
authority under this section terminates, update the Committee
on Small Business and Entrepreneurship and the Committee on
Appropriations of the Senate and the Committee on Small
Business and the Committee on Appropriations of the House of
Representatives on--
(A) the number of grants awarded under this
section; and
(B) the geographic distribution of the grants by
State and county.
(c) Amount of Grant.--
(1) In general.--Except as provided in paragraph (2), a
grant provided under this section shall be in an amount that is
not more than $50,000.
(2) Increased grant amount.--The Administrator may make a
grant under this section of not more than $100,000 if the
Administrator demonstrates that doing so is necessary to assist
eligible small business concerns, private nonprofit
organizations, and small agricultural cooperatives that the
Administrator determines are vital to their local economies.
(3) Single award.--No eligible small business concern,
private nonprofit organization, or small agricultural
cooperative may receive or directly benefit from more than 1
award made under this section.
(d) Use of Funds.--An eligible small business concern, private
nonprofit organization, or small agricultural cooperative that receives
a grant under this section may use the grant funds to address the
effects of COVID-19 through any of the permissible uses of funds under
section 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2)).
(e) Application.--
(1) In general.--An eligible small business concern,
private nonprofit organization, or small agricultural
cooperative desiring a grant under this section shall submit to
the Administration an application at such time, in such manner,
and containing such information as the Administration may
require.
(2) Priority.--The Administrator shall--
(A) establish selection criteria to ensure that
eligible small business concerns, private nonprofit
organizations, and small agricultural cooperatives that
are hardest hit by the effects of COVID-19 receive
priority in the event that funding is not sufficient to
provide grants to all that submit applications under
paragraph (1);
(B) identify industry sectors for prioritization
that have suffered uniquely and disproportionately from
COVID-19; and
(C) give priority to an applicant proposing to use
grant funds for--
(i) providing paid sick leave to employees
unable to work due to the direct effects of
COVID-19;
(ii) maintaining payroll to retain
employees during business disruptions or
substantial slowdowns;
(iii) making rent and mortgage payments; or
(iv) repaying obligations that cannot be
met due to revenue losses.
(f) Procedures.--The Administrator shall establish procedures to
discourage and prevent waste, fraud, and abuse by applicants and
recipients of grants under this section.
(g) Penalties for Fraud and Misapplication of Funds.--Any applicant
or recipient of a grant provided under this section shall be subject to
all applicable provisions of Federal law, including section 1001 of
title 18, United States Code, and the provisions of section 123.9 of
title 13, Code of Federal Regulations, or any successor regulation,
relating to the misapplication of loan proceeds shall apply to grants
provided under this section to the same extent as if those grants were
loans provided under section 7(b)(2) of the Small Business Act (15
U.S.C. 636(b)(2)).
(h) Inspector General Audit.--Not later than 180 days after the
date on which the Administrator begins to provide assistance under this
section, the Inspector General of the Administration shall--
(1) conduct an audit of grants made under this section,
which shall identify any discrepancies or irregularities in the
grants; and
(2) submit to the Committee on Small Business and
Entrepreneurship and the Committee on Appropriations of the
Senate and the Committee on Small Business and the Committee on
Appropriations of the House of Representatives a copy of the
audit conducted under paragraph (1).
(i) Authorization of Appropriations.--There is authorized to be
appropriated such sums as may be necessary to carry out this section.
(j) Termination.--The authority to carry out grants under this
section shall terminate on September 30, 2021.
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