[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3554 Introduced in Senate (IS)]
<DOC>
116th CONGRESS
2d Session
S. 3554
To provide assistance to small businesses impacted by COVID-19, and for
other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 20, 2020
Mr. Cardin (for himself, Ms. Cantwell, Mrs. Shaheen, Mr. Markey, Mr.
Booker, Mr. Coons, Ms. Hirono, Ms. Duckworth, and Ms. Rosen) introduced
the following bill; which was read twice and referred to the Committee
on Small Business and Entrepreneurship
_______________________________________________________________________
A BILL
To provide assistance to small businesses impacted 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 by Enhancing Loan,
Investment, and Education Funds for Small Businesses Act of 2020'' or
the ``COVID-19 RELIEF for Small Businesses Act of 2020''.
SEC. 2. FINDINGS.
Congress finds that--
(1) the 30,700,000 small businesses in the United States
employ more than 47 percent of the private workforce;
(2) small business supply chain firms account for almost
1,000,000 small businesses and about 10,000,000 jobs, playing a
key role in the United States supply chain by providing goods
and services to large corporations and Federal, State, and
local government agencies;
(3) the economic disruptions related to COVID-19 in the
United States are unlike any that we have seen in the past
couple of decades;
(4) as a result of the global pandemic caused by COVID-19,
many small businesses in the United States have suffered
because--
(A) their supply chains have been disrupted;
(B) their establishments are experiencing decreased
foot traffic and sales; and
(C) their employees who have contracted the virus
will need paid time off to avoid infecting others;
(5) small business owners affected by COVID-19 are finding
it difficult or impossible to--
(A) make loan payments on existing debts;
(B) pay their employees;
(C) pay their vendors;
(D) purchase materials, supplies, or inventory;
(E) pay their rent, mortgage, or other operating
expenses; or
(F) secure financing for their business;
(6) a significant number of small businesses will not
qualify for loans under the existing disaster loan program of
the Administration;
(7) the absence of resources for vulnerable small
businesses that cannot access programs of the Administration
will undoubtedly leave many of them to fail; and
(8) a new source of Federal support is necessary to help
businesses that have no other place to turn.
SEC. 3. PURPOSE.
The purpose of this Act is to mitigate economic injury to small
business concerns and stabilize the United States economy by
strengthening the loan, investment, procurement assistance, and
management education programs of the Administration and by establishing
a new grant program at the Administration for the small business
concerns hardest hit by COVID-19.
SEC. 4. DEFINITIONS.
In this Act--
(1) the term ``Administration'' and ``Administrator'' mean
the Small Business Administration and the Administrator
thereof; and
(2) 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. 5. ECONOMIC INJURY GRANTS FOR SMALL BUSINESS CONCERNS.
(a) Purpose.--The purpose of this section is to--
(1) make grants available to small business concerns
affected by COVID-19 that lack access to credit through the
existing disaster loan program of the Administration; and
(2) ensure resources are available for vulnerable small
business concerns that are unlikely to survive without a new
source of Federal support.
(b) Definition of Eligible Small Business Concern.--The term
``eligible small business concern'' means a small business concern
that--
(1) meets the applicable size standard established under
section 3 of the Small Business Act (15 U.S.C. 632);
(2) has not less than 2 employees and not more than 50
employees;
(3) due to the effects of COVID-19, suffered--
(A) a loss of revenue in 1 month greater than 50
percent as compared to the same month in the previous
year; or
(B) 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;
(4) can demonstrate an inability to pay obligations or stay
up-to-date on accounts or payroll; and
(5) 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.
(c) 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.
(d) 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.
(e) 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.
(f) 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)).
(g) 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.
(h) Procedures.--The Administrator shall establish procedures to
discourage and prevent waste, fraud, and abuse by applicants and
recipients of grants under this section.
(i) 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)).
(j) 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).
(k) Authorization of Appropriations.--There is authorized to be
appropriated to the Administration $10,000,000,000 to carry out this
section.
(l) Termination.--The authority to carry out grants under this
section shall terminate on September 30, 2021.
SEC. 6. ECONOMIC INJURY DISASTER LOANS.
(a) Purpose.--The purpose of this section is to ensure that owners
of small business concerns have access to additional necessary funding
to cover continuity-of-operation and risk mitigation improvements.
(b) Definition of Eligible Small Business Concern.--In this
section, the term ``eligible small business concern'' means a small
business concern that--
(1) meets the applicable size standard established under
section 3 of the Small Business Act (15 U.S.C. 632); and
(2) is receiving assistance under section 7(b)(2) of the
Small Business Act (15 U.S.C. 636(b)(2)) related to COVID-19.
(c) Additional Amounts.--The Administrator may increase by 20
percent the amount received by an eligible small business concern under
section 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2)) to
cover continuity-of-operation and risk mitigation improvements,
including telework capability, offsite record keeping, redundancy, the
administrative costs of establishing paid sick leave, and presenteeism
prevention.
(d) Expediting Small Economic Injury Disaster Loans.--With respect
to a loan made under section 7(b)(2) of the Small Business Act (15
U.S.C. 636(b)(2)) in response to COVID-19, if the loan does not exceed
$350,000, the Administration may--
(1) approve an applicant based solely on the credit score
of the applicant, and in this circumstance, shall not require
an applicant to submit a tax return or a tax return transcript;
or
(2) use other appropriate methods to determine an
applicant's ability to repay.
(e) Emergencies Involving Federal Primary Responsibility Qualifying
for Small Business Administration Assistance.--Section 7(b)(2) of the
Small Business Act (15 U.S.C. 636(b)(2)) is amended--
(1) in subparagraph (A), by striking ``or'' at the end;
(2) in subparagraph (B), by striking ``or'' at the end;
(3) in subparagraph (C), by striking ``or'' at the end;
(4) by redesignating subparagraph (D) as subparagraph (E);
(5) by inserting after subparagraph (C) the following:
``(D) an emergency involving Federal primary
responsibility determined to exist by the President
under the section 501(b) of the Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42 U.S.C.
5191(b)); or'';
(6) in subparagraph (E), as so redesignated--
(A) by striking ``or (C)'' and inserting ``(C), or
(D)'';
(B) by striking ``disaster declaration'' each place
it appears and inserting ``disaster or emergency
declaration'';
(C) by striking ``disaster has occurred'' and
inserting ``disaster or emergency has occurred'';
(D) by striking ``such disaster'' and inserting
``such disaster or emergency''; and
(E) by striking ``disaster stricken'' and inserting
``disaster- or emergency-stricken''; and
(7) in the flush matter following subparagraph (E), by
striking the period at the end and inserting the following: ``:
Provided further, That for purposes of subparagraph (D), the
Administrator shall deem that such an emergency affects each
State or subdivision thereof (including counties), and that
each State or subdivision has sufficient economic damage to
small business concerns to qualify for assistance under this
paragraph and the Administrator shall accept applications for
such assistance immediately.''.
SEC. 7. WAIVERS ON PRINCIPAL AND INTEREST FOR 7(A), 504, AND
MICROLOANS.
(a) Definition of Covered Loan.--In this section, the term
``covered loan'' means a loan that is--
(1) guaranteed by the Administration under--
(A) section 7(a) of the Small Business Act (15
U.S.C. 636(a)), including a loan made under the
Community Advantage Pilot Program of the
Administration, the Export Express Program under
paragraph (34) of such section 7(a), the Export Working
Capital Program under paragraph (14) of such section
7(a), or the International Trade Loan Program under
paragraph (16) of such section 7(a); or
(B) title V of the Small Business Investment Act of
1958 (15 U.S.C. 695 et seq.); or
(2) made by an intermediary to a small business concern (as
defined in section 3 of the Small Business Act (15 U.S.C. 632))
using loans or grants received under section 7(m) of the Small
Business Act (15 U.S.C. 636(m)).
(b) Sense of Congress.--It is the sense of Congress that--
(1) all borrowers are adversely affected by COVID-19;
(2) relief payments by the Administration are appropriate
for all borrowers; and
(3) the Administration should encourage lenders to extend
the maturity of covered loans so as to avoid any increase in
debt payments by borrowers at the end of the deferral period.
(c) Interest Payments.--
(1) In general.--The Administrator shall pay the principal,
interest, and any associated fees that are owed on a covered
loan--
(A) with respect to a covered loan made before the
date of enactment of this Act, for the 6-month period
beginning with the next payment due on the covered
loan; and
(B) with respect to a covered loan made during the
period beginning on the date of enactment of this Act
and ending on the date that is 6 months after such date
of enactment, for the 6-month period beginning with the
first payment due on the covered loan.
(2) Timing of payment.--The Administrator shall begin
making payments under paragraph (1) on a covered loan not later
than 30 days after the date on which the first such payment is
due.
(3) Application of payment.--Any payment made by the
Administrator under paragraph (1) shall be applied to the
covered loan such that the borrower is relieved of the
obligation to pay that amount.
(d) Other Requirements.--The Administrator shall--
(1) communicate and coordinate with the Federal Deposit
Insurance Corporation, the Office of the Comptroller of the
Currency, and State bank regulators to encourage those entities
to not require lenders to increase their reserves on account of
receiving payments made by the Administrator under subsection
(c);
(2) waive statutory limits on covered loan durations for
any lender that offers a deferral and extends the maturity of
covered loan products during the 1-year period following the
date of enactment of this Act; and
(3) extend site visit requirements to 60 days for covered
loan defaults and 90 days for nonpayment to provide more time
because of the potential of higher volumes, travel
restrictions, and the inability to access some properties
during the COVID-19 pandemic.
(e) Rule of Construction.--Nothing in this section may be construed
to limit the authority of the Administrator to make payments pursuant
to subsection (c) with respect to a covered loan solely because the
covered loan has been sold in the secondary market.
(f) Authorization of Appropriations.--There is authorized to be
appropriated to the Administrator $16,800,000,000 to carry out this
section.
SEC. 8. TEMPORARY FEE REDUCTIONS.
(a) Purpose.--The purpose of the section is to waive borrower and
lender fees on loans, including a permanent fix to waive fees for
veterans and their spouses.
(b) Administrative Fee Waiver.--
(1) In general.--During the period beginning on the date of
enactment of this Act and ending on September 30, 2021, and to
the extent that the cost of such elimination or reduction of
fees is offset by appropriations, with respect to each loan
guaranteed under section 7(a) of the Small Business Act (15
U.S.C. 636(a)) (including a recipient of assistance under the
Community Advantage Pilot Program of the Administration) for
which an application is approved or pending approval on or
after the date of enactment of this Act, the Administrator
shall--
(A) in lieu of the fee otherwise applicable under
section 7(a)(23)(A) of the Small Business Act (15
U.S.C. 636(a)(23)(A)), collect no fee or reduce fees to
the maximum extent possible; and
(B) in lieu of the fee otherwise applicable under
section 7(a)(18)(A) of the Small Business Act (15
U.S.C. 636(a)(18)(A)), collect no fee or reduce fees to
the maximum extent possible.
(2) Application of fee eliminations or reductions.--To the
extent that amounts are made available to the Administrator for
the purpose of fee eliminations or reductions under paragraph
(1), the Administrator shall--
(A) first use any amounts provided to eliminate or
reduce fees paid by small business borrowers under
clauses (i) through (iii) of section 7(a)(18)(A) of the
Small Business Act (15 U.S.C. 636(a)(18)(A)), to the
maximum extent possible; and
(B) then use any amounts provided to eliminate or
reduce fees under 7(a)(23)(A) of the Small Business Act
(15 U.S.C. 636(a)(23)(A)).
(c) Exception to Guarantee Fee Waiver for Veterans.--Section
7(a)(31)(G) of the Small Business Act (15 U.S.C. 636(a)(31)(G)) is
amended--
(1) by striking clause (ii); and
(2) by redesignating clause (iii) as clause (ii).
(d) Temporary Fee Elimination for the 504 Loan Program.--
(1) In general.--During the period beginning on the date of
enactment of this Act and ending on September 30, 2021, and to
the extent the cost of such elimination in fees is offset by
appropriations, with respect to each project or loan guaranteed
by the Administrator pursuant to title V of the Small Business
Investment Act of 1958 (15 U.S.C. 695 et seq.) for which an
application is approved or pending approval on or after the
date of enactment of this Act--
(A) the Administrator shall, in lieu of the fee
otherwise applicable under section 503(d)(2) of the
Small Business Investment Act of 1958 (15 U.S.C.
697(d)(2)), collect no fee; and
(B) a development company shall, in lieu of the
processing fee under section 120.971(a)(1) of title 13,
Code of Federal Regulations (relating to fees paid by
borrowers), or any successor thereto, collect no fee.
(2) Reimbursement for waived fees.--
(A) In general.--To the extent that the cost of
such payments is offset by appropriations, the
Administrator shall reimburse each development company
that does not collect a processing fee pursuant to
paragraph (1)(B).
(B) Amount.--The payment to a development company
under subparagraph (A) shall be in an amount equal to
1.5 percent of the net debenture proceeds for which the
development company does not collect a processing fee
pursuant to paragraph (1)(B).
SEC. 9. GUARANTEE AMOUNTS.
(a) Purpose.--The purpose of this section is to increase loan
guarantee amounts in order to mitigate risk for lenders and keep credit
flowing, including an emphasis on underserved borrowers.
(b) 7(a) Loan Guarantees.--
(1) In general.--Section 7(a)(2)(A) of the Small Business
Act (15 U.S.C. 636(a)(2)(A)) is amended by striking ``), such
participation by the Administration shall be equal to'' and all
that follows through the period at the end and inserting ``or
the Community Advantage Pilot Program of the Administration),
such participation by the Administration shall be equal to 90
percent of the balance of the financing outstanding at the time
of disbursement of the loan.''.
(2) Termination.--Effective September 30, 2021, section
7(a)(2)(A) of the Small Business Act (15 U.S.C. 636(a)(2)(A)),
as amended by paragraph (1), is amended to read as follows:
``(A) In general.--Except as provided in
subparagraphs (B), (D), and (E), in an agreement to
participate in a loan on a deferred basis under this
subsection (including a loan made under the Preferred
Lenders Program), such participation by the
Administration shall be equal to--
``(i) 75 percent of the balance of the
financing outstanding at the time of
disbursement of the loan, if such balance
exceeds $150,000; or
``(ii) 85 percent of the balance of the
financing outstanding at the time of
disbursement of the loan, if such balance is
less than or equal to $150,000.''.
(c) Express Loan Guarantee Amounts and Loan Size Increases.--
(1) Temporary modification.--Section 7(a)(31) of the Small
Business Act (15 U.S.C. 636(a)(31)) is amended--
(A) in subparagraph (A)(iv), by striking ``with a
guaranty rate of not more than 50 percent.'' and
inserting the following: ``with a guarantee rate--
``(I) for a loan in an amount less
than or equal to $350,000, of not more
than 90 percent; and
``(II) for a loan in an amount
greater than $350,000, of not more than
75 percent.''; and
(B) in subparagraph (D), by striking ``$350,000''
and inserting ``$1,000,000''.
(2) Increase in availability.--Effective September 30,
2021, section 7(a)(31) of the Small Business Act (15 U.S.C.
636(a)(31)), as amended by paragraph (1), is amended--
(A) in subparagraph (A)(iv), by striking
``guarantee rate'' and all that follows through the
period at the end and inserting ``guarantee rate of not
more than 50 percent.''; and
(B) in subparagraph (D), by striking ``$1,000,000''
and inserting ``$500,000''.
SEC. 10. MAXIMUM LOAN AMOUNT AND PROGRAM LEVELS FOR 7(A) LOANS.
(a) Purpose.--The purpose of this section is to temporarily
increase the maximum loan size in order to expand the reach of this
long-term capital.
(b) Maximum Loan Amount.--During the period beginning on the date
of enactment of this Act and ending on September 30, 2021, with respect
to any loan guaranteed under section 7(a) of the Small Business Act (15
U.S.C. 636(a)) for which an application is approved or pending approval
on or after the date of enactment of this Act, the maximum loan amount
shall be $10,000,000.
(c) Program Levels.--During each of fiscal years 2020 and 2021,
commitments for general business loans authorized under section 7(a) of
the Small Business Act (15 U.S.C. 636(a)) shall not exceed
$80,000,000,000.
SEC. 11. MAXIMUM LOAN AMOUNT FOR 504 LOANS.
(a) Purpose.--The purpose of this section is to make refinancing of
fixed assets more flexible for small business concerns seeking
immediate financing and relief from the COVID-19 crisis.
(b) Temporary Increase.--During the period beginning on the date of
enactment of this Act and ending on September 30, 2021, with respect to
each project or loan guaranteed by the Administrator pursuant to title
V of the Small Business Investment Act of 1958 (15 U.S.C. 695 et seq.)
for which an application is approved or pending approval on or after
the date of enactment of this Act, the maximum loan amount shall be
$10,000,000.
(c) Permanent Increase for Small Manufacturers.--Effective on
October 1, 2021, section 502(2)(A)(iii) of the Small Business
Investment Act of 1958 (15 U.S.C. 696(2)(A)(iii)) is amended by
striking ``$5,500,000'' and inserting ``$10,000,000''.
SEC. 12. LEVERAGING 504 LOANS FOR REFINANCING AND COMMUNITY DEVELOPMENT
LENDING.
(a) Purpose.--The purpose of this section is to make refinancing
loans under title V of the Small Business Investment Act of 1958 (15
U.S.C. 695 et seq.) more flexible so that lenders can more effectively
and efficiently respond to the needs of small business concerns seeking
immediate financing and relief from the economic impacts of COVID-19.
(b) Low-Interest Refinancing Under the Local Development Business
Loan Program.--
(1) In general.--Section 502(7) of the Small Business
Investment Act of 1958 (15 U.S.C. 696(7)) is amended by adding
at the end the following:
``(C) Refinancing not involving expansions.--
``(i) Definitions.--In this subparagraph--
``(I) the term `borrower' means a
small business concern that submits an
application to a development company
for financing under this subparagraph;
``(II) the term `eligible fixed
asset' means tangible property relating
to which the Administrator may provide
financing under this section; and
``(III) the term `qualified debt'
means indebtedness--
``(aa) that--
``(AA) was incurred
not less than 2 years
before the date of the
application for
assistance under this
subparagraph;
``(BB) is a
commercial loan;
``(CC) the proceeds
of which were used to
acquire an eligible
fixed asset;
``(DD) was incurred
for the benefit of the
small business concern;
and
``(EE) is
collateralized by
eligible fixed assets;
and
``(bb) for which the
borrower has been current on
all payments for not less than
1 year before the date of the
application.
``(ii) Authority.--A project that does not
involve the expansion of a small business
concern may include the refinancing of
qualified debt if--
``(I) the amount of the financing
is not more than 90 percent of the
value of the collateral for the
financing, except that, if the
appraised value of the eligible fixed
assets serving as collateral for the
financing is less than the amount equal
to 125 percent of the amount of the
financing, the borrower may provide
additional cash or other collateral to
eliminate any deficiency;
``(II) the borrower has been in
operation for all of the 2-year period
ending on the date of the loan;
``(III) the financing will provide
a substantial benefit to the borrower
when prepayment penalties, financing
fees, and other financing costs are
accounted for; and
``(IV) for a financing for which
the Administrator determines there will
be an additional cost attributable to
the refinancing of the qualified debt,
the borrower agrees to pay a fee in an
amount equal to the anticipated
additional cost.
``(iii) Financing for business expenses.--
``(I) Financing for business
expenses.--The Administrator may
provide financing to a borrower that
receives financing that includes a
refinancing of qualified debt under
clause (ii), in addition to the
refinancing under clause (ii), to be
used solely for the payment of business
expenses.
``(II) Application for financing.--
An application for financing under
subclause (I) shall include--
``(aa) a specific
description of the expenses for
which the additional financing
is requested; and
``(bb) an itemization of
the amount of each expense.
``(III) Condition on additional
financing.--A borrower may not use any
part of the financing under this clause
for non-business purposes.
``(iv) Loans based on jobs.--
``(I) Job creation and retention
goals.--
``(aa) In general.--The
Administrator may provide
financing under this
subparagraph for a borrower
that meets the job creation
goals under subsection (d) or
(e) of section 501.
``(bb) Alternate job
retention goal.--The
Administrator may provide
financing under this
subparagraph to a borrower that
does not meet the goals
described in item (aa) in an
amount that is not more than
the product obtained by
multiplying the number of
employees of the borrower by
$75,000.
``(II) Number of employees.--For
purposes of subclause (I), the number
of employees of a borrower is equal to
the sum of--
``(aa) the number of full-
time employees of the borrower
on the date on which the
borrower applies for a loan
under this subparagraph; and
``(bb) the product obtained
by multiplying--
``(AA) the number
of part-time employees
of the borrower on the
date on which the
borrower applies for a
loan under this
subparagraph; by
``(BB) the quotient
obtained by dividing
the average number of
hours each part time
employee of the
borrower works each
week by 40.
``(v) Nondelegation.--Notwithstanding
section 508(e), the Administrator may not
permit a premier certified lender to approve or
disapprove an application for assistance under
this subparagraph.
``(vi) Total amount of loans.--The
Administrator may provide not more than a total
of $7,500,000,000 of financing under this
subparagraph for each fiscal year.''.
(2) Conforming amendment.--Section 521 of division E of the
Consolidated Appropriations Act, 2016 (15 U.S.C. 696 note) is
repealed.
(c) Intent of Congress Regarding Refinancing Existing Business
Debt.--It is the intent of Congress that the refinancing of existing
business debt is an authorized use of a financing under the program
under title V of the Small Business Investment Act of 1958 (15 U.S.C.
695 et seq.).
(d) 504 Debt Refinance With Expansion.--Section 502(7)(B) of the
Small Business Investment Act of 1958 (15 U.S.C. 696(7)(B)) is amended,
in the matter preceding clause (i), by striking ``50'' and inserting
``100''.
SEC. 13. RECOVERY ASSISTANCE FOR MICROBUSINESSES.
(a) Purpose.--The purpose of this section is to allow lenders to
deploy more capital, give borrowers more time to repay, increase rural
lending, and cut technical assistance red tape.
(b) Loans to Intermediaries.--
(1) In general.--Section 7(m) of the Small Business Act (15
U.S.C. 636(m)) is amended--
(A) in paragraph (3)(C)--
(i) by striking ``and $6,000,000'' and
inserting ``$10,000,000, in the aggregate,'';
and
(ii) by inserting before the period at the
end the following: ``, and $4,500,000 in any of
those remaining years'';
(B) in paragraph (4)--
(i) in subparagraph (A), by striking
``subparagraph (C)'' each place that term
appears and inserting ``subparagraphs (C) and
(G)'';
(ii) in subparagraph (C)(i)--
(I) by striking ``subparagraph
(A)'' and inserting ``subparagraphs (A)
and (G)''; and
(II) in subclause (II)--
(aa) by striking ``has a
portfolio'' and inserting
``has--
``(aa) a portfolio'';
(bb) in item (aa), by
striking the period at the end
and inserting ``; or''; and
(cc) by adding at the end
the following:
``(bb) a portfolio of loans
made under this subsection of
which not less than 25 percent
is serving rural areas during
the period of the
intermediary's participation in
the program.''; and
(iii) by adding at the end the following:
``(G) Grant amounts based on appropriations.--In
any fiscal year in which the amount appropriated to
make grants under subparagraph (A) is sufficient to
provide to each intermediary that receives a loan under
paragraph (1)(B)(i) a grant of not less than 25 percent
of the total outstanding balance of loans made to the
intermediary under this subsection, the Administration
shall make a grant under subparagraph (A) to each
intermediary of not less than 25 percent and not more
than 30 percent of that total outstanding balance for
the intermediary.''; and
(C) by striking paragraph (7) and inserting the
following:
``(7) Program funding for microloans.--Under the program
authorized by this subsection, the Administration may fund, on
a competitive basis, not more than 300 intermediaries.''.
(2) Amendment in 2021.--Effective on October 1, 2021,
section 7(m)(3)(C) of the Small Business Act (15 U.S.C.
636(m)(3)(C)) is amended--
(A) by striking ``$10,000,000'' and by inserting
``$7,000,000''; and
(B) by striking ``$4,500,000'' and inserting
``$3,000,000''.
(c) Temporary Waiver of Technical Assistance Grants Matching
Requirements and Flexibility on Pre- and Post-Loan Assistance.--During
the period beginning on the date of enactment of this Act and ending on
September 30, 2021, the Administration shall waive--
(1) the requirement to contribute non-Federal funds under
section 7(m)(4)(B) of the Small Business Act (15 U.S.C.
636(m)(4)(B)); and
(2) the limitation on amounts allowed to be expended to
provide information and technical assistance under clause (i)
of section 7(m)(4)(E) of the Small Business Act (15 U.S.C.
636(m)(4)(E)) and enter into third-party contracts to provide
technical assistance under clause (ii) of such section
7(m)(4)(E).
(d) Temporary Duration of Loans to Borrowers.--
(1) In general.--During the period beginning on the date of
enactment of this Act and ending on September 30, 2021, the
duration of a loan made by an eligible intermediary under
section 7(m) of the Small Business Act (15 U.S.C. 636(m))--
(A) to an existing borrower may be extended to not
more than 8 years; and
(B) to a new borrower may be not more than 8 years.
(2) Reversion.--On and after October 1, 2021, the duration
of a loan made by an eligible intermediary to a borrower under
section 7(m) of the Small Business Act (15 U.S.C. 636(m)) shall
be 7 years or such other amount established by the
Administrator.
(e) Program Levels.--Section 20 of the Small Business Act (15
U.S.C. 631 note) is amended by adding at the end the following:
``(h) Microloan Program.--For each of fiscal years 2021 through
2025, the Administration is authorized to make--
``(1) $80,000,000 in technical assistance grants, as
provided in section 7(m); and
``(2) $110,000,000 in direct loans, as provided in section
7(m).''.
(f) Authorization of Appropriations.--In addition to amounts
provided under the Consolidated Appropriations Act, 2020 (Public Law
116-93) for the program established under section 7(m) of the Small
Business Act (15 U.S.C. 636(m)), there is authorized to be appropriated
for fiscal year 2020, to remain available until expended--
(1) $50,000,000 to provide technical assistance grants
under such section 7(m); and
(2) $7,000,000 to provide direct loans under such section
7(m).
SEC. 14. ELECTRONIC SUBMISSIONS FOR THE SMALL BUSINESS INVESTMENT
COMPANY PROGRAM.
(a) Purpose.--The purpose of this section is to quickly provide
capital to struggling small business concerns by allowing electronic
signatures to expedite the approval process of the Administration for
additional investment funds, especially as staff telework.
(b) Electronic Submissions.--Unless otherwise prohibited by law or
regulation, the Administration shall permit any document submitted
under section 103 of the Small Business Investment Act of 1958 (15
U.S.C. 662) or pursuant to a regulation carrying out title V of such
Act (15 U.S.C. 695 et seq.) to be submitted electronically, including
by permitting an electronic signature for any signature that is
required on such a document.
(c) Rule of Construction.--Nothing in this section shall be
construed to preempt, supersede, or otherwise prohibit private sector
requirements, covenants, customary practices, obligations, or legal
prohibitions against electronic signatures.
SEC. 15. BUSINESS STABILIZATION DIRECT LOAN PROGRAM.
(a) Definition of Eligible Borrower.--In this section, the term
``eligible borrower'' means a small business concern that is located in
the United States (as defined in section 4(a) of the Small Business Act
(15 U.S.C. 633(a))) with a confirmed or presumed positive case of
COVID-19.
(b) Program.--The Administrator shall carry out a program to make
loans directly to eligible borrowers.
(c) Use of Funds.--In addition to the use of loan proceeds
permitted under section 7(a) of the Small Business Act (15 U.S.C.
636(a)), loans made under this section may be used for the following
purposes:
(1) To make periodic payments of principal and interest,
for a period not to exceed 12 months, on a loan or a loan
guarantee made to an eligible borrower that meets the
eligibility standards of such section 7(a).
(2) To provide benefits to employees of the eligible
borrower, including group life insurance, disability insurance,
sick leave, annual leave, educational benefits, paid family
leave, or retirement benefits, including a pension plan or
individual retirement account.
(3) To pay wages to employees of the eligible borrower, and
related State and Federal payroll taxes, except that loan
proceeds may not be used to pay amounts under a garnishment
order issued by an agency of a State or Federal Government.
(4) To provide technology, hardware, or software for a
shift to telework or remote work for employees of the eligible
borrower to enable continuity of operations.
(5) To pay rent or utilities due or owed on any place of
business of the eligible borrower.
(6) To refinance an existing debt, including interest, in
an amount not to exceed 50 percent of the amount of the debt.
(7) To provide floor plan financing or other revolving line
of credit.
(8) To pay past-due Federal, State, or local payroll taxes,
sales taxes, or other similar taxes that are required to be
collected by the eligible borrower and held in trust on behalf
of a Federal, State, or local government entity.
(9) To provide employees and patrons of the eligible
borrower with the necessary items specified by any public
health authority to mitigate the spread of COVID-19.
(d) Loan Terms.--
(1) Amount.--Loans made under this section may not exceed
$2,500,000.
(2) Disbursement.--Not less than 10 percent, but not more
than 20 percent, of the proceeds of a loan made under this
section shall be disbursed not later than 5 calendar days after
a loan is approved under this section.
(3) Term.--Loans made under this section shall be for a
term of 10 years, and an eligible borrower shall not be
required to repay such loan during the 12-month period
beginning on the date of disbursement of the loan.
(4) Interest; fees.--The Administrator may not charge any
interest or fees for a loan made under this section.
(e) Collateral.--The Administrator--
(1) shall not decline to make a loan under this section to
an otherwise eligible borrower due solely to inadequate
collateral; and
(2) shall accept any available collateral, including
subordinated liens, to secure a loan made under this section.
(f) Forgiveness.--If an eligible borrower that receives loan
proceeds under this section demonstrates to the Administrator that the
number of employees of the eligible borrower on December 31, 2021, is
greater than or equal to the number of employees of the eligible
borrower on December 31, 2019, the Administrator shall forgive not more
than 50 percent of the outstanding principal on such loan.
(g) Sunset.--
(1) In general.--Except as provided in paragraph (2), the
Administrator may not make a loan under this section after
September 30, 2022.
(2) Extension.--The Administrator may extend authority to
make loans under this section by an additional 6 months by
notifying Congress, in writing, within 10 calendar days before
any extension.
(h) Emergency Rulemaking Authority.--In issuing rules to carry out
this section under section 25, the Administrator may issue rules to
establish a secondary market for loans made under this section.
(i) Authorization of Appropriations.--There is authorized to be
appropriated to the Administrator of the Small Business Administration
such sums as may be necessary to pay for the cost (as defined in
section 502 of the Congressional Budget Act of 1974 (2 U.S.C. 661a)) of
making $100,000,000,000 in direct loans under this section.
SEC. 16. STATE TRADE EXPANSION PROGRAM.
The Administrator may use amounts appropriated to carry out the
State Trade Expansion Program established under section 22(l) of the
Small Business Act (15 U.S.C. 649(l)) for fiscal years 2018 and 2019
that remain unobligated or unexpended to carry out the State Trade
Expansion Program through the end of fiscal year 2021.
SEC. 17. CONTRACTING AND ENTREPRENEURIAL DEVELOPMENT ASSISTANCE.
(a) Purpose.--The purpose of this section is to provide--
(1) flexibility to small business Federal suppliers and to
the Federal Government to more quickly award contracting
dollars to small business concerns in times of economic
uncertainty and downturn related to COVID-19; and
(2) additional funds to resource partners of the
Administration, such as small business development centers,
women's business centers, and SCORE to conduct outreach to
small business concerns affected by COVID-19, including by
increasing their virtual outreach capacity.
(b) Definitions.--In this section--
(1) the term ``contracting officer'' has the meaning given
the term in section 36(e) of the Small Business Act (15 U.S.C.
657f(e));
(2) the term ``covered entity'' means a small business
concern or nonprofit organization--
(A) that is a party to a contract with a Federal
agency; and
(B) for which the contractor performance is
adversely impacted as a result of COVID-19;
(3) the term ``economically disadvantaged women-owned small
business'' has the meaning given the term in section 127.102 of
title 13, Code of Federal Regulations, or any succcessor
regulation;
(4) the term ``HUBZone small business concern'' has the
meaning given the term in section 31(b) of the Small Business
Act (15 U.S.C. 657a(b));
(5) the term ``SCORE'' means the Service Corps of Retired
Executives program established under section 8(b)(1)(B) of the
Small Business Act (15 U.S.C. 637(b)(1)(B));
(6) the term ``small business concern owned and controlled
by service-disabled veterans'' has the meaning given the term
in section 3(q) of the Small Business Act (15 U.S.C. 632(q));
(7) the term ``small business concern owned and controlled
by women'' has the meaning given the term in section 8(m) of
the Small Business Act (15 U.S.C. 637(m));
(8) the term ``small business development center'' has the
meaning given the term in section 3(t) of the Small Business
Act (15 U.S.C. 632(t)); and
(9) the term ``women's business center'' means a women's
business center described in section 29 of the Small Business
Act (15 U.S.C. 656).
(c) Promotion of Small Business Contracting.--
(1) Small business contracting relief.--Notwithstanding any
other provision of law or regulation, during the period
beginning on the date of enactment of this Act and ending on
September 30, 2021, the head of the Federal agency with which a
covered entity has a contract shall provide the covered entity
with the greater of--
(A) 30 additional days to carry out the
responsibilities of the covered entity under the
contract; or
(B) an additional amount of time to carry out the
responsibilities of the covered entity under the
contract that the head of the Federal agency determines
to be appropriate after taking into consideration the
severity of the adverse impact experienced by the
covered entity.
(2) Payment continuation.--If the performance of all or any
part of the work of a Federal goods or services contract with a
contractor that is a small business concern or a nonprofit
organization in force and effect during the period beginning on
the date of enactment of this Act and ending on September 30,
2021, is unavoidably delayed or interrupted by the inability of
the employees of the small business concern or nonprofit
organization, as applicable, to access Government facilities,
systems, or other Government-provided resources due to
restrictions related to COVID-19 that have been imposed by any
authority or due to orders or instructions issued by the
contracting agency in response to COVID-19--
(A) the Government shall pay the small business
concern or nonprofit organization, as applicable, upon
the submission of the documentation required by the
contract and according to the terms specified in the
contract, the prices stipulated in the contract for
goods or services as if the small business concern or
nonprofit organization, as applicable, had rendered and
the Government accepted the goods or services; and
(B) contractor delivery schedules shall be revised
and the small business concern or nonprofit
organization, as applicable, shall be eligible for
equitable adjustments based on the revised schedules.
(3) Temporary sole-source award parity among contracting
programs.--Notwithstanding any other provision of law or
regulation, during the period beginning on the date of
enactment of this Act and ending on September 30, 2021, with
respect to a small business concern owned and controlled by
women, an economically disadvantaged women-owned small
business, a HUBZone small business concern, or a small business
concern owned and controlled by service-disabled veterans, a
contracting officer may award a sole source contract to the
small business concern if the anticipated award price of the
contract will not exceed the maximum permissible amount for the
contract, as provided under the applicable provision of the
Small Business Act (15 U.S.C. 631 et seq.), as amended by this
subsection.
(4) Increasing sole source caps.--
(A) Qualified hubzone small business concerns.--
Section 31(c)(2)(A)(ii) of the Small Business Act (15
U.S.C. 657a(c)(2)(A)(ii)) is amended--
(i) in subclause (I), by striking
``$5,000,000'' and inserting ``$10,000,000'';
and
(ii) in subclause (II), by striking
``$3,000,000'' and inserting ``$8,000,000''.
(B) Small business concerns owned and controlled by
service-disabled veterans.--Section 36(a)(2) of the
Small Business Act (15 U.S.C. 657f(a)(2)) is amended--
(i) in subparagraph (A), by striking
``$5,000,000'' and inserting ``$10,000,000'';
and
(ii) in subparagraph (B), by striking
``$3,000,000'' and inserting ``$8,000,000''.
(C) Small business concerns owned and controlled by
socially and economically disadvantaged individuals.--
Section 8(a)(1)(D)(i)(II) of the Small Business Act (15
U.S.C. 637(a)(1)(D)(i)(II)) is amended--
(i) by striking ``$5,000,000'' and
inserting ``$10,000,000''; and
(ii) by striking ``$3,000,000'' and
inserting ``$8,000,000''.
(D) Certain small business concerns owned and
controlled by women.--Section 8(m) of the Small
Business Act (15 U.S.C. 637(m)) is amended--
(i) in paragraph (7)(B)--
(I) in clause (i), by striking
``$6,500,000'' and inserting
``$10,000,000''; and
(II) in clause (ii), by striking
``$4,000,000'' and inserting
``$8,000,000''; and
(ii) in paragraph (8)(B)--
(I) in clause (i), by striking
``$6,500,000'' and inserting
``$10,000,000''; and
(II) in clause (ii), by striking
``$4,000,000'' and inserting
``$8,000,000''.
(5) Category management.--Section 15 of the Small Business
Act (15 U.S.C. 644) is amended by adding at the end the
following:
``(y) Category Management.--
``(1) Definition of contract.--In this subsection, the term
`contract' includes a prime contract, a task order, a delivery
order, a blanket purchase agreement, and a basic ordering
agreement.
``(2) Exemption.--Any acquisition for a contract to be
awarded under the procedures of section 8(a), 8(m), 31, or 36
or under subsection (a) or (j) of this section, including an
acquisition for commercial items, shall be--
``(A) exempt from the procedural requirements of
agency-level or Governmentwide guidance on category
management, best in class solutions, common contract
solutions, or successor strategies for contract
consolidation; and
``(B) disregarded when measuring attainment of any
goal or benchmark established under agency-level or
Governmentwide guidance on category management, best in
class solutions, common contract solutions, or
successor strategies for contract consolidation, unless
considering the acquisition aids in the achievement of
the goal or benchmark.
``(3) Prohibition.--Once a contract has been awarded under
the section 8(a), 8(m), 31, or 36 or under subsection (a) or
(j) of this section, including an acquisition for commercial
items, the contract shall not be removed and placed in category
management, best in class solutions, common contract solutions,
or successor strategies for contract consolidation.''.
(6) Prompt payments.--Notwithstanding any other provision
of law or regulation, during any period in which the President
invokes the authorities of the Defense Production Act of 1950
(50 U.S.C. 4501 et seq.), for any payment due by the head of an
agency on a contract for an item of property or service
provided--
(A) with respect to a prime contractor (as defined
in section 8701 of title 41, United States Code) that
is a small business concern or nonprofit organization,
the head of the agency shall, to the fullest extent
permitted by law and to the maximum extent practicable,
establish an accelerated payment date of 15 days after
a proper invoice for the amount due is received; and
(B) with respect to a prime contractor (as defined
in section 8701 of title 41, United States Code) that
subcontracts with a small business concern or nonprofit
organization, the head of the agency shall, to fullest
extent permitted by law and to the maximum extent
practicable, establish an accelerated payment date of
15 days after receipt of a proper invoice for the
amount due if the prime contractor agrees to make
payments to the subcontractor in accordance with the
accelerated payment date, to the maximum extent
practicable, without any further consideration from or
fees charged to the subcontractor.
(d) Promotion of Small Business Economic Development Programs.--
(1) Authorization of appropriations.--There is authorized
to be appropriated to the Administrator the following amounts,
which shall remain available until expended:
(A) $18,750,000 to carry out the women's business
center program under section 29 of the Small Business
Act (15 U.S.C. 656), with respect to which the
following requirements shall apply:
(i) The Administrator shall allocate that
amount so that each women's business center
operating pursuant to that section receives an
equal allocation, unless the Administrator
determines that another manner of allocation is
necessary.
(ii) A center that receives amounts under
this subparagraph shall not be subject to the
requirement to provide non-Federal funding
under section 29(c) of the Small Business Act
(15 U.S.C. 656(c)).
(iii) A center that receives amounts under
this subparagraph shall use the grant to--
(I) enhance remote services
provided by the center; and
(II) provide counseling, training,
and other related services, such as
promoting long-term resiliency, to
small business concerns and
entrepreneurs impacted by or
experiencing substantial economic
injury as a result of COVID-19.
(B) $1,000,000 to carry out SCORE, which shall be
used to--
(i) hire staff members with respect to
SCORE to develop and implement an education
program to--
(I) provide mentoring and other
related services, such as promoting
long-term resiliency, to small business
concerns and entrepreneurs impacted by
or experiencing substantial economic
injury as a result of COVID-19;
(II) help owners of small business
concerns address issues relating to
COVID-19; and
(III) educate volunteers with
respect to the program regarding issues
relating to COVID-19;
(ii) develop and design content relating to
the issues described in clause (i);
(iii) encourage the use of virtual
mentoring and workshops in carrying out SCORE;
and
(iv) recruit and train more virtual
mentors.
(C) $40,000,000 to hire additional staff to carry
out the small business development program established
under section 21 of the Small Business Act (15 U.S.C.
648), with respect to which the following requirements
shall apply:
(i) A small business development center
receiving funds under this subparagraph shall
not be subject to the requirement to provide
matching amounts under subparagraphs (A) and
(B) of section 21(a)(4) of the Small Business
Act (15 U.S.C. 648(a)(4)).
(ii) The Administrator shall allocate the
funds according to the funding formula
described in section 21(a)(4)(C) of the Small
Business Act (15 U.S.C. 648(a)(4)(C)), unless
the Administrator determines that another
manner of allocation is necessary.
(iii) Funds provided under this
subparagraph shall be used to provide
counseling, training, and other related
services, such as promoting long-term
resiliency, to small business concerns and
entrepreneurs impacted by or experiencing
substantial economic injury as a result of
COVID-19, which shall include training and
advising on--
(I) the hazards and prevention of
the transmission and communication of
the COVID-19 and other communicable
diseases;
(II) the potential effects to their
supply chains and the distribution and
sale of products, and the mitigation of
those effects;
(III) the management and practice
of telework to reduce possible
transmission;
(IV) the management and practice of
remote customer service by electronic
or other means;
(V) the risks and mitigation of
cyber threats in remote customer
service or telework practices;
(VI) the mitigation of the effects
of reduced travel or outside activities
on small business concerns during
COVID-19 or similar occurrences; and
(VII) any other relevant business
practices necessary to mitigate the
economic effects of COVID-19 or similar
occurrences.
(2) Metrics.--The Administrator, in cooperation with
recipients of financial assistance under paragraph (1), shall
establish metrics and goals for performance of activities using
funds provided under paragraph (1).
(3) Application.--
(A) In general.--A small business development
center, a women's business center, or SCORE shall
submit an application to the Administrator to receive
assistance under paragraph (1).
(B) Provision of assistance.--The Administrator
shall provide assistance under paragraph (1) after
making a determination that the applicant is in need of
financial assistance due to economic injury as a result
of COVID-19 or has the capacity to provide assistance
to small business concerns affected by COVID-19.
(4) Waiver.--During the period beginning on the date of
enactment of this Act and ending on September 30, 2021, the
requirement relating to obtaining matching contributions from
non-Federal sources under sections 21(a)(4) and 29(c) of the
Small Business Act (15 U.S.C. 648(a)(4), 656(c)) is waived for
any recipient of assistance under such section 21 or 29,
respectively.
(5) SBA creation of made in america list.--
(A) Short term response.--Not later than 60 days
after the date of enactment of this Act the resource
partners of the Administration, including small
business development centers, women's business centers,
SCORE, and veterans business outreach centers, shall
provide the Administrator with a list of the small
business concerns--
(i) that those partners have served during
the 10-year period preceding the date on which
the list is created; and
(ii) that self-identify as having, or as
expecting to have, supply chain
vulnerabilities.
(B) Creation of list.--Based on the list provided
under subparagraph (A), the Administration shall create
a list of small business concerns entitled the ``Made
in America'' list.
(C) Long term response.--
(i) In general.--After the creation of the
list under subparagraph(B)--
(I) the Administrator shall--
(aa) share the list with
the resource partners of the
Administration, including the
entities described in
subparagraph (A);
(bb) update the list not
less frequently than once every
6 months, or at such intervals
as the Administrator may
determine appropriate;
(cc) on an ongoing basis,
seek to match the small
business concerns identified on
the list (referred to in this
subparagraph as ``listed small
business concerns''), as
updated under item (bb), with--
(AA) suppliers
identified under
subclause (II); and
(BB) any other
supplier that may be
able to address the
supply chain
vulnerabilities of the
listed small business
concerns; and
(dd) in carrying out item
(cc), collaborate with other
Federal agencies, including the
Minority Business Development
Agency of the Department of
Commerce, to identify supply
chain vulnerabilities in the
United States that small
business concerns may be able
to address; and
(II) the resource partners of the
Administration shall disseminate the
list received under subclause (I)(aa)
to manufacturing clients of those
partners with the objective of matching
the listed small business concerns with
suppliers that are able to address the
supply chain vulnerabilities of those
small business concerns.
(ii) Report.--Not later than 1 year after
the date of enactment of this Act, and annually
thereafter, the Administrator shall submit to
the Committee on Small Business and
Entrepreneurship of the Senate and the
Committee on Small Business of the House of
Representatives a report that contains--
(I) the number of listed small
business concerns, as updated under
clause (i)(I)(bb);
(II) the number of notification of
opportunities that went out requesting
new small business concern suppliers;
and
(III) the number of matches made
from the list required under this
paragraph.
(e) Authorization of Appropriations.--In addition to amounts
provided under any other provision of law, there is authorized to be
appropriated $150,000,000, to remain available until expended, under
the heading ``Small Business Administration--Entrepreneurial
Development Programs'', of which--
(1) $40,000,000 shall be to support programs carried out by
small business development centers described in section 21 of
the Small Business Act (15 U.S.C. 648);
(2) $18,750,000 shall be to support programs carried out by
women's business centers described in section 29 of such Act
(15 U.S.C. 656);
(3) $1,000,000 shall be to support programs carried out by
the Service Corps of Retired Executives authorized under
section 8(b)(1) of such Act (15 U.S.C. 637(b)(1));
(4) $50,000,000 shall be for microloan technical assistance
grants under section 7(m)(4) of such Acct (15 U.S.C.
636(m)(4)); and
(5) $40,250,000 shall be for additional grants for
technical assistance, counseling, mentoring, training, and
workshops for outreach to small business concerns impacted by
COVID-19.
SEC. 18. SMALL BUSINESS INTERMEDIARY LENDING PROGRAM.
(a) In General.--Section 7(l) of the Small Business Act (15 U.S.C.
636(l)) is amended--
(1) in the subsection heading, by striking ``Pilot'';
(2) in paragraph (1)--
(A) in subparagraph (A), by striking ``and'' at the
end;
(B) by redesignating subparagraph (B) as
subparagraph (C);
(C) by inserting after subparagraph (A) the
following:
``(B) the term `newly established small business
concern' means a small business concern that has been
existence for not more than 2 years on the date on
which a loan is made to the small business concern
under the Program;'';
(D) in subparagraph (C), as so redesignated--
(i) by striking ``pilot''; and
(ii) by striking the period at the end and
inserting a semicolon; and
(E) by adding at the end the following:
``(D) the term `small business concern in an
underserved market' means a small business concern--
``(i) that is located in--
``(I) a low- to moderate-income
community;
``(II) a HUBZone;
``(III) a community that has been
designated as an empowerment zone or an
enterprise community under section 1391
of the Internal Revenue Code of 1986;
``(IV) a community that has been
designated as a promise zone by the
Secretary of Housing and Urban
Development;
``(V) a community that has been
designated as a qualified opportunity
zone under section 1400Z-1 of the
Internal Revenue Code of 1986; or
``(VI) a rural area;
``(ii) that has more than 50 percent of
employees residing in a low- or moderate-income
community;
``(iii) that is a startup or new business;
``(iv) owned and controlled by socially and
economically disadvantaged individuals,
including Black Americans, Hispanic Americans,
Native Americans, Asian Pacific Americans, and
other minorities;
``(v) owned and controlled by women;
``(vi) owned and controlled by veterans;
``(vii) owned and controlled by service-
disabled veterans;
``(viii) not less than 51 percent owned and
controlled by 1 or more--
``(I) members of the Armed Forces
participating in the Transition
Assistance Program of the Department of
Defense;
``(II) Reservists;
``(III) spouses of veterans,
members of the Armed Forces, or
Reservists; or
``(IV) surviving spouses of
veterans who died on active duty or as
a result of a service-connected
disability; or
``(V) individuals who have
completed a term of imprisonment in
Federal, State, or local jail or
prison; or
``(ix) that is eligible to receive a
veterans advantage loan;
``(E) the term `small business concern owned and
controlled by socially and economically disadvantaged
individuals' has the meaning given the term in section
8(d)(3)(C); and
``(F) the term `startup' means a business that has
not yet opened.'';
(3) in paragraph (2)--
(A) by striking ``3-year''; and
(B) by striking ``pilot'';
(4) in paragraph (3)--
(A) in subparagraph (A), by striking ``and'' at the
end;
(B) in subparagraph (B), by striking the period at
the end and inserting ``; and''; and
(C) by adding at the end the following:
``(C) to provide flexible capital to and through
mission lenders who are best positioned to understand
community need and respond quickly to it during times
of economic downturn, especially as a result of a
disaster, including those caused by public health
threats.'';
(5) in paragraph (4)--
(A) by striking subparagraph (B) and inserting the
following:
``(B) Loan limits.--
``(i) Single loan.--
``(I) In general.--Except as
provided in subclause (II), no single
loan to an eligible intermediary under
this subsection may exceed $1,000,000.
``(II) Exception for underserved
markets.--If an eligible intermediary
makes not less than 60 percent of its
loans to small business concerns in
underserved markets, the eligible
intermediary may receive a single loan
under this subsection of $1,500,000.
``(ii) Total amount.--The total amount
outstanding and committed to an eligible
intermediary by the Administrator under the
Program may not exceed $5,000,000.
``(iii) Considerations.--In determining
whether to make a loan to an eligible
intermediary before prior loans made to the
eligible intermediary under the Program are
paid off, the Administrator shall take into
consideration the lending experience and track
record of the eligible intermediary within the
Program.''; and
(B) by striking subparagraphs (F) and (G) and
inserting the following:
``(F) Delayed payments.--
``(i) In general.--The Administrator shall
not require the repayment of principal or
interest on a loan made to an eligible
intermediary under the Program during the 2-
year period beginning on the date of the
initial disbursement of funds under that loan.
``(ii) Delayed payments for certain small
business concerns.--An eligible intermediary
shall not require the repayment of principal or
interest on a loan made to a manufacturing or
high-tech, innovative small business concern
for the purposes of commercialization,
including firms involved in the SBIR and STTR
programs under section 9, until the earlier
of--
``(I) that date that is 6 months
after the date of the initial
disbursement of funds under that loan;
or
``(II) the date on which the small
business concern brings in revenue.
``(G) Repayment structures.--The Administrator may
allow eligible intermediaries to engage borrowers in
prudent repayment structures, including revenue-based
financing, based on the type of business and business
industry needs.
``(H) Maximum amounts.--In each fiscal year, the
Administrator may make loans under the Program in a
total amount of not more than $30,000,000.''; and
(6) by striking paragraph (6) and inserting the following:
``(6) Report.--Not later than 1 year after the date of
enactment of the COVID-19 Recovery by Enhancing Loan,
Investment, and Education Funds for Small Businesses Act of
2020, the Administrator shall submit to the Committee on Small
Business and Entrepreneurship of the Senate and the Committee
on Small Business of the House of Representatives a report
regarding the performance and effectiveness of the Program,
which shall include--
``(A) the number and dollar amount of loans made in
each year the Program has been in effect;
``(B) each eligible intermediary that received a
loan under the Program; and
``(C) any recommendations for improvements to the
Program.
``(7) Authorization of appropriations.--There is authorized
to be appropriated to carry out this section--
``(A) $20,000,000 for fiscal year 2020; and
``(B) $30,000,000 for fiscal year 2021.''.
(b) Rulemaking Authority.--Not later than 180 days after the date
of enactment of this Act, the Administrator shall issue regulations to
carry out section 7(l) of the Small Business Act (15 U.S.C. 636(l)), as
amended by subsection (a).
SEC. 19. COMMUNITY ADVANTAGE LOAN PROGRAM.
Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is
amended by adding at the end the following:
``(36) Community advantage loan program.--
``(A) Purposes.--The purposes of the Community
Advantage Loan Program are--
``(i) to create a mission-oriented loan
guarantee program that builds on the
demonstrated success of the Community Advantage
Pilot Program of the Administration, as
established in 2011, to reach more underserved
small business concerns;
``(ii) to increase lending to small
business concerns in underserved and rural
markets, including veterans and members of the
military community, small business concerns
owned and controlled by socially and
economically disadvantaged individuals, women,
and startups;
``(iii) to ensure that the program under
this subsection (in this paragraph referred to
as the `7(a) loan program') is more inclusive
and more broadly meets congressional intent to
reach borrowers who are unable to get credit
elsewhere on reasonable terms and conditions;
``(iv) to help underserved small business
concerns become bankable by utilizing the
small-dollar financing and business support
experience of mission-oriented lenders;
``(v) to allow certain mission-oriented
lenders, primarily nonprofit financial
intermediaries focused on economic development
in underserved markets, access to guarantees
for loans under this subsection (in this
paragraph referred to as `7(a) loans') of not
more than $350,000 and provide management and
technical assistance to small business concerns
as needed;
``(vi) to provide certainty for the lending
partners that make loans under this subsection
and to attract new lenders; and
``(vii) to encourage collaboration between
mission-oriented and conventional lenders under
this subsection in order to support underserved
small business concerns.
``(B) Definitions.--In this paragraph--
``(i) the term `covered institution'
means--
``(I) a development company, as
defined in section 103 of the Small
Business Investment Act of 1958 (15
U.S.C. 662), participating in the 504
Loan Guaranty program established under
title V of that Act (15 U.S.C. 695 et
seq.);
``(II) a nonprofit intermediary, as
defined in subsection (m)(11),
participating in the microloan program
under subsection (m);
``(III) a non-Federally regulated
entity certified as a community
development financial institution by
the Community Development Financial
Institutions Fund established under
section 104(a) of the Riegle Community
Development and Regulatory Improvement
Act of 1994 (12 U.S.C. 4703(a)); and
``(IV) an eligible intermediary, as
defined in subsection (l)(1),
participating in the Intermediary
Lending Program established under
subsection (l)(2);
``(ii) the term `existing business' means a
small business concern that has been in
existence for not less than 2 years on the date
on which a loan is made to the small business
concern under the program;
``(iii) the term `new business' means a
small business concern that has been existence
for not more than 2 years on the date on which
a loan is made to the small business concern
under the program;
``(iv) the term `program' means the
Community Advantage Loan Program established
under subparagraph (C);
``(v) the term `Reservist' means a member
of a reserve component of the Armed Forces
named in section 10101 of title 10, United
States Code;
``(vi) the term `rural area' means any
county that the Bureau of the Census has
defined as mostly rural or completely rural in
the most recent decennial census;
``(vii) the term `service-connected' has
the meaning given the term in section 101(16)
of title 38, United States Code;
``(viii) the term `small business concern
in an underserved market' means a small
business concern--
``(I) that is located in--
``(aa) a low- to moderate-
income community;
``(bb) a HUBZone, as that
term is defined in section
31(b);
``(cc) a community that has
been designated as an
empowerment zone or an
enterprise community under
section 1391 of the Internal
Revenue Code of 1986;
``(dd) a community that has
been designated as a promise
zone by the Secretary of
Housing and Urban Development;
``(ee) a community that has
been designated as a qualified
opportunity zone under section
1400Z-1 of the Internal Revenue
Code of 1986; or
``(ff) a rural area;
``(II) for which more than 50
percent of the employees reside in a
low- or moderate-income community;
``(III) that is a startup or new
business;
``(IV) owned and controlled by
socially and economically disadvantaged
individuals, including Black Americans,
Hispanic Americans, Native Americans,
Asian Pacific Americans, and other
minorities;
``(V) owned and controlled by
women;
``(VI) owned and controlled by
veterans;
``(VII) owned and controlled by
service-disabled veterans;
``(VIII) not less than 51 percent
owned and controlled by 1 or more--
``(aa) members of the Armed
Forces participating in the
Transition Assistance Program
of the Department of Defense;
``(bb) Reservists;
``(cc) spouses of veterans,
members of the Armed Forces, or
Reservists; or
``(dd) surviving spouses of
veterans who died on active
duty or as a result of a
service-connected disability;
``(IX) that is eligible to receive
a veterans advantage loan; or
``(X) owned and controlled by an
individual who has completed a term of
imprisonment in a Federal, State, or
local jail or prison;
``(ix) the term `small business concern
owned and controlled by socially and
economically disadvantaged individuals' has the
meaning given the term in section 8(d)(3)(C);
``(x) the term `startup' means a business
that has not yet opened; and
``(xi) the term `veterans advantage loan'
means a loan made to a small business concern
under this subsection that is eligible for a
waiver of the guarantee fee under paragraph
(18) or the yearly fee under paragraph (23)
because the small business concern is a concern
described in subclause (VI), (VII), or (VIII)
of clause (viii).
``(C) Establishment.--There is established a
Community Advantage Loan Program under which the
Administration may guarantee loans made by covered
institutions under this subsection, including loans
made to small business concerns in underserved markets.
``(D) Program levels.--In each of fiscal years
2020, 2021, 2022, 2023, 2024, and 2025, not more than
10 percent of the number of loans guaranteed under this
subsection may be guaranteed under the program.
``(E) New lenders.--
``(i) Fiscal years 2021 and 2022.--In each
of fiscal years 2021 and 2022--
``(I) not more than 150 covered
institutions shall participate in the
program; and
``(II) the Administrator shall
allow for new applicants and give
priority to applications submitted by
any covered institution that is located
in an area with insufficient or no
lending under the program.
``(ii) Fiscal years 2023, 2024, and 2025.--
``(I) In general.--In each of
fiscal years 2023, 2024, and 2025--
``(aa) except as provided
in subclause (II), not more
than 175 covered institutions
shall participate in the
program; and
``(bb) the Administrator
shall allow for new applicants
and give priority to
applications submitted by any
covered institution that is
located in an area with
insufficient or no lending
under the program.
``(II) Exception for fiscal year
2025.--In fiscal year 2025, not more
than 200 covered institutions may
participate in the program if--
``(aa) after reviewing the
report under subparagraph (M),
the Administrator determines
that not more than 200 covered
institutions may participate in
the program;
``(bb) the Administrator
notifies Congress in writing of
the determination of the
Administrator under item (aa);
and
``(cc) not later than July
30, 2024, the Administrator
notifies the public of the
determination of the
Administrator under item (aa).
``(F) Grandfathering of existing lenders.--Any
covered institution that participated in the Community
Advantage Pilot Program of the Administration and is in
good standing on the day before the date of enactment
of this paragraph--
``(i) shall retain designation in the
program; and
``(ii) shall not be required to submit an
application to participate in the program.
``(G) Requirement to make loans to underserved
markets.--Not less than 75 percent of loans made by a
covered institution under the program shall consist of
loans made to small business concerns in underserved
markets.
``(H) Maximum loan amount.--
``(i) In general.--Except as provided in
clause (ii), the maximum loan amount for a loan
guaranteed under the program is $250,000.
``(ii) Exception.--
````(I) In general.--The
Administration may, in the discretion
of the Administration, approve a
guarantee of a loan under the program
that is more than $250,000 and not more
than $350,000.
``(II) Notification.--Not later
than 2 days after receiving a request
for an exception to the maximum loan
amount established under clause (i),
the Administration shall--
``(aa) review the request;
and
``(bb) provide a decision
regarding the request to the
covered institution making the
loan.
``(I) Training and technical assistance.--The
Administration--
``(i) shall, in person and online, provide
upfront and ongoing training and technical
assistance for covered institutions making
loans under the program in order to support
prudent lending standards and improve the
interface between the covered institutions and
the Administration, which shall include--
``(I) guidance for following the
regulations of the Administration,
including best practices for
maintaining healthy portfolios of
loans; and
``(II) directions for covered
institutions to do what is in the best
interest of the borrowers, including by
ensuring to the maximum extent possible
that those borrowers are informed about
loans with the most favorable terms for
those borrowers;
``(ii) shall ensure that the training and
technical assistance described in clause (i) is
provided for free or at a low-cost;
``(iii) may enter into a contract to
provide the training or technical assistance
described in clause (i) with an organization
with expertise in lending under this
subsection, mission-oriented lending, and
lending to underserved markets; and
``(iv) shall ensure that covered
institutions adequately report the extent to
which the covered institutions take the actions
required under clause (i)(II).
``(J) Delegated authority.--A covered institution
is not eligible to receive delegated authority from the
Administration under the program until the covered
institution makes not less than 10 loans under the
program, unless the Administration determines otherwise
after an opportunity for public comment for a period of
not less than 30 days before implementing such a
change.
``(K) Regulations.--
``(i) In general.--Not later than 180 days
after the date of enactment of this paragraph
and in accordance with the notice and comment
procedures under section 553 of title 5, United
States Code, the Administrator shall promulgate
regulations to carry out the program, which
shall be substantially similar to the Community
Advantage Pilot Program of the Administration,
as in effect on September 1, 2018, and shall--
``(I) outline the requirements for
participation by covered institutions
in the program;
``(II) define performance metrics
for covered institutions participating
in the program for the first time,
which are required to be met in order
to continue participating in the
program;
``(III) establish an acceptable
range of program costs and level of
risk that shall be based on other loan
products--
``(aa) of similar size;
``(bb) that use similar
lenders; and
``(cc) that are intended to
reach similar borrowers;
``(IV) determine the credit score
of a small business concern under which
the Administration is required to
underwrite a loan provided to the small
business concern under the program and
the loan may not be made using the
delegated authority of a covered
institution;
``(V) require each covered
institution that sells loans made under
the program on the secondary market to
establish a loan loss reserve fund,
which--
``(aa) with respect to
covered institutions in good
standing, including the covered
institutions described in
subparagraph (F), shall be
maintained at a level equal to
3 percent of the outstanding
guaranteed portion of the
loans; and
``(bb) with respect to any
other covered institution,
shall be maintained at a level
equal to 5 percent of the
outstanding guaranteed portion
of the loans; and
``(VI) allow the Administrator to
require additional amounts to be
deposited into a loan loss reserve fund
established by a covered institution
under subclause (V) based on the risk
characteristics or performance of the
covered institution and the loan
portfolio of the covered institution.
``(ii) Termination of pilot program.--
Beginning on the date on which the regulations
promulgated by the Administrator under clause
(i) take effect, the Administrator may not
carry out the Community Advantage Pilot Program
of the Administration.
``(L) GAO report.--Not later than 3 years after the
date of enactment of this paragraph, the Comptroller
General of the United States shall submit to the
Administrator, the Committee on Small Business and
Entrepreneurship of the Senate, and the Committee on
Small Business of the House of Representatives a
report--
``(i) assessing--
``(I) the extent to which the
program fulfills the requirements of
this paragraph; and
``(II) the performance of covered
institutions participating in the
program; and
``(ii) providing recommendations on the
administration of the program and the findings
under subclauses (I) and (II) of clause (i).
``(M) Working group.--
``(i) In general.--Not later than 90 days
after the date of enactment of this paragraph,
the Administrator shall establish a Community
Advantage Working Group, which shall--
``(I) include--
``(aa) a geographically
diverse representation of
members from among covered
institutions participating in
the program; and
``(bb) representatives from
the Office of Capital Access of
the Administration, including
the Office of Credit Risk
Management, the Office of
Financial Assistance, and the
Office of Economic Opportunity;
``(II) develop recommendations on
how the Administration can effectively
manage, support, and promote the
program and the mission of the program;
``(III) establish metrics of
success and benchmarks that reflect the
mission and population served by
covered institutions under the program,
which the Administration shall use to
evaluate the performance of those
covered institutions;
``(IV) institute regular and
sustainable systems of communication
between the Administration and covered
institutions participating in the
program; and
``(V) establish criteria for
covered institutions regarding when
those institutions should provide
technical assistance to borrowers under
the program and the scope of that
technical assistance.
``(ii) Report.--Not later than 180 days
after the date of enactment of this paragraph,
the Administrator shall submit to the Committee
on Small Business and Entrepreneurship of the
Senate and the Committee on Small Business of
the House of Representatives a report that
includes--
``(I) the recommendations of the
Community Advantage Working Group
established under clause (i); and
``(II) a recommended plan and
timeline for implementation of those
recommendations.''.
SEC. 20. ACCELERATING SMALL BUSINESS INNOVATIONS.
(a) Purpose.--The purpose of this section is to accelerate the
review and award of SBIR and STTR (as defined in section 9 of the Small
Business Act (15 U.S.C. 638)) projects at most civilian agencies in
order to speed the development of innovations, which is particularly
necessary to stimulate the economy and provide agencies with new
technologies.
(b) Amendments.--Section 9 of the Small Business Act (15 U.S.C.
638) is amended--
(1) in subsection (g)(8)--
(A) in subparagraph (B), by striking ``and'' at the
end;
(B) in subparagraph (C), by adding ``and'' at the
end; and
(C) by adding at the end the following:
``(D) the average and median amount of time that
each Federal agency with an SBIR program takes to
review and make a final decision on proposals submitted
under the program;'';
(2) in subsection (o)(9)--
(A) in subparagraph (B), by striking ``and'' at the
end;
(B) in subparagraph (C), by adding ``and'' at the
end; and
(C) by adding at the end the following:
``(D) the average and median amount of time that
each Federal agency with an STTR program takes to
review and make a final decision on proposals submitted
under the program;'';
(3) in subsection (hh), by adding at the end the following:
``(3) Requirement to accelerate sbir and sttr awards of
civilian agencies.--Not later than 1 year after the date of
enactment of this paragraph, each Federal agency participating
in the SBIR program or STTR program, other than the Department
of Defense, shall establish a process to reduce the time for
awards under the SBIR and STTR programs of the Federal agency
by--
``(A) developing simplified and standardized
application processes and requirements and simplified
and standardized model contracts or awards throughout
the Federal agency for Phase I, Phase II, and Phase III
SBIR awards;
``(B) for Phase I SBIR and STTR awards, reducing
the amount of time between solicitation closure and
award;
``(C) for Phase II SBIR and STTR awards, reducing
the amount of time between the end of a Phase I award
and the start of the Phase II award;
``(D) for Phase II SBIR and STTR awards that skip
Phase I, reducing the amount of time between
solicitation closure and award;
``(E) for sequential Phase II SBIR and STTR awards,
reducing the amount of time between Phase II awards;
and
``(F) reducing the award times described in
subparagraphs (B), (C), (D), and (E) to not later than
180 days with respect to the Department of Health and
Human Services, the National Science Foundation, and
the Department of Agriculture, and as close to 90 days
as possible with respect to any other participating
agency.''; and
(4) in subsection (ii), by adding at the end the following:
``(3) Additional comptroller general reports.--The
Comptroller General of the United States shall submit to the
Committee on Small Business and Entrepreneurship of the Senate
and the Committee on Small Business of the House of
Representatives--
``(A) not later than 2 years after the date of
enactment of this paragraph, a report that--
``(i) provides the average and median
amount of time that each Federal agency with an
SBIR or STTR program takes to review and make a
final decision on proposals submitted under the
program; and
``(ii) compares that average and median
amount of time with that of the previous 5
fiscal years; and
``(B) not later than March 31, 2024, a report
that--
``(i) includes the information described in
subparagraph (A);
``(ii) assesses where each Federal agency
participating in the SBIR or STTR program needs
improvement with respect to the proposal review
and award times under the program;
``(iii) identifies best practices for
shortening the proposal review and award times
under the SBIR and STTR programs; and
``(iv) analyzes the efficacy of the program
established under subsection (hh)(3).''.
SEC. 21. IMPROVEMENTS TO SBIR/STTR COMMERCIALIZATION.
(a) Purpose.--The purpose of this section is to make the small
business research programs permanent, allow limited skipping of the
first research phase, and designate a Technology Commercialization
Officer in each participating agency to help companies with
commercialization.
(b) Permanency of SBIR and STTR Programs.--
(1) SBIR.--Section 9(m) of the Small Business Act (15
U.S.C. 638(m)) is amended--
(A) in the subsection heading, by striking
``Termination'' and inserting ``SBIR Program
Authorization''; and
(B) by striking ``terminate on September 30, 2022''
and inserting ``be in effect for each fiscal year''.
(2) STTR.--Section 9(n)(1)(A) of the Small Business Act (15
U.S.C. 638(n)(1)(A)) is amended by striking ``through fiscal
year 2022''.
(c) Commercialization Selection.--Section 9 of the Small Business
Act (15 U.S.C. 638) is amended--
(1) in subsection (g)--
(A) in paragraph (4)(B)(i)--
(i) by striking ``1 year'' and inserting
``180 days''; and
(ii) by striking ``National Institutes of
Health or the National Science Foundation'' and
inserting ``Department of Health and Human
Services, the National Science Foundation, or
the Department of Agriculture'';
(B) in paragraph (11), by striking ``and'' at the
end;
(C) in paragraph (12), by striking the period at
the end and inserting ``; and''; and
(D) by adding at the end the following:
``(13) with respect to peer review carried out under the
SBIR program, to the extent practicable, include in the peer
review--
``(A) the likelihood of commercialization in
addition to scientific and technical merit and
feasibility; and
``(B) not less than 1 reviewer with
commercialization expertise who is capable of assessing
the likelihood of commercialization.'';
(2) in subsection (o)--
(A) in paragraph (4)(B)(i)--
(i) by striking ``1 year'' and inserting
``180 days''; and
(ii) by striking ``National Institutes of
Health or the National Science Foundation'' and
inserting ``Department of Health and Human
Services, the National Science Foundation, or
the Department of Agriculture'';
(B) in paragraph (15), by striking ``and'' at the
end;
(C) in paragraph (16), by striking the period at
the end and inserting ``; and''; and
(D) by adding at the end the following:
``(17) with respect to peer review carried out under the
STTR program, to the extent practicable, include in the peer
review--
``(A) the likelihood of commercialization in
addition to scientific and technical merit and
feasibility; and
``(B) not less than 1 reviewer with
commercialization expertise who is capable of assessing
the likelihood of commercialization.'';
(3) in subsection (aa), by adding at the end the following:
``(6) Application of waiver.--The waiver authority under
paragraph (4) shall not apply to Phase II awards that skip
Phase I unless the additional funds are needed to respond to an
urgent need in the United States, such as a pandemic.'';
(4) in subsection (cc)--
(A) by striking ``During fiscal years 2012 through
2022, the National Institutes of Health, the Department
of Defense, and the Department of Education'' and
inserting the following:
``(1) In general.--During fiscal years 2020 through 2025,
each Federal agency with an SBIR or STTR program''; and
(B) by adding at the end the following:
``(2) Limitation.--The total value of awards provided by a
Federal agency under this subsection in a fiscal year shall
be--
``(A) except as provided in subparagraph (B), not
more than 10 percent of the total funds allocated to
the SBIR and STTR programs of the Federal agency during
that fiscal year; and
``(B) with respect to the Department of Health and
Human Services, not more than 15 percent of the total
funds allocated to the SBIR and STTR programs of the
Department of Health and Human Services during that
fiscal year.
``(3) Extension.--During fiscal years 2024 and 2025, each
Federal agency with an SBIR or STTR program may continue phase
flexibility as described in this subsection only if--
``(A) the reports required under subsection
(tt)(1)(B) have been submitted to the appropriate
committees;
``(B) the results in the reports demonstrate that
skipping Phase I is effective at commercializing SBIR
and STTR projects; and
``(C) the allocation percentages in subsections
(f)(1) and (n)(1) have been increased above 3.2 percent
and .45 percent, respectively.'';
(5) in subsection (hh)(2)(A)(i), by striking ``procedures
and model contracts'' and inserting ``processes and
requirements and simplified and standardized model contracts or
awards''; and
(6) by adding at the end the following:
``(vv) Technology Commercialization Official.--Each Federal agency
participating in the SBIR or STTR program shall designate a Technology
Commercialization Official in the Federal agency, who shall--
``(1) have sufficient commercialization experience;
``(2) provide assistance to SBIR and STTR program awardees
in commercializing and transitioning technologies;
``(3) identify SBIR and STTR program technologies with
sufficient technology and commercialization readiness to
advance to Phase III awards or other non-SBIR or STTR program
contracts;
``(4) coordinate with the Technology Commercialization
Officials of other Federal agencies to identify additional
markets and commercialization pathways for promising SBIR and
STTR program technologies;
``(5) submit to the Administration an annual report on the
number of technologies from the SBIR or STTR program that have
advanced commercialization activities, including information
required in the commercialization impact assessment under
subsection (xx) and how those activities may relate to support
of the diversification of the United States supply chain;
``(6) submit to the Administration an annual report on
actions taken by the Federal agency, and the results of those
actions, to simplify, standardize, and expedite the application
process and requirements, procedures, and contracts as required
under subsection (hh) and described in subsection (xx)(E); and
``(7) carry out such other duties as the Federal agency
determines necessary.''.
SEC. 22. SPURRING INNOVATION IN UNDERSERVED MARKETS.
(a) In General.--The Small Business Act (15 U.S.C. 631 et seq.) is
amended--
(1) by redesignating section 49 (15 U.S.C. 631 note) as
section 50; and
(2) by inserting after section 48 (15 U.S.C. 657u) the
following:
``SEC. 49. INNOVATION CENTERS PROGRAM.
``(a) Definitions.--In this section:
``(1) Accelerator.--The term `accelerator' means an
organization--
``(A) that--
``(i) works with a startup or growing small
business concern for a predetermined period;
and
``(ii) provides mentorship and instruction
to scale businesses; and
``(B) that may--
``(i) provide, but is not exclusively
designed to provide, seed investment in
exchange for a small amount of equity; and
``(ii) offer startup capital or the
opportunity to raise capital from outside
investors.
``(2) Federally recognized area of economic distress.--The
term `federally recognized area of economic distress' means--
``(A) a HUBZone; or
``(B) an area that has been designated as--
``(i) an empowerment zone under section
1391 of the Internal Revenue Code of 1986;
``(ii) a qualified opportunity zone under
section 1400Z-1 of the Internal Revenue Code of
1986;
``(iii) a Promise Zone by the Secretary of
Housing and Urban Development; or
``(iv) a low-income neighborhood or
moderate-income neighborhood for purposes of
the Community Reinvestment Act of 1977 (12
U.S.C. 2901 et seq.).
``(3) Growing; newly established; startup.--The terms
`growing', `newly established', and `startup', with respect to
a small business concern, mean growing, newly established, and
startup, respectively, within the meaning given those terms
under section 7(m).
``(4) Incubator.--The term `incubator' means an
organization--
``(A) that--
``(i) tends to work with startup and newly
established small business concerns; and
``(ii) provides mentorship to startup and
newly established small business concerns; and
``(B) that may--
``(i) provide a co-working environment or a
month-to-month lease program; and
``(ii) work with a startup or newly
established small business concern for a
predetermined period or an open-ended period.
``(5) Individuals with a disability.--The term `individuals
with a disability' means more than one individual with a
disability, as defined in section 3 of the Americans with
Disabilities Act of 1990 (42 U.S.C. 12102).
``(6) Eligible entity.--The term `eligible entity' means--
``(A) an institution described in any of paragraphs
(1) through (7) of section 371(a) of the Higher
Education Act of 1965 (20 U.S.C. 1067q(a));
``(B) a junior or community college, as defined in
section 312 of the Higher Education Act of 1965 (20
U.S.C. 1058); or
``(C) any nonprofit organization associated with an
entity described in subparagraph (A) or (B).
``(7) Rural area.--The term `rural area' has the meaning
given that term in section 7(m)(11).
``(8) Socially and economically disadvantaged
individuals.--The term `socially and economically disadvantaged
individual' means a socially and economically disadvantaged
individual within the meaning given that term under section
8(d)(3)(C).
``(b) Establishment.--Not later than 18 months after the date of
enactment of the COVID-19 Recovery by Enhancing Loan, Investment, and
Education Funds for Small Businesses Act of 2020, the Administrator
shall develop and begin implementing a program (to be known as the
`Innovation Centers Program') to enter into cooperative agreements with
eligible entities under this section.
``(c) Purposes.--The purposes of the Innovation Centers Program are
to--
``(1) stimulate economic growth in underserved communities
by creating good paying jobs and pathways to prosperity, which
are especially important in times of economic downturn;
``(2) increase prospects for success for small business
concerns in underserved communities, which often suffer from
higher business failure rates than the national average;
``(3) help create a pipeline for small business concerns in
underserved and rural markets into high-growth sectors, where
they are generally underrepresented;
``(4) help address the multi-decade decline in the rate of
new business creation;
``(5) close the gaps that underserved small business
concerns often have in terms of revenue and number of
employees, which represent lost opportunity for the economy;
and
``(6) encourage collaboration between the Administration
and institutions of higher learning that serve low-income and
minority communities.
``(d) Authority.--
``(1) In general.--The Administrator may--
``(A) enter into cooperative agreements to provide
financial assistance to eligible entities to conduct 5-
year projects for the benefit of startup, newly
established, or growing small business concerns; and
``(B) renew a cooperative agreement entered into
under this section for additional 3-year periods, in
accordance with paragraph (3).
``(2) Project requirements.--A project conducted under a
cooperative agreement under this section shall--
``(A) include operating as an accelerator, an
incubator, or any other small business innovation-
focused project as the Administrator approves;
``(B) be carried out in such locations as to
provide maximum accessibility and benefits to the small
business concerns that the project is intended to
serve;
``(C) have a full-time staff, including a full-time
director who shall--
``(i) have the authority to make
expenditures under the budget of the project;
and
``(ii) manage the activities carried out
under the project;
``(D) include the joint provision of programs and
services by the eligible entity and the Administration,
which--
``(i) shall be jointly developed,
negotiated, and agreed upon, with full
participation of both parties, pursuant to an
executed cooperative agreement between the
eligible entity and the Administration; and
``(ii) shall include--
``(I) 1-to-1 individual counseling
as described in section 21(c)(3)(A);
and
``(II) a formal, structured
mentorship program;
``(E) incorporate continuous upgrades and
modifications to the services and programs offered
under the project, as needed to meet the changing and
evolving needs of the business community;
``(F) involve working with underserved groups,
which include--
``(i) women;
``(ii) socially and economically
disadvantaged individuals;
``(iii) veterans;
``(iv) individuals with disabilities; or
``(v) startup, newly established, or
growing small business concerns located in
rural areas;
``(G) not impose or otherwise collect a fee or
other compensation in connection with participation in
the programs and services described in subparagraph
(D)(ii); and
``(H) ensure that small business concerns
participating in the project have access, including
through resource partners, to information concerning
Federal, State, and local regulations that affect small
business concerns.
``(3) Continued funding.--
``(A) In general.--An eligible entity that enters
into an initial cooperative agreement or a renewal of a
cooperative under paragraph (1) may submit an
application for a 3-year renewal of the cooperative
agreement at such time, in such manner, and accompanied
by such information as the Administrator may establish.
``(B) Application and approval criteria.--
``(i) Criteria.--The Administrator shall
develop and publish criteria for the
consideration and approval of applications for
renewals by eligible entities under this
paragraph, which shall take into account the
structure and the stated goals of the project.
``(ii) Notification.--Not later than 60
days after the date of the deadline to submit
applications for each fiscal year, the
Administrator shall approve or deny any
application under this paragraph and notify the
applicant for each such application.
``(C) Priority.--In allocating funds made available
for cooperative agreements under this section, the
Administrator shall give applications under this
paragraph priority over first-time applications for
cooperative agreements under paragraph (1)(A).
``(4) Limit on use of funds.--Amounts received by an
eligible entity under a cooperative agreement under this
section may not be used to provide capital to a participant in
the project carried out under the cooperative agreement.
``(5) Scope of authority.--
``(A) Subject to appropriations.--The authority of
the Administrator to enter into cooperative agreements
under this section shall be in effect for each fiscal
year only to the extent and in the amounts as are
provided in advance in appropriations Acts.
``(B) Suspension, termination, and failure to renew
or extend.--After the Administrator has entered into a
cooperative agreement with an eligible entity under
this section, the Administrator shall not suspend,
terminate, or fail to renew or extend the cooperative
agreement unless the Administrator provides the
eligible entity with written notification setting forth
the reasons therefore and affords the eligible entity
an opportunity for a hearing, appeal, or other
administrative proceeding under chapter 5 of title 5,
United States Code.
``(e) Criteria.--
``(1) In general.--The Administrator shall--
``(A) establish and rank in terms of relative
importance the criteria the Administrator shall use in
awarding cooperative agreements under this section,
which shall include--
``(i) whether the proposed project will be
located in--
``(I) a federally recognized area
of economic distress;
``(II) a rural area; or
``(III) an area lacking sufficient
entrepreneurial development resources,
as determined by the Administrator; and
``(ii) whether the proposed project
demonstrates a commitment to partner with core
stakeholders working with small business
concerns in the relevant area, including--
``(I) investment and lending
organizations;
``(II) nongovernmental
organizations;
``(III) programs of State and local
governments that are concerned with
aiding small business concerns;
``(IV) Federal agencies; and
``(V) for-profit organizations with
an expertise in small business
innovation;
``(B) make publicly available, including on the
website of the Administration, and state in each
solicitation for applications for cooperative
agreements under this section the selection criteria
and ranking established under subparagraph (A); and
``(C) evaluate and rank applicants for cooperative
agreements under this section in accordance with the
selection criteria and ranking established under
subparagraph (A).
``(2) Contents.--The criteria established under paragraph
(1)(A)--
``(A) for eligible entities that have in operation
an accelerator, incubator, or other small business
innovation-focused project shall include the record of
the eligible entity in assisting growing, newly
established, and startup small business concerns,
including, for each of the 3 full years before the date
on which the eligible entity applies for a cooperative
agreement under this section, or if the accelerator,
incubator, or other small business innovation-focused
project has been in operation for less than 3 years,
for the most recent full year the accelerator,
incubator, or other small business innovation-focused
project was in operation--
``(i) the number and retention rate of
growing, newly established, and startup
business concerns in the program of the
eligible entity;
``(ii) the average period of participation
by growing, newly established, and startup
small business concerns in the program of the
eligible entity;
``(iii) the total and median capital raised
by growing, newly established, and startup
small business concerns participating in the
program of the eligible entity;
``(iv) the number of investments or loans
received by growing, newly established, and
startup small business concerns participating
in the program of the eligible entity; and
``(v) the total and median number of
employees of growing, newly established, and
startup small business concerns participating
in the program of the eligible entity; and
``(B) for all eligible entities--
``(i) shall include whether the eligible
entity--
``(I) indicates the structure and
goals of the project;
``(II) demonstrates ties to the
business community;
``(III) identifies the resources
available for the project;
``(IV) describes the capabilities
of the project, including coordination
with local resource partners and local
or national lending partners of the
Administration;
``(V) addresses the unique business
and economic challenges faced by the
community in which the eligible entity
is located and businesses in that
community; and
``(VI) provides a proposed budget
and plan for use of funds; and
``(ii) may include any other criteria
determined appropriate by the Administrator.
``(f) Program Examination.--
``(1) In general.--The Administrator shall--
``(A) develop and implement an annual programmatic
and financial examination of each project conducted
under this section, under which each eligible entity
entering into a cooperative agreement under this
section shall provide to the Administrator--
``(i) an itemized cost breakdown of actual
expenditures for costs incurred during the
preceding year; and
``(ii) documentation regarding--
``(I) the amount of matching
assistance from non-Federal sources
obtained and expended by the eligible
entity during the preceding year in
order to meet the matching requirement;
and
``(II) with respect to any in-kind
contributions that were used to satisfy
the matching requirement, verification
of the existence and valuation of those
contributions; and
``(B) analyze the results of each examination
conducted under subparagraph (A) and, based on that
analysis, make a determination regarding the
programmatic and financial viability of each eligible
entity.
``(2) Conditions for continued funding.--In determining
whether to continue or renew a cooperative agreement under this
section, the Administrator--
``(A) shall consider the results of the most recent
examination of the project under paragraph (1); and
``(B) may terminate or not renew a cooperative
agreement, if the Administrator determines that the
eligible entity has failed to provide any information
required to be provided (including information provide
for purpose of the annual report by the Administrator
under subsection (n)) or the information provided by
the eligible entity is inadequate.
``(g) Training and Technical Assistance.--The Administrator--
``(1) shall provide in person or online training and
technical assistance to each eligible entity entering into a
cooperative agreement under this section at the beginning of
the participation of the eligible entity in the Innovation
Centers Program, or as requested by the eligible entity, in
order to build the capacity of the eligible entity and ensure
compliance with procedures established by the Administrator;
``(2) shall ensure that the training and technical
assistance described in paragraph (1) is provided at no cost or
at a low cost; and
``(3) may enter into a contract to provide the training or
technical assistance described in paragraph (1) with 1 or more
organizations with expertise in the entrepreneurial development
programs of the Administration, innovation, and entrepreneurial
development.
``(h) Coordination.--In carrying out a project under this section,
an eligible entity may coordinate with--
``(1) resource and lending partners of the Administration;
``(2) programs of State and local governments that are
concerned with aiding small business concerns; and
``(3) other Federal agencies, including to provide services
to and assist small business concerns in participating in the
SBIR and STTR programs, as defined in section 9(e).
``(i) Funding Limit.--The amount of financial assistance provided
to an eligible entity under a cooperative agreement entered into under
this section shall be not more than $400,000 during each year.
``(j) Matching Requirement.--
``(1) In general.--An eligible entity shall contribute
toward the cost of the project carried out under the
cooperative agreement under this section an amount equal to 50
percent of the amount received under the cooperative agreement.
``(2) In-kind contributions.--Not more than 75 percent of
the contribution of an eligible entity under paragraph (1) may
be in the form of in-kind contributions.
``(3) Waiver.--
``(A) In general.--If the Administrator determines
that an eligible entity is unable to meet the
contribution requirement under paragraph (1), the
Administrator may reduce the required contribution.
``(B) Presumption.--
``(i) In general.--The Administration
shall, by regulation, establish criteria to
determine which eligible entities are presumed
to be unable to meet the contribution
requirement under paragraph (1).
``(ii) Stakeholders.--In establishing the
criteria under clause (i), the Administrator
shall work with stakeholders immediately
impacted by the criteria.
``(iii) Periodic review.--The
Administration shall periodically review the
criteria established under clause (i) not less
than every 5 years to ensure that the criteria
aligns with economic conditions.
``(4) Failure to obtain non-federal funding.--If an
eligible entity fails to obtain the required non-Federal
contribution during any project, or the reduced non-Federal
contribution as determined by the Administrator--
``(A) the eligible entity shall not be eligible
thereafter for any other project for which it is or may
be funded by the Administration; and
``(B) prior to approving assistance for the
eligible entity for any other projects, the
Administrator shall specifically determine whether the
Administrator believes that the eligible entity will be
able to obtain the requisite non-Federal funding and
enter a written finding setting the forth the reasons
for making that determination.
``(5) Rule of construction.--The demonstrated inability of
an eligible entity to meet the contribution requirement under
paragraph (1) shall not disqualify the eligible entity from
entering into a cooperative agreement under this section.
``(k) Contract Authority.--
``(1) In general.--An eligible entity may enter into a
contract with a Federal department or agency to provide
specific assistance to startup, newly established, or growing
small business concerns.
``(2) Performance.--Performance of a contract entered into
under paragraph (1) may not hinder the eligible entity in
carrying out the terms of the cooperative agreement under this
section.
``(3) Exemption from matching requirement.--A contract
entered into under paragraph (1) shall not be subject to the
matching requirement under subsection (j).
``(4) Additional provision.--Notwithstanding any other
provision of law, a contract for assistance under paragraph (1)
shall not be applied to any Federal department or agency's
small business, woman-owned business, or socially and
economically disadvantaged business contracting goal under
section 15(g).
``(l) Privacy Requirements.--
``(1) In general.--An eligible entity may not disclose the
name, address, or telephone number of any individual or small
business concern receiving assistance under this section
without the consent of such individual or small business
concern, unless--
``(A) the Administrator is ordered to make such a
disclosure by a court in any civil or criminal
enforcement action initiated by a Federal or State
agency; or
``(B) the Administrator considers such a disclosure
to be necessary for the purpose of conducting a
financial audit of an eligible entity, but a disclosure
under this subparagraph shall be limited to the
information necessary for such audit.
``(2) Administration use of information.--This subsection
shall not--
``(A) restrict Administration access to program
activity data; or
``(B) prevent the Administration from using client
information (other than the information described in
subparagraph (A)) to conduct client surveys.
``(3) Regulations.--The Administrator shall issue
regulations to establish standards for requiring disclosures
during a financial audit under paragraph (1)(B).
``(m) Publication of Information.--The Administrator shall--
``(1) publish information about the program under this
section online, including--
``(A) on the website of the Administration; and
``(B) on the social media of the Administration;
and
``(2) request that the resource and lending partners of the
Administration and the district offices of the Administration
publicize the program.
``(n) Annual Reporting.--Not later than 1 year after the date on
which the Administrator establishes the program under this section, and
every year thereafter, the Administrator shall submit to Congress a
report on the activities under the program, including--
``(1) a list of all eligible entities participating in the
program;
``(2) the number of startup, newly established, and growing
small business concerns participating in the project carried
out by each eligible entity under a cooperative agreement under
this section (in this paragraph referred to as `participants'),
including a breakdown of the owners of the participants by
race, gender, veteran status, and urban versus rural location;
``(3) the retention rate for participants;
``(4) the total and median amount of capital accessed by
participants, including the type of capital accessed;
``(5) the total and median number of employees of
participants;
``(6) the number and median wage of jobs created by
participants;
``(7) the number of jobs sustained by participants; and
``(8) information regarding such other metrics as the
Administrator determines appropriate.
``(o) Funding.--
``(1) Authorization of appropriations.--There are
authorized to be appropriated to carry out this section--
``(A) $4,000,000 for the first fiscal year
beginning after the date of enactment of the COVID-19
Recovery by Enhancing Loan, Investment, and Education
Funds for Small Businesses Act of 2020;
``(B) $7,500,000 for the second fiscal year
beginning after such date of enactment; and
``(C) $12,000,000 for each of the third, fourth,
and fifth fiscal years beginning after such date of
enactment.
``(2) Administrative expenses.--Of the amount made
available to carry out this section for any fiscal year, not
more than 10 percent may be used by the Administrator for
administrative expenses.''.
(b) Regulations.--The Administrator shall promulgate regulations to
carry out section 49 of the Small Business Act, as added by subsection
(b).
SEC. 23. COORDINATING LENDING IN UNDERSERVED MARKETS.
Section 7 of the Small Business Act (15 U.S.C. 636) is amended by
adding at the end the following:
``(o) Office of Emerging Markets.--
``(1) Definitions.--In this subsection--
``(A) the term `Associate Administrator' means the
Associate Administrator of the Office of Capital Access
of the Administration;
``(B) the term `Director' means the Director of the
Office of Emerging Markets;
``(C) the term `microloan program' means the
program described in subsection (m);
``(D) the term `Reservist' means a member of a
reserve component of the Armed Forces named in section
10101 of title 10, United States Code;
``(E) the term `rural area' has the meaning given
the term in subsection (m)(11);
``(F) the term `service-connected' has the meaning
given the term in section 101 of title 38, United
States Code; and
``(G) the term `small business concern in an
emerging market' means a small business concern--
``(i) that is located in--
``(I) a low income or moderate
income area for purposes of the
Community Development Block Grant
Program under title I of the Housing
and Community Development Act of 1974
(42 U.S.C. 5301 et seq.);
``(II) a HUBZone;
``(III) a community that has been
designated as an empowerment zone or an
enterprise community under section 1391
of the Internal Revenue Code of 1986;
``(IV) a community that has been
designated as a Promise Zone by the
Secretary of Housing and Urban
Development;
``(V) a community that has been
designated as a qualified opportunity
zone under section 1400Z-1 of the
Internal Revenue Code of 1986; or
``(VI) a rural area;
``(ii) that has more than 50 percent of
employees residing in a low- or moderate-income
community;
``(iii) that is growing, newly established,
or a startup, as those terms are used in
subsection (m);
``(iv) owned and controlled by socially and
economically disadvantaged individuals,
including Black Americans, Hispanic Americans,
Native Americans, Asian Pacific Americans, and
other minorities;
``(v) owned and controlled by women;
``(vi) owned and controlled by veterans;
``(vii) owned and controlled by service-
disabled veterans; or
``(viii) not less than 51 percent owned and
controlled by 1 or more--
``(I) members of the Armed Forces
participating in the Transition
Assistance Program of the Department of
Defense;
``(II) Reservists;
``(III) spouses of veterans,
members of the Armed Forces, or
Reservists;
``(IV) surviving spouses of
veterans who died on active duty or as
a result of a service-connected
disability; or
``(V) individuals with a
disability, as defined in section 3 of
the Americans with Disabilities Act of
1990 (42 U.S.C. 12102).
``(2) Establishment.--There is established within the
Administration the Office of Emerging Markets, which shall be--
``(A) under the general management and oversight of
the Administration; and
``(B) responsible for the planning, coordination,
implementation, evaluation, and improvement of the
efforts of the Administrator to enhance the economic
well-being of small business concerns in an emerging
market.
``(3) Purposes.--The purposes of the Office of Emerging
Markets are--
``(A) to provide the Administration with an
integrated approach to the development of small
business concerns in emerging markets;
``(B) to reignite economic opportunity for
underserved or emerging markets, particularly after an
economic downturn; and
``(C) to oversee the expansion of access to capital
programs that meet the needs of emerging markets.
``(4) Director.--
``(A) In general.--Not later than 180 days after
the date of enactment of the COVID-19 Recovery by
Enhancing Loan, Investment, and Education Funds for
Small Businesses Act of 2020, the Administrator shall
appoint a Director of the Office of Emerging Markets,
who shall--
``(i) supervise the Office of Emerging
Markets and report to the Associate
Administrator; and
``(ii) be in the Senior Executive Service.
``(B) Duties.--The Director shall--
``(i) create and implement strategies and
programs that provide an integrated approach to
the development of small business concerns in
an emerging market;
``(ii) develop and recommend policies
concerning the microloan program and any other
access to capital program of the
Administration, as such programs pertain to
small business concerns in an emerging market;
``(iii) establish partnerships to advance
the goal of improving the economic success of
small business concerns in an emerging market;
and
``(iv) review the effectiveness and impact
of the microloan program and any other access
to capital program of the Administration that
is targeted to serve small business concerns in
an emerging market.
``(C) Consultation.--In carrying out the duties
under this paragraph, the Director shall consult with
district offices of the Administration.''.
SEC. 24. AUTHORIZATION OF APPROPRIATIONS AND OTHER MATTERS.
(a) Authorization of Appropriations.--In addition to amounts
provided under any other provision of law, there is authorized to be
appropriated, to remain available until expended--
(1) $5,000,000,000 to carry out sections 8, 9, 10, and 11;
(2) $177,000,000 for administrative expenses related to
carrying out the disaster loan program under section 7(b)(2) of
the Small Business Act (15 U.S.C. 636(b)(2));
(3) $1,000,000,000 for loan subsidies for the disaster loan
program under section 7(b)(2) of the Small Business Act (15
U.S.C. 636(b)(2)); and
(4) $200,000,000 for salaries and expenses for the
Administration.
(b) Allowable Uses of 7(a) Program Loans.--
(1) In general.--During the period beginning on the date of
enactment of this Act and ending on September 30, 2021, a
recipient of a loan made under section 7(a) of the Small
Business Act (15 U.S.C. 636(a)) (including a recipient of
assistance under the Community Advantage Pilot Program of the
Administration) may, in addition to the allowable uses of such
a loan, use the proceeds of the loan for payroll support,
including paid sick, medical, or family leave, and costs
related to the continuation of group health care benefits
during those periods of leave.
(2) Guidance.--Not later than 15 days after the date of
enactment of this Act, the Administrator shall issue guidance
to lenders under section 7(a) of the Small Business Act (15
U.S.C. 636(a)) on payroll and support and disrupted supply
chain eligibility under paragraph (1).
SEC. 25. EMERGENCY RULEMAKING AUTHORITY.
Not later than 15 days after the date of enactment of this Act, the
Administrator shall issue regulations to carry out this Act without
regard to the notice requirements under section 553(b) of title 5,
United States Code.
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