[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 399 Introduced in House (IH)]
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117th CONGRESS
1st Session
H. R. 399
To direct the Administrator of the Small Business Administration to
establish a forgivable economic injury disaster loan program for small
business concerns located near the United States border, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 21, 2021
Mr. Grijalva introduced the following bill; which was referred to the
Committee on Small Business, and in addition to the Committee on Ways
and Means, for a period to be subsequently determined by the Speaker,
in each case for consideration of such provisions as fall within the
jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To direct the Administrator of the Small Business Administration to
establish a forgivable economic injury disaster loan program for small
business concerns located near the United States border, 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 ``Border Business COVID-19 Rescue
Act''.
SEC. 2. BORDER BUSINESS ECONOMIC INJURY DISASTER LOAN.
(a) Border Business Economic Injury Disaster Loan Program.--
(1) In general.--The Administrator of the Small Business
Administration shall carry out a program to make loans to
border businesses directly impacted by the COVID-19 pandemic.
(2) Application.--A border business desiring a loan under
this subsection shall submit to the Administrator an
application at such time, in such place, and containing such
information as the Administrator determines necessary.
(3) Terms.--
(A) Amount; interest rate.--A loan made under this
subsection shall be in an amount less than or equal to
$500,000 and have an interest rate equal to zero
percent.
(B) Waiver of certain requirements.--With respect
to a loan made under this subsection, the Administrator
shall waive--
(i) any rules related to a personal
guarantee for loans of less than $200,000;
(ii) any requirement that an applicant
exhaust other loan options before applying for
a loan under this subsection; and
(iii) any requirement that an applicant
needs to be in business for the 1-year period
before March 13, 2020, except that no waiver
may be made for a border business that was not
in operation on or before January 31, 2020.
(4) Use of funds.--A border business that receives a loan
under this subsection shall use loan proceeds to--
(A) provide paid sick leave to employees unable to
work as a direct effect of the COVID-19 pandemic;
(B) maintain payroll to retain employees during
business disruptions or substantial slowdowns caused by
the COVID-19 pandemic;
(C) meet increased costs to obtain materials from
other sources due to interrupted supply chains caused
by the COVID-19 pandemic;
(D) make rent or mortgage payments;
(E) purchase personal protective equipment;
(F) repay obligations that cannot be met due to
revenue losses; and
(G) pay for logistical expenses associated with
border closures due to the COVID-19 pandemic.
(b) Approval and Ability To Repay.--With respect to a loan made
under subsection (a), the Administrator may--
(1) approve an applicant based solely on the credit score
of the applicant and shall not require an applicant to submit a
tax return or a tax return transcript for such approval; or
(2) use an alternative appropriate method to determine an
applicant's ability to repay.
(c) Forgiveness and Repayment.--
(1) Forgiveness.--The Administrator shall select from among
applicants for a loan under subsection (a) a number of
recipients of such loan for which the Administrator shall
forgive up to 100 percent of such loan, less the amount the
borrower received from--
(A) any other loan forgiveness program, including
any program established under the CARES Act (Public Law
116-136); and
(B) an advance received under section 1110 of the
CARES Act (15 U.S.C. 9009).
(2) Repayment.--With respect to a loan recipient not
selected for forgiveness of such loan under paragraph (1), the
Administrator shall establish the repayment terms with respect
to each such loan, except that such repayment may not begin
before the date that is 1 year after the date on which such
loan is made.
(d) Loan Advance.--
(1) In general.--A border business that applies for a loan
under subsection (a) may request that the Administrator provide
an advance in the amount requested by such applicant to such
applicant not later than three days after receipt of such
request. Such amount shall not be less than $10,000.
(2) Verification.--Before disbursing amounts under this
subsection, the Administrator shall verify that the applicant
is a border business by accepting a self-certification from the
applicant under penalty of perjury pursuant to section 1746 of
title 28, United States Code.
(3) Use of funds.--An advance provided under this
subsection may be used to for any purpose described under
subsection (a)(4).
(4) Repayment.--An applicant shall not be required to repay
any amounts of an advance provided under this subsection, even
if such applicant is subsequently denied a loan under
subsection (a).
(e) Other Benefits.--Receipt of an advance under subsection (d) or
loan under subsection (a) shall not be construed as to prohibit receipt
of any other Federal grant, loan, or aid.
(f) Taxability.--For purposes of the Internal Revenue Code of
1986--
(1) any amount which would be includible in gross income of
the border business by reason of forgiveness described in
subsection (d) shall be excluded from gross income; and
(2) any amount received under this section shall be
excluded from gross income.
(g) Direct Appropriation.--There is appropriated, out of any
amounts in the Treasury not otherwise appropriated, $1,000,000,000, to
remain available until December 31, 2021, to carry out the requirements
of this Act.
(h) Definitions.--In this section:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Small Business Administration.
(2) Border business.--The term ``border business'' means an
entity eligible for a loan under section 7(b)(2) of the Small
Business Act (15 U.S.C. 636(b)(2)) that--
(A) has its principal office located in the
contiguous United States;
(B) has estimated or actual annual average gross
receipts less than or equal to $500,000; and
(C) is located within 25 miles of the United States
border.
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