[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 4471 Introduced in Senate (IS)]
<DOC>
117th CONGRESS
2d Session
S. 4471
To provide relief for small businesses suffering extraordinary losses
due to the COVID-19 pandemic.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 23, 2022
Mr. Cardin introduced the following bill; which was read twice and
referred to the Committee on Small Business and Entrepreneurship
_______________________________________________________________________
A BILL
To provide relief for small businesses suffering extraordinary losses
due to the COVID-19 pandemic.
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 ``Hardest-Hit Small Business COVID
Relief Act of 2022''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.
Sec. 4. Hardest-Hit Small Business Relief Fund.
Sec. 5. Grants from Fund.
Sec. 6. Data transparency and customer service.
Sec. 7. Business identifiers.
Sec. 8. Oversight and audits.
Sec. 9. Gross receipts.
Sec. 10. Rules.
Sec. 11. Transfer of funds.
SEC. 3. DEFINITIONS.
In this Act:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Small Business Administration.
(2) Covered mortgage obligation; covered rent obligation;
covered supplier cost; covered utility payment; covered worker
protection expenditure.--The terms ``covered mortgage
obligation'', ``covered rent obligation'', ``covered supplier
cost'', ``covered utility payment'', and ``covered worker
protection expenditure'' have the meanings given the terms in
section 7A(a) of the Small Business Act (15 U.S.C. 636m(a)).
(3) Covered period.--The term ``covered period'' means the
period--
(A) beginning on March 1, 2020; and
(B) ending on March 31, 2023, or a date to be
determined by the Administrator that is not later than
2 years after the date of enactment of this Act.
(4) Eligible entity.--The term ``eligible entity''--
(A) means a small business concern (as defined in
section 3 of the Small Business Act (15 U.S.C. 632))
that has experienced substantial losses resulting from
the COVID-19 pandemic, as determined by the
Administrator;
(B) may include--
(i) a Tribally-owned concern;
(ii) a sole proprietorship;
(iii) an independent contractor; and
(iv) an eligible self-employed individual;
and
(C) does not include--
(i) an entity described in subparagraph (A)
that--
(I) is a State or local government-
owned or operated business; and
(II) has a pending application for
or has received a grant under--
(aa) section 324 of the
Economic Aid to Hard-Hit Small
Businesses, Nonprofits, and
Venues Act (15 U.S.C. 9009a);
or
(bb) section 5003 of the
American Rescue Plan Act of
2021 (15 U.S.C. 9009c);
(ii) a publicly-traded company;
(iii) an entity that is owned or operated
by a private equity fund;
(iv) an entity that was not in operation
before March 1, 2020; or
(v) an entity that is not in operation on,
and does not intend to reopen on or before the
date that is 180 days after, the date on which
the entity applies for a grant.
(5) Eligible self-employed individual.--The term ``eligible
self-employed individual'' has the meaning given the term in
section 7002(b) of the Families First Coronavirus Response Act
(26 U.S.C. 1401 note).
(6) Exchange; issuer; security.--The terms ``exchange'',
``issuer'', and ``security'' have the meanings given those
terms in section 3(a) of the Securities Exchange Act of 1934
(15 U.S.C. 78c(a)).
(7) Fund.--The term ``Fund'' means the Hardest-Hit Small
Business Relief Fund established under section 4(a).
(8) National securities exchange.--The term ``national
securities exchange'' means an exchange that is registered in
accordance with section 6 of the Securities Exchange Act of
1934 (15 U.S.C. 78f).
(9) Payroll costs.--The term ``payroll costs'' has the
meaning given the term in section 7(a)(36)(A) of the Small
Business Act (15 U.S.C. 636(a)(36)(A)), except that such term
shall not include--
(A) qualified wages (as defined in subsection
(c)(3) of section 2301 of the CARES Act (26 U.S.C. 3111
note)) taken into account in determining the credit
allowed under such section 2301; or
(B) premiums taken into account in determining the
credit allowed under section 6432 of the Internal
Revenue Code of 1986.
(10) Private equity fund.--The term ``private equity fund''
has the meaning given the term in section 225.173(a) of title
12, Code of Federal Regulations, or any successor regulation.
(11) Publicly-traded company.--The term ``publicly-traded
company'' means an entity that is majority owned or controlled
by an entity that is an issuer, the securities of which are
listed on a national securities exchange.
(12) Tribally-owned concern.--The term ``Tribally-owned
concern'' has the meaning given the term in section 124.3 of
title 13, Code of Federal Regulations, or any successor
regulation.
SEC. 4. HARDEST-HIT SMALL BUSINESS RELIEF FUND.
(a) Establishment.--There is established in the Treasury of the
United States a fund to be known as the Hardest-Hit Small Business
Relief Fund.
(b) Funding.--
(1) In general.--The Fund shall consist of--
(A) amounts transferred under section 11; and
(B) other amount appropriated to the Fund.
(2) Administrative expenses.--Of the amounts transferred
under section 11, $80,000,000 shall be for administrative
expenses to carry out the program under this Act, of which
$20,000,000 shall be for the Inspector General of the Small
Business Administration for necessary expenses of the Office of
Inspector General.
SEC. 5. GRANTS FROM FUND.
(a) In General.--Except as provided in subsection (c)(4), the
Administrator shall make grants under this section to eligible entities
in the order in which applications are received by the Administrator.
(b) Applications.--
(1) Certification.--An eligible entity applying for a grant
under this section shall make a good faith certification that--
(A) the uncertainty of current economic conditions
makes necessary the request for the grant to support
the ongoing operations of the eligible entity;
(B) the eligible entity does not have a pending
application for, and has not received, a grant under--
(i) section 324 of the Economic Aid to
Hard-Hit Small Businesses, Nonprofits, and
Venues Act (15 U.S.C. 9009a); or
(ii) section 5003 of the American Rescue
Plan Act of 2021 (15 U.S.C. 9009c); and
(C) contains any other information that the
Administrator may require.
(2) Verification materials.--The Administrator shall use
tax records and may, in addition, use other reliable sources
such as certified accounting statements with respect to an
applicant for a grant to determine--
(A) the eligibility of the applicant for that
grant; and
(B) the amount of that grant to the applicant.
(3) Acceptance of applications.--Not later than 90 days
after the date of enactment of this Act, the Administrator
shall begin accepting applications for grants under this
section.
(c) Amount of Grant.--
(1) In general.--Subject to paragraph (4), the amount of a
grant under this section made to an eligible entity shall be
determined based on a formula to be established by the
Administrator.
(2) Reduction.--Any formula established by the
Administrator to determine grant amounts under paragraph (1)
shall reduce awards by amounts a recipient has received under--
(A) section 1110 of the Coronavirus Aid, Relief,
and Economic Security Act (15 U.S.C. 9009);
(B) section 331 of the Economic Aid to Hard-Hit
Small Businesses, Nonprofits, and Venues Act (15 U.S.C.
9009b); or
(C) section 5002 of the American Rescue Plan Act of
2021 (15 U.S.C. 9009 note).
(3) Determination of revenue.--
(A) In general.--When calculating the revenue of an
entity for purposes of determining the eligibility of
the entity for a grant under this section or the amount
of such a grant, the Administrator shall treat as
revenue--
(i) any amounts received from a covered
loan made under paragraph (36) or (37) of
section 7(a) of the Small Business Act (15
U.S.C. 636(a)), in 2020 or 2021; and
(ii) the amount by which the total of all
remunerative payments made to an individual,
including any annual salary paid to an
employee, in 2020, or 2021, exceeds $250,000.
(B) Administrator authority.--The Administrator may
determine the types of payments and individuals to
which subparagraph (A)(ii) applies.
(4) Insufficient funding.--
(A) In general.--If the Administrator determines
that the amounts made available to carry out this
section are insufficient to make grants to each
eligible entity in the amount provided under paragraph
(1), the Administrator shall distribute grants to all
eligible applicants that submit an application during
the 21-day period beginning on the date on which the
Administrator begins accepting those applications on
either--
(i) a pro rata basis; or
(ii) based on a formula to be determined by
the Administrator.
(B) Reserving funds.--Nothing in subparagraph (A)
shall prevent the Administrator from--
(i) reserving funding for applicants that
may be determined to be eligible for a grant
upon reconsideration; or
(ii) making partial awards to eligible
entities on a preliminary basis until the
amount of funding required to fund grants to
all eligible entities that submit applications
is established upon the completion of the
reconsideration process.
(d) Use of Funds.--During the covered period, an eligible entity
that receives a grant under this section may use amounts received for
the following expenses incurred as a direct result of, or during, the
COVID-19 pandemic:
(1) Payroll costs.
(2) Payments to independent contractors, as reported on
Form 1099-MISC, except that each payment under this paragraph
shall be in an amount that is not more than $100,000.
(3) Scheduled payments of interest or principal on any
covered mortgage obligation (which may not include any
prepayment of principal on a covered mortgage obligation).
(4) Payments on any covered rent obligation and common area
maintenance charges under a lease agreement.
(5) Covered utility payments.
(6) Maintenance expenses.
(7) Covered worker protection expenditures.
(8) Supplies, including protective equipment and cleaning
materials.
(9) Expenses that were within the scope of the normal
business practice of the eligible entity before the covered
period.
(10) Covered supplier costs.
(11) Operational expenses.
(12) Paid sick leave.
(13) Any other expenses that the Administrator determines
to be essential to maintaining the eligible entity.
(e) Returning Funds.--If an eligible entity that receives a grant
under this section fails to use all of the amounts received under the
grant on or before the last day of the covered period or permanently
ceases operations on or before the last day of the covered period, the
eligible entity shall return to the Treasury any funds that the
eligible entity did not use for the allowable expenses under subsection
(d).
SEC. 6. DATA TRANSPARENCY AND CUSTOMER SERVICE.
The Administrator shall--
(1) on a biweekly basis until the amounts made available
under this Act are fully expended, publish data that shows, for
the period beginning on the date of enactment of this Act and
ending on the date on which the information is published--
(A) with respect to applications for grants under
this Act, the number of those applications--
(i) that the Administrator has received;
(ii) that the Administrator has reviewed or
is in the process of reviewing; and
(iii) with respect to which the
Administrator has made a decision; and
(B) the number and dollar amount of grants--
(i) that are awarded; and
(ii) that are disbursed;
(2) on a weekly basis until the amounts made available
under this Act are fully expended, publish, with respect to the
period beginning on the date of enactment of this Act, and
ending on the date on which the information is published--
(A) with respect to each entity to which a grant
under this Act has been made--
(i) the name of the entity, including the
name under which the entity does business if
that name is different from the name of the
entity;
(ii) the address of the entity; and
(iii) if the physical location for the
eligible business listed on the application is
different from the address of the entity, the
address of such physical location; and
(B) the amount of each grant described in paragraph
(1); and
(3) with respect to an applicant that applies for a grant
under this Act and is denied by the Administrator--
(A) make available to the applicant a brief
explanation identifying the reason why the
Administrator denied the application of the applicant,
which shall include, where applicable, a citation to
the statutory, regulatory, or guidance provision with
which the applicant failed to comply and that was the
basis for the denial; and
(B) establish a reconsideration process through
which the applicant may--
(i) submit to the Administrator additional
clarifying information the applicant determines
to be relevant to whether the applicant is
eligible for the grant; and
(ii) receive a second review of the
application submitted by the applicant.
SEC. 7. BUSINESS IDENTIFIERS.
In accepting applications for grants under this Act, the
Administrator shall prioritize the ability of each applicant to use the
existing business identifier of the applicant over requiring other
forms of registration or identification that may not be common to the
industry of the applicant, which may impose additional burdens on the
applicant.
SEC. 8. OVERSIGHT AND AUDITS.
(a) In General.--The Administrator shall institute an oversight and
audit plan with respect to entities receiving grants under this Act,
which shall include--
(1) documentation requirements that are consistent with the
eligibility and other requirements, including by requiring an
entity that receives a grant under this Act to retain records
that demonstrate compliance with those requirements; and
(2) reviews of the use by entities of grants under this Act
to ensure compliance with the requirements under this Act,
which shall include--
(A) the review and audit, by the Administrator, of
grants made under this Act; and
(B) in the case of fraud or other material
noncompliance with respect to a grant made under this
Act--
(i) a requirement that the applicable
entity repay to the Administrator the amount of
the misspent funds; or
(ii) the pursuit, by the Administrator, of
legal action to collect the misspent funds.
(b) Submission of Plan.--Not later than 90 days after the date of
enactment of this Act, 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 the plan required
under subsection (a), which shall describe--
(1) the policies and procedures of the Administrator for
conducting oversight and audits of grants under this Act; and
(2) the metrics that the Administrator will use to
determine which grants will be audited under that plan.
(c) Reports.--Not later than 90 days after the date of enactment of
this Act, once every 30 days thereafter until the date that is 180 days
after the date on which all amounts made available to carry out this
Act have been fully expended, and upon request 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 on the oversight and audit
activities of the Administrator under this section, which shall
include--
(1) the total number of grants under this Act approved and
disbursed;
(2) the total amount of each grant under this Act received
by each entity that received such a payment;
(3) the number of active investigations and audits of
grants made under this Act;
(4) the number of completed reviews and audits of grants
under this Act, including a description of--
(A) any findings of fraud or other material
noncompliance;
(B) questionable costs identified by the
Administrator; and
(C) the total amount recouped from ineligible
recipients; and
(5) a description of any substantial changes made to the
plan required under subsection (a).
SEC. 9. GROSS RECEIPTS.
The Administrator may authorize applicants for grants under this
Act to measure annual gross receipts using either the calendar year or
fiscal year.
SEC. 10. RULES.
Not later than 60 days after the date of enactment of this Act, the
Administrator shall issue rules to carry out this Act, without regard
to the notice requirements under section 553(b) of title 5, United
States Code.
SEC. 11. TRANSFER OF FUNDS.
(a) In General.--The unobligated balances of amounts made available
under the heading ``Small Business Administration--Business Loans
Program Account, CARES Act'' in section 323(d)(1)(A) of division N of
the Consolidated Appropriations Act, 2021 (Public Law 116-260; 134
Stat. 2019) for the cost of guaranteed loans as authorized under
paragraphs (36) and (37) of section 7(a) of the Small Business Act (15
U.S.C. 636(a)) shall be transferred to the Fund.
(b) CARES Act.--The unexpended balances of amounts made available
under the heading ``Small Business Administration--Business Loans
Program Account, CARES Act'' in section 1107(a)(1) of the Coronavirus
Aid, Relief, and Economic Security Act (15 U.S.C. 9006(a)(1)) shall be
transferred to the Fund.
(c) Shuttered Venues.--The unobligated balances in the account
appropriated under the heading ``Small Business Administration--
Shuttered Venue Operators'' shall be transferred to the Fund.
(d) American Rescue Plan Act.--
(1) In general.--If the Administrator submits to Congress a
certification described in paragraph (2), effective on the date
of the certification, the unobligated balances of amounts made
available under section 5002(b) of the American Rescue Plan Act
of 2021 (15 U.S.C. 9009 note), including any of such balances
that were transferred under section 90007(b)(2) of the
Infrastructure Investment and Jobs Act (Public Law 117-58; 135
Stat. 1347), shall be transferred to the Fund.
(2) Certification of sufficiency of funds for eidl
program.--A certification described in this paragraph is a
certification that, if the balances described in paragraph (1)
are transferred, the Administrator will still have sufficient
funds to make loans described in section 7(b)(2) of the Small
Business Act (15 U.S.C. 636(b)(2)) to each entity described in
section 1110(b) of the CARES Act (15 U.S.C. 9009(b)) that
submitted--
(A) an application for such a loan on or before
December 31, 2021; or
(B) a request for a modification, rehearing, or
appeal in connection with an application for such a
loan on or before May 6, 2022.
<all>