15 U.S.C. § 9009 — Emergency EIDL grants

(a) Definitions This section covers the period from January 31, 2020 to December 31, 2021, called the "covered period." During that time, an "eligible entity" is any of these, as long as it has 500 or fewer employees: a business; a cooperative; an ESOP (a company plan where employees own stock, defined in section 632); a tribal small business described in section 657a(b)(2)(C); or an agricultural enterprise defined in section 647(b). A sole proprietor or independent contractor also counts, whether or not they have employees. (b) Eligible entities During the covered period, these eligible entities can apply for a loan under section 636(b)(2) — the SBA's disaster loan program — along with the small businesses, nonprofits, and small farm co-ops who could already apply. (c) Terms; credit elsewhere For COVID-19 disaster loans made during the covered period, the SBA must waive three normal rules: - Loans and advances up to $200,000 don't need a personal guarantee from the owner. - Applicants don't have to show they were in business for a full year before the disaster — except a business that wasn't operating on January 31, 2020 still can't get this waiver. - Applicants don't have to prove they couldn't get a loan anywhere else. (d) Approval and ability to repay for small dollar loans For these COVID-19 loans, the SBA may approve an applicant just by looking at their credit score, or by using another reasonable way to judge whether they can repay. The SBA may also check with the Treasury Department to confirm the applicant qualifies and that the application is accurate. (e) Emergency grant (1) In general. An eligible entity applying for a 636(b)(2) COVID-19 loan can ask the SBA for a cash advance in whatever amount it requests, up to the cap described below. Within 21 days of getting the request, the SBA must check if the entity qualifies, send the advance if it does, or send a written explanation if it doesn't. (2) Verification. Before paying out any advance, the SBA must have the applicant sign a self-certification, under penalty of perjury, that it qualifies. (3) Amount. An advance can't be more than $10,000. (4) Use of funds. The advance can be used for anything a 636(b)(2) loan could pay for, including: paid sick leave for workers who can't work because of COVID-19; keeping employees on payroll during a slowdown; paying more for supplies because the usual supply chain broke down; paying rent or a mortgage; and paying other bills the business can't cover because of lost revenue. (5) Repayment. The business never has to repay the advance, even if it's later turned down for the full loan. (6) Repealed. This paragraph was repealed by a later law passed December 27, 2020. (7) Authorization of appropriations. Congress authorized $40,000,000,000 to pay for these advances. (8) Termination. The SBA's authority to give these grants ends December 31, 2021. (9) Statute of limitations. If someone commits fraud in how they use an advance, the government has 10 years from the offense to bring a criminal charge or civil case over it.