15 U.S.C. § 9009b — Targeted EIDL advance for small business continuity, adaptation, and resiliency
submitted 6 years ago by Pub. L. 116-260 to r/title-15-COMMERCE-AND-TRADE · 1,051 words · no verdicts yet
This section provides targeted payments to certain eligible entities in low-income communities that suffered more than a 30 percent economic loss and have no more than 300 employees. The Administrator verifies requests, prioritizes certain earlier applicants, and may use Administration personnel and resources. The section authorizes $20 billion, including $20 million for the Inspector General, and sets a 10-year fraud limitation period.
(a) Definitions. (1) "Agricultural enterprise" has the meaning given in section 647(b) of this title. (2) "Covered entity" means an eligible entity that applied or applies for a section 636(b)(2) loan during the covered period, is in a low-income community, suffered an economic loss greater than 30 percent, and has no more than 300 employees. Except for an entity included under 13 C.F.R. §123.300(c) or a successor rule, it does not include an agricultural enterprise. (3) "Covered period" has the meaning in section 9009(a)(1), as amended by section 332 of this Act. (4) "Economic loss" means, for a covered entity, the decline in gross receipts during an eight-week period between March 2 and December 31, 2021, compared with a comparable eight-week period immediately before March 2, 2020, or during 2019. For a seasonal business concern, it means another amount the Administrator* finds appropriate. (5) "Eligible entity" means an entity eligible during the covered period for a section 636(b)(2) loan as described in section 9009(b). (6) "Low-income community" has the meaning in section 45D(e) of title 26.
(b) Entitlement to full amount. (1) Subject to paragraph (2), after the Administrator verifies its request under subsection (c), a covered entity must receive a total of $10,000 under section 9009(e), whether or not the related section 636(b)(2) loan was approved, the entity accepted the approved-loan offer, or the entity previously received a section 636(a)(36) loan. (2)(A) If the entity received an emergency grant under section 9009(e) before December 27, 2020, its payment is $10,000 minus that earlier grant. (B) Within 21 days after receiving its request, the Administrator must perform the subsection (c) verification; if the entity is covered, pay that difference; and if it is not entitled to payment, notify it and explain why. (C) This paragraph does not require repayment of any earlier emergency grant.
(c) Verification. The Administrator must require whatever information, including tax records, is necessary to verify that a requesting entity is covered, even if the entity previously gave the information to the Administrator.
(d) Order of processing. Requests are processed in the order received, except that first priority goes to entities described in subsection (b)(2)(A), and second priority goes to entities that had not received an emergency grant by the request date because funding for section 9009(e) was unavailable.
(e) Applicability. Every eligibility restriction applying to a section 636(b)(2) loan, including restrictions in 13 C.F.R. §§123.300 and 123.301 or successor rules, also applies to funding under this section.
(f) Notification. The Administrator must notify each entity that it may qualify if it meets subsection (a)(2)(A)(ii), (iii), and (iv): (1) each entity that received a section 9009(e) emergency grant before December 27, 2020; and (2) each entity that before that date applied for a section 636(b)(2) loan but did not receive the emergency grant because funding was unavailable.
(g) Administration*. The Administrator may rely on Administration Office of Disaster Assistance loan officers and other personnel and resources, including contractors.
(h) Authorization of appropriations. Congress may appropriate $20,000,000,000 to the Administrator, available through December 31, 2021, including $20,000,000 for the Administration's Inspector General to prevent waste, fraud, and abuse concerning this funding.
(i) Statute of limitations. Despite any other law, a criminal charge or civil enforcement action alleging fraud by a borrower concerning use of an amount received under this section must be filed within 10 years after the offense.
In this section:
The term “agricultural enterprise” has the meaning given the term in section 647(b) of this title.
The term “covered entity”—
means an eligible entity that—
applies for a loan under section 636(b)(2) of this title during the covered period, including before December 27, 2020;
is located in a low-income community;
has suffered an economic loss of greater than 30 percent; and
employs not more than 300 employees; and
except with respect to an entity included under section 123.300(c) of title 13, Code of Federal Regulations, or any successor regulation, does not include an agricultural enterprise.
The term “covered period” has the meaning given the term in section 9009(a)(1) of this title, as amended by section 332 of this Act.
The term “economic loss” means, with respect to a covered entity—
the amount by which the gross receipts of the covered entity declined during an 8-week period between March 2, 2020, and December 31, 2021, relative to a comparable 8-week period immediately preceding March 2, 2020, or during 2019; or
if the covered entity is a seasonal business concern, such other amount determined appropriate by the Administrator*.
The term “eligible entity” means an entity that, during the covered period, is eligible for a loan made under section 636(b)(2) of this title, as described in section 9009(b) of this title.
The term “low-income community” has the meaning given the term in section 45D(e) of title 26.
Subject to paragraph (2), a covered entity, after submitting a request to the Administrator that the Administrator verifies under subsection (c), shall receive a total of $10,000 under section 9009(e) of this title, without regard to whether—
the applicable loan for which the covered entity applies or applied under section 636(b)(2) of this title is or was approved;
the covered entity accepts or accepted the offer of the Administrator with respect to an approved loan described in subparagraph (A); or
the covered entity has previously received a loan under section 636(a)(36) of this title.
With respect to a covered entity that received an emergency grant under section 9009(e) of this title before December 27, 2020, the amount of the payment that the covered entity shall receive under this subsection (after satisfaction of the procedures required under subparagraph (B)) shall be the difference between $10,000 and the amount of that previously received grant.
If the Administrator receives a request under paragraph (1) from a covered entity described in subparagraph (A) of this paragraph, the Administrator shall, not later than 21 days after the date on which the Administrator receives the request—
perform the verification required under subsection (c);
if the Administrator, under subsection (c), verifies that the entity is a covered entity, provide to the covered entity a payment in the amount described in subparagraph (A); and
with respect to a covered entity that the Administrator determines is not entitled to a payment under this section, provide the covered entity with a notification explaining why the Administrator reached that determination.
Nothing in this paragraph may be construed to require any entity that received an emergency grant under section 9009(e) of this title before December 27, 2020, to repay any amount of that grant.
In carrying out this section, the Administrator shall require any information, including any tax records, from an entity submitting a request under subsection (b) that the Administrator determines to be necessary to verify that the entity is a covered entity, without regard to whether the entity has previously submitted such information to the Administrator.
The Administrator shall process and approve requests for payments under subsection (b) in the order that the Administrator receives the requests, except that the Administrator shall give—
first priority to covered entities described in subsection (b)(2)(A); and
second priority to covered entities that have not received emergency grants under section 9009(e) of this title, as of the date on which the Administrator receives such a request, because of the unavailability of funding to carry out such section 9009(e).
In addition to any other restriction imposed under this section, any eligibility restriction applicable to a loan made under section 636(b)(2) of this title, including any restriction under section 123.300 or 123.301 of title 13, Code of Federal Regulations, or any successor regulation, shall apply with respect to funding provided under this section.
The Administrator shall provide notice to each of the following entities stating that the entity may be eligible for a payment under this section if the entity satisfies the requirements under clauses (ii), (iii), and (iv) of subsection (a)(2)(A):
Each entity that received an emergency grant under section 9009(e) of this title before December 27, 2020.
Each entity that, before December 27, 2020—
applied for a loan under section 636(b)(2) of this title; and
did not receive an emergency grant under section 9009(e) of this title because of the unavailability of funding to carry out such section 9009(e).
In carrying out this section, the Administrator may rely on loan officers and other personnel of the Office of Disaster Assistance of the Administration and other resources of the Administration, including contractors of the Administration.
There are authorized to be appropriated to the Administrator $20,000,000,000 to carry out this section—
which shall remain available through December 31, 2021; and
of which $20,000,000 is authorized to be appropriated to the Inspector General of the Administration to prevent waste, fraud, and abuse with respect to funding provided under this section.
Notwithstanding any other provision of law, any criminal charge or civil enforcement action alleging that a borrower engaged in fraud with respect to the use of any amount received pursuant to this section shall be filed not later than 10 years after the offense was committed.
Source credit: (Pub. L. 116–260, div. N, title III, § 331, Dec. 27, 2020, 134 Stat. 2043; Pub. L. 117–165, § 2(c), Aug. 5, 2022, 136 Stat. 1363.)
- 2020Enacted · Pub. L. 116-260 · 134 Stat. 2043
- 2022Amended · Pub. L. 117-165 · 136 Stat. 1363
A history note hasn’t been published yet. The record shows enactment by Pub. L. 116-260 on 2020-12-27.
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