§9009b — Title 15 Commerce and Trade | U.S. Code

Summary

Provides one-time $10,000 payments to certain small businesses in low-income areas that lost more than 30% of their revenue during the pandemic. To get the money, a business must have applied for an EIDL loan under section 636(b)(2) during the covered period (including before December 27, 2020), be in a low-income community, have no more than 300 employees, and show the required revenue loss. Agricultural enterprises are generally excluded. If a business already got an emergency grant before December 27, 2020, it can get the difference up to $10,000. The SBA must verify requests and can ask for records, including tax documents. If a business asks for the payment and already got a prior grant, the SBA has 21 days to verify, pay the difference, or explain a denial. Payments are processed in the order received, but first priority goes to businesses that already got earlier emergency grants and second to businesses that applied but did not get a grant because funds ran out. Loan eligibility rules still apply. The SBA must tell prior grant recipients and applicants who missed out that they may be eligible. The program has $20,000,000,000 available through December 31, 2021, with $20,000,000 set aside for the Inspector General. Fraud cases must be filed within 10 years of the offense.

Title 15, §9009b

Commerce and Trade — Source: USLM XML via OLRC

(a)In this section:

(1)The term “agricultural enterprise” has the meaning given the term in section 647(b) of this title.

(2)The term “covered entity”—

(A)means an eligible entity that—

(i)applies for a loan under section 636(b)(2) of this title during the covered period, including before December 27, 2020;

(ii)is located in a low-income community;

(iii)has suffered an economic loss of greater than 30 percent; and

(iv)employs not more than 300 employees; and

(B)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.

(3)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.

(4)The term “economic loss” means, with respect to a covered entity—

(A)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

(B)if the covered entity is a seasonal business concern, such other amount determined appropriate by the Administrator.

(5)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.

(6)The term “low-income community” has the meaning given the term in section 45D(e) of title 26.

(b)(1)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—

(A)the applicable loan for which the covered entity applies or applied under section 636(b)(2) of this title is or was approved;

(B)the covered entity accepts or accepted the offer of the Administrator with respect to an approved loan described in subparagraph (A); or

(C)the covered entity has previously received a loan under section 636(a)(36) of this title.

(2)(A)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.

(B)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—

(i)perform the verification required under subsection (c);

(ii)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

(iii)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.

(C)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.

(c)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.

(d)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—

(1)first priority to covered entities described in subsection (b)(2)(A); and

(2)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).

(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.

(f)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):

(1)Each entity that received an emergency grant under section 9009(e) of this title before December 27, 2020.

(2)Each entity that, before December 27, 2020—

(A)applied for a loan under section 636(b)(2) of this title; and

(B)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).

(g)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.

(h)There are authorized to be appropriated to the Administrator $20,000,000,000 to carry out this section—

(1)which shall remain available through December 31, 2021; and

(2)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.

(i)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.

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 332 of this Act, referred to in subsec. (a)(3), is section 332 of div. N of Pub. L. 116–260. Codification Section was enacted as part of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, and not as part of the CARES Act which in part comprises this chapter.

Amendments

2022—Subsec. (i). Pub. L. 117–165 added subsec. (i).

Statutory Notes and Related Subsidiaries

Effective Date

Section effective on Dec. 27, 2020, and applicable to loans and grants made on or after Dec. 27, 2020, see section 348 of Pub. L. 116–260, set out as an

Effective Date

of 2020 Amendment note under section 636 of this title. Tax Treatment of Targeted EIDL Advances Pub. L. 117–2, title IX, § 9672, Mar. 11, 2021, 135 Stat. 184, provided that: “For purposes of the Internal Revenue Code of 1986 [26 U.S.C. 1 et seq.]— “(1) amounts received from the Administrator of the Small Business Administration in the form of a targeted EIDL advance under section 331 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (title III of division N of Public Law 116–260) [15 U.S.C. 9009b] shall not be included in the gross income of the person that receives such amounts, “(2) no deduction shall be denied, no tax attribute shall be reduced, and no basis increase shall be denied, by reason of the exclusion from gross income provided by paragraph (1), and “(3) in the case of a partnership or S corporation that receives such amounts—“(A) any amount excluded from income by reason of paragraph (1) shall be treated as tax exempt income for purposes of section 705 and 1366 of the Internal Revenue Code of 1986 [26 U.S.C. 705, 1366], and “(B) the Secretary of the Treasury (or the Secretary’s delegate) shall prescribe rules for determining a partner’s distributive share of any amount described in subparagraph (A) for purposes of section 705 of the Internal Revenue Code of 1986.” Clarification of Tax Treatment of Certain Loan Forgiveness and Other Business Financial AssistanceFunding under this section not included in gross income of recipient, see section 278 of div. N of Pub. L. 116–260, set out as a note under section 9008 of this title. Definitions “Administration” and “Administrator” mean the Small Business Administration and Administrator of the Small Business Administration, see section 302 of div. N of Pub. L. 116–260, set out as a note under section 9001 of this title.

§9009b Targeted EIDL advance for small business continuity, adaptation, and resiliency

Summary

Title 15, §9009b

Notes & Related Subsidiaries

Editorial Notes

References in Text

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Citations & Metadata