Relief for Restaurants and other Hard Hit Small Businesses Act of 2022

II Calendar No. 387 117TH CONGRESS 2D SESSION H. R. 3807 IN THE SENATE OF THE UNITED STATES APRIL 7, 2022 Received MAY 24, 2022 Read the first time MAY 25, 2022 Read the second time and placed on the calendar AN ACT To amend the American Rescue Plan Act of 2021 to increase appropriations to the Restaurant Revitalization Fund, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Relief for Restaurants 4 and other Hard Hit Small Businesses Act of 2022’’. 5 VerDate Sep 11 2014 03:21 May 26, 2022 Jkt 029200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3807.PCS H3807 pbinns on DSKJLVW7X2PROD with $$_JOB 2 HR 3807 PCS SEC. 2. RESTAURANT REVITALIZATION GRANTS. 1 (a) APPROPRIATION.—Section 5003(b)(2) of the 2 American Rescue Plan Act of 2021 (15 U.S.C. 3 9009c(b)(2)) is amended— 4 (1) in subparagraph (A)— 5 (A) by striking ‘‘$28,600,000,000’’ and in- 6 serting ‘‘$70,600,000,000’’; and 7 (B) by inserting ‘‘, of which not more than 8 $420,000,000 shall be for administrative ex- 9 penses to carry out this section, and of which 10 $7,500,000 shall be for the Inspector General 11 of the Small Business Administration, 12 $7,500,000 for the Department of Justice for 13 investigative and prosecutorial activities related 14 to fraud and abuse, and $7,500,000 for Pan- 15 demic Response Accountability Committee, for 16 audits of grants under this section to inves- 17 tigate fraud and to identify improper payments 18 and ineligible recipients, and for other nec- 19 essary expenses’’ before the period at the end; 20 and 21 (2) in subparagraph (B)(i)(II), by striking 22 ‘‘$23,600,000,000’’ and inserting ‘‘any remaining 23 amounts not used for a purpose authorized under 24 subparagraph (A) or clause (i) of this subpara- 25 graph’’. 26 VerDate Sep 11 2014 03:21 May 26, 2022 Jkt 029200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3807.PCS H3807 pbinns on DSKJLVW7X2PROD with $$_JOB 3 HR 3807 PCS (b) INSUFFICIENT FUNDING.—Section 5003 of the 1 American Rescue Plan Act of 2021 (15 U.S.C. 9009c) is 2 amended by adding at the end the following: 3 ‘‘(d) INSUFFICIENT FUNDING.— 4 ‘‘(1) IN GENERAL.—If the Administrator deter- 5 mines that the amounts made available to carry out 6 this section are insufficient to make grants in the 7 amount provided in subsection (c)(4) to each eligible 8 entity that has submitted an application in accord- 9 ance with the program guidelines in effect on the 10 day before the date of enactment of this subsection, 11 but has not received an award as of such date, the 12 Administrator shall make grants with the available 13 amounts to each such eligible applicant— 14 ‘‘(A) such that the amount of the grant 15 that each such eligible entity would have other- 16 wise received under this section is reduced by 17 an equal percentage; 18 ‘‘(B) by establishing a maximum amount 19 for a grant made under this subsection to en- 20 sure that smaller eligible entities still receive 21 grants in the amounts provided under sub- 22 section (c)(4); or 23 ‘‘(C) by providing full awards in the 24 amounts provided under subsection (c)(4) below 25 VerDate Sep 11 2014 03:21 May 26, 2022 Jkt 029200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3807.PCS H3807 pbinns on DSKJLVW7X2PROD with $$_JOB 4 HR 3807 PCS a certain threshold (as the Administrator may 1 establish) and reducing grants above that 2 threshold by an equal percentage. 3 ‘‘(2) RESERVING FUNDS.—Nothing in para- 4 graph (1) shall prevent the Administrator from— 5 ‘‘(A) reserving funding for applicants that 6 may be determined to be eligible for a grant 7 under this section upon reconsideration; or 8 ‘‘(B) making partial awards to eligible en- 9 tities on a preliminary basis until the amount of 10 funding required to fund grants to all eligible 11 applicants is established, upon the completion 12 of the reconsideration process.’’. 13 (c) REPORTS; RECONSIDERATION; VERIFICATION OF 14 BUSINESS TYPE.—Section 5003 of the American Rescue 15 Plan Act of 2021 (15 U.S.C. 9009c), as amended by sub- 16 section (b), is further amended by adding at the end the 17 following: 18 ‘‘(e) REPORTS.—The Administrator shall— 19 ‘‘(1) on a biweekly basis until the amounts 20 made available to carry out this section are fully ex- 21 pended, publish data that shows, for the period be- 22 ginning on the date on which the Administrator 23 began making grants under this section and ending 24 on the date on which the information is published— 25 VerDate Sep 11 2014 03:21 May 26, 2022 Jkt 029200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H3807.PCS H3807 pbinns on DSKJLVW7X2PROD with $$_JOB 5 HR 3807 PCS ‘‘(A) with respect to applications for grants 1 under this section, the number of those applica- 2 tions— 3 ‘‘(i) that the Administrator has re- 4 ceived; 5 ‘‘(ii) that the Administrator has re- 6 viewed or is in the process of reviewing; 7 and 8 ‘‘(iii) with respect to which the Ad- 9 ministrator has made a decision; and 10 ‘‘(B) the number and dollar amount of 11 grants under this section— 12 ‘‘(i) that have been awarded; and 13 ‘‘(ii) that have been disbursed; 14 ‘‘(2) on a weekly basis until the amounts made 15 available to carry out this section are fully expended, 16 publish, with respect to the period beginning on the 17 date of enactment of this subsection and ending on 18 the date on which the information is published— 19 ‘‘(A) with respect to each eligible entity to 20 which a grant is made under this section— 21 ‘‘(i) the name of the eligible entity, in- 22 cluding the name or names under which 23 the eligible entity does business if that 24 VerDate Sep 11 2014 03:21 May 26, 2022 Jkt 029200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H3807.PCS H3807 pbinns on DSKJLVW7X2PROD with $$_JOB 6 HR 3807 PCS name is different from the name of the eli- 1 gible entity; and 2 ‘‘(ii) the address of— 3 ‘‘(I) the eligible entity; and 4 ‘‘(II) the physical location or lo- 5 cations for the eligible entity listed on 6 the application, if different from the 7 address of the eligible entity; 8 ‘‘(B) the amount of each grant described 9 in subparagraph (A); and 10 ‘‘(C) the business category listed in sub- 11 section (a)(4)(A) to which the eligible entity be- 12 longs. 13 ‘‘(f) RECONSIDERATION.— 14 ‘‘(1) EXPLANATION FOR DENIAL.—With respect 15 to an applicant that applies for a grant under this 16 section and is denied by the Administrator, the Ad- 17 ministrator shall make available to the applicant a 18 brief explanation identifying the reason why the Ad- 19 ministrator denied the application of the applicant, 20 which shall include, where applicable, a citation to 21 the statutory, regulatory, or guidance provision with 22 which the applicant failed to comply and that was 23 the basis for the denial. 24 VerDate Sep 11 2014 03:21 May 26, 2022 Jkt 029200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H3807.PCS H3807 pbinns on DSKJLVW7X2PROD with $$_JOB 7 HR 3807 PCS ‘‘(2) PROCESS.—The Administrator shall estab- 1 lish a reconsideration process through which the ap- 2 plicant may— 3 ‘‘(A) submit to the Administrator addi- 4 tional information the applicant determines to 5 be relevant to whether the applicant is eligible 6 for the grant; and 7 ‘‘(B) receive a review of the application 8 and such additional information submitted 9 under subparagraph (A). 10 ‘‘(g) VERIFICATION OF BUSINESS TYPE.—If the Ad- 11 ministrator verifies that an applicant for a loan under sec- 12 tion 7(a)(36) of the Small Business Act is not an eligible 13 business type for a grant under this section using credible 14 information other than information obtained from the ap- 15 plication of the applicant for such loan during 2020, the 16 Administrator may reject the application solely on those 17 grounds.’’. 18 (d) REQUIREMENT OF CONTINUING OPERATION.— 19 For any application for a grant under section 5003 of the 20 American Rescue Plan Act of 2021 (15 U.S.C. 9009c) 21 that is pending on the date of enactment of this Act or 22 for which the applicant has received an award notice but 23 the Administrator has not disbursed amounts under the 24 grant, the Administrator may not disburse amounts under 25 VerDate Sep 11 2014 03:21 May 26, 2022 Jkt 029200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H3807.PCS H3807 pbinns on DSKJLVW7X2PROD with $$_JOB 8 HR 3807 PCS the grant unless the applicant submits a statement to the 1 Administrator indicating the applicant is still operating, 2 or intends to reopen within 6 months after the date of 3 the statement is submitted, the place of business for which 4 such applicant is seeking such grant. 5 (e) OVERSIGHT AND AUDITS.—Section 5003 of the 6 American Rescue Plan Act of 2021 (15 U.S.C. 9009c), 7 as amended by subsection (c), is further amended by add- 8 ing at the end the following: 9 ‘‘(h) OVERSIGHT AND AUDITS.— 10 ‘‘(1) IN GENERAL.—The Administrator shall in- 11 stitute an oversight and audit plan with respect to 12 eligible entities receiving grants under this section, 13 which shall include— 14 ‘‘(A) documentation requirements that are 15 consistent with the eligibility and other require- 16 ments under this section, including by requiring 17 an eligible entity that receives a grant under 18 this section to retain records that demonstrate 19 compliance with those requirements; and 20 ‘‘(B) reviews of the use of grants made 21 under this section by eligible entities. 22 ‘‘(2) SUBMISSION OF PLAN.—Not later than 30 23 days after the date of enactment of this subsection, 24 the Administrator shall submit to the Committee on 25 VerDate Sep 11 2014 03:21 May 26, 2022 Jkt 029200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H3807.PCS H3807 pbinns on DSKJLVW7X2PROD with $$_JOB 9 HR 3807 PCS Small Business and Entrepreneurship of the Senate 1 and the Committee on Small Business of the House 2 of Representatives the plan required under para- 3 graph (1), which shall describe— 4 ‘‘(A) the policies and procedures of the Ad- 5 ministrator for conducting oversight and audits 6 of grants made under this section; and 7 ‘‘(B) the metrics that the Administrator 8 will use to determine which grants made under 9 this section will be audited under that plan. 10 ‘‘(3) REPORTS.—Not later than 60 days after 11 the date of enactment of this subsection, and once 12 every 30 days thereafter until the date that is 180 13 days after the date on which all amounts made avail- 14 able to carry out this section have been fully ex- 15 pended, and upon request thereafter, the Adminis- 16 trator shall submit to the Committee on Small Busi- 17 ness and Entrepreneurship of the Senate and the 18 Committee on Small Business of the House of Rep- 19 resentatives a report on the oversight and audit ac- 20 tivities of the Administrator under this subsection, 21 which shall include— 22 ‘‘(A) the total number of grants approved 23 and disbursed under this section; 24 VerDate Sep 11 2014 03:21 May 26, 2022 Jkt 029200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H3807.PCS H3807 pbinns on DSKJLVW7X2PROD with $$_JOB 10 HR 3807 PCS ‘‘(B) the total amount of each grant re- 1 ceived by each eligible entity; 2 ‘‘(C) the number of active investigations 3 and audits of grants made under this section; 4 ‘‘(D) the number of completed reviews and 5 audits of grants made under this section, in- 6 cluding a description of— 7 ‘‘(i) any findings of fraud or other 8 material noncompliance with the require- 9 ments of this section; and 10 ‘‘(ii) the total amount recouped from 11 ineligible recipients; and 12 ‘‘(E) a description of any substantial 13 changes made to the plan required under para- 14 graph (1). 15 ‘‘(4) RETROACTIVE APPLICATION.—This sub- 16 section shall apply to grants and decisions made 17 under this section before, on, or after the date of en- 18 actment of this subsection.’’. 19 SEC. 3. HARD HIT INDUSTRIES AWARD PROGRAM. 20 (a) DEFINITIONS.—In this section: 21 (1) ADMINISTRATOR.—The term ‘‘Adminis- 22 trator’’ means the Administrator of the Small Busi- 23 ness Administration. 24 VerDate Sep 11 2014 03:21 May 26, 2022 Jkt 029200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H3807.PCS H3807 pbinns on DSKJLVW7X2PROD with $$_JOB 11 HR 3807 PCS (2) AFFILIATED BUSINESS.—The term ‘‘affili- 1 ated business’’ means a business in which an eligible 2 entity— 3 (A) has an equity or right to receive not 4 less than 50 percent of the profit distributions 5 of such business; or 6 (B) has, on or before March 13, 2020, con- 7 tractual authority to control the business. 8 (3) AWARD.—The term ‘‘award’’ means a fi- 9 nancial assistance payment that an eligible applicant 10 receives directly from the Small Business Adminis- 11 tration. 12 (4) COVERED PERIOD.—The term ‘‘covered pe- 13 riod’’ means the period beginning on February 15, 14 2020, and ending on the later of— 15 (A) March 31, 2023; or 16 (B) a date to be determined by the Admin- 17 istrator that is not later than 2 years after the 18 date of enactment of this section. 19 (5) ELIGIBLE ENTITY.—The term ‘‘eligible enti- 20 ty’’— 21 (A) means a small business concern that— 22 (i) employs not more than 200 em- 23 ployees; and 24 VerDate Sep 11 2014 03:21 May 26, 2022 Jkt 029200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H3807.PCS H3807 pbinns on DSKJLVW7X2PROD with $$_JOB 12 HR 3807 PCS (ii) suffered a pandemic-related rev- 1 enue loss of 40 percent or greater; and 2 (B) does not include a small business con- 3 cern that— 4 (i) is a State or local government-op- 5 erated business; 6 (ii) has received a grant under— 7 (I) section 324 of the Economic 8 Aid to Hard Hit Small Businesses, 9 Nonprofits, and Venues Act (15 10 U.S.C. 9009a); or 11 (II) section 5003 of the Amer- 12 ican Rescue Plan Act of 2021 (Public 13 Law 117–2); 14 (iii) is a publicly-traded company; 15 (iv) is an entity that is owned or oper- 16 ated by a private equity fund; or 17 (v) has a wage violation at the time of 18 application. 19 (6) ELIGIBLE SELF-EMPLOYED INDIVIDUAL.— 20 The term ‘‘eligible self-employed individual’’ has the 21 meaning given in section 7002(b) of the Families 22 First Coronavirus Response Act (26 U.S.C. 1401 23 note). 24 VerDate Sep 11 2014 03:21 May 26, 2022 Jkt 029200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H3807.PCS H3807 pbinns on DSKJLVW7X2PROD with $$_JOB 13 HR 3807 PCS (7) EXCHANGE; ISSUER; SECURITY.—The terms 1 ‘‘exchange’’, ‘‘issuer’’, and ‘‘security’’ have the 2 meanings given those terms, respectively, in section 3 3(a) of the Securities Exchange Act of 1934 (15 4 U.S.C. 78c(a)). 5 (8) PANDEMIC-RELATED REVENUE LOSS.— 6 (A) IN GENERAL.—The term ‘‘pandemic- 7 related revenue loss’’ mean [Text truncated for display. 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