To establish requirements for funds appropriated to carry out the paycheck protection program, to require reporting on the use of such funds, and for other purposes.

I 116TH CONGRESS 2D SESSION H. R. 6758 To establish requirements for funds appropriated to carry out the paycheck protection program, to require reporting on the use of such funds, and for other purposes. IN THE HOUSE OF REPRESENTATIVES MAY 8, 2020 Ms. GARCIA of Texas introduced the following bill; which was referred to the Committee on Small Business A BILL To establish requirements for funds appropriated to carry out the paycheck protection program, to require report- ing on the use of such funds, 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. SET ASIDE FOR MINORITY DEPOSITORY INSTI- 3 TUTIONS AND COMMUNITY DEVELOPMENT 4 FINANCIAL INSTITUTIONS UNDER THE PAY- 5 CHECK PROTECTION PROGRAM AND HEALTH 6 CARE ENHANCEMENT ACT. 7 With respect to amounts appropriated under section 8 101(a) of division A of the Paycheck Protection Program 9 VerDate Sep 11 2014 04:29 May 19, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H6758.IH H6758 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 6758 IH and Health Care Enhancement Act (Public Law 116–139) 1 for the cost of guaranteed loans made under section 2 7(a)(36) of the Small Business Act (15 U.S.C. 3 636(a)(36)), $10,000,000,000 of such amounts not other- 4 wise obligated or expended shall be set aside for loan guar- 5 antees made by minority depository institutions (as de- 6 fined in section 308 of the Financial Institutions Reform, 7 Recovery, and Enforcement Act of 1989 (12 U.S.C. 1463 8 note)) and community development financial institutions 9 (as defined in section 103 of the Riegle Community Devel- 10 opment and Regulatory Improvement Act of 1994 (12 11 U.S.C. 4702)). 12 SEC. 2. SET ASIDE FOR CERTAIN LENDERS AND REPORT- 13 ING REQUIREMENTS FOR THE PAYCHECK 14 PROTECTION PROGRAM. 15 (a) SET ASIDE FOR CERTAIN LENDERS.— 16 (1) IN GENERAL.—On the date on which all 17 amounts appropriated by the Paycheck Protection 18 Program and Health Care Enhancement Act (Public 19 Law 116–139) under the heading ‘‘Small Business 20 Administration—Business Loans Program Account, 21 CARES Act’’ are expended, subparagraph (S) of 22 section 7(a)(36) of the Small Business Act (15 23 U.S.C. 636(a)(36)(S)) is amended to read as fol- 24 lows: 25 VerDate Sep 11 2014 04:29 May 19, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H6758.IH H6758 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 6758 IH ‘‘(S) SET ASIDE FOR CERTAIN LENDER.— 1 The Administrator shall provide for the cost of 2 guaranteed covered loans made under this para- 3 graph— 4 ‘‘(i) a set aside of 20 percent of each 5 amount appropriated pursuant to this to 6 carry out this paragraph for loans made by 7 community financial institutions (as de- 8 fined in subparagraph (A)(xi) of such sec- 9 tion), insured depository institutions (as 10 defined in subparagraph (A)(i) of such sec- 11 tion), and credit unions (as defined in sub- 12 paragraph (A)(xii) of such section), with 13 consolidated assets of less than 14 $10,000,000,000; 15 ‘‘(ii) a set aside of 10 percent of each 16 amount appropriated pursuant to this to 17 carry out this paragraph for loans made by 18 insured depository institutions (as defined 19 in subparagraph (A)(i) of such section) 20 and credit unions (as defined in subpara- 21 graph (A)(xii) of such section) with con- 22 solidated assets of not less than 23 $10,000,000,000 and less than 24 $50,000,000,000; and 25 VerDate Sep 11 2014 00:19 May 23, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H6758.IH H6758 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 6758 IH ‘‘(iii) a set aside equal the greater of 1 $10,000,000,000 or 5 percent of each 2 amount appropriated pursuant to this to 3 carry out this paragraph for loans made by 4 minority depository institutions (as defined 5 in section 308 of the Financial Institutions 6 Reform, Recovery, and Enforcement Act of 7 1989 (12 U.S.C. 1463 note)) and commu- 8 nity development financial institutions (as 9 defined in section 103 of the Riegle Com- 10 munity Development and Regulatory Im- 11 provement Act of 1994 (12 U.S.C. 12 4702)).’’. 13 (2) NOTIFICATION.—The Administrator of the 14 Small Business Administration shall notify the Law 15 Revision Counsel of the House of Representatives of 16 the date on which the amounts described under 17 paragraph (1) are expended so that the Law Revi- 18 sion Counsel may execute the amendments made by 19 paragraph (1). 20 (b) PROCESSING.—Section 7(a)(36) of the Small 21 Business Act (15 U.S.C. 636(a)(36)) is amended by add- 22 ing at the end the following new subparagraph: 23 ‘‘(T) APPLICATION PROCESSING.— 24 VerDate Sep 11 2014 04:29 May 19, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H6758.IH H6758 kjohnson on DSK79L0C42PROD with BILLS 5 •HR 6758 IH ‘‘(i) IN GENERAL.—The Administrator 1 and the Secretary of the Treasury shall, at 2 least twice weekly, provide separate 8-hour 3 period during which the Administrator and 4 the Secretary shall process the following 5 applications under this paragraph: 6 ‘‘(I) Applications compiled by 7 lenders with consolidated assets of 8 less than $1,000,000,000 that are au- 9 thorized to make loans under this 10 paragraph. 11 ‘‘(II) Applications compiled by 12 lenders from eligible recipients that 13 have 20 or fewer employees for a prin- 14 cipal amount of a covered loan of less 15 than $200,000. 16 ‘‘(ii) REQUIREMENTS.—The Adminis- 17 trator and the Secretary shall, at least 72 18 hours in advance, provide notice of when 19 an 8-hour period described in clause (i) 20 will begin. Such 8-hour period may not be 21 between 12 a.m. and 8 a.m.’’. 22 (c) REPORTS.— 23 (1) IN GENERAL.—During the period beginning 24 on the date of the enactment of an Act appro- 25 VerDate Sep 11 2014 04:29 May 19, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H6758.IH H6758 kjohnson on DSK79L0C42PROD with BILLS 6 •HR 6758 IH priating amounts under the heading ‘‘Small Busi- 1 ness Administration—Business Loans Program Ac- 2 count, CARES Act’’ that is on or after the date of 3 the enactment of this Act, and ending on the date 4 on which such amounts are expended, the Adminis- 5 trator of the Small Business Administrator and the 6 Secretary of the Treasury shall make publicly avail- 7 able— 8 (A) on a daily basis, the amount of funds 9 under such heading that have not been obli- 10 gated or expended; and 11 (B) on a weekly basis, the amount of funds 12 under such heading made available to lenders, 13 disaggregated by the type of lender (including 14 minority depository institutions (as defined in 15 section 308 of the Financial Institutions Re- 16 form, Recovery, and Enforcement Act of 1989 17 (12 U.S.C. 1463 note)) and community develop- 18 ment financial institutions (as defined in sec- 19 tion 103 of the Riegle Community Development 20 and Regulatory Improvement Act of 1994 (12 21 U.S.C. 4702))) and the total consolidated assets 22 of each such lender. 23 (2) PRIOR EXPENDITURES.—Not later than 7 24 days after the date of the enactment of this Act, the 25 VerDate Sep 11 2014 04:29 May 19, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H6758.IH H6758 kjohnson on DSK79L0C42PROD with BILLS 7 •HR 6758 IH Administrator of the Small Business Administrator 1 and the Secretary of the Treasury shall make pub- 2 licly available a report on funds made available 3 under the heading ‘‘Small Business Administra- 4 tion—Business Loans Program Account, CARES 5 Act’’ to lenders, disaggregated by the type of lender 6 (including minority depository institutions (as de- 7 fined in section 308 of the Financial Institutions Re- 8 form, Recovery, and Enforcement Act of 1989 (12 9 U.S.C. 1463 note)) and community development fi- 10 nancial institutions (as defined in section 103 of the 11 Riegle Community Development and Regulatory Im- 12 provement Act of 1994 (12 U.S.C. 4702))) and the 13 total consolidated assets of each such lender. 14 Æ VerDate Sep 11 2014 04:29 May 19, 2020 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6301 E:\BILLS\H6758.IH H6758 kjohnson on DSK79L0C42PROD with BILLS