Small Business Comeback Act

I 116TH CONGRESS 2D SESSION H. R. 7671 To provide for the establishment of a COVID–19 Small Business Recovery Fund, and for other purposes. IN THE HOUSE OF REPRESENTATIVES JULY 20, 2020 Mr. VELA (for himself and Mr. GOODEN) introduced the following bill; which was referred to the Committee on Financial Services A BILL To provide for the establishment of a COVID–19 Small Business Recovery 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 ‘‘Small Business Come- 4 back Act’’. 5 SEC. 2. DEFINITIONS. 6 In this Act, the following definitions apply: 7 (1) APPLICANT.—The term ‘‘applicant’’ means 8 a business filing an application for recovery com- 9 pensation under this Act. 10 VerDate Sep 11 2014 01:45 Aug 11, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H7671.IH H7671 pamtmann on DSKBC07HB2PROD with BILLS 2 •HR 7671 IH (2) BUSINESS.—The term ‘‘business’’ is in- 1 tended broadly to refer to any type of for-profit busi- 2 ness concern, nonprofit organization, veteran’s orga- 3 nization, or Tribal business concern, and shall in- 4 clude individuals who operate under a sole propri- 5 etorship or as an independent contractor, and eligi- 6 ble self-employed individuals. 7 (3) COLLATERAL SOURCE.—The term ‘‘collat- 8 eral source’’ means all compensation received by the 9 applicant as a result of the losses for which the ap- 10 plicant is seeking compensation under this Act, in- 11 cluding payments by Federal, State, or local govern- 12 ments, related to losses arising from the COVID–19 13 pandemic. 14 (4) COVID–19 PANDEMIC.—The term 15 ‘‘COVID–19 pandemic’’ means the national emer- 16 gency proclaimed by the President on March 13, 17 2020. 18 (5) ELIGIBLE APPLICANTS.—The term ‘‘eligible 19 applicants’’ means any type of for-profit business 20 concern, nonprofit organization, veteran’s organiza- 21 tion, or Tribal business concern, and shall include 22 individuals who operate under a sole proprietorship 23 or as an independent contractor, and eligible self- 24 employed individuals. 25 VerDate Sep 11 2014 20:57 Aug 11, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H7671.IH H7671 pamtmann on DSKBC07HB2PROD with BILLS 3 •HR 7671 IH (6) ELIGIBLE SELF-EMPLOYED INDIVIDUAL.— 1 The term ‘‘eligible self-employed individual’’ has the 2 meaning given the term in section 7002(b) of the 3 Families First Coronavirus Response Act (Public 4 Law 116–127). 5 (7) FINANCIAL INSTITUTION.—The term ‘‘fi- 6 nancial institution’’ means any institution the busi- 7 ness of which is engaging in financial activities as 8 described in section 4(k) of the Bank Holding Com- 9 pany Act (12 U.S.C. 1843(k)). 10 (8) LOW-TO-MODERATE INCOME COMMUNITY.— 11 The term ‘‘low-to-moderate income community’’ 12 means a census tract where the annualized family 13 income of the households or residents in the census 14 tract are below 80 percent of the HUD median in- 15 come for the county where the census tract is lo- 16 cated. 17 (9) MINORITY-OWNED BUSINESS.—The term 18 ‘‘minority-owned business’’ shall have the same 19 meaning given the term under section 342(g)(4) of 20 the Dodd-Frank Wall Street Reform and Consumer 21 Protection Act (12 U.S.C. 5452(g)(4)). 22 (10) SECRETARY.—The term ‘‘Secretary’’ 23 means the Secretary of the Treasury. 24 VerDate Sep 11 2014 01:45 Aug 11, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H7671.IH H7671 pamtmann on DSKBC07HB2PROD with BILLS 4 •HR 7671 IH (11) SPECIAL ADMINISTRATOR.—The term 1 ‘‘Special Administrator’’ means the Special Adminis- 2 trator appointed under this Act. 3 (12) STATE.—The term ‘‘State’’ means any 4 State of the United States, the Commonwealth of 5 Puerto Rico, the District of Columbia, the Common- 6 wealth of the Northern Mariana Islands, American 7 Samoa, Guam, each of the United States Virgin Is- 8 lands, and any territory or possession of the United 9 States. 10 (13) UNITED STATES.—The term ‘‘United 11 States’’ means the several States and includes the 12 territorial sea and the continental shelf of the 13 United States, as those terms are defined in the Vio- 14 lent Crime Control and Law Enforcement Act of 15 1994 (18 U.S.C. 2280, 2281). 16 (14) WOMEN-OWNED BUSINESS.—The term 17 ‘‘women-owned business’’ shall have the same mean- 18 ing given the term under section 342(g)(6) of the 19 Dodd-Frank Wall Street Reform and Consumer Pro- 20 tection Act (12 U.S.C. 5452(g)(6)). 21 SEC. 3. PURPOSE. 22 (a) It is the purpose of this Act to ensure domestic 23 economic recovery from the COVID–19 pandemic by en- 24 suring that businesses in impaired sectors can resume 25 VerDate Sep 11 2014 01:45 Aug 11, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H7671.IH H7671 pamtmann on DSKBC07HB2PROD with BILLS 5 •HR 7671 IH their function as strong engines of the economy and em- 1 ployers by— 2 (1) offsetting operating expenses for businesses 3 that are partially or completely shut down as a re- 4 sult of COVID–19 related closures, and supporting 5 employers’ ability to retain employees and rehire em- 6 ployees laid off as a result of the COVID–19 pan- 7 demic; 8 (2) encourage businesses to reopen by providing 9 them the necessary assistance and resources to sur- 10 vive the COVID–19 pandemic; 11 (3) assisting employees of eligible employers 12 who have contracted or have been exposed during 13 their employment to COVID–19, who are unable to 14 work and who would otherwise not be eligible for as- 15 sistance; 16 (4) providing support for small businesses and 17 women- and minority-owned businesses; and 18 (5) providing assistance in a manner that com- 19 plements the assistance programs established under 20 the Coronavirus Aid, Relief, and Economic Security 21 Act (Public Law 116–136). 22 (b) Any funds paid to an applicant under this Act 23 shall be used exclusively for the purpose of domestic eco- 24 nomic recovery as set forth in subsection (a). 25 VerDate Sep 11 2014 01:45 Aug 11, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H7671.IH H7671 pamtmann on DSKBC07HB2PROD with BILLS 6 •HR 7671 IH (c) PRIORITIZATION.—The Special Administrator 1 shall prioritize compensation payments under this Act, 2 based on— 3 (1) the level of impairment a business is experi- 4 encing as a result of the COVID–19 pandemic; 5 (2) whether the business operates in a rural or 6 low-to-moderate income community, as determined 7 by the Special Administrator; 8 (3) whether the business is a women-owned 9 business or a minority-owned business; and 10 (4) whether the business is a small business, in- 11 cluding an independently owned franchise, as deter- 12 mined by the Special Administrator. 13 SEC. 4. ADMINISTRATION. 14 (a) IN GENERAL.—The Secretary shall appoint a 15 Special Administrator on the basis of integrity and dem- 16 onstrated ability in accounting, auditing, financial anal- 17 ysis, law, management analysis, or public administration, 18 and acting through such Special Administrator, shall— 19 (1) administer the recovery compensation pro- 20 gram established under this Act; 21 (2) promulgate all procedural and substantive 22 rules for the administration of this Act; and 23 VerDate Sep 11 2014 01:45 Aug 11, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H7671.IH H7671 pamtmann on DSKBC07HB2PROD with BILLS 7 •HR 7671 IH (3) employ and supervise hearing officers and 1 other administrative personnel to perform the duties 2 of the Special Administrator under this Act. 3 (b) RECOVERY COMPENSATION SERVICES.—To the 4 extent the Special Administrator determines is necessary 5 to implement the provisions of this Act in a timely man- 6 ner, the Special Administrator is authorized to contract 7 with third parties to review business applications, rec- 8 ommend compensation determinations, arrange payments, 9 and perform audits on behalf of the Special Administrator. 10 Any third party contracting to provide recovery compensa- 11 tion services pursuant to this subsection shall be com- 12 pensated on a cost basis pursuant to guidelines established 13 by the Special Administrator in consultation with the 14 Oversight Board. 15 (c) LIMITATION OF LIABILITY.— 16 (1) The provisions of this Act and the services 17 provided under subsection (b) shall be enforced by 18 the Secretary. Any party contracting with the Spe- 19 cial Administrator to assist in recovery compensation 20 services pursuant to subsection (b) shall not bear 21 any liability for the performance of such duties ex- 22 cept for gross negligence, willful misconduct, or 23 fraud. 24 VerDate Sep 11 2014 01:45 Aug 11, 2020 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H7671.IH H7671 pamtmann on DSKBC07HB2PROD with BILLS 8 •HR 7671 IH (2) There shall be no liability imposed on any 1 party for not contracting with the Special Adminis- 2 trator as described in paragraph (1). Any financial 3 institution not contracting with the Special Adminis- 4 trator that provides assistance or information to an 5 applicant with respect to the compensation program 6 established under this Act without receiving com- 7 pensation for providing such assistance or informa- 8 tion shall not bear any liability for the provision of 9 such assistance or information except for gross neg- 10 ligence, willful misconduct, or fraud, provided that 11 nothing in this subsection shall be construed to alter 12 any duty or obligation owed by such party to an ap- 13 plicant under otherwise applicable State or Federal 14 law or by agreement with the applicant. 15 (3) State laws or regulations conflicting with 16 the directions of the Special Administrator pursuant 17 to subsection (b) are preempted to the extent of 18 such actual or implied conflict. 19 (4) GOVERNING LAW AND JURISDICTION.—The 20 district courts of the United States shall have origi- 21 nal and exclusive jurisdiction over any action arising 22 out of a contract described in subsection (b). 23 (d) CONFIDENTIALITY.— 24 VerDate Sep 11 2014 01:45 Aug 11, 2020 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H7671.IH H7671 pamtmann on DSKBC07HB2PROD with BILLS 9 •HR 7671 IH (1) RETENTION OF PRIVILEGE.—The submis- 1 sion of any nonpublicly available data and informa- 2 tion by an applicant to the Special Administrator 3 under this Act shall not constitute a waiver of, or 4 otherwise affect, any privilege arising under Federal 5 or State law (including the rules of any Federal or 6 State court) to which the data or information is oth- 7 erwise subject. 8 (2) CONTINUED APPLICATION OF PRIOR CON- 9 FIDENTIALITY AGREEMENTS.—Any requirement 10 under Federal or State law to the extent otherwise 11 applicable, or any requirement pursuant to a written 12 agreement in effect between an applicant and any 13 third party which provides an applicant’s nonpublicly 14 available data or information to the Special Adminis- 15 trator, regarding the privacy or confidentiality of 16 any data or information in the possession of the 17 third party, shall continue to apply to such data or 18 information after the data or information has been 19 provided to the Special Administrator under this 20 Act. 21 (3) The Special Administrator, and any third 22 party which obtains an applicant’s nonpublicly avail- 23 able data or information, is prohibited from sharing 24 or selling such information except as required by 25 VerDate Sep 11 2014 01:45 Aug 11, 2020 Jkt 099200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H7671.IH H7671 pamtmann on DSKBC07HB2PROD with BILLS 10 •HR 7671 IH law. The Special Administrator or third party may 1 share information as necessary to meet the obliga- 2 tions under this Act, so long as the third party 3 agrees in writing to maintain the confidentiality of 4 the information. 5 (e) AUDIT AUTHORITY.— 6 (1) IN GENERAL.—The Secretary, and the Spe- 7 cial Inspector General established by this Act, shall 8 have access, for purposes of audit, to the records 9 and other pertinent documents of the Special Ad- 10 ministrator, any third party described in subsection 11 (b), and any applicant, including with respect to col- 12 lateral source records and documents, used in car- 13 rying out this Act. 14 (f) REPORTS.— 15 (1) IN GENERAL.—The Special Administrator 16 shall submit weekly reports to Congress that shall 17 include— 18 (A) a listing of the eligible businesses re- 19 ceiving recovery compensation under this Act; 20 (B) a listing of each contract the Special 21 Administrator made with third-party service 22 providers under subsection (b), including infor- 23 mation with respect to the services being pro- 24 vided under such contracts; 25 VerDate Sep 11 2014 01:45 Aug 11, 2020 Jkt 099200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H7671.IH H7671 pamtmann on DSKBC07HB2PROD with BILLS 11 •HR 7671 IH (C) a listing of all outstanding appeals of 1 compensation determinations; and 2 (D) an estimate of the total amount of re- 3 covery compensation payments made under this 4 Act that is current as of the date on which the 5 report is submitted. 6 (2) TIMING.—The reports required under this 7 subsection shall be submitted not later than 7 cal- 8 endar days after the date that recovery compensa- 9 tion is first paid under this Act, and every 7 cal- 10 endar days thereafter. 11 (g) SPECIAL ADMINISTRATOR.—The Special Admin- 12 istrator shall be subject to the prohibition on acts affecting 13 personal financial interest under section 208 of title 18, 14 United States Code, and shall be subject to limitations on 15 outside employment and outside income pursuant to title 16 V of the Ethics in Government Act of 1978 (5 U.S.C. 17 App.). 18 (h) AUTHORIZATION OF APPROPRIATIONS.—There 19 are authorized to be appropriated such sums as may be 20 necessary to pay the administrative and support costs for 21 the Special Administrator (including the contracts de- 22 scribed in subsection (b)) in carrying out this Act. 23 VerDate Sep 11 2014 20:57 Aug 11, 2020 Jkt 099200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H7671.IH H7671 pamtmann on DSKBC07HB2PROD with BILLS 12 •HR 7671 IH SEC. 5. DETERMINATION OF ELIGIBILITY FOR RECOVERY 1 COMPENSATION. 2 (a) FILING OF APPLICATION FOR RECOVERY COM- 3 PENSATION CLAIM.— 4 (1) IN GENERAL.—An applicant may file an ap- 5 plication for recovery compensation under this Act 6 with the Special Administrator. Except as provided 7 under paragraph (3), the application for recovery 8 compensation shall be on the form developed under 9 paragraph (2) and shall state the factual basis for 10 eligibility for recovery compensation and the amount 11 of recovery compensation sought. 12 (2) APP [Text truncated for display. Full text available on Congress.gov.]