Heroes Small Business Lifeline Act

II 116TH CONGRESS 2D SESSION S. 4818 To provide assistance to small businesses affected by COVID–19, and for other purposes. IN THE SENATE OF THE UNITED STATES OCTOBER 20 (legislative day, OCTOBER 19), 2020 Mr. CARDIN (for himself, Mrs. SHAHEEN, Mr. SCHUMER, Ms. ROSEN, Ms. DUCKWORTH, Mr. COONS, Ms. HIRONO, Ms. CANTWELL, Mr. MARKEY, Mr. BOOKER, Ms. KLOBUCHAR, Mr. VAN HOLLEN, Mr. BLUMENTHAL, Mrs. GILLIBRAND, Mrs. MURRAY, Mr. KING, Mr. REED, Mr. MENENDEZ, Ms. CORTEZ MASTO, Ms. BALDWIN, Mr. KAINE, Mr. BROWN, Ms. WAR- REN, Mr. DURBIN, Mr. WYDEN, Mr. MERKLEY, Mr. HEINRICH, Mr. BENNET, Mr. WHITEHOUSE, Mr. UDALL, Mr. SCHATZ, Ms. STABENOW, Mrs. FEINSTEIN, and Mr. PETERS) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To provide assistance to small businesses affected by COVID–19, 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; TABLE OF CONTENTS; DEFINI- 3 TIONS. 4 (a) SHORT TITLE.—This Act may be cited as the 5 ‘‘Heroes Small Business Lifeline Act’’. 6 VerDate Sep 11 2014 21:04 Nov 07, 2020 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S4818.IS S4818 2 •S 4818 IS (b) TABLE OF CONTENTS.—The table of contents for 1 this Act is as follows: 2 Sec. 1. Short title; table of contents; definitions. TITLE I—FUNDING PROVISIONS Sec. 101. Amount authorized for commitments. Sec. 102. Funding for the Paycheck Protection Program. Sec. 103. Direct appropriations. Sec. 104. Emergency designation. TITLE II—MODIFICATIONS TO THE PAYCHECK PROTECTION PROGRAM Sec. 201. Periods for loan forgiveness and application submission. Sec. 202. Supplemental covered loans for certain business concerns. Sec. 203. Certifications and documentation for streamlined forgiveness of cov- ered loans. Sec. 204. Eligibility of certain organizations for loans under the Paycheck Pro- tection Program. Sec. 205. Limit on aggregate loan amount for eligible recipients with more than 1 physical location. Sec. 206. Allowable uses of covered loans; forgiveness. Sec. 207. Documentation required for certain eligible recipients. Sec. 208. Exclusion of certain publicly traded and foreign entities. Sec. 209. Election of 12-week period by seasonal employers. Sec. 210. Inclusion of certain refinancing in nonrecourse requirements. Sec. 211. Credit elsewhere requirements. Sec. 212. Prohibition on receiving duplicative amounts for payroll costs. Sec. 213. Application of certain terms through life of covered loan. Sec. 214. Interest calculation on covered loans. Sec. 215. Reimbursement for processing. Sec. 216. Duplication requirements for economic injury disaster loan recipients. Sec. 217. Reapplication for and modification to Paycheck Protection Program. Sec. 218. Treatment of certain criminal violations. Sec. 219. Eligibility and treatment of Farm Credit System institutions. TITLE III—TAX PROVISIONS Sec. 301. Improved coordination between Paycheck Protection Program and employee retention tax credit. TITLE IV—COVID–19 ECONOMIC INJURY DISASTER LOAN PROGRAM REFORM Sec. 401. Sense of Congress. Sec. 402. Notices to applicants for economic injury disaster loans or advances. Sec. 403. Modifications to emergency EIDL advances. Sec. 404. Data transparency, verification, and notices for economic injury dis- aster loans. Sec. 405. Lifeline funding for small business continuity, adaptation, and resil- iency. Sec. 406. Modifications to economic injury disaster loans. Sec. 407. Principal and interest payments for certain disaster loans. Sec. 408. Training. VerDate Sep 11 2014 20:21 Oct 31, 2020 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6211 E:\BILLS\S4818.IS S4818 3 •S 4818 IS Sec. 409. Outreach plan. Sec. 410. Report on best practices. Sec. 411. Extension of period of availability for administrative funds. TITLE V—MICRO-SBIC AND EQUITY INVESTMENT ENHANCEMENT Sec. 501. Micro-SBIC Program. TITLE VI—MISCELLANEOUS Sec. 601. Repeal of EIDL advance deduction. Sec. 602. Extension of the debt relief program. Sec. 603. Modifications to 7(a) loan programs. Sec. 604. Flexibility in deferral of payments of 7(a) loans. Sec. 605. Recovery assistance under the microloan program. Sec. 606. Maximum loan amount for 504 loans. Sec. 607. Temporary fee reductions. Sec. 608. Extension of participation in 8(a) program. Sec. 609. Report on minority, women, and rural lending. Sec. 610. Comprehensive program guidance. Sec. 611. Reports on Paycheck Protection Program. Sec. 612. Prohibiting conflicts of interest for small business programs under the CARES Act. Sec. 613. Inclusion of SCORE and Veteran Business Outreach Centers in en- trepreneurial development programs. Sec. 614. Clarification of use of CARES Act funds for small business develop- ment centers. Sec. 615. Funding for the Office of Inspector General of the Small Business Administration. Sec. 616. Extension of waiver of matching funds requirement under the Wom- en’s Business Center program. Sec. 617. Access to Small Business Administration information and databases. Sec. 618. Small business local relief program. Sec. 619. Grants for shuttered venue operators. Sec. 620. Support for restaurants. TITLE VII—MINORITY BUSINESS DEVELOPMENT AGENCY AND COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS FUND Sec. 701. Definitions. Subtitle A—Codification of the Minority Business Development Agency Sec. 711. Short title. Sec. 712. Findings and purposes. Sec. 713. Minority Business Development Agency. PART I—EXISTING INITIATIVES SUBPART A—MARKET DEVELOPMENT, RESEARCH, AND INFORMATION Sec. 721. Private sector development. Sec. 722. Public sector development. Sec. 723. Research and information. SUBPART B—MINORITY BUSINESS DEVELOPMENT CENTER PROGRAM Sec. 731. Purpose. VerDate Sep 11 2014 20:21 Oct 31, 2020 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6211 E:\BILLS\S4818.IS S4818 4 •S 4818 IS Sec. 732. Definitions. Sec. 733. Establishment. Sec. 734. Cooperative agreements. Sec. 735. Minimizing disruptions to existing business centers program. Sec. 736. Publicity. Sec. 737. Emergency appropriations. PART II—NEW INITIATIVES TO PROMOTE ECONOMIC RESILIENCY FOR MINORITY BUSINESSES Sec. 741. Annual diverse business forum on capital formation. Sec. 742. Agency study on alternative financing solutions. Sec. 743. Educational development relating to management and entrepreneur- ship. PART III—ADMINISTRATIVE AND OTHER POWERS OF THE AGENCY; MISCELLANEOUS PROVISIONS Sec. 751. Administrative powers. Sec. 752. Financial assistance. Sec. 753. Audits. Sec. 754. Review and report by comptroller general. Sec. 755. Annual reports; recommendations. Sec. 756. Separability. Sec. 757. Executive Order 11625. Sec. 758. Amendment to the Federal Acquisition Streamlining Act of 1994. Subtitle B—Other Provisions Sec. 761. Emergency grants to minority business enterprises. TITLE VIII—PROMOTING AND ADVANCING COMMUNITIES OF COLOR THROUGH INCLUSIVE LENDING Sec. 801. Short title. Sec. 802. Findings; sense of Congress. Sec. 803. Purposes. Sec. 804. Considerations; requirements for creditors. Sec. 805. Neighborhood Capital Investment Program. Sec. 806. Emergency support for CDFIs and communities. Sec. 807. Ensuring diversity in community banking. Sec. 808. Establishment of Financial Agent Partnership Program. Sec. 809. Strengthening minority lending institutions. Sec. 810. CDFI Bond Guarantee Reform. Sec. 811. Reports. Sec. 812. Inspector General oversight. Sec. 813. Study and report with respect to impact of programs on low- and moderate-income and minority communities. Sec. 814. Community development financial institutions fund. (c) DEFINITIONS.—In this Act: 1 (1) ADMINISTRATION.—The term ‘‘Administra- 2 tion’’ means the Small Business Administration. 3 VerDate Sep 11 2014 21:04 Nov 07, 2020 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S4818.IS S4818 5 •S 4818 IS (2) ADMINISTRATOR.—The term ‘‘Adminis- 1 trator’’ means the Administrator of the Small Busi- 2 ness Administration. 3 (d) EFFECTIVE DATE; APPLICABILITY.—Except as 4 otherwise provided in this Act, this Act and the amend- 5 ments made by this Act shall take effect on the date of 6 the enactment of this Act and shall apply to loans made, 7 or other assistance provided, on or after the date of enact- 8 ment of this Act. 9 TITLE I—FUNDING PROVISIONS 10 SEC. 101. AMOUNT AUTHORIZED FOR COMMITMENTS. 11 Section 1102(b) of the CARES Act (Public Law 116– 12 136) is amended to read as follows: 13 ‘‘(b) COMMITMENTS FOR PPP AND OTHER 7(a) 14 LOANS.— 15 ‘‘(1) PPP LOANS.—During the period begin- 16 ning on the date of enactment of the Heroes Small 17 Business Lifeline Act and ending on March 31, 18 2021, subject to the availability of appropriations, 19 the Administrator may make commitments under 20 paragraph (36) of section 7(a) of the Small Business 21 Act (15 U.S.C. 636(a)) in such amounts as the Ad- 22 ministrator determines necessary, but not less than 23 $779,640,000,000. 24 VerDate Sep 11 2014 20:21 Oct 31, 2020 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S4818.IS S4818 6 •S 4818 IS ‘‘(2) OTHER 7(a) LOANS.—For fiscal year 1 2021, commitments for general business loans au- 2 thorized under paragraphs (1) through (35) of sec- 3 tion 7(a) of the Small Business Act (15 U.S.C. 4 636(a)) shall not exceed $75,000,000,000 for a com- 5 bination of amortizing term loans and the aggre- 6 gated maximum line of credit provided by revolving 7 loans.’’. 8 SEC. 102. FUNDING FOR THE PAYCHECK PROTECTION PRO- 9 GRAM. 10 (a) DIRECT APPROPRIATIONS.—There is appro- 11 priated, out of amounts in the Treasury not otherwise ap- 12 propriated, to remain available until September 30, 2021, 13 such sums as may be necessary under the heading ‘‘Small 14 Business Administration—Business Loans Program Ac- 15 count, CARES Act’’ for the cost of guaranteed loans as 16 authorized under section 7(a)(36) of the Small Business 17 Act (15 U.S.C. 636(a)(36)). 18 (b) REMAINING UNOBLIGATED BALANCES.—Subject 19 to subsection (d), the unobligated balances for the cost 20 of guaranteed loans as authorized under section 7(a)(36) 21 of the Small Business Act (15 U.S.C. 636(a)(36)) in the 22 appropriations account under the heading ‘‘Small Busi- 23 ness Administration—Business Loans Program Account, 24 CARES Act’’ as of the day before the date of enactment 25 VerDate Sep 11 2014 20:21 Oct 31, 2020 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S4818.IS S4818 7 •S 4818 IS of this Act shall remain available until September 30, 1 2021, for the cost of guaranteed loans as authorized under 2 section 7(a)(36) of the Small Business Act (15 U.S.C. 3 636(a)(36)). 4 (c) SET ASIDE FOR CERTAIN ENTITIES.—Section 5 7(a)(36)(S) of the Small Business Act (15 U.S.C. 6 636(a)(36)(S)) is amended to read as follows: 7 ‘‘(S) SET ASIDE FOR CERTAIN ENTITIES.— 8 Of the amounts available on or after the date 9 of enactment of the Heroes Small Business 10 Lifeline Act (including amounts that were made 11 available before such date of enactment) to 12 guarantee covered loans under this paragraph, 13 the Administrator shall provide— 14 ‘‘(i) a set aside of not less than 10 15 percent of such amounts for covered loans 16 under subparagraph (B)(i) that are— 17 ‘‘(I) made to eligible recipients 18 with 10 or fewer employees, including 19 individuals who operate under a sole 20 proprietorship or as an independent 21 contractor and eligible self-employed 22 individuals; or 23 ‘‘(II) of not more than $250,000 24 and made to an eligible recipient that 25 VerDate Sep 11 2014 20:21 Oct 31, 2020 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S4818.IS S4818 8 •S 4818 IS is located in neighborhood that is a 1 low-income neighborhood or moderate- 2 income neighborhood, for purposes of 3 the Community Reinvestment Act of 4 1977 (12 U.S.C. 2901 et seq.); 5 ‘‘(ii) a set aside of not more than 30 6 percent of such amounts for covered loans 7 under subparagraph (B)(i) that are made 8 to covered nonprofit organizations, covered 9 organizations, organizations described in 10 subparagraph (D)(viii), or housing co- 11 operatives; and 12 ‘‘(iii) a set aside of not more than 50 13 percent of such amounts for supplemental 14 covered loans that are made under sub- 15 paragraph (B)(ii), of which not less than 16 10 percent shall be for such supplemental 17 covered loans that are made to eligible re- 18 cipients with 10 or fewer employees, in- 19 cluding individuals who operate under a 20 sole proprietorship or as an independent 21 contractor and eligible self-employed indi- 22 viduals.’’. 23 (d) SET ASIDE FOR COMMUNITY FINANCIAL INSTI- 24 TUTIONS.—Of the amounts available on or after the date 25 VerDate Sep 11 2014 20:21 Oct 31, 2020 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S4818.IS S4818 9 •S 4818 IS of enactment of this Act (including amounts that were 1 made available before such date of enactment) in the ap- 2 propriations account under the heading ‘‘Small Business 3 Administration—Business Loans Program Account, 4 CARES Act’’, the lesser of 25 percent of such amounts 5 or $15,000,000,000 shall be set aside for the cost to guar- 6 antee loans made under section 7(a)(36) of the Small 7 Business Act (15 U.S.C. 636(a)(36)) by community finan- 8 cial institutions (as such term is defined in subparagraph 9 (A)(xi) of such section). 10 (e) AMOUNTS RETURNED.—Section 7(a)(36) of the 11 Small Business Act (15 U.S.C. 636(a)(36)), as amended 12 by subsection (c), is amended by adding at the end the 13 following: 14 ‘‘(T) AMOUNTS RETURNED.—Any amounts 15 returned to the Secretary of the Treasury due 16 to the cancellation of a covered loan shall be 17 solely used for the cost to guarantee covered 18 loans made to eligible recipients with 10 or 19 fewer employees or covered loans of less than or 20 equal to $250,000 made to an eligible recipient 21 that is located in a low- or moderate-income 22 neighborhoods (as that term is used in the 23 Community Reinvestment Act of 1977 (12 24 U.S.C. 2901 et seq.)).’’. 25 VerDate Sep 11 2014 20:21 Oct 31, 2020 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S4818.IS S4818 10 •S 4818 IS SEC. 103. DIRECT APPROPRIATIONS. 1 (a) IN GENERAL.—There is appropriated, out of 2 amounts in the Treasury not otherwise appropriated, for 3 additional amounts— 4 (1) for the cost of carrying out section 407 of 5 this Act, $8,000,000,000; 6 (2) for the cost of carrying out title V of this 7 Act, $1,000,000,000; 8 (3) for the cost of carrying out section 603 and 9 607 of this Act and the cost of guaranteed loans as 10 authorized by paragraphs (1) through (35) of sec- 11 tion 7(a) of the Small Business Act (15 U.S.C. 12 636( [Text truncated for display. Full text available on Congress.gov.]