Recharge and Empower Local Innovation and Entrepreneurs Fund for Main Street Act or the RELIEF for Main Street Act
This bill establishes for one year the Small Business Local Relief Program, which shall allocate resources to states, local governments, and Native American tribes for providing assistance to certain small businesses and nonprofits that have lost revenue due to COVID-19 (i.e., coronavirus disease 2019).
Specifically, the bill provides $50.5 billion for such assistance, of which (1) $35 billion shall be distributed based on the Community Development Block Grant formula (70% allocated to larger cities and counties and 30% to rural communities), (2) $15 billion shall be allocated to provide financing exclusively to businesses in rural areas, and (3) $500 million shall be for Native American Tribes.
These amounts shall be used to start or scale a local small business emergency fund or to support organizations that provide technical assistance to small businesses or nonprofits. Such local funds or organizations may then use the amounts to assist small businesses (including sole proprietorships, independent contractors, and self-employed individuals) and nonprofits that (1) employ no more than 20 full-time employees (50 if the recipient is located in a low-income community), (2) has experienced a loss of revenue because of COVID-19, and (3) satisfies any additional requirements imposed by the administrator of the fund.
A state, local government, or Native American tribe that receives funds under the bill must report specified demographic and disbursement information.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6907 Introduced in House (IH)]
<DOC>
116th CONGRESS
2d Session
H. R. 6907
To establish a program in the Department of the Treasury to allocate
funds to States, units of general local government, and Indian Tribes
to provide assistance to certain small businesses, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 15, 2020
Mr. Kildee (for himself, Mr. Fitzpatrick, Mr. Evans, and Mr. Upton)
introduced the following bill; which was referred to the Committee on
Small Business
_______________________________________________________________________
A BILL
To establish a program in the Department of the Treasury to allocate
funds to States, units of general local government, and Indian Tribes
to provide assistance to certain small businesses, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Recharge and Empower Local
Innovation and Entrepreneurs Fund for Main Street Act'' or the ``RELIEF
for Main Street Act''.
SEC. 2. SMALL BUSINESS LOCAL RELIEF PROGRAM.
(a) Definitions.--In this section:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Small Business Administration.
(2) Eligible entity.--The term ``eligible entity''--
(A) means a privately held business entity or
nonprofit organization that--
(i) employs--
(I) not more than 20 full-time
equivalent employees; or
(II) if the entity or organization
is located in a low-income community,
not more than 50 full-time equivalent
employees;
(ii) has experienced a loss of revenue as a
result of the COVID-19 pandemic, according to
criteria established by the Secretary; and
(iii) with respect to such an entity or
organization that receives assistance from a
small business emergency fund, satisfies
additional requirements, as determined by the
State, unit of general local government, Indian
Tribe, or other entity that has established the
small business emergency fund; and
(B) includes an individual who operates under a
sole proprietorship, an individual who operates as an
independent contractor, and an eligible self-employed
individual if such an individual has experienced a loss
of revenue as a result of the COVID-19 pandemic,
according to criteria established by the Secretary.
(3) Eligible self-employed individual.--The term ``eligible
self-employed individual'' has the meaning given the term in
section 7(a)(36)(A) of the Small Business Act (15 U.S.C.
636(a)(36)(A)).
(4) Entitlement community.--The term ``entitlement
community'' means a metropolitan city or urban county, as those
terms are defined in section 102 of the Housing and Community
Development Act of 1974 (42 U.S.C. 5302).
(5) Full-time equivalent employees.--
(A) In general.--The term ``full-time equivalent
employees'' means a number of employees equal to the
number determined by dividing--
(i) the total number of hours of service
for which wages were paid by the employer to
employees during the taxable year; by
(ii) 2,080.
(B) Rounding.--The number determined under
subparagraph (A) shall be rounded to the next lowest
whole number if not otherwise a whole number.
(C) Excess hours not counted.--If an employee works
in excess of 2,080 hours of service during any taxable
year, such excess shall not be taken into account under
subparagraph (A).
(D) Hours of service.--The Secretary, in
consultation with the Secretary of Labor, shall
prescribe such regulations, rules, and guidance as may
be necessary to determine the hours of service of an
employee, including rules for the application of this
paragraph to employees who are not compensated on an
hourly basis.
(6) Indian tribe.--The term ``Indian Tribe'' has the
meaning given the term ``Indian tribe'' in section 102 of the
Housing and Community Development Act of 1974 (42 U.S.C. 5302).
(7) Low-income community.--The term ``low-income
community'' has the meaning given the term in section 45D(e) of
the Internal Revenue Code of 1986.
(8) Minority.--The term ``minority'' has the meaning given
the term in section 1204(c)(3) of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1811
note).
(9) Minority-owned entity.--The term ``minority-owned
entity'' means an entity--
(A) more than 50 percent of the ownership or
control of which is held by not less than 1 minority;
and
(B) more than 50 percent of the net profit or loss
of which accrues to not less than 1 minority.
(10) Nonentitlement area; state; unit of general local
government.--
(A) In general.--Except as provided in subparagraph
(B), the terms ``nonentitlement area'', ``State'', and
``unit of general local government'' have the meanings
given those terms in section 102 of the Housing and
Community Development Act of 1974 (42 U.S.C. 5302).
(B) State.--For purposes of subparagraphs (A)(ii)
and (B)(ii) of subsection (c)(1), the term ``State''
means any State of the United States.
(11) Program.--The term ``Program'' means the Small
Business Local Relief Program established under this section.
(12) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury.
(13) Small business emergency fund.--The term ``small
business emergency fund'' means a fund or program--
(A) established by a State, a unit of general local
government, an Indian Tribe, or an entity designated by
a State, unit of general local government, or Indian
Tribe; and
(B) that provides or administers financing to
eligible entities in the form of grants, loans, or
other means in accordance with the needs of eligible
entities and the capacity of the fund or program.
(14) Women-owned entity.--The term ``women-owned entity''
means an entity--
(A) more than 50 percent of the ownership or
control of which is held by not less than 1 woman; and
(B) more than 50 percent of the net profit or loss
of which accrues to not less than 1 woman.
(b) Establishment.--There is established in the Department of the
Treasury the Small Business Local Relief Program, the purpose of which
is to allocate resources to States, units of general local government,
and Indian Tribes to provide assistance to eligible entities and
organizations that assist eligible entities.
(c) Funding.--
(1) Funding to states, localities, and indian tribes.--
(A) In general.--Of the amounts made available to
carry out the Program under subsection (h), the
Secretary shall allocate--
(i) $35,000,000,000 to States and units of
general local government in accordance with
subparagraph (B)(i);
(ii) $15,000,000,000 to States in
accordance with subparagraph (B)(ii); and
(iii) $500,000,000 to the Secretary of
Housing and Urban Development for allocations
to Indian Tribes in accordance with
subparagraph (B)(iii).
(B) Allocations.--
(i) Formula for states and units of general
local government.--Of the amount allocated
under subparagraph (A)(i)--
(I) 70 percent shall be allocated
to entitlement communities in
accordance with the formula under
section 106(b) of the Housing and
Community Development Act of 1974 (42
U.S.C. 5306(b)); and
(II) 30 percent shall be allocated
to States, for use in nonentitlement
areas, in accordance with the formula
under section 106(d)(1) of the Housing
and Community Development Act of 1974
(42 U.S.C. 5306(d)(1)).
(ii) Rural bonus formula for states.--The
Secretary shall allocate the amount allocated
under subparagraph (A)(ii) to States, for use
in nonentitlement areas, in accordance with the
formula under section 106(d)(1) of the Housing
and Community Development Act of 1974 (42
U.S.C. 5306(d)(1)).
(iii) Competitive awards to indian
tribes.--
(I) In general.--The Secretary of
Housing and Urban Development shall
allocate to Indian Tribes on a
competitive basis the amount allocated
under subparagraph (A)(iii).
(II) Requirements.--In making
allocations under subclause (I), the
Secretary of Housing and Urban
Development shall, to the greatest
extent practicable, ensure that each
Indian Tribe that satisfies
requirements established by the
Secretary of Housing and Urban
Development receives such an
allocation.
(C) State allocations for nonentitlement areas.--
(i) Equitable allocation.--To the greatest
extent practicable, a State shall allocate
amounts for nonentitlement areas under clauses
(i)(II) and (ii) of subparagraph (B) on an
equitable basis.
(ii) Distribution of amounts.--
(I) Discretion.--Not later than 14
days after the date on which a State
receives amounts for use in a
nonentitlement area under clause
(i)(II) or (ii) of subparagraph (B),
the State shall--
(aa) distribute the
amounts, or a portion thereof,
to a unit of general local
government located in the
nonentitlement area or an
entity designated thereby, that
has established or will
establish a small business
emergency fund, for use under
paragraph (2); or
(bb) elect to reserve the
amounts, or a portion thereof,
for use by the State under
paragraph (2) for the benefit
of eligible entities located in
the nonentitlement area.
(II) Sense of congress.--It is the
sense of Congress that, in distributing
amounts under subclause (I), in the
case of amounts allocated for a
nonentitlement area in which a unit of
general local government or an entity
designated thereby has established a
small business emergency fund, a State
should, as quickly as is practicable,
distribute amounts to that unit of
general local government or entity,
respectively, as described in item (aa)
of that subclause.
(iii) Treatment of states not acting as
pass-through agents under cdbg.--The Secretary
shall allocate amounts to a State under this
paragraph without regard to whether the State
has elected to distribute amounts allocated
under section 106(d)(1) of the Housing and
Community Development Act of 1974 (42 U.S.C.
5306(d)(1)).
(2) Use of funds.--
(A) In general.--A State, unit of general local
government, entity designated by a unit of general
local government, or Indian Tribe that receives an
allocation under paragraph (1), whether directly or
indirectly, may use that allocation--
(i) to provide funding to a small business
emergency fund established by that State (or
entity designated thereby), that unit of
general local government (or entity designated
thereby), that entity designated by a unit of
general local government, or that Indian Tribe
(or entity designated thereby), respectively;
(ii) to provide funding to support
organizations that provide technical assistance
to eligible entities; or
(iii) subject to subparagraph (B), to pay
for administrative costs incurred by that State
(or entity designated thereby), that unit of
general local government (or entity designated
thereby), that entity designated by a unit of
general local government, or that Indian Tribe
(or entity designated thereby), respectively,
in establishing and administering a small
business emergency fund.
(B) Limitation.--A State, unit of general local
government, entity designated by a unit of general
local government, or Indian Tribe may not use more than
3 percent of an allocation received under paragraph (1)
for a purpose described in subparagraph (A)(iii) of
this paragraph.
(C) Obligation deadlines.--
(i) States.--Of the amounts that a State
elects under paragraph (1)(C)(ii)(I)(bb) to
reserve for use by the State under this
paragraph--
(I) any amounts that the State
provides to a small business emergency
fund under subparagraph (A)(i) of this
paragraph shall be obligated by the
small business emergency fund for
expenditure not later than 74 days
after the date on which the State
received the amounts from the Secretary
under clause (i) or (ii) of paragraph
(1)(A); and
(II) any amounts that the State
chooses to provide to an organization
under subparagraph (A)(ii) of this
paragraph, or to use to pay for
administrative costs under subparagraph
(A)(iii) of this paragraph, shall be
obligated by the State for expenditure
not later than 74 days after the date
on which the State received the amounts
from the Secretary under clause (i) or
(ii) of paragraph (1)(A).
(ii) Entitlement communities.--Of the
amounts that an entitlement community receives
from the Secretary under paragraph
(1)(B)(i)(I)--
(I) any amounts that the
entitlement community provides to a
small business emergency fund under
subparagraph (A)(i) of this paragraph
shall be obligated by the small
business emergency fund for expenditure
not later than 74 days after the date
on which the entitlement community
received the amounts; and
(II) any amounts that the
entitlement community chooses to
provide to an organization under
subparagraph (A)(ii) of this paragraph,
or to use to pay for administrative
costs under subparagraph (A)(iii) of
this paragraph, shall be obligated by
the entitlement community for
expenditure not later than 74 days
after the date on which the entitlement
community received the amounts.
(iii) Nonentitlement communities.--Of the
amounts that a unit of general local
government, or an entity designated thereby,
located in a nonentitlement area receives from
a State under paragraph (1)(C)(ii)(I)(aa)--
(I) any amounts that the unit of
general local government or entity
provides to a small business emergency
fund under subparagraph (A)(i) of this
paragraph shall be obligated by the
small business emergency fund for
expenditure not later than 60 days
after the date on which the unit of
general local government or entity
received the amounts; and
(II) any amounts that the unit of
general local government or entity
chooses to provide to a support
organization under subparagraph (A)(ii)
of this paragraph or to use to pay for
administrative costs under subparagraph
(A)(iii) of this paragraph shall be
obligated by the unit of general local
government or entity for expenditure
not later than 60 days after the date
on which the unit of general local
government or entity received the
amounts.
(D) Recovery of unobligated funds.--If a State,
entitlement community, other unit of general local
government, entity designated by a unit of general
local government, or small business emergency fund
fails to obligate amounts by the applicable deadline
under subparagraph (C), the Secretary shall recover the
amount of those amounts that remain unobligated, as of
that deadline.
(E) Collaboration.--It is the sense of Congress
that--
(i) an entitlement community that receives
amounts allocated under paragraph (1)(B)(i)(I)
should collaborate with the applicable local
entity responsible for economic development and
small business development in establishing and
administering a small business emergency fund;
and
(ii) States, units of general local
government (including units of general local
government located inside and outside
nonentitlement areas), and Indian Tribes that
receive amounts under paragraph (1) and are
located in the same region should collaborate
in establishing and administering small
business emergency funds.
(d) Small Business Emergency Funds.--With respect to a small
business emergency fund that receives funds from an allocation made
under subsection (c)--
(1) if the small business emergency fund makes a loan to an
eligible entity with those funds, the small business emergency
fund may use amounts returned to the small business emergency
fund from the repayment of the loan to provide further
assistance to eligible entities without regard to the
termination date described in subsection (i); and
(2) the small business emergency fund shall conduct
outreach to eligible entities that are less likely to
participate in programs established under the CARES Act (Public
Law 116-136; 134 Stat. 281) and the amendments made by that
Act, including minority-owned entities, businesses in low-
income communities, businesses in rural and Tribal areas, and
other businesses that are underserved by the traditional
banking system.
(e) Information Gathering.--
(1) In general.--When providing assistance to an eligible
entity with funds received from an allocation made under
subsection (c), the entity providing assistance shall--
(A) inquire whether the eligible entity is--
(i) in the case of an eligible entity that
is a business entity or a nonprofit
organization, a women-owned entity or a
minority-owned entity; and
(ii) in the case of an eligible entity who
is an individual, a woman or a minority; and
(B) maintain a record of the responses to each
inquiry conducted under subparagraph (A), which the
entity shall promptly submit to the applicable State,
unit of general local government, or Indian Tribe.
(2) Right to refuse.--An eligible entity may refuse to
provide any information requested under paragraph (1)(A).
(f) Reporting.--
(1) In general.--Not later than 30 days after the date on
which a State, unit of general local government, or Indian
Tribe initially receives an allocation made under subsection
(c), and not later than 14 days after the date on which that
State, unit of local government, or Indian Tribe completes the
full expenditure of that allocation, that State, unit of
general local government, or Indian Tribe shall submit to the
Secretary a report that includes--
(A) the number of recipients of assistance made
available from the allocation;
(B) the total amount, and type, of assistance made
available from the allocation;
(C) to the extent applicable, with respect to each
recipient described in subparagraph (A), information
regarding the industry of the recipient, the amount of
assistance received by the recipient, the annual sales
of the recipient, and the number of employees of the
recipient;
(D) to the extent available from information
collected under subsection (e), information regarding
the number of recipients described in subparagraph (A)
that are minority-owned entities, minorities, women,
and women-owned entities;
(E) the zip code of each recipient described in
subparagraph (A); and
(F) any other information that the Secretary, in
the sole discretion of the Secretary, determines to be
necessary to carry out the Program.
(2) Public availability.--As soon as is practicable after
receiving each report submitted under paragraph (1), the
Secretary shall make the information contained in the report,
including all of the information described in subparagraphs (A)
through (F) of that paragraph, publicly available.
(g) Rules and Guidance.--The Secretary, in consultation with the
Administrator, shall issue any rules and guidance that are necessary to
carry out the Program, including by establishing appropriate compliance
and reporting requirements, in addition to the reporting requirements
under subsection (f).
(h) Appropriation.--There are appropriated to the Secretary for
fiscal year 2020, out of amounts in the Treasury not otherwise
appropriated, $50,500,000,000 to carry out the Program, which shall
remain available until the termination date described in subsection
(i).
(i) Termination.--The Program, and any rules and guidance issued
under subsection (g) with respect to the Program, shall terminate on
the date that is 1 year after the date of enactment of this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Small Business.
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