Heroes Small Business Lifeline Act
This bill provides economic support to small business affected by COVID-19 (i.e., coronavirus disease 2019) by extending and expanding existing initiatives such as the Paycheck Protection Program, establishing a new lifeline grant program, and providing dedicated assistance for industries such as restaurants and live entertainment.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 4818 Introduced in Senate (IS)]
<DOC>
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. Warren, 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 Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS; DEFINITIONS.
(a) Short Title.--This Act may be cited as the ``Heroes Small
Business Lifeline Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
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 covered loans.
Sec. 204. Eligibility of certain organizations for loans under the
Paycheck Protection 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 disaster loans.
Sec. 405. Lifeline funding for small business continuity, adaptation,
and resiliency.
Sec. 406. Modifications to economic injury disaster loans.
Sec. 407. Principal and interest payments for certain disaster loans.
Sec. 408. Training.
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
entrepreneurial development programs.
Sec. 614. Clarification of use of CARES Act funds for small business
development 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
Women'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.
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
entrepreneurship.
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) Administration.--The term ``Administration'' means the
Small Business Administration.
(2) Administrator.--The term ``Administrator'' means the
Administrator of the Small Business Administration.
(d) Effective Date; Applicability.--Except as otherwise provided in
this Act, this Act and the amendments made by this Act shall take
effect on the date of the enactment of this Act and shall apply to
loans made, or other assistance provided, on or after the date of
enactment of this Act.
TITLE I--FUNDING PROVISIONS
SEC. 101. AMOUNT AUTHORIZED FOR COMMITMENTS.
Section 1102(b) of the CARES Act (Public Law 116-136) is amended to
read as follows:
``(b) Commitments for PPP and Other 7(a) Loans.--
``(1) PPP loans.--During the period beginning on the date
of enactment of the Heroes Small Business Lifeline Act and
ending on March 31, 2021, subject to the availability of
appropriations, the Administrator may make commitments under
paragraph (36) of section 7(a) of the Small Business Act (15
U.S.C. 636(a)) in such amounts as the Administrator determines
necessary, but not less than $779,640,000,000.
``(2) Other 7(a) loans.--For fiscal year 2021, commitments
for general business loans authorized under paragraphs (1)
through (35) of section 7(a) of the Small Business Act (15
U.S.C. 636(a)) shall not exceed $75,000,000,000 for a
combination of amortizing term loans and the aggregated maximum
line of credit provided by revolving loans.''.
SEC. 102. FUNDING FOR THE PAYCHECK PROTECTION PROGRAM.
(a) Direct Appropriations.--There is appropriated, out of amounts
in the Treasury not otherwise appropriated, to remain available until
September 30, 2021, such sums as may be necessary under the heading
``Small Business Administration--Business Loans Program Account, CARES
Act'' for the cost of guaranteed loans as authorized under section
7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36)).
(b) Remaining Unobligated Balances.--Subject to subsection (d), the
unobligated balances for the cost of guaranteed loans as authorized
under section 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36))
in the appropriations account under the heading ``Small Business
Administration--Business Loans Program Account, CARES Act'' as of the
day before the date of enactment of this Act shall remain available
until September 30, 2021, for the cost of guaranteed loans as
authorized under section 7(a)(36) of the Small Business Act (15 U.S.C.
636(a)(36)).
(c) Set Aside for Certain Entities.--Section 7(a)(36)(S) of the
Small Business Act (15 U.S.C. 636(a)(36)(S)) is amended to read as
follows:
``(S) Set aside for certain entities.--Of the
amounts available on or after the date of enactment of
the Heroes Small Business Lifeline Act (including
amounts that were made available before such date of
enactment) to guarantee covered loans under this
paragraph, the Administrator shall provide--
``(i) a set aside of not less than 10
percent of such amounts for covered loans under
subparagraph (B)(i) that are--
``(I) made to eligible recipients
with 10 or fewer employees, including
individuals who operate under a sole
proprietorship or as an independent
contractor and eligible self-employed
individuals; or
``(II) of not more than $250,000
and made to an eligible recipient that
is located in neighborhood that is a
low-income neighborhood or moderate-
income neighborhood, for purposes of
the Community Reinvestment Act of 1977
(12 U.S.C. 2901 et seq.);
``(ii) a set aside of not more than 30
percent of such amounts for covered loans under
subparagraph (B)(i) that are made to covered
nonprofit organizations, covered organizations,
organizations described in subparagraph
(D)(viii), or housing cooperatives; and
``(iii) a set aside of not more than 50
percent of such amounts for supplemental
covered loans that are made under subparagraph
(B)(ii), of which not less than 10 percent
shall be for such supplemental covered loans
that are made to eligible recipients with 10 or
fewer employees, including individuals who
operate under a sole proprietorship or as an
independent contractor and eligible self-
employed individuals.''.
(d) Set Aside for Community Financial Institutions.--Of the amounts
available on or after the date of enactment of this Act (including
amounts that were made available before such date of enactment) in the
appropriations account under the heading ``Small Business
Administration--Business Loans Program Account, CARES Act'', the lesser
of 25 percent of such amounts or $15,000,000,000 shall be set aside for
the cost to guarantee loans made under section 7(a)(36) of the Small
Business Act (15 U.S.C. 636(a)(36)) by community financial institutions
(as such term is defined in subparagraph (A)(xi) of such section).
(e) Amounts Returned.--Section 7(a)(36) of the Small Business Act
(15 U.S.C. 636(a)(36)), as amended by subsection (c), is amended by
adding at the end the following:
``(T) Amounts returned.--Any amounts returned to
the Secretary of the Treasury due to the cancellation
of a covered loan shall be solely used for the cost to
guarantee covered loans made to eligible recipients
with 10 or fewer employees or covered loans of less
than or equal to $250,000 made to an eligible recipient
that is located in a low- or moderate-income
neighborhoods (as that term is used in the Community
Reinvestment Act of 1977 (12 U.S.C. 2901 et seq.)).''.
SEC. 103. DIRECT APPROPRIATIONS.
(a) In General.--There is appropriated, out of amounts in the
Treasury not otherwise appropriated, for additional amounts--
(1) for the cost of carrying out section 407 of this Act,
$8,000,000,000;
(2) for the cost of carrying out title V of this Act,
$1,000,000,000;
(3) for the cost of carrying out section 603 and 607 of
this Act and the cost of guaranteed loans as authorized by
paragraphs (1) through (35) of section 7(a) of the Small
Business Act (15 U.S.C. 636(a)), $1,000,000,000;
(4) for the cost of carrying out section 605 of this Act,
$57,000,000;
(5) for the cost of carrying out section 618 of this Act,
$15,000,000,000;
(6) for the cost of carrying out section 619 of this Act,
$15,000,000,000; and
(7) for the cost of carrying out subtitle A of title VII of
this Act, $25,000,000.
(b) Emergency EIDL Grants.--
(1) In general.--There is appropriated, out of amounts in
the Treasury not otherwise appropriated, for additional amounts
under the heading ``Small Business Administration--Emergency
EIDL Grants'' for the cost of emergency economic injury
disaster loan grants authorized under section 1110 of the CARES
Act (15 U.S.C. 9009), $50,000,000,000, to remain available
until expended.
(2) Set aside.--Of amounts appropriated under paragraph
(1), $40,000,000,000 shall be for carrying out subsection (i)
of section 1110 of the CARES Act (15 U.S.C. 9009), as added by
section 405 of this Act, of which $20,000,000,000 shall be for
providing funding to covered entities described in paragraph
(8) of such subsection (i).
SEC. 104. EMERGENCY DESIGNATION.
(a) In General.--The amounts provided under this title are
designated as an emergency requirement pursuant to section 4(g) of the
Statutory Pay-As-You-Go Act of 2010 (2 U.S.C. 933(g)).
(b) Designation in Senate.--In the Senate, this title is designated
as an emergency requirement pursuant to section 4112(a) of H. Con. Res.
71 (115th Congress), the concurrent resolution on the budget for fiscal
year 2018.
TITLE II--MODIFICATIONS TO THE PAYCHECK PROTECTION PROGRAM
SEC. 201. PERIODS FOR LOAN FORGIVENESS AND APPLICATION SUBMISSION.
(a) Period for Costs That Are Eligible for Forgiveness and
Application Submission.--Section 1106 of the CARES Act (15 U.S.C. 9005)
is amended--
(1) in subsection (a), by striking paragraph (3) and
inserting the following:
``(3) the term `covered period' means the period beginning
on the date of the origination of a covered loan and ending on
a date selected by the eligible recipient of the covered loan
that--
``(A) is not earlier than the date that is 8 weeks
after such date of origination; and
``(B) is not later than the date that is 24 weeks
after such date of origination;'';
(2) in subsection (d), by striking ``December 31, 2020''
each place it appears and inserting ``September 30, 2021''; and
(3) by striking subsection (l) and inserting the following:
``(l) Application Deadline.--An eligible recipient may apply for
forgiveness under this section with respect to a covered loan any time
after the covered period applicable to the covered loan ends if--
``(1) proceeds from the covered loan have been spent; and
``(2) the eligible recipient is in compliance with
subsections (e) and (f).''.
(b) Applicability of Amendments.--The amendments made by subsection
(a) shall be effective as if included in the CARES Act (Public Law 116-
136) and shall apply to any loan made pursuant to section 7(a)(36) of
the Small Business Act (15 U.S.C. 636(a)(36)) or section 1109 of the
CARES Act (15 U.S.C. 9008).
SEC. 202. SUPPLEMENTAL COVERED LOANS FOR CERTAIN BUSINESS CONCERNS.
Section 7(a)(36)(B) of the Small Business Act (15 U.S.C.
636(a)(36)(B)) is amended--
(1) by striking ``Except'' and inserting the following:
``(i) In general.--Except''; and
(2) by adding at the end the following:
``(ii) Supplemental covered loans.--
``(I) Definitions.--In this
clause--
``(aa) the terms
`exchange', `issuer', and
`security' have the meanings
given those terms in section
3(a) of the Securities Exchange
Act of 1934 (15 U.S.C. 78c(a));
``(bb) the term `gross
receipts' means gross receipts
within the meaning of section
448(c) of the Internal Revenue
Code of 1986;
``(cc) the term `national
securities exchange' means an
exchange registered as a
national securities exchange
under section 6 of the
Securities Exchange Act of 1934
(15 U.S.C. 78f);
``(dd) the term `publicly
traded entity' means an issuer,
the securities of which are
listed on a national securities
exchange;
``(ee) the term
`significant loss in revenue'
means that, due to the impact
of COVID-19--
``(AA) the gross
receipts of the
eligible recipient
during the first,
second, or third
calendar quarter of
2020 are less than 75
percent of the gross
receipts of the
eligible recipient
during the same
calendar quarter in
2019;
``(BB) if the
eligible recipient was
not in business on
April 1, 2019, the
gross receipts of the
eligible recipient
during any 2-month
period during the first
3 calendar quarters of
2020 are less than 75
percent of the amount
of the gross receipts
of the eligible
recipient during any
prior 2-month period
during the first 3
calendar quarters of
2020; or
``(CC) if the
eligible recipient is
seasonal employer, as
determined by the
Administrator, the
gross receipts of the
eligible recipient
during any 2-month
period during the first
3 calendar quarters of
2020 are less than 75
percent of the amount
of the gross receipts
of the eligible
recipient during the
same 2-month period in
2019; and
``(ff) the term `smaller
concern' means an eligible
recipient that--
``(AA) has not more
than 200 employees;
``(BB) operates
under a sole
proprietorship or as an
independent contractor;
or
``(CC) is an
eligible self-employed
individual.
``(II) Authority.--Except as
otherwise provided in this clause, for
an eligible recipient that has received
a covered loan under clause (i), the
Administrator may guarantee a single
supplemental covered loan to the
eligible recipient under the same
terms, conditions, and processes as a
covered loan made under clause (i).
``(III) Choice of lender.--An
eligible recipient may apply for a
supplemental covered loan under this
clause with the lender that made the
covered loan under clause (i) to the
eligible recipient or another lender.
``(IV) Eligibility.--
``(aa) In general.--A
supplemental covered loan under
this clause--
``(AA) may only be
made to an eligible
recipient that is a
smaller concern that
has had a significant
loss in revenue and has
used, or is expending
funds at a rate that
the eligible recipient
will use on or before
the expected date of
the disbursement of the
supplemental covered
loan under this clause,
the full amount of the
covered loan received
under clause (i); and
``(BB) may not be
made to a publicly
traded or foreign owned
entity as described in
clause (x) of
subparagraph (D).
``(bb) Business concerns
with more than 1 physical
location.--
``(AA) In
general.--For purposes
of a supplemental
covered loan under this
clause, subparagraph
(D)(iii)(I) shall be
applied by substituting
`not more than 200
employees per physical
location' for `not more
than 500 employees per
physical location'.
``(BB) Limit for
multiple locations.--
For an eligible
recipient with more
than 1 physical
location, the total
amount of all
supplemental covered
loans made under this
clause to the eligible
recipient shall not be
more than $2,000,000.
``(V) Maximum amount.--The maximum
amount of a supplemental covered loan
under this clause is the lesser of--
``(aa) the product obtained
by multiplying--
``(AA) the average
total monthly payments
for payroll costs by
the eligible recipient
used to determine the
maximum amount of the
covered loan under
clause (i) made to the
eligible recipient
under this paragraph;
by
``(BB) 2.5; or
``(bb) $2,000,000.
``(VI) Exception from certain
certification requirements.--An
eligible recipient applying for a
supplemental covered loan under this
clause shall not be required to make
the certification described in clause
(iii) or (iv) of subparagraph (G).
``(VII) Reimbursement for
processing supplemental ppp.--For a
supplemental covered loan under this
clause of not more than $50,000, the
reimbursement under subparagraph
(P)(i)(I) by the Administrator shall
not be less than $2,500.''.
SEC. 203. CERTIFICATIONS AND DOCUMENTATION FOR STREAMLINED FORGIVENESS
OF COVERED LOANS.
Section 1106 of the CARES Act (15 U.S.C. 9005) is amended--
(1) in subsection (e), in the matter preceding paragraph
(1), by striking ``An eligible recipient'' and all that follows
through ``an application,'' and inserting ``Subject to
subsection (f), an eligible recipient applying for loan
forgiveness under this section shall provide proof of the use
of covered loan proceeds,'';
(2) by amending subsection (f) to read as follows:
``(f) Documentation Requirements.--To receive loan forgiveness
under this section, an eligible recipient shall comply with the
following requirements:
``(1) With respect to a covered loan in an amount that is
not more than $50,000, the eligible recipient--
``(A) shall certify to the Administrator that the
eligible recipient has used proceeds from the covered
loan in compliance with the requirements of section
7(a)(36) of the Small Business Act (15 U.S.C.
636(a)(36)), including a description of the amount of
proceeds used for payroll costs and the number of
employees the eligible recipient was able to retain
because of the covered loan;
``(B) is not required to submit any documentation
or application to receive forgiveness under this
section;
``(C) shall certify to the Administrator that the
eligible recipient can make the documentation described
under subsection (e) available, upon request, for a
period of time determined by the Administrator, which
period shall be not less than 3 years; and
``(D) may submit to the Administrator demographic
information of the owner of the eligible recipient,
including the sex, race, ethnicity, and veteran status
of the owner, through a process established by the
Administrator.
``(2) With respect to a covered loan in an amount that is
more than $50,000 but not more than $150,000, the eligible
recipient--
``(A) shall submit to the lender that is servicing
the covered loan the certification described in
paragraph (1)(A) and a simplified one-page application
form that does not require the submission of any
documentation described in subsection (e);
``(B) shall make the certification described in
paragraph (1)(C); and
``(C) may submit to the Administrator demographic
information of the owner of the eligible recipient,
including the sex, race, ethnicity, and veteran status
of the owner, as established by the Administrator on
the application form described in subparagraph (A).
``(3) With respect to a covered loan in an amount that is
more than $150,000, the eligible recipient--
``(A) shall submit to the lender that is servicing
the covered loan the documentation described in
subsection (e); and
``(B) may submit to the Administrator demographic
information of the owner of the eligible recipient,
including the sex, race, ethnicity, and veteran status
of the owner, through a process established by the
Administrator.''; and
(3) by amending subsection (g) to read as follows:
``(g) Lender Submission.--Not later than 60 days after the date on
which a lender receives an application for loan forgiveness under this
section from an eligible recipient, the lender shall only be required
to review the application to ensure completion, including that required
attestations have been made, before submitting the application to the
Administrator.''.
SEC. 204. ELIGIBILITY OF CERTAIN ORGANIZATIONS FOR LOANS UNDER THE
PAYCHECK PROTECTION PROGRAM.
Section 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36))--
(1) in subparagraph (A)--
(A) in clause (vii), by inserting ``covered''
before ``nonprofit'';
(B) in clause (viii)(II)--
(i) in item (dd), by striking ``or'' at the
end;
(ii) in item (ee), by adding ``or'' at the
end; and
(iii) by adding at the end the following:
``(ff) any compensation of
an employee who is a registered
lobbyist under the Lobbying
Disclosure Act of 1995 (2
U.S.C. 1601 et seq.);'';
(C) by amending clause (ix) to read as follows:
``(ix) the term `covered organization'
means--
``(I) an organization described in
section 501(c) of the Internal Revenue
Code of 1986 and exempt from tax under
section 501(a) of such Code that is not
a covered nonprofit organization;
``(II) an entity created by a State
or local government that derives the
majority of its operating budget from
the production of live events; or
``(III) a destination marketing
organization;'';
(D) in clause (xi)(IV), by striking ``and'' at the
end;
(E) in clause (xii), by striking the period at the
end and inserting a semicolon; and
(F) by adding at the end the following:
``(xiii) the term `housing cooperative'
means a cooperative housing corporation (as
defined in section 216(b) of the Internal
Revenue Code of 1986); and
``(xiv) the term `destination marketing
organization' means a nonprofit entity that is
an organization described in section 501(c)(6)
of the Internal Revenue Code of 1986 and exempt
from tax under section 501(a) of such Code, a
State, or a political subdivision of a State
(including any instrumentality of such
entities) engaged in marketing and promoting
communities and facilities to businesses and
leisure travelers through a range of
activities, including--
``(I) assisting with the location
of meeting and convention sites;
``(II) providing travel information
on area attractions, lodging
accommodations, and restaurants;
``(III) providing maps; and
``(IV) organizing group tours of
local historical, recreational, and
cultural attractions.''; and
(2) in subparagraph (D)--
(A) in clause (i)--
(i) by inserting ``covered'' before
``nonprofit organization'' each place it
appears; and
(ii) by striking ``veterans organization''
each place it appears and inserting ``housing
cooperative, covered organization'';
(B) in clause (iii)--
(i) by amending the clause heading to read
as follows: ``Requirements for restaurants and
certain news organizations'';
(ii) by striking ``During the covered
period, any business concern that employs'' and
inserting the following: ``Any business concern
or other organization--
``(I) that, during the covered
period, employs'';
(iii) in subclause (I), as so designated,
by striking the period at the end and inserting
a semicolon; and
(iv) by adding at the end the following:
``(II) that--
``(aa) was not eligible to
receive a covered loan the day
before the date of enactment of
this subclause, is assigned a
North American Industry
Classification System code
beginning with 511110, 515112,
or 515120, and an individual
physical location of the
business concern at the time of
disbursal does not exceed the
size standard established by
the Administrator for the
applicable code shall,
notwithstanding clause (x), be
eligible to receive a covered
loan for expenses associated
with an individual physical
location of that business
concern to support the
continued provision of local
news, information, content, or
emergency information, and, at
the time of disbursal, the
individual physical location;
or
``(bb) was not eligible to
receive a covered loan the day
before the date of enactment of
this subclause, has a trade or
business that falls under a
North American Industry
Classification System code
beginning with 5151 as a public
broadcast entity (as defined in
section 397(11) of the
Communications Act of 1934 (47
U.S.C. 397(11))), and is a
covered nonprofit organization
or another organization
otherwise subject to section
511(a)(2) of the Internal
Revenue Code of 1986, shall be
eligible to receive a covered
loan for expenses to support
the continued provision of
local news, information,
content, or emergency
information by such entity; or
``(III) that was not eligible to
receive a covered loan the day before
the date of enactment of this
subclause, is assigned a North American
Industry Classification System code of
519130, is identified as a Internet-
only news publisher or Internet-only
periodical publisher, and is engaged in
the collection and distribution of
local or regional and national news and
information shall be eligible to
receive a covered loan for expenses to
support the continued provision of
news, information, content, or
emergency information.'';
(C) in clause (iv)--
(i) in subclause (II), by striking ``and''
at the end;
(ii) in subclause (III), by striking the
period at the end and inserting ``; and''; and
(iii) by adding at the end the following:
``(IV) an individual physical
location of a business concern
described in clause (iii)(II), if such
concern does not pay, distribute, or
otherwise provide any portion of the
covered loan to any other entity other
than the individual physical location
that is the intended recipient of the
covered loan.'';
(D) in clause (v), by striking ``nonprofit
organization, veterans organization,'' and inserting
``covered organization, covered nonprofit organization,
housing cooperative,'';
(E) in clause (vi), by striking ``nonprofit
organization and a veterans organization'' and
inserting ``covered organization, a covered nonprofit
organization, and a housing cooperative''; and
(F) by adding at the end the following:
``(vii) Additional requirements and
additional eligibility for covered
organizations and covered nonprofit
organizations.--
``(I) Lobbying restriction on
smaller covered organizations.--During
the covered period, a covered
organization described in clause (i)
may only receive a covered loan if--
``(aa) the covered
organization does not receive
more than 10 percent of its
receipts from lobbying
activities;
``(bb) the lobbying
activities of the covered
organization do not comprise
more than 10 percent of the
total activities of the covered
organization; and
``(cc) with respect to a
covered organization described
in section 501(c)(4) of the
Internal Revenue Code of 1986
that is exempt from taxation
under subsection (a) of such
section, such covered
organization has not made and
will not make a contribution,
expenditure, independent
expenditure, or electioneering
communication within the
meaning of the Federal Election
Campaign Act of 1971 (52 U.S.C.
30101 et seq.), and has not
undertaken and will not
undertake similar campaign
finance activities in State and
local elections, during the
election cycle which ends on
the date of the general
election in calendar year 2020.
``(II) Eligibility of larger
organizations.--
``(aa) Covered nonprofit
organizations.--During the
covered period, a covered
nonprofit organization that
employs more than the maximum
number of employees allowed
under clause (i) shall be
eligible to receive a covered
loan if the covered nonprofit
organization has had a
significant loss in revenue (as
defined in subparagraph
(B)(ii)(I)(ee)).
``(bb) Covered
organizations.--During the
covered period, a covered
organization that employs more
than the maximum number of
employees allowed under clause
(i) shall be eligible to
receive a covered loan if the
covered organization--
``(AA) meets the
requirements of items
(aa), (bb), and (cc) of
subclause (I); and
``(BB) has had a
significant loss in
revenue (as defined in
subparagraph
(B)(ii)(I)(ee)).
``(viii) Inclusion of critical access
hospitals.--During the covered period, any
covered organization that is a critical access
hospital (as defined in section 1861(mm) of the
Social Security Act (42 U.S.C. 1395x(mm)))
shall be eligible to receive a covered loan,
regardless of the status of such a hospital as
a debtor in a case under chapter 11 of title
11, United States Code, or the status of any
debts owed by such a hospital to the Federal
Government.
``(ix) Additional requirements for certain
news entities.--
``(I) In general.--With respect to
an individual physical location of a
business concern described in item (aa)
of clause (iii)(II), each such location
shall be treated as an independent,
nonaffiliated entity for purposes of
this paragraph.
``(II) Demonstration of need.--Any
individual physical location of a
business concern described in item (aa)
of clause (iii)(II) that is a franchise
or affiliate of, or owned or controlled
by a parent company, investment
company, or the management thereof,
shall demonstrate, upon request of the
Administrator, the need for a covered
loan to support the continued provision
of local news, information, content, or
emergency information, and, at the time
of disbursal, the individual physical
location.
``(III) Limitation on use of
funds.--A business concern, or a parent
company, investment company, or
management company of 1 or more
physical locations of a business
concern, described in item (aa) of
clause (iii)(II) may not use any
portion of the proceeds of a covered
loan for any expense that is not
directly related to the individual
physical location described in
subclause (I) of this clause with
respect to which the covered loan was
made.
``(IV) Waiver of certain
limitations.--For an organization
described in item (bb) of clause
(iii)(II), during the covered period,
the provisions applicable to
affiliations under section 121.103 of
title 13, Code of Federal Regulations,
or any successor regulation, the
provisions of section 120.110(j) of
title 13, Code of Federal Regulations,
or any successor regulation, and any
otherwise applicable covered loan
limitations based on number of
employees or loss in revenue are waived
with respect to determining eligibility
for a covered loan under such item.''.
SEC. 205. LIMIT ON AGGREGATE LOAN AMOUNT FOR ELIGIBLE RECIPIENTS WITH
MORE THAN 1 PHYSICAL LOCATION.
Section 7(a)(36)(E) of the Small Business Act (15 U.S.C.
636(a)(36)(E)) is amended by adding at the end the following flush
matter:
``With respect to an eligible recipient with more than
1 physical location, the total amount of all covered
loans made under this clause to the eligible recipient
shall not be more than $10,000,000.''.
SEC. 206. ALLOWABLE USES OF COVERED LOANS; FORGIVENESS.
(a) Paycheck Protection Program.--Section 7(a)(36) of the Small
Business Act (15 U.S.C. 636(a)(36)) is amended--
(1) in subparagraph (F)(i)--
(A) in subclause (VI), by striking ``and'' at the
end;
(B) in subclause (VII), by striking the period at
the end and inserting a semicolon; and
(C) by adding at the end the following:
``(VIII) costs related to the
provision of personal protective
equipment for employees or other
equipment or supplies determined by the
employer to be necessary to protect the
health and safety of employees and the
general public;
``(IX) payments for inventory, raw
materials, or supplies; and
``(X) costs related to property
damage, vandalism, or looting due to
public disturbances that occurred
during 2020 that were not covered by
insurance or other compensation.''; and
(2) in subparagraph (G)--
(A) in the subparagraph heading, by striking
``Borrower requirements'' and all that follows through
``eligible recipient applying'' and inserting
``Borrower certification requirements.--An eligible
recipient applying'';
(B) by redesignating subclauses (I) through (IV) as
clauses (i) through (iv), respectively, and adjusting
the margins accordingly; and
(C) in clause (ii), as so redesignated, by striking
``to retain workers'' and all that follows through
``utility payments'' and inserting ``for an allowable
use described in subparagraph (F)''.
(b) Forgiveness.--
(1) Definition of expected forgiveness amount.--Section
1106(a)(7) of the CARES Act (15 U.S.C. 9005(a)(7)) is amended--
(A) in subparagraph (C), by striking ``and'' at the
end;
(B) in subparagraph (D), by striking ``and'' at the
end; and
(C) by adding at the end the following:
``(E) interest on any other debt obligations that
were incurred before the covered period;
``(F) any amount that was a loan made under section
7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2))
that was refinanced as part of a covered loan and
authorized by section 7(a)(36)(F)(iv) of the such Act;
``(G) payments made for the provision of personal
protective equipment for employees or other equipment
or supplies determined by the employer to be necessary
to protect the health and safety of employees and the
general public;
``(H) payments made for inventory, raw materials,
or supplies; and
``(I) payments related to property damage,
vandalism, or looting due to public disturbances that
occurred during 2020 that were not covered by insurance
or other compensation; and''.
(2) Forgiveness.--Section 1106(b) of the CARES Act (15
U.S.C. 9005(b)), is amended by adding at the end the following:
``(5) Any payment of interest on any other debt obligations
that were incurred before the covered period.
``(6) Any amount that was a loan made under section 7(b)(2)
of the Small Business Act (15 U.S.C. 636(b)(2)) that was
refinanced as part of a covered loan and authorized by section
7(a)(36)(F)(iv) of such Act.
``(7) Any payment made for the provision of personal
protective equipment for employees or other equipment or
supplies determined by the employer to be necessary to protect
the health and safety of employees.
``(8) Any payment made for inventory, raw materials, or
supplies.
``(9) Any payment related to property damage, vandalism, or
looting due to public disturbances that occurred during 2020
that was not covered by insurance or other compensation.''.
(3) Conforming amendments.--Section 1106 of the CARES Act
(15 U.S.C. 9005) is amended--
(A) in subsection (e), as amended by section 203--
(i) in paragraph (2), by striking
``payments on covered mortgage obligations,
payments on covered lease obligations, and
covered utility payments'' and inserting
``payments or amounts refinanced described in
subsection (b) (other than payroll costs)'';
and
(ii) in paragraph (3)(B), by striking ``,
make interest payments'' and all that follows
through ``or make covered utility payments''
and inserting ``, make payments described in
subsection (b), or that was refinanced as part
of a covered loan and authorized by section
7(a)(36)(F)(iv) of the Small Business Act'';
and
(B) in subsection (h), by striking ``payments for
payroll costs, payments on covered mortgage
obligations, payments on covered lease obligations, or
covered utility payments'' each place it appears and
inserting ``payments or amounts refinanced described in
subsection (b)''.
SEC. 207. DOCUMENTATION REQUIRED FOR CERTAIN ELIGIBLE RECIPIENTS.
Section 7(a)(36)(D)(ii)(II) of the Small Business Act (15 U.S.C.
636(a)(36)(D)(ii)(II)) is amended by striking ``as is necessary'' and
all that follows through the period at the end and inserting ``as
determined necessary by the Administrator and the Secretary, to
establish such individual as eligible.''.
SEC. 208. EXCLUSION OF CERTAIN PUBLICLY TRADED AND FOREIGN ENTITIES.
Section 7(a)(36)(D) of the Small Business Act (15 U.S.C.
636(a)(36)(D)), as amended by section 204, is amended by adding at the
end the following:
``(x) Exclusion of certain publicly traded
and foreign entities.--Effective on the date of
enactment of this clause--
``(I) a publicly traded entity, as
defined in subparagraph (B)(ii), is not
eligible to receive a covered loan; and
``(II) an entity that is 51 percent
or more owned by a foreign person, or
the management and daily business
operations of which are controlled by a
foreign person (excluding an entity
owned and controlled by a person
domiciled in a territory or possession
of the United States), is not eligible
to receive a covered loan.''.
SEC. 209. ELECTION OF 12-WEEK PERIOD BY SEASONAL EMPLOYERS.
Section 7(a)(36)(E)(i)(I)(aa)(AA) of the Small Business Act (15
U.S.C. 636(a)(36)(E)(i)(I)(aa)(AA)) is amended by striking ``, in the
case of an applicant'' and all that follows through ``June 30, 2019''
and inserting the following: ``an applicant that is a seasonal
employer, as determined by the Administrator, shall use the average
total monthly payments for payroll for any 12-week period selected by
the seasonal employer between February 15, 2019, and December 31,
2019''.
SEC. 210. INCLUSION OF CERTAIN REFINANCING IN NONRECOURSE REQUIREMENTS.
Section 7(a)(36)(F)(v) of the Small Business Act (15 U.S.C.
636(a)(36)(F)(v)) is amended by striking ``clause (i)'' and inserting
``clause (i) or (iv)''.
SEC. 211. CREDIT ELSEWHERE REQUIREMENTS.
Section 7(a)(36)(I) of the Small Business Act (15 U.S.C.
636(a)(36)(I)) is amended to read as follows:
``(I) Credit elsewhere.--The requirement that a
small business concern is unable to obtain credit
elsewhere (as defined in section 3(h))--
``(i) shall not apply to--
``(I) a covered loan approved by
the Administrator before the date of
enactment of the Heroes Small Business
Lifeline Act; or
``(II) a covered loan made to a
covered organization, covered nonprofit
organization, or housing cooperative;
and
``(ii) shall only apply to covered loans in
an amount greater than $350,000 approved by the
Administrator on or after the date of the
enactment of the Heroes Small Business Lifeline
Act.''.
SEC. 212. PROHIBITION ON RECEIVING DUPLICATIVE AMOUNTS FOR PAYROLL
COSTS.
(a) Paycheck Protection Program.--Clause (iv) of section
7(a)(36)(G) of the Small Business Act (15 U.S.C. 636(a)(36)(G)), as
redesignated by section 206, is amended--
(1) by striking ``December 31, 2020'' and inserting ``June
30, 2020''; and
(2) by striking ``the same purpose and'' and inserting
``payments for payroll costs incurred during such period''.
(b) Treasury Program.--Section 1109(f) of the CARES Act (15 U.S.C.
9008(f)) is amended--
(1) in paragraph (1), by striking ``for the same purpose''
and inserting ``for payments for payroll costs (as defined in
section 7(a)(36)(A)(viii) of the Small Business Act (15 U.S.C.
636(a)(36)(A)(viii)))''; and
(2) in paragraph (2), by striking ``December 31, 2020'' and
inserting ``June 30, 2020''.
SEC. 213. APPLICATION OF CERTAIN TERMS THROUGH LIFE OF COVERED LOAN.
Section 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36))
is amended--
(1) in subparagraph (H), in the matter preceding clause
(i), by striking ``During the covered period, with'' and
inserting ``With'';
(2) in subparagraph (J), in the matter preceding clause
(i), by striking ``During the covered period, with'' and
inserting ``With''; and
(3) in subparagraph (M)--
(A) in clause (ii), in the matter preceding
subclause (I), by striking ``During the covered period,
the'' and inserting ``The''; and
(B) in clause (iii), by striking ``During the
covered period, with'' and inserting ``With''.
SEC. 214. INTEREST CALCULATION ON COVERED LOANS.
Section 7(a)(36)(L) of the Small Business Act (15 U.S.C.
636(a)(36)(L)) is amended by inserting ``, calculated on a non-
compounding, non-adjustable basis'' after ``4 percent''.
SEC. 215. REIMBURSEMENT FOR PROCESSING.
Section 7(a)(36)(P) of the Small Business Act (15 U.S.C.
636(a)(36)(P)) is amended--
(1) in clause (ii), by adding at the end the following:
``Such fees shall be paid by the eligible recipient and may not
be paid out of the proceeds of a covered loan. A lender shall
only be responsible for paying fees to an agent for services
for which the lender directly contracts with the agent.''; and
(2) by amending clause (iii) to read as follows:
``(iii) Timing.--A reimbursement described
in clause (i) shall be made not later than 5
days after the reported disbursement of the
covered loan and may not be required to be
repaid by a lender unless the lender is found
guilty of an act of fraud in connection with
the covered loan.''.
SEC. 216. DUPLICATION REQUIREMENTS FOR ECONOMIC INJURY DISASTER LOAN
RECIPIENTS.
Section 7(a)(36)(Q) of the Small Business Act (15 U.S.C.
636(a)(36)(Q)) is amended by striking ``during the period beginning on
January 31, 2020, and ending on the date on which covered loans are
made available''.
SEC. 217. REAPPLICATION FOR AND MODIFICATION TO PAYCHECK PROTECTION
PROGRAM.
(a) Definitions.--In this section, the terms ``covered loan'' and
``eligible recipient'' have the meanings given those terms in
7(a)(36)(A) of the Small Business Act (15 U.S.C. 636(a)(36)(A)).
(b) Rules or Guidance.--Not later than 7 days after the date of
enactment of this Act, the Administrator shall issue rules or guidance
to ensure that an eligible recipient of a covered loan that returns
amounts disbursed under the covered loan or does not accept the full
amount of the covered loan for which the eligible recipient was
approved--
(1) in the case of an eligible recipient that returned all
or part of a covered loan, the eligible recipient may reapply
for a covered loan for an amount equal to the difference
between the amount retained and the maximum amount applicable;
and
(2) in the case of an eligible recipient that did not
accept the full amount of a covered loan, the eligible
recipient may request a modification to increase the amount of
the covered loan to the maximum amount applicable, subject to
the requirements of section 7(a)(36) of the Small Business Act
(15 U.S.C. 636(a)).
SEC. 218. TREATMENT OF CERTAIN CRIMINAL VIOLATIONS.
(a) In General.--Section 7(a)(36) of the Small Business Act (15
U.S.C. 636(a)(36)), as amended by section 101, is amended by adding at
the end the following:
``(U) Treatment of certain criminal violations.--
``(i) Financial fraud or deception.--An
entity that is a business, organization,
cooperative, or enterprise may not receive a
covered loan if an owner of 20 percent or more
of the equity of the entity, during the 5-year
period preceding the date on which the entity
applies for a covered loan, has been convicted
of a felony of financial fraud or deception
under Federal, State, or Tribal law.
``(ii) Arrests or convictions.--An entity
that is a business, organization, cooperative,
or enterprise shall be an eligible recipient
notwithstanding a prior arrest or conviction
under Federal, State, or Tribal law of an owner
of 20 percent or more of the equity of the
entity, unless the owner is currently
incarcerated.
``(iii) Waiver.--The Administrator may
waive the requirements of clause (i).''.
(b) Rulemaking.--Not later than 15 days after the date of enactment
of this Act, the Administrator shall make necessary revisions to any
rules to carry out the amendment made by this section.
SEC. 219. ELIGIBILITY AND TREATMENT OF FARM CREDIT SYSTEM INSTITUTIONS.
(a) Definition of Farm Credit System Institution.--In this section,
the term ``Farm Credit System institution''--
(1) means an institution of the Farm Credit System
chartered under the Farm Credit Act of 1971 (12 U.S.C. 2001 et
seq.); and
(2) does not include the Federal Agricultural Mortgage
Corporation.
(b) Facilitation of Participation in PPP and Second Draw Loans.--
(1) Applicable rules.--Solely with respect to loans under
paragraph (36) of section 7(a) of the Small Business Act (15
U.S.C. 636(a)), Farm Credit Administration regulations and
guidance issued as of July 14, 2020, and compliance with such
regulations and guidance, shall be deemed functionally
equivalent to requirements referenced in section 3(a)(iii)(II)
of the interim final rule of the Administration entitled
``Business Loan Program Temporary Changes; Paycheck Protection
Program'' (85 Fed. Reg. 20811 (April 15, 2020)).
(2) Applicability of certain loan requirements.--For
purposes of making loans under paragraph (36) of section 7(a)
of the Small Business Act (15 U.S.C. 636(a)) or forgiving those
loans in accordance with section 1106 of the CARES Act (15
U.S.C. 9005), sections 4.13, 4.14, and 4.14A of the Farm Credit
Act of 1971 (12 U.S.C. 2199, 2202, 2202a) (including
regulations issued under those sections) shall not apply.
(3) Risk weight.--
(A) In general.--With respect to the application of
Farm Credit Administration capital requirements, a loan
described in subparagraph (B)--
(i) shall receive a risk weight of zero
percent; and
(ii) shall not be included in the
calculation of any applicable leverage ratio or
other applicable capital ratio or calculation.
(B) Loans described.--A loan referred to in
subparagraph (A) is--
(i) a loan made by a Farm Credit Bank
described in section 1.2(a) of the Farm Credit
Act of 1971 (12 U.S.C. 2002(a)) to a Federal
Land Bank Association, a Production Credit
Association, or an agricultural credit
association described in that section to make
loans under paragraph (36) of section 7(a) of
the Small Business Act (15 U.S.C. 636(a)) or
forgive those loans in accordance with section
1106 of the CARES Act (15 U.S.C. 9005); or
(ii) a loan made by a Federal Land Bank
Association, a Production Credit Association,
an agricultural credit association, or the bank
for cooperatives described in section 1.2(a) of
the Farm Credit Act of 1971 (12 U.S.C. 2002(a))
under paragraph (36) of section 7(a) of the
Small Business Act (15 U.S.C. 636(a)).
TITLE III--TAX PROVISIONS
SEC. 301. IMPROVED COORDINATION BETWEEN PAYCHECK PROTECTION PROGRAM AND
EMPLOYEE RETENTION TAX CREDIT.
(a) Amendment to Paycheck Protection Program.--Section 1106(a)(8)
of the CARES Act (15 U.S.C. 9005(a)(8)) is amended by inserting ``,
except that such costs shall not include qualified wages taken into
account in determining the credit allowed under section 2301 of this
Act'' before the period at the end.
(b) Amendments to Employee Retention Tax Credit.--
(1) In general.--Section 2301(g) of the CARES Act (Public
Law 116-136; 26 U.S.C. 3111 note) is amended to read as
follows:
``(g) Election To Not Take Certain Wages Into Account.--
``(1) In general.--This section shall not apply to so much
of the qualified wages paid by an eligible employer as such
employer elects (at such time and in such manner as the
Secretary may prescribe) to not take into account for purposes
of this section.
``(2) Coordination with paycheck protection program.--The
Secretary, in consultation with the Administrator of the Small
Business Administration, shall issue guidance providing that
payroll costs paid or incurred during the covered period shall
not fail to be treated as qualified wages under this section by
reason of an election under paragraph (1) to the extent that a
covered loan of the eligible employer is not forgiven under
section 1106(b) by reason of such payroll costs. Terms used in
the preceding sentence which are also used in section 1106
shall have the same meaning as when used in such section.''.
(2) Conforming amendments.--
(A) Section 2301 of the CARES Act (Public Law 116-
136; 26 U.S.C. 3111 note) is amended by striking
subsection (j).
(B) Section 2301(l) of the CARES Act (Public Law
116-136; 26 U.S.C. 3111 note) is amended by striking
paragraph (3) and by redesignating paragraphs (4) and
(5) as paragraphs (3) and (4), respectively.
(c) Effective Date.--The amendments made by this section shall take
effect as if included in the provisions of the CARES Act (Public Law
116-136) to which they relate.
TITLE IV--COVID-19 ECONOMIC INJURY DISASTER LOAN PROGRAM REFORM
SEC. 401. SENSE OF CONGRESS.
It is the sense of Congress that--
(1) many businesses that have received economic injury
disaster loans under section 7(b)(2) of the Small Business Act
(15 U.S.C. 636(b)(2)) continue to suffer from the effects of
the COVID-19 pandemic and may not be in a position to make
payments in the near term;
(2) the Administrator has the authority under the Small
Business Act (15 U.S.C. 631 et seq.) to reduce the interest
charged on loans and to offer borrowers up to 4 years of
deferment on the payment of interest and principal; and
(3) the Congress encourages the Administrator to use this
discretion to provide relief to the hardest hit small
businesses that have received or will receive direct loans from
the Administration under section 7(b)(2) of the Small Business
Act (15 U.S.C. 636(b)(2)).
SEC. 402. NOTICES TO APPLICANTS FOR ECONOMIC INJURY DISASTER LOANS OR
ADVANCES.
Section 7(b)(11) of the Small Business Act (15 U.S.C. 636(b)(11))
is amended--
(1) by striking ``The Administrator'' and inserting the
following:
``(A) In general.--The Administrator''; and
(2) by adding at the end the following:
``(B) Acceptance criteria and qualifications.--In
carrying out subparagraph (A), the Administrator
shall--
``(i) publish on the website of the
Administration a description of the rules
issued with respect to a loan made under this
subsection, which shall be clear and easy to
understand; and
``(ii) upon receiving an application for a
loan under this subsection, provide to the loan
applicant the description described in clause
(i).
``(C) Right to explanation of declined loan or
advance.--
``(i) In general.--The Administrator
shall--
``(I) provide all applicants for a
loan under this subsection or an
advance under section 1110(e) of the
CARES Act (15 U.S.C. 9009(e)) for which
the loan or advance application was
fully or partially denied with a
complete written application of the
reason for the denial at the time the
decision is made;
``(II) establish a dedicated
telephonic information line and e-mail
address to respond to further inquiries
about denied applications described in
subclause (I); and
``(III) before fully or partially
denying an application for a loan under
this subsection or an advance under
such section 1110(e) because the
applicant submitted incomplete
information--
``(aa) contact the
applicant and give the
applicant the opportunity to
provide that information; and
``(bb) reconsider the
application with any additional
information provided.
``(ii) Submission of additional
information.--An applicant for a loan under
this subsection or an advance under section
1110(e) of the CARES Act (15 U.S.C. 9008(e))
that can remedy the grounds for denial of the
application by submitting additional
information under clause (i)(III)--
``(I) shall have the opportunity to
do so directly with a loan officer; and
``(II) shall not be required to
seek a remedy through the appeals
process of the Administration.''.
SEC. 403. MODIFICATIONS TO EMERGENCY EIDL ADVANCES.
Section 1110(e)(1) of the CARES Act (15 U.S.C. 9009(e)(1)) is
amended to read as follows:
``(1) In general.--During the covered period, an entity
included for eligibility in subsection (b), including small
business concerns, private nonprofit organizations, and small
agricultural cooperatives, that applies for a loan under
section 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2))
in response to COVID-19 shall be provided an advance that is,
subject to paragraph (3), disbursed within 3 days after the
Administrator receives an application from the entity, unless
the advance is specifically declined by the entity.''.
SEC. 404. DATA TRANSPARENCY, VERIFICATION, AND NOTICES FOR ECONOMIC
INJURY DISASTER LOANS.
(a) In General.--Section 1110 of the CARES Act (15 U.S.C. 9009) is
amended--
(1) by redesignating subsection (f) as subsection (j); and
(2) by inserting after subsection (e) the following:
``(f) Data Transparency.--
``(1) In general.--In this subsection, the term `covered
application' means an application submitted to the
Administrator for a loan under section 7(b)(2) of the Small
Business Act (15 U.S.C. 636(b)(2)), including an application
for such a loan submitted by an eligible entity.
``(2) Weekly reports.--Not later than 1 week after the date
of enactment of the Heroes Small Business Lifeline Act, and
weekly thereafter until the end of the covered period, the
Administrator shall publish on the website of the
Administration a report that contains the following
information:
``(A) For the week covered by the report, the
number of covered applications that the Administrator--
``(i) received;
``(ii) processed; and
``(iii) approved and rejected, including
the percentage of covered applications that the
Administrator approved.
``(B) With respect to the covered applications that
the Administrator approved during the week covered by
the report, the number and dollar amount of the loans
made with respect to such applications as part of a
response to COVID-19.
``(C) The identification number, or other indicator
showing the order in which any application was received
and intended to be processed, for the most recent
covered application processed by the Administrator.
``(D) Demographic data with respect to applicants
submitting covered applications during the week covered
by the report and loans made pursuant to covered
applications during the week covered by the report,
which shall include--
``(i) with respect to each such applicant
or loan recipient, as applicable, information
regarding--
``(I) the geographic area in which
the applicant or loan recipient
operates;
``(II) if applicable, the sex,
race, and ethnicity of each owner of
the applicant or loan recipient, which
the individual may decline to provide;
``(III) the annual revenue of the
applicant or loan recipient;
``(IV) the number of employees
employed by the applicant or loan
recipient;
``(V) whether the applicant or loan
recipient is a for-profit or nonprofit
entity; and
``(VI) the industry in which the
applicant or loan recipient operates;
``(ii) the number of such loans made to
agricultural enterprises (as defined in section
18(b) of the Small Business Act (15 U.S.C.
647)(b))); and
``(iii) the average economic injury
suffered by--
``(I) applicants, the covered
applications of which the Administrator
approved; and
``(II) applicants, the covered
applications of which the Administrator
rejected.
``(g) Verification of Business Eligibility.--
``(1) In general.--With respect to an application submitted
to the Administrator during the covered period for a loan under
section 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2))
in response to COVID-19, the Administrator shall verify that
each such applicant was in operation on January 31, 2020.
``(2) Report.--Not later than 30 days after the date of
enactment of this subsection, the Administrator shall submit to
Congress a report that describes the steps taken by the
Administrator to perform the verification required under
paragraph (1).
``(3) Sense of congress.--It is the sense of Congress that
the verification required under paragraph (1) constitutes
oversight that the Administrator is required to perform under
paragraph (15) of section 7(b) of the Small Business Act (15
U.S.C. 636(b)) with respect to entities receiving loans under
paragraph (2) of such section 7(b).
``(h) Notifications to Congress.--
``(1) Definitions.--In this subsection--
``(A) the term `appropriate committees of Congress'
means--
``(i) the Committee on Small Business and
Entrepreneurship and the Subcommittee on
Financial Services and General Government of
the Committee on Appropriations of the Senate;
and
``(ii) the Committee on Small Business and
the Subcommittee on Financial Services and
General Government of the Committee on
Appropriations of the House of Representatives;
and
``(B) the term `covered program, project, or
activity' means--
``(i) the program under this section;
``(ii) the loan program under section
7(b)(2) of the Small Business Act (15 U.S.C.
636(b)(2));
``(iii) the authorized activities for
amounts were appropriated in response to the
COVID-19 pandemic under the heading `Small
Business Administration--Salaries and
Expenses'; or
``(iv) any other program, project, or
activity for which funds are made available to
the Administration to respond to the COVID-19
pandemic.
``(2) Notice of approaching funding lapse.--The
Administrator shall submit to the appropriate committees of
Congress a notification not later than 2 days after the date on
which unobligated balances of amounts appropriated for a fiscal
year for any covered program, project, or activity are less
than 25 percent of the total amount appropriated for the
covered program, project, or activity for such fiscal year.
``(3) Monthly report.--The Administrator shall submit to
the appropriate committees of Congress a monthly report
detailing the current and future planned uses of amounts
appropriated in response to the COVID-19 pandemic under the
heading `Small Business Administration--Salaries and Expenses',
which shall include--
``(A) the number of employees hired and contractors
retained using such amounts;
``(B) the number of contracts with a total cost of
more than $5,000,000 entered into using such amounts;
``(C) a list of all sole source contracts entered
into using such amounts; and
``(D) any program changes, regulatory actions,
guidance issuances, or other initiatives relating to
the response to the COVID-19 pandemic.''.
(b) Retroactive Collection.--As soon as is practicable after the
date of enactment of this Act, the Administrator shall collect the
information required under section 1110(f) of the CARES Act (15 U.S.C.
9009(f)), as amended by subsection (a), from applicants that submitted
covered applications (as defined in such section 1110(f)) during the
period beginning on the date of enactment of the CARES Act (Public Law
116-136) and ending on the date of enactment of this Act.
SEC. 405. LIFELINE FUNDING FOR SMALL BUSINESS CONTINUITY, ADAPTATION,
AND RESILIENCY.
Section 1110 of the CARES Act (15 U.S.C. 9009), is amended by
inserting after subsection (h), as added by section 404, the following:
``(i) Lifeline Funding for Small Business Continuity, Adaptation,
and Resiliency.--
``(1) Definitions.--In this subsection:
``(A) Agricultural enterprise.--The term
`agricultural enterprise' has the meaning given the
term in section 18(b) of the Small Business Act (15
U.S.C. 647(b)).
``(B) Covered entity.--The term `covered entity'--
``(i) means an eligible entity described in
subsection (b) of this section, if such
eligible entity--
``(I) has not more than 50
employees; and
``(II) has suffered an economic
loss of not less than 30 percent; and
``(ii) except with respect to an entity
included under section 123.300(c) of title 13,
Code of Federal Regulations, or any successor
regulation, does not include an agricultural
enterprise.
``(C) Economic loss.--The term `economic loss'
means, with respect to a covered entity, the amount by
which the gross receipts of the covered entity declined
during an 8-week period between March 2, 2020, and
December 31, 2020 (as determined by the covered
entity), relative to a comparable 8-week period
immediately preceding March 2, 2020, or during 2019 (as
determined by the covered entity).
``(D) Economically disadvantaged individual.--The
term `economically disadvantaged individual' means an
economically disadvantaged individual under section
124.104 of title 13, Code of Federal Regulations, or
any successor regulation.
``(E) 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.
``(F) Remote recreations enterprise.--The term
`remote recreational enterprise' means a covered entity
that was in operation on or before March 1, 2020, that
can document an economic loss caused by the closure of
the United States and Canadian border that restricted
the ability of American customers to access the
location of the covered entity.
``(G) Socially disadvantaged individual.--The term
`socially disadvantaged individual' means a socially
disadvantaged individual under section 124.103 of title
13, Code of Federal Regulations, or any successor
regulation.
``(H) Veteran.--The term `veteran' has the meaning
given the term in section 3(q) of the Small Business
Act (15 U.S.C. 632(q)).
``(2) Procedure.--During the covered period, a covered
entity that applies for a loan under section 7(b)(2) of the
Small Business Act (15 U.S.C. 636(b)(2)) may request that the
Administrator provide funding for the purposes described in
paragraph (6).
``(3) Verification.--With respect to each request submitted
by an entity under paragraph (2), the Administrator shall--
``(A) not later than 14 days after the date on
which the Administrator receives the request, verify
whether the entity is a covered entity; and
``(B) if the Administrator verifies that the entity
is a covered entity under subparagraph (A), and subject
to paragraph (8), disburse the funding requested by the
covered entity not later than 7 days after the date on
which the Administrator completes the verification.
``(4) Order of processing.--Subject to paragraph (8), the
Administrator shall process and approve requests submitted
under paragraph (2) in the order the Administrator receives the
requests.
``(5) Amount of funding.--
``(A) In general.--The amount of funding provided
to a covered entity that submits a request under
paragraph (2) shall be in an amount that is the lesser
of--
``(i) the amount of working capital needed
by the covered entity for the 180-day period
beginning on the date on which the covered
entity would receive the funding, as determined
by the Administrator using a methodology that
is identical to the methodology used by the
Administrator to determine working capital
needs with respect to an application for a loan
submitted under section 7(b)(2) of the Small
Business Act (15 U.S.C. 636(b)(2)); or
``(ii) $50,000.
``(B) Entitlement to full amount.--A covered entity
that receives funding pursuant to a request submitted
under paragraph (2) shall be entitled to receive the
full amount of that funding, as determined under
subparagraph (A), without regard to--
``(i) if the applicable loan for which the
covered entity has applied under section
7(b)(2) of the Small Business Act (15 U.S.C.
636(b)(2)) is approved, the amount of the loan;
``(ii) whether the covered entity accepts
the offer of the Administrator with respect to
an approved loan described in clause (i); or
``(iii) whether the covered entity has
previously received any amounts under
subsection (e).
``(6) Use of funds.--A covered entity that receives funding
under this subsection--
``(A) may use the funding--
``(i) for any purpose for which a loan
received under section 7(b)(2) of the Small
Business Act (15 U.S.C. 636(b)(2)) may be used;
``(ii) for working capital needs, including
investments to implement adaptive changes or
resiliency strategies to help the eligible
entity maintain business continuity during the
COVID-19 pandemic; or
``(iii) to repay any unpaid amount of--
``(I) a loan received under
subsection (a)(36) or (b)(2) of section
7 of the Small Business Act (15 U.S.C.
636); or
``(II) mortgage interest; and
``(B) may not use the funding to pay any loan debt,
except as provided in subparagraph (A)(iii).
``(7) Applicability.--In addition to any other restriction
imposed under this subsection, any eligibility restriction
applicable to a loan made under section 7(b)(2) of the Small
Business Act (15 U.S.C. 636(b)(2)), including any restriction
under section 123.300 or 123.301 of title 13, Code of Federal
Regulations, or any successor regulation, shall apply with
respect to funding provided under this subsection.
``(8) Priority.--During the 56-day period beginning on the
date of enactment of this subsection, the Administrator may
approve a request for funding under this subsection only if the
request is submitted by--
``(A) a covered entity located in a low-income
community;
``(B) a covered entity owned or controlled by a
veteran or a member of the Armed Forces;
``(C) a covered entity owned or controlled by an
economically disadvantaged individual or a socially
disadvantaged individual; or
``(D) a remote recreational enterprise.
``(9) Administration.--In carrying out this subsection, the
Administrator may rely on loan officers and other personnel of
the Office of Disaster Assistance of the Administration and
other resources of the Administration, including contractors of
the Administration.
``(10) Retroactive effect.--Any covered entity that, during
the period beginning on January 1, 2020, and ending on the day
before the date of enactment of this subsection, applied for a
loan under section 7(b)(2) of the Small Business Act (15 U.S.C.
636(b)(2)) may submit to the Administrator a request under
paragraph (2) with respect to that loan.
``(11) Authorization of appropriations.--There are
authorized to be appropriated to the Administrator
$40,000,000,000 to carry out this subsection, which shall
remain available through December 31, 2021, of which--
``(A) $20,000,000,000 is authorized to be
appropriated to provide funding to covered entities
described in paragraph (8); and
``(B) $20,000,000 is authorized to be appropriated
to the Inspector General of the Administration to
prevent waste, fraud, and abuse with respect to funding
provided under this subsection.''.
SEC. 406. MODIFICATIONS TO ECONOMIC INJURY DISASTER LOANS.
(a) Loans for New Borrowers.--With respect to a loan made under
section 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2)) to a
borrower adversely impacted by COVID-19 during the period beginning on
the date of enactment of this Act and ending on December 31, 2020--
(1) the borrower shall be eligible for a loan in an amount
equal to 6 months of working capital if the borrower otherwise
meets the underwriting standards established by the
Administration; and
(2) the Administrator--
(A) shall not impose a maximum loan amount limit
that is lower than $2,000,000; and
(B) shall not disqualify any applicant for such a
loan due to the criminal history or arrest record of
the applicant, except in the case of an applicant that,
during the 5-year period preceding the date on which
the applicant submits an application, has been
convicted--
(i) of a felony offense involving fraud,
bribery, or embezzlement in any State or
Federal court; or
(ii) in connection with a false statement
made in--
(I) a loan application; or
(II) an application for Federal
financial assistance.
(b) Additional Loan for Existing Borrowers.--
(1) In general.--A recipient of a loan made under section
7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2)) to a
borrower adversely impacted by COVID-19 during the period
beginning on January 31, 2020, and ending on the date of
enactment of this Act may submit to the Administrator a request
for an additional amount to increase in the amount of that
loan, provided that the aggregate amount received under such
section by the recipient during that period shall be not more
than the lesser of--
(A) an amount equal to 6 months of working capital
for the recipient; and
(B) $2,000,000.
(2) Consideration.--In considering a request submitted
under paragraph (1), the Administrator--
(A) may not recalculate the economic injury or
creditworthiness of the borrower; and
(B) shall issue a determination based on the
documentation submitted by the borrower for the initial
loan under section 7(b)(2) of the Small Business Act
(15 U.S.C. 636(b)(2)), any other new information
voluntarily provided by the borrower, and any
information obtained to prevent fraud or abuse.
(3) Additional documentation.--If the Administrator
requires a borrower making a request under paragraph (1) to
provide additional documentation, the Administrator shall--
(A) publish those documentation requirements on the
website of the Administration not later than 7 days
after the date of enactment of this Act; and
(B) proactively provide those requirements to any
such borrower that received a loan described in
paragraph (1).
SEC. 407. PRINCIPAL AND INTEREST PAYMENTS FOR CERTAIN DISASTER LOANS.
(a) Definitions.--In this section:
(1) Covered eidl loan.--The term ``covered EIDL loan''
means a loan made under section 7(b)(2) of the Small Business
Act (15 U.S.C. 636(b)(2)) that--
(A) was approved by the Administrator before
February 15, 2020; and
(B) is in a regular servicing status.
(2) Physical disaster loan.--The term ``physical disaster
loan'' means a loan made under section 7(b)(1) of the Small
Business Act (15 U.S.C. 636(b)(1)) in a regular servicing
status.
(b) Payment by Administrator.--The Administrator shall pay the
principal, interest, and any associated fees that are owed on a
physical disaster loan or a covered EIDL loan as follows:
(1) With respect to a physical disaster loan--
(A) not in deferment, for the 12-month period
beginning with the next payment due on such loan;
(B) in deferment, for the 12-month period beginning
with the next payment due on such loan after the
deferment period; and
(C) made on or after the date of enactment of this
Act, for the 12-month period beginning with the first
payment due on such loan.
(2) With respect to a covered EIDL loan--
(A) not in deferment, for the 12-month period
beginning with the next payment due on such loan; and
(B) in deferment, for the 12-month period beginning
with the next payment due on such loan after the
deferment period.
(c) Timing of Payment.--The Administrator shall begin making
payments under subsection (b) not later than 30 days after the date on
which the first such payment is due.
(d) Application of Payment.--Any payment made by the Administrator
under subsection (b) shall be applied to the physical disaster loan or
a covered EIDL loan (as applicable) such that the borrower is relieved
of the obligation to pay that amount.
SEC. 408. TRAINING.
The Administrator shall--
(1) develop and implement a plan to train any staff
responsible for implementing or administering the loan program
established under section 7(b)(2) of the Small Business Act (15
U.S.C. 636(b)(2)) on specific responsibilities with respect to
such program; and
(2) submit the plan to the Committee on Small Business and
Entrepreneurship of the Senate and the Committee on Small
Business of the House of Representatives.
SEC. 409. OUTREACH PLAN.
Not later than 30 days after the date of enactment of this Act, the
Administrator shall submit to the Committee on Small Business and
Entrepreneurship of the Senate and the Committee on Small Business of
the House of Representatives an outreach plan to clearly communicate
program and policy changes to all offices of the Administration, small
business development centers (as defined in section 3 of the Small
Business Act (15 U.S.C. 632)), women's business centers (described in
section 29 of such Act (15 U.S.C. 656)), chapters of the Service Corps
of Retired Executives (established under section 8(b)(1)(B) of such Act
(15 U.S.C. 637(b)(1)(B))), Veteran Business Outreach Centers (described
in section 32 of such Act (15 U.S.C. 657b)), Members of Congress,
congressional committees, small business concerns (as defined in
section 3 of such Act (15 U.S.C. 632)), and the public.
SEC. 410. REPORT ON BEST PRACTICES.
Not later than 60 days after the date of enactment of this Act, the
Administrator shall submit to the Committee on Small Business and
Entrepreneurship of the Senate and the Committee on Small Business of
the House of Representatives a report on outlining the best practices
to administer the loan program established under section 7(b)(2) of the
Small Business Act (15 U.S.C. 636(b)(2)) during a pandemic.
SEC. 411. EXTENSION OF PERIOD OF AVAILABILITY FOR ADMINISTRATIVE FUNDS.
Section 1107(a) of the CARES Act (15 U.S.C. 9006(a)) is amended, in
the matter preceding paragraph (1), by striking ``until September 30,
2021'' and inserting ``until December 31, 2021, for amounts
appropriated under paragraph (2), and until September 30, 2021, for all
other amounts appropriated under this subsection''.
TITLE V--MICRO-SBIC AND EQUITY INVESTMENT ENHANCEMENT
SEC. 501. MICRO-SBIC PROGRAM.
Title III of the Small Business Investment Act of 1958 (15 U.S.C.
681 et seq.) is amended by adding at the end the following:
``PART D--MICRO-SBIC PROGRAM
``SEC. 399A. MICRO-SBIC PROGRAM.
``(a) Establishment.--There is established in the Administration a
program to be known as the `Micro-SBIC Program' under which the
Administrator shall issue a license to an applicant for the purpose of
making loans to and investments in small business concerns. An
applicant licensed under this section shall have the same benefits as
an applicant licensed under section 301.
``(b) Eligibility.--An applicant desiring to receive a license to
operate as a micro-SBIC shall submit an application to the
Administrator at such time, in such manner, and containing such
information as the Administrator may require, including--
``(1) evidence that the applicant holds private capital of
not less than $5,000,000;
``(2) evidence that the management of the applicant is
qualified and has significant business expertise relevant to
the applicant's strategy; and
``(3) an election to receive a seed investment under
section 399C or leverage from the Administrator.
``(c) Issuance of License.--
``(1) Procedures.--
``(A) Status.--Not later than 90 days after the
initial receipt by the Administrator of an application
under this section, the Administrator shall provide the
applicant with a written report detailing the status of
the application and any requirements remaining for
completion of the application.
``(B) Approval or disapproval.--Except as provided
in subparagraph (C) and within a reasonable time after
providing the report under subparagraph (A), and in
accordance with such requirements as the Administrator
may prescribe by regulation, the Administrator shall--
``(i) approve the application and issue to
the applicant a license to operate as a micro-
SBIC; or
``(ii) disapprove the application and
notify the applicant in writing of the
disapproval.
``(C) Provisional approval.--The Administrator may
provide provisional approval for an applicant for a
period of not more than 12 months before making a final
determination of approval or disapproval under
subparagraph (B).
``(D) Explanation of disapproval.--An applicant may
submit to the Administrator a request for a written
explanation regarding the disapproval of an application
under subparagraph (B)(ii).
``(2) Appeals.--
``(A) Disapproved applications.--With respect to an
application that is disapproved under paragraph
(1)(B)(ii)--
``(i) not later than 30 days after the date
on which the application is disapproved, the
applicant may submit an appeal to the Chair of
the Investment Division Licensing Committee of
the Administration (referred to in this
paragraph as the `Chair'); and
``(ii) not later than 30 days after the
date on which the applicant submits an appeal
under clause (i), the Chair shall issue a
ruling with respect to the appeal and notify
the applicant regarding such ruling.
``(B) Denial of appeal.--With respect to an
application that the Chair denies in an appeal
submitted under subparagraph (A)--
``(i) not later than 30 days after the date
on which the Chair submits the notification
required under subparagraph (A)(ii), the
applicant may submit to the Administrator an
appeal of the ruling made by the Chair; and
``(ii) not later than 30 days after the
date on which the applicant submits an appeal
under clause (i), the Administrator shall issue
a final ruling with respect to the appeal and
notify the applicant regarding such ruling.
``(3) Priority.--In reviewing applications and issuing
licenses under this section, the Administrator shall give
priority to an applicant the management of which consists of
not fewer than 2 socially disadvantaged individuals or
economically disadvantaged individuals and not fewer than 1
track record investment committee member.
``(4) Expedited procedures.--The Administrator shall
establish expedited procedures for the consideration of an
application submitted under subsection (b), including a written
report under paragraph (1)(A) not later than 45 days after the
initial receipt of an application, for--
``(A) a small business investment company licensed
under section 301;
``(B) a rural business investment company; or
``(C) a bank-owned applicant.
``(d) Maximum Leverage.--
``(1) In general.--For a micro-SBIC that elects to receive
leverage under subsection (b)(3), the maximum amount of
outstanding leverage made available to any one micro-SBIC may
not exceed--
``(A) 50 percent of the private capital of the
micro-SBIC, not to exceed $25,000,000; or
``(B) in the case of a micro-SBIC owned by persons
who also own a small business investment company
licensed under section 301, 100 percent of the private
capital of the micro-SBIC, not to exceed $50,000,000.
``(2) Investments in certain businesses.--In calculating
the outstanding leverage of a micro-SBIC for purposes of
paragraph (1), the Administrator shall exclude the amount of
the cost basis of any investments made in an early-stage small
business, growth-stage small business, scale-up small business,
or covered small business in an amount not to exceed--
``(A) $25,000,000; or
``(B) in the case of a micro-SBIC owned by persons
who also own a small business investment company
licensed under section 301, $50,000,000.
``SEC. 399B. MICRO-SBIC PROGRAM REQUIREMENTS.
``(a) Surrender of License.--A micro-SBIC that voluntarily
surrenders a license issued under this part shall enter into an
agreement with Administrator for the repayment of leverage received.
Such agreement may not require the micro-SBIC to immediately repay all
leverage received.
``(b) Administration.--To the extent practicable, for a micro-SBIC
that elects to receive leverage under section 399A(b)(3), the
Administrator shall administer the Micro-SBIC Program in a similar
manner to the program under section 301.
``SEC. 399C. SEED INVESTMENT PROGRAM.
``(a) Establishment.--The Administrator shall establish and carry
out an equity investment program (in this part referred to as the `Seed
Investment Program') to provide seed investments to a micro-SBIC to
invest in small business concerns.
``(b) Application.--A micro-SBIC that elects to receive a seed
investment under section 399A(b)(3) shall submit to the Administrator
an application that includes the following:
``(1) A business plan describing how the applicant intends
to make successful investments in early-stage small businesses,
growth-stage small businesses, scale-up small businesses, or
covered small businesses, as applicable.
``(2) A description of the extent to which the applicant
meets the selection criteria under subsection (c).
``(c) Selection.--
``(1) In general.--Not later than 90 days after the date of
receipt of an application under subsection (b), the
Administrator shall make a final determination to approve or
disapprove the applicant as a participant in the Seed
Investment Program and shall submit such determination to the
applicant in writing.
``(2) Criteria.--In making a determination under paragraph
(1), the Administrator shall consider each of the following
criteria:
``(A) The likelihood that the applicant will meet
the goals specified in the business plan of the
applicant.
``(B) The likelihood that the investments of the
applicant will directly and indirectly create or
preserve jobs.
``(C) The character and fitness of the management
of the applicant.
``(D) The experience and background of the
management of the applicant.
``(E) The extent to which the applicant will
concentrate investment activities on early-stage small
businesses, growth-stage small businesses, scale-up
small businesses, or covered small businesses, as
applicable.
``(F) The likelihood that the applicant will
achieve profitability.
``(G) The experience of the management of the
applicant with respect to establishing a profitable
investment track record.
``SEC. 399D. REQUIREMENTS FOR SEED INVESTMENTS.
``(a) In General.--The Administrator may make 1 seed investment to
a Program participant, which shall be held in an account from which the
Program participant may make withdrawals.
``(b) Amounts.--
``(1) Non-federal capital.--A seed investment made to a
Program participant may not exceed the amount of capital of the
Program participant that--
``(A) is not from a Federal source; and
``(B) is available for investment, including
through legally binding commitments, on or before the
date on which the seed investment is approved.
``(2) Limitation on amount.--The amount of a seed
investment made to a Program participant may not exceed the
lesser of--
``(A) $25,000,000; or
``(B) 100 percent of the private capital committed
to the Program participant.
``(c) Process.--
``(1) In general.--Amounts held in an account under this
section shall remain available to a Program participant--
``(A) for initial seed investments, during the 5-
year period beginning on the date on which the Program
participant first accesses amounts from the account;
and
``(B) for follow-on investments and management
fees, during the 10-year period beginning on the date
on which the Program participant first accesses amounts
from the account.
``(2) Extension.--Upon request by a Program participant,
the Administrator may grant a 1-year extension of the period
described in paragraph (1)(B) not more than 2 times.
``(3) Use of amounts.--A Program participant shall invest
all amounts held in an account under this section during the
10-year period beginning on the date on which the Program
participant first accesses amounts from the account.
``(d) Priority.--The Administrator shall prioritize making seed
investments under this section to Program participants in underlicensed
States.
``(e) Investments in Certain Businesses.--
``(1) In general.--A Program participant that receives a
seed investment under this part shall make all of the
investments of the Program participant in small business
concerns, of which not less than 50 percent shall be in covered
small businesses.
``(2) Minority positions.--
``(A) In general.--On the date on which a Program
participant first accesses amounts from a seed
investment received under this Part, the Program
participant may not own or control not more than 50
percent of the shares of any small business concern in
which the Program participant invests.
``(B) Follow-on investments.--A Program participant
described in subparagraph (A) shall not pursue a buyout
strategy as a primary purpose of an investment in a
small business concern, but may take control in follow-
on investments if necessary for the success of any such
small business concern.
``(3) Evaluation of compliance.--The Administrator shall
evaluate the compliance of a Program participant with the
requirements under this section once the Program participant
has expended 75 percent of the amount of a seed investment made
under this part.
``(f) Seed Investment Interest.--
``(1) In general.--
``(A) In general.--Subject to paragraph (4), a
Program participant that receives a seed investment
under this part shall convey a seed investment interest
to the Administrator in accordance with subparagraph
(B).
``(B) Effect of conveyance.--
``(i) In general.--The seed investment
interest conveyed under paragraph (1) shall--
``(I) have all the rights and
attributes of other investors with
respect to the Program participant, but
shall not assign control or voting
rights to the Administrator; and
``(II) entitle the Administrator to
a pro rata portion of any distributions
made by the Program participant equal
to the percentage of capital in the
Program participant that the seed
investment comprises.
``(ii) Distributions.--The Administrator
shall receive distributions from a Program
participant under this paragraph at the same
times and in the same amounts as any other
investor in the Program participant with a
similar interest.
``(iii) Allocations.--A Program participant
shall make allocations of income, gain, loss,
deduction, and credit to the Administrator with
respect to a seed investment interest received
under this part as if the Administrator were an
investor.
``(2) Manager profits.--
``(A) In general.--The manager profits interest
payable to the managers of a Program participant shall
not exceed 20 percent of profits, exclusive of any
profits that may accrue as a result of the capital
contributions of any such managers with respect to the
Program participant.
``(B) Return of excess.--Any excess of the amount
described in subparagraph (A), less taxes payable
thereon, shall be returned by the managers and paid to
the investors and the Administrator in proportion to
the capital contributions and seed investments paid in.
``(C) Timing.--No manager profits interest (other
than a tax distribution) shall be paid prior to the
repayment to the investors and the Administrator of all
contributed capital and seed investments made.
``(D) Fees.--A manager of a Program participant may
charge reasonable and customary management and
organizational fees.
``(3) Distribution requirements.--A Program participant
that receives a seed investment under this part shall make all
distributions to all investors in cash and shall make
distributions within a reasonable time after exiting
investments, including following a public offering or market
sale of underlying investments.
``(4) Limitation on grant profits.--Once the Administrator
has received an amount equal to 110 percent of the amount of
the seed investment made to a Program participant, the
requirement to convey seed investment interest under this
subsection shall be terminated and no further distributions of
profits shall be made to the Administrator.
``SEC. 399E. ADMINISTRATION.
``(a) Electronic Submissions.--The Administrator shall permit the
electronic submission of any document submitted under this part or
pursuant to a regulation carrying out this part, including by
permitting an electronic signature for any signature that is required
on such a document.
``(b) Application of Penalties.--To the extent not inconsistent
with requirements under this part, the Administrator may take such
action as set forth in sections 309, 311, 312, 313, and 314 to
activities under this part and an officer, director, employee, agent,
or other participant in a micro-SBIC shall be subject to the
requirements under such sections.
``SEC. 399F. REPORT.
``The Administrator shall include in the annual report required
under section 10(a) of the Small Business Act a description of--
``(1) the number of applications received under this part,
including the number of applications received from applicants
for which the management consists of at least two socially
disadvantaged individuals or economically disadvantaged
individuals; and
``(2) the number of licenses issued under section 399A,
including the number of such licenses issued to applicants for
which the management consists of at least two socially
disadvantaged individuals or economically disadvantaged
individuals.
``SEC. 399G. DEFINITIONS.
``In this part:
``(1) Applicant.--The term `applicant' means--
``(A) an incorporated body, a limited liability
corporation, or a limited partnership organized and
chartered or otherwise existing under State law solely
for the purpose of performing the functions and
conducting the activities contemplated under this
section; or
``(B) a bank-owned applicant, rural business
investment company, or small business investment
company licensed under section 301 that submits an
application to operate as a micro-SBIC under section
399A.
``(2) Bank-owned applicant.--The term `bank-owned
applicant' means an applicant for a license to operate as a
small business investment company under this part that--
``(A) is a national bank or any member bank of the
Federal Reserve System or nonmember insured bank that
bears the same name as the small business investment
company that is the subject of the application;
``(B) is domestically domiciled within the United
States; and
``(C) has not had a license issued under this Act
revoked or involuntarily surrendered during the 10-year
period preceding the date on which the application is
submitted.
``(3) Covered small business.--The term `covered small
business' means a small business concern that--
``(A) is a small business concern owned and
controlled by women (as defined in section 3(n) of the
Small Business Act (15 U.S.C. 632(n))), small business
concern owned and controlled by socially and
economically disadvantaged individuals (as defined in
section 8(d)(3)(C) of such Act (15 U.S.C.
637(d)(3)(C))), a small business concern owned and
controlled by veterans (as defined in section 3(q) of
such Act (15 U.S.C. 632(q))) or a Tribal business
concern (as described in section 31(b)(2)(C) of such
Act (15 U.S.C. 657a(b)(2)(C)));
``(B) has its principal place of business located
in a rural census tract (as determined under the most
recent rural urban commuting area code as set forth by
the Office of Management and Budget);
``(C) is a domestic manufacturing business that is
assigned a North American Industry Classification
System code beginning with 31, 32, or 33 at the time at
which the small business concern receives an investment
from a micro-SBIC under this section; or
``(D) either--
``(i) had gross receipts during the first
or second quarter in 2020 that are not less
than 50 percent less than the gross receipts of
the concern during the same quarter in 2019;
``(ii) if the concern was not in business
during the first or second quarter of 2019, but
was in business during the third and fourth
quarter of 2019, had gross receipts during the
first or second quarter of 2020 that are less
than 50 percent of the amount of the gross
receipts of the concern during the third or
fourth quarter of 2019;
``(iii) if the concern was not in business
during the first, second, or third quarter of
2019, but was in business during the fourth
quarter of 2019, had gross receipts during the
first or second quarter of 2020 that are less
than 50 percent of the amount of the gross
receipts of the concern during the fourth
quarter of 2019; or
``(iv) if the concern was not in business
during 2019, but was in operation on February
15, 2020, had gross receipts during the second
quarter of 2020 that are less than 50 percent
of the amount of the gross receipts of the
concern during the first quarter of 2020.
``(4) Early-stage small business.--The term `early-stage
small business' means a small business concern that--
``(A) is domestically domiciled within the United
States;
``(B) during the 3-year period preceding the date
of application, has not generated gross annual sales
revenues exceeding $15,000,000;
``(C) produces a majority of its goods or provides
a majority of its services in the United States; and
``(D) does not move production or employment
outside the United States.
``(5) Economically disadvantaged individual; socially
disadvantaged individual.--The terms `economically
disadvantaged individual' and `socially disadvantaged
individual' have the meanings given those terms in section 8(a)
of the Small Business Act (15 U.S.C. 637(a)).
``(6) Growth-stage small business.--The term `growth-stage
small business' means a small business concern that--
``(A) is domestically domiciled within the United
States;
``(B) during the 3-year period preceding the date
of application, has not generated gross annual sales
revenues exceeding $30,000,000;
``(C) produces a majority of its good or provides a
majority of its services in the United States; and
``(D) does not move production or employment
outside the United States.
``(7) Management.--The term `management' means a general
partner of an applicant or member of the investment committee
of an applicant.
``(8) Micro-SBIC.--The term `micro-SBIC' means an applicant
licensed under section 399A.
``(9) Program participant.--The term `Program participant'
means a micro-SBIC that received a seed investment under the
Seed Investment Program established by section 399C.
``(10) Scale-up small business.--The term `scale-up small
business' means a small business concern that--
``(A) is domestically domiciled within the United
States;
``(B) during the 3-year period preceding the date
of application, has not generated earnings before
interest, tax, depreciation, and amortization in excess
of $3,000,000;
``(C) produces a majority of its goods or provides
a majority of its services in the United States; and
``(D) does not move production or employment
outside the United States.
``(11) Small business concern.--The term `small business
concern' has the meaning given the term in section 3(a) of the
Small Business Act (15 U.S.C. 632(a)).
``(12) Track record investment committee member.--The term
`track record investment committee member' means a current or
former small business investment company licensed under section
301, a private small- and lower-middle-market venture capital
firm, or a private equity fund manager with the knowledge,
experience, and capability necessary to serve as management for
an applicant.
``(13) United states.--The term `United States' means each
of the several States, the District of Columbia, each territory
or possession of the United States, and each federally
recognized Indian Tribe.
``SEC. 399H. FUNDING.
``(a) Authorization of Appropriations.--There is authorized to be
appropriated to the revolving fund established under subsection (b)
$1,000,000,000 for the first full fiscal year beginning after the date
of enactment of this part to carry out the requirements of this part.
``(b) Revolving Fund.--
``(1) In general.--There is created within the
Administration a separate revolving fund for the Seed
Investment Program established under section 399C, which shall
be available to the Administrator subject to annual
appropriations.
``(2) Deposits.--All amounts received by the Administrator,
including any money, property, or assets derived by the
Administrator from operations in connection with the Seed
Investment Program, including repayments of seed investments,
shall be deposited in the revolving fund described in paragraph
(1).
``(3) Expenses and payments.--All expenses and payments,
excluding administrative expenses, pursuant to the operations
of the Administrator under the Seed Investment Program shall be
paid from the revolving fund described in paragraph (1).''.
TITLE VI--MISCELLANEOUS
SEC. 601. REPEAL OF EIDL ADVANCE DEDUCTION.
Section 1110(e)(6) of the CARES Act (15 U.S.C. 9009(e)(6)) is
repealed.
SEC. 602. EXTENSION OF THE DEBT RELIEF PROGRAM.
(a) In General.--Section 1112 of the CARES Act (15 U.S.C. 9011) is
amended--
(1) in subsection (c)--
(A) in paragraph (1)--
(i) in the matter preceding subparagraph
(A), by inserting ``, without regard to the
date on which the covered loan is fully
disbursed and subject to availability of
funds'' after ``status'';
(ii) by amending subparagraphs (A) and (B)
to read as follows:
``(A) with respect to a covered loan approved by
the Administration before the date of enactment of this
Act and not on deferment--
``(i) except as provided in clauses (ii)
and (iii), for the 6-month period beginning
with the next payment due on the covered loan
after the covered loan is fully disbursed;
``(ii) for the 11-month period beginning
with the next payment due on the covered loan
after the covered loan is fully disbursed, with
respect to a covered loan that--
``(I) is described in subsection
(a)(1)(B) or is a loan guaranteed by
the Administration under section 7(a)
of the Small Business Act (15 U.S.C.
636(a)) other than a loan described in
clause (i) or (ii) of subsection
(a)(1)(A); and
``(II) is made to a borrower
operating primarily in an industry
other than an industry that is assigned
a North American Industry
Classification System code described in
item (aa) or (bb) of clause (iii)(II);
and
``(iii) for the 18-month period beginning
with the next payment due on the covered loan
after the covered loan is fully disbursed, with
respect to--
``(I) a covered loan described in
paragraph (1)(A)(i) or paragraph (2) of
subsection (a); or
``(II) any covered loan made to a
borrower operating primarily in an
industry that is assigned--
``(aa) a North American
Industry Classification System
code beginning with 61, 71, 72,
or 487; or
``(bb) the North American
Industry Classification System
Code 485510, 511110, 515112, or
515120;
``(B) with respect to a covered loan approved by
the Administration before the date of enactment of this
Act and on deferment--
``(i) except as provided in clauses (ii)
and (iii), for the 6-month period beginning
with the next payment due on the covered loan
after the deferment period and after the
covered loan is fully disbursed;
``(ii) for the 11-month period beginning
with the next payment due on the covered loan
after the deferment period and after the
covered loan is fully disbursed, with respect
to a covered loan described in subclause (I) or
(II) of subparagraph (A)(ii); and
``(iii) for the 18-month period beginning
with the next payment due on the covered loan
after the deferment period and after the
covered loan is fully disbursed, with respect
to a covered loan described in subclause (I) or
(II) of subparagraph (A)(iii); and''; and
(iii) in subparagraph (C)--
(I) by striking ``covered loan
made'' and inserting ``covered loan
approved by the Administration'';
(II) by striking ``6 months after''
and inserting ``18 months after'';
(III) by inserting ``(or, for a
covered loan made by an intermediary to
a small business concern using loans or
grants received under section 7(m) of
the Small Business Act (15 U.S.C.
636(m)) or guaranteed by the
Administration under the Community
Advantage Pilot Program of the
Administration, for the 12-month
period)'' after ``6-month period''; and
(IV) by inserting ``after the
covered loan is fully disbursed'' after
``due on the covered loan''; and
(B) by adding at the end the following:
``(4) Additional provisions for new loans.--With respect to
a loan described in paragraph (1)(C)--
``(A) the Administrator may further extend the 18-
month period described in paragraph (1)(C) if there are
sufficient funds to continue those payments; and
``(B) during the underwriting process, a lender of
such a loan may consider the payments under this
section as part of a comprehensive review to determine
the ability to repay over the entire period of maturity
of the loan.
``(5) Eligibility.--Eligibility for a covered loan to
receive such payments of principal, interest, and any
associated fees under this subsection shall be based on the
date on which the covered loan is approved by the
Administration.
``(6) Authority to revise extensions.--
``(A) In general.--As part of preparing the reports
under subsection (i)(5) that are required to be
submitted not later than January 15, 2021, and not
later than June 15, 2021, the Administrator conducts an
evaluation of whether amounts made available to make
payments under this subsection are sufficient to make
the payments for the period described in paragraph (1).
``(B) Plan.--If the Administrator determines under
subparagraph (A) that the amounts made available to
make payments under this subsection are insufficient,
the Administrator shall--
``(i) develop a plan to proportionally
reduce the number of months provided for each
period described in paragraph (1), while
ensuring all amounts made available to make
payments under this subsection are fully
expended; and
``(ii) before taking action under the plan
developed under clause (i), include in the
applicable report under subsection (i)(5) the
plan and the data that informs the plan.
``(7) Rule of construction.--Nothing in this subsection
shall preclude a borrower from receiving full payments of
principal, interest, and any associated fees as authorized by
subsection.'';
(2) by redesignating subsection (f) as subsection (k); and
(3) by inserting after subsection (e) the following:
``(f) Eligibility for New Loans.--For each individual lending
program under this section, the Administrator may establish a minimum
loan maturity period, taking into consideration the normal underwriting
requirements for each such program, with the goal of preventing abuse
under the program.
``(g) Limitation on Assistance.--A borrower may not receive
assistance under subsection (c) for more than 1 covered loan of the
borrower described in paragraph (1)(C) of that subsection.
``(h) Taxability.--For purposes of the Internal Revenue Code of
1986--
``(1) any payment made under subsection (c) shall be
treated as paid by the person on whose behalf such payment is
made,
``(2) no amount shall be included in the gross income of
the borrower by reason of a payment made under subsection (c),
and
``(3) no deduction shall be denied or reduced, no tax
attribute shall be reduced, and no basis increase shall be
denied, by reason of the exclusion from gross income provided
by paragraph (2).
``(i) Reporting and Outreach.--
``(1) Updated information.--
``(A) In general.--Not later than 7 days after the
date of enactment of the Heroes Small Business Lifeline
Act, the Administrator shall make publicly available
information regarding the modifications to the
assistance provided under this section under the
amendments made by such Act.
``(B) Guidance.--Not later than 14 days after the
date of enactment of the Heroes Small Business Lifeline
Act the Administrator shall issue guidance on
implementing the modifications to the assistance
provided under this section under the amendments made
by such Act.
``(2) Publication of list.--Not later than 14 days after
the date of enactment of the Heroes Small Business Lifeline
Act, the Administrator shall transmit to each lender of a
covered loan a list of each borrower of a covered loan that
includes the North American Industry Classification System code
assigned to the borrower, based on the records of the
Administration, to assist the lenders in identifying which
borrowers qualify for an extension of payments under subsection
(c).
``(3) Education and outreach.--The Administrator shall
provide education, outreach, and communication to lenders,
borrowers, district offices, and resource partners of the
Administration in order to ensure full and proper compliance
with this section, encourage broad participation with respect
to covered loans that have not yet been approved by the
Administrator, and help lenders transition borrowers from
subsidy payments under this section directly to a deferral when
suitable for the borrower.
``(4) Notification.--Not later than 30 days after the date
of enactment of the Heroes Small Business Lifeline Act, the
Administrator shall mail a letter to each borrower of a covered
loan that includes--
``(A) an overview of assistance provided under this
section;
``(B) the rights of the borrower to receive that
assistance;
``(C) how to seek recourse with the Administrator
or the lender of the covered loan if the borrower has
not received that assistance; and
``(D) the rights of the borrower to request a loan
deferral from a lender, and guidance on how to do
successfully transition directly to a loan deferral
once subsidy payments under this section are concluded.
``(5) Monthly reporting.--Not later than the 15th of each
month beginning after the date of enactment of the Heroes Small
Business Lifeline Act, the Administrator shall submit to
Congress a report on assistance provided under this section,
which shall include--
``(A) monthly and cumulative data on payments made
under this section as of the date of the report,
including a breakdown by--
``(i) the number of participating
borrowers;
``(ii) the volume of payments made for each
type of covered loan; and
``(iii) the volume of payments made for
covered loans made before the date of enactment
of this Act and loans made after such date of
enactment;
``(B) the names of any lenders of covered loans
that have not submitted information on the covered
loans to the Administrator during the preceding month;
and
``(C) an update on the education and outreach
activities of the Administration carried out under
paragraph (3).''.
(b) Effective Date.--The amendments made by this section shall
apply as if included in the enactment of section 1112 of the CARES Act
(15 U.S.C. 9011).
SEC. 603. MODIFICATIONS TO 7(A) LOAN PROGRAMS.
(a) 7(a) Loan Guarantees.--
(1) In general.--Section 7(a)(2)(A) of the Small Business
Act (15 U.S.C. 636(a)(2)(A)) is amended by striking ``), such
participation by the Administration shall be equal to'' and all
that follows through the period at the end and inserting ``or
the Community Advantage Pilot Program of the Administration),
such participation by the Administration shall be equal to 90
percent of the balance of the financing outstanding at the time
of disbursement of the loan.''.
(2) Prospective repeal.--Effective October 1, 2021, section
7(a)(2)(A) of the Small Business Act (15 U.S.C. 636(a)(2)(A)),
as amended by paragraph (1), is amended to read as follows:
``(A) In general.--Except as provided in
subparagraphs (B), (D), (E), and (F), in an agreement
to participate in a loan on a deferred basis under this
subsection (including a loan made under the Preferred
Lenders Program), such participation by the
Administration shall be equal to--
``(i) 75 percent of the balance of the
financing outstanding at the time of
disbursement of the loan, if such balance
exceeds $150,000; or
``(ii) 85 percent of the balance of the
financing outstanding at the time of
disbursement of the loan, if such balance is
less than or equal to $150,000.''.
(b) Express Loans.--
(1) Loan amount.--Section 1102(c)(2) of the CARES Act
(Public Law 116-36; 15 U.S.C. 636 note) is amended to read as
follows:
``(2) Prospective repeal.--Section 7(a)(31)(D) of the Small
Business Act (15 U.S.C. 636(a)(31)(D)) is amended--
``(A) by striking `$1,000,000' and inserting
`$500,000', effective during the period beginning on
January 1, 2021, and ending on September 30, 2021; and
``(B) by striking `$500,000' and inserting
`$350,000', effective October 1, 2021.''.
(2) Guarantee rates.--
(A) Temporary modification.--Section
7(a)(31)(A)(iv) of the Small Business Act (15 U.S.C.
636(a)(31)(A)(iv)) is amended by striking ``with a
guaranty rate of not more than 50 percent.'' and
inserting the following: ``with a guarantee rate--
``(I) for a loan in an amount less
than or equal to $350,000, of not more
than 75 percent; and
``(II) for a loan in an amount
greater than $350,000, of not more than
50 percent.''.
(B) Prospective repeal.--Effective October 1, 2021,
section 7(a)(31)(A)(iv) of the Small Business Act (15
U.S.C. 636(a)(31)(iv)), as amended by subparagraph (A),
is amended by striking ``guarantee rate'' and all that
follows through the period at the end and inserting
``guarantee rate of not more than 50 percent.''.
SEC. 604. FLEXIBILITY IN DEFERRAL OF PAYMENTS OF 7(A) LOANS.
Section 7(a)(7) of the Small Business Act (15 U.S.C. 636(a)(7)) is
amended--
(1) by striking ``The Administration'' and inserting ``(A)
In general.--The Administrator'';
(2) by inserting ``and interest'' after ``principal''; and
(3) by adding at the end the following new subparagraphs:
``(B) Deferral requirements.--With respect to a deferral
provided under this paragraph, the Administrator may allow
lenders under this subsection--
``(i) to provide full payment deferment relief
(including payment of principal and interest) for a
period of not more than 1 year; and
``(ii) to provide an additional deferment period if
the borrower provides documentation justifying such
additional deferment.
``(C) Secondary market.--If an investor declines to approve
a deferral or additional deferment requested by a lender under
subparagraph (B), the Administrator shall exercise the
authority to purchase the loan so that the borrower may receive
full payment deferment relief (including payment of principal
and interest) or an additional deferment as described in
subparagraph (B).''.
SEC. 605. RECOVERY ASSISTANCE UNDER THE MICROLOAN PROGRAM.
(a) Loans to Intermediaries.--
(1) In general.--Section 7(m) of the Small Business Act (15
U.S.C. 636(m)) is amended--
(A) in paragraph (3)(C)--
(i) by striking ``and $6,000,000'' and
inserting ``$10,000,000 (in the aggregate)'';
and
(ii) by inserting before the period at the
end the following: ``, and $4,500,000 in any of
those remaining years'';
(B) in paragraph (4)--
(i) in subparagraph (A), by striking
``subparagraph (C)'' each place that term
appears and inserting ``subparagraphs (C) and
(G)'';
(ii) in subparagraph (C), by amending
clause (i) to read as follows:
``(i) In general.--In addition to grants
made under subparagraph (A) or (G), each
intermediary shall be eligible to receive a
grant equal to 5 percent of the total
outstanding balance of loans made to the
intermediary under this subsection if--
``(I) the intermediary provides not
less than 25 percent of its loans to
small business concerns located in or
owned by 1 or more residents of an
economically distressed area; or
``(II) the intermediary has a
portfolio of loans made under this
subsection--
``(aa) that averages not
more than $10,000 during the
period of the intermediary's
participation in the program;
or
``(bb) of which not less
than 25 percent is serving
rural areas during the period
of the intermediary's
participation in the
program.''; and
(iii) by adding at the end the following:
``(G) Grant amounts based on appropriations.--In
any fiscal year in which the amount appropriated to
make grants under subparagraph (A) is sufficient to
provide to each intermediary that receives a loan under
paragraph (1)(B)(i) a grant of not less than 25 percent
of the total outstanding balance of loans made to the
intermediary under this subsection, the Administration
shall make a grant under subparagraph (A) to each
intermediary of not less than 25 percent and not more
than 30 percent of that total outstanding balance for
the intermediary.'';
(C) by striking paragraph (7) and inserting the
following:
``(7) Program funding for microloans.--Under the program
authorized by this subsection, the Administration may fund, on
a competitive basis, not more than 300 intermediaries.''; and
(D) in paragraph (11)--
(i) in subparagraph (C)(ii), by striking
all after the semicolon and inserting ``and'';
and
(ii) by striking all after subparagraph
(C), and inserting the following:
``(D) the term `economically distressed area', as
used in paragraph (4), means a county or equivalent
division of local government of a State in which the
small business concern is located, in which, according
to the most recent data available from the Bureau of
the Census, Department of Commerce, not less than 40
percent of residents have an annual income that is at
or below the poverty level.''.
(2) Prospective amendment.--Effective on October 1, 2021,
section 7(m)(3)(C) of the Small Business Act (15 U.S.C.
636(m)(3)(C)), as amended by paragraph (1)(A), is amended--
(A) by striking ``$10,000,000'' and by inserting
``$7,000,000''; and
(B) by striking ``$4,500,000'' and inserting
``$3,000,000''.
(b) Temporary Waiver of Technical Assistance Grants Matching
Requirements and Flexibility on Pre- and Post-Loan Assistance.--During
the period beginning on the date of enactment of this Act and ending on
September 30, 2021, the Administration shall waive--
(1) the requirement to contribute non-Federal funds under
section 7(m)(4)(B) of the Small Business Act (15 U.S.C.
636(m)(4)(B)); and
(2) the limitation on amounts allowed to be expended to
provide information and technical assistance under clause (i)
of section 7(m)(4)(E) of the Small Business Act (15 U.S.C.
636(m)(4)(E)) and enter into third-party contracts to provide
technical assistance under clause (ii) of such section
7(m)(4)(E).
(c) Temporary Duration of Loans to Borrowers.--
(1) In general.--During the period beginning on the date of
enactment of this Act and ending on September 30, 2021, the
duration of a loan made by an eligible intermediary under
section 7(m) of the Small Business Act (15 U.S.C. 636(m))--
(A) to an existing borrower may be extended to not
more than 8 years; and
(B) to a new borrower may be not more than 8 years.
(2) Reversion.--On and after October 1, 2021, the duration
of a loan made by an eligible intermediary to a borrower under
section 7(m) of the Small Business Act (15 U.S.C. 636(m)) shall
be 7 years or such other amount established by the
Administrator.
(d) Funding.--Section 20 of the Small Business Act (15 U.S.C. 631
note) is amended by adding at the end the following:
``(h) Microloan Program.--For each of fiscal years 2021 through
2025, the Administration is authorized to make--
``(1) $80,000,000 in technical assistance grants, as
provided in section 7(m); and
``(2) $110,000,000 in direct loans, as provided in section
7(m).''.
(e) Authorization of Appropriations.--In addition to amounts
provided under the Consolidated Appropriations Act, 2020 (Public Law
116-93) for the program established under section 7(m) of the Small
Business Act (15 U.S.C. 636(m)) and amounts provided for fiscal year
2021 for that program, there is authorized to be appropriated for
fiscal year 2021, to remain available until expended--
(1) $50,000,000 to provide technical assistance grants
under such section 7(m); and
(2) $7,000,000 to provide direct loans under such section
7(m).
SEC. 606. MAXIMUM LOAN AMOUNT FOR 504 LOANS.
(a) Permanent Increase for Small Manufacturers.--Section
502(2)(A)(iii) of the Small Business Investment Act of 1958 (15 U.S.C.
696(2)(A)(iii)) is amended by striking ``$5,500,000'' and inserting
``$6,500,000''.
(b) Low-Interest Refinancing Under the Local Development Business
Loan Program.--
(1) Repeal.--Section 521(a) of title V of division E of the
Consolidated Appropriations Act, 2016 (Public Law 114-113; 129
Stat. 2463; 15 U.S.C. 696 note) is repealed.
(2) Refinancing.--Section 502(7) of the Small Business
Investment Act of 1958 (15 U.S.C. 696) is amended--
(A) in subparagraph (B), in the matter preceding
clause (i), by striking ``50'' and inserting ``100'';
and
(B) by adding at the end the following:
``(C) Refinancing not involving expansions.--
``(i) Definitions.--In this subparagraph--
``(I) the term `borrower' means a
small business concern that submits an
application to a development company
for financing under this subparagraph;
``(II) the term `eligible fixed
asset' means tangible property relating
to which the Administrator may provide
financing under this section; and
``(III) the term `qualified debt'
means indebtedness that--
``(aa) was incurred not
less than 6 months before the
date of the application for
assistance under this
subparagraph;
``(bb) is a commercial
loan;
``(cc) the proceeds of
which were used to acquire an
eligible fixed asset;
``(dd) was incurred for the
benefit of the small business
concern; and
``(ee) is collateralized by
eligible fixed assets.
``(ii) Authority.--A project that does not
involve the expansion of a small business
concern may include the refinancing of
qualified debt if--
``(I) the amount of the financing
is not more than 90 percent of the
value of the collateral for the
financing, except that, if the
appraised value of the eligible fixed
assets serving as collateral for the
financing is less than the amount equal
to 125 percent of the amount of the
financing, the borrower may provide
additional cash or other collateral to
eliminate any deficiency;
``(II) the borrower has been in
operation for all of the 2-year period
ending on the date the loan application
is submitted; and
``(III) for a financing for which
the Administrator determines there will
be an additional cost attributable to
the refinancing of the qualified debt,
the borrower agrees to pay a fee in an
amount equal to the anticipated
additional cost.
``(iii) Financing for business expenses.--
``(I) Financing for business
expenses.--The Administrator may
provide financing to a borrower that
receives financing that includes a
refinancing of qualified debt under
clause (ii), in addition to the
refinancing under clause (ii), to be
used solely for the payment of business
expenses.
``(II) Application for financing.--
An application for financing under
subclause (I) shall include--
``(aa) a specific
description of the expenses for
which the additional financing
is requested; and
``(bb) an itemization of
the amount of each expense.
``(III) Condition on additional
financing.--A borrower may not use any
part of the financing under this clause
for non-business purposes.
``(iv) Loans based on jobs.--
``(I) Job creation and retention
goals.--
``(aa) In general.--The
Administrator may provide
financing under this
subparagraph for a borrower
that meets the job creation
goals under subsection (d) or
(e) of section 501.
``(bb) Alternate job
retention goal.--The
Administrator may provide
financing under this
subparagraph to a borrower that
does not meet the goals
described in item (aa) in an
amount that is not more than
the product obtained by
multiplying the number of
employees of the borrower by
$75,000.
``(II) Number of employees.--For
purposes of subclause (I), the number
of employees of a borrower is equal to
the sum of--
``(aa) the number of full-
time employees of the borrower
on the date on which the
borrower applies for a loan
under this subparagraph; and
``(bb) the product obtained
by multiplying--
``(AA) the number
of part-time employees
of the borrower on the
date on which the
borrower applies for a
loan under this
subparagraph, by
``(BB) the quotient
obtained by dividing
the average number of
hours each part time
employee of the
borrower works each
week by 40.
``(v) Total amount of loans.--The
Administrator may provide not more than a total
of $7,500,000,000 of financing under this
subparagraph for each fiscal year.''.
(c) Express Loan Authority for Accredited Lenders.--
(1) In general.--Section 507 of the Small Business
Investment Act of 1958 (15 U.S.C. 697d) is amended by striking
subsection (e) and inserting the following:
``(e) Express Loan Authority.--A local development company
designated as an accredited lender in accordance with subsection (b)--
``(1) may--
``(A) approve, authorize, close, and service
covered loans that are funded with proceeds of a
debenture issued by the company; and
``(B) authorize the guarantee of a debenture
described in subparagraph (A); and
``(2) with respect to a covered loan, shall be subject to
final approval as to eligibility of any guarantee by the
Administration pursuant to section 503(a), but such final
approval shall not include review of decisions by the lender
involving creditworthiness, loan closing, or compliance with
legal requirements imposed by law or regulation.
``(f) Definitions.--In this section--
``(1) the term `accredited lender certified company' means
a certified development company that meets the requirements
under section 507(b), including a certified development company
that the Administration has designated as an accredited lender
under such section 507(b);
``(2) the term `covered loan'--
``(A) means a loan made under subsection (a) in an
amount that is not more than $500,000; and
``(B) does not include a loan made to a borrower
that is a franchise that, or is in an industry that,
has a high rate of default, as annually determined by
the Administrator; and
``(3) the term `qualified State or local development
company' has the meaning given the term in section 503(e).''.
(2) Prospective repeal.--Effective on September 30, 2023,
section 507 of the Small Business Investment Act of 1958 (15
U.S.C. 697d), as amended by paragraph (1), is amended by
striking subsections (e) and (f) and inserting the following:
``(e) Definition.--In this section, the term `qualified State or
local development company' has the meaning given the term in section
503(e).''.
(d) Refinancing Senior Project Debt.--During the 1-year period
beginning on the date of enactment of this Act, a development company
described in title V of the Small Business Investment Act of 1958 (15
U.S.C. 695 et seq.) is authorized to allow the refinancing of a senior
loan on an existing project in an amount that, when combined with the
outstanding balance on the development company loan, is not more than
90 percent of the total loan to value. Proceeds of such refinancing can
be used to support business operating expenses.
SEC. 607. TEMPORARY FEE REDUCTIONS.
(a) Administrative Fee Waiver.--
(1) In general.--During the period beginning on the date of
enactment of this Act and ending on September 30, 2021, and to
the extent that the cost of such elimination or reduction of
fees is offset by appropriations, with respect to each loan
guaranteed under section 7(a) of the Small Business Act (15
U.S.C. 636(a)) (including a recipient of assistance under the
Community Advantage Pilot Program of the Administration) for
which an application is approved or pending approval on or
after the date of enactment of this Act, the Administrator
shall--
(A) in lieu of the fee otherwise applicable under
section 7(a)(23)(A) of the Small Business Act (15
U.S.C. 636(a)(23)(A)), collect no fee or reduce fees to
the maximum extent possible; and
(B) in lieu of the fee otherwise applicable under
section 7(a)(18)(A) of the Small Business Act (15
U.S.C. 636(a)(18)(A)), collect no fee or reduce fees to
the maximum extent possible.
(2) Application of fee eliminations or reductions.--To the
extent that amounts are made available to the Administrator for
the purpose of fee eliminations or reductions under paragraph
(1), the Administrator shall--
(A) first use any amounts provided to eliminate or
reduce fees paid by small business borrowers under
clauses (i) through (iii) of section 7(a)(18)(A) of the
Small Business Act (15 U.S.C. 636(a)(18)(A)), to the
maximum extent possible; and
(B) then use any amounts provided to eliminate or
reduce fees under 7(a)(23)(A) of the Small Business Act
(15 U.S.C. 636(a)(23)(A)).
(b) Temporary Fee Elimination for the 504 Loan Program.--
(1) In general.--During the period beginning on the date of
enactment of this Act and ending on September 30, 2021, and to
the extent the cost of such elimination in fees is offset by
appropriations, with respect to each project or loan guaranteed
by the Administrator pursuant to title V of the Small Business
Investment Act of 1958 (15 U.S.C. 695 et seq.) for which an
application is approved or pending approval on or after the
date of enactment of this Act--
(A) the Administrator shall, in lieu of the fee
otherwise applicable under section 503(d)(2) of the
Small Business Investment Act of 1958 (15 U.S.C.
697(d)(2)), collect no fee; and
(B) a development company shall, in lieu of the
processing fee under section 120.971(a)(1) of title 13,
Code of Federal Regulations (relating to fees paid by
borrowers), or any successor regulation, collect no
fee.
(2) Reimbursement for waived fees.--
(A) In general.--To the extent that the cost of
such payments is offset by appropriations, the
Administrator shall reimburse each development company
that does not collect a processing fee pursuant to
paragraph (1)(B).
(B) Amount.--The payment to a development company
under subparagraph (A) shall be in an amount equal to
1.5 percent of the net debenture proceeds for which the
development company does not collect a processing fee
pursuant to paragraph (1)(B).
SEC. 608. EXTENSION OF PARTICIPATION IN 8(A) PROGRAM.
(a) In General.--The Administrator shall ensure that a small
business concern (as defined in section 3 of the Small Business Act (15
U.S.C. 632) participating in the program established under section 8(a)
of the Small Business Act (15 U.S.C. 637(a)) on or before September 9,
2020, may elect to extend such participation by a period of 1 year,
regardless of whether the small business concern previously elected to
suspend participation in the program pursuant to guidance of the
Administrator.
(b) Emergency Rulemaking Authority.--Not later than 15 days after
the date of enactment of this section, the Administrator shall issue
regulations to carry out this section without regard to the notice
requirements under section 553(b) of title 5, United States Code.
SEC. 609. REPORT ON MINORITY, WOMEN, AND RURAL LENDING.
Not later than 90 days after the date of the enactment of this Act,
the Administrator shall submit to the Committee on Small Business and
Entrepreneurship of the Senate and the Committee on Small Business of
the House of Representatives a report to determine and quantify the
extent to which the programs established under subsections (a) and (m)
of section 7 of the Small Business Act (15 U.S.C. 636), titles III and
V of the Small Business Investment Act of 1958 (15 U.S.C. 681 et seq.,
695 et seq.), and the Community Advantage Pilot Program of the Small
Business Administration have assisted in the establishment,
development, and performance of small business concerns owned and
controlled by socially and economically disadvantaged individuals (as
defined in section 8(d)(3)(C) of the Small Business Act (15 U.S.C.
637(d)(3)(C))), small business concerns owned and controlled by women
(as defined in section 3 of such Act (15 U.S.C. 632)), and rural small
businesses, including recommendations to improve such access to capital
programs.
SEC. 610. COMPREHENSIVE PROGRAM GUIDANCE.
Not later than 7 days after the date of enactment of this Act, the
Administrator shall--
(1) establish a process for accepting applications for loan
forgiveness under section 1106 of the CARES Act (15 U.S.C.
9005);
(2) issue a comprehensive compilation of rules and guidance
issued related to loans made under section 7(a)(36) of the
Small Business Act (15 U.S.C. 636(a)(36)); and
(3) to the maximum extent practicable, before accepting
applications for supplemental covered loans under clause (ii)
of section 7(a)(36)(B) of the Small Business Act (15 U.S.C.
636(a)(36)(B)), as added by section 202 of this Act, the
Administrator shall issue comprehensive rules and guidance to
ensure that borrowers and lenders are aware of eligibility and
terms of receiving a supplemental covered loan and the process
for forgiveness of a supplemental covered loan.
SEC. 611. REPORTS ON PAYCHECK PROTECTION PROGRAM.
(a) Report to Congress.--Not later than 30 days after the date of
enactment of this Act, and every 30 days thereafter until the end of
the covered period described in section 7(a)(36)(A) of the Small
Business Act (15 U.S.C. 636(a)(36)(A)), the Secretary of the Treasury
and the Administrator shall submit to the Committee on Small Business
and Entrepreneurship of the Senate and the Committee on Small Business
of the House of Representatives a report, in a searchable digital
format, that includes, with respect to each loan made under such
section 7(a)(36)--
(1) the business name, address, and ZIP Code of each
recipient of the loan;
(2) the North American Industry Classification System code
and the type of entity of each such recipient;
(3) demographic data of each such recipient;
(4) the number of jobs supported by the loan;
(5) loan forgiveness data; and
(6) the amount and origination date of the loan.
(b) Publicly Available Report.--
(1) Larger covered loans.--Not later than 30 days after the
date of enactment of this Act, and every 30 days thereafter
until the end of the covered period described in section
7(a)(36)(A) of the Small Business Act (15 U.S.C.
636(a)(36)(A)), for each loan made under such section 7(a)(36)
in an amount greater than or equal to $150,000, the Secretary
of the Treasury and the Administrator shall make publicly
available the following:
(A) The information described in paragraphs (1)
through (4) of subsection (a).
(B) The loan size range, of those listed below, to
which the loan belongs:
(i) Not less than $150,000 and less than
$350,000.
(ii) Not less than $350,000 and less than
$1,000,000.
(iii) Not less than $1,000,000 and less
than $2,000,000.
(iv) Not less than $2,000,000 and less than
$5,000,000.
(v) Not less than $5,000,000 and less than
$10,000,000.
(2) Smaller covered loans.--Not later than 30 days after
the date of enactment of this Act, and every 30 days thereafter
until the end of the covered period described in section
7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36)), for
loans made under such section 7(a)(36) in an amount less than
$150,000, the Secretary of the Treasury and the Administrator
shall make publicly available the total number of loans made
and the amount of each loan, disaggregated by ZIP Code of each
recipient, industry of each recipient, business type of each
recipient, and demographic categories of each recipient.
(3) Publication.--Information provided under paragraphs (1)
and (2) shall be made publicly available in a searchable
digital format on websites of the Department of the Treasury
and the Administration.
SEC. 612. PROHIBITING CONFLICTS OF INTEREST FOR SMALL BUSINESS PROGRAMS
UNDER THE CARES ACT.
Section 4019 of the CARES Act (15 U.S.C. 9054) is amended--
(1) in subsection (a), by adding at the end the following:
``(7) Small business assistance.--The term `small business
assistance' means assistance provided under--
``(A) section 7(a)(36) of the Small Business Act
(15 U.S.C. 636(a)(36));
``(B) subsection (b) or (c) of section 1103 of this
Act;
``(C) section 1110 of this Act; or
``(D) section 1112 of this Act.'';
(2) in subsection (b)--
(A) by inserting ``or provisions relating to small
business assistance'' after ``this subtitle''; and
(B) by inserting ``or for any small business
assistance'' before the period at the end; and
(3) in subsection (c)--
(A) by inserting ``or seeking any small business
assistance'' after ``section 4003'';
(B) by inserting ``or small business assistance''
after ``that transaction'';
(C) by inserting ``or the Administrator of the
Small Business Administration, as applicable,'' after
``Federal Reserve System''; and
(D) by inserting ``or to receive the small business
assistance'' after ``in that transaction''.
SEC. 613. INCLUSION OF SCORE AND VETERAN BUSINESS OUTREACH CENTERS IN
ENTREPRENEURIAL DEVELOPMENT PROGRAMS.
(a) In General.--Section 1103(a)(2) of the CARES Act (15 U.S.C.
9002(a)(2)) is amended--
(1) in subparagraph (A), by striking ``and'' at the end;
and
(2) by adding at the end the following:
``(C) a Veteran Business Outreach Center (as
described in section 32(d) of the Small Business Act
(15 U.S.C. 657b(d))); and
``(D) the Service Corps of Retired Executives
Association, or any successor or other organization,
that receives a grant from the Administrator to operate
the SCORE program established under section 8(b)(1)(B)
of the Small Business Act (15 U.S.C. 637(b)(1)(B));''.
(b) Funding.--Section 1107(a)(4) of the CARES Act (15 U.S.C.
9006(a)(4)) is amended--
(1) in subparagraph (A)--
(A) by striking ``$240,000,000'' and inserting
``$220,000,000''; and
(B) by striking ``and'' at the end; and
(2) by adding at the end the following:
``(C) $10,000,000 shall be for a Veteran Business
Outreach Center described in section 1103(a)(2)(C) of
this Act to carry out activities under such section;
and
``(D) $10,000,000 shall be for the Service Corps of
Retired Executives Association described in section
1103(a)(2)(D) of this Act to carry out activities under
such section;''.
SEC. 614. CLARIFICATION OF USE OF CARES ACT FUNDS FOR SMALL BUSINESS
DEVELOPMENT CENTERS.
Section 1103(b)(3)(A) of the CARES Act (15 U.S.C. 9002(b)(3)(A)) is
amended by adding at the end the following: ``Funds awarded under this
paragraph shall be in addition to any amounts appropriated for grants
under section 21(a) of the Small Business Act (15 U.S.C. 648(a)), and
may be used to complement and support those appropriated program grants
to assist covered small business concerns, with prioritization of such
concerns affected directly or indirectly by COVID-19 as described in
paragraph (2).''.
SEC. 615. FUNDING FOR THE OFFICE OF INSPECTOR GENERAL OF THE SMALL
BUSINESS ADMINISTRATION.
Section 1107(a)(3) of the CARES Act (15 U.S.C. 9006(a)(3)) is
amended by striking ``September 30, 2024'' and inserting ``expended''.
SEC. 616. EXTENSION OF WAIVER OF MATCHING FUNDS REQUIREMENT UNDER THE
WOMEN'S BUSINESS CENTER PROGRAM.
Section 1105 of the CARES Act (15 U.S.C. 9004) is amended by
striking ``During the 3-month period beginning on the date of enactment
of this Act,'' and inserting ``Until December 31, 2020,''.
SEC. 617. ACCESS TO SMALL BUSINESS ADMINISTRATION INFORMATION AND
DATABASES.
Section 19010 of division B of the CARES Act (Public Law 116-136)
is amended--
(1) by redesignating subsection (e) as subsection (f); and
(2) by inserting after subsection (d) the following:
``(e) Small Business Administration Databases.--
``(1) In general.--In conducting monitoring and oversight
under this section, the Comptroller General, upon notice to the
Administrator of the Small Business Administration, shall have
direct access to all information collected or produced in
connection with the administration of programs or provision of
assistance carried out by the Administrator, including direct
access to any information technology systems maintained or
utilized by the Administrator to collect, process, or analyze
documents or information submitted by borrowers, lenders, or
others in connection with any such program or provision of
assistance.
``(2) Information technology systems.--The Administrator of
the Small Business Administration shall appropriately identify
and classify any sensitive information contained in an
information technology system accessed by the Comptroller
General.
``(3) Definition of direct access.--In this subsection, the
term `direct access' means secured access to the information
technology systems maintained by the Administrator that would
enable the Comptroller General to independently access, view,
download, and retrieve data from such systems.''.
SEC. 618. SMALL BUSINESS LOCAL RELIEF PROGRAM.
(a) Establishment.--There is established in the Department of the
Treasury a Small Business Local Relief Program 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.
(b) Funding.--
(1) Funding to states, localities, and indian tribes.--
(A) In general.--The Secretary shall allocate--
(i) $10,250,000,000 to States and units of
general local government in accordance with
subparagraph (B)(i);
(ii) $4,250,000,000 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 described in
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 such Act (42
U.S.C. 5306(d)(1)).
(ii) Rural bonus formula for states.--The
Secretary shall allocate the amount described
in subparagraph (A)(ii) to States, for use in
nonentitlement areas, in accordance with the
formula under section 106(d)(1) of such Act (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 described
in 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 such 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, or Indian Tribe that receives an allocation
under paragraph (1), or an entity designated by a unit
of general local government under paragraph
(1)(C)(ii)(I)(aa), whether directly or indirectly, may
use such allocation, not later than 60 days after
receipt of the 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, or Indian Tribe, or an entity designated by
a unit of general local government under paragraph
(1)(C)(ii)(I)(aa), 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 under paragraph (1)(C)(ii)(I)(aa), 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, and Indian Tribes that receive
amounts under paragraph (1) and are located in
the same region should collaborate in
establishing and administering one or more
small business emergency funds.
(c) Small Business Emergency Funds.--With respect to a small
business emergency fund that receives funds from an allocation made
under subsection (b)--
(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 (g); 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) 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.
(d) Information Gathering.--
(1) In general.--When providing assistance to an eligible
entity with funds received from an allocation made under
subsection (b), the State, unit of general local government, or
Indian Tribe, or the entity designated by a State, unit of
general local government, or Indian Tribe, that provides
assistance through a small business emergency fund 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).
(e) 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
(b), 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 (d), 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 all information contained in the report
publicly available.
(f) 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 (e).
(g) Termination.--The Program, and any rules and guidance issued
under subsection (f) with respect to the Program, shall terminate on
the date that is 1 year after the date of enactment of this Act.
(h) Definitions.--In this section:
(1) Eligible entity.--The term ``eligible entity''--
(A) means a business concern or a covered nonprofit
organization (as defined in section 7(a)(36)(A)(vii) of
the Small Business Act (15 U.S.C. 636(a)(36)(A)(vii)))
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.
(2) 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)).
(3) 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).
(4) 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.
(5) 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).
(6) 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.
(7) 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).
(8) 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.
(9) 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 (b)(1), the term ``State''
means any State of the United States.
(10) Program.--The term ``Program'' means the Small
Business Local Relief Program established under this section.
(11) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury.
(12) 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.
(13) 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.
SEC. 619. GRANTS FOR SHUTTERED VENUE OPERATORS.
(a) Definitions.--In this section:
(1) Eligible live venue operator or promoter, theatrical
producer, motion picture theatre operator, or talent
representative.--
(A) In general.--The term ``eligible live venue
operator or promoter, theatrical producer, motion
picture theatre operator, or talent representative''
means a live venue operator or promoter or theatrical
producer, a motion picture theatre operator, or a
talent representative that meets the following
requirements:
(i) The live venue operator or promoter or
theatrical producer, the motion picture theatre
operator, or the talent representative was
fully operational as a live venue operator or
promoter or theatrical producer, motion picture
theatre operator, or talent representative on
February 29, 2020.
(ii) As of the date of the grant under this
section--
(I) the live venue operator or
promoter or theatrical producer is
organizing, promoting, producing,
managing, or hosting future live events
described in paragraph (3)(A)(i);
(II) the motion picture theatre
operator is open or intends to reopen
for the primary purpose of public
exhibition of motion pictures; or
(III) the talent representative is
representing or managing artists and
entertainers.
(iii) The venues at which the live venue
operator or promoter or theatrical producer
promotes, produces, manages, or hosts events
described in paragraph (3)(A)(i) or the artists
and entertainers represented or managed by the
talent representative perform have the
following characteristics:
(I) A defined performance and
audience space.
(II) Mixing equipment, a public
address system, and a lighting rig.
(III) Engages 1 or more individuals
to carry out not less than 2 of the
following roles:
(aa) A sound engineer.
(bb) A booker.
(cc) A promoter.
(dd) A stage manager.
(ee) Security personnel.
(ff) A box office manager.
(IV) There is a paid ticket or
cover charge to attend most
performances and artists are paid
fairly and do not play for free or
solely for tips, except for fundraisers
or similar charitable events.
(V) For a venue owned or operated
by a nonprofit entity that produces
free events, the events are produced
and managed by paid employees, not by
volunteers.
(VI) Performances are marketed
through listings in printed or
electronic publications, on websites,
by mass email, or on social media.
(iv) A motion picture theatre or motion
picture theatres operated by the motion picture
theatre operator have the following
characteristics:
(I) At least 1 auditorium that
includes a motion picture screen and
fixed audience seating.
(II) A projection booth or space
containing not less than 1 motion
picture projector.
(III) A paid ticket charge to
attend exhibition of motion pictures.
(IV) Motion picture exhibitions are
marketed through showtime listings in
printed or electronic publications, on
websites, by mass mail, or on social
media.
(v) The live venue operator or promoter or
theatrical producer, the motion picture theatre
operator, or the talent representative does not
have, or is not majority owned or controlled by
an entity with, more than 1 of the following
characteristics:
(I) Being an issuer, the securities
of which are listed on a national
securities exchange.
(II) Owning or operating venues,
motion picture theatres, or talent
agencies or talent management companies
with offices in more than 1 country.
(III) Owning or operating venues or
motion picture theatres in more than 10
States.
(IV) Employing more than 500
employees, determined on a full-time
equivalent basis in accordance with
subparagraph (B).
(V) Receiving more than 10 percent
of gross revenue from Federal funding.
(B) Calculation of full-time employees.--For
purposes of determining the number of full-time
equivalent employees under subparagraph (A)(v)(IV)--
(i) any employee working not fewer than 30
hours per week shall be considered a full-time
employee; and
(ii) any employee working not fewer than 10
hours and fewer than 30 hours per week shall be
counted as one-half of a full-time employee.
(C) Multiple business entities.--Each business
entity of an eligible live venue operator or promoter,
theatrical producer, motion picture theatre operator,
or talent representative that also meets the
requirements under subparagraph (A) shall be treated by
the Administrator as an independent, non-affiliated
entity for the purposes of this section.
(2) Exchange; issuer; security.--The terms ``exchange'',
``issuer'', and ``security'' have the meanings given those
terms in section 3(a) of the Securities Exchange Act of 1934
(15 U.S.C. 78c(a)).
(3) Live venue operator or promoter or theatrical
producer.--The term ``live venue operator or promoter or
theatrical producer''--
(A) means--
(i) an individual or entity--
(I) that, as a principal business
activity, organizes, promotes,
produces, manages, or hosts live
concerts, comedy shows, theatrical
productions, or other events by
performing artists for which--
(aa) a cover charge through
ticketing or front door
entrance fee is applied; and
(bb) performers are paid in
an amount that is based on a
percentage of sales, a
guarantee (in writing or
standard contract), or another
mutually beneficial formal
agreement; and
(II) for which not less than 70
percent of the earned revenue of the
individual or entity is generated
through, to the extent related to a
live event described in subclause (I),
cover charges or ticket sales,
production fees or production
reimbursements, nonprofit educational
initiatives, or the sale of event
beverages, food, or merchandise; or
(ii) an individual or entity that, as a
principal business activity, makes available
for purchase by the public an average of not
less than 60 days before the date of the event
tickets to events--
(I) described in clause (i)(I); and
(II) for which performers are paid
in an amount that is based on a
percentage of sales, a guarantee (in
writing or standard contract), or
another mutually beneficial formal
agreement; and
(B) includes an individual or entity described in
subparagraph (A) that--
(i) operates for profit or as a nonprofit;
(ii) is government-owned; or
(iii) is a corporation, limited liability
company, or partnership or operated as a sole
proprietorship.
(4) Motion picture theatre operator.--The term ``motion
picture theatre operator'' means an individual or entity that--
(A) as the principal business activity of the
individual or entity, owns or operates at least 1 place
of public accommodation for the purpose of motion
picture exhibition for a fee; and
(B) includes an individual or entity described in
subparagraph (A) that--
(i) operates for profit or as a nonprofit;
(ii) is government-owned; or
(iii) is a corporation, limited liability
company, or partnership or operated as a sole
proprietorship.
(5) National securities exchange.--The term ``national
securities exchange'' means an exchange registered as a
national securities exchange under section 6 of the Securities
Exchange Act of 1934 (15 U.S.C. 78f).
(6) State.--The term ``State'' means--
(A) a State;
(B) the District of Columbia;
(C) the Commonwealth of Puerto Rico; and
(D) any other territory or possession of the United
States.
(7) Talent representative.--The term ``talent
representative''--
(A) means an agent or manager that--
(i) as not less than 70 percent of the
operations of the agent or manager, is engaged
in representing or managing artists and
entertainers;
(ii) books or represents musicians,
comedians, actors, or similar performing
artists primarily at live events in venues or
at festivals; and
(iii) represents performers described in
clause (ii) that are paid in an amount that is
based on the number of tickets sold, or a
similar basis; and
(B) includes an agent or manager described in
subparagraph (A) that--
(i) operates for profit or as a nonprofit;
(ii) is government-owned; or
(iii) is a corporation, limited liability
company, or partnership or operated as a sole
proprietorship.
(b) Authority.--
(1) Initial grants.--
(A) In general.--The Administrator may make initial
grants to eligible live venue operators or promoters,
theatrical producers, motion picture theatre operators,
or talent representatives in accordance with this
section.
(B) First priority in awarding grants.--During the
initial 14-day period during which the Administrator
awards grants under this section, the Administrator
shall only award grants to an eligible live venue
operator or promoter, theatrical producer, motion
picture theatre operator, or talent representative with
revenue, during the calendar quarter during which the
Administrator begins awarding such grants, that is not
more than 10 percent of the revenue of the eligible
live venue operator or promoter, theatrical producer,
motion picture theatre operator, or talent
representative during the corresponding calendar
quarter during 2019 due to the COVID-19 pandemic.
(C) Second priority in awarding grants.--During the
14-day period immediately following the 14-day period
described in subparagraph (B), the Administrator shall
only award grants to an eligible live venue operator or
promoter, theatrical producer, motion picture theatre
operator, or talent representative with revenue, during
the calendar quarter during which the Administrator
begins awarding such grants, that is not more than 30
percent of the revenue of the eligible live venue
operator or promoter, theatrical producer, motion
picture theatre operator, or talent representative
during the corresponding calendar quarter during 2019
due to the COVID-19 pandemic.
(2) Supplemental grants.--The Administrator may make a
supplemental grant in accordance with this section to an
eligible live venue operator or promoter, theatrical producer,
motion picture theatre operator, or talent representative that
receives a grant under paragraph (1) if, as of December 1,
2020, the revenues of the eligible live venue operator or
promoter, theatrical producer, motion picture theatre operator,
or talent representative for the most recent calendar quarter
are not more than 20 percent of the revenues of the eligible
live venue operator or promoter, theatrical producer, motion
picture theatre operator, or talent representative for the
corresponding calendar quarter during 2019 due to the COVID-19
pandemic.
(3) Certification.--An eligible live venue operator or
promoter, theatrical producer, motion picture theatre operator,
or talent representative applying for a grant under this
section that is an eligible business described in the matter
preceding subclause (I) of section 4003(c)(3)(D)(i) of the
CARES Act (15 U.S.C. 9042(c)(3)(D)(i)), shall make a good-faith
certification described in subclauses (IX) and (X) of such
section.
(c) Amount.--
(1) Initial grants.--A grant under subsection (b)(1) shall
be in the amount equal to the lesser of--
(A) the amount equal to 45 percent of the gross
earned revenue of the eligible live venue operator or
promoter, theatrical producer, motion picture theatre
operator, or talent representative during 2019;
(B) for an eligible live venue operator or
promoter, theatrical producer, motion picture theatre
operator, or talent representative that began
operations after January 1, 2019, the amount equal to
the product obtained by multiplying--
(i) the average monthly gross earned
revenue for each full month during which the
entity was in operation during 2019; by
(ii) 6; or
(C) $12,000,000.
(2) Supplemental grants.--A grant under subsection (b)(2)
shall be in the amount equal to 50 percent of the grant
received by the eligible live venue operator or promoter,
theatrical producer, motion picture theatre operator, or talent
representative under subsection (b)(1).
(d) Use of Funds.--
(1) Timing.--
(A) Expenses incurred.--
(i) In general.--Except as provided in
clause (ii), amounts received under a grant
under this section may be used for costs
incurred during the period beginning on March
1, 2020, and ending on December 31, 2021.
(ii) Extension for supplemental grants.--If
an eligible live venue operator or promoter,
theatrical producer, motion picture theatre
operator, or talent representative receives a
grant under subsection (b)(2), amounts received
under either grant under this section may be
used for costs incurred during the period
beginning on March 1, 2020, and ending on June
30, 2022.
(B) Expenditure.--
(i) In general.--Except as provided in
clause (ii), an eligible live venue operator or
promoter, theatrical producer, motion picture
theatre operator, or talent representative
shall return to the Administrator any amounts
received under a grant under this section that
are not expended on or before the date that is
1 year after the date of disbursement of the
grant.
(ii) Extension for supplemental grants.--If
an eligible live venue operator or promoter,
theatrical producer, motion picture theatre
operator, or talent representative receives a
grant under subsection (b)(2), the eligible
live venue operator or promoter, theatrical
producer, motion picture theatre operator, or
talent representative shall return to the
Administrator any amounts received under either
grant under this section that are not expended
on or before the date that is 18 months after
the date of disbursement to the eligible live
venue operator or promoter, theatrical
producer, motion picture theatre operator, or
talent representative of the grant under
subsection (b)(1).
(2) Allowable expenses.--An eligible live venue operator or
promoter, theatrical producer, motion picture theatre operator,
or talent representative may use amounts received under a grant
under this section for--
(A) payroll costs for employees and furloughed
employees, including--
(i) costs for continuation coverage
provided pursuant to part 6 of subtitle B of
title I of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1161 et seq.)
(other than under section 609 of such Act (29
U.S.C. 1169)), title XXII of the Public Health
Service Act (42 U.S.C. 300bb-1 et seq.),
section 4980B of the Internal Revenue Code of
1986 (other than subsection (f)(1) of such
section insofar as it relates to pediatric
vaccines), or section 8905a of title 5, United
States Code, or under a State program that
provides comparable continuation coverage,
other than coverage under a health flexible
spending arrangement under a cafeteria plan
within the meaning of section 125 of the
Internal Revenue Code of 1986; or
(ii) any other non-cash benefit;
(B) rent;
(C) utilities;
(D) mortgage interest payments on existing
mortgages as of February 15, 2020;
(E) scheduled interest payments on other scheduled
debt as of February 15, 2020;
(F) costs related to personal protective equipment;
(G) payments of principal on outstanding loans;
(H) payments made to independent contractors, as
reported on Form-1099 MISC; and
(I) other ordinary and necessary business expenses,
including--
(i) settling existing debts owed to
vendors;
(ii) maintenance expenses;
(iii) administrative costs;
(iv) taxes;
(v) operating leases;
(vi) insurance;
(vii) advertising, production
transportation, and capital expenditures
related to producing a theatrical production,
concert, or comedy show; and
(viii) any other capital expenditure or
expense required under any State, local, or
Federal law or guideline related to social
distancing.
(3) Prohibited expenses.--An eligible live venue operator
or promoter, theatrical producer, motion picture theatre
operator, or talent representative may not use amounts received
under a grant under this section--
(A) to purchase real estate;
(B) for payments of interest or principal on loans
originated after February 15, 2020;
(C) to invest or re-lend funds;
(D) for contributions or expenditures to, or on
behalf of, any political party, party committee, or
candidate for elective office; or
(E) for any other use as may be prohibited by the
Administrator.
SEC. 620. SUPPORT FOR RESTAURANTS.
(a) Short Title.--This section may be cited as the ``Real Economic
Support That Acknowledges Unique Restaurant Assistance Needed To
Survive Act of 2020'' or the ``RESTAURANTS Act of 2020''.
(b) Definitions.--In this section:
(1) Affiliated business.--The term ``affiliated business''
means a business in which an eligible entity has an equity or
right to profit distributions of not less than 50 percent, or
in which an eligible entity has the contractual authority to
control the direction of the business, provided that such
affiliation shall be determined as of any arrangements or
agreements in existence, as of March 13, 2020.
(2) Covered period.--The term ``covered period'' means the
period beginning on February 15, 2020, and ending on June 30,
2021.
(3) Eligible entity.--The term ``eligible entity''--
(A) means a restaurant, food stand, food truck,
food cart, caterer, saloon, inn, tavern, bar, lounge,
brewpub, tasting room, taproom, licensed facility, or
premise of a beverage alcohol producer where the public
may taste, sample, or purchase products, or other
similar place of business--
(i) in which the public or patrons assemble
for the primary purpose of being served food or
drink; and
(ii) that, as of March 13, 2020, owns or
operates (together with any affiliated
business) not more than 20 locations,
regardless of whether those locations do
business under the same or multiple names;
(B) means an entity that is located in an airport
terminal and that, as of March 13, 2020, sold any food
and beverage, if, as of March 13, 2020, the entity owns
or operates (together with any affiliated business) not
more than 20 locations, regardless of whether those
locations do business under the same or multiple names;
and
(C) does not include an entity described in
subparagraph (A) or (B) that is part of a State or
local government facility, not including an airport.
(4) Fund.--The term ``Fund'' means the Restaurant
Revitalization Fund established under subsection (c).
(5) Immediate family member.--With respect to an
individual, the term ``immediate family member'' means any
parent or child of the individual.
(6) Payroll costs.--The term ``payroll costs'' 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)).
(7) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury.
(c) Establishment of a Restaurant Revitalization Fund.--
(1) In general.--There is established in the Treasury of
the United States a fund to be known as the Restaurant
Revitalization Fund.
(2) Appropriations.--
(A) In general.--There is appropriated to the Fund,
out of amounts in the Treasury not otherwise
appropriated, $120,000,000,000, to remain available
until June 30, 2021.
(B) Remainder to treasury.--Any amounts remaining
in the Fund after June 30, 2021, shall be deposited in
the general fund of the Treasury.
(3) Use of funds.--The Secretary shall use amounts in the
Fund to make grants described in section subsection (d).
(d) Restaurant Revitalization Grants.--
(1) In general.--The Secretary shall award grants to
eligible entities in the order in which the application is
received by the Secretary.
(2) Registration.--The Secretary shall register each grant
awarded under this subsection using the employer identification
number of the eligible entity.
(3) Application.--
(A) In general.--An eligible entity desiring a
grant under this subsection shall submit to the
Secretary an application at such time, in such manner,
and containing such information as the Secretary may
require.
(B) Certification.--An eligible entity applying for
a grant under this subsection shall make a good faith
certification--
(i) that the uncertainty of current
economic conditions makes necessary the grant
request to support the ongoing operations of
the eligible entity;
(ii) acknowledging that funds will be used
to retain workers, for payroll costs, and for
other allowable expenses described in paragraph
(6) and not for any other purposes;
(iii) that the eligible entity does not
have an application pending for a grant under
subsection (a)(36) or (b)(2) of section 7 of
the Small Business Act (15 U.S.C. 636) for the
same purpose and that is duplicative of amounts
applied for or received under this section; and
(iv) during the covered period, that the
eligible entity has not received amounts under
subsection (a)(36) or (b)(2) of section 7 of
the Small Business Act (15 U.S.C. 636) for the
same purpose and that is duplicative of amounts
applied for or received under this section.
(C) Hold harmless.--An eligible entity applying for
a grant under this subsection shall not be ineligible
for a grant if the eligible entity is able to
document--
(i) an inability to rehire individuals who
were employees of the eligible entity on
February 15, 2020; and
(ii) an inability to hire similarly
qualified employees for unfilled positions on
or before June 30, 2021.
(4) Priority in awarding grants.--During the initial 14-day
period in which the Secretary awards grants under this
subsection, the Secretary shall--
(A) prioritize awarding grants to marginalized and
underrepresented communities, with a focus on women-,
veteran-, and minority-owned, and women-, veteran-, and
minority-operated eligible entities; and
(B) only award grants to eligible entities with
annual revenues of less than $1,500,000.
(5) Grant amount.--
(A) Determination of grant amount.--
(i) In general.--The amount of a grant made
to an eligible entity under this subsection
shall be equal to--
(I) the sum of the revenues or
estimated revenues of the eligible
entity during each calendar quarter in
2020 subtracted from the sum of such
revenues during the same calendar
quarter in 2019, if such sum is greater
than zero; and
(II) if applicable, the additional
amount required to pay for sick leave
described under clause (ii).
(ii) Sick leave.--An eligible entity
applying for a grant under this section--
(I) may request an additional grant
amount based on the amount required to
provide 10 days of paid sick leave to
each employee of the entity to--
(aa) care for themselves or
an immediate family member who
is ill; or
(bb) provide care for
children when schools or
childcare providers are shut
down due to COVID-19; and
(II) shall, if provided a grant
under this section that includes an
additional amount for sick leave
described under subclause (I), provide
each employee of the entity with such
10 days of paid sick leave.
(iii) Verification.--An eligible entity
shall submit to the Secretary such revenue
verification documentation as the Secretary may
require to determine the amount of a grant
under clause (i).
(iv) Repayment.--Any amount of a grant made
under this subsection to an eligible entity
based on estimated revenues in a calendar
quarter in 2020 that is greater than the actual
revenues of the eligible entity during that
calendar quarter shall be converted to a loan
that has--
(I) an interest rate of 1 percent;
and
(II) a maturity date of 10 years
beginning on January 1, 2021.
(B) Reduction based on ppp forgiveness or eidl
emergency grant.--If an eligible entity has, at the
time of application for a grant under this subsection,
received an advance under section 1110(e) of the CARES
Act (15 U.S.C. 9009(e)) or loan forgiveness under
section 1106 of such Act (15 U.S.C. 9005) related to
expenses incurred during the covered period, the
maximum amount of a grant awarded to the eligible
entity under this subsection shall be reduced by the
amount of funds expended by or forgiven for the
eligible entity for those expenses using amounts
received under such section 1110(e) or forgiven under
such section 1106.
(C) Limitation.--An eligible entity may not receive
more than 1 grant under this subsection.
(D) Aggregate maximum amount.--The aggregate amount
of grants made to an eligible entity and any affiliate
businesses of the eligible entity under this section
shall not exceed $10,000,000.
(6) Use of funds.--
(A) In general.--During the covered period, an
eligible entity that receives a grant under this
subsection may use the grant funds for--
(i) payroll costs;
(ii) payments of principal or interest on
any mortgage obligation;
(iii) rent payments, including rent under a
lease agreement;
(iv) utilities;
(v) maintenance expenses, including--
(I) construction to accommodate
outdoor seating; and
(II) walls, floors, deck surfaces,
furniture, fixtures, and equipment;
(vi) supplies, including protective
equipment and cleaning materials;
(vii) food, beverage, and operational
expenses that are within the scope of the
normal business practice of the eligible entity
before the covered period;
(viii) debt obligations to suppliers that
were incurred before the covered period;
(ix) costs associated with providing
employees with 10 days of sick leave, as
described in paragraph (5)(A)(ii); and
(x) any other expenses that the Secretary
determines to be essential to maintaining the
eligible entity.
(B) Returning funds.--If an eligible entity that
receives a grant under this subsection permanently
ceases operations on or before June 30, 2021, the
eligible entity shall return to the Treasury any funds
that the eligible entity did not use for the allowable
expenses under subparagraph (A).
(C) Conversion to loan.--Any grant amounts received
by an eligible entity under this subsection that are
unused after June 30, 2021, shall be immediately
converted to a loan with--
(i) an interest rate of 1 percent; and
(ii) a maturity date of 10 years.
(7) Regulations.--Not later than 15 days after the date of
enactment of this Act, the Secretary shall issue regulations to
carry out this subsection without regard to the notice and
comment requirements under section 553 of title 5, United
States Code.
(8) Appropriations for staffing and administrative
expenses.--
(A) In general.--Of the amounts provided by
subsection (c)(2)(A), $300,000,000 shall be for
staffing and administrative expenses related to
administering grants awarded under this subsection.
(B) Set aside.--Of amounts provided under
subparagraph (A), $60,000,000 shall be allocated for
outreach to traditionally marginalized and
underrepresented communities, with a focus on women,
veteran, and minority-owned and operated eligible
entities, including the creation of a resource center
targeted toward these communities.
(e) Limitation With Respect to Private Funds.--
(1) In general.--No amounts received under this section may
be directly or indirectly used to pay distributions, dividends,
consulting fees, advisory fees, interest payments, or any other
fees, expenses, or charges to--
(A) a person registered as an investment adviser
under the Investment Advisers Act of 1940 (15 U.S.C.
80b-1 et seq.) who advises a private fund;
(B) any affiliate of such adviser;
(C) any executive of such adviser or affiliate; or
(D) any employee, consultant, or other person with
a contractual relationship to provide services for or
on behalf of such adviser or affiliate.
(2) Anti-evasion.--No company in which a private fund holds
an ownership interest that has, directly or indirectly,
received amounts under this title may pay any distributions,
dividends, consulting fees, advisory fees, interest payments,
or any other fees, expenses, or charges in excess of 10 percent
of such company's net operating profits for the calendar year
ending December 31, 2020 (and for each successive year until
the covered period has ended and all loans created under this
section have been repaid), to--
(A) a person registered as an investment adviser
under the Investment Advisers Act of 1940 (15 U.S.C.
80b-1 et seq.) who advises a private fund;
(B) any affiliate of such adviser;
(C) any executive of such adviser or affiliate; or
(D) any employee, consultant, or other person with
a contractual relationship to provide services for or
on behalf of such adviser or affiliate.
(3) Definitions.--In this section:
(A) Affiliate.--
(i) In general.--The term ``affiliate''
means, with respect to a person, any other
person directly or indirectly controlling,
controlled by, or under direct or indirect
common control with such person.
(ii) Control.--For purposes of clause (i),
a person shall be deemed to control another
person if such person possesses, directly or
indirectly, the power to direct or cause the
direction of the management and policies of
such other person, whether through the
ownership of voting securities, by contract, or
otherwise.
(B) Executive.--The term ``executive'' means--
(i) any individual who serves an executive
or director of a person, including the
principal executive officer, principal
financial officer, comptroller or principal
accounting officer; and
(ii) an executive officer, as defined in
section 230.405 of title 17, Code of Federal
Regulations, or any successor regulation.
(C) Private fund.--The term ``private fund'' means
an issuer that would be an investment company, as
defined in section 3 of the Investment Company Act of
1940 (15 U.S.C. 80a-3), but for paragraph (1) or (7) of
section 3(c) of that Act.
(f) Demographic Data and Transparency.--
(1) Demographic data.--In establishing an application
process for carrying out this section, the Secretary shall
include a voluntary request for certain demographic data with
respect to the majority ownership of eligible entities,
including race, ethnicity, gender, and veteran-status.
(2) Monthly reports.--Not later than the end of the first
month in which initial grants are disbursed under this section,
and every month thereafter until the date on which the last
grant has been disbursed under this section, the Secretary
shall submit to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services
of the House of Representatives a report providing--
(A) the number and dollar amount of grants approved
for or disbursed to all eligible entities, including a
list of eligible entities with the grant amount
received by the eligible entity; and
(B) a breakout of the number and dollar of grants
by State, congressional district, demographics
(including race, ethnicity, gender, and veteran-
status), and business type.
(3) Quarterly reports.--Beginning on January 1, 2021, and
every subsequent quarter until the last grant that was
converted to a loan under this section is repaid, the Secretary
shall submit to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services
of the House of Representatives a report on--
(A) the number and dollar amount of grants approved
for or disbursed to all eligible entities, including a
breakout of grants by State, congressional district,
demographics (including race, ethnicity, gender, and
veteran-status), and business type; and
(B) the number and dollar amount of grants that
converted to loans under this section, including a
breakout of outstanding loans by State, congressional
district, demographics (including race, ethnicity,
gender, and veteran-status), and business type.
(4) Data transparency.--Not later than 30 days after the
date of enactment of this Act, the Secretary shall make
available on a publicly available website in a standardized and
downloadable format, and update on a monthly basis, any data
contained in a report submitted under this section.
TITLE VII--MINORITY BUSINESS DEVELOPMENT AGENCY AND COMMUNITY
DEVELOPMENT FINANCIAL INSTITUTIONS FUND
SEC. 701. DEFINITIONS.
In this title:
(1) Agency.--The term ``Agency'' means the Minority
Business Development Agency of the Department of Commerce.
(2) Assistant secretary.--The term ``Assistant Secretary''
means the Assistant Secretary of Commerce for Minority Business
Development who is appointed as described in section 714(b) to
administer this subtitle.
(3) Federal agency.--The term ``Federal agency'' has the
meaning given the term ``agency'' in section 551 of title 5,
United States Code.
(4) Federally recognized area of economic distress.--The
term ``federally recognized area of economic distress'' means--
(A) a HUBZone, as that term is defined in section
31(b) of the Small Business Act (15 U.S.C. 657a(b));
(B) an area that--
(i) has been designated as--
(I) an empowerment zone under
section 1391 of the Internal Revenue
Code of 1986; or
(II) a Promise Zone by the
Secretary of Housing and Urban
Development; or
(ii) is a low or moderate income area, as
determined by the Bureau of the Census;
(C) a qualified opportunity zone, as that term is
defined in section 1400Z-1 of the Internal Revenue Code
of 1986; or
(D) any other political subdivision or
unincorporated area of a State determined by the
Assistant Secretary to be an area of economic distress.
(5) Indian tribe.--
(A) In general.--Subject to subparagraph (B), the
term ``Indian Tribe'' has the meaning given the term
``Indian tribe'' in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C.
5304).
(B) Native hawaiian organization.--The term
``Indian Tribe'' includes a Native Hawaiian
organization.
(6) Institution of higher education.--The term
``institution of higher education'' has the meaning given the
term in section 101 of the Higher Education Act of 1965 (20
U.S.C. 1001).
(7) Minority business enterprise.--The term ``minority
business enterprise'' means a for-profit business enterprise--
(A) that is not less than 51 percent-owned by 1 or
more socially disadvantaged individuals; and
(B) the management and daily business operations of
which are controlled by 1 or more socially
disadvantaged individuals.
(8) Private sector entity.--The term ``private sector
entity''--
(A) means an entity that is not a public sector
entity; and
(B) does not include--
(i) the Federal Government;
(ii) any Federal agency; or
(iii) any instrumentality of the Federal
Government.
(9) Public sector entity.--The term ``public sector
entity'' means--
(A) a State;
(B) an agency of a State;
(C) a political subdivision of a State; or
(D) an agency of a political subdivision of a
State.
(10) Secretary.--The term ``Secretary'' means the Secretary
of Commerce.
(11) Socially disadvantaged individual.--
(A) In general.--The term ``socially disadvantaged
individual'' means an individual who has been subjected
to racial or ethnic prejudice or cultural bias because
of the identity of the individual as a member of a
group, without regard to any individual quality of the
individual that is unrelated to that identity.
(B) Presumption.--In carrying out this subtitle,
the Assistant Secretary shall presume that the term
``socially disadvantaged individual'' includes any
individual who is--
(i) Black or African American;
(ii) Hispanic or Latino;
(iii) American Indian or Alaska Native;
(iv) Asian;
(v) Native Hawaiian or other Pacific
Islander; or
(vi) a member of a group that the Minority
Business Development Agency determines under
part 1400 of title 15, Code of Federal
Regulations, as in effect on November 23, 1984,
is a socially disadvantaged group eligible to
receive assistance.
(12) State.--The term ``State'' means--
(A) each of the States of the United States;
(B) the District of Columbia;
(C) the Commonwealth of Puerto Rico;
(D) the United States Virgin Islands;
(E) Guam;
(F) American Samoa;
(G) the Commonwealth of the Northern Mariana
Islands; and
(H) each Indian Tribe.
Subtitle A--Codification of the Minority Business Development Agency
SEC. 711. SHORT TITLE.
This subtitle may be cited as the ``Minority Business Resiliency
Act of 2020''.
SEC. 712. FINDINGS AND PURPOSES.
(a) Findings.--Congress finds the following:
(1) During times of economic downturn or recession,
communities of color, and businesses within those communities,
are generally more adversely affected, which requires an
expansion of the ability of the Federal Government to infuse
resources into those communities.
(2) Despite the growth in the number of minority business
enterprises, gaps remain with respect to key metrics for those
enterprises, such as access to capital, revenue, number of
employees, and survival rate. Specifically--
(A) according to the Department of Commerce,
minority business enterprises are 2 to 3 times more
likely to be denied loans than non-minority business
enterprises;
(B) according to the Bureau of the Census, the
average non-minority business enterprise reports
receipts that are more than 3 times higher than
receipts reported by the average minority business
enterprise; and
(C) according to the Kauffman Foundation--
(i) minority business enterprises are \1/2\
as likely to employ individuals, as compared
with non-minority business enterprises; and
(ii) if minorities started and owned
businesses at the same rate as non-minorities,
the United States economy would have more than
1,000,000 additional employer businesses and
more than 9,500,000 additional jobs.
(3) Because of the conditions described in paragraph (2),
it is in the interest of the United States and the economy of
the United States to expeditiously ameliorate the disparities
that minority business enterprises experience.
(4) Many individuals who own minority business enterprises
are socially disadvantaged because those individuals identify
as members of certain groups that have suffered the effects of
discriminatory practices or similar circumstances over which
those individuals have no control, including individuals who
are--
(A) Black or African American;
(B) Hispanic or Latino;
(C) American Indian or Alaska Native;
(D) Asian; and
(E) Native Hawaiian or other Pacific Islander.
(5) Discriminatory practices and similar circumstances
described in paragraph (4) are a significant determinant of
overall economic disadvantage in the United States, which is
evident in the persistent racial wealth gap in the United
States.
(6) While other Federal agencies focus only on small
businesses and businesses that represent a broader demographic
than solely minority business enterprises, the Agency focuses
exclusively on--
(A) the unique needs of minority business
enterprises; and
(B) enhancing the capacity of minority business
enterprises.
(b) Purposes.--The purposes of this subtitle are to--
(1) require the Agency to promote and administer programs
in the public and private sectors to assist the development of
minority business enterprises; and
(2) achieve the development described in paragraph (1) by
authorizing the Assistant Secretary to carry out programs that
will result in increased access to capital, management, and
technology for minority business enterprises.
SEC. 713. MINORITY BUSINESS DEVELOPMENT AGENCY.
(a) In General.--There is within the Department of Commerce the
Minority Business Development Agency.
(b) Assistant Secretary.--
(1) Appointment and duties.--The Agency shall be headed by
an Assistant Secretary of Commerce for Minority Business
Development, who shall be--
(A) appointed by the President, by and with the
advice and consent of the Senate; and
(B) except as otherwise expressly provided,
responsible for the administration of this subtitle.
(2) Compensation.--The Assistant Secretary shall be
compensated at an annual rate of basic pay prescribed for level
IV of the Executive Schedule under section 5315 of title 5,
United States Code.
(c) Report to Congress.--Not later than 120 days after the date of
enactment of this Act, the Secretary shall submit to Congress a report
that describes--
(1) the organizational structure of the Agency;
(2) the organizational position of the Agency within the
Department of Commerce; and
(3) a description of how the Agency shall function in
relation to the operations carried out by each other component
of the Department of Commerce.
(d) Office of Business Centers.--
(1) Establishment.--There is established within the Agency
an Office of Business Centers.
(2) Director.--The Office of Business Centers shall be
administered by a Director, who shall be appointed by the
Assistant Secretary.
(e) Offices of the Agency.--
(1) In general.--The Assistant Secretary shall establish
such other offices within the Agency as are necessary to carry
out this subtitle.
(2) Regional offices.--
(A) In general.--In order to carry out this
subtitle, the Assistant Secretary may establish a
regional office of the Agency for each of the regions
of the United States, as determined by the Assistant
Secretary.
(B) Duties.--Each regional office established under
subparagraph (A) shall expand the reach of the Agency
and enable the Federal Government to better serve the
needs of minority business enterprises in the region
served by the office, including by--
(i) understanding and participating in the
business environment of that region;
(ii) working with--
(I) Centers, as that term is
defined in section 732, that are
located in that region; and
(II) resource and lending partners
of the Small Business Administration
that are located in that region;
(iii) being aware of business retention or
expansion programs specific to that region;
(iv) seeking out opportunities to
collaborate with regional public and private
programs that focus on minority business
enterprises; and
(v) promoting business continuity and
preparedness.
PART I--EXISTING INITIATIVES
Subpart A--Market Development, Research, and Information
SEC. 721. PRIVATE SECTOR DEVELOPMENT.
The Assistant Secretary shall, whenever the Assistant Secretary
determines such action is necessary or appropriate--
(1) assist minority business enterprises to penetrate
domestic and foreign markets by making available to those
business enterprises, either directly or in cooperation with
private sector entities, including community-based
organizations and national nonprofit organizations--
(A) resources relating to management;
(B) technological assistance;
(C) financial and marketing services; and
(D) services relating to workforce development;
(2) encourage minority business enterprises to establish
joint ventures and projects--
(A) with other minority business enterprises; or
(B) in cooperation with public sector entities or
private sector entities, including community-based
organizations and national nonprofit organizations, to
increase the share of any market activity being
performed by minority business enterprises; and
(3) facilitate the efforts of private sector entities and
Federal agencies to advance the growth of minority business
enterprises.
SEC. 722. PUBLIC SECTOR DEVELOPMENT.
The Assistant Secretary shall, whenever the Assistant Secretary
determines such action is necessary or appropriate--
(1) consult and cooperate with public sector entities for
the purpose of leveraging resources available in the
jurisdictions of those public sector entities to promote the
position of minority business enterprises in the local
economies of those public sector entities, including by
assisting public sector entities to establish or enhance--
(A) programs to procure goods and services through
minority business enterprises and goals for that
procurement;
(B) programs offering assistance relating to--
(i) management;
(ii) technology;
(iii) financing;
(iv) marketing; and
(v) workforce development; and
(C) informational programs designed to inform
minority business enterprises located in the
jurisdictions of those public sector entities about the
availability of programs described in this section;
(2) meet with leaders and officials of public sector
entities for the purpose of recommending and promoting local
administrative and legislative initiatives needed to advance
the position of minority business enterprises in the local
economies of those public sector entities; and
(3) facilitate the efforts of public sector entities and
Federal agencies to advance the growth of minority business
enterprises.
SEC. 723. RESEARCH AND INFORMATION.
(a) In General.--In order to achieve the purposes of this subtitle,
the Assistant Secretary--
(1) shall--
(A) collect and analyze data, including data
relating to the causes of the success or failure of
minority business enterprises;
(B) perform evaluations of programs carried out by
Federal agencies with an emphasis on increasing
coordination between Federal agencies with respect to
the development of minority business enterprises; and
(C) conduct research, studies, and surveys of--
(i) economic conditions generally in the
United States; and
(ii) how the conditions described in clause
(i) particularly affect the development of
minority business enterprises; and
(2) may, at the request of a public sector entity or a
private sector entity, perform an evaluation of programs
carried out by the entity that are designed to assist the
development of minority business enterprises.
(b) Information Clearinghouse.--The Assistant Secretary shall--
(1) establish and maintain an information clearinghouse for
the collection and dissemination of demographic, economic,
financial, managerial, and technical data relating to minority
business enterprises; and
(2) take such steps as the Assistant Secretary may
determine to be necessary and desirable to search for, collect,
classify, coordinate, integrate, record, and catalog the data
described in paragraph (1).
Subpart B--Minority Business Development Center Program
SEC. 731. PURPOSE.
The purpose of the MBDC Program shall be to create a national
network of public-private partnerships that--
(1) assist minority business enterprises to--
(A) access capital and contracts; and
(B) create and maintain jobs;
(2) provide counseling and mentoring to minority business
enterprises; and
(3) facilitate the growth of minority business enterprises
by promoting trade.
SEC. 732. DEFINITIONS.
In this subpart:
(1) Center.--The term ``Center'' means an eligible entity
that enters into an MBDC agreement with the Assistant
Secretary.
(2) Eligible entity.--Except as otherwise expressly
provided, the term ``eligible entity''--
(A) means--
(i) a private sector entity; or
(ii) a public sector entity; and
(B) includes an institution of higher education.
(3) MBDC agreement.--The term ``MBDC agreement'' means a
collaborative agreement entered into between the Assistant
Secretary and a Center under the MBDC Program.
(4) MBDC program.--The term ``MBDC Program'' means the
program established under section 733.
SEC. 733. ESTABLISHMENT.
(a) In General.--Subject to subsection (b), there is established in
the Agency a program--
(1) that shall be known as the Minority Business
Development Centers Program;
(2) that shall be separate and distinct from the efforts of
the Assistant Secretary under section 721; and
(3) under which the Assistant Secretary shall enter into
cooperative agreements with eligible entities under which, in
accordance with section 734--
(A) the eligible entities shall provide technical
assistance and business development services to
minority business enterprises; and
(B) the Assistant Secretary shall provide financial
assistance to the eligible entities to carry out the
activities described in subparagraph (A).
(b) Coverage.--The Assistant Secretary shall take all necessary
actions to ensure that the MBDC Program, in accordance with section
734, offers the services described in subsection (a)(3)(A) in all
regions of the United States.
(c) Scope of Authority.--The authority of the Assistant Secretary
to enter into MBDC agreements shall be effective each fiscal year only
to the extent that amounts are made available to the Assistant
Secretary under applicable appropriations Acts.
SEC. 734. COOPERATIVE AGREEMENTS.
(a) Requirements.--A Center shall, using financial assistance
awarded to the Center under an MBDC agreement--
(1) provide to minority business enterprises programs and
services determined to be appropriate by the Assistant
Secretary, which--
(A) shall include referral services to meet the
needs of minority business enterprises; and
(B) may include programs and services to accomplish
the goals described in section 721(1);
(2) develop, cultivate, and maintain a network of strategic
partnerships with organizations that foster access by minority
business enterprises to economic markets or contracts;
(3) continue to upgrade and modify the services provided by
the Center, as necessary, in order to meet the changing and
evolving needs of the business community;
(4) collaborate with other Centers; and
(5) in providing programs and services under the MBDC
agreement--
(A) operate on a fee-for-service basis; and
(B) generate income through the collection of--
(i) client fees;
(ii) membership fees;
(iii) success fees; and
(iv) any other appropriate fees proposed by
the Center in the application submitted by the
Center for the MBDC agreement.
(b) Term.--Subject to subsection (g), the term of an MBDC agreement
shall be 3 years.
(c) Financial Assistance.--
(1) Minimum amount.--Subject to paragraph (2), the amount
of financial assistance provided by the Assistant Secretary
under an MBDC agreement shall be not less than $250,000 for the
term of the MBDC agreement.
(2) Additional amounts.--In determining whether to award
financial assistance under an MBDC agreement to a Center in an
amount greater than $250,000, the Assistant Secretary shall
take into consideration the cost of living and the size of the
population in the area in which the Center is located.
(3) Matching requirement.--
(A) In general.--A Center shall match not less than
\1/3\ of the amount of the financial assistance awarded
to the Center under an MBDC agreement.
(B) Form of funds.--A Center may meet the matching
requirement under subparagraph (A) using cash or in-
kind contributions, without regard to whether the
contribution is made by a third party.
(4) Use of financial assistance and program income.--A
Center shall use--
(A) all financial assistance awarded to the Center
under an MBDC agreement to carry out the requirements
under subsection (a); and
(B) all income that the Center generates in
carrying out the requirements under subsection (a)--
(i) to meet the matching requirement under
paragraph (3) of this subsection; and
(ii) if the Center meets the matching
requirement under paragraph (3) of this
subsection, to carry out the requirements under
subsection (a).
(d) Criteria for Selection.--The Assistant Secretary shall--
(1) establish--
(A) criteria that--
(i) the Assistant Secretary shall use in
determining whether to enter into an MBDC
agreement with an eligible entity; and
(ii) may include criteria relating to
whether an eligible entity is located in--
(I) an area, the population of
which is composed of not less than 51
percent socially disadvantaged
individuals;
(II) a federally recognized area of
economic distress; or
(III) a State that is underserved
with respect to the MBDC program, as
defined by the Assistant Secretary; and
(B) standards relating to the consideration given
to the criteria established under subparagraph (A); and
(2) make the criteria and standards established under
paragraph (1) publicly available, including--
(A) on the website of the Agency; and
(B) in each solicitation for applications for MBDC
agreements.
(e) Applications.--An eligible entity desiring to enter into an
MBDC agreement shall submit to the Assistant Secretary an application
that includes--
(1) a statement of--
(A) how the eligible entity will meet the
requirements under subsection (a); and
(B) any experience of the eligible entity in--
(i) assisting minority business enterprises
to--
(I) obtain--
(aa) large-scale contracts
or procurements; or
(bb) financing;
(II) access established supply
chains; and
(III) engage in--
(aa) joint ventures,
teaming arrangements, and
mergers and acquisitions; or
(bb) large-scale
transactions in global markets;
and
(ii) advocating for minority business
enterprises; and
(2) the budget and corresponding budget narrative that the
eligible entity will use in carrying out the requirements under
subsection (a) during the term of the MBDC agreement.
(f) Notification.--If the Assistant Secretary grants an application
of an eligible entity submitted under subsection (e), the Assistant
Secretary shall notify the eligible entity that the application has
been granted not later than 150 days after the last day on which an
application may be submitted under that subsection.
(g) Program Examination; Accreditation; Extensions.--
(1) Examination.--Not later than 180 days after the date of
enactment of this Act, and biennially thereafter, the Assistant
Secretary shall conduct a programmatic financial examination of
each Center.
(2) Accreditation.--The Assistant Secretary may provide
financial support, by contract or otherwise, to an association,
not less than 51 percent of the members of which are Centers,
to--
(A) pursue matters of common concern with respect
to Centers; and
(B) develop an accreditation program with respect
to Centers.
(3) Extensions.--
(A) In general.--The Assistant Secretary may extend
the term under subsection (b) of an MBDC agreement to
which a Center is a party to a term of 5 years, if the
Center consents to the extension.
(B) Financial assistance.--If the Assistant
Secretary extends the term of an MBDC agreement under
paragraph (1), the Assistant Secretary shall, in the
same manner and amount in which financial assistance
was provided during the initial term of the MBDC
agreement, provide financial assistance under the MBDC
agreement during the extended term of the MBDC
agreement.
(h) Priority.--In entering into MBDC agreements under the MBDC
Program and extending MBDC agreements under subsection (g)(3), the
Assistant Secretary shall give priority to extending MBDC agreements
under subsection (g)(3).
(i) Suspension, Termination, and Refusal To Extend.--
(1) In general.--
(A) In general.--The Assistant Secretary may
suspend, terminate, or refuse to extend the term of an
MBDC agreement on the basis of the poor performance by
a Center in meeting the performance goals established
by the Secretary under subparagraph (B).
(B) Performance goals.--The Assistant Secretary
shall establish performance goals by which to evaluate
the performance of a Center in meeting the requirements
under subsection (a).
(2) Notice.--Before suspending, terminating, or refusing to
extend the term of an MBDC agreement under paragraph (1), the
Assistant Secretary shall provide to the relevant Center--
(A) a written notice of the reasons for the
suspension, termination, or refusal; and
(B) an opportunity for a hearing, appeal, or other
administrative proceeding to contest the suspension,
termination, or refusal.
(j) MBDA Involvement.--The Assistant Secretary shall ensure that
the Agency is substantially involved in the activities of Centers in
carrying out the requirements under subsection (a), including by--
(1) providing to each Center training relating to the MBDC
Program;
(2) requiring that the operator and staff of each Center--
(A) attend--
(i) a conference with the Agency to
establish the services and programs that the
Center will provide in carrying out the
requirements before the date on which the
Center begins providing those services and
programs; and
(ii) training provided under paragraph (1);
(B) receive necessary advising relating to carrying
out the requirements under subsection (a); and
(C) work in coordination and collaboration with the
Assistant Secretary to carry out the MBDC Program and
other programs of the Agency;
(3) facilitating connections between Centers and--
(A) Federal agencies other than the Agency,
including the Small Business Administration and the
Economic Development Administration of the Department
of Commerce; and
(B) other institutions or entities that use Federal
resources, including--
(i) small business development centers, as
that term is defined in section 3(t) of the
Small Business Act (15 U.S.C. 632(t));
(ii) women's business centers described in
section 29 of the Small Business Act (15 U.S.C.
656);
(iii) eligible entities, as that term is
defined in section 2411 of title 10, United
States Code, that provide services under the
program carried out under chapter 142 of that
title; and
(iv) entities participating in the Hollings
Manufacturing Extension Partnership Program
established under section 25 of the National
Institute of Standards and Technology Act (15
U.S.C. 278k);
(4) monitoring projects carried out by each Center; and
(5) establishing and enforcing administrative and reporting
requirements for each Center to carry out the requirements
under subsection (a).
(k) Regulations.--The Assistant Secretary shall issue and publish
regulations that establish minimum standards regarding verification of
minority business enterprise status for clients of entities operating
under the MBDC Program.
SEC. 735. MINIMIZING DISRUPTIONS TO EXISTING BUSINESS CENTERS PROGRAM.
The Assistant Secretary shall ensure that each cooperative
agreement entered into under the Business Centers program of the Agency
that is in effect on the day before the date of enactment of this Act
is carried out in a manner that, to the greatest extent practicable,
prevents disruption of any activity carried out under the cooperative
agreement.
SEC. 736. PUBLICITY.
In carrying out the MBDC Program, the Assistant Secretary shall
widely publicize the MBDC Program, including--
(1) on the website of the Agency; and
(2) via social media outlets.
SEC. 737. EMERGENCY APPROPRIATIONS.
(a) In General.--There is appropriated, out of amounts in the
Treasury not otherwise appropriated, for an additional amount for
``Minority Business Development'', $25,000,000, for necessary expenses
for the MBDC Program, including the component of the program relating
to Specialty Centers, including any cost sharing requirements that may
exist, for assisting minority business enterprises to prevent, prepare
for, and respond to coronavirus, including identifying and accessing
local, State, and Federal Government assistance related to such virus.
(b) Emergency Designation.--
(1) In general.--The amounts provided under this section
are designated as an emergency requirement pursuant to section
4(g) of the Statutory Pay-As-You-Go Act of 2010 (2 U.S.C.
933(g)).
(2) Designation in senate.--In the Senate, this section is
designated as an emergency requirement pursuant to section
4112(a) of H. Con. Res. 71 (115th Congress), the concurrent
resolution on the budget for fiscal year 2018.
PART II--NEW INITIATIVES TO PROMOTE ECONOMIC RESILIENCY FOR MINORITY
BUSINESSES
SEC. 741. ANNUAL DIVERSE BUSINESS FORUM ON CAPITAL FORMATION.
(a) Responsibility of Agency.--Not later than 18 months after the
date of enactment of this Act, and annually thereafter, the Agency
shall conduct a Government-business forum to review the current status
of problems and programs relating to capital formation by minority
business enterprises.
(b) Participation in Forum Planning.--The Assistant Secretary shall
invite the heads of other Federal agencies, such as the Chairman of the
Securities and Exchange Commission, the Secretary of the Treasury, and
the Chairman of the Board of Governors of the Federal Reserve System,
organizations representing State securities commissioners,
representatives of leading minority chambers of commerce, business
organizations, and professional organizations concerned with capital
formation to participate in the planning of each forum conducted under
subsection (a).
(c) Preparation of Statements and Reports.--
(1) Requests.--The Assistant Secretary may request that any
head of a Federal department, agency, or organization,
including those described in subsection (b), or any other group
or individual, prepare a statement or report to be delivered at
any forum conducted under subsection (a).
(2) Cooperation.--Any head of a Federal department, agency,
or organization who receives a request under paragraph (1)
shall, to the greatest extent practicable, cooperate with the
Assistant Secretary to fulfill that request.
(d) Transmittal of Proceedings and Findings.--The Assistant
Secretary shall--
(1) prepare a summary of the proceedings of each forum
conducted under subsection (a), which shall include the
findings and recommendations of the forum; and
(2) transmit the summary described in paragraph (1) with
respect to each forum conducted under subsection (a) to--
(A) the participants in the forum;
(B) Congress; and
(C) the public, through a publicly available
website.
(e) Review of Findings and Recommendations; Public Statements.--
(1) In general.--A Federal agency to which a finding or
recommendation described in subsection (d)(1) relates shall--
(A) review that finding or recommendation; and
(B) promptly after the finding or recommendation is
transmitted under paragraph (2)(C) of subsection (d),
issue a public statement--
(i) assessing the finding or
recommendation; and
(ii) disclosing the action, if any, the
Federal agency intends to take with respect to
the finding or recommendation.
(2) Joint statement permitted.--If a finding or
recommendation described in subsection (d)(1) relates to more
than 1 Federal agency, the applicable Federal agencies may, for
the purposes of the public statement required under paragraph
(1)(B), issue a joint statement.
SEC. 742. AGENCY STUDY ON ALTERNATIVE FINANCING SOLUTIONS.
(a) Purpose.--The purpose of this section is to provide information
relating to alternative financing solutions to minority business
enterprises, as those business enterprises are more likely to struggle
in accessing, particularly at affordable rates, traditional sources of
capital.
(b) Study and Report.--Not later than 1 year after the date of
enactment of this Act, the Assistant Secretary shall--
(1) conduct a study on opportunities for providing
alternative financing solutions to minority business
enterprises; and
(2) submit to Congress, and publish on the website of the
Agency, a report describing the findings of the study carried
out under paragraph (1).
SEC. 743. EDUCATIONAL DEVELOPMENT RELATING TO MANAGEMENT AND
ENTREPRENEURSHIP.
(a) Duties.--The Assistant Secretary shall, whenever the Assistant
Secretary determines such action is necessary or appropriate--
(1) promote and provide assistance for the education and
training of socially disadvantaged individuals in subjects
directly relating to business administration and management;
(2) join with, and encourage, institutions of higher
education, leaders in business and industry, and other public
sector and private sector entities, particularly minority
business enterprises, to--
(A) develop programs to offer scholarships and
fellowships, apprenticeships, and internships relating
to business to socially disadvantaged individuals; and
(B) sponsor seminars, conferences, and similar
activities relating to business for the benefit of
socially disadvantaged individuals;
(3) stimulate and accelerate curriculum design and
improvement in support of development of minority business
enterprises; and
(4) encourage and assist private institutions and
organizations and public sector entities to undertake
activities similar to the activities described in paragraphs
(1), (2), and (3).
(b) Parren J. Mitchell Entrepreneurship Education Grants.--
(1) Definition.--In this subsection, the term ``eligible
institution'' means an institution of higher education
described in any of paragraphs (1) through (7) of section
371(a) of the Higher Education Act of 1965 (20 U.S.C.
1067q(a)).
(2) Grants.--The Assistant Secretary shall award grants to
eligible institutions to develop and implement entrepreneurship
curricula.
(3) Requirements.--An eligible institution that receives a
grant awarded under this subsection shall use the grant funds
to--
(A) develop a curriculum that includes training in
various skill sets needed by contemporary successful
entrepreneurs, including--
(i) business management and marketing;
(ii) financial management and accounting;
(iii) market analysis;
(iv) competitive analysis;
(v) innovation;
(vi) strategic planning; and
(vii) any other skill set that the eligible
institution determines is necessary for the
students served by the eligible institution and
the community in which the eligible institution
is located; and
(B) implement the curriculum developed under
subparagraph (A) at the eligible institution.
(4) Implementation timeline.--The Assistant Secretary shall
establish and publish a timeline under which an eligible
institution that receives a grant under this section shall
carry out the requirements under paragraph (3).
(5) Reports.--Each year, the Assistant Secretary shall
submit to the Committee on Commerce, Science, and
Transportation of the Senate and the Committee on Energy and
Commerce of the House of Representatives, as part of the annual
budget submission of the President under section 1105(a) of
title 31, United States Code, a report evaluating the awarding
and use of grants under this subsection during the fiscal year
immediately preceding the date on which the report is
submitted, which shall include, with respect to that fiscal
year--
(A) a description of each curriculum developed and
implemented under each grant awarded under this
section;
(B) the date on which each grant awarded under this
section was awarded; and
(C) the number of eligible entities that were
recipients of grants awarded under this section.
PART III--ADMINISTRATIVE AND OTHER POWERS OF THE AGENCY; MISCELLANEOUS
PROVISIONS
SEC. 751. ADMINISTRATIVE POWERS.
(a) In General.--In carrying out this subtitle, the Assistant
Secretary may--
(1) adopt and use a seal for the Agency, which shall be
judicially noticed;
(2) hold hearings, sit and act, and take testimony as the
Assistant Secretary may determine to be necessary or
appropriate to carry out this subtitle;
(3) acquire, in any lawful manner, any property that the
Assistant Secretary may determine to be necessary or
appropriate to carry out this subtitle;
(4) make advance payments under grants, contracts, and
cooperative agreements awarded under this subtitle;
(5) enter into agreements with other Federal agencies;
(6) coordinate with the heads of the Offices of Small and
Disadvantaged Business Utilization of Federal agencies;
(7) require a coordinated review of all training and
technical assistance activities that are proposed to be carried
out by Federal agencies in direct support of the development of
minority business enterprises to--
(A) ensure consistency with the purposes of this
subtitle; and
(B) avoid duplication of existing efforts; and
(8) prescribe such rules, regulations, and procedures as
the Agency may determine to be necessary or appropriate to
carry out this subtitle.
(b) Employment of Certain Experts and Consultants.--
(1) In general.--In carrying out this subtitle, the
Assistant Secretary may procure by contract the temporary or
intermittent services of experts or consultants or an
organization thereof, as authorized under section 3109 of title
5, United States Code.
(2) Renewal of contracts.--The Assistant Secretary may
annually renew a contract entered into under paragraph (1).
(c) Donation of Property.--
(1) In general.--Subject to paragraph (2), in carrying out
this subtitle, the Assistant Secretary may, without cost
(except for costs of care and handling), donate for use by any
public sector entity, or by any recipient nonprofit
organization, for the purpose of the development of minority
business enterprises, any real or tangible personal property
acquired by the Agency in carrying out this subtitle.
(2) Terms, conditions, reservations, and restrictions.--The
Assistant Secretary may impose reasonable terms, conditions,
reservations, and restrictions upon the use of any property
donated under paragraph (1).
SEC. 752. FINANCIAL ASSISTANCE.
(a) In General.--
(1) Provision of financial assistance.--To carry out
sections 721, 722, and 723(a), the Assistant Secretary may
provide financial assistance to public sector entities and
private sector entities in the form of contracts, grants, or
cooperative agreements.
(2) Notice.--Not later than 120 days before the first day
of each fiscal year, the Assistant Secretary shall, in
accordance with subsection (b), broadly publish a statement
regarding financial assistance that will, or may, be made
available under paragraph (1) in the first fiscal year that
begins after the date on which the statement is published,
including--
(A) the actual, or anticipated, amount of financial
assistance that will, or may, be made available;
(B) the types of financial assistance that will, or
may, be made available;
(C) the manner in which financial assistance will
be allocated among public sector entities and private
sector entities, as applicable; and
(D) the methodology used by the Assistant Secretary
to make allocations under subparagraph (C).
(3) Consultation.--The Assistant Secretary shall consult
with public sector entities and private sector entities, as
applicable, in deciding the amounts and types of financial
assistance to make available under paragraph (1).
(b) Publicity.--In carrying out this section, the Assistant
Secretary shall broadly publicize all opportunities for financial
assistance available under this section, including--
(1) on the website of the Agency; and
(2) via social media outlets.
SEC. 753. AUDITS.
(a) Recordkeeping Requirement.--Each recipient of assistance under
this subtitle shall keep such records as the Assistant Secretary shall
prescribe, including records that fully disclose, with respect to the
assistance received by the recipient under this subtitle--
(1) the amount and nature of that assistance;
(2) the disposition by the recipient of the proceeds of
that assistance;
(3) the total cost of the undertaking for which the
assistance is given or used;
(4) the amount and nature of the portion of the cost of the
undertaking described in paragraph (3) that is supplied by a
source other than the Agency; and
(5) any other records that will facilitate an effective
audit of the assistance.
(b) Access by Government Officials.--The Assistant Secretary, the
Inspector General of the Department of Commerce, and the Comptroller
General of the United States, or any duly authorized representative of
any such individual, shall have access, for the purpose of audit,
investigation, and examination, to any book, document, paper, record,
or other material of a recipient of assistance under this subtitle that
pertains to the assistance received by the recipient under this
subtitle.
SEC. 754. REVIEW AND REPORT BY COMPTROLLER GENERAL.
Not later than 4 years after the date of enactment of this Act, the
Comptroller General of the United States shall--
(1) conduct a thorough review of the programs carried out
under this subtitle; and
(2) submit to Congress a detailed report of the findings of
the Comptroller General of the United States under the review
carried out under paragraph (1), which shall include--
(A) an evaluation of the effectiveness of the
programs in achieving the purposes of this subtitle;
(B) a description of any failure by any recipient
of assistance under this subtitle to comply with the
requirements under this subtitle; and
(C) recommendations for any legislative or
administrative action that should be taken to improve
the achievement of the purposes of this subtitle.
SEC. 755. ANNUAL REPORTS; RECOMMENDATIONS.
(a) Annual Report.--Not later than 90 days after the last day of
each fiscal year, the Assistant Secretary shall submit to Congress, and
publish on the website of the Agency, a report of each activity of the
Agency carried out under this subtitle during the fiscal year preceding
the date on which the report is submitted.
(b) Recommendations.--The Assistant Secretary shall periodically
submit to Congress and the President recommendations for legislation or
other actions that the Assistant Secretary determines to be necessary
or appropriate to promote the purposes of this subtitle.
SEC. 756. SEPARABILITY.
If a provision of this subtitle, or the application of a provision
of this subtitle to any person or circumstance, is held by a court of
competent jurisdiction to be invalid, that judgment--
(1) shall not affect, impair, or invalidate--
(A) any other provision of this subtitle; or
(B) the application of this subtitle to any other
person or circumstance; and
(2) shall be confined in its operation to--
(A) the provision of this subtitle with respect to
which the judgment is rendered; or
(B) the application of the provision of this
subtitle to each person or circumstance directly
involved in the controversy in which the judgment is
rendered.
SEC. 757. EXECUTIVE ORDER 11625.
The powers and duties of the Agency shall be determined--
(1) in accordance with this subtitle and the requirements
of this subtitle; and
(2) without regard to Executive Order 11625 (36 Fed. Reg.
19967; relating to prescribing additional arrangements for
developing and coordinating a national program for minority
business enterprise).
SEC. 758. AMENDMENT TO THE FEDERAL ACQUISITION STREAMLINING ACT OF
1994.
Section 7104(c) of the Federal Acquisition Streamlining Act of 1994
(15 U.S.C. 644a(c)) is amended by striking paragraph (2) and inserting
the following:
``(2) The Assistant Secretary of Commerce for Minority
Business Development.''.
Subtitle B--Other Provisions
SEC. 761. EMERGENCY GRANTS TO MINORITY BUSINESS ENTERPRISES.
(a) Grants During the COVID-19 Pandemic.--The Agency shall provide
grants to address the needs of minority business enterprises impacted
by the COVID-19 pandemic.
(b) Recipients.--The Agency may make grants through nonprofit
organizations or directly to minority business enterprises.
(c) Priority Areas.--In providing grants pursuant to subsection
(a), the Agency shall prioritize providing assistance to--
(1) minority business enterprises that have been unable to
obtain loans from the paycheck protection program under section
7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36)) and
other programs established under the CARES Act (Public Law 116-
136);
(2) minority business enterprises located in low-income
areas or areas that have been significantly impacted by the
COVID-19 pandemic; and
(3) minority business enterprises that do not have access
to capital and whose business is substantially impaired because
of the impact of stay-at-home orders implemented by State and
local governments due to the COVID-19 pandemic.
(d) Terms and Conditions.--
(1) In general.--The Assistant Secretary shall set such
terms and conditions for the grants made under this section as
the Assistant Secretary determines appropriate.
(2) Notification.--No later than 15 days prior to making
any grants under this section, the Assistant Secretary shall
provide the terms and conditions for grants made under this
section to the Committee on Banking, Housing, and Urban Affairs
of the Senate and the Committee on Financial Services of the
House of Representatives.
(e) GAO Oversight.--Not later than 6 months after the date of
enactment of this Act, the Comptroller General of the United States
shall provide a report on the effectiveness of the grants made under
this section, including the manner in which the Agency implemented the
priorities described in subsection (c).
(f) Authorization of Appropriations.--There are authorized to be
appropriated $3,000,000,000 to carry out this section, to remain
available until expended.
TITLE VIII--PROMOTING AND ADVANCING COMMUNITIES OF COLOR THROUGH
INCLUSIVE LENDING
SEC. 801. SHORT TITLE.
This title may be cited as the ``Promoting and Advancing
Communities of Color through Inclusive Lending Act''.
SEC. 802. FINDINGS; SENSE OF CONGRESS.
(a) Findings.--The Congress finds the following:
(1) The Coronavirus 2019 (COVID-19) pandemic and the
resulting recession have led to--
(A) more than 4,800,000 cases and at least 157,000
deaths in the United States as of August 6, 2020;
(B) a 7.6 percent increase in the unemployment rate
from February to June, or approximately 12,000,000 more
persons who have lost their job; and
(C) an estimated 36 percent of renters and
4,100,000 homeowners who are struggling to pay their
rent and mortgages.
(2) According to the Centers for Disease Control and
Prevention, ``long-standing systemic health and social
inequities have put some members of racial and ethnic minority
groups at increased risk of getting COVID-19 or experiencing
severe illness''.
(3) Minority-owned businesses are also facing more
difficult economic circumstances than others as a result of the
COVID-19 pandemic. In April 2020, the Federal Reserve Bank of
New York reported that minority- and women-owned businesses
were not only more likely to show signs of limited financial
health, but also twice as likely to be classified as ``at
risk'' or ``distressed'' than their non-minority counterparts.
(4) During the Coronavirus 2019 (COVID-19) pandemic,
community development financial institutions (in this section
referred to as ``CDFIs'') and minority depository institutions
(in this section referred to as ``MDIs'') have delivered needed
capital and relief to underserved communities, many of which
have borne a disproportionate impact of the COVID-19 pandemic.
Through August 8, 2020, CDFIs and MDIs have provided more than
$16,400,000,000 in loans under the Paycheck Protection Program
under section 7(a)(36) of the Small Business Act (15 U.S.C.
636(a)(36)) to small businesses with a smaller median loan size
of about $74,000 compared to the overall program median loan
size of $101,000.
(5) In addition to establishing relief funds and services
for local businesses and individuals experiencing loss of
income, CDFIs and MDIs have provided mortgage forbearances,
loan deferments, and modifications to help address the needs of
their borrowers. CDFIs and MDIs are reaching underserved
communities and minority-owned businesses at a critical time.
(6) The Community Development Financial Institutions Fund
(in this section referred to as the ``CDFI Fund'') is an agency
of the Department of the Treasury and was established by the
Community Development Banking and Financial Institutions Act of
1994. The mission of the CDFI Fund is ``to expand economic
opportunity for underserved people and communities by
supporting the growth and capacity of a national network of
community development lenders, investors, and financial service
providers''. As of September 15, 2020, there were 1,137
certified CDFIs in all 50 States, the District of Columbia,
Guam, and the Commonwealth of Puerto Rico.
(7) Following the 2008 financial crisis and the
disproportionate impact the Great Recession had on minority
communities, the number of MDIs that are banks fell more than
30 percent over the following decade, to 143 as of the second
quarter of 2020. Meanwhile, MDIs that are credit unions have
seen similar declines, with more than one-third of such
institutions disappearing since 2013.
(b) Sense of Congress.--The following is the sense of the Congress:
(1) The Department of the Treasury, Board of Governors of
the Federal Reserve System, Small Business Administration,
Office of the Comptroller of the Currency, Federal Deposit
Insurance Corporation, National Credit Union Administration,
and other Federal agencies should take steps to support, engage
with, and utilize MDIs and CDFIs in the near term, especially
as they carry out programs to respond to the COVID-19 pandemic,
and the long term.
(2) The Board of Governors of the Federal Reserve System
should, consistent with its mandates, work to increase lending
by MDIs and CDFIs to underserved communities, and when
appropriate, should work with the Department of the Treasury to
increase lending by MDIs and CDFIs to underserved communities.
(3) The Department of the Treasury and prudential
regulators should establish a strategic plan identifying
concrete steps that they can take to support existing MDIs, as
well as the formation of new MDIs consistent with the goals
established in section 308 of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1463
note) to preserve and promote MDIs.
(4) Congress should increase funding and make other
enhancements, including those provided by this legislation, to
enhance the effectiveness of the CDFI Fund, especially reforms
to support minority-owned and minority led CDFIs in times of
crisis and beyond.
(5) Congress should conduct robust and ongoing oversight of
the Department of the Treasury, the CDFI Fund, Federal
prudential regulators, the Small Business Administration, and
other Federal agencies to ensure they fulfill their obligations
under the law as well as implement this title and other laws in
a manner that supports and fully utilizes MDIs and community
development financial intuitions, as appropriate.
(6) The investments made by the Secretary of the Treasury
under this title and the amendments made by this title should
be designed to maximize the benefit to low- and moderate-income
and minority communities and contemplate losses to capital of
the Treasury.
SEC. 803. PURPOSES.
The purposes of this title are to--
(1) establish programs to revitalize and provide long-term
financial products and service availability for, and provide
investments in, low- and moderate-income and minority
communities;
(2) respond to the unprecedented loss of Black-owned
businesses and unemployment; and
(3) otherwise enhance the stability, safety and soundness
of community development financial institutions that support
low- and moderate-income and minority communities.
SEC. 804. CONSIDERATIONS; REQUIREMENTS FOR CREDITORS.
(a) In General.--In exercising the authorities under this title and
the amendments made by this title, the Secretary of the Treasury shall
take into consideration--
(1) increasing the availability of affordable credit for
consumers, small businesses, and nonprofit organizations,
including for projects supporting affordable housing,
community-serving real estate, and other projects, that provide
direct benefits to low- and moderate-income communities, low-
income and underserved individuals, and minorities;
(2) providing funding to minority-owned or minority-led
eligible institutions and other eligible institutions that have
a strong track record of serving minority small businesses;
(3) protecting and increasing jobs in the United States;
(4) increasing the opportunity for small business,
affordable housing, and community development in geographic
areas and demographic segments with poverty and high
unemployment rates that exceed the average in the United
States;
(5) ensuring that all low- and moderate-income community
financial institutions may apply to participate in the programs
established under this title and the amendments made by this
title, without discrimination based on geography;
(6) providing transparency with respect to use of funds
provided under this title and the amendments made by this
title;
(7) promoting and engaging in financial education to would-
be borrowers; and
(8) providing funding to eligible institutions that serve
consumers, small businesses, and nonprofit organizations to
support affordable housing, community-serving real estate, and
other projects that provide direct benefits to low- and
moderate-income communities, low-income individuals, and
minorities directly affected by the COVID-19 pandemic.
(b) Requirement for Creditors.--Any creditor participating in a
program established under this title or the amendments made by this
title shall fully comply with all applicable statutory and regulatory
requirements relating to fair lending.
SEC. 805. NEIGHBORHOOD CAPITAL INVESTMENT PROGRAM.
The Coronavirus Economic Stabilization Act of 2020 (15 U.S.C. 9041
et seq.) is amended--
(1) in section 4002 (15 U.S.C. 9041)--
(A) by redesignating paragraphs (7) through (10) as
paragraphs (9) through (12), respectively; and
(B) by inserting after paragraph (6) the following:
``(7) Low- and moderate-income community financial
institution.--The term `low- and moderate-income community
financial institution' means any financial institution that
is--
``(A) a community development financial
institution, as defined in section 103 of the Community
Development Banking and Financial Institutions Act of
1994 (12 U.S.C. 4702); or
``(B) a minority depository institution.
``(8) Minority depository institution.--The term `minority
depository institution' means--
``(A) a depository institution described in section
308(b) of the Financial Institutions Reform, Recovery,
and Enforcement Act of 1989 (12 U.S.C. 1463 note);
``(B) an entity considered to be a minority
depository institution by--
``(i) the appropriate Federal banking
agency (as defined under section 3 of the
Federal Deposit Insurance Act (12 U.S.C.
1813)); or
``(ii) the National Credit Union
Administration, in the case of an insured
credit union, as defined in section 101 of the
Federal Credit Union Act (12 U.S.C. 1752); and
``(C) an entity listed in the Minority Depository
Institutions List published by the Federal Deposit
Insurance Corporation for the Second Quarter 2020.'';
and
(2) in section 4003 (15 U.S.C. 9042), by adding at the end
the following:
``(i) Neighborhood Capital Investment Program.--
``(1) Definitions.--In this subsection--
``(A) the terms `community development financial
institution', `insured community development financial
institution', and `minority lending institution' have
the meanings given such terms in section 103 of the
Community Development Banking and Financial
Institutions Act of 1994 (12 U.S.C. 4702);
``(B) the term `Fund' means the Community
Development Financial Institutions Fund established
under section 104(a) of the Community Development
Banking and Financial Institutions Act of 1994 (12
U.S.C. 4703(a));
``(C) the term `minority' means any Black American,
Native American, Hispanic American, or Asian American;
``(D) the term `Program' means the Neighborhood
Capital Investment Program established under paragraph
(2); and
``(E) the term `Secretary' means the Secretary of
the Treasury.
``(2) Establishment.--The Secretary shall establish a
Neighborhood Capital Investment Program to support the efforts
of low- and moderate-income community financial institutions
to, among other things, provide loans and forbearances to small
businesses, minority-owned businesses, and consumers,
especially in low-income and underserved communities, by
providing direct capital investments in low- and moderate-
income community financial institutions.
``(3) Application.--
``(A) Acceptance.--The Secretary shall begin
accepting applications for capital investments under
the Program not later than the end of the 30-day period
beginning on the date of enactment of this subsection,
with priority in distribution given to low- and
moderate-income community financial institutions that
are minority lending institutions.
``(B) Requirement to provide a neighborhood
investment lending plan.--
``(i) In general.--At the time that an
applicant submits an application to the
Secretary for a capital investment under the
Program, the applicant shall provide the
Secretary, along with the appropriate Federal
banking agency, an investment and lending plan
that--
``(I) demonstrates that not less
than 30 percent of the lending of the
applicant over the past 2 fiscal years
was made directly to low- and moderate
income borrowers, to borrowers that
create direct benefits for low- and
moderate-income populations, to other
targeted populations as defined by the
Fund, or any combination thereof, as
measured by the total number and dollar
amount of loans;
``(II) describes how the business
strategy and operating goals of the
applicant will address community
development needs, including the needs
of small businesses, consumers,
nonprofit organizations, community
development, and other projects
providing direct benefits to low- and
moderate-income communities, low-income
individuals, and minorities within the
minority, rural, and urban low-income
and underserved areas served by the
applicant;
``(III) includes a plan to provide
linguistically and culturally
appropriate outreach, where
appropriate;
``(IV) includes an attestation by
the applicant that the applicant does
not own, service, or offer any
financial products at an annual
percentage rate of more than 36 percent
interest, as defined in section
987(i)(4) of title 10, United States
Code, and is compliant with State
interest rate laws; and
``(V) includes details on how the
applicant plans to expand or maintain
significant lending or investment
activity in low- or moderate-income
minority communities, to historically
disadvantaged borrowers, and to
minorities that have significant unmet
capital or financial services needs.
``(ii) Community development loan funds.--
An applicant that is not an insured community
development financial institution or otherwise
regulated by a Federal financial regulator
shall submit the plan described in clause (i)
only to the Secretary.
``(iii) Documentation.--In the case of an
applicant that is certified as a community
development financial institution as of the
date of enactment of this subsection, for
purposes of clause (i)(I), the Secretary may
rely on documentation submitted the Fund as
part of certification compliance reporting.
``(4) Incentives to increase lending and provide affordable
credit.--
``(A) Requirements on preferred stock and other
financial instrument.--Any financial instrument issued
to the Secretary by a low- and moderate-income
community financial institution under the Program shall
comply with the following requirements:
``(i) No dividend, interest or other
payment shall exceed 2 percent per annum.
``(ii) After the first 24 months after the
date of the capital investment under the
Program, annual payments may be required, as
determined by the Secretary and in accordance
with this section, and be adjusted downward
based on the amount of affordable credit
provided by the low- and moderate-income
community financial institution to borrowers in
minority, rural, and urban low-income and
underserved communities.
``(iii) During any calendar quarter after
the initial 24-month period referred to in
clause (ii), the annual payment rate of a low-
and moderate-income community financial
institution shall be adjusted downward to
reflect the following schedule, based on
lending by the institution relative to the
baseline period:
``(I) If the institution in the
most recent annual period prior to the
investment provides significant lending
or investment activity in low- or
moderate-income minority communities,
historically disadvantaged borrowers,
and to minorities that have significant
unmet capital or financial services,
the annual payment rate shall not
exceed 0.5 percent per annum.
``(II) If the amount of lending
within minority, rural, and urban low-
income and underserved communities and
to low- and moderate-income borrowers
has increased dollar for dollar based
on the amount of the capital
investment, the annual payment rate
shall not exceed 1 percent per annum.
``(III) If the amount of lending
within minority, rural, and urban low-
income and underserved communities and
to low- and moderate-income borrowers
has increased by twice the amount of
the capital investment, the annual
payment rate shall not exceed 0.5
percent per annum.
``(B) Contingency of payments based on certain
financial criteria.--
``(i) Deferral.--Any annual payments under
this subsection shall be deferred in any
quarter or payment period if any of the
following occur:
``(I) The low- and moderate-income
community institution fails to meet the
Tier 1 capital ratio or similar ratio
as determined by the Secretary.
``(II) The low- and moderate-income
community financial institution fails
to achieve positive net income for the
quarter or payment period.
``(III) The low- and moderate-
income community financial institution
determines that the payment would be
detrimental to the financial health of
the institution.
``(ii) Testing during next payment
period.--Any deferred annual payment under this
subsection shall--
``(I) be tested against the metrics
described in clause (i) at the
beginning of the next payment period;
and
``(II) continue to be deferred
until the metrics described in that
clause are no longer applicable.
``(5) Restrictions.--
``(A) In general.--Each low- and moderate-income
community financial institution may only issue
financial instruments or senior preferred stock under
this subsection with an aggregate principal amount that
is--
``(i) not more than 15 percent of risk-
weighted assets for an institution with assets
of more than $2,000,000,000;
``(ii) not more than 25 percent of risk-
weighted assets for an institution with assets
of not less than $500,000,000 and not more than
$2,000,000,000; and
``(iii) not more than 30 percent of risk-
weighted assets for an institution with assets
of less than $500,000,000.
``(B) Holding of instruments.--Holding any
instrument of a low- and moderate-income community
financial institution described in subparagraph (A)
shall not give the Secretary or any successor that owns
the instrument any rights over the management of the
institution.
``(C) Sale of interest.--With respect to a capital
investment made into a low- and moderate-income
community financial institution under this subsection,
the Secretary--
``(i) except as provided in clause (iv),
during the 10-year period beginning on the date
of the investment, may not sell the interest of
the Secretary in the capital investment to a
third party;
``(ii) shall provide the low- and moderate-
income community financial institution a right
of first refusal to buy back the investment
under terms that do not exceed a value as
determined by an independent third party;
``(iii) may not sell more than a 5 percent
ownership interest in the capital investment to
a single third party; and
``(iv) with the permission of the
institution, may gift or sell the interest of
the Secretary in the capital investment for a
de minimis amount to a mission aligned
nonprofit affiliate of an applicant that is an
insured community development financial
institution.
``(v) Calculation of ownership for minority
depository institutions.--The calculation and
determination of ownership thresholds for a
depository institution to qualify as a minority
depository institution shall exclude any
dilutive effect of equity investments by the
Federal Government, including under the Program
or through the Fund.
``(6) Available amounts.--In carrying out the Program, the
Secretary shall use not more than $13,000,000,000, from amounts
appropriated under section 4027, and shall use not less than
$7,000,000,000 of such amount for direct capital investments
under the Program.
``(7) Treatment of capital investments.--In making any
capital investment under the Program, the Secretary shall
ensure that the terms of the investment are designed to ensure
the investment receives Tier 1 capital treatment.
``(8) Outreach to minorities.--The Secretary shall require
low- and moderate-income community financial institutions
receiving capital investments under the Program to provide
linguistically and culturally appropriate outreach and
advertising describing the availability and application process
of receiving loans made possible by the Program through
organizations, trade associations, and individuals that
represent or work within or are members of minority
communities.
``(9) Restrictions.--
``(A) In general.--Not later than the end of the
30-day period beginning on the date of enactment of
this subsection, the Secretary shall issue rules
setting restrictions on executive compensation, share
buybacks, and dividend payments for recipients of
capital investments under the Program.
``(B) Rule of construction.--The provisions of
section 4019 apply to investments made under the
Program.
``(10) Termination of investment authority.--The authority
to make capital investments in low- and moderate-income
community financial institutions, including commitments to
purchase preferred stock or other instruments, provided under
the Program shall terminate on the date that is 36 months after
the date of enactment of this subsection.
``(11) Collection of data.--Notwithstanding the Equal
Credit Opportunity Act (15 U.S.C. 1691 et seq.)--
``(A) any low- and moderate-income community
financial institution may collect data described in
section 701(a)(1) of that Act (15 U.S.C. 1691(a)(1))
from borrowers and applicants for credit for the
purpose of monitoring compliance under the plan
required under paragraph (4)(B); and
``(B) a low- and moderate-income community
financial institution that collects the data described
in subparagraph (A) shall not be subject to adverse
action related to that collection by the Bureau of
Consumer Financial Protection or any other Federal
agency.
``(12) Deposit of funds.--All funds received by the
Secretary in connection with purchases made pursuant this
subsection, including interest payments, dividend payments, and
proceeds from the sale of any financial instrument, shall be
deposited into the Fund and used to provide financial and
technical assistance pursuant to section 108 of the Community
Development and Banking and Financial Institutions Act of 1994
(12 U.S.C. 4707), except that subsection (e) of that section
shall be waived.
``(13) Equity equivalent investment option.--
``(A) In general.--The Secretary shall establish an
Equity Equivalent Investment Option, under which, with
respect to a specific investment in a low- and
moderate-income community financial institution--
``(i) 80 percent of such investment is made
by the Secretary under the Program; and
``(ii) 20 percent of such investment if
made by a banking institution.
``(B) Requirement to follow similar terms and
conditions.--The terms and conditions applicable to
investments made by the Secretary under the Program
shall apply to any investment made by a banking
institution under this paragraph.
``(C) Limitations.--The amount of a specific
investment described under subparagraph (A) may not
exceed $10,000,000, but the receipt of an investment
under subparagraph (A) shall not preclude the recipient
from being eligible for other assistance under the
Program.
``(D) Banking institution defined.--In this
paragraph, the term `banking institution' means any
entity with respect to which there is an appropriate
Federal banking agency under section 3 of the Federal
Deposit Insurance Act (12 U.S.C. 1813).
``(j) Application of the Military Lending Act.--
``(1) In general.--No low- and moderate-income community
financial institution that receives an equity investment under
subsection (i) shall, for so long as the investment or
participation continues, make any loan at an annualized
percentage rate above 36 percent, as determined in accordance
with section 987(b) of title 10, United States Code (commonly
known as the `Military Lending Act)'.
``(2) No exemptions permitted.--The exemption authority of
the Bureau of Consumer Financial Protection under section
105(f) of the Truth in Lending Act (15 U.S.C. 1604(f)) shall
not apply with respect to this subsection.''.
SEC. 806. EMERGENCY SUPPORT FOR CDFIS AND COMMUNITIES.
(a) Authorization of Appropriations.--There is authorized to be
appropriated to the Fund $2,000,000,000 for fiscal year 2021, for
providing financial assistance and technical assistance under
subparagraphs (A) and (B) of section 108(a)(1) of the Community
Development Banking and Financial Institutions Act of 1994 (12 U.S.C.
4707(a)(1)), except that subsections (d) and (e) of such section 108
shall not apply to the provision of such assistance, for the Bank
Enterprise Award program, and for financial assistance, technical
assistance, training, and outreach programs designed to benefit Native
American, Native Hawaiian, and Alaska Native communities and provided
primarily through qualified community development lender organizations
with experience and expertise in community development banking and
lending in Indian country, Native American organizations, Tribes and
Tribal organizations, and other suitable providers.
(b) Set Asides.--Of the amounts appropriated pursuant to the
authorization under subsection (a), the following amounts shall be set
aside:
(1) Up to $400,000,000, to remain available until expended,
to provide grants to CDFIs--
(A) to expand lending or investment activity in
low- or moderate-income minority communities and to
minorities that have significant unmet capital or
financial services needs, of which not less than
$10,000,000 may be for grants to benefit Native
American, Native Hawaiian, and Alaska Native
communities; and
(B) using a formula that takes into account
criteria such as certification status, financial and
compliance performance, portfolio and balance sheet
strength, a diversity of CDFI business model types, and
program capacity, as well as experience making loans
and investments to those areas and populations
identified in this paragraph.
(2) Up to $160,000,000, to remain available until expended,
for technical assistance, technology, and training under
sections 108(a)(1)(B) and 109, respectively, of the Community
Development Banking and Financial Institutions Act of 1994 (12
U.S.C. 4707(a)(1)(B), 4708), with a preference for minority
lending institutions.
(3) Up to $800,000,000, to remain available until expended,
shall be for providing financial assistance, technical
assistance, awards, training, and outreach programs described
under subsection (a) to recipients that are minority lending
institutions.
(c) Administrative Expenses.--Funds appropriated pursuant to the
authorization under subsection (a) may be used for administrative
expenses, including administration of Fund programs and the New Markets
Tax Credit Program under section 45D of the Internal Revenue Code of
1986.
(d) Definitions.--In this section:
(1) CDFI.--The term ``CDFI'' means a community development
financial institution, as defined in section 103 of the
Community Development Banking and Financial Institutions Act of
1994 (12 U.S.C. 4702).
(2) Fund.--The term ``Fund'' means the Community
Development Financial Institutions Fund established under
section 104(a) of the Community Development Banking and
Financial Institutions Act of 1994 (12 U.S.C. 4703(a)).
(3) Minority; minority lending institution.--The terms
``minority'' and ``minority lending institution'' have the
meanings given those terms under section 103 of the Community
Development Banking and Financial Institutions Act of 1994 (12
U.S.C. 4702), as amended by section 809 of this Act.
SEC. 807. ENSURING DIVERSITY IN COMMUNITY BANKING.
(a) Sense of Congress on Funding the Loan-Loss Reserve Fund for
Small Dollar Loans.--The sense of Congress is the following:
(1) The Community Development Financial Institutions Fund
(in this subsection referred to as the ``CDFI Fund'') is an
agency of the Department of the Treasury, and was established
by the Community Development Banking and Financial Institutions
of 1994. The mission of the CDFI Fund is ``to expand economic
opportunity for underserved people and communities by
supporting the growth and capacity of a national network of
community development lenders, investors, and financial service
providers''. A community development financial institution (in
this subsection referred to as a ``CDFI'') is a specialized
financial institution serving low-income communities and a
Community Development Entity (in this subsection referred to as
a ``CDE'') is a domestic corporation or partnership that is an
intermediary vehicle for the provision of loans, investments,
or financial counseling in low-income communities. The CDFI
Fund certifies CDFIs and CDEs. Becoming a certified CDFI or CDE
allows organizations to participate in various CDFI Fund
programs as follows:
(A) The Bank Enterprise Award Program, which
provides FDIC-insured depository institutions awards
for a demonstrated increase in lending and investments
in distressed communities and CDFIs.
(B) The CDFI Program, which provides Financial and
Technical Assistance awards to CDFIs to reinvest in the
CDFI, and to build the capacity of the CDFI, including
financing product development and loan loss reserves.
(C) The Native American CDFI Assistance Program,
which provides CDFIs and sponsoring entities Financial
and Technical Assistance awards to increase lending and
grow the number of CDFIs owned by Native Americans to
help build capacity of such CDFIs.
(D) The New Market Tax Credit Program, which
provides tax credits for making equity investments in
CDEs that stimulate capital investments in low-income
communities.
(E) The Capital Magnet Fund, which provides awards
to CDFIs and nonprofit affordable housing organizations
to finance affordable housing solutions and related
economic development activities.
(F) The Bond Guarantee Program, a source of long-
term, patient capital for CDFIs to expand lending and
investment capacity for community and economic
development purposes.
(2) The Department of the Treasury is authorized to create
multi-year grant programs designed to encourage low-to-moderate
income individuals to establish accounts at federally insured
banks, and to improve low-to-moderate income individuals'
access to such accounts on reasonable terms.
(3) Under this authority, grants to participants in CDFI
Fund programs may be used for loan-loss reserves and to
establish small-dollar loan programs by subsidizing related
losses. These grants also allow for the providing recipients
with the financial counseling and education necessary to
conduct transactions and manage their accounts. These loans
provide low-cost alternatives to payday loans and other
nontraditional forms of financing that often impose excessive
interest rates and fees on borrowers, and lead millions of
Americans to fall into debt traps. Small-dollar loans can only
be made pursuant to terms, conditions, and practices that are
reasonable for the individual consumer obtaining the loan.
(4) Program participation is restricted to eligible
institutions, which are limited to organizations listed in
section 501(c)(3) of the Internal Revenue Code of 1986 and
exempt from tax under 501(a) of such Code, federally insured
depository institutions, community development financial
institutions and State, local, or Tribal government entities.
(5) Since its founding, the CDFI Fund has awarded over
$3,300,000,000 to CDFIs and CDEs and has allocated
$54,000,000,000 in tax credits and $1,510,000,000 in bond
guarantees. According to the CDFI Fund, some programs attract
as much as $10 in private capital for every $1 invested by the
CDFI Fund. The Administration and the Congress should
prioritize appropriation of funds for the loan loss reserve
fund and technical assistance programs administered by the
Community Development Financial Institution Fund.
(b) Definitions.--In this section:
(1) Community development financial institution.--The term
``community development financial institution'' has the meaning
given under section 103 of the Community Development Banking
and Financial Institutions Act of 1994 (12 U.S.C. 4702).
(2) Minority depository institution.--The term ``minority
depository institution'' has the meaning given under section
308 of the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989 (12 U.S.C. 1463 note).
(c) Establishment of Impact Bank Designation.--
(1) In general.--Each Federal banking agency shall
establish a program under which a depository institution with
total consolidated assets of less than $10,000,000,000 may
elect to be designated as an impact bank if the total dollar
value of the loans extended by such depository institution to
low-income borrowers is greater than or equal to 50 percent of
the assets of such bank.
(2) Notification of eligibility.--Based on data obtained
through examinations of depository institutions, the
appropriate Federal banking agency shall notify a depository
institution if the institution is eligible to be designated as
an impact bank.
(3) Application.--Regardless of whether or not it has
received a notice of eligibility under paragraph (2), a
depository institution may submit an application to the
appropriate Federal banking agency--
(A) requesting to be designated as an impact bank;
and
(B) demonstrating that the depository institution
meets the applicable qualifications.
(4) Limitation on additional data requirements.--The
Federal banking agencies may only impose additional data
collection requirements on a depository institution under this
subsection if such data is--
(A) necessary to process an application submitted
by the depository institution to be designated an
impact bank; or
(B) with respect to a depository institution that
is designated as an impact bank, necessary to ensure
the depository institution's ongoing qualifications to
maintain such designation.
(5) Removal of designation.--If the appropriate Federal
banking agency determines that a depository institution
designated as an impact bank no longer meets the criteria for
such designation, the appropriate Federal banking agency shall
rescind the designation and notify the depository institution
of such rescission.
(6) Reconsideration of designation; appeals.--Under such
procedures as the Federal banking agencies may establish, a
depository institution may--
(A) submit to the appropriate Federal banking
agency a request to reconsider a determination that
such depository institution no longer meets the
criteria for the designation; or
(B) file an appeal of such determination.
(7) Rulemaking.--Not later than 1 year after the date of
the enactment of this Act, the Federal banking agencies shall
jointly issue rules to carry out the requirements of this
subsection, including by providing a definition of a low-income
borrower.
(8) Reports.--Each Federal banking agency shall submit an
annual report to the Congress containing a description of
actions taken to carry out this subsection.
(9) Federal deposit insurance act definitions.--In this
subsection, the terms ``depository institution'', ``appropriate
Federal banking agency'', and ``Federal banking agency'' have
the meanings given such terms, respectively, in section 3 of
the Federal Deposit Insurance Act (12 U.S.C. 1813).
(d) Minority Depositories Advisory Committees.--
(1) Establishment.--Each covered regulator shall establish
an advisory committee to be called the ``Minority Depositories
Advisory Committee''.
(2) Duties.--Each Minority Depositories Advisory Committee
shall provide advice to the respective covered regulator on
meeting the goals established by section 308 of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989 (12
U.S.C. 1463 note) to preserve the present number of covered
minority institutions, preserve the minority character of
minority-owned institutions in cases involving mergers or
acquisitions, provide technical assistance, and encourage the
creation of new covered minority institutions. The scope of the
work of each such Minority Depositories Advisory Committee
shall include an assessment of the current condition of covered
minority institutions, what regulatory changes or other steps
the respective agencies may be able to take to fulfill the
requirements of such section 308, and other issues of concern
to covered minority institutions.
(3) Membership.--
(A) In general.--Each Minority Depositories
Advisory Committee shall consist of no more than 10
members, who--
(i) shall serve for one two-year term;
(ii) shall serve as a representative of a
depository institution or an insured credit
union with respect to which the respective
covered regulator is the covered regulator of
such depository institution or insured credit
union; and
(iii) shall not receive pay by reason of
their service on the advisory committee, but
may receive travel or transportation expenses
in accordance with section 5703 of title 5,
United States Code.
(B) Diversity.--To the extent practicable, each
covered regulator shall ensure that the members of the
Minority Depositories Advisory Committee of such agency
reflect the diversity of covered minority institutions.
(4) Meetings.--
(A) In general.--Each Minority Depositories
Advisory Committee shall meet not less frequently than
twice each year.
(B) Notice and invitations.--Each Minority
Depositories Advisory Committee shall--
(i) notify the Committee on Financial
Services of the House of Representatives and
the Committee on Banking, Housing, and Urban
Affairs of the Senate in advance of each
meeting of the Minority Depositories Advisory
Committee; and
(ii) invite the attendance at each meeting
of the Minority Depositories Advisory Committee
of--
(I) one member of the majority
party and one member of the minority
party of the Committee on Financial
Services of the House of
Representatives and the Committee on
Banking, Housing, and Urban Affairs of
the Senate; and
(II) one member of the majority
party and one member of the minority
party of any relevant subcommittees of
such committees.
(5) No termination of advisory committees.--The termination
requirements under section 14 of the Federal Advisory Committee
Act (5 U.S.C. App.) shall not apply to a Minority Depositories
Advisory Committee established pursuant to this subsection.
(6) Definitions.--In this subsection:
(A) Covered regulator.--The term ``covered
regulator'' means the Comptroller of the Currency, the
Board of Governors of the Federal Reserve System, the
Federal Deposit Insurance Corporation, and the National
Credit Union Administration.
(B) Covered minority institution.--The term
``covered minority institution'' means a minority
depository institution (as defined in section 308(b) of
the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989 (12 U.S.C. 1463 note)).
(C) Depository institution.--The term ``depository
institution'' has the meaning given that term in
section 3 of the Federal Deposit Insurance Act (12
U.S.C. 1813).
(D) Insured credit union.--The term ``insured
credit union'' has the meaning given that term in
section 101 of the Federal Credit Union Act (12 U.S.C.
1752).
(7) Technical amendment.--Section 308(b) of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989 (12
U.S.C. 1463 note) is amended by adding at the end the following
new paragraph:
``(3) Depository institution.--The term `depository
institution' means an `insured depository institution' (as
defined in section 3 of the Federal Deposit Insurance Act (12
U.S.C. 1813)) and an insured credit union (as defined in
section 101 of the Federal Credit Union Act (12 U.S.C.
1752)).''.
(e) Federal Deposits in Minority Depository Institutions.--
(1) In general.--Section 308 of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1463
note) is amended--
(A) by adding at the end the following new
subsection:
``(d) Federal Deposits.--The Secretary of the Treasury shall ensure
that deposits made by Federal agencies in minority depository
institutions and impact banks are collateralized or insured, as
determined by the Secretary. Such deposits shall include reciprocal
deposits as defined in section 337.6(e)(2)(v) of title 12, Code of
Federal Regulations (as in effect on March 6, 2019).''; and
(B) in subsection (b), as amended by subsection
(d)(7) of this section, by adding at the end the
following new paragraph:
``(4) Impact bank.--The term `impact bank' means a
depository institution designated by the appropriate Federal
banking agency pursuant to section 807(c) of the Promoting and
Advancing Communities of Color through Inclusive Lending
Act.''.
(2) Technical amendments.--Section 308(b) of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989 (12
U.S.C. 1463 note) is amended--
(A) in the matter preceding paragraph (1), by
striking ``section--'' and inserting ``section:''; and
(B) in the paragraph heading for paragraph (1), by
striking ``financial'' and inserting ``depository''.
(f) Minority Bank Deposit Program.--
(1) In general.--Section 1204 of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1811
note) is amended to read as follows:
``SEC. 1204. EXPANSION OF USE OF MINORITY DEPOSITORY INSTITUTIONS.
``(a) Minority Bank Deposit Program.--
``(1) Establishment.--There is established a program to be
known as the `Minority Bank Deposit Program' to expand the use
of minority depository institutions.
``(2) Administration.--The Secretary of the Treasury,
acting through the Bureau of the Fiscal Service, shall--
``(A) on application by a depository institution or
credit union, certify whether such depository
institution or credit union is a minority depository
institution;
``(B) maintain and publish a list of all depository
institutions and credit unions that have been certified
pursuant to subparagraph (A); and
``(C) periodically distribute the list described in
subparagraph (B) to--
``(i) all Federal departments and agencies;
``(ii) interested State and local
governments; and
``(iii) interested private sector
companies.
``(3) Inclusion of certain entities on list.--A depository
institution or credit union that, on the date of the enactment
of the Promoting and Advancing Communities of Color through
Inclusive Lending Act, has a current certification from the
Secretary of the Treasury stating that such depository
institution or credit union is a minority depository
institution shall be included on the list described under
paragraph (2)(B).
``(b) Expanded Use Among Federal Departments and Agencies.--
``(1) In general.--Not later than 1 year after the
establishment of the program described in subsection (a), the
head of each Federal department or agency shall develop and
implement standards and procedures to prioritize, to the
maximum extent possible as permitted by law and consistent with
principles of sound financial management, the use of minority
depository institutions to hold the deposits of each such
department or agency.
``(2) Report to congress.--Not later than 2 years after the
establishment of the program described in subsection (a), and
annually thereafter, the head of each Federal department or
agency shall submit to Congress a report on the actions taken
to increase the use of minority depository institutions to hold
the deposits of each such department or agency.
``(c) Definitions.--For purposes of this section:
``(1) Credit union.--The term `credit union' has the
meaning given the term `insured credit union' in section 101 of
the Federal Credit Union Act (12 U.S.C. 1752).
``(2) Depository institution.--The term `depository
institution' has the meaning given that term in section 3 of
the Federal Deposit Insurance Act (12 U.S.C. 1813).
``(3) Minority depository institution.--The term `minority
depository institution' has the meaning given that term under
section 308 of this Act.''.
(2) Conforming amendments.--The following provisions are
amended by inserting ``, as in effect on the day before the
date of enactment of the Promoting and Advancing Communities of
Color through Inclusive Lending Act'' after ``section
1204(c)(3) of the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989'':
(A) Section 808(b)(3) of the Community Reinvestment
Act of 1977 (12 U.S.C. 2907(b)(3)).
(B) Section 40(g)(1)(B) of the Federal Deposit
Insurance Act (12 U.S.C. 1831q(g)(1)(B)).
(C) Section 704B(h)(4) of the Equal Credit
Opportunity Act (15 U.S.C. 1691c-2(h)(4)).
(g) Diversity Report and Best Practices.--
(1) Annual report.--Each covered regulator shall submit to
Congress an annual report on diversity including the following:
(A) Data, based on voluntary self-identification,
on the racial, ethnic, and gender composition of the
examiners of each covered regulator, disaggregated by
length of time served as an examiner.
(B) The status of any examiners of covered
regulators, based on voluntary self-identification, as
a veteran.
(C) Whether any covered regulator, as of the date
on which the report required under this section is
submitted, has adopted a policy, plan, or strategy to
promote racial, ethnic, and gender diversity among
examiners of the covered regulator.
(D) Whether any special training is developed and
provided for examiners related specifically to working
with depository institutions and credit unions that
serve communities that are predominantly minorities,
low income, or rural, and the key focus of such
training.
(2) Best practices.--Each Office of Minority and Women
Inclusion of a covered regulator shall develop, provide to the
head of the covered regulator, and make publicly available best
practices--
(A) for increasing the diversity of candidates
applying for examiner positions, including through
outreach efforts to recruit diverse candidates to apply
for entry-level examiner positions; and
(B) for retaining and providing fair consideration
for promotions within the examiner staff for purposes
of achieving diversity among examiners.
(3) Covered regulator defined.--In this subsection, the
term ``covered regulator'' means the Comptroller of the
Currency, the Board of Governors of the Federal Reserve System,
the Federal Deposit Insurance Corporation, and the National
Credit Union Administration.
(h) Investments in Minority Depository Institutions and Impact
Banks.--
(1) Control for certain institutions.--Section 7(j)(8)(B)
of the Federal Deposit Insurance Act (12 U.S.C. 1817(j)(8)(B))
is amended to read as follows:
``(B) `control' means the power, directly or indirectly--
``(i) to direct the management or policies of an
insured depository institution; or
``(ii)(I) to vote 25 per centum or more of any
class of voting securities of an insured depository
institution; or
``(II) with respect to an insured depository
institution that is an impact bank (as designated
pursuant to section 807(c) of the Promoting and
Advancing Communities of Color through Inclusive
Lending Act) or a minority depository institution (as
defined in section 308(b) of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 (12
U.S.C. 1463 note)), of an individual to vote 30 percent
or more of any class of voting securities of such an
impact bank or a minority depository institution.''.
(2) Rulemaking.--The Federal banking agencies (as defined
in section 3 of the Federal Deposit Insurance Act (12 U.S.C.
1813)) shall jointly issue rules for de novo minority
depository institutions to allow 3 years to meet the capital
requirements otherwise applicable to minority depository
institutions (as defined in section 308(b) of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989 (12
U.S.C. 1463 note)).
(3) Report.--Not later than 1 year after the date of the
enactment of this Act, the Federal banking agencies shall
jointly submit to Congress a report on--
(A) the principal causes for the low number of de
novo minority depository institutions during the 10-
year period preceding the date of the report;
(B) the main challenges to the creation of de novo
minority depository institutions; and
(C) regulatory and legislative considerations to
promote the establishment of de novo minority
depository institutions.
(i) Report on Covered Mentor-Protege Programs.--
(1) Report.--Not later than 6 months after the date of the
enactment of this Act and annually thereafter, the Secretary of
the Treasury shall submit to Congress a report on participants
in a covered mentor-protege program, including--
(A) an analysis of outcomes of such program;
(B) the number of minority depository institutions
that are eligible to participate in such program but do
not have large financial institution mentors; and
(C) recommendations for how to match such minority
depository institutions with large financial
institution mentors.
(2) Definitions.--In this subsection:
(A) Covered mentor-protege program.--The term
``covered mentor-protege program'' means a mentor-
protege program established by the Secretary of the
Treasury pursuant to section 45 of the Small Business
Act (15 U.S.C. 657r).
(B) Large financial institution.--The term ``large
financial institution'' means any entity--
(i) regulated by the Comptroller of the
Currency, the Board of Governors of the Federal
Reserve System, the Federal Deposit Insurance
Corporation, or the National Credit Union
Administration; and
(ii) that has total consolidated assets
greater than or equal to $50,000,000,000.
(C) Minority depository institution.--The term
``minority depository institution'' has the meaning
given the term in section 308(b) of the Financial
Institutions Reform, Recovery, and Enforcement Act of
1989 (12 U.S.C. 1463 note).
(j) Custodial Deposit Program for Covered Minority Depository
Institutions and Impact Banks.--
(1) In general.--Not later than 1 year after the date of
the enactment of this Act, the Secretary of the Treasury shall
issue rules establishing a custodial deposit program under
which a covered bank may receive deposits from a qualifying
account.
(2) Requirements.--In issuing rules under paragraph (1),
the Secretary of the Treasury shall--
(A) consult with the Federal banking agencies;
(B) ensure each covered bank participating in the
program established under this subsection--
(i) has appropriate policies relating to
management of assets, including measures to
ensure the safety and soundness of each such
covered bank; and
(ii) is compliant with applicable law; and
(C) ensure, to the extent practicable, that the
rules do not conflict with goals described in section
308(a) of the Financial Institutions Reform, Recovery,
and Enforcement Act of 1989 (12 U.S.C. 1463 note).
(3) Limitations.--
(A) Deposits.--With respect to the funds of an
individual qualifying account, an entity may not
deposit an amount greater than the insured amount in a
single covered bank.
(B) Total deposits.--The total amount of funds
deposited in a covered bank under the custodial deposit
program described under this subsection may not exceed
the lesser of--
(i) 10 percent of the average amount of
deposits held by such covered bank in the
previous quarter; or
(ii) $100,000,000 (as adjusted for
inflation).
(4) Report.--Each quarter, the Secretary of the Treasury
shall submit to Congress a report on the implementation of the
program established under this subsection, including
information identifying participating covered banks and the
total amount of deposits received by covered banks under the
program.
(5) Definitions.--In this subsection:
(A) Appropriate federal banking agency; federal
banking agency.--The terms ``appropriate Federal
banking agency'' and ``Federal banking agencies'' have
the meanings given those terms in section 3 of the
Federal Deposit Insurance Act (12 U.S.C. 1813).
(B) Covered bank.--The term ``covered bank''
means--
(i) a minority depository institution that
is well capitalized, as defined by the
appropriate Federal banking agency; or
(ii) a depository institution designated
pursuant to subsection (c) that is well
capitalized, as defined by the appropriate
Federal banking agency.
(C) Insured amount.--The term ``insured amount''
means the amount that is the greater of--
(i) the standard maximum deposit insurance
amount (as defined in section 11(a)(1)(E) of
the Federal Deposit Insurance Act (12 U.S.C.
1821(a)(1)(E))); or
(ii) such higher amount negotiated between
the Secretary of the Treasury and the Federal
Deposit Insurance Corporation under which the
Corporation will insure all deposits of such
higher amount.
(D) Minority depository institution.--The term
``minority depository institution'' has the meaning
given the term in section 308(b) of the Financial
Institutions Reform, Recovery, and Enforcement Act of
1989 (12 U.S.C. 1463 note).
(E) Qualifying account.--The term ``qualifying
account'' means any account established in the
Department of the Treasury that--
(i) is controlled by the Secretary; and
(ii) is expected to maintain a balance
greater than $200,000,000 for the following 24-
month period.
(k) Streamlined Community Development Financial Institution
Applications and Reporting.--
(1) Application processes.--Not later than 12 months after
the date of the enactment of this Act and with respect to any
person having assets under $3,000,000,000 that submits an
application for deposit insurance with the Federal Deposit
Insurance Corporation that could also become a community
development financial institution (as defined in section 103 of
the Community Development Banking and Financial Institutions
Act of 1994 (12 U.S.C. 4702)), the Federal Deposit Insurance
Corporation, in consultation with the Administrator of the
Community Development Financial Institutions Fund, shall--
(A) develop systems and procedures to record
necessary information to allow the Administrator to
conduct preliminary analysis for such person to also
become a community development financial institution;
and
(B) develop procedures to streamline the
application and annual certification processes and to
reduce costs for such person to become, and maintain
certification as, a community development financial
institution.
(2) Implementation report.--Not later than 18 months after
the date of the enactment of this Act, the Federal Deposit
Insurance Corporation shall submit to Congress a report
describing the systems and procedures required under paragraph
(1).
(3) Annual report.--
(A) In general.--Section 17(a)(1) of the Federal
Deposit Insurance Act (12 U.S.C. 1827(a)(1)) is
amended--
(i) in subparagraph (E), by striking
``and'' at the end;
(ii) by redesignating subparagraph (F) as
subparagraph (G); and
(iii) by inserting after subparagraph (E)
the following new subparagraph:
``(F) applicants for deposit insurance that could
also become a community development financial
institution (as defined in section 103 of the Community
Development Banking and Financial Institutions Act of
1994 (12 U.S.C. 4702)), a minority depository
institution (as defined in section 308 of the Financial
Institutions Reform, Recovery, and Enforcement Act of
1989 (12 U.S.C. 1463 note)), or an impact bank (as
designated pursuant to section 807(c) of the Promoting
and Advancing Communities of Color through Inclusive
Lending Act); and''.
(B) Application.--The amendment made by this
paragraph shall apply with respect to the first report
to be submitted after the date that is 2 years after
the date of the enactment of this Act.
(l) Task Force on Lending to Small Business Concerns.--
(1) Definitions.--In this subsection:
(A) Administration; administrator.--The terms
``Administration'' and ``Administrator'' mean the Small
Business Administration and the Administrator thereof,
respectively.
(B) Community development financial institution.--
The term ``community development financial
institution'' has the meaning given the term in section
103 of the Community Development Banking and Financial
Institutions Act of 1994 (12 U.S.C. 4702).
(C) Impact bank.--The term ``impact bank'' means a
depository institution designated by the appropriate
Federal banking agency pursuant to section 807(c) of
the Promoting and Advancing Communities of Color
through Inclusive Lending Act.
(D) Minority depository institution.--The term
``minority depository institution'' has the meaning
given the term in section 308 of the Financial
Institutions Reform, Recovery, and Enforcement Act of
1989 (12 U.S.C. 1463 note).
(E) Small business concern.--The term ``small
business concern'' has the meaning given the term in
section 3(a) of the Small Business Act (15 U.S.C.
632(a)).
(2) Task force.--Not later than 6 months after the date of
the enactment of this Act, the Administrator shall establish a
task force to examine methods for improving relationships
between the Administration and community development financial
institutions, minority depository institutions, and impact
banks to increase the volume of loans provided by such
institutions to small business concerns.
(3) Report to congress.--Not later than 18 months after the
establishment of the task force described in paragraph (2), the
Administrator shall submit to Congress a report on the findings
of the task force.
SEC. 808. ESTABLISHMENT OF FINANCIAL AGENT PARTNERSHIP PROGRAM.
(a) In General.--Section 308 of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 (12 U.S.C. 1463 note), as amended
by section 806(e), is further amended by adding at the end the
following new subsection:
``(e) Financial Agent Partnership Program.--
``(1) In general.--The Secretary of the Treasury shall
establish a program to be known as the `Financial Agent
Partnership Program' (in this subsection referred to as the
`Program') under which a financial agent designated by the
Secretary or a large financial institution may serve as a
mentor, under guidance or regulations prescribed by the
Secretary, to a small financial institution to allow such small
financial institution--
``(A) to be prepared to perform as a financial
agent; or
``(B) to improve capacity to provide services to
the customers of the small financial institution.
``(2) Outreach.--The Secretary shall hold outreach events
to promote the participation of financial agents, large
financial institutions, and small financial institutions in the
Program at least once a year.
``(3) Financial partnerships.--
``(A) In general.--Any large financial institution
participating in a program with the Department of the
Treasury, if not already required to include a small
financial institution, shall offer not more than 5
percent of every contract under that program to a small
financial institution.
``(B) Acceptance of risk.--As a requirement of
participation in a contract described under
subparagraph (A), a small financial institution shall
accept the risk of the transaction equivalent to the
percentage of any fee the institution receives under
the contract.
``(C) Partner.--A large financial institution
partner may work with small financial institutions, if
necessary, to train professionals to understand any
risks involved in a contract under the Program.
``(D) Increased limit for certain institutions.--
With respect to a program described under subparagraph
(A), if the Secretary of the Treasury determines that
it would be appropriate and would encourage capacity
building, the Secretary may alter the requirements
under subparagraph (A) to require both--
``(i) a higher percentage of the contract
be offered to a small financial institution;
and
``(ii) require the small financial
institution to be a community development
financial institution or a minority depository
institution.
``(4) Exclusion.--The Secretary shall issue guidance or
regulations to establish a process under which a financial
agent, large financial institution, or small financial
institution may be excluded from participation in the Program.
``(5) Report.--The Office of Minority and Women Inclusion
of the Department of the Treasury shall include in the report
submitted to Congress under section 342(e) of the Dodd-Frank
Wall Street Reform and Consumer Protection Act (12 U.S.C.
5452(e)) information pertaining to the Program, including--
``(A) the number of financial agents, large
financial institutions, and small financial
institutions participating in the Program; and
``(B) the number of outreach events described in
paragraph (2) held during the year covered by such
report.
``(6) Definitions.--In this subsection:
``(A) Community development financial
institution.--The term `community development financial
institution' has the meaning given that term under
section 103 of the Community Development Banking and
Financial Institutions Act of 1994 (12 U.S.C. 4702).
``(B) Financial agent.--The term `financial agent'
means any national banking association designated by
the Secretary of the Treasury to be employed as a
financial agent of the Government.
``(C) Large financial institution.--The term `large
financial institution' means any entity regulated by
the Comptroller of the Currency, the Board of Governors
of the Federal Reserve System, the Federal Deposit
Insurance Corporation, or the National Credit Union
Administration that has total consolidated assets
greater than or equal to $50,000,000,000.
``(D) Small financial institution.--The term `small
financial institution' means--
``(i) any entity regulated by the
Comptroller of the Currency, the Board of
Governors of the Federal Reserve System, the
Federal Deposit Insurance Corporation, or the
National Credit Union Administration that has
total consolidated assets of not more than
$2,000,000,000; or
``(ii) a minority depository
institution.''.
(b) Effective Date.--This section and the amendments made by this
section shall take effect 90 days after the date of the enactment of
this Act.
SEC. 809. STRENGTHENING MINORITY LENDING INSTITUTIONS.
(a) Minority Lending Institution Set-Aside in Providing
Assistance.--
(1) In general.--Section 108 of the Community Development
Banking and Financial Institutions Act of 1994 (12 U.S.C. 4707)
is amended by adding at the end the following:
``(i) Minority Lending Institution Set-Aside in Providing
Assistance.--Notwithstanding any other provision of law, in providing
any assistance, the Fund shall reserve 40 percent of such assistance
for minority lending institutions.''.
(2) Definitions.--
(A) In general.--Section 103 of the Community
Development Banking and Financial Institutions Act of
1994 (12 U.S.C. 4702) is amended by adding at the end
the following:
``(22) Minority lending institution definitions.--
``(A) Minority.--The term `minority' means any
Black American, Hispanic American, Asian American,
Native American, Native Alaskan, Native Hawaiian, or
Pacific Islander.
``(B) Minority lending institution.--The term
`minority lending institution' means a community
development financial institution--
``(i) with respect to which a majority of
the total number of loans and a majority of the
value of investments of the community
development financial institution are directed
at minorities and other targeted populations;
``(ii) that is a minority depository
institution, as defined under section 308 of
the Financial Institutions Reform, Recovery,
and Enforcement Act of 1989 (12 U.S.C. 1463
note), or otherwise considered to be a minority
depository institution by the appropriate
Federal banking agency; or
``(iii) that is 51 percent owned by 1 or
more socially and economically disadvantaged
individuals.
``(C) Additional definitions.--In this paragraph,
the terms `other targeted populations' and `socially
and economically disadvantaged individual' shall have
the meaning given those terms by the Administrator.''.
(B) Temporary safe harbor for certain
institutions.--A community development financial
institution that is a minority depository institution
listed in the Federal Deposit Insurance Corporation's
Minority Depository Institutions List published for the
Second Quarter 2020 shall be deemed a ``minority
lending institution'' under paragraph (22) of section
103 of the Community Development Banking and Financial
Institutions Act of 1994 (12 U.S.C. 4702), as added by
subparagraph (A), for purposes of--
(i) any program carried out using
appropriations authorized for the Community
Development Financial Institutions Fund under
section 806; and
(ii) the Neighborhood Capital Investment
Program established under section 4003(i) of
the CARES Act.
(b) Office of Minority Lending Institutions.--Section 104 of the
Community Development Banking and Financial Institutions Act of 1994
(12 U.S.C. 4703) is amended by adding at the end the following:
``(l) Office of Minority Lending Institutions.--
``(1) Establishment.--There is established within the Fund
an Office of Minority Lending Institutions, which shall oversee
assistance provided by the Fund to minority lending
institutions.
``(2) Deputy director.--The head of the Office shall be the
Deputy Director of Minority Lending Institutions, who shall
report directly to the Administrator.''.
(c) Reporting on Minority Lending Institutions.--Section 117 of the
Community Development Banking and Financial Institutions Act of 1994
(12 U.S.C. 4716) is amended by adding at the end the following:
``(g) Reporting on Minority Lending Institutions.--Each report
required under subsection (a) shall include a description of the extent
to which assistance from the Fund is provided to minority lending
institutions.''.
(d) Submission of Data Relating to Diversity by Community
Development Financial Institutions.--Section 104 of the Community
Development Banking and Financial Institutions Act of 1994 (12 U.S.C.
4703) is amended by adding at the end the following:
``(l) Submission of Data Relating to Diversity.--
``(1) Definitions.--In this subsection--
``(A) the term `executive officer' has the meaning
given that term in section 230.501(f) of title 17, Code
of Federal Regulations, as in effect on the date of
enactment of this subsection; and
``(B) the term `veteran' has the meaning given that
term in section 101 of title 38, United States Code.
``(2) Submission of disclosure.--Each Fund applicant and
recipient shall provide the following:
``(A) Data, based on voluntary self-identification,
on the racial, ethnic, and gender composition of--
``(i) the board of directors of the
institution;
``(ii) nominees for the board of directors
of the institution; and
``(iii) the executive officers of the
institution.
``(B) The status of any member of the board of
directors of the institution, any nominee for the board
of directors of the institution, or any executive
officer of the institution, based on voluntary self-
identification, as a veteran.
``(C) Whether the board of directors of the
institution, or any committee of that board of
directors, has, as of the date on which the institution
makes a disclosure under this paragraph, adopted any
policy, plan, or strategy to promote racial, ethnic,
and gender diversity among--
``(i) the board of directors of the
institution;
``(ii) nominees for the board of directors
of the institution; or
``(iii) the executive officers of the
institution.
``(3) Annual report.--Not later than 18 months after the
date of enactment of this subsection, and annually thereafter,
the Fund shall submit to the Committee on Banking, Housing, and
Urban Affairs of the Senate and the Committee on Financial
Services of the House of Representatives, and make publicly
available on the website of the Fund, a report--
``(A) on the data and trends of the diversity
information made available pursuant to paragraph (2);
and
``(B) containing all administrative or legislative
recommendations of the Fund to enhance the
implementation of this title or to promote diversity
and inclusion within community development financial
institutions.''.
SEC. 810. CDFI BOND GUARANTEE REFORM.
Effective October 1, 2020, section 114A(e)(2)(B) of the Community
Development Banking and Financial Institutions Act of 1994 (12 U.S.C.
4713a(e)(2)(B)) is amended by striking ``$100,000,000'' and inserting
``$50,000,000''.
SEC. 811. REPORTS.
(a) In General.--The Secretary of the Treasury shall provide to the
appropriate committees of Congress--
(1) within 30 days of the end of each month commencing with
the first month in which transactions are made under a program
established under this title or the amendments made by this
title, a written report describing all of the transactions made
during the reporting period pursuant to the authorities granted
under this title or the amendments made by this title; and
(2) after the end of March and the end of September,
commencing March 31, 2021, a written report on all projected
costs and liabilities, all operating expenses, including
compensation for financial agents, and all transactions made by
the Community Development Financial Institutions Fund,
including participating institutions and amounts each
institution has received under each program described in
paragraph (1).
(b) Breakdown of Funds.--Each report required under subsection (a)
shall specify the amount of funds under each program described under
subsection (a)(1) that went to--
(1) minority depository institutions that are depository
institutions;
(2) minority depository institutions that are credit
unions;
(3) minority lending institutions;
(4) community development financial institution loan funds;
(5) community development financial institutions that are
depository institutions; and
(6) community development financial institutions that are
credit unions.
(c) Definitions.--In this section:
(1) Appropriate committees of congress.--The term
``appropriate committees of Congress'' means the Committee on
Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the Senate.
(2) Community development financial institution.--The term
``community development financial institution'' has the meaning
given that term under section 103 of the Community Development
Banking and Financial Institutions Act of 1994 (12 U.S.C.
4702).
(3) Credit union.--The term ``credit union'' means a State
credit union or a Federal credit union, as such terms are
defined, respectively, under section 101 of the Federal Credit
Union Act (12 U.S.C. 1752).
(4) Depository institution.--The term ``depository
institution'' has the meaning given that term under section 3
of the Federal Deposit Insurance Act (12 U.S.C. 1813).
(5) Minority depository institution.--The term ``minority
depository institution'' has the meaning given under section
308(b) of the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989 (12 U.S.C. 1463 note).
(6) Minority lending institution.--The term ``minority
lending institution'' has the meaning given that term under
section 103 of the Community Development Banking and Financial
Institutions Act of 1994, as amended by section 809 of this
Act.
SEC. 812. INSPECTOR GENERAL OVERSIGHT.
(a) In General.--The Inspector General of the Department of the
Treasury shall conduct, supervise, and coordinate audits and
investigations of any program established under this title or the
amendments made by this title.
(b) Reporting.--The Inspector General of the Department of the
Treasury shall issue a report not less frequently than 2 times per year
to Congress and the Secretary of the Treasury relating to the oversight
provided by the Office of the Inspector General, including any
recommendations for improvements to the programs described in
subsection (a).
SEC. 813. STUDY AND REPORT WITH RESPECT TO IMPACT OF PROGRAMS ON LOW-
AND MODERATE-INCOME AND MINORITY COMMUNITIES.
(a) Study.--The Secretary of the Treasury shall conduct a study of
the impact of the programs established under this title or any
amendment made by this title on low- and moderate-income and minority
communities.
(b) Report.--Not later than 18 months after the date of enactment
of this Act, the Secretary shall submit to Congress a report on the
results of the study conducted pursuant to subsection (a), which shall
include, to the extent possible, the results of the study disaggregated
by ethnic group.
(c) Information Provided to the Secretary.--Eligible institutions
that participate in any of the programs described in subsection (a)
shall provide the Secretary of the Treasury with such information as
the Secretary may require to carry out the study required by this
section.
SEC. 814. COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS FUND.
(a) Direct Appropriations.--There is appropriated, out of amounts
in the Treasury not otherwise appropriated, for an additional amount
for the ``Community Development Financial Institutions Fund Program
Account'' for the fiscal year ending September 30, 2021, $1,000,000,000
to prevent, prepare for, and response to coronavirus, domestically or
internationally.
(b) Criteria.--The Community Development Financial Institutions
Fund (in this section referred to as the ``Fund'') shall, using amounts
provided under subsection (a), provide grants using a formula that
takes into account criteria such as certification status, financial and
compliance performance, portfolio and balance sheet strength, and
program capacity.
(c) Set Aside.--Of amounts appropriated under subsection (a), not
less than $25,000,000 shall be for financial assistance, technical
assistance, and training and outreach programs designed to benefit
Native American, Native Hawaiian, and Alaska Native communities.
(d) Deadline.--The Fund shall make amounts provided under this
section available to grantees not later than 60 days after the date of
enactment of this Act.
(e) Administrative Expenses.--The Fund may use amounts appropriated
under subsection (a) for administrative expenses, including the
administration of programs of the Fund and the New Markets Tax Credit
Program under section 45D of the Internal Revenue Code of 1986.
(f) Emergency Designation.--
(1) In general.--The amounts provided under this section
are designated as an emergency requirement pursuant to section
4(g) of the Statutory Pay-As-You-Go Act of 2010 (2 U.S.C.
933(g)).
(2) Designation in senate.--In the Senate, this section is
designated as an emergency requirement pursuant to section
4112(a) of H. Con. Res. 71 (115th Congress), the concurrent
resolution on the budget for fiscal year 2018.
<all>
Introduced in Senate
Read twice and referred to the Committee on Finance.
Committee on Small Business and Entrepreneurship. Hearings held. Hearings printed: S.Hrg. 116-519.
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