[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 4321 Introduced in Senate (IS)]

<DOC>






116th CONGRESS
  2d Session
                                S. 4321

To establish the Paycheck Protection Program Second Draw Loan and amend 
 the 7(a) loan guaranty program for recovery sector business concerns, 
                        and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 27, 2020

Mr. Rubio (for himself and Ms. Collins) introduced the following bill; 
 which was read twice and referred to the Committee on Small Business 
                          and Entrepreneurship

_______________________________________________________________________

                                 A BILL


 
To establish the Paycheck Protection Program Second Draw Loan and amend 
 the 7(a) loan guaranty program for recovery sector business concerns, 
                        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.

    (a) Short Title.--This Act may be cited as the ``Continuing Small 
Business Recovery and Paycheck Protection Program Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Emergency rulemaking authority.
           TITLE I--PAYCHECK PROTECTION PROGRAM IMPROVEMENTS

Sec. 101. Additional eligible expenses.
Sec. 102. Lender safe harbor.
Sec. 103. Selection of covered period for forgiveness.
Sec. 104. Simplified application.
Sec. 105. Group insurance payments as payroll costs.
Sec. 106. Paycheck protection program second draw loans.
Sec. 107. Continued access to the paycheck protection program.
Sec. 108. Increased ability for paycheck protection program borrowers 
                            to request an increase in loan amount due 
                            to updated regulations.
Sec. 109. Calculation of maximum loan amount for farmers and ranchers 
                            under the paycheck protection program.
Sec. 110. Farm Credit System institutions.
Sec. 111. Definition of seasonal employer.
Sec. 112. Changes to the 7(a) loan guaranty program for recovery sector 
                            business concerns.
Sec. 113. Eligibility of 501(c)(6) organizations for loans under the 
                            paycheck protection program.
Sec. 114. Prohibition on use of loan proceeds for lobbying activities.
Sec. 115. Effective date; applicability.
Sec. 116. Bankruptcy provisions.
Sec. 117. Conflicts of interest.
              TITLE II--SMALL BUSINESS PROGRAMS GENERALLY

Sec. 121. Small business investment company program.
                       TITLE III--APPROPRIATIONS

Sec. 131. Commitment authority and appropriations.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Administration; administrator.--The terms 
        ``Administration'' and ``Administrator'' mean the Small 
        Business Administration and the Administrator thereof.
            (2) Small business concern.--The term ``small business 
        concern'' has the meaning given the term in section 3 of the 
        Small Business Act (15 U.S.C. 632).

SEC. 3. EMERGENCY RULEMAKING AUTHORITY.

     Not later than 30 days after the date of enactment of this Act, 
the Administrator shall issue regulations to carry out this Act and the 
amendments made by this Act without regard to the notice requirements 
under section 553(b) of title 5, United States Code.

           TITLE I--PAYCHECK PROTECTION PROGRAM IMPROVEMENTS

SEC. 101. ADDITIONAL ELIGIBLE EXPENSES.

    (a) Allowable Use of PPP Loan.--Section 7(a)(36)(F)(i) of the Small 
Business Act (15 U.S.C. 636(a)(36)(F)(i)) is amended--
            (1) in subclause (VI), by striking ``and'' at the end;
            (2) in subclause (VII), by striking the period at the end 
        and inserting a semicolon; and
            (3) by adding at the end the following:
                                    ``(VIII) covered operations 
                                expenditures, as defined in section 
                                1106(a) of the CARES Act (15 U.S.C. 
                                9005(a));
                                    ``(IX) covered property damage 
                                costs, as defined in such section 
                                1106(a);
                                    ``(X) covered supplier costs, as 
                                defined in such section 1106(a); and
                                    ``(XI) covered worker protection 
                                expenditures, as defined in such 
                                section 1106(a).''.
    (b) Loan Forgiveness.--Section 1106 of the CARES Act (15 U.S.C. 
9005) is amended--
            (1) in subsection (a)--
                    (A) by redesignating paragraphs (6), (7), and (8) 
                as paragraphs (10), (11), and (12), respectively;
                    (B) by redesignating paragraph (5) as paragraph 
                (8);
                    (C) by redesignating paragraph (4) as paragraph 
                (6);
                    (D) by redesignating paragraph (3) as paragraph 
                (4);
                    (E) by inserting after paragraph (2) the following:
            ``(3) the term `covered operations expenditure' means a 
        payment for any business software or cloud computing service 
        that facilitates business operations, product or service 
        delivery, the processing, payment, or tracking of payroll 
        expenses, human resources, sales and billing functions, or 
        accounting or tracking of supplies, inventory, records and 
        expenses;'';
                    (F) by inserting after paragraph (4), as so 
                redesignated, the following:
            ``(5) the term `covered property damage cost' means a cost 
        related to property damage and vandalism or looting due to 
        public disturbances that occurred during 2020 that was not 
        covered by insurance or other compensation;'';
                    (G) by inserting after paragraph (6), as so 
                redesignated, the following:
            ``(5) the term `covered supplier cost' means an expenditure 
        made by an entity to a supplier of goods pursuant to a contract 
        in effect before February 15, 2020 for the supply of goods that 
        are essential to the operations of the entity at the time at 
        which the expenditure is made;'';
                    (H) by inserting after paragraph (8), as so 
                redesignated, the following:
            ``(9) the term `covered worker protection expenditure'--
                    ``(A) means an operating or a capital expenditure 
                that is required to facilitate the adaptation of the 
                business activities of an entity to comply with 
                requirements established or guidance issued by the 
                Department of Health and Human Services, the Centers 
                for Disease Control, or the Occupational Safety and 
                Health Administration during the period beginning on 
                March 1, 2020 and ending December 31, 2020 related to 
                the maintenance of standards for sanitation, social 
                distancing, or any other worker or customer safety 
                requirement related to COVID-19;
                    ``(B) may include--
                            ``(i) the purchase, maintenance, or 
                        renovation of assets that create or expand--
                                    ``(I) a drive-through window 
                                facility;
                                    ``(II) an indoor, outdoor, or 
                                combined air or air pressure 
                                ventilation or filtration system;
                                    ``(III) a physical barrier such as 
                                a sneeze guard;
                                    ``(IV) an indoor, outdoor, or 
                                combined commercial real property;
                                    ``(V) an onsite or offsite health 
                                screening capability; or
                                    ``(VI) other assets relating to the 
                                compliance with the requirements or 
                                guidance described in subparagraph (A), 
                                as determined by the Administrator in 
                                consultation with the Secretary of 
                                Health and Human Services and the 
                                Secretary of Labor; and
                            ``(ii) the purchase of--
                                    ``(I) covered materials described 
                                in section 328.103(a) of title 44, Code 
                                of Federal Regulations, or any 
                                successor regulation;
                                    ``(II) particulate filtering 
                                facepiece respirators approved by the 
                                National Institute for Occupational 
                                Safety and Health, including those 
                                approved only for emergency use 
                                authorization; or
                                    ``(III) other kinds of personal 
                                protective equipment, as determined by 
                                the Administrator in consultation with 
                                the Secretary of Health and Human 
                                Services and the Secretary of Labor; 
                                and
                    ``(C) does not include residential real property or 
                intangible property;''; and
                    (I) in paragraph (11), as so redesignated--
                            (i) in subparagraph (C), by striking 
                        ``and'' at the end;
                            (ii) in subparagraph (D), by striking 
                        ``and'' at the end; and
                            (iii) by adding at the end the following:
                    ``(E) covered operations expenditures;
                    ``(F) covered property damage costs;
                    ``(G) covered supplier costs; and
                    ``(H) covered worker protection expenditures; 
                and'';
            (2) in subsection (b), by adding at the end the following:
            ``(5) Any covered operations expenditure.
            ``(6) Any covered property damage cost.
            ``(7) Any covered supplier cost.
            ``(8) Any covered worker protection expenditure.'';
            (3) in subsection (d)(8), by inserting ``any payment on any 
        covered operations expenditure, any payment on any covered 
        property damage cost, any payment on any covered supplier cost, 
        any payment on any covered worker protection expenditure,'' 
        after ``rent obligation,''; and
            (4) in subsection (e)--
                    (A) in paragraph (2), by inserting ``payments on 
                covered operations expenditures, payments on covered 
                property damage costs, payments on covered supplier 
                costs, payments on covered worker protection 
                expenditures,'' after ``lease obligations,''; and
                    (B) in paragraph (3)(B), by inserting ``make 
                payments on covered operations expenditures, make 
                payments on covered property damage costs, make 
                payments on covered supplier costs, make payments on 
                covered worker protection expenditures,'' after ``rent 
                obligation,''.

SEC. 102. LENDER SAFE HARBOR.

    Subsection (h) of section 1106 of the CARES Act (15 U.S.C. 9005) is 
amended to read as follows:
    ``(h) Hold Harmless.--
            ``(1) In general.--A lender may rely on any certification 
        or documentation submitted by an applicant for a covered loan 
        or an eligible recipient of a covered loan that--
                    ``(A) is submitted pursuant to any statutory 
                requirement relating to covered loans or any rule or 
                guidance issued to carry out any action relating to 
                covered loans; and
                    ``(B) attests that the applicant or eligible 
                recipient, as applicable, has accurately verified any 
                certification or documentation provided to the lender.
            ``(2) No enforcement action.--With respect to a lender that 
        relies on a certification or documentation described in 
        paragraph (1)--
                    ``(A) an enforcement action may not be taken 
                against the lender acting in good faith relating to 
                origination or forgiveness of a covered loan based on 
                such reliance; and
                    ``(B) the lender acting in good faith shall not be 
                subject to any penalties relating to origination or 
                forgiveness of a covered loan based on such 
                reliance.''.

SEC. 103. SELECTION OF COVERED PERIOD FOR FORGIVENESS.

    Section 1106 of the CARES Act (15 U.S.C. 9005) is amended--
            (1) by amending subsection (a)(3) to read as follows:
            ``(3) the term `covered period' means the period--
                    ``(A) beginning on the date of the origination of a 
                covered loan; and
                    ``(B) ending on a date selected by the eligible 
                recipient of the covered loan that occurs during the 
                period--
                            ``(i) beginning on the date that is 8 weeks 
                        after such date of origination; and
                            ``(ii) ending on December 31, 2020;''; and
            (2) by striking subsection (l).

SEC. 104. SIMPLIFIED APPLICATION.

    Section 1106 of the CARES Act (15 U.S.C. 9005), as amended by 
section 103 of this Act, is amended--
            (1) in subsection (e), in the matter preceding paragraph 
        (1), by striking ``An eligible'' and inserting ``Except as 
        provided in subsection (l), an eligible'';
            (2) in subsection (f), by inserting ``or the information 
        required under subsection (l), as applicable'' after 
        ``subsection (e)''; and
            (3) by adding at the end the following:
    ``(l) Simplified Application.--
            ``(1) Covered loans under $150,000.--
                    ``(A) In general.--Notwithstanding subsection (e), 
                with respect to a covered loan made to an eligible 
                recipient that is not more than $150,000, the covered 
                loan amount shall be forgiven under this section if the 
                eligible recipient--
                            ``(i) signs and submits to the lender an 
                        attestation that the eligible recipient made a 
                        good faith effort to comply with the 
                        requirements under section 7(a)(36) of the 
                        Small Business Act (15 U.S.C. 636(a)(36)); and
                            ``(ii) for the 3-year period following 
                        submission of the attestation under clause (i), 
                        retains records relevant to the attestation 
                        that prove compliance with those requirements.
                    ``(B) Demographic information.--An eligible 
                recipient of a covered loan described in subparagraph 
                (A) may complete and submit any form related to 
                borrower demographic information.
                    ``(C) Audit.--The Administrator may--
                            ``(i) review and audit covered loans 
                        described in subparagraph (A); and
                            ``(ii) in the case of fraud, ineligibility, 
                        or other material noncompliance with applicable 
                        loan or loan forgiveness requirements, modify--
                                    ``(I) the amount of a covered loan 
                                described in subparagraph (A); or
                                    ``(II) the loan forgiveness amount 
                                with respect to a covered loan 
                                described in subparagraph (A).
            ``(2) Covered loans between $150,000 and $2,000,000.--
                    ``(A) In general.--Notwithstanding subsection (e), 
                with respect to a covered loan made to an eligible 
                recipient that is more than $150,000 and not more than 
                $2,000,000--
                            ``(i) the eligible recipient seeking loan 
                        forgiveness under this section--
                                    ``(I) is not required to submit the 
                                supporting documentation described in 
                                paragraph (1) or (2) of subsection (e) 
                                or the certification described in 
                                subsection (e)(3)(A);
                                    ``(II) shall retain all relevant 
                                schedules, worksheets, and supporting 
                                documentation for the 3-year period 
                                following submission of the application 
                                for loan forgiveness; and
                                    ``(III) may complete and submit any 
                                form related to borrower demographic 
                                information;
                            ``(ii) review by the lender of an 
                        application submitted by the eligible recipient 
                        for loan forgiveness under this section shall 
                        be limited to whether the lender received a 
                        complete application, with all fields 
                        completed, initialed, or signed, as applicable; 
                        and
                            ``(iii) the lender shall--
                                    ``(I) accept the application 
                                submitted by the eligible recipient for 
                                loan forgiveness under this section; 
                                and
                                    ``(II) submit the application to 
                                the Administrator.
                    ``(B) Audit.--The Administrator may--
                            ``(i) review and audit covered loans 
                        described in subparagraph (A); and
                            ``(ii) in the case of fraud, ineligibility, 
                        or other material noncompliance with applicable 
                        loan or loan forgiveness requirements, modify--
                                    ``(I) the amount of a covered loan 
                                described in subparagraph (A); or
                                    ``(II) the loan forgiveness amount 
                                with respect to a covered loan 
                                described in subparagraph (A).
            ``(3) Audit plan.--
                    ``(A) In general.--Not later than 30 days after the 
                date of enactment of the Continuing Small Business 
                Recovery and Paycheck Protection Program 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 audit plan that details--
                            ``(i) the policies and procedures of the 
                        Administrator for conducting reviews and audits 
                        of covered loans; and
                            ``(ii) the metrics that the Administrator 
                        shall use to determine which covered loans will 
                        be audited for each category of covered loans 
                        described in paragraphs (1) and (2).
                    ``(B) Reports.--Not later than 30 days after the 
                date on which the Administrator submits the audit plan 
                required under subparagraph (A), and each month 
                thereafter, 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 the review and audit 
                activities of the Administrator under this subsection, 
                which shall include--
                            ``(i) the number of active reviews and 
                        audits;
                            ``(ii) the number of reviews and audits 
                        that have been ongoing for more than 60 days; 
                        and
                            ``(iii) any substantial changes made to the 
                        audit plan submitted under subparagraph (A).''.

SEC. 105. GROUP INSURANCE PAYMENTS AS PAYROLL COSTS.

    Section 7(a)(36)(A)(viii)(I)(aa)(EE) of the Small Business Act (15 
U.S.C. 636(a)(36)(A)(viii)(I)(aa)(EE)) is amended by inserting ``and 
other group insurance'' before ``benefits''.

SEC. 106. PAYCHECK PROTECTION PROGRAM SECOND DRAW LOANS.

    Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is 
amended by adding at the end the following:
            ``(37) Paycheck protection program second draw loans.--
                    ``(A) Definitions.--In this paragraph--
                            ``(i) the terms `community financial 
                        institutions', `credit union', `eligible self-
                        employed individual', `insured depository 
                        institution', `nonprofit organization', 
                        `payroll costs', `seasonal employer', and 
                        `veterans organization' have the meanings given 
                        those terms in paragraph (36), except that 
                        `eligible entity' shall be substituted for 
                        `eligible recipient' each place it appears in 
                        the definitions of those terms;
                            ``(ii) the term `covered loan' means a loan 
                        made under this paragraph;
                            ``(iii) the terms `covered mortgage 
                        obligation', `covered operating expenditure', 
                        `covered property damage cost', `covered rent 
                        obligation', `covered supplier cost', `covered 
                        utility payment', and `covered worker 
                        protection expenditure' have the meanings given 
                        those terms in section 1106(a) of the CARES Act 
                        (15 U.S.C. 9005(a));
                            ``(iv) the term `covered period' means the 
                        period beginning on the date of the origination 
                        of a covered loan and ending on December 31, 
                        2020;
                            ``(v) 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));
                            ``(vi) the term `eligible entity'--
                                    ``(I) means any business concern, 
                                nonprofit organization, veterans 
                                organization, Tribal business concern, 
                                eligible self-employed individual, sole 
                                proprietor, independent contractor, or 
                                small agricultural cooperative that--
                                            ``(aa)(AA) with respect to 
                                        a business concern, would 
                                        qualify as a small business 
                                        concern by the annual receipts 
                                        size standard (if applicable) 
                                        established by section 121.201 
                                        of title 13, Code of Federal 
                                        Regulations, or any successor 
                                        regulation; or
                                            ``(BB) if the entity does 
                                        not qualify as a small business 
                                        concern, meets the alternative 
                                        size standard established under 
                                        section 3(a)(5);
                                            ``(bb) employs not more 
                                        than 300 employees; and
                                            ``(cc)(AA) except as 
                                        provided in subitems (BB), 
                                        (CC), and (DD), 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 
                                        entity during the same quarter 
                                        in 2019;
                                            ``(BB) if the entity 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 entity during the third or 
                                        fourth quarter of 2019;
                                            ``(CC) if the entity 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 entity 
                                        during the fourth quarter of 
                                        2019; or
                                            ``(DD) if the entity 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 
                                        entity during the first quarter 
                                        of 2020; and
                                    ``(II) does not include--
                                            ``(aa) an issuer, the 
                                        securities of which are listed 
                                        on an exchange registered a 
                                        national securities exchange 
                                        under section 6 of the 
                                        Securities Exchange Act of 1934 
                                        (15 U.S.C. 78f);
                                            ``(bb) any entity that--

                                                    ``(AA) is a type of 
                                                business concern 
                                                described in subsection 
                                                (b), (c), (d), (e), 
                                                (f), (h), (l) (m), (p), 
                                                (q), (r), or (s) of 
                                                section 120.110 of 
                                                title 13, Code of 
                                                Federal Regulations, or 
                                                any successor 
                                                regulation;

                                                    ``(BB) is a type of 
                                                business concern 
                                                described in section 
                                                120.110(g) of title 13, 
                                                Code of Federal 
                                                Regulations, or any 
                                                successor regulation, 
                                                except as otherwise 
                                                provided in the interim 
                                                final rule of the 
                                                Administration entitled 
                                                `Business Loan Program 
                                                Temporary Changes; 
                                                Paycheck Protection 
                                                Program--Additional 
                                                Eligibility Criteria 
                                                and Requirements for 
                                                Certain Pledges of 
                                                Loans' (85 Fed. Reg. 
                                                21747 (April 20, 
                                                2020));

                                                    ``(CC) is a type of 
                                                business concern 
                                                described in section 
                                                120.110(i) of title 13, 
                                                Code of Federal 
                                                Regulations, or any 
                                                successor regulation, 
                                                except if the business 
                                                concern is an 
                                                organization described 
                                                in paragraph 
                                                (36)(D)(vii);

                                                    ``(DD) is a type of 
                                                business concern 
                                                described in section 
                                                120.110(j) of title 13, 
                                                Code of Federal 
                                                Regulations, or any 
                                                successor regulation, 
                                                except as otherwise 
                                                provided in the interim 
                                                final rules of the 
                                                Administration entitled 
                                                `Business Loan Program 
                                                Temporary Changes; 
                                                Paycheck Protection 
                                                Program--Eligibility of 
                                                Certain Electric 
                                                Cooperatives' (85 Fed. 
                                                Reg. 29847 (May 19, 
                                                2020)) and `Business 
                                                Loan Program Temporary 
                                                Changes; Paycheck 
                                                Protection Program--
                                                Eligibility of Certain 
                                                Telephone Cooperatives' 
                                                (85 Fed. Reg. 35550 
                                                (June 11, 2020)) or any 
                                                other guidance or rule 
                                                issued or that may be 
                                                issued by the 
                                                Administrator;

                                                    ``(EE) is a type of 
                                                business concern 
                                                described in section 
                                                120.110(n) of title 13, 
                                                Code of Federal 
                                                Regulations, or any 
                                                successor regulation, 
                                                except as otherwise 
                                                provided in the interim 
                                                final rule of the 
                                                Administration entitled 
                                                `Business Loan Program 
                                                Temporary Changes; 
                                                Paycheck Protection 
                                                Program--Additional 
                                                Eligibility Revisions 
                                                to First Interim Final 
                                                Rule' (85 Fed. Reg. 
                                                38301 (June 26, 2020)) 
                                                or any other guidance 
                                                or rule issued or that 
                                                may be issued by the 
                                                Administrator;

                                                    ``(FF) is a type of 
                                                business concern 
                                                described in section 
                                                120.110(o) of title 13, 
                                                Code of Federal 
                                                Regulations, or any 
                                                successor regulation, 
                                                except as otherwise 
                                                provided in any 
                                                guidance or rule issued 
                                                or that may be issued 
                                                by the Administrator; 
                                                or

                                                    ``(GG) is an entity 
                                                that is organized for 
                                                research or for 
                                                engaging in advocacy in 
                                                areas such as public 
                                                policy or political 
                                                strategy or otherwise 
                                                describes itself as a 
                                                think tank in any 
                                                public documents;

                                                    ``(HH) is an entity 
                                                that would be described 
                                                in the subsections 
                                                listed in subitems (AA) 
                                                through (GG) if the 
                                                entity were a business 
                                                concern; or

                                                    ``(II) is assigned, 
                                                or was approved for a 
                                                loan under paragraph 
                                                (36) with, a North 
                                                American Industry 
                                                Classification System 
                                                code beginning with 52;

                                            ``(cc) any business concern 
                                        or entity primarily engaged in 
                                        political or lobbying 
                                        activities, which shall include 
                                        any entity that is organized 
                                        for research or for engaging in 
                                        advocacy in areas such as 
                                        public policy or political 
                                        strategy or otherwise describes 
                                        itself as a think tank in any 
                                        public documents; or
                                            ``(dd) any business concern 
                                        or entity--

                                                    ``(AA) for which an 
                                                entity created in or 
                                                organized under the 
                                                laws of the People's 
                                                Republic of China or 
                                                the Special 
                                                Administrative Region 
                                                of Hong Kong, or that 
                                                has significant 
                                                operations in the 
                                                People's Republic of 
                                                China or the Special 
                                                Administrative Region 
                                                of Hong Kong, owns or 
                                                holds, directly or 
                                                indirectly, not less 
                                                than 20 percent of the 
                                                economic interest of 
                                                the business concern or 
                                                entity, including as 
                                                equity shares or a 
                                                capital or profit 
                                                interest in a limited 
                                                liability company or 
                                                partnership; or

                                                    ``(BB) that 
                                                retains, as a member of 
                                                the board of directors 
                                                of the business 
                                                concern, a person who 
                                                is a resident of the 
                                                People's Republic of 
                                                China; and

                            ``(vii) the term `Tribal business concern' 
                        means a Tribal business concern described in 
                        section 31(b)(2)(C).
                    ``(B) Loans.--Except as otherwise provided in this 
                paragraph, the Administrator may guarantee covered 
                loans to eligible entities under the same terms, 
                conditions, and processes as a loan made under 
                paragraph (36).
                    ``(C) Maximum loan amount.--
                            ``(i) In general.--Except as otherwise 
                        provided in this subparagraph, the maximum 
                        amount of a covered loan made to an eligible 
                        entity is the lesser of--
                                    ``(I) the product obtained by 
                                multiplying--
                                            ``(aa) the average total 
                                        monthly payment for payroll 
                                        costs incurred or paid by the 
                                        eligible entity during the 1-
                                        year period before the date on 
                                        which the loan is made; by
                                            ``(bb) 2.5; or
                                    ``(II) $2,000,000.
                            ``(ii) Seasonal employers.--The maximum 
                        amount of a covered loan made to an eligible 
                        entity that is a seasonal employer is the 
                        lesser of--
                                    ``(I) the product obtained by 
                                multiplying--
                                            ``(aa) at the election of 
                                        the eligible entity, the 
                                        average total monthly payments 
                                        for payroll costs incurred or 
                                        paid by the eligible entity--

                                                    ``(AA) for a 12-
                                                week period beginning 
                                                February 15, 2019 or 
                                                March 1, 2019 and 
                                                ending June 30, 2019; 
                                                or

                                                    ``(BB) for a 
                                                consecutive 12-week 
                                                period between May 1, 
                                                2019 and September 15, 
                                                2019; by

                                            ``(bb) 2.5; or
                                    ``(II) $1,000,000.
                            ``(iii) New entities.--The maximum amount 
                        of a covered loan made to an eligible entity 
                        that did not exist during the 1-year period 
                        preceding February 15, 2020 is the lesser of--
                                    ``(I) the product obtained by 
                                multiplying--
                                            ``(aa) the quotient 
                                        obtained by dividing--

                                                    ``(AA) the sum of 
                                                the total monthly 
                                                payments by the 
                                                eligible entity for 
                                                payroll costs paid or 
                                                incurred by the 
                                                eligible entity as of 
                                                the date on which the 
                                                eligible entity applies 
                                                for the covered loan; 
                                                by

                                                    ``(BB) the number 
                                                of months in which 
                                                those payroll costs 
                                                were paid or incurred; 
                                                by

                                            ``(bb) 2.5; or
                                    ``(II) $2,000,000.
                            ``(iv) Business concerns with more than 1 
                        physical location.--
                                    ``(I) In general.--Any eligible 
                                entity that employs not more than 300 
                                employees per physical location of the 
                                eligible entity and that is assigned a 
                                North American Industry Classification 
                                System Code beginning with 72 at the 
                                time of disbursal shall be eligible to 
                                receive a covered loan.
                                    ``(II) Limit for multiple 
                                locations.--With respect to an eligible 
                                entity with more than 1 physical 
                                location, the total amount of all 
                                covered loans shall be not more than 
                                $2,000,000.
                            ``(v) Loan number limitation.--An eligible 
                        entity may only receive 1 covered loan.
                            ``(vi) 90 day rule for maximum loan 
                        amount.--The maximum aggregate loan amount of 
                        loans guaranteed under this subsection that are 
                        approved for an eligible entity (including any 
                        affiliates) within 90 days of approval of 
                        another loan under this subsection for the 
                        eligible entity (including any affiliates) 
                        shall not exceed $10,000,000.
                    ``(D) Exception from certain certification 
                requirements.--An eligible entity applying for a 
                covered loan shall not be required to make the 
                certification described in subclause (III) or (IV) of 
                paragraph (36)(G)(i).
                    ``(E) Fee waiver.--With respect to a covered loan--
                            ``(i) in lieu of the fee otherwise 
                        applicable under paragraph (23)(A), the 
                        Administrator shall collect no fee; and
                            ``(ii) in lieu of the fee otherwise 
                        applicable under paragraph (18)(A), the 
                        Administrator shall collect no fee.
                    ``(F) Eligible churches and religious 
                organizations.--
                            ``(i) Sense of congress.--It is the sense 
                        of Congress that the interim final rule of the 
                        Administration entitled `Business Loan Program 
                        Temporary Changes; Paycheck Protection Program' 
                        (85 Fed. Reg. 20817 (April 15, 2020)) properly 
                        clarified the eligibility of churches and 
                        religious organizations for loans made under 
                        paragraph (36).
                            ``(ii) Applicability of prohibition.--The 
                        prohibition on eligibility established by 
                        section 120.110(k) of title 13, Code of Federal 
                        Regulations, or any successor regulation, shall 
                        not apply to a covered loan.
                    ``(G) Gross receipts for nonprofit and veterans 
                organizations.--For purposes of calculating gross 
                receipts under subparagraph (A)(vi)(I)(cc) for an 
                entity that is a nonprofit organization or a veterans 
                organization, gross receipts--
                            ``(i) shall include proceeds from 
                        fundraising events, federated campaigns, gifts, 
                        donor-advised funds, and funds from similar 
                        sources; and
                            ``(ii) shall not include--
                                    ``(I) Federal grants (excluding any 
                                loan forgiveness on loans received 
                                under paragraph (36) or this paragraph;
                                    ``(II) revenues from a supporting 
                                organization;
                                    ``(III) grants from private 
                                foundations that are disbursed over the 
                                course of more than 1 calendar year; or
                                    ``(IV) any contribution of property 
                                other than money, stocks, bonds, and 
                                other securities, provided that the 
                                non-cash contribution is not sold by 
                                the organization in a transaction 
                                unrelated to the tax-exempt purpose of 
                                the organization.
                    ``(H) Loan forgiveness.--
                            ``(i) In general.--Except as provided 
                        otherwise provided in this subparagraph, an 
                        eligible entity shall be eligible for 
                        forgiveness of indebtedness on a covered loan 
                        in the same manner as an eligible recipient 
                        with respect to a loan made under paragraph 
                        (36), as described in section 1106 of the CARES 
                        Act (15 U.S.C. 9005).
                            ``(ii) Forgiveness amount.--An eligible 
                        entity shall be eligible for forgiveness of 
                        indebtedness on a covered loan in an amount 
                        equal to the sum of the following costs 
                        incurred or expenditures made during the 
                        covered period:
                                    ``(I) Payroll costs.
                                    ``(II) Any payment of interest on 
                                any covered mortgage obligation (which 
                                shall not include any prepayment of or 
                                payment of principal on a covered 
                                mortgage obligation).
                                    ``(III) Any covered operations 
                                expenditure.
                                    ``(IV) Any covered property damage 
                                cost.
                                    ``(V) Any payment on any covered 
                                rent obligation.
                                    ``(VI) Any covered utility payment.
                                    ``(VII) Any covered supplier cost.
                                    ``(VIII) Any covered worker 
                                protection expenditure.
                            ``(iii) Limitation on forgiveness for all 
                        eligible entities.--The forgiveness amount 
                        under this subparagraph shall be equal to the 
                        lesser of--
                                    ``(I) the amount described in 
                                clause (ii); and
                                    ``(II) the amount equal to the 
                                quotient obtained by dividing--
                                            ``(aa) the amount of the 
                                        covered loan used for payroll 
                                        costs during the covered 
                                        period; and
                                            ``(bb) 0.60.
                    ``(I) Lender eligibility.--Except as otherwise 
                provided in this paragraph, a lender approved to make 
                loans under paragraph (36) may make covered loans under 
                the same terms and conditions as in paragraph (36).
                    ``(J) Reimbursement for loan processing and 
                servicing.--The Administrator shall reimburse a lender 
                authorized to make a covered loan in an amount that 
                is--
                            ``(i) 3 percent of the principal amount of 
                        the financing of the covered loan up to 
                        $350,000; and
                            ``(ii) 1 percent of the principal amount of 
                        the financing of the covered loan above 
                        $350,000, if applicable.
                    ``(K) Set aside for small entities.--Not less than 
                $25,000,000,000 of the total amount of covered loans 
                guaranteed by the Administrator shall be made to 
                eligible entities with not more than 10 employees as of 
                February 15, 2020.
                    ``(L) Set aside for community financial 
                institutions, small insured depository institutions, 
                credit unions, and farm credit system institutions.--
                Not less than $10,000,000,000 of the total amount of 
                covered loans guaranteed by the Administrator shall be 
                made by--
                            ``(i) community financial institutions;
                            ``(ii) insured depository institutions with 
                        consolidated assets of less than 
                        $10,000,000,000;
                            ``(iii) credit unions with consolidated 
                        assets of less than $10,000,000,000; and
                            ``(iv) institutions of the Farm Credit 
                        System chartered under the Farm Credit Act of 
                        1971 (12 U.S.C. 2001 et seq.) with consolidated 
                        assets of less than $10,000,000,000 (not 
                        including the Federal Agricultural Mortgage 
                        Corporation).
                    ``(M) Publication of guidance.--Not later than 10 
                days after the date of enactment of this paragraph, the 
                Administrator shall issue guidance addressing barriers 
                to accessing capital for minority, underserved, 
                veteran, and women-owned business concerns for the 
                purpose of ensuring equitable access to covered loans.
                    ``(N) Standard operating procedure.--The 
                Administrator shall, to the maximum extent practicable, 
                allow a lender approved to make covered loans to use 
                existing program guidance and standard operating 
                procedures for loans made under this subsection.
                    ``(O) Compliance with oversight requirements.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), on and after the date of enactment 
                        of this paragraph, the Administrator shall 
                        comply with any data or information requests or 
                        inquiries made by the Comptroller General of 
                        the United States or the Inspector General of 
                        any agency not later than 30 days (or such 
                        later date as the Comptroller General or 
                        Inspector General, as applicable, may specify) 
                        after receiving the request or inquiry.
                            ``(ii) Exception.--If the Administrator is 
                        unable to comply with a request or inquiry 
                        described in clause (i) within the 30-day 
                        period or, if applicable, later period 
                        described in that clause, the Administrator 
                        shall, during that 30-day (or later) period, 
                        submit to the Committee on Small Business and 
                        Entrepreneurship of the Senate and the 
                        Committee on Small Business of the House of 
                        Representatives a notification that includes a 
                        detailed justification for the inability of the 
                        Administrator to comply with the request or 
                        inquiry.
                    ``(P) Prohibition on use of proceeds for lobbying 
                activities.--None of the proceeds of a covered loan may 
                be used for lobbying activities, as defined in section 
                3 of the Lobbying Disclosure Act of 1995 (2 U.S.C. 
                1602).''.

SEC. 107. CONTINUED ACCESS TO THE PAYCHECK PROTECTION PROGRAM.

    (a) In General.--Section 7(a)(36)(E)(ii) of the Small Business Act 
(15 U.S.C. 636(a)(36)(E)(ii)) is amended by striking ``$10,000,000'' 
and inserting ``$2,000,000''.
    (b) Applicability of Maximum Loan Amount Calculation.--
            (1) Definitions.--In this subsection, the terms ``covered 
        loan'' and ``eligible recipient'' have the meanings given those 
        terms in section 7(a)(36) of the Small Business Act (15 U.S.C. 
        636(a)(36)).
            (2) Applicability.--The amendment made by subsection (a) 
        shall apply only with respect to a covered loan applied for by 
        an eligible recipient on or after the date of enactment of this 
        Act.

SEC. 108. INCREASED ABILITY FOR PAYCHECK PROTECTION PROGRAM BORROWERS 
              TO REQUEST AN INCREASE IN LOAN AMOUNT DUE TO UPDATED 
              REGULATIONS.

    (a) Definitions.--In this section, the terms ``covered loan'' and 
``eligible recipient'' have the meanings given those terms in section 
7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36)).
    (b) Increased Amount.--Notwithstanding the interim final rule 
issued by the Administration entitled ``Business Loan Program Temporary 
Changes; Paycheck Protection Program--Loan Increases'' (85 Fed. Reg. 
29842 (May 19, 2020)), an eligible recipient of a covered loan that is 
eligible for an increased covered loan amount as a result of any 
interim final rule that allows for covered loan increases may submit a 
request for an increase in the covered loan amount even if--
            (1) the initial covered loan amount has been fully 
        disbursed; or
            (2) the lender of the initial covered loan has submitted to 
        the Administration a Form 1502 report related to the covered 
        loan.

SEC. 109. CALCULATION OF MAXIMUM LOAN AMOUNT FOR FARMERS AND RANCHERS 
              UNDER THE PAYCHECK PROTECTION PROGRAM.

    (a) In General.--Section 7(a)(36) of the Small Business Act (15 
U.S.C. 636(a)(36)), as amended by section 107 of this Act, is amended--
            (1) in subparagraph (E), in the matter preceding clause 
        (i), by striking ``During'' and inserting ``Except as provided 
        in subparagraph (T), during''; and
            (2) by adding at the end the following:
                    ``(T) Calculation of maximum loan amount for 
                farmers and ranchers.--
                            ``(i) Definition.--In this subparagraph, 
                        the term `covered recipient' means an eligible 
                        recipient that--
                                    ``(I) operates as a sole 
                                proprietorship or as an independent 
                                contractor, or is an eligible self-
                                employed individual;
                                    ``(II) reports farm income or 
                                expenses on a Schedule F (or any 
                                equivalent successor schedule); and
                                    ``(III) was in business during the 
                                period beginning on February 15, 2019 
                                and ending on June 30, 2019.
                            ``(ii) No employees.--With respect to 
                        covered recipient without employees, the 
                        maximum covered loan amount shall be the lesser 
                        of--
                                    ``(I) the sum of--
                                            ``(aa) the product obtained 
                                        by multiplying--

                                                    ``(AA) the gross 
                                                income of the covered 
                                                recipient in 2019, as 
                                                reported on a Schedule 
                                                F (or any equivalent 
                                                successor schedule), 
                                                that is not more than 
                                                $100,000, divided by 
                                                12; and

                                                    ``(BB) 2.5; and

                                            ``(bb) the outstanding 
                                        amount of a loan under 
                                        subsection (b)(2) that was made 
                                        during the period beginning on 
                                        January 31, 2020 and ending on 
                                        April 3, 2020 that the borrower 
                                        intends to refinance under the 
                                        covered loan, not including any 
                                        amount of any advance under the 
                                        loan that is not required to be 
                                        repaid; or
                                    ``(II) $2,000,000.
                            ``(iii) With employees.--With respect to a 
                        covered recipient with employees, the maximum 
                        covered loan amount shall be calculated using 
                        the formula described in subparagraph (E), 
                        except that the gross income of the covered 
                        recipient described in clause (ii)(I)(aa)(AA) 
                        of this subparagraph, as divided by 12, shall 
                        be added to the sum calculated under 
                        subparagraph (E)(i)(I).
                            ``(iv) Recalculation.--A lender that made a 
                        covered loan to a covered recipient before the 
                        date of enactment of this subparagraph may, at 
                        the request of the covered recipient--
                                    ``(I) recalculate the maximum loan 
                                amount applicable to that covered loan 
                                based on the formula described in 
                                clause (ii) or (iii), as applicable, if 
                                doing so would result in a larger 
                                covered loan amount; and
                                    ``(II) provide the covered 
                                recipient with additional covered loan 
                                amounts based on that recalculation.''.

SEC. 110. 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 
        paragraphs (36) and (37) 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)) or any similar 
        requirement referenced in that interim final rule in 
        implementing such paragraph (37).
            (2) Applicability of certain loan requirements.--For 
        purposes of making loans under paragraph (36) or (37) 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) and subparagraph (H) of such 
        paragraph (37), 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) or (37) 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) and subparagraph (H) of such paragraph 
                        (37); 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) or (37) of section 7(a) of 
                        the Small Business Act (15 U.S.C. 636(a)).
            (4) Reservation of loan guarantees.--Section 7(a)(36)(S) of 
        the Small Business Act (15 U.S.C. 636(a)(36)(S)) is amended--
                    (A) in clause (i)--
                            (i) in subclause (I), by striking ``and'' 
                        at the end;
                            (ii) in subclause (II), by striking the 
                        period at the end and inserting ``; and''; and
                            (iii) by adding at the end the following:
                                    ``(III) institutions of the Farm 
                                Credit System chartered under the Farm 
                                Credit Act of 1971 (12 U.S.C. 2001 et 
                                seq.) with consolidated assets of not 
                                less than $10,000,000,000 and less than 
                                $50,000,000,000.''; and
                    (B) in clause (ii)--
                            (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) institutions of the Farm 
                                Credit System chartered under the Farm 
                                Credit Act of 1971 (12 U.S.C. 2001 et 
                                seq.) with consolidated assets of less 
                                than $10,000,000,000.''.

SEC. 111. DEFINITION OF SEASONAL EMPLOYER.

    (a) PPP Loans.--Section 7(a)(36)(A) of the Small Business Act (15 
U.S.C. 636(a)(36)(A)) is amended--
            (1) in clause (xi), by striking ``and'' at the end;
            (2) in clause (xii), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
                            ``(xiii) the term `seasonal employer' means 
                        an eligible recipient that--
                                    ``(I) does not operate for more 
                                than 7 months in any calendar year; or
                                    ``(II) during the preceding 
                                calendar year, had gross receipts for 
                                any 6 months of that year that were not 
                                more than 33.33 percent of the gross 
                                receipts of the employer for the other 
                                6 months of that year.''.
    (b) Loan Forgiveness.--Paragraph (12) of section 1106(a) of the 
CARES Act (15 U.S.C. 9005(a)), as so redesignated by by section 101(b) 
of this Act, is amended to read as follows:
            ``(12) the terms `payroll costs' and `seasonal employer' 
        have the meanings given those terms in section 7(a)(36) of the 
        Small Business Act (15 U.S.C. 636(a)(36)).''.

SEC. 112. CHANGES TO THE 7(A) LOAN GUARANTY PROGRAM FOR RECOVERY SECTOR 
              BUSINESS CONCERNS.

    Section 7(a) of the Small Business Act (15 U.S.C. 636(a)), as 
amended by section 106 of this Act, is amended by adding at the end the 
following:
            ``(38) Recovery sector loans.--
                    ``(A) Definitions.--In this paragraph--
                            ``(i) the term `covered loan' means a loan 
                        made under this paragraph;
                            ``(ii) the term `covered population census 
                        tract' means a population census tract for 
                        which--
                                    ``(I) in the case of a tract that 
                                is not located within a metropolitan 
                                area, the median income does not exceed 
                                80 percent of the statewide (or, with 
                                respect to a possession or territory of 
                                the United States, the possession- or 
                                territory-wide) median family income; 
                                or
                                    ``(II) in the case of a tract that 
                                is located within a metropolitan area, 
                                the median family income does not 
                                exceed 80 percent of the greater of the 
                                statewide (or, with respect to a 
                                possession or territory of the United 
                                States, the possession- or territory-
                                wide) median family income and the 
                                metropolitan area median family income;
                            ``(iii) the term `covered seasonal 
                        employer' means a small business concern that--
                                    ``(I) is a seasonal employer, as 
                                defined in paragraph (36); and
                                    ``(II) during the preceding 
                                calendar year--
                                            ``(aa) had gross receipts 
                                        as described in paragraph 
                                        (36)(A)(xiii)(II); and
                                            ``(bb) employed not more 
                                        than 250 employees during not 
                                        fewer than 5 months out of that 
                                        year;
                            ``(iv) the term `eligible entity'--
                                    ``(I) means any small business 
                                concern that--
                                            ``(aa) except with respect 
                                        to a covered seasonal employer, 
                                        employs not more than 500 
                                        employees;
                                            ``(bb)(AA) except as 
                                        provided in subitems (BB), 
                                        (CC), and (DD), had gross 
                                        receipts during the first or 
                                        second quarter in 2020 that are 
                                        less than 50 percent of the 
                                        gross receipts of the business 
                                        concern during the same quarter 
                                        in 2019;
                                            ``(BB) if the small 
                                        business 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 small business concern 
                                        during the third or fourth 
                                        quarter of 2019;
                                            ``(CC) if the small 
                                        business 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 small 
                                        business concern during the 
                                        fourth quarter of 2019; or
                                            ``(DD) if the small 
                                        business concern was not in 
                                        business during the first or 
                                        second quarter of 2020, had 
                                        gross receipts during any 2-
                                        month period during 2020 that 
                                        are less than 50 percent of the 
                                        amount of the gross receipts of 
                                        the small business concern 
                                        during any other 2-month period 
                                        during 2020; and
                                            ``(cc)(AA) is a covered 
                                        seasonal employer seeking a 
                                        covered loan of not more than 
                                        $1,000,000; or
                                            ``(BB) is a small business 
                                        concern the principal place of 
                                        business of which is in, and 
                                        not less than 50 percent of the 
                                        total gross income of which is 
                                        derived from the active conduct 
                                        of the business concern within, 
                                        a small business low-income 
                                        census tract; and
                                    ``(II) does not include--
                                            ``(aa) an entity described 
                                        in paragraph (37)(A)(vi)(II);
                                            ``(bb) any entity that 
                                        received a loan under paragraph 
                                        (37); or
                                            ``(cc) any entity that 
                                        received a loan under paragraph 
                                        (36) after the date of 
                                        enactment of this paragraph; 
                                        and
                            ``(v) the term `small business low-income 
                        census tract'--
                                    ``(I) means--
                                            ``(aa) a covered population 
                                        census tract for which the 
                                        poverty rate is not less than 
                                        20 percent; or
                                            ``(bb) an area--

                                                    ``(AA) that is not 
                                                tracted as a population 
                                                census tract;

                                                    ``(BB) for which 
                                                the poverty rate in the 
                                                equivalent county 
                                                division (as defined by 
                                                the Bureau of the 
                                                Census) is not less 
                                                than 20 percent; and

                                                    ``(CC) for which 
                                                the median income in 
                                                the equivalent county 
                                                division (as defined by 
                                                the Bureau of the 
                                                Census) does not exceed 
                                                80 percent of the 
                                                statewide (or, with 
                                                respect to a possession 
                                                or territory of the 
                                                United States, the 
                                                possession- or 
                                                territory-wide) median 
                                                income; and

                                    ``(II) does not include any area or 
                                population census tract with a median 
                                family income that is not less than 120 
                                percent of the median family income in 
                                the United States, according to the 
                                most recent American Communities Survey 
                                data from the Bureau of the Census.
                    ``(B) Loans.--Except as otherwise provided in this 
                paragraph, the Administrator may guarantee covered 
                loans made to eligible entities--
                            ``(i) under the same terms, conditions, and 
                        processes as a loan made under this subsection; 
                        and
                            ``(ii) to meet working capital needs, 
                        acquire fixed assets, or refinance existing 
                        indebtedness while recovering from the COVID-19 
                        pandemic.
                    ``(C) Maximum loan amount.--The maximum amount of a 
                covered loan made to an eligible entity shall be the 
                lesser of--
                            ``(i) $10,000,000; or
                            ``(ii) the amount equal to 200 percent of 
                        the average annual receipts of the eligible 
                        entity.
                    ``(D) Loan number limitation.--An eligible entity 
                may only receive 1 covered loan.
                    ``(E) 90 day rule for maximum loan amount.--The 
                maximum aggregate loan amount of loans guaranteed under 
                this subsection that are approved for an eligible 
                entity (including any affiliates) within 90 days of 
                approval of another loan under this subsection for the 
                eligible entity (including any affiliates) shall not 
                exceed $10,000,000.
                    ``(F) Application deadline.--An eligible entity 
                desiring a covered loan shall submit an application not 
                later than December 31, 2020.
                    ``(G) Fee waiver.--With respect to a covered loan--
                            ``(i) in lieu of the fee otherwise 
                        applicable under paragraph (23)(A), the 
                        Administrator shall collect no fee; and
                            ``(ii) in lieu of the fee otherwise 
                        applicable under paragraph (18)(A), the 
                        Administrator shall collect no fee.
                    ``(H) Loan terms.--
                            ``(i) In general.--In order to receive a 
                        covered loan, an eligible entity shall not be 
                        required to show that the eligible entity is 
                        unable to obtain credit elsewhere.
                            ``(ii) Maturity and interest rate.--A 
                        covered loan shall--
                                    ``(I) have a maturity of 20 years; 
                                and
                                    ``(II) bear an interest rate of 
                                equal to the sum of--
                                            ``(aa) the Secured 
                                        Overnight Financing Rate in 
                                        effect for each of the days in 
                                        the relevant quarter that 
                                        interest is charged, as 
                                        compiled and released by the 
                                        Federal Reserve Bank of New 
                                        York; and
                                            ``(bb) 300 basis points.
                            ``(iii) Guarantee.--In an agreement to 
                        participate in a covered loan on a deferred 
                        basis, the participation by the Administration 
                        shall be 100 percent of the covered loan.
                            ``(iv) Subsidy for interest payments.--
                                    ``(I) In general.--The 
                                Administrator shall pay the amount of 
                                interest that is owed on a covered loan 
                                in regular servicing status for the 
                                maturity of the loan such that the 
                                interest rate paid by the eligible 
                                entity is, at all times, equal to a 
                                rate of 1 percent.
                                    ``(II) Timing of payment.--The 
                                Administrator shall--
                                            ``(aa) begin making 
                                        payments under subclause (I) 
                                        not later than 30 days after 
                                        the date on which the first 
                                        such payment is due; and
                                            ``(bb) make payments 
                                        without regard to the payment 
                                        deferral described in clause 
                                        (iv).
                                    ``(III) Application of payment.--
                                Any payment made by the Administrator 
                                under subclause (I) shall be applied to 
                                the covered loan such that the eligible 
                                entity is relieved of the obligation to 
                                pay that amount.
                            ``(v) Payment deferral.--
                                    ``(I) In general.--No payment of 
                                principal or interest shall be due on a 
                                covered loan for the first 2 years of 
                                the covered loan.
                                    ``(II) Additional deferral.--After 
                                the 2-year deferral period under 
                                subclause (I), the Administrator may 
                                grant not more than an additional 2 
                                years of principal deferral to the 
                                eligible entity if the eligible entity 
                                is certified by the Administrator and 
                                the Secretary as economically 
                                distressed based on publicly available 
                                criteria established by the 
                                Administrator.
                            ``(vi) Limitation on changes in terms.--
                        Notwithstanding any other provision of this 
                        subsection, for a covered loan, the 
                        Administrator shall not approve any increase in 
                        loan amount or change in guaranty percentage, 
                        interest rate, interest accrual method, or 
                        maturity, except for such changes as may be 
                        necessary for prepayment and the deferment of 
                        payment under clause (v).
                    ``(I) Prohibition on use of proceeds for disaster 
                loans.--An eligible entity shall not use the proceeds 
                of a covered loan to refinance any loan made under 
                subsection (b).
                    ``(J) Secondary market.--In order to increase the 
                liquidity of the secondary market for covered loans, 
                the Administrator shall, not later than 60 days after 
                the date of enactment of this paragraph, substantially 
                reduce barriers to the sale of covered loans on the 
                secondary market.
                    ``(K) Lender eligibility.--In order to increase 
                access to and the equitable distribution of covered 
                loans, the Administrator shall establish a process by 
                which a lender approved to make loans under paragraph 
                (36) may make covered loans.
                    ``(L) Reimbursement for loan processing and 
                servicing.--The Administrator shall reimburse a lender 
                authorized to make a covered loan in an amount that 
                is--
                            ``(i) 3 percent of the principal amount of 
                        the financing of the covered loan up to 
                        $350,000; and
                            ``(ii) 1 percent of the principal amount of 
                        the financing of the covered loan above 
                        $350,000, if applicable.
                    ``(M) Standard operating procedure.--The 
                Administrator shall, to the maximum extent practicable, 
                allow a lender approved to make covered loans to use 
                existing program guidance and standard operating 
                procedures for loans made under this subsection.''.

SEC. 113. ELIGIBILITY OF 501(C)(6) ORGANIZATIONS FOR LOANS UNDER THE 
              PAYCHECK PROTECTION PROGRAM.

    Section 7(a)(36)(D) of the Small Business Act (15 U.S.C. 
636(a)(36)(D)) is amended--
            (1) in clause (v), by inserting ``or whether an entity 
        described in clause (vii) employs not more than 300 
        employees,'' after ``clause (i)(I),''; and
            (2) by adding at the end the following:
                            ``(vii) Eligibility for certain 501(c)(6) 
                        organizations.--
                                    ``(I) In general.--Except as 
                                provided in subclause (II), any 
                                organization that is described in 
                                section 501(c)(6) of the Internal 
                                Revenue Code and that is exempt from 
                                taxation under section 501(a) of such 
                                Code (excluding professional football 
                                leagues and organizations with the 
                                purpose of promoting or participating 
                                in a political campaign or other 
                                activity) shall be eligible to receive 
                                a covered loan if--
                                            ``(aa) the organization 
                                        does not receive more than 10 
                                        percent of its receipts from 
                                        lobbying activities;
                                            ``(bb) the lobbying 
                                        activities of the organization 
                                        do not comprise more than 10 
                                        percent of the total activities 
                                        of the organization; and
                                            ``(cc) the organization 
                                        employs not more than 300 
                                        employees.
                                    ``(II) Destination marketing 
                                organizations.--Notwithstanding 
                                subclause (I), during the covered 
                                period, any destination marketing 
                                organization shall be eligible to 
                                receive a covered loan if--
                                            ``(aa) the destination 
                                        marketing organization does not 
                                        receive more than 10 percent of 
                                        its receipts from lobbying 
                                        activities;
                                            ``(bb) the lobbying 
                                        activities of the destination 
                                        marketing organization do not 
                                        comprise more than 10 percent 
                                        of the total activities of the 
                                        organization;
                                            ``(cc) the destination 
                                        marketing organization employs 
                                        not more than 300 employees; 
                                        and
                                            ``(dd) the destination 
                                        marketing organization--

                                                    ``(AA) is described 
                                                in section 501(c) of 
                                                the Internal Revenue 
                                                Code and is exempt from 
                                                taxation under section 
                                                501(a) of such Code; or

                                                    ``(BB) is a quasi-
                                                governmental entity or 
                                                is a political 
                                                subdivision of a State 
                                                or local government, 
                                                including any 
                                                instrumentality of 
                                                those entities.''.

SEC. 114. PROHIBITION ON USE OF LOAN PROCEEDS FOR LOBBYING ACTIVITIES.

    Section 7(a)(36)(F) of the Small Business Act (15 U.S.C. 
636(a)(36)(F)) is amended by adding at the end the following:
                            ``(vi) Prohibition.--None of the proceeds 
                        of a covered loan may be used for lobbying 
                        activities, as defined in section 3 of the 
                        Lobbying Disclosure Act of 1995 (2 U.S.C. 
                        1602).''.

SEC. 115. EFFECTIVE DATE; APPLICABILITY.

    The amendments made to paragraph (36) of section 7(a) of the Small 
Business Act (15 U.S.C. 636(a)) and title I of the CARES Act (Public 
Law 116-136) under this title shall be effective as if included in the 
CARES Act 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)).

SEC. 116. BANKRUPTCY PROVISIONS.

    (a) In General.--Section 364 of title 11, United States Code, is 
amended by adding at the end the following:
    ``(g)(1) The court, after notice and a hearing, may authorize a 
debtor in possession or a trustee that is authorized to operate the 
business of the debtor under section 1183, 1184, 1203, 1204, or 1304 of 
this title to obtain a loan under section 7(a)(36) of the Small 
Business Act (15 U.S.C. 636(a)(36)), and such loan shall be treated as 
a debt to the extent the loan is not forgiven under section 1106 of the 
CARES Act (15 U.S.C. 9005) with priority equal to a claim of the kind 
specified in subsection (c)(1) of this section.
    ``(2) The trustee may incur debt described in paragraph (1) 
notwithstanding any provision in a contract, prior order authorizing 
the trustee to incur debt under this section, prior order authorizing 
the trustee to use cash collateral under section 363, or applicable law 
that prohibits the debtor from incurring additional debt.
    ``(3) The court shall hold a hearing within 7 days after the filing 
and service of the motion to obtain a loan described in paragraph 
(1).''.
    (b) Allowance of Administrative Expenses.--Section 503(b) of title 
11, United States Code, is amended--
            (1) in paragraph (8)(B), by striking ``and'' at the end;
            (2) in paragraph (9), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(10) any debt incurred under section 364(g)(1) of this 
        title.''.
    (c) Confirmation of Plan for Reorganization.--Section 1191 of title 
11, United States Code, is amended by adding at the end the following:
    ``(f) Special Provision Related to COVID-19 Pandemic.--
Notwithstanding section 1129(a)(9)(A) of this title and subsection (e) 
of this section, a plan that provides for payment of a claim of a kind 
specified in section 503(b)(10) of this title may be confirmed under 
subsection (b) of this section if the plan proposes to make payments on 
account of such claim when due under the terms of the loan giving rise 
to such claim.''.
    (d) Confirmation of Plan for Family Farmers and Fishermen.--Section 
1225 of title 11, United States Code, is amended by adding at the end 
the following:
    ``(d) Notwithstanding section 1222(a)(2) of this title and 
subsection (b)(1) of this section, a plan that provides for payment of 
a claim of a kind specified in section 503(b)(10) of this title may be 
confirmed if the plan proposes to make payments on account of such 
claim when due under the terms of the loan giving rise to such 
claim.''.
    (e) Confirmation of Plan for Individuals.--Section 1325 of title 
11, United States Code, is amended by adding at the end the following:
    ``(d) Notwithstanding section 1322(a)(2) of this title and 
subsection (b)(1) of this section, a plan that provides for payment of 
a claim of a kind specified in section 503(b)(10) of this title may be 
confirmed if the plan proposes to make payments on account of such 
claim when due under the terms of the loan giving rise to such 
claim.''.
    (f) Effective Date; Sunset.--
            (1) Effective date.--The amendments made by subsections (a) 
        through (e) shall--
                    (A) take effect on the date on which the 
                Administrator of the Small Business Administration 
                submits to the Director of the Executive Office for 
                United States Trustees a written determination that, 
                subject to satisfying any other eligibility 
                requirements, any debtor in possession or trustee that 
                is authorized to operate the business of the debtor 
                under section 1183, 1184, 1203, 1204, or 1304 of title 
                11, United States Code, would be eligible for a loan 
                under section 7(a)(36) of the Small Business Act (15 
                U.S.C. 636(a)(36)); and
                    (B) apply to any case pending on or commenced on or 
                after the date described in subparagraph (A).
            (2) Sunset.--
                    (A) In general.--If the amendments made by this 
                section take effect under paragraph (1), effective on 
                the date that is 2 years after the date of enactment of 
                this Act--
                            (i) section 364 of title 11, United States 
                        Code, is amended by striking subsection (g);
                            (ii) section 503(b) of title 11, United 
                        States Code, is amended--
                                    (I) in paragraph (8)(B), by adding 
                                ``and'' at the end;
                                    (II) in paragraph (9), by striking 
                                ``; and'' at the end and inserting a 
                                period; and
                                    (III) by striking paragraph (10);
                            (iii) section 1191 of title 11, United 
                        States Code, is amended by striking subsection 
                        (f);
                            (iv) section 1225 of title 11, United 
                        States Code, is amended by striking subsection 
                        (d); and
                            (v) section 1325 of title 11, United States 
                        Code, is amended by striking subsection (d).
                    (B) Applicability.--Notwithstanding the amendments 
                made by subparagraph (A) of this paragraph, if the 
                amendments made by subsections (a), (b), (c), (d), and 
                (e) take effect under paragraph (1) of this subsection, 
                such amendments shall apply to any case under title 11, 
                United States Code, commenced before the date that is 2 
                years after the date of enactment of this Act.

SEC. 117. CONFLICTS OF INTEREST.

    (a) Definitions.--In this section:
            (1) Controlling interest.--The term ``controlling 
        interest'' means owning, controlling, or holding not less than 
        20 percent, by vote or value, of the outstanding amount of any 
        class of equity interest in an entity.
            (2) Covered entity.--
                    (A) Definition.--The term ``covered entity'' means 
                an entity in which a covered individual directly or 
                indirectly holds a controlling interest.
                    (B) Treatment of securities.--For the purpose of 
                determining whether an entity is a covered entity, the 
                securities owned, controlled, or held by 2 or more 
                individuals who are related as described in paragraph 
                (3)(B) shall be aggregated.
            (3) Covered individual.--The term ``covered individual'' 
        means--
                    (A) the President, the Vice President, the head of 
                an Executive department, or a Member of Congress; and
                    (B) the spouse, child, son-in-law, or daughter-in-
                law, as determined under applicable common law, of an 
                individual described in subparagraph (A).
            (4) Executive department.--The term ``Executive 
        department'' has the meaning given the term in section 101 of 
        title 5, United States Code.
            (5) Member of congress.--The term ``Member of Congress'' 
        means a Member of the Senate or House of Representatives, a 
        Delegate to the House of Representatives, and the Resident 
        Commissioner from Puerto Rico.
            (6) Equity interest.--The term ``equity interest'' means--
                    (A) a share in an entity, without regard to whether 
                the share is--
                            (i) transferable; or
                            (ii) classified as stock or anything 
                        similar;
                    (B) a capital or profit interest in a limited 
                liability company or partnership; or
                    (C) a warrant or right, other than a right to 
                convert, to purchase, sell, or subscribe to a share or 
                interest described in subparagraph (A) or (B), 
                respectively.
    (b) Requirement.--The principal executive officer and the principal 
financial officer, or individuals performing similar functions, of an 
entity seeking to enter a transaction made under paragraph (36), (37), 
or (38) of section 7(a) of the Small Business Act (15 U.S.C. 636(a)), 
as added and amended by this title, shall, before that transaction is 
approved, disclose to the Administrator whether the entity is a covered 
entity.
    (c) Applicability.--The requirement under subsection (b)--
            (1) shall apply with respect to any transaction made under 
        paragraph (36), (37), or (38) of section 7(a) of the Small 
        Business Act (15 U.S.C. 636(a)), as added and amended by this 
        title, on or after the date of enactment of this Act; and
            (2) shall not apply with respect to--
                    (A) any transaction described in paragraph (1) that 
                was made before the date of enactment of this Act; or
                    (B) forgiveness under section 1106 of the CARES Act 
                (15 U.S.C. 9005) or any other provision of law of any 
                loan associated with any transaction described in 
                paragraph (1) that was made before the date of 
                enactment of this Act.

              TITLE II--SMALL BUSINESS PROGRAMS GENERALLY

SEC. 121. SMALL BUSINESS INVESTMENT COMPANY PROGRAM.

    (a) In General.--Part A of title III of the Small Business 
Investment Act of 1958 (15 U.S.C. 681 et seq.) is amended--
            (1) in section 302(a) (15 U.S.C. 682(a))--
                    (A) in paragraph (1)--
                            (i) in subparagraph (A), by striking ``or'' 
                        at the end;
                            (ii) in subparagraph (B), by striking the 
                        period at the end and inserting ``; or''; and
                            (iii) by adding at the end the following:
                    ``(C) $20,000,000, adjusted every 5 years for 
                inflation, with respect to each licensee authorized or 
                seeking authority to sell bonds to Administration as a 
                participating investment company under section 321.''; 
                and
            (2) by adding at the end the following:

``SEC. 321. SMALL BUSINESS AND DOMESTIC PRODUCTION RECOVERY INVESTMENT 
              FACILITY.

    ``(a) Definitions.--In this section:
            ``(1) Eligible small business concern.--The term `eligible 
        small business concern'--
                    ``(A) means a small business concern that--
                            ``(i) meets the revenue reduction 
                        requirements established by paragraph 
                        (37)(A)(vi)(I)(cc) of section 7(a) of the Small 
                        Business Act (15 U.S.C. 636(a));
                            ``(ii) is a 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 
                        participating investment company under the 
                        facility; or
                            ``(iii) is located in a small business low-
                        income census tract; and
                    ``(B) does not include an entity described in 
                paragraph (37)(A)(vi)(II) of such section 7(a).
            ``(2) Facility.--The term `facility' means the facility 
        established under subsection (b).
            ``(3) Fund.--The term `Fund' means the fund established 
        under subsection (h).
            ``(4) Participating investment company.--The term 
        `participating investment company' means a small business 
        investment company approved under subsection (d) to participate 
        in the facility.
            ``(5) Protege investment company.--The term `protege 
        investment company' means a small business investment company 
        that--
                    ``(A) is majority managed by new, inexperienced, or 
                otherwise underrepresented fund managers; and
                    ``(B) elects and is selected by the Administration 
                to participate in the pathway-protege program under 
                subsection (g).
            ``(6) 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)).
            ``(7) Small business low-income census tract.--The term 
        `small business low-income census tract' has the meaning given 
        the term in section 7(a)(38)(A) of the Small Business Act.
    ``(b) Establishment.--
            ``(1) Facility.--The Administrator shall establish and 
        carry out a facility to improve the recovery of eligible small 
        business concerns from the COVID-19 pandemic, increase 
        resiliency in the manufacturing supply chain of eligible small 
        business concerns, and increase the economic development of 
        small business low-income census tracts by providing financial 
        assistance to participating investment companies that 
        facilitate equity financings to eligible small business 
        concerns in accordance with this section.
            ``(2) Administration of facility.--The facility shall be 
        administered by the Administrator acting through the Associate 
        Administrator described in section 201.
    ``(c) Applications.--
            ``(1) In general.--Any small business investment company 
        may submit to the Administrator an application to participate 
        in the facility.
            ``(2) Requirements for application.--An application to 
        participate in the facility shall include the following:
                    ``(A) A business plan describing how the applicant 
                intends to make successful equity investments in 
                eligible small business concerns.
                    ``(B) Information regarding the relevant investment 
                qualifications and backgrounds of the individuals 
                responsible for the management of the applicant.
                    ``(C) A description of the extent to which the 
                applicant meets the selection criteria under subsection 
                (d)(2).
            ``(3) Exceptions to application for new licensees.--Not 
        later than 90 days after the date of enactment of this section, 
        the Administrator shall reduce requirements for applicants 
        applying to operate as a participating investment company under 
        this section in order to encourage the participation of new 
        small business investment companies in the facility under this 
        section, which may include the requirements established under 
        part 107 of title 13, Code of Federal Regulations, or any 
        successor regulation, relating to--
                    ``(A) the approval of initial management expenses;
                    ``(B) the management ownership diversity 
                requirement;
                    ``(C) the disclosure of general compensatory 
                practices and fee structures; or
                    ``(D) any other requirement that the Administrator 
                determines to be an obstacle to achieving the purposes 
                described in this paragraph.
    ``(d) Selection of Participating Investment Companies.--
            ``(1) Determination.--
                    ``(A) In general.--Except as provided in paragraph 
                (3), not later than 60 days after the date on which the 
                Administrator receives an application under subsection 
                (c), the Administrator shall--
                            ``(i) make a final determination to approve 
                        or disapprove such applicant to participate in 
                        the facility; and
                            ``(ii) transmit the determination to the 
                        applicant in writing.
                    ``(B) Commitment amount.--Except as provided in 
                paragraph (3), at the time of approval of an applicant, 
                the Administrator shall make a determination of the 
                amount of the commitment that may be awarded to the 
                applicant under this section.
            ``(2) Selection criteria.--In making a determination under 
        paragraph (1), the Administrator shall consider--
                    ``(A) the probability that the investment strategy 
                of the applicant will successfully repay any financial 
                assistance provided by the Administration, including 
                the probability of a return significantly in excess 
                thereof;
                    ``(B) the probability that the investments made by 
                the applicant will--
                            ``(i) provide capital to eligible small 
                        business concerns; or
                            ``(ii) create or preserve jobs in the 
                        United States;
                    ``(C) the probability that the applicant will meet 
                the objectives in the business plan of the applicant, 
                including the financial goals, and, if applicable, the 
                pathway-protege program in accordance with subsection 
                (g); and
                    ``(D) the probability that the applicant will 
                assist eligible small business concerns in achieving 
                profitability.
            ``(3) Approval of participating investment companies.--
                    ``(A) Provisional approval.--
                            ``(i) In general.--Notwithstanding 
                        paragraph (1), with respect to an application 
                        submitted by an applicant to operate as a 
                        participating investment company under this 
                        section, the Administrator may provide 
                        provisional approval for the applicant in lieu 
                        of a final determination of approval and 
                        determination of the amount of the commitment 
                        under that paragraph.
                            ``(ii) Purpose.--The purpose of a 
                        provisional approval under clause (i) is to--
                                    ``(I) encourage applications from 
                                investment companies with an investment 
                                mandate from the committed private 
                                market capital of the investment 
                                company that does not conform to the 
                                requirements described in this section 
                                at the time of application;
                                    ``(II) allow the applicant to more 
                                effectively raise capital commitments 
                                in the private markets by referencing 
                                the intent of the Administrator to 
                                award the applicant a commitment; and
                                    ``(III) allow the applicant to more 
                                precisely request the desired amount of 
                                commitment pending the securing of 
                                capital from private market investors.
                            ``(iii) Limit on period of the time.--The 
                        period between a provisional approval under 
                        clause (i) and the final determination of 
                        approval under paragraph (1) shall not exceed 
                        12 months.
    ``(e) Commitments and SBIC Bonds.--
            ``(1) In general.--The Administrator may, out of amounts 
        available in the Fund, purchase or commit to purchase from a 
        participating investment company 1 or more accruing bonds that 
        include equity features as described in this subsection.
            ``(2) Bond terms.--A bond purchased by the Administrator 
        from a participating investment company under this subsection 
        shall have the following terms and conditions:
                    ``(A) Term and interest.--
                            ``(i) In general.--The bond shall be issued 
                        for a term of not less than 15 years and shall 
                        bear interest at a rate determined by the 
                        Administrator of not more than 2 percent.
                            ``(ii) Accrual of interest.--Interest on 
                        the bond shall accrue and shall be payable in 
                        accordance with subparagraph (D).
                            ``(iii) Prepayment.--The bond shall be 
                        prepayable without penalty after the end of the 
                        1-year period beginning on the date on which 
                        the bond was purchased.
                    ``(B) Profits.--
                            ``(i) In general.--The Administration shall 
                        be entitled to receive a share of the profits 
                        net of any profit sharing performance 
                        compensation of the participating investment 
                        company equal to the quotient obtained by 
                        dividing--
                                    ``(I) one-third of the commitment 
                                that the participating investment 
                                company is approved for under 
                                subsection (d); by
                                    ``(II) the commitment approved 
                                under subsection (d) plus the 
                                regulatory capital of the participating 
                                investment company at the time of 
                                approval under that subsection.
                            ``(ii) Determination of percentage.--The 
                        share to which the Administration is entitled 
                        under clause (i)--
                                    ``(I) shall be determined at the 
                                time of approval under subsection (d); 
                                and
                                    ``(II) without the approval of the 
                                Administration, shall not be revised, 
                                including to reflect subsequent 
                                distributions of profits, returns of 
                                capital, or repayments of bonds, or 
                                otherwise.
                    ``(C) Profit sharing performance compensation.--
                            ``(i) Receipt by administration.--The 
                        Administration shall receive a share of profits 
                        of not more than 2 percent, which shall be 
                        deposited into the Fund and be available to 
                        make commitments under this subsection.
                            ``(ii) Receipt by managers.--The managers 
                        of the participating investment company may 
                        receive a maximum profit sharing performance 
                        compensation of 25 percent minus the share of 
                        profits paid to the Administration under clause 
                        (i).
                    ``(D) Prohibition on distributions.--No 
                distributions on capital, including profit 
                distributions, shall be made by the participating 
                investment company to the investors or managers of the 
                participating investment company until the 
                Administration has received payment of all accrued 
                interest on the bond committed under this section.
                    ``(E) Repayment of principal.--Except as described 
                in subparagraph (F), repayments of principal of the 
                bond of a participating investment company shall be--
                            ``(i) made at the same time as returns of 
                        private capital; and
                            ``(ii) in amounts equal to the pro rata 
                        share of the Administration of the total amount 
                        being repaid or returned at such time.
                    ``(F) Liquidation or default.--Upon any liquidation 
                event or default, as defined by the Administration, any 
                unpaid principal or accrued interest on the bond 
                shall--
                            ``(i) have a priority over all equity of 
                        the participating investment company; and
                            ``(ii) be paid before any return of equity 
                        or any other distributions to the investors or 
                        managers of the participating investment 
                        company.
            ``(3) Amount of commitments and purchases.--
                    ``(A) Maximum amount.--The maximum amount of 
                outstanding bonds and commitments to purchase bonds for 
                any participating investment company under the facility 
                shall be the lesser of--
                            ``(i) twice the amount of the regulatory 
                        capital of the participating investment 
                        company; or
                            ``(ii) $200,000,000.
            ``(4) Commitment process.--Commitments by the 
        Administration to purchase bonds under the facility shall 
        remain available to be sold by a participating investment 
        company until the end of the fourth fiscal year following the 
        year in which the commitment is made, subject to review and 
        approval by the Administration based on regulatory compliance, 
        financial status, change in management, deviation from business 
        plan, and such other limitations as may be determined by the 
        Administration by regulation or otherwise.
            ``(5) Commitment conditions.--
                    ``(A) In general.--As a condition of receiving a 
                commitment under the facility, not less than 50 percent 
                of amounts invested by the participating investment 
                company shall be invested in eligible small business 
                concerns.
                    ``(B) Examinations.--In addition to the matters set 
                forth in section 310(c), the Administration shall 
                examine each participating investment company in such 
                detail so as to determine whether the participating 
                investment company has complied with the requirements 
                under this subsection.
    ``(f) Distributions and Fees.--
            ``(1) Distribution requirements.--
                    ``(A) Distributions.--As a condition of receiving a 
                commitment under the facility, a participating 
                investment company shall make all distributions to the 
                Administrator in the same form and in a manner as are 
                made to investors, or otherwise at a time and in a 
                manner consistent with regulations or policies of the 
                Administration.
                    ``(B) Allocations.--A participating investment 
                company shall make allocations of income, gain, loss, 
                deduction, and credit to the Administrator with respect 
                to any outstanding bonds as if the Administrator were 
                an investor.
            ``(2) Fees.--The Administrator may not charge fees for 
        participating investment companies other than examination fees 
        that are consistent with the license of the participating 
        investment company.
            ``(3) Bifurcation.--Losses on bonds issued by participating 
        investment companies shall not be offset by fees or any other 
        charges on debenture small business investment companies.
    ``(g) Protege Program.--The Administrator shall establish a 
pathway-protege program in which a protege investment company may 
receive technical assistance and program support from a participating 
investment company on a voluntary basis and without penalty for non-
participation.
    ``(h) Loss Limiting Fund.--
            ``(1) In general.--There is established in the Treasury a 
        fund for making commitments and purchasing bonds with equity 
        features under the facility and receiving capital returned by 
        participating investment companies.
            ``(2) Use of funds.--Amounts appropriated to the Fund or 
        deposited in the Fund under paragraph (3) shall be available to 
        the Administrator, without further appropriation, for making 
        commitments and purchasing bonds under the facility and 
        expenses and payments, excluding administrative expenses, 
        relating to the operations of the Administrator under the 
        facility.
            ``(3) Depositing of amounts.--
                    ``(A) In general.--All amounts received by the 
                Administrator from a participating investment company 
                relating to the facility, including any moneys, 
                property, or assets derived by the Administrator from 
                operations in connection with the facility, shall be 
                deposited in the Fund.
                    ``(B) Period of availability.--Amounts deposited 
                under subparagraph (A) shall remain available until 
                expended.
    ``(i) Application of Other Sections.--To the extent not 
inconsistent with requirements under this section, the Administrator 
may apply sections 309, 311, 312, 313, and 314 to activities under this 
section and an officer, director, employee, agent, or other participant 
in a participating investment company shall be subject to the 
requirements under such sections.
    ``(j) Authorization of Appropriations.--There is authorized to be 
appropriated for the first fiscal year beginning after the date of 
enactment of this part $10,000,000,000 to carry out the facility. 
Amounts appropriated pursuant to this subsection shall remain available 
until the end of the second fiscal year beginning after the date of 
enactment of this section.''.
    (b) Approval of Bank-Owned, Non-Leveraged Applicants.--Section 
301(c)(2) of the Small Business Investment Act of 1958 (15 U.S.C. 
681(c)(2)) is amended--
            (1) in subparagraph (B), in the matter preceding clause 
        (i), by striking ``Within'' and inserting ``Except as provided 
        in subparagraph (C), within''; and
            (2) by adding at the end the following:
                    ``(C) Exception for bank-owned, non-leveraged 
                applicants.--Notwithstanding subparagraph (B), not 
                later than 45 days after the date on which the 
                Administrator receives a completed application 
                submitted by a bank-owned, non-leveraged applicant in 
                accordance with this subsection and in accordance with 
                such requirements as the Administrator may prescribe by 
                regulation, the Administrator shall--
                            ``(i) review the application in its 
                        entirety; and
                            ``(ii)(I) approve the application and issue 
                        a license for such operation to the applicant 
                        if the requirements of this section are 
                        satisfied; or
                            ``(II) disapprove the application and 
                        notify the applicant in writing of the 
                        disapproval.''.
    (c) Electronic Submissions.--Part A of title III of the Small 
Business Investment Act of 1958 (15 U.S.C. 681 et seq.), as amended by 
subsection (a) of this section, is amended by adding at the end the 
following:

``SEC. 322. ELECTRONIC SUBMISSIONS.

    ``The Administration shall permit any document submitted under this 
title, or pursuant to a regulation carrying out this title, to be 
submitted electronically, including by permitting an electronic 
signature for any signature that is required on such a document.''.

                       TITLE III--APPROPRIATIONS

SEC. 131. COMMITMENT AUTHORITY AND APPROPRIATIONS.

    (a) Commitment Authority.--
            (1) CARES act amendments.--Section 1102(b) of the CARES Act 
        (Public Law 116-136) is amended--
                    (A) in paragraph (1)--
                            (i) in the paragraph heading, by inserting 
                        ``and second draw'' after ``PPP'';
                            (ii) by striking ``August 8, 2020'' and 
                        inserting ``December 31, 2020'';
                            (iii) by striking ``paragraph (36)'' and 
                        inserting ``paragraphs (36) and (37)''; and
                            (iv) by striking ``$659,000,000,000'' and 
                        inserting ``$749,000,000,000''; and
                    (B) by amending paragraph (2) to read as follows:
            ``(2) Other 7(a) loans.--During fiscal year 2020, the 
        amount authorized for commitments for section 7(a) of the Small 
        Business Act (15 U.S.C. 636(a)) under the heading `Small 
        Business Administration--Business Loans Program Account' in the 
        Financial Services and General Government Appropriations Act, 
        2020 (division C of Public Law 116-193) shall apply with 
        respect to any commitments under such section 7(a) other than 
        under paragraphs (36), (37), and (38) of such section 7(a).''.
            (2) Recovery sector loans.--During the period beginning on 
        the date of enactment of this Act and ending on December 31, 
        2020, the amount authorized for commitments under paragraph 
        (38) of section 7(a) of the Small Business Act (15 U.S.C. 
        636(a)), as added by this title, shall be $100,000,000,000.
    (b) Direct Appropriations.--
            (1) Rescission.--With respect to unobligated balances under 
        the heading ```Small Business Administration--Business Loans 
        Program Account, CARES Act'' as of the day before the date of 
        enactment of this Act, $100,000,000,000 shall be rescinded and 
        deposited into the general fund of the Treasury.
            (2) New direct appropriations.--There is appropriated, out 
        of amounts in the Treasury not otherwise appropriated, for the 
        fiscal year ending September 30, 2020--
                    (A) to remain available until September 30, 2021, 
                for additional amounts--
                            (i) $190,000,000,000 under the heading 
                        ``Small Business Administration--Business Loans 
                        Program Account, CARES Act'' for the cost of 
                        guaranteed loans as authorized under paragraph 
                        (36) and (37) of section 7(a) of the Small 
                        Business Act (15 U.S.C. 636(a)), as amended and 
                        added by this Act; and
                            (ii) $57,700,000,000 under the heading 
                        ``Small Business Administration--Recovery 
                        Sector Loans'' for the cost of guaranteed loans 
                        as authorized under paragraph (38) of section 
                        7(a) of the Small Business Act (15 U.S.C. 
                        636(a)), as added by this Act; and
                    (B) to remain available until September 30, 2023, 
                $10,000,000,000 under the heading ``Small Business 
                Administration--SBIC'' to carry out part D of title III 
                of the Small Business Investment Act of 1958 (15 U.S.C. 
                681 et seq.), as added by this Act.
    (c) 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>