[Congressional Record Volume 166, Number 139 (Wednesday, August 5, 2020)]
[Senate]
[Pages S4947-S4948]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 2570. Mr. TOOMEY submitted an amendment intended to be proposed by
him to the bill S. 178, to condemn gross human rights violations of
ethnic Turkic Muslims in Xinjiang, and calling for an end to arbitrary
detention, torture, and harassment of these communities inside and
outside China; which was ordered to lie on the table; as follows:
At the appropriate place, insert the following:
SEC. __. FORGIVABLE BUSINESS PHYSICAL DISASTER LOANS FOR
DAMAGE DUE TO CIVIL UNREST.
(a) Definitions.--In this section--
[[Page S4948]]
(1) the terms ``Administration'' and ``Administrator'' mean
the Small Business Administration and the Administrator
thereof, respectively;
(2) the term ``covered period'' means the period beginning
on May 26, 2020 and ending on July 1, 2020; and
(3) the term ``eligible entity'' means a business concern--
(A) with average annual receipts (as defined in section
121.104 of title 13, Code of Federal Regulations, or any
successor regulation) of not more than $2,000,000; and
(B) that--
(i) is located within an area for which the Administrator
declared a disaster in accordance with section 123.3(a)(3) of
title 13, Code of Federal Regulations, or any successor
regulation, with respect to civil unrest that began on May
26, 2020 in Minneapolis, Minnesota and spread across the
United States; and
(ii) incurred damage to real or personal property of the
business concern during the covered period as a result of the
civil unrest described in clause (i).
(b) Business Physical Disaster Loans.--
(1) In general.--Except as otherwise provided in this
subsection, an eligible entity shall be eligible for a loan
made by the Administration under section 7(b)(1) of the Small
Business Act (15 U.S.C. 636(b)(1)) under the same terms,
conditions, and processes as a loan made under such section
to repair, rehabilitate, or replace property, real or
personal, of the eligible entity that was damaged or
destroyed during the covered period as a result of the civil
unrest described in subsection (a)(3)(B)(i).
(2) Disaster declaration.--With respect to the disaster
declaration described in subsection (a)(3)(B)(i) for a loan
made under paragraph (1), the requirement under section
123.3(a)(3)(ii) of title 13, Code of Federal Regulations, or
any successor regulation, that 25 percent or more of the work
force in the area would be unemployed for not fewer than 90
days shall not apply.
(3) Loan amount.--
(A) In general.--The amount of a loan made under paragraph
(1) shall be equal to 100 percent of the amount required to
repair, rehabilitate, or replace property, real or personal,
of the eligible entity that--
(i) was damaged or destroyed during the covered period as a
result of the civil unrest described in subsection
(a)(3)(B)(i); and
(ii) is not compensated for by--
(I) insurance;
(II) a grant from a State or local government; or
(III) any other means.
(B) Deduction of advance amount.--The amount of any advance
received by an eligible entity under subsection (c) shall be
deducted from the loan amount for the eligible entity under
subparagraph (A).
(4) Terms; credit elsewhere.--
(A) In general.--With respect to a loan made to an eligible
entity under paragraph (1)--
(i) the Administrator shall waive--
(I) any rules related the personal guarantee on loans of
not more than $200,000 during the covered period for all
applicants; and
(II) any requirement that an applicant needs to be in
business for the 1-year period before the civil unrest
described in subsection (a)(3)(B)(i), except that no waiver
may be made for an eligible entity that was not in operation
on January 31, 2020;
(ii) the eligible entity shall not be required to show that
the eligible entity is unable to obtain credit elsewhere; and
(iii) no collateral shall be required for the loan.
(B) Repayment.--Any payments on a loan made to an eligible
entity under paragraph (1) are deferred until June 30, 2022,
and interest shall not begin to accrue until such date.
(5) Application.--
(A) In general.--Not later than 7 days after the date of
enactment of this Act, the Administrator shall begin to
accept applications for a loan under paragraph (1).
(B) Deadline.--An eligible entity desiring a loan under
this subsection shall submit to the Administrator an
application not later than December 31, 2020.
(C) Approval and ability to repay.--With respect to an
applicant for a loan made under paragraph (1), the
Administrator may--
(i) approve the applicant based on the credit score or
personal guarantee of the applicant; or
(ii) use alternative appropriate methods to determine the
applicant's ability to repay.
(6) Use of funds.--A recipient of a loan made under
paragraph (1) shall use the loan proceeds to repair,
rehabilitate, or replace property, real or personal, damaged
or destroyed during the covered period as a result of the
civil unrest described in subsection (a)(3)(B)(i), provided
that such damage or destruction is not compensated for by
insurance, a grant from a State or local government, or
otherwise.
(7) Loan forgiveness.--
(A) In general.--An eligible entity that received a loan
made under paragraph (1), or an eligible entity that received
a loan under section 7(b)(1) of the Small Business Act (15
U.S.C. 636(b)(1)) before the date of enactment of this Act
related to the civil unrest described in subsection
(a)(3)(B)(i), shall be eligible for forgiveness of
indebtedness equal to 75 percent of the loan amount if the
eligible entity--
(i) submits to the Administrator documentation of sales for
2019 and 2020 and tax returns for 2019 and 2020; and
(ii) the eligible entity is in operation as of December 31,
2021.
(B) Amounts not forgiven.--Any remaining amount of a loan
described in subparagraph (A) that is not forgiven under this
paragraph as of December 31, 2021 shall--
(i) be considered a loan made under section 7(b)(1) of the
Small Business Act (15 U.S.C. 636(b)(1));
(ii) bear an interest rate of 3.75 percent; and
(iii) have a 30-year term.
(8) Duplication.--An eligible entity that received a loan
under subsection (a)(36) or (b)(2) of section 7 of the Small
Business Act (15 U.S.C. 636) before the date of enactment of
this Act shall be eligible for a loan under paragraph (1) if
the proceeds of the loan made under such subsection (a)(36)
or (b)(2) are not used for the same expenses as the loan
under paragraph (1).
(c) Emergency Grant.--
(1) In general.--An eligible entity that applies for a loan
under subsection (b)(1) may request that the Administrator
provide an advance, subject to paragraph (3), to the eligible
entity not later than 10 days after the date on which the
Administrator receives an application from the eligible
entity.
(2) Verification.--Before disbursing amounts under this
subsection, the Administrator shall verify that the applicant
is an eligible entity by accepting a self-certification from
the applicant under penalty of perjury pursuant to section
1746 of title 28, United States Code.
(3) Amount.--The amount of an advance provided to an
eligible entity under this subsection shall be the lesser
of--
(A) 20 percent of the amount requested by the eligible
entity; or
(B) $10,000.
(4) Use of funds.--An advance received under this
subsection shall only be used for the allowable uses for a
loan under subsection (b)(1).
(5) Repayment.--
(A) In general.--Except as provided under subparagraph (B),
an eligible entity that receives an advance under this
subsection shall not be required to repay any amounts of the
advance.
(B) Return of advance.--If an applicant for a loan under
subsection (b)(1) is later determined to be ineligible for
the loan because the applicant does not meet the requirements
to be an eligible entity described in subsection (a)(3), the
applicant shall return to the Administrator any advance
amount provided under this subsection--
(i) not later than 90 days after receiving notice of the
determination of ineligibility; or
(ii) if the Administrator determines that the applicant
submitted the application in bad faith, not later than 30
days after receiving notice of that determination, plus
interest in an amount equal to 4.75 percent of the advance.
(d) Resources and Services in Languages Other Than
English.--The Administrator shall provide the resources and
services made available by the Administration relating to the
loans and grants available under this section to eligible
entities in the 10 most commonly spoken languages, other than
English, in the United States, which shall include Mandarin,
Cantonese, Japanese, and Korean.
(e) Regulations.--The Administrator shall issue guidance
and rules to carry out this section.
(f) Direct Appropriation.--
(1) In general.--There is appropriated, out of amounts in
the Treasury not otherwise appropriated, for the fiscal year
ending September 30, 2020, for an additional amount for
``Small Business Administration--HEAL Act'', $80,000,000, to
remain available until September 30, 2021, for carrying out
this section.
(2) Emergency designation.--
(A) In general.--The amounts provided under this subsection
are designated as an emergency requirement pursuant to
section 4(g) of the Statutory Pay-As-You-Go Act of 2010 (2
U.S.C. 933(g)).
(B) Designation in senate.--In the Senate, this subsection
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.
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