[House Report 117-327]
[From the U.S. Government Publishing Office]


117th Congress }                                          { Report
                        HOUSE OF REPRESENTATIVES
 2nd Session   }                                          { 117-327

======================================================================
 
             COVID-19 EIDL FRAUD STATUTE OF LIMITATIONS ACT OF
                                2022

                                _______
                                

  May 17, 2022.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

  Ms. Velazquez, from the Committee on Small Business, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 7334]

    The Committee on Small Business, to whom was referred the 
bill (H.R. 7334) to extend the statute of limitations for fraud 
by borrowers under certain COVID-19 economic injury disaster 
loan programs of the Small Business Administration, and for 
other purposes, having considered the same, reports favorably 
thereon without amendment and recommends that the bill do pass.

                                CONTENTS

                                                                   Page
  I. Purpose and Bill Summary.........................................1
 II. Background and Need for Legislation..............................2
III. Hearings.........................................................3
 IV. Committee Consideration..........................................3
  V. Committee Votes..................................................3
 VI. Section-by-Section for H.R. 7334.................................4
VII. Congressional Budget Cost Estimate...............................4
VIII.New Budget Authority, Entitlement Authority, and Tax Expenditures4

 IX. Committee Oversight Findings and Recommendations.................4
  X. Statement of General Performance Goals and Objectives............4
 XI. Duplication of Federal Programs..................................4
XII. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
     Benefits.........................................................5
XIII.Federal Mandates Statement.......................................5

XIV. Federal Advisory Committee Statement.............................5
 XV. Applicability to Legislative Branch..............................5
XVI. Changes in Existing Law Made by the Bill, as Reported............5

                      I. Purpose and Bill Summary

    The purpose of H.R. 7334, the ``COVID-19 EIDL Fraud Statute 
of Limitations Act of 2022'', is to establish a statute of 
limitations of ten years for COVID-19 Economic Injury Disaster 
Loan (EIDL) fraud cases.

                II. Background and Need for Legislation

    H.R. 7334 was introduced by Ranking Member Blaine 
Luetkemeyer (R-MO) and Chairwoman Nydia M. Velazquez (D-NY) on 
March 31, 2022.
    The Small Business Administration's (SBA) disaster 
assistance for businesses is mostly in the form of loans to 
help businesses repair and replace damaged property and provide 
financial assistance to businesses that suffered economic loss 
due to a natural disaster. SBA's Economic Injury Disaster Loans 
(EIDLs) provide up to $2 million for working capital (including 
fixed debts, payroll, accounts payable, and other bills that 
cannot be paid because of the disaster's impact) to help small 
businesses, small agricultural cooperatives, small businesses 
engaged in aquaculture, and most private, nonprofit 
organizations meet their financial obligations and operating 
expenses that cannot be met as a direct result of the disaster 
(regardless if there has been physical damage to the business).
    While the outbreak of COVID-19 was impacting small 
businesses in some parts of the country as early as January, 
SBA was slow in issuing the county-by-county disaster 
declarations that allow small businesses to apply for EIDLs. On 
March 6, 2020, Congress passed the Coronavirus Preparedness and 
Response Supplemental Appropriations Act, 2020, which deemed 
the COVID-19 outbreak a declarable disaster under the Small 
Business Act and provided SBA with an additional $20 million 
for disaster assistance administrative expenses. The measure 
also permitted SBA to issue disaster declarations that make 
EIDLs available to eligible small businesses. On March 16, 
2020, the Administrator began issuing such declarations in 
response to states seeking SBA disaster assistance. New 
criteria issued by SBA relaxed eligibility requirements for 
states/territories, requiring a certification that at least 
five small businesses within the state/territory suffered 
substantial economic injury, regardless of where the businesses 
are located. By March 21, 2020, the SBA had issued disaster 
declarations for all 50 states and 3 territories.
    On March 27, 2020, Congress passed the Coronavirus Aid, 
Relief, and Economic Security (CARES) Act, which provided $10 
billion for Emergency EIDL grants, a new SBA program that would 
provide advance payments of up to $10,000 that would not need 
to be repaid, even if borrowers are later denied disaster 
loans. According to the law, borrowers must request the 
advances in the applications, and SBA must disburse the 
advances within three days. To get the money into the hands of 
borrowers swiftly, the law streamlines the process for loan 
approvals and disbursals. Furthermore, the American Rescue Plan 
Act of 2021 provided an additional $15 billion for the Targeted 
EIDL Advances and directed SBA to address any potential funding 
shortfalls in the first 28 days after enactment to ensure that 
remaining eligible businesses can access the $10,000 grant. The 
American Rescue Plan Act also directed SBA to make any 
remaining funding available for supplemental grants to 
``severely impacted'' small businesses that suffered a loss of 
at least 50 percent, are located in a low-income census tract 
as defined by section 45D(e) of the Internal Revenue Code and 
have ten employees or fewer. On October 15, 2021, SBA's Office 
of Inspector General (OIG) published a report on the top 
management and performance challenges facing SBA in fiscal year 
2022, which included the COVID EIDL program's susceptibility to 
fraud as a top challenge. Specifically, the management and 
performance challenges report cited previous OIG reports that 
identified $78.1 billion in potentially fraudulent loans and 
grants to ineligible entities, as well as $6.7 billion in loans 
and grants related to identity theft allegations. On March 1, 
2022, in his State of the Union address, President Biden 
announced the appointment of a DOJ Special Prosecutor for 
COVID-19 Pandemic Fraud as part of an ongoing Administration-
wide effort to punish pandemic-related fraud, including COVID 
EIDL fraud. Accordingly, by extending the statute of 
limitations for COVID EIDL fraud to ten years, this legislation 
gives prosecutors more time to bring pandemic fraudsters to 
justice.

                             III. Hearings

    In the 117th Congress, the Committee has spent a 
significant amount of time examining fraud within SBA's 
pandemic relief programs and evaluating policy options to 
curtail fraud within those programs. On April 20, 2021, the 
Committee held a hearing where Members heard an update on SBA's 
Pandemic Response Programs--which included PPP and COVID EIDL--
from SBA's Office of Inspector General (OIG) and the Government 
Accountability Office. During the hearing, Mr. Hannibal 
``Mike'' Ware, Inspector General, testified that fraud 
investigations related to these programs will be a decades-long 
effort due to the performance of these loans within SBA's 
portfolios and the statute of limitations on fraud.
    On January 12, 2022, the Committee held a hearing with the 
OIG where Members reviewed the OIG's semiannual report to 
Congress and its report on SBA's top management and performance 
challenges in fiscal year 2022. Part of the hearing focused on 
OIG's efforts to combat fraud within the PPP and COVID EIDL 
program. At the hearing, Mr. Ware mentioned that a significant 
portion of COVID EIDLs will come due for payment near the end 
of fiscal year 2024, which will be a key moment to realize the 
true scope of fraud related with the program. The billions of 
dollars of potential fraud associated with the PPP and COVID 
EIDL program, as mentioned in the two hearings above, 
highlights the need to extend the statute of limitations to 
allow the federal government to continue investigating and 
prosecuting bad actors.

                      IV. Committee Consideration

    The Committee on Small Business met in open session, with a 
quorum being present, on May 11, 2022, and ordered H.R. 7334 
reported to the House of Representatives. During the markup, no 
amendments were offered.

                           V. Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the recorded 
votes on the motion to report legislation and amendments 
thereto. The Committee voted by voice vote to favorably report 
H.R. 7334 to the House at 10:30 a.m.

                  VI. Section-by-Section for H.R. 7334


Section 1. Short title

    This Act may be cited as the ``COVID-19 EIDL Fraud Statute 
of Limitations Act of 2022''.

Section 2. Extension of statute of limitations for certain COVID-19 
        Economic Injury Disaster Loan programs

    This section establishes a 10-year statute of limitations 
for fraud related to COVID-19 EIDLs, EIDL Advances, and 
Targeted EIDL Advances.

                VII. Congressional Budget Cost Estimate

    The Committee has requested but not received a cost 
estimate from the Director of the Congressional Budget Office.

VIII. New Budget Authority, Entitlement Authority, and Tax Expenditures

    Pursuant to clause 3(c)(2) of rule XIII of the Rules of the 
House of Representatives and section 308(a) of the 
Congressional Budget Act of 1974, the Committee provides the 
following opinion and estimate with respect to new budget 
authority, entitlement authority, and tax expenditures. While 
the Committee has not received an estimate of new budget 
authority contained in the cost estimate prepared by the 
Director of the Congressional Budget Office pursuant to Sec. 
402 of the Congressional Budget Act of 1974, the Committee does 
not believe that there will be any additional costs 
attributable to this legislation.

          IX. Committee Oversight Findings and Recommendations

    In accordance with clause 3(c)(1) of rule XIII and clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
the oversight findings and recommendations of the Committee on 
Small Business with respect to the subject matter contained in 
H.R. 7334 are incorporated into the descriptive portions of 
this report.

        X. Statement of General Performance Goals and Objectives

    With respect to the requirements of clause 3(c)(4) of rule 
XIII of the Rules of the House of Representatives, the 
performance goals and objectives of H.R. 7334 are to improve 
accountability for COVID-19 EIDL fraud by ensuring prosecutors 
have a ten-year statute of limitations to bring fraud charges.

                  XI. Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of rule XIII of the Rules of the 
House of Representatives, no provision of H.R. 7334 is known to 
be duplicative of another Federal program, including any 
program that was included in a report to Congress pursuant to 
section 21 of Public Law 111-139 or the most recent Catalog of 
Federal Domestic Assistance.

 XII. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
                                Benefits

    With respect to clause 9 of rule XXI of the Rules of the 
House of Representatives, the Committee finds that the bill 
does not contain any congressional earmarks, limited tax 
benefits, or limited tariff benefits as defined in clause 9(e), 
9(f), or 9(g) of rule XXI of the Rules of the House of 
Representatives.

                    XIII. Federal Mandates Statement

    An estimate of Federal mandates prepared by the Director of 
the Congressional Budget Office pursuant to section 423 of the 
Unfunded Mandates Reform Act was not made available to the 
Committee in time for the filing of this report. The Chairwoman 
of the Committee shall cause such estimate to be printed in the 
Congressional Record upon its receipt by the Committee.

               XIV. Federal Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                XV. Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

       XVI. Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, as shown as follows: existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, and existing law in which no 
change is proposed is shown in roman:

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (new matter is 
printed in italics and existing law in which no change is 
proposed is shown in roman):

                           SMALL BUSINESS ACT




           *       *       *       *       *       *       *
  Sec. 7. (a) Loans to Small Business Concerns; Allowable 
Purposes; Qualified Business; Restrictions and Limitations.--
The Administration is empowered to the extent and in such 
amounts as provided in advance in appropriation Acts to make 
loans for plant acquisition, construction, conversion, or 
expansion, including the acquisition of land, material, 
supplies, equipment, and working capital, and to make loans to 
any qualified small business concern, including those owned by 
qualified Indian tribes, for purposes of this Act. Such 
financings may be made either directly or in cooperation with 
banks or other financial institutions through agreements to 
participate on an immediate or deferred (guaranteed) basis. 
These powers shall be subject, however, to the following 
restrictions, limitations, and provisions:
          (1) In general.--
                  (A) Credit elsewhere.--
                          (i) In general.--The Administrator 
                        has the authority to direct, and 
                        conduct oversight for, the methods by 
                        which lenders determine whether a 
                        borrower is able to obtain credit 
                        elsewhere. No financial assistance 
                        shall be extended pursuant to this 
                        subsection if the applicant can obtain 
                        credit elsewhere. No immediate 
                        participation may be purchased unless 
                        it is shown that a deferred 
                        participation is not available; and no 
                        direct financing may be made unless it 
                        is shown that a participation is not 
                        available.
                          (ii) Liquidity.--On and after October 
                        1, 2015, the Administrator may not 
                        guarantee a loan under this subsection 
                        if the lender determines that the 
                        borrower is unable to obtain credit 
                        elsewhere solely because the liquidity 
                        of the lender depends upon the 
                        guaranteed portion of the loan being 
                        sold on the secondary market.
                  (B) Background checks.--Prior to the approval 
                of any loan made pursuant to this subsection, 
                or section 503 of the Small Business Investment 
                Act of 1958, the Administrator may verify the 
                applicant's criminal background, or lack 
                thereof, through the best available means, 
                including, if possible, use of the National 
                Crime Information Center computer system at the 
                Federal Bureau of Investigation.
                  (C) Lending limits of lenders.--On and after 
                October 1, 2015, the Administrator may not 
                guarantee a loan under this subsection if the 
                sole purpose for requesting the guarantee is to 
                allow the lender to exceed the legal lending 
                limit of the lender.
          (2) Level of participation in guaranteed loans.--
                  (A) In general.--Except as provided in 
                subparagraphs (B), (D), (E), and (F), in an 
                agreement to participate in a loan on a 
                deferred basis under this subsection (including 
                a loan made under the Preferred Lenders 
                Program), such participation by the 
                Administration shall be equal to--
                          (i) 75 percent of the balance of the 
                        financing outstanding at the time of 
                        disbursement of the loan, if such 
                        balance exceeds $150,000; or
                          (ii) 85 percent of the balance of the 
                        financing outstanding at the time of 
                        disbursement of the loan, if such 
                        balance is less than or equal to 
                        $150,000.
                  (B) Reduced participation upon request.--
                          (i) In general.--The guarantee 
                        percentage specified by subparagraph 
                        (A) for any loan under this subsection 
                        may be reduced upon the request of the 
                        participating lender.
                          (ii) Prohibition.--The Administration 
                        shall not use the guarantee percentage 
                        requested by a participating lender 
                        under clause (i) as a criterion for 
                        establishing priorities in approving 
                        loan guarantee requests under this 
                        subsection.
                  (C) Interest rate under preferred lenders 
                program.--
                          (i) In general.--The maximum interest 
                        rate for a loan guaranteed under the 
                        Preferred Lenders Program shall not 
                        exceed the maximum interest rate, as 
                        determined by the Administration, 
                        applicable to other loans guaranteed 
                        under this subsection.
                          (ii) Export-import bank lenders.--Any 
                        lender that is participating in the 
                        Delegated Authority Lender Program of 
                        the Export-Import Bank of the United 
                        States (or any successor to the 
                        Program) shall be eligible to 
                        participate in the Preferred Lenders 
                        Program.
                          (iii) Preferred lenders program 
                        defined.--For purposes of this 
                        subparagraph, the term ``Preferred 
                        Lenders Program'' means any program 
                        established by the Administrator, as 
                        authorized under the proviso in section 
                        5(b)(7), under which a written 
                        agreement between the lender and the 
                        Administration delegates to the 
                        lender--
                                  (I) complete authority to 
                                make and close loans with a 
                                guarantee from the 
                                Administration without 
                                obtaining the prior specific 
                                approval of the Administration; 
                                and
                                  (II) complete authority to 
                                service and liquidate such 
                                loans without obtaining the 
                                prior specific approval of the 
                                Administration for routine 
                                servicing and liquidation 
                                activities, but shall not take 
                                any actions creating an actual 
                                or apparent conflict of 
                                interest.
                  (D) Participation under export working 
                capital program.--In an agreement to 
                participate in a loan on a deferred basis under 
                the Export Working Capital Program established 
                pursuant to paragraph (14)(A), such 
                participation by the Administration shall be 90 
                percent.
                  (E) Participation in international trade 
                loan.--In an agreement to participate in a loan 
                on a deferred basis under paragraph (16), the 
                participation by the Administration may not 
                exceed 90 percent.
                  (F) Participation in the paycheck protection 
                program.--In an agreement to participate in a 
                loan on a deferred basis under paragraph (36), 
                the participation by the Administration shall 
                be 100 percent.
          (3) No loan shall be made under this subsection--
                  (A) if the total amount outstanding and 
                committed (by participation or otherwise) to 
                the borrower from the business loan and 
                investment fund established by this Act would 
                exceed $3,750,000 (or if the gross loan amount 
                would exceed $5,000,000), except as provided in 
                subparagraph (B);
                  (B) if the total amount outstanding and 
                committed (on a deferred basis) solely for the 
                purposes provided in paragraph (16) to the 
                borrower from the business loan and investment 
                fund established by this Act would exceed 
                $4,500,000 (or if the gross loan amount would 
                exceed $5,000,000), of which not more than 
                $4,000,000 may be used for working capital, 
                supplies, or financings under section 7(a)(14) 
                for export purposes; and
                  (C) if effected either directly or in 
                cooperation with banks or other lending 
                institutions through agreements to participate 
                on an immediate basis if the amount would 
                exceed $350,000.
          (4) Interest rates and prepayment charges.--
                  (A) Interest rates.--Notwithstanding the 
                provisions of the constitution of any State or 
                the laws of any State limiting the rate or 
                amount of interest which may be charged, taken, 
                received, or reserved, the maximum legal rate 
                of interest on any financing made on a deferred 
                basis pursuant to this subsection shall not 
                exceed a rate prescribed by the Administration, 
                and the rate of interest for the 
                Administration's share of any direct or 
                immediate participation loan shall not exceed 
                the current average market yield on outstanding 
                marketable obligations of the United States 
                with remaining periods to maturity comparable 
                to the average maturities of such loans and 
                adjusted to the nearest one-eighth of 1 per 
                centum, and an additional amount as determined 
                by the Administration, but not to exceed 1 per 
                centum per annum: Provided, That for those 
                loans to assist any public or private 
                organization for the handicapped or to assist 
                any handicapped individual as provided in 
                paragraph (10) of this subsection, the interest 
                rate shall be 3 per centum per annum.
                  (B) Payment of accrued interest.--
                          (i) In general.--Any bank or other 
                        lending institution making a claim for 
                        payment on the guaranteed portion of a 
                        loan made under this subsection shall 
                        be paid the accrued interest due on the 
                        loan from the earliest date of default 
                        to the date of payment of the claim at 
                        a rate not to exceed the rate of 
                        interest on the loan on the date of 
                        default, minus one percent.
                          (ii) Loans sold on secondary 
                        market.--If a loan described in clause 
                        (i) is sold on the secondary market, 
                        the amount of interest paid to a bank 
                        or other lending institution described 
                        in that clause from the earliest date 
                        of default to the date of payment of 
                        the claim shall be no more than the 
                        agreed upon rate, minus one percent.
                          (iii) Applicability.--Clauses (i) and 
                        (ii) shall not apply to loans made on 
                        or after October 1, 2000.
                  (C) Prepayment charges.--
                          (i) In general.--A borrower who 
                        prepays any loan guaranteed under this 
                        subsection shall remit to the 
                        Administration a subsidy recoupment fee 
                        calculated in accordance with clause 
                        (ii) if--
                                  (I) the loan is for a term of 
                                not less than 15 years;
                                  (II) the prepayment is 
                                voluntary;
                                  (III) the amount of 
                                prepayment in any calendar year 
                                is more than 25 percent of the 
                                outstanding balance of the 
                                loan; and
                                  (IV) the prepayment is made 
                                within the first 3 years after 
                                disbursement of the loan 
                                proceeds.
                          (ii) Subsidy recoupment fee.--The 
                        subsidy recoupment fee charged under 
                        clause (i) shall be--
                                  (I) 5 percent of the amount 
                                of prepayment, if the borrower 
                                prepays during the first year 
                                after disbursement;
                                  (II) 3 percent of the amount 
                                of prepayment, if the borrower 
                                prepays during the second year 
                                after disbursement; and
                                  (III) 1 percent of the amount 
                                of prepayment, if the borrower 
                                prepays during the third year 
                                after disbursement.
          (5) No such loans including renewals and extensions 
        thereof may be made for a period or periods exceeding 
        twenty-five years, except that such portion of a loan 
        made for the purpose of acquiring real property or 
        constructing, converting, or expanding facilities may 
        have a maturity of twenty-five years plus such 
        additional period as is estimated may be required to 
        complete such construction, conversion, or expansion.
          (6) All loans made under this subsection shall be of 
        such sound value or so secured as reasonably to assure 
        repayment: Provided, however, That--
                  (A) for loans to assist any public or private 
                organization or to assist any handicapped 
                individual as provided in paragraph (10) of 
                this subsection any reasonable doubt shall be 
                resolved in favor of the applicant;
                  (B) recognizing that greater risk may be 
                associated with loans for energy measures as 
                provided in paragraph (12) of this subsection, 
                factors in determining ``sound value'' shall 
                include, but not be limited to, quality of the 
                product or service; technical qualifications of 
                the applicant or his employees; sales 
                projections; and the financial status of the 
                business concern: Provided further, That such 
                status need not be as sound as that required 
                for general loans under this subsection; and
        On that portion of the loan used to refinance existing 
        indebtedness held by a bank or other lending 
        institution, the Administration shall limit the amount 
        of deferred participation to 80 per centum of the 
        amount of the loan at the time of disbursement: 
        Provided further, That any authority conferred by this 
        subparagraph on the Administration shall be exercised 
        solely by the Administration and shall not be delegated 
        to other than Administration personnel.
          (7)(A) In general.--The Administrator may defer 
        payments on the principal and interest of such loans 
        for a grace period and use such other methods as it 
        deems necessary and appropriate to assure the 
        successful establishment and operation of such concern.
                  (B) Deferral requirements.--With respect to a 
                deferral provided under this paragraph, the 
                Administrator may allow lenders under this 
                subsection--
                          (i) to provide full payment deferment 
                        relief (including payment of principal 
                        and interest) for a period of not more 
                        than 1 year; and
                          (ii) to provide an additional 
                        deferment period if the borrower 
                        provides documentation justifying such 
                        additional deferment.
                  (C) Secondary market.--
                          (i) In general.--Except as provided 
                        in clause (ii), if an investor declines 
                        to approve a deferral or additional 
                        deferment requested by a lender under 
                        subparagraph (B), the Administrator 
                        shall exercise the authority to 
                        purchase the loan so that the borrower 
                        may receive full payment deferment 
                        relief (including payment of principal 
                        and interest) or an additional 
                        deferment as described in subparagraph 
                        (B).
                          (ii) Exception.--If, in a fiscal 
                        year, the Administrator determines that 
                        the cost of implementing clause (i) is 
                        greater than zero, the Administrator 
                        shall not implement that clause.
          (8) The Administration may make loans under this 
        subsection to small business concerns owned and 
        controlled by disabled veterans (as defined in section 
        4211(3) of title 38, United States Code).
          (9) The Administration may provide loans under this 
        subsection to finance residential or commercial 
        construction or rehabilitation for sale: Provided, 
        however, That such loans shall not be used primarily 
        for the acquisition of land.
          (10) The Administration may provide guaranteed loans 
        under this subsection to assist any public or private 
        organization for the handicapped or to assist any 
        handicapped individual, including service-disabled 
        veterans, in establishing, acquiring, or operating a 
        small business concern.
          (11) The Administration may provide loans under this 
        subsection to any small business concern, or to any 
        qualified person seeking to establish such a concern 
        when it determines that such loan will further the 
        policies established in section 2(c) of this Act, with 
        particular emphasis on the preservation or 
        establishment of small business concerns located in 
        urban or rural areas with high proportions of 
        unemployed or low-income individuals or owned by low-
        income individuals.
          (12)(A) The Administration may provide loans under 
        this subsection to assist any small business concern, 
        including start up, to enable such concern to design 
        architecturally or engineer, manufacture, distribute, 
        market, install, or service energy measures: Provided, 
        however, That such loan proceeds shall not be used 
        primarily for research and development.
  (b) The Administration may provide deferred participation 
loans under this subsection to finance the planning, design, or 
installation of pollution control facilities for the purposes 
set forth in section 404 of the Small Business Investment Act 
of 1958. Notwithstanding the limitation expressed in paragraph 
(3) of this subsection, a loan made under this paragraph may 
not result in a total amount outstanding and committed to a 
borrower from the business loan and investment fund of more 
than $1,000,000.
          (13) The Administration may provide financing under 
        this subsection to State and local development 
        companies for the purposes of, and subject to the 
        restrictions in, title V of the Small Business 
        Investment Act of 1958.
          (14) Export working capital program.--
                  (A) In general.--The Administrator may 
                provide extensions of credit, standby letters 
                of credit, revolving lines of credit for export 
                purposes, and other financing to enable small 
                business concerns, including small business 
                export trading companies and small business 
                export management companies, to develop foreign 
                markets. A bank or participating lending 
                institution may establish the rate of interest 
                on such financings as may be legal and 
                reasonable.
                  (B) Terms.--
                          (i) Loan amount.--The Administrator 
                        may not guarantee a loan under this 
                        paragraph of more than $5,000,000.
                          (ii) Fees.--
                                  (I) In general.--For a loan 
                                under this paragraph, the 
                                Administrator shall collect the 
                                fee assessed under paragraph 
                                (23) not more frequently than 
                                once each year.
                                  (II) Untapped credit.--The 
                                Administrator may not assess a 
                                fee on capital that is not 
                                accessed by the small business 
                                concern.
                  (C) Considerations.--When considering loan or 
                guarantee applications, the Administration 
                shall give weight to export-related benefits, 
                including opening new markets for United States 
                goods and services abroad and encouraging the 
                involvement of small businesses, including 
                agricultural concerns, in the export market.
                  (D) Marketing.--The Administrator shall 
                aggressively market its export financing 
                program to small businesses.
          (15)(A) The Administration may guarantee loans under 
        this subsection--
                  (i) to qualified employee trusts with respect 
                to a small business concern for the purpose of 
                purchasing, and for any transaction costs 
                associated with purchasing, stock of the 
                concern under a plan approved by the 
                Administrator which, when carried out, results 
                in the qualified employee trust owning at least 
                51 per centum of the stock of the concern; and
                  (ii) to a small business concern under a plan 
                approved by the Administrator, if the proceeds 
                from the loan are only used to make a loan to a 
                qualified employee trust, and for any 
                transaction costs associated with making that 
                loan, that results in the qualified employee 
                trust owning at least 51 percent of the small 
                business concern.
          (B) The plan requiring the Administrator's approval 
        under subparagraph (A) shall be submitted to the 
        Administration by the trustee of such trust or by the 
        small business concern with its application for the 
        guarantee. Such plan shall include an agreement with 
        the Administrator which is binding on such trust and on 
        the small business concern and which provides that--
                  (i) not later than the date the loan 
                guaranteed under subparagraph (A) is repaid (or 
                as soon thereafter as is consistent with the 
                requirements of section 401(a) of the Internal 
                Revenue Code of 1954), at least 51 per centum 
                of the total stock of such concern shall be 
                allocated to the accounts of at least 51 per 
                centum of the employees of such concern who are 
                entitled to share in such allocation,
                  (ii) there will be periodic reviews of the 
                role in the management of such concern of 
                employees to whose accounts stock is allocated,
                  (iii) there will be adequate management to 
                assure management expertise and continuity, and
                  (iv) with respect to a loan made to a trust, 
                or to a cooperative in accordance with 
                paragraph (35)--
                          (I) a seller of the small business 
                        concern may remain involved as an 
                        officer, director, or key employee of 
                        the small business concern when a 
                        qualified employee trust or cooperative 
                        has acquired 100 percent of ownership 
                        of the small business concern; and
                          (II) any seller of the small business 
                        concern who remains as an owner of the 
                        small business concern, regardless of 
                        the percentage of ownership interest, 
                        shall be required to provide a personal 
                        guarantee by the Administration.
          (C) In determining whether to guarantee any loan 
        under this paragraph, the individual business 
        experience or personal assets of employee-owners shall 
        not be used as criteria, except inasmuch as certain 
        employee-owners may assume managerial responsibilities, 
        in which case business experience may be considered.
          (D) For purposes of this paragraph, a corporation 
        which is controlled by any other person shall be 
        treated as a small business concern if such corporation 
        would, after the plan described in subparagraph (B) is 
        carried out, be treated as a small business concern.
          (E) The Administration shall compile a separate list 
        of applications for assistance under this paragraph, 
        indicating which applications were accepted and which 
        were denied, and shall report periodically to the 
        Congress on the status of employee-owned firms assisted 
        by the Administration, which shall include--
                  (i) the total number of loans made to 
                employee-owned business concerns that were 
                guaranteed by the Administrator under section 
                7(a) of the Small Business Act (15 U.S.C. 
                636(a)) or section 502 of the Small Business 
                Investment Act of 1958 (15 U.S.C. 696), 
                including the number of loans made--
                          (I) to small business concerns owned 
                        and controlled by socially and 
                        economically disadvantaged individuals; 
                        and
                          (II) to cooperatives;
                  (ii) the total number of financings made to 
                employee-owned business concerns by companies 
                licensed under section 301(c) of the Small 
                Business Investment Act of 1958 (15 U.S.C. 
                696(c)), including the number of financings 
                made--
                          (I) to small business concerns owned 
                        and controlled by socially and 
                        economically disadvantaged individuals; 
                        and
                          (II) to cooperatives; and
                  (iii) any outreach and educational activities 
                conducted by the Administration with respect to 
                employee-owned business concerns.
          (F) A small business concern that makes a loan to a 
        qualified employee trust under subparagraph (A)(ii) is 
        not required to contain the same terms and conditions 
        as the loan made to the small business concern that is 
        guaranteed by the Administration under such 
        subparagraph.
          (G) With respect to a loan made to a qualified 
        employee trust under this paragraph, or to a 
        cooperative in accordance with paragraph (35), the 
        Administrator may, as deemed appropriate, elect to not 
        require any mandatory equity to be provided by the 
        qualified employee trust or cooperative to make the 
        loan.
          (16) International trade.--
                  (A) In general.--If the Administrator 
                determines that a loan guaranteed under this 
                subsection will allow an eligible small 
                business concern that is engaged in or 
                adversely affected by international trade to 
                improve its competitive position, the 
                Administrator may make such loan to assist such 
                concern--
                          (i) in the financing of the 
                        acquisition, construction, renovation, 
                        modernization, improvement, or 
                        expansion of productive facilities or 
                        equipment to be used in the United 
                        States in the production of goods and 
                        services involved in international 
                        trade;
                          (ii) in the refinancing of existing 
                        indebtedness that is not structured 
                        with reasonable terms and conditions, 
                        including any debt that qualifies for 
                        refinancing under any other provision 
                        of this subsection; or
                          (iii) by providing working capital.
                  (B) Security.--
                          (i) In general.--Except as provided 
                        in clause (ii), each loan made under 
                        this paragraph shall be secured by a 
                        first lien position or first mortgage 
                        on the property or equipment financed 
                        by the loan or on other assets of the 
                        small business concern.
                          (ii) Exception.--A loan under this 
                        paragraph may be secured by a second 
                        lien position on the property or 
                        equipment financed by the loan or on 
                        other assets of the small business 
                        concern, if the Administrator 
                        determines the lien provides adequate 
                        assurance of the payment of the loan.
                  (C) Engaged in international trade.--For 
                purposes of this paragraph, a small business 
                concern is engaged in international trade if, 
                as determined by the Administrator, the small 
                business concern is in a position to expand 
                existing export markets or develop new export 
                markets.
                  (D) Adversely affected by international 
                trade.--For purposes of this paragraph, a small 
                business concern is adversely affected by 
                international trade if, as determined by the 
                Administrator, the small business concern--
                          (i) is confronting increased 
                        competition with foreign firms in the 
                        relevant market; and
                          (ii) is injured by such competition.
                  (E) Findings by certain federal agencies.--
                For purposes of subparagraph (D)(ii) the 
                Administrator shall accept any finding of 
                injury by the International Trade Commission or 
                any finding of injury by the Secretary of 
                Commerce pursuant to chapter 3 of title II of 
                the Trade Act of 1974.
                  (F) List of export finance lenders.--
                          (i) Publication of list required.--
                        The Administrator shall publish an 
                        annual list of the banks and 
                        participating lending institutions 
                        that, during the 1-year period ending 
                        on the date of publication of the list, 
                        have made loans guaranteed by the 
                        Administration under--
                                  (I) this paragraph;
                                  (II) paragraph (14); or
                                  (III) paragraph (34).
                          (ii) Availability of list.--The 
                        Administrator shall--
                                  (I) post the list published 
                                under clause (i) on the website 
                                of the Administration; and
                                  (II) make the list published 
                                under clause (i) available, 
                                upon request, at each district 
                                office of the Administration.
          (17) The Administration shall authorize lending 
        institutions and other entities in addition to banks to 
        make loans authorized under this subsection.
          (18) Guarantee fees.--
                  (A) In general.--With respect to each loan 
                guaranteed under this subsection (other than a 
                loan that is repayable in 1 year or less), the 
                Administration shall collect a guarantee fee, 
                which shall be payable by the participating 
                lender, and may be charged to the borrower, as 
                follows:
                          (i) A guarantee fee not to exceed 2 
                        percent of the deferred participation 
                        share of a total loan amount that is 
                        not more than $150,000.
                          (ii) A guarantee fee not to exceed 3 
                        percent of the deferred participation 
                        share of a total loan amount that is 
                        more than $150,000, but not more than 
                        $700,000.
                          (iii) A guarantee fee not to exceed 
                        3.5 percent of the deferred 
                        participation share of a total loan 
                        amount that is more than $700,000.
                          (iv) In addition to the fee under 
                        clause (iii), a guarantee fee equal to 
                        0.25 percent of any portion of the 
                        deferred participation share that is 
                        more than $1,000,000.
                  (B) Retention of certain fees.--Lenders 
                participating in the programs established under 
                this subsection may retain not more than 25 
                percent of a fee collected under subparagraph 
                (A)(i).
          (19)(A) In addition to the Preferred Lenders Program 
        authorized by the proviso in section 5(b)(7), the 
        Administration is authorized to establish a Certified 
        Lenders Program for lenders who establish their 
        knowledge of Administration laws and regulations 
        concerning the guaranteed loan program and their 
        proficiency in program requirements. The designation of 
        a lender as a certified lender shall be suspended or 
        revoked at any time that the Administration determines 
        that the lender is not adhering to its rules and 
        regulations or that the loss experience of the lender 
        is excessive as compared to other lenders, but such 
        suspension or revocation shall not affect any 
        outstanding guarantee.
          (B) In order to encourage all lending institutions 
        and other entities making loans authorized under this 
        subsection to provide loans of $50,000 or less in 
        guarantees to eligible small business loan applicants, 
        the Administration shall develop and allow 
        participating lenders to solely utilize a uniform and 
        simplified loan form for such loans.
                  (C) Authority to liquidate loans.--
                          (i) In general.--The Administrator 
                        may permit lenders participating in the 
                        Certified Lenders Program to liquidate 
                        loans made with a guarantee from the 
                        Administration pursuant to a 
                        liquidation plan approved by the 
                        Administrator.
                          (ii) Automatic approval.--If the 
                        Administrator does not approve or deny 
                        a request for approval of a liquidation 
                        plan within 10 business days of the 
                        date on which the request is made (or 
                        with respect to any routine liquidation 
                        activity under such a plan, within 5 
                        business days) such request shall be 
                        deemed to be approved.
          (20)(A) The Administration is empowered to make loans 
        either directly or in cooperation with banks or other 
        financial institutions through agreements to 
        participate on an immediate or deferred (guaranteed) 
        basis to small business concerns eligible for 
        assistance under subsection (j)(10) and section 8(a). 
        Such assistance may be provided only if the 
        Administration determines that--
                  (i) the type and amount of such assistance 
                requested by such concern is not otherwise 
                available on reasonable terms from other 
                sources;
                  (ii) with such assistance such concern has a 
                reasonable prospect for operating soundly and 
                profitably within a reasonable period of time;
                  (iii) the proceeds of such assistance will be 
                used within a reasonable time for plant 
                construction, conversion, or expansion, 
                including the acquisition of equipment, 
                facilities, machinery, supplies, or material or 
                to supply such concern with working capital to 
                be used in the manufacture of articles, 
                equipment, supplies, or material for defense or 
                civilian production or as may be necessary to 
                insure a well-balanced national economy; and
                  (iv) such assistance is of such sound value 
                as reasonably to assure that the terms under 
                which it is provided will not be breached by 
                the small business concern.
          (B)(i) No loan shall be made under this paragraph if 
        the total amount outstanding and committed (by 
        participation or otherwise) to the borrower would 
        exceed $750,000.
          (ii) Subject to the provisions of clause (i), in 
        agreements to participate in loans on a deferred 
        (guaranteed) basis, participation by the Administration 
        shall be not less than 85 per centum of the balance of 
        the financing outstanding at the time of disbursement.
          (iii) The rate of interest on financings made on a 
        deferred (guaranteed) basis shall be legal and 
        reasonable.
          (iv) Financings made pursuant to this paragraph shall 
        be subject to the following limitations:
                  (I) No immediate participation may be 
                purchased unless it is shown that a deferred 
                participation is not available.
                  (II) No direct financing may be made unless 
                it is shown that a participation is 
                unavailable.
          (C) A direct loan or the Administration's share of an 
        immediate participation loan made pursuant to this 
        paragraph shall be any secured debt instrument--
                  (i) that is subordinated by its terms to all 
                other borrowings of the issuer;
                  (ii) the rate of interest on which shall not 
                exceed the current average market yield on 
                outstanding marketable obligations of the 
                United States with remaining periods to 
                maturity comparable to the average maturities 
                of such loan and adjusted to the nearest one-
                eighth of 1 per centum;
                  (iii) the term of which is not more than 
                twenty-five years; and
                  (iv) the principal on which is amortized at 
                such rate as may be deemed appropriate by the 
                Administration, and the interest on which is 
                payable not less often than annually.
  (21)(A) The Administration may make loans on a guaranteed 
basis under the authority of this subsection--
          (i) to a small business concern that has been (or can 
        reasonably be expected to be) detrimentally affected 
        by--
                  (I) the closure (or substantial reduction) of 
                a Department of Defense installation; or
                  (II) the termination (or substantial 
                reduction) of a Department of Defense program 
                on which such small business was a prime 
                contractor or subcontractor (or supplier) at 
                any tier; or
          (ii) to a qualified individual or a veteran seeking 
        to establish (or acquire) and operate a small business 
        concern.
  (B) Recognizing that greater risk may be associated with a 
loan to a small business concern described in subparagraph 
(A)(i), any reasonable doubts concerning the firm's proposed 
business plan for transition to nondefense-related markets 
shall be resolved in favor of the loan applicant when making 
any determination regarding the sound value of the proposed 
loan in accordance with paragraph (6).
  (C) Loans pursuant to this paragraph shall be authorized in 
such amounts as provided in advance in appropriation Acts for 
the purposes of loans under this paragraph.
  (D) For purposes of this paragraph a qualified individual 
is--
          (i) a member of the Armed Forces of the United 
        States, honorably discharged from active duty 
        involuntarily or pursuant to a program providing 
        bonuses or other inducements to encourage voluntary 
        separation or early retirement;
          (ii) a civilian employee of the Department of Defense 
        involuntarily separated from Federal service or retired 
        pursuant to a program offering inducements to encourage 
        early retirement; or
          (iii) an employee of a prime contractor, 
        subcontractor, or supplier at any tier of a Department 
        of Defense program whose employment is involuntarily 
        terminated (or voluntarily terminated pursuant to a 
        program offering inducements to encourage voluntary 
        separation or early retirement) due to the termination 
        (or substantial reduction) of a Department of Defense 
        program.
          (E) Job creation and community benefit.--In providing 
        assistance under this paragraph, the Administration 
        shall develop procedures to ensure, to the maximum 
        extent practicable, that such assistance is used for 
        projects that--
                  (i) have the greatest potential for--
                          (I) creating new jobs for individuals 
                        whose employment is involuntarily 
                        terminated due to reductions in Federal 
                        defense expenditures; or
                          (II) preventing the loss of jobs by 
                        employees of small business concerns 
                        described in subparagraph (A)(i); and
                  (ii) have substantial potential for 
                stimulating new economic activity in 
                communities most affected by reductions in 
                Federal defense expenditures.
          (22) The Administration is authorized to permit 
        participating lenders to impose and collect a 
        reasonable penalty fee on late payments of loans 
        guaranteed under this subsection in an amount not to 
        exceed 5 percent of the monthly loan payment per month 
        plus interest.
          (23) Yearly fee.--
                  (A) In general.--With respect to each loan 
                approved under this subsection, the 
                Administration shall assess, collect, and 
                retain a fee, not to exceed 0.55 percent per 
                year of the outstanding balance of the deferred 
                participation share of the loan, in an amount 
                established once annually by the Administration 
                in the Administration's annual budget request 
                to Congress, as necessary to reduce to zero the 
                cost to the Administration of making guarantees 
                under this subsection. As used in this 
                paragraph, the term ``cost'' has the meaning 
                given that term in section 502 of the Federal 
                Credit Reform Act of 1990 (2 U.S.C. 661a).
                  (B) Payer.--The yearly fee assessed under 
                subparagraph (A) shall be payable by the 
                participating lender and shall not be charged 
                to the borrower.
                  (C) Lowering of borrower fees.--If the 
                Administration determines that fees paid by 
                lenders and by small business borrowers for 
                guarantees under this subsection may be 
                reduced, consistent with reducing to zero the 
                cost to the Administration of making such 
                guarantees--
                          (i) the Administration shall first 
                        consider reducing fees paid by small 
                        business borrowers under clauses (i) 
                        through (iii) of paragraph (18)(A), to 
                        the maximum extent possible; and
                          (ii) fees paid by small business 
                        borrowers shall not be increased above 
                        the levels in effect on the date of 
                        enactment of this subparagraph.
          (24) Notification requirement.--The Administration 
        shall notify the Committees on Small Business of the 
        Senate and the House of Representatives not later than 
        15 days before making any significant policy or 
        administrative change affecting the operation of the 
        loan program under this subsection.
          (25) Limitation on conducting pilot projects.--
                  (A) In general.--Not more than 10 percent of 
                the total number of loans guaranteed in any 
                fiscal year under this subsection may be 
                awarded as part of a pilot program which is 
                commenced by the Administrator on or after 
                October 1, 1996.
                  (B) Pilot program defined.--In this 
                paragraph, the term ``pilot program'' means any 
                lending program initiative, project, 
                innovation, or other activity not specifically 
                authorized by law.
                  (C) Low documentation loan program.--The 
                Administrator may carry out the low 
                documentation loan program for loans of 
                $100,000 or less only through lenders with 
                significant experience in making small business 
                loans. Not later than 90 days after the date of 
                enactment of this subsection, the Administrator 
                shall promulgate regulations defining the 
                experience necessary for participation as a 
                lender in the low documentation loan program.
          (26) Calculation of subsidy rate.--All fees, 
        interest, and profits received and retained by the 
        Administration under this subsection shall be included 
        in the calculations made by the Director of the Office 
        of Management and Budget to offset the cost (as that 
        term is defined in section 502 of the Federal Credit 
        Reform Act of 1990) to the Administration of purchasing 
        and guaranteeing loans under this Act.
          (28) Leasing.--In addition to such other lease 
        arrangements as may be authorized by the 
        Administration, a borrower may permanently lease to one 
        or more tenants not more than 20 percent of any 
        property constructed with the proceeds of a loan 
        guaranteed under this subsection, if the borrower 
        permanently occupies and uses not less than 60 percent 
        of the total business space in the property.
          (29) Real estate appraisals.--
                  (A) In general.--With respect to a loan under 
                this subsection that is secured by commercial 
                real property, an appraisal of such property by 
                a State licensed or certified appraiser--
                          (i) shall be required by the 
                        Administration in connection with any 
                        such loan, if such loan is in an amount 
                        greater than the Federal banking 
                        regulator appraisal threshold; or
                          (ii) may be required by the 
                        Administration or the lender in 
                        connection with any such loan, if such 
                        loan is in an amount equal to or less 
                        than the Federal banking regulator 
                        appraisal threshold, if such appraisal 
                        is necessary for appropriate evaluation 
                        of creditworthiness.
                  (B) Federal banking regulator appraisal 
                threshold defined.--For purposes of this 
                paragraph, the term ``Federal banking regulator 
                appraisal threshold'' means the lesser of the 
                threshold amounts set by the Board of Governors 
                of the Federal Reserve System, the Comptroller 
                of the Currency, and the Federal Deposit 
                Insurance Corporation for when a federally 
                related transaction that is a commercial real 
                estate transaction requires an appraisal 
                prepared by a State licensed or certified 
                appraiser.
          (30) Ownership requirements.--Ownership requirements 
        to determine the eligibility of a small business 
        concern that applies for assistance under any credit 
        program under this Act shall be determined without 
        regard to any ownership interest of a spouse arising 
        solely from the application of the community property 
        laws of a State for purposes of determining marital 
        interests.
          (31) Express loans.--
                  (A) Definitions.--As used in this paragraph:
                          (i) The term ``disaster area'' means 
                        the area for which the President has 
                        declared a major disaster, during the 
                        5-year period beginning on the date of 
                        the declaration.
                          (ii) The term ``express lender'' 
                        means any lender authorized by the 
                        Administration to participate in the 
                        Express Loan Program.
                          (iii) The term ``express loan'' means 
                        any loan made pursuant to this 
                        paragraph in which a lender utilizes to 
                        the maximum extent practicable its own 
                        loan analyses, procedures, and 
                        documentation.
                          (iv) The term ``Express Loan 
                        Program'' means the program for express 
                        loans established by the Administration 
                        under paragraph (25)(B), as in 
                        existence on April 5, 2004, with a 
                        guaranty rate of not more than 50 
                        percent.
                  (B) Restriction to express lender.--The 
                authority to make an express loan shall be 
                limited to those lenders deemed qualified to 
                make such loans by the Administration. 
                Designation as an express lender for purposes 
                of making an express loan shall not prohibit 
                such lender from taking any other action 
                authorized by the Administration for that 
                lender pursuant to this subsection.
                  (C) Grandfathering of existing lenders.--Any 
                express lender shall retain such designation 
                unless the Administration determines that the 
                express lender has violated the law or 
                regulations promulgated by the Administration 
                or modifies the requirements to be an express 
                lender and the lender no longer satisfies those 
                requirements.
                  (D) Maximum loan amount.--The maximum loan 
                amount under the Express Loan Program is 
                $500,000.
                  (E) Option to participate.--Except as 
                otherwise provided in this paragraph, the 
                Administration shall take no regulatory, 
                policy, or administrative action, without 
                regard to whether such action requires 
                notification pursuant to paragraph (24), that 
                has the effect of requiring a lender to make an 
                express loan pursuant to subparagraph (D).
                  (F) Express loans for renewable energy and 
                energy efficiency.--
                          (i) Definitions.--In this 
                        subparagraph--
                                  (I) the term ``biomass''--
                                          (aa) means any 
                                        organic material that 
                                        is available on a 
                                        renewable or recurring 
                                        basis, including--
                                                  (AA) 
                                                agricultural 
                                                crops;
                                                  (BB) trees 
                                                grown for 
                                                energy 
                                                production;
                                                  (CC) wood 
                                                waste and wood 
                                                residues;
                                                  (DD) plants 
                                                (including 
                                                aquatic plants 
                                                and grasses);
                                                  (EE) 
                                                residues;
                                                  (FF) fibers;
                                                  (GG) animal 
                                                wastes and 
                                                other waste 
                                                materials; and
                                                  (HH) fats, 
                                                oils, and 
                                                greases 
                                                (including 
                                                recycled fats, 
                                                oils, and 
                                                greases); and
                                          (bb) does not 
                                        include--
                                                  (AA) paper 
                                                that is 
                                                commonly 
                                                recycled; or
                                                  (BB) 
                                                unsegregated 
                                                solid waste;
                                  (II) the term ``energy 
                                efficiency project'' means the 
                                installation or upgrading of 
                                equipment that results in a 
                                significant reduction in energy 
                                usage; and
                                  (III) the term ``renewable 
                                energy system'' means a system 
                                of energy derived from--
                                          (aa) a wind, solar, 
                                        biomass (including 
                                        biodiesel), or 
                                        geothermal source; or
                                          (bb) hydrogen derived 
                                        from biomass or water 
                                        using an energy source 
                                        described in item (aa).
                          (ii) Loans.--The Administrator may 
                        make a loan under the Express Loan 
                        Program for the purpose of--
                                  (I) purchasing a renewable 
                                energy system; or
                                  (II) carrying out an energy 
                                efficiency project for a small 
                                business concern.
                  (G) Guarantee fee waiver for veterans.--
                          (i) Guarantee fee waiver.--The 
                        Administrator may not collect a 
                        guarantee fee described in paragraph 
                        (18) in connection with a loan made 
                        under this paragraph to a veteran or 
                        spouse of a veteran on or after October 
                        1, 2015.
                          (ii) Definition.--In this 
                        subparagraph, the term ``veteran or 
                        spouse of a veteran'' means--
                                  (I) a veteran, as defined in 
                                section 3(q)(4);
                                  (II) an individual who is 
                                eligible to participate in the 
                                Transition Assistance Program 
                                established under section 1144 
                                of title 10, United States 
                                Code;
                                  (III) a member of a reserve 
                                component of the Armed Forces 
                                named in section 10101 of title 
                                10, United States Code;
                                  (IV) the spouse of an 
                                individual described in 
                                subclause (I), (II), or (III); 
                                or
                                  (V) the surviving spouse (as 
                                defined in section 101 of title 
                                38, United States Code) of an 
                                individual described in 
                                subclause (I), (II), or (III) 
                                who died while serving on 
                                active duty or as a result of a 
                                disability that is service-
                                connected (as defined in such 
                                section).
                  (H) Recovery opportunity loans.--
                          (i) In general.--The Administrator 
                        may guarantee an express loan to a 
                        small business concern located in a 
                        disaster area in accordance with this 
                        subparagraph.
                          (ii) Maximums.--For a loan guaranteed 
                        under clause (i)--
                                  (I) the maximum loan amount 
                                is $150,000; and
                                  (II) the guarantee rate shall 
                                be not more than 85 percent.
                          (iii) Overall cap.--A loan guaranteed 
                        under clause (i) shall not be counted 
                        in determining the amount of loans made 
                        to a borrower for purposes of 
                        subparagraph (D).
                          (iv) Operations.--A small business 
                        concern receiving a loan guaranteed 
                        under clause (i) shall certify that the 
                        small business concern was in operation 
                        on the date on which the applicable 
                        major disaster occurred as a condition 
                        of receiving the loan.
                          (v) Repayment ability.--A loan 
                        guaranteed under clause (i) may only be 
                        made to a small business concern that 
                        demonstrates, to the satisfaction of 
                        the Administrator, sufficient capacity 
                        to repay the loan.
                          (vi) Timing of payment of 
                        guarantees.--
                                  (I) In general.--Not later 
                                than 90 days after the date on 
                                which a request for purchase is 
                                filed with the Administrator, 
                                the Administrator shall 
                                determine whether to pay the 
                                guaranteed portion of the loan.
                                  (II) Recapture.--
                                Notwithstanding any other 
                                provision of law, unless there 
                                is a subsequent finding of 
                                fraud by a court of competent 
                                jurisdiction relating to a loan 
                                guaranteed under clause (i), on 
                                and after the date that is 6 
                                months after the date on which 
                                the Administrator determines to 
                                pay the guaranteed portion of 
                                the loan, the Administrator may 
                                not attempt to recapture the 
                                paid guarantee.
                          (vii) Fees.--
                                  (I) In general.--Unless the 
                                Administrator has waived the 
                                guarantee fee that would 
                                otherwise be collected by the 
                                Administrator under paragraph 
                                (18) for a loan guaranteed 
                                under clause (i), and except as 
                                provided in subclause (II), the 
                                guarantee fee for the loan 
                                shall be equal to the guarantee 
                                fee that the Administrator 
                                would collect if the guarantee 
                                rate for the loan was 50 
                                percent.
                                  (II) Exception.--Subclause 
                                (I) shall not apply if the cost 
                                of carrying out the program 
                                under this subsection in a 
                                fiscal year is more than zero 
                                and such cost is directly 
                                attributable to the cost of 
                                guaranteeing loans under clause 
                                (i).
                          (viii) Rules.--Not later than 270 
                        days after the date of enactment of 
                        this subparagraph, the Administrator 
                        shall promulgate rules to carry out 
                        this subparagraph.
          (32) Loans for energy efficient technologies.--
                  (A) Definitions.--In this paragraph--
                          (i) the term ``cost'' has the meaning 
                        given that term in section 502 of the 
                        Federal Credit Reform Act of 1990 (2 
                        U.S.C. 661a);
                          (ii) the term ``covered energy 
                        efficiency loan'' means a loan--
                                  (I) made under this 
                                subsection; and
                                  (II) the proceeds of which 
                                are used to purchase energy 
                                efficient designs, equipment, 
                                or fixtures, or to reduce the 
                                energy consumption of the 
                                borrower by 10 percent or more; 
                                and
                          (iii) the term ``pilot program'' 
                        means the pilot program established 
                        under subparagraph (B)
                  (B) Establishment.--The Administrator shall 
                establish and carry out a pilot program under 
                which the Administrator shall reduce the fees 
                for covered energy efficiency loans.
                  (C) Duration.--The pilot program shall 
                terminate at the end of the second full fiscal 
                year after the date that the Administrator 
                establishes the pilot program.
                  (D) Maximum participation.--A covered energy 
                efficiency loan shall include the maximum 
                participation levels by the Administrator 
                permitted for loans made under this subsection.
                  (E) Fees.--
                          (i) In general.--The fee on a covered 
                        energy efficiency loan shall be equal 
                        to 50 percent of the fee otherwise 
                        applicable to that loan under paragraph 
                        (18).
                          (ii) Waiver.--The Administrator may 
                        waive clause (i) for a fiscal year if--
                                  (I) for the fiscal year 
                                before that fiscal year, the 
                                annual rate of default of 
                                covered energy efficiency loans 
                                exceeds that of loans made 
                                under this subsection that are 
                                not covered energy efficiency 
                                loans;
                                  (II) the cost to the 
                                Administration of making loans 
                                under this subsection is 
                                greater than zero and such cost 
                                is directly attributable to the 
                                cost of making covered energy 
                                efficiency loans; and
                                  (III) no additional sources 
                                of revenue authority are 
                                available to reduce the cost of 
                                making loans under this 
                                subsection to zero.
                          (iii) Effect of waiver.--If the 
                        Administrator waives the reduction of 
                        fees under clause (ii), the 
                        Administrator--
                                  (I) shall not assess or 
                                collect fees in an amount 
                                greater than necessary to 
                                ensure that the cost of the 
                                program under this subsection 
                                is not greater than zero; and
                                  (II) shall reinstate the fee 
                                reductions under clause (i) 
                                when the conditions in clause 
                                (ii) no longer apply.
                          (iv) No increase of fees.--The 
                        Administrator shall not increase the 
                        fees under paragraph (18) on loans made 
                        under this subsection that are not 
                        covered energy efficiency loans as a 
                        direct result of the pilot program.
                  (F) GAO report.--
                          (i) In general.--Not later than 1 
                        year after the date that the pilot 
                        program terminates, the Comptroller 
                        General of the United States shall 
                        submit to the Committee on Small 
                        Business of the House of 
                        Representatives and the Committee on 
                        Small Business and Entrepreneurship of 
                        the Senate a report on the pilot 
                        program.
                          (ii) Contents.--The report submitted 
                        under clause (i) shall include--
                                  (I) the number of covered 
                                energy efficiency loans for 
                                which fees were reduced under 
                                the pilot program;
                                  (II) a description of the 
                                energy efficiency savings with 
                                the pilot program;
                                  (III) a description of the 
                                impact of the pilot program on 
                                the program under this 
                                subsection;
                                  (IV) an evaluation of the 
                                efficacy and potential fraud 
                                and abuse of the pilot program; 
                                and
                                  (V) recommendations for 
                                improving the pilot program.
          (33) Increased veteran participation program.--
                  (A) Definitions.--In this paragraph--
                          (i) the term ``cost'' has the meaning 
                        given that term in section 502 of the 
                        Federal Credit Reform Act of 1990 (2 
                        U.S.C. 661a);
                          (ii) the term ``pilot program'' means 
                        the pilot program established under 
                        subparagraph (B); and
                          (iii) the term ``veteran 
                        participation loan'' means a loan made 
                        under this subsection to a small 
                        business concern owned and controlled 
                        by veterans of the Armed Forces or 
                        members of the reserve components of 
                        the Armed Forces.
                  (B) Establishment.--The Administrator shall 
                establish and carry out a pilot program under 
                which the Administrator shall reduce the fees 
                for veteran participation loans.
                  (C) Duration.--The pilot program shall 
                terminate at the end of the second full fiscal 
                year after the date that the Administrator 
                establishes the pilot program.
                  (D) Maximum participation.--A veteran 
                participation loan shall include the maximum 
                participation levels by the Administrator 
                permitted for loans made under this subsection.
                  (E) Fees.--
                          (i) In general.--The fee on a veteran 
                        participation loan shall be equal to 50 
                        percent of the fee otherwise applicable 
                        to that loan under paragraph (18).
                          (ii) Waiver.--The Administrator may 
                        waive clause (i) for a fiscal year if--
                                  (I) for the fiscal year 
                                before that fiscal year, the 
                                annual estimated rate of 
                                default of veteran 
                                participation loans exceeds 
                                that of loans made under this 
                                subsection that are not veteran 
                                participation loans;
                                  (II) the cost to the 
                                Administration of making loans 
                                under this subsection is 
                                greater than zero and such cost 
                                is directly attributable to the 
                                cost of making veteran 
                                participation loans; and
                                  (III) no additional sources 
                                of revenue authority are 
                                available to reduce the cost of 
                                making loans under this 
                                subsection to zero.
                          (iii) Effect of waiver.--If the 
                        Administrator waives the reduction of 
                        fees under clause (ii), the 
                        Administrator--
                                  (I) shall not assess or 
                                collect fees in an amount 
                                greater than necessary to 
                                ensure that the cost of the 
                                program under this subsection 
                                is not greater than zero; and
                                  (II) shall reinstate the fee 
                                reductions under clause (i) 
                                when the conditions in clause 
                                (ii) no longer apply.
                          (iv) No increase of fees.--The 
                        Administrator shall not increase the 
                        fees under paragraph (18) on loans made 
                        under this subsection that are not 
                        veteran participation loans as a direct 
                        result of the pilot program.
                  (F) GAO report.--
                          (i) In general.--Not later than 1 
                        year after the date that the pilot 
                        program terminates, the Comptroller 
                        General of the United States shall 
                        submit to the Committee on Small 
                        Business of the House of 
                        Representatives and the Committee on 
                        Small Business and Entrepreneurship of 
                        the Senate a report on the pilot 
                        program.
                          (ii) Contents.--The report submitted 
                        under clause (i) shall include--
                                  (I) the number of veteran 
                                participation loans for which 
                                fees were reduced under the 
                                pilot program;
                                  (II) a description of the 
                                impact of the pilot program on 
                                the program under this 
                                subsection;
                                  (III) an evaluation of the 
                                efficacy and potential fraud 
                                and abuse of the pilot program; 
                                and
                                  (IV) recommendations for 
                                improving the pilot program.
          (34) Export express program.--
                  (A) Definitions.--In this paragraph--
                          (i) the term ``export development 
                        activity'' includes--
                                  (I) obtaining a standby 
                                letter of credit when required 
                                as a bid bond, performance 
                                bond, or advance payment 
                                guarantee;
                                  (II) participation in a trade 
                                show that takes place outside 
                                the United States;
                                  (III) translation of product 
                                brochures or catalogues for use 
                                in markets outside the United 
                                States;
                                  (IV) obtaining a general line 
                                of credit for export purposes;
                                  (V) performing a service 
                                contract from buyers located 
                                outside the United States;
                                  (VI) obtaining transaction-
                                specific financing associated 
                                with completing export orders;
                                  (VII) purchasing real estate 
                                or equipment to be used in the 
                                production of goods or services 
                                for export;
                                  (VIII) providing term loans 
                                or other financing to enable a 
                                small business concern, 
                                including an export trading 
                                company and an export 
                                management company, to develop 
                                a market outside the United 
                                States; and
                                  (IX) acquiring, constructing, 
                                renovating, modernizing, 
                                improving, or expanding a 
                                production facility or 
                                equipment to be used in the 
                                United States in the production 
                                of goods or services for 
                                export; and
                          (ii) the term ``express loan'' means 
                        a loan in which a lender uses to the 
                        maximum extent practicable the loan 
                        analyses, procedures, and documentation 
                        of the lender to provide expedited 
                        processing of the loan application.
                  (B) Authority.--The Administrator may 
                guarantee the timely payment of an express loan 
                to a small business concern made for an export 
                development activity.
                  (C) Level of participation.--
                          (i) Maximum amount.--The maximum 
                        amount of an express loan guaranteed 
                        under this paragraph shall be $500,000.
                          (ii) Percentage.--For an express loan 
                        guaranteed under this paragraph, the 
                        Administrator shall guarantee--
                                  (I) 90 percent of a loan that 
                                is not more than $350,000; and
                                  (II) 75 percent of a loan 
                                that is more than $350,000 and 
                                not more than $500,000.
          (35) Loans to cooperatives.--
                  (A) Definition.--In this paragraph, the term 
                ``cooperative'' means an entity that is 
                determined to be a cooperative by the 
                Administrator, in accordance with applicable 
                Federal and State laws and regulation.
                  (B) Authority.--The Administration shall 
                guarantee loans made to a cooperative for the 
                purpose described in paragraph (15).
          (36) Paycheck protection program.--
                  (A) Definitions.--In this paragraph--
                          (i) the terms ``appropriate Federal 
                        banking agency'' and ``insured 
                        depository institution'' have the 
                        meanings given those terms in section 3 
                        of the Federal Deposit Insurance Act 
                        (12 U.S.C. 1813);
                          (ii) the term ``covered loan'' means 
                        a loan made under this paragraph during 
                        the covered period;
                          (iii) the term ``covered period'' 
                        means the period beginning on February 
                        15, 2020 and ending on June 30, 2021;
                          (iv) the term ``eligible recipient'' 
                        means an individual or entity that is 
                        eligible to receive a covered loan;
                          (v) the term ``eligible self-employed 
                        individual'' has the meaning given the 
                        term in section 7002(b) of the Families 
                        First Coronavirus Response Act (Public 
                        Law 116-127);
                          (vi) the term ``insured credit 
                        union'' has the meaning given the term 
                        in section 101 of the Federal Credit 
                        Union Act (12 U.S.C. 1752);
                          (vii) the term ``nonprofit 
                        organization'' means an organization 
                        that is described in section 501(c)(3) 
                        of the Internal Revenue Code of 1986 
                        and that is exempt from taxation under 
                        section 501(a) of such Code;
                          (viii) the term ``payroll costs''--
                                  (I) means--
                                          (aa) the sum of 
                                        payments of any 
                                        compensation with 
                                        respect to employees 
                                        that is a--
                                                  (AA) salary, 
                                                wage, 
                                                commission, or 
                                                similar 
                                                compensation;
                                                  (BB) payment 
                                                of cash tip or 
                                                equivalent;
                                                  (CC) payment 
                                                for vacation, 
                                                parental, 
                                                family, 
                                                medical, or 
                                                sick leave;
                                                  (DD) 
                                                allowance for 
                                                dismissal or 
                                                separation;
                                                  (EE) payment 
                                                required for 
                                                the provisions 
                                                of group health 
                                                care or group 
                                                life, 
                                                disability, 
                                                vision, or 
                                                dental 
                                                insurance 
                                                benefits, 
                                                including 
                                                insurance 
                                                premiums;
                                                  (FF) payment 
                                                of any 
                                                retirement 
                                                benefit; or
                                                  (GG) payment 
                                                of State or 
                                                local tax 
                                                assessed on the 
                                                compensation of 
                                                employees; and
                                          (bb) the sum of 
                                        payments of any 
                                        compensation to or 
                                        income of a sole 
                                        proprietor or 
                                        independent contractor 
                                        that is a wage, 
                                        commission, income, net 
                                        earnings from self-
                                        employment, or similar 
                                        compensation and that 
                                        is in an amount that is 
                                        not more than $100,000 
                                        on an annualized basis, 
                                        as prorated for the 
                                        period during which the 
                                        payments are made or 
                                        the obligation to make 
                                        the payments is 
                                        incurred; and
                                  (II) shall not include--
                                          (aa) the compensation 
                                        of an individual 
                                        employee in excess of 
                                        $100,000 on an 
                                        annualized basis, as 
                                        prorated for theperiod 
                                        during which the 
                                        compensation is paid or 
                                        the obligationto pay 
                                        the compensation is 
                                        incurred;
                                          (bb) taxes imposed or 
                                        withheld under chapters 
                                        21, 22, or 24 of the 
                                        Internal Revenue Code 
                                        of 1986 during the 
                                        applicable period;
                                          (cc) any compensation 
                                        of an employee whose 
                                        principal place of 
                                        residence is outside of 
                                        the United States;
                                          (dd) qualified sick 
                                        leave wages for which a 
                                        credit is allowed under 
                                        section 7001 of the 
                                        Families First 
                                        Coronavirus Response 
                                        Act (Public Law 116-
                                        127); or
                                          (ee) qualified family 
                                        leave wages for which a 
                                        credit is allowed under 
                                        section 7003 of the 
                                        Families First 
                                        Coronavirus Response 
                                        Act (Public Law 116-
                                        127);
                          (ix) the term ``veterans 
                        organization'' means an organization 
                        that is described in section 501(c)(19) 
                        of the Internal Revenue Code that is 
                        exempt from taxation under section 
                        501(a) of such Code;
                          (x) the term ``community development 
                        financial institution'' has the meaning 
                        given the term in section 103 of the 
                        Riegle Community Development and 
                        Regulatory Improvement Act of 1994 (12 
                        U.S.C. 4702));
                          (xi) the term ``community financial 
                        institutions'' means--
                                  (I) a community development 
                                financial institution;
                                  (II) a minority depository 
                                institution, as defined in 
                                section 308 of the Financial 
                                Institutions Reform, Recovery, 
                                and Enforcement Act of 1989 (12 
                                U.S.C. 1463 note);
                                  (III) a development company 
                                that is certified under title V 
                                of the Small Business 
                                Investment Act of 1958 (15 
                                U.S.C. 695 et seq.); and
                                  (IV) an intermediary, as 
                                defined in section 7(m)(11);
                          (xii) the term ``credit union'' means 
                        a State credit union or a Federal 
                        credit union, as those terms are 
                        defined, respectively, in section 101 
                        of the Federal Credit Union Act (12 
                        U.S.C. 1752);
                          (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;
                          (xiv) the term ``housing 
                        cooperative'' means a cooperative 
                        housing corporation (as defined in 
                        section 216(b) of the Internal Revenue 
                        Code of 1986) that employs not more 
                        than 300 employees;
                          (xv) the term ``destination marketing 
                        organization'' means a nonprofit entity 
                        that is--
                                  (I) an organization described 
                                in section 501(c) of the 
                                Internal Revenue Code of 1986 
                                and exempt from tax under 
                                section 501(a) of such Code; or
                                  (II) a State, or a political 
                                subdivision of a State 
                                (including any instrumentality 
                                of such entities)--
                                          (aa) engaged in 
                                        marketing and promoting 
                                        communities and 
                                        facilities to 
                                        businesses and leisure 
                                        travelers through a 
                                        range of activities, 
                                        including--
                                                  (AA) 
                                                assisting with 
                                                the location of 
                                                meeting and 
                                                convention 
                                                sites;
                                                  (BB) 
                                                providing 
                                                travel 
                                                information on 
                                                area 
                                                attractions, 
                                                lodging 
                                                accommodations, 
                                                and 
                                                restaurants;
                                                  (CC) 
                                                providing maps; 
                                                and
                                                  (DD) 
                                                organizing 
                                                group tours of 
                                                local 
                                                historical, 
                                                recreational, 
                                                and cultural 
                                                attractions; or
                                          (bb) that is engaged 
                                        in, and derives the 
                                        majority of the 
                                        operating budget of the 
                                        entity from revenue 
                                        attributable to, 
                                        providing live events;
                          (xvi) 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)); and
                          (xvii) the term ``additional covered 
                        nonprofit entity''--
                                  (I) means an organization 
                                described in any paragraph of 
                                section 501(c) of the Internal 
                                Revenue Code of 1986, other 
                                than paragraph (3), (4), (6), 
                                or (19), and exempt from tax 
                                under section 501(a) of such 
                                Code; and
                                  (II) does not include any 
                                entity that, if the entity were 
                                a business concern, would be 
                                described in section 120.110 of 
                                title 13, Code of Federal 
                                Regulations (or in any 
                                successor regulation or other 
                                related guidance or rule that 
                                may be issued by the 
                                Administrator) other than a 
                                business concern described in 
                                paragraph (a) or (k) of such 
                                section.
                  (B) Paycheck protection loans.--Except as 
                otherwise provided in this paragraph, the 
                Administrator may guarantee covered loans under 
                the same terms, conditions, and processes as a 
                loan made under this subsection.
                  (C) Registration of loans.--Not later than 15 
                days after the date on which a loan is made 
                under this paragraph, the Administration shall 
                register the loan using the TIN (as defined in 
                section 7701 of the Internal Revenue Code of 
                1986) assigned to the borrower.
                  (D) Increased eligibility for certain small 
                businesses and organizations.--
                          (i) In general.--During the covered 
                        period, in addition to small business 
                        concerns, any business concern, 
                        nonprofit organization, housing 
                        cooperative, veterans organization, or 
                        Tribal business concern described in 
                        section 31(b)(2)(C) shall be eligible 
                        to receive a covered loan if the 
                        business concern, nonprofit 
                        organization, housing cooperative, 
                        veterans organization, or Tribal 
                        business concern employs not more than 
                        the greater of--
                                  (I) 500 employees; or
                                  (II) if applicable, the size 
                                standard in number of employees 
                                established by the 
                                Administration for the industry 
                                in which the business concern, 
                                nonprofit organization, housing 
                                cooperative, veterans 
                                organization, or Tribal 
                                business concern operates.
                          (ii) Inclusion of sole proprietors, 
                        independent contractors, and eligible 
                        self-employed individuals.--
                                  (I) In general.--During the 
                                covered period, individuals who 
                                operate under a sole 
                                proprietorship or as an 
                                independent contractor and 
                                eligible self-employed 
                                individuals shall be eligible 
                                to receive a covered loan.
                                  (II) Documentation.--An 
                                eligible self-employed 
                                individual, independent 
                                contractor, or sole 
                                proprietorship seeking a 
                                covered loan shall submit such 
                                documentation as determined 
                                necessary by the Administrator 
                                and the Secretary, to establish 
                                the applicant as eligible.
                          (iii) Business concerns with more 
                        than 1 physical location.--
                                  (I) In general.--During the 
                                covered period, any business 
                                concern that employs not more 
                                than 500 employees per physical 
                                location of the business 
                                concern 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) Eligibility of news 
                                organizations.--
                                          (aa) Definition.--In 
                                        this subclause, the 
                                        term ``included 
                                        business concern'' 
                                        means a business 
                                        concern, including any 
                                        station which 
                                        broadcasts pursuant to 
                                        a license granted by 
                                        the Federal 
                                        Communications 
                                        Commission under title 
                                        III of the 
                                        Communications Act of 
                                        1934 (47 U.S.C. 301 et 
                                        seq.) without regard 
                                        for whether such a 
                                        station is a concern as 
                                        defined in section 
                                        121.105 of title 13, 
                                        Code of Federal 
                                        Regulations, or any 
                                        successor thereto--
                                                  (AA) that 
                                                employs not 
                                                more than 500 
                                                employees, or 
                                                the size 
                                                standard 
                                                established by 
                                                the 
                                                Administrator 
                                                for the North 
                                                American 
                                                Industry 
                                                Classification 
                                                System code 
                                                applicable to 
                                                the business 
                                                concern, per 
                                                physical 
                                                location of 
                                                such business 
                                                concern; or
                                                  (BB) any 
                                                nonprofit 
                                                organization or 
                                                any 
                                                organization 
                                                otherwise 
                                                subject to 
                                                section 
                                                511(a)(2)(B) of 
                                                the Internal 
                                                Revenue Code of 
                                                1986 that is a 
                                                public 
                                                broadcasting 
                                                entity (as 
                                                defined in 
                                                section 397(11) 
                                                of the 
                                                Communications 
                                                Act of 1934 (47 
                                                U.S.C. 
                                                397(11))).
                                          (bb) Eligibility.--
                                        During the covered 
                                        period, an included 
                                        business concern shall 
                                        be eligible to receive 
                                        a covered loan if--
                                                  (AA) the 
                                                included 
                                                business 
                                                concern is 
                                                majority owned 
                                                or controlled 
                                                by a business 
                                                concern that is 
                                                assigned a 
                                                North American 
                                                Industry 
                                                Classification 
                                                System code 
                                                beginning with 
                                                511110 or 5151 
                                                or, with 
                                                respect to a 
                                                public 
                                                broadcasting 
                                                entity (as 
                                                defined in 
                                                section 397(11) 
                                                of the 
                                                Communications 
                                                Act of 1934 (47 
                                                U.S.C. 
                                                397(11))), has 
                                                a trade or 
                                                business that 
                                                falls under 
                                                such a code; 
                                                and
                                                  (BB) the 
                                                included 
                                                business 
                                                concern makes a 
                                                good faith 
                                                certification 
                                                that proceeds 
                                                of the loan 
                                                will be used to 
                                                support 
                                                expenses at the 
                                                component of 
                                                the included 
                                                business 
                                                concern that 
                                                produces or 
                                                distributes 
                                                locally focused 
                                                or emergency 
                                                information.
                                  (III) Eligibility of certain 
                                organizations.--Subject to the 
                                provisions in this 
                                subparagraph, during the 
                                covered period--
                                          (aa) a nonprofit 
                                        organization shall be 
                                        eligible to receive a 
                                        covered loan if the 
                                        nonprofit organization 
                                        employs not more than 
                                        500 employees per 
                                        physical location of 
                                        the organization; and
                                          (bb) an additional 
                                        covered nonprofit 
                                        entity and an 
                                        organization that, but 
                                        for subclauses (I)(dd) 
                                        and (II)(dd) of clause 
                                        (vii), would be 
                                        eligible for a covered 
                                        loan under clause (vii) 
                                        shall be eligible to 
                                        receive a covered loan 
                                        if the entity or 
                                        organization employs 
                                        not more than 300 
                                        employees per physical 
                                        location of the entity 
                                        or organization.
                                  (IV) Eligibility of internet 
                                publishing organizations.--A 
                                business concern or other 
                                organization that was not 
                                eligible to receive a covered 
                                loan the day before the date of 
                                enactment of this subclause, is 
                                assigned a North American 
                                Industry Classification System 
                                code of 519130, certifies in 
                                good faith as an Internet-only 
                                news publisher or Internet-only 
                                periodical publisher, and is 
                                engaged in the collection and 
                                distribution of local or 
                                regional and national news and 
                                information shall be eligible 
                                to receive a covered loan for 
                                the continued provision of 
                                news, information, content, or 
                                emergency information if--
                                          (aa) the business 
                                        concern or organization 
                                        employs not more than 
                                        500 employees, or the 
                                        size standard 
                                        established by the 
                                        Administrator for that 
                                        North American Industry 
                                        Classification code, 
                                        per physical location 
                                        of the business concern 
                                        or organization; and
                                          (bb) the business 
                                        concern or organization 
                                        makes a good faith 
                                        certification that 
                                        proceeds of the loan 
                                        will be used to support 
                                        expenses at the 
                                        component of the 
                                        business concern or 
                                        organization that 
                                        supports local or 
                                        regional news.
                          (iv) Waiver of affiliation rules.--
                        During the covered period, the 
                        provisions applicable to affiliations 
                        under section 121.103 of title 13, Code 
                        of Federal Regulations, or any 
                        successor regulation, are waived with 
                        respect to eligibility for a covered 
                        loan for--
                                  (I) any business concern with 
                                not more than 500 employees 
                                that, as of the date on which 
                                the covered loan is disbursed, 
                                is assigned a North American 
                                Industry Classification System 
                                code beginning with 72;
                                  (II) any business concern 
                                operating as a franchise that 
                                is assigned a franchise 
                                identifier code by the 
                                Administration;
                                  (III) any business concern 
                                that receives financial 
                                assistance from a company 
                                licensed under section 301 of 
                                the Small Business Investment 
                                Act of 1958 (15 U.S.C. 681);
                                  (IV)(aa) any business concern 
                                (including any station which 
                                broadcasts pursuant to a 
                                license granted by the Federal 
                                Communications Commission under 
                                title III of the Communications 
                                Act of 1934 (47 U.S.C. 301 et 
                                seq.) without regard for 
                                whether such a station is a 
                                concern as defined in section 
                                121.105 of title 13, Code of 
                                Federal Regulations, or any 
                                successor thereto) that employs 
                                not more than 500 employees, or 
                                the size standard established 
                                by the Administrator for the 
                                North American Industry 
                                Classification System code 
                                applicable to the business 
                                concern, per physical location 
                                of such business concern and is 
                                majority owned or controlled by 
                                a business concern that is 
                                assigned a North American 
                                Industry Classification System 
                                code beginning with 511110 or 
                                5151; or
                                  (bb) any nonprofit 
                                organization that is assigned a 
                                North American Industry 
                                Classification System code 
                                beginning with 5151; and
                                  (V) any business concern or 
                                other organization that was not 
                                eligible to receive a covered 
                                loan the day before the date of 
                                enactment of this subclause, is 
                                assigned a North American 
                                Industry Classification System 
                                code of 519130, certifies in 
                                good faith as an Internet-only 
                                news publisher or Internet-only 
                                periodical publisher, and is 
                                engaged in the collection and 
                                distribution of local or 
                                regional and national news and 
                                information, if the business 
                                concern or organization--
                                          (aa) employs not more 
                                        than 500 employees, or 
                                        the size standard 
                                        established by the 
                                        Administrator for that 
                                        North American Industry 
                                        Classification code, 
                                        per physical location 
                                        of the business concern 
                                        or organization; and
                                          (bb) is majority 
                                        owned or controlled by 
                                        a business concern or 
                                        organization that is 
                                        assigned a North 
                                        American Industry 
                                        Classification System 
                                        code of 519130.
                          (v) Employee.--For purposes of 
                        determining whether a business concern, 
                        nonprofit organization, veterans 
                        organization, or Tribal business 
                        concern described in section 
                        31(b)(2)(C) employs not more than 500 
                        employees under clause (i)(I), or for 
                        purposes of determining the number of 
                        employees of a housing cooperative or a 
                        business concern or organization made 
                        eligible for a loan under this 
                        paragraph under subclause (II), (III), 
                        or (IV) of clause (iii), subclause (IV) 
                        or (V) of clause (iv), clause (vii), or 
                        clause (ix), the term ``employee'' 
                        includes individuals employed on a 
                        full-time, part-time, or other basis.
                          (vi) Affiliation.--The provisions 
                        applicable to affiliations under 
                        section 121.103 of title 13, Code of 
                        Federal Regulations, or any successor 
                        thereto, shall apply with respect to a 
                        nonprofit organization and, a housing 
                        cooperative, a veterans organization in 
                        the same manner as with respect to a 
                        small business concern.
                          (vii) Eligibility for certain 
                        501(c)(6) organizations.--
                                  (I) In general.--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 sports 
                                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 15 percent of its 
                                        receipts from lobbying 
                                        activities;
                                          (bb) the lobbying 
                                        activities of the 
                                        organization do not 
                                        comprise more than 15 
                                        percent of the total 
                                        activities of the 
                                        organization;
                                          (cc) the cost of the 
                                        lobbying activities of 
                                        the organization did 
                                        not exceed $1,000,000 
                                        during the most recent 
                                        tax year of the 
                                        organization that ended 
                                        prior to February 15, 
                                        2020; and
                                          (dd) the organization 
                                        employs not more than 
                                        300 employees.
                                  (II) Destination marketing 
                                organizations.--Any destination 
                                marketing organization shall be 
                                eligible to receive a covered 
                                loan if--
                                          (aa) the destination 
                                        marketing organization 
                                        does not receive more 
                                        than 15 percent of its 
                                        receipts from lobbying 
                                        activities;
                                          (bb) the lobbying 
                                        activities of the 
                                        destination marketing 
                                        organization do not 
                                        comprise more than 15 
                                        percent of the total 
                                        activities of the 
                                        organization;
                                          (cc) the cost of the 
                                        lobbying activities of 
                                        the destination 
                                        marketing organization 
                                        did not exceed 
                                        $1,000,000 during the 
                                        most recent tax year of 
                                        the destination 
                                        marketing organization 
                                        that ended prior to 
                                        February 15, 2020; and
                                          (dd) the destination 
                                        marketing organization 
                                        employs not more than 
                                        300 employees; and
                                          (ee) 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.
                          (viii) Ineligibility of publicly-
                        traded entities.--
                                  (I) In general.--Subject to 
                                subclause (II), and 
                                notwithstanding any other 
                                provision of this paragraph, on 
                                and after the date of enactment 
                                of the Economic Aid to Hard-Hit 
                                Small Businesses, Nonprofits, 
                                and Venues Act, an entity that 
                                is an issuer, the securities of 
                                which are listed on an exchange 
                                registered as a national 
                                securities exchange under 
                                section 6 of the Securities 
                                Exchange Act of 1934 (15 U.S.C. 
                                78f), shall be ineligible to 
                                receive a covered loan under 
                                this paragraph.
                                  (II) Rule for affiliated 
                                entities.--With respect to a 
                                business concern made eligible 
                                by subclause (II) or (IV) of 
                                clause (iii) or subclause (IV) 
                                or (V) of clause (iv) of this 
                                subparagraph, the Administrator 
                                shall not consider whether any 
                                affiliated entity, which for 
                                purposes of this subclause 
                                shall include any entity that 
                                owns or controls such business 
                                concern or organization, is an 
                                issuer.
                          (ix) Eligibility of additional 
                        covered nonprofit entities.--An 
                        additional covered nonprofit entity 
                        shall be eligible to receive a covered 
                        loan if--
                                  (I) the additional covered 
                                nonprofit entity does not 
                                receive more than 15 percent of 
                                its receipts from lobbying 
                                activities;
                                  (II) the lobbying activities 
                                of the additional covered 
                                nonprofit entity do not 
                                comprise more than 15 percent 
                                of the total activities of the 
                                organization;
                                  (III) the cost of the 
                                lobbying activities of the 
                                additional covered nonprofit 
                                entity did not exceed 
                                $1,000,000 during the most 
                                recent tax year of the 
                                additional covered nonprofit 
                                entity that ended prior to 
                                February 15, 2020; and
                                  (IV) the additional covered 
                                nonprofit entity employs not 
                                more than 300 employees.
                  (E) Maximum loan amount.--Except as provided 
                in subparagraph (V), during the covered period, 
                with respect to a covered loan, the maximum 
                loan amount shall be the lesser of--
                          (i)(I) the sum of--
                                  (aa) the product obtained by 
                                multiplying--
                                          (AA) the average 
                                        total monthly payments 
                                        by the applicant for 
                                        payroll costs incurred 
                                        during the 1-year 
                                        period before the date 
                                        on which the loan is 
                                        made, except thatan 
                                        applicant that is a 
                                        seasonal employer shall 
                                        use the average total 
                                        monthly payments for 
                                        payroll for any 12-week 
                                        period selected by the 
                                        seasonal employer 
                                        between February 15, 
                                        2019, and February 15, 
                                        2020; by
                                          (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 the date on 
                                which covered loans are made 
                                available to be refinanced 
                                under the covered loan; or
                          (II) if requested by an otherwise 
                        eligible recipient that was not in 
                        business during the period beginning on 
                        February 15, 2019 and ending on June 
                        30, 2019, the sum of--
                                  (aa) the product obtained by 
                                multiplying--
                                          (AA) the average 
                                        total monthly payments 
                                        by the applicant for 
                                        payroll costs incurred 
                                        during the period 
                                        beginning on January 1, 
                                        2020 and ending on 
                                        February 29, 2020; by
                                          (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 the date on 
                                which covered loans are made 
                                available to be refinanced 
                                under the covered loan; or
                          (ii) $10,000,000.
                  (F) Allowable uses of covered loans.--
                          (i) In general.--During the covered 
                        period, an eligible recipient may, in 
                        addition to the allowable uses of a 
                        loan made under this subsection, use 
                        the proceeds of the covered loan for--
                                  (I) payroll costs;
                                  (II) costs related to the 
                                continuation of group health 
                                care benefits during periods of 
                                paid sick, medical, or family 
                                leave, and insurance premiums;
                                  (III) employee salaries, 
                                commissions, or similar 
                                compensations;
                                  (IV) payments of interest on 
                                any mortgage obligation (which 
                                shall not include any 
                                prepayment of or payment of 
                                principal on a mortgage 
                                obligation);
                                  (V) rent (including rent 
                                under a lease agreement);
                                  (VI) utilities;
                                  (VII) interest on any other 
                                debt obligations that were 
                                incurred before the covered 
                                period;
                                  (VIII) covered operations 
                                expenditures, as defined in 
                                section 7A(a);
                                  (IX) covered property damage 
                                costs, as defined in section 
                                7A(a);
                                  (X) covered supplier costs, 
                                as defined in section 7A(a); 
                                and
                                  (XI) covered worker 
                                protection expenditures, as 
                                defined in section 7A(a).
                          (ii) Delegated authority.--
                                  (I) In general.--For purposes 
                                of making covered loans for the 
                                purposes described in clause 
                                (i), a lender approved to make 
                                loans under this subsection 
                                shall be deemed to have been 
                                delegated authority by the 
                                Administrator to make and 
                                approve covered loans, subject 
                                to the provisions of this 
                                paragraph.
                                  (II) Considerations.--In 
                                evaluating the eligibility of a 
                                borrower for a covered loan 
                                with the terms described in 
                                this paragraph, a lender shall 
                                consider whether the borrower--
                                          (aa) was in operation 
                                        on February 15, 2020; 
                                        and
                                          (bb)(AA) had 
                                        employees for whom the 
                                        borrower paid salaries 
                                        and payroll taxes; or
                                          (BB) paid independent 
                                        contractors, as 
                                        reported on a Form 
                                        1099-MISC.
                          (iii) Additional lenders.--The 
                        authority to make loans under this 
                        paragraph shall be extended to 
                        additional lenders determined by the 
                        Administrator and the Secretary of the 
                        Treasury to have the necessary 
                        qualifications to process, close, 
                        disburse and service loans made with 
                        the guarantee of the Administration.
                          (iv) Refinance.--A loan made under 
                        subsection (b)(2) during the period 
                        beginning on January 31, 2020 and 
                        ending on the date on which covered 
                        loans are made available may be 
                        refinanced as part of a covered loan.
                          (v) Nonrecourse.--Notwithstanding the 
                        waiver of the personal guarantee 
                        requirement or collateral under 
                        subparagraph (J), the Administrator 
                        shall have no recourse against any 
                        individual shareholder, member, or 
                        partner of an eligible recipient of a 
                        covered loan for nonpayment of any 
                        covered loan, except to the extent that 
                        such shareholder, member, or partner 
                        uses the covered loan proceeds for a 
                        purpose not authorized under clause (i) 
                        or (iv).
                          (vi) Prohibition.--None of the 
                        proceeds of a covered loan may be used 
                        for--
                                  (I) lobbying activities, as 
                                defined in section 3 of the 
                                Lobbying Disclosure Act of 1995 
                                (2 U.S.C. 1602);
                                  (II) lobbying expenditures 
                                related to a State or local 
                                election; or
                                  (III) expenditures designed 
                                to influence the enactment of 
                                legislation, appropriations, 
                                regulation, administrative 
                                action, or Executive order 
                                proposed or pending before 
                                Congress or any State 
                                government, State legislature, 
                                or local legislature or 
                                legislative body.
                  (G) Borrower requirements.--
                          (i) Certification.--An eligible 
                        recipient applying for a covered loan 
                        shall make a good faith certification--
                                  (I) that the uncertainty of 
                                current economic conditions 
                                makes necessary the loan 
                                request to support the ongoing 
                                operations of the eligible 
                                recipient;
                                  (II) acknowledging that funds 
                                will be used to retain workers 
                                and maintain payroll or make 
                                mortgage payments, lease 
                                payments, and utility payments;
                                  (III) that the eligible 
                                recipient does not have an 
                                application pending for a loan 
                                under this subsection for the 
                                same purpose and duplicative of 
                                amounts applied for or received 
                                under a covered loan; and
                                  (IV) during the period 
                                beginning on February 15, 2020 
                                and ending on December 31, 
                                2020, that the eligible 
                                recipient has not received 
                                amounts under this subsection 
                                for the same purpose and 
                                duplicative of amounts applied 
                                for or received under a covered 
                                loan.
                  (H) 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.
                  (I) Credit elsewhere.--During the covered 
                period, the requirement that a small business 
                concern is unable to obtain credit elsewhere, 
                as defined in section 3(h), shall not apply to 
                a covered loan.
                  (J) Waiver of personal guarantee 
                requirement.--With respect to a covered loan--
                          (i) no personal guarantee shall be 
                        required for the covered loan; and
                          (ii) no collateral shall be required 
                        for the covered loan.
                  (K) Maturity for loans with remaining balance 
                after application of forgiveness.--With respect 
                to a covered loan that has a remaining balance 
                after reduction based on the loan forgiveness 
                amount under section 7A--
                          (i) the remaining balance shall 
                        continue to be guaranteed by the 
                        Administration under this subsection; 
                        and
                          (ii) the covered loan shall have a 
                        minimum maturity of 5 years and a 
                        maximum maturity of 10 years from the 
                        date on which the borrower applies for 
                        loan forgiveness under that section.
                  (L) Interest rate requirements.--A covered 
                loan shall bear an interest rate not to exceed 
                4 percent, calculated on a non-compounding, 
                non-adjustable basis.
                  (M) Loan deferment.--
                          (i) Definition of impacted 
                        borrower.--
                                  (I) In general.--In this 
                                subparagraph, the term 
                                ``impacted borrower'' means an 
                                eligible recipient that--
                                          (aa) is in operation 
                                        on February 15, 2020; 
                                        and
                                          (bb) has an 
                                        application for a 
                                        covered loan that is 
                                        approved or pending 
                                        approval on or after 
                                        the date of enactment 
                                        of this paragraph.
                                  (II) Presumption.--For 
                                purposes of this subparagraph, 
                                an impacted borrower is 
                                presumed to have been adversely 
                                impacted by COVID-19.
                          (ii) Deferral.--The Administrator 
                        shall--
                                  (I) consider each eligible 
                                recipient that applies for a 
                                covered loan to be an impacted 
                                borrower; and
                                  (II) require lenders under 
                                this subsection to provide 
                                complete payment deferment 
                                relief for impacted borrowers 
                                with covered loans, including 
                                payment of principal, interest, 
                                and fees, until the date on 
                                which the amount of forgiveness 
                                determined under section 7A is 
                                remitted to the lender.
                          (iii) Secondary market.--With respect 
                        to a covered loan that is sold on the 
                        secondary market, if an investor 
                        declines to approve a deferral 
                        requested by a lender under clause 
                        (ii), the Administrator shall exercise 
                        the authority to purchase the loan so 
                        that the impacted borrower may receive 
                        a deferral, including payment of 
                        principal, interest, and fees, until 
                        the date on which the amount of 
                        forgiveness determined under section 7A 
                        is remitted to the lender.
                          (iv) Guidance.--Not later than 30 
                        days after the date of enactment of 
                        this paragraph, the Administrator shall 
                        provide guidance to lenders under this 
                        paragraph on the deferment process 
                        described in this subparagraph.
                          (v) Rule of construction.--If an 
                        eligible recipient fails to apply for 
                        forgiveness of a covered loan within 10 
                        months after the last day of the 
                        covered period defined in section 
                        7A(a), such eligible recipient shall 
                        make payments of principal, interest, 
                        and fees on such covered loan beginning 
                        on the day that is not earlier than the 
                        date that is 10 months after the last 
                        day of such covered period.
                  (N) Secondary market sales.--A covered loan 
                shall be eligible to be sold in the secondary 
                market consistent with this subsection. The 
                Administrator may not collect any fee for any 
                guarantee sold into the secondary market under 
                this subparagraph.
                  (O) Regulatory capital requirements.--
                          (i) Risk weight.--With respect to the 
                        appropriate Federal banking agencies or 
                        the National Credit Union 
                        Administration Board applying capital 
                        requirements under their respective 
                        risk-based capital requirements, a 
                        covered loan shall receive a risk 
                        weight of zero percent.
                          (ii) Temporary relief from tdr 
                        disclosures.--Notwithstanding any other 
                        provision of law, an insured depository 
                        institution or an insured credit union 
                        that modifies a covered loan in 
                        relation to COVID-19-related 
                        difficulties in a troubled debt 
                        restructuring on or after March 13, 
                        2020, shall not be required to comply 
                        with the Financial Accounting Standards 
                        Board Accounting Standards Codification 
                        Subtopic 310-40 (``Receivables - 
                        Troubled Debt Restructurings by 
                        Creditors'') for purposes of compliance 
                        with the requirements of the Federal 
                        Deposit Insurance Act (12 U.S.C. 1811 
                        et seq.), until such time and under 
                        such circumstances as the appropriate 
                        Federal banking agency or the National 
                        Credit Union Administration Board, as 
                        applicable, determines appropriate.
                  (P) Reimbursement for processing.--
                          (i) In general.--The Administrator 
                        shall reimburse a lender authorized to 
                        make a covered loan as follows:
                                  (I) With respect to a covered 
                                loan made during the period 
                                beginning on the date of 
                                enactment of this paragraph and 
                                ending on the day before the 
                                date of enactment of the 
                                Economic Aid to Hard-Hit Small 
                                Businesses, Nonprofits, and 
                                Venues Act, the Administrator 
                                shall reimburse such a lender 
                                at a rate, based on the balance 
                                of the financing outstanding at 
                                the time of disbursement of the 
                                covered loan, of--
                                          (aa) 5 percent for 
                                        loans of not more than 
                                        $350,000;
                                          (bb) 3 percent for 
                                        loans of more than 
                                        $350,000 and less than 
                                        $2,000,000; and
                                          (cc) 1 percent for 
                                        loans of not less than 
                                        $2,000,000.
                                  (II) With respect to a 
                                covered loan made on or after 
                                the date of enactment of the 
                                Economic Aid to Hard-Hit Small 
                                Businesses, Nonprofits, and 
                                Venues Act, the Administrator 
                                shall reimburse such a lender--
                                          (aa) for a covered 
                                        loan of not more than 
                                        $50,000, in an amount 
                                        equal to the lesser 
                                        of--
                                                  (AA) 50 
                                                percent of the 
                                                balance of the 
                                                financing 
                                                outstanding at 
                                                the time of 
                                                disbursement of 
                                                the covered 
                                                loan; or
                                                  (BB) $2,500; 
                                                and
                                          (bb) at a rate, based 
                                        on the balance of the 
                                        financing outstanding 
                                        at the time of 
                                        disbursement of the 
                                        covered loan, of--
                                                  (AA) 5 
                                                percent for a 
                                                covered loan of 
                                                more than 
                                                $50,000 and not 
                                                more than 
                                                $350,000;
                                                  (BB) 3 
                                                percent for a 
                                                covered loan of 
                                                more than 
                                                $350,000 and 
                                                less than 
                                                $2,000,000; and
                                                  (CC) 1 
                                                percent for a 
                                                covered loan of 
                                                not less than 
                                                $2,000,000.
                          (ii) Fee limits.--An agent that 
                        assists an eligible recipient to 
                        prepare an application for a covered 
                        loan may not collect a fee in excess of 
                        the limits established by the 
                        Administrator. If an eligible recipient 
                        has knowingly retained an agent, such 
                        fees shall be paid by the eligible 
                        recipient and may not be paid out of 
                        the proceeds of a covered loan. A 
                        lender shall only be responsible for 
                        paying fees to an agent for services 
                        for which the lender directly contracts 
                        with the agent.
                          (iii) Timing.--A reimbursement 
                        described in clause (i) shall be made 
                        not later than 5 days after the 
                        reported disbursement of the covered 
                        loan and may not be required to be 
                        repaid by a lender unless the lender is 
                        found guilty of an act of fraud in 
                        connection with the covered loan.
                          (iv) Sense of the senate.--It is the 
                        sense of the Senate that the 
                        Administrator should issue guidance to 
                        lenders and agents to ensure that the 
                        processing and disbursement of covered 
                        loans prioritizes small business 
                        concerns and entities in underserved 
                        and rural markets, including veterans 
                        and members of the military community, 
                        small business concerns owned and 
                        controlled by socially and economically 
                        disadvantaged individuals (as defined 
                        in section 8(d)(3)(C)), women, and 
                        businesses in operation for less than 2 
                        years.
                  (Q) Duplication.--Nothing in this paragraph 
                shall prohibit a recipient of an economic 
                injury disaster loan made under subsection 
                (b)(2) during the period beginning on January 
                31, 2020 and ending on the date on which 
                covered loans are made available that is for a 
                purpose other than paying payroll costs and 
                other obligations described in subparagraph (F) 
                from receiving assistance under this paragraph.
                  (R) Waiver of prepayment penalty.--
                Notwithstanding any other provision of law, 
                there shall be no prepayment penalty for any 
                payment made on a covered loan.
                  (S) Set-aside for insured depository 
                institutions, credit unions, and community 
                financial institutions.--
                          (i) Insured depository institutions 
                        and credit unions.--In making loan 
                        guarantees under this paragraph after 
                        the date of enactment of this clause, 
                        the Administrator shall guarantee not 
                        less than $30,000,000,000 in loans made 
                        by--
                                  (I) insured depository 
                                institutions with consolidated 
                                assets of not less than 
                                $10,000,000,000 and less than 
                                $50,000,000,000; and
                                  (II) credit unions with 
                                consolidated assets of not less 
                                than $10,000,000,000 and less 
                                than $50,000,000,000.
                          (ii) Community financial 
                        institutions, small insured depository 
                        institutions, and credit unions.--In 
                        making loan guarantees under this 
                        paragraph after the date of enactment 
                        of this clause, the Administrator shall 
                        guarantee not less than $30,000,000,000 
                        in loans made by--
                                  (I) community financial 
                                institutions;
                                  (II) insured depository 
                                institutions with consolidated 
                                assets of less than 
                                $10,000,000,000; and
                                  (III) credit unions with 
                                consolidated assets of less 
                                than $10,000,000,000.
                  (T) Requirement for date in operation.--A 
                business or organization that was not in 
                operation on February 15, 2020 shall not be 
                eligible for a loan under this paragraph.
                  (U) Exclusion of entities receiving shuttered 
                venue operator grants.--An eligible person or 
                entity (as defined under of section 24 of the 
                Economic Aid to Hard-Hit Small Businesses, 
                Nonprofits, and Venues Act) that receives a 
                grant under such section 24 shall not be 
                eligible for a loan under this paragraph.
                  (V) 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 as of 
                                February 15, 2020.
                          (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.
          (37) Paycheck protection program second draw loans.--
                  (A) Definitions.--In this paragraph--
                          (i) the terms ``additional covered 
                        nonprofit entity'',``eligible self-
                        employed individual'', ``housing 
                        cooperative'', ``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 7A(a);
                          (iv) the term ``eligible entity''--
                                  (I) means any business 
                                concern, nonprofit 
                                organization, housing 
                                cooperative, veterans 
                                organization, Tribal business 
                                concern, eligible self-employed 
                                individual, sole proprietor, 
                                independent contractor, or 
                                small agricultural cooperative 
                                that--
                                          (aa) employs not more 
                                        than 300 employees; and
                                          (bb)(AA) except as 
                                        provided in subitems 
                                        (BB), (CC), and (DD), 
                                        had gross receipts 
                                        during the first, 
                                        second, third, or, only 
                                        with respect to an 
                                        application submitted 
                                        on or after January 1, 
                                        2021, fourth quarter in 
                                        2020 that demonstrate 
                                        not less than a 25 
                                        percent reduction from 
                                        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, 
                                        second, third, or, only 
                                        with respect to an 
                                        application submitted 
                                        on or after January 1, 
                                        2021, fourth quarter of 
                                        2020 that demonstrate 
                                        not less than a 25 
                                        percent reduction from 
                                        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, second, third, 
                                        or, only with respect 
                                        to an application 
                                        submitted on or after 
                                        January 1, 2021, fourth 
                                        quarter of 2020 that 
                                        demonstrate not less 
                                        than a 25 percent 
                                        reduction from 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, third, or, only 
                                        with respect to an 
                                        application submitted 
                                        on or after January 1, 
                                        2021, fourth quarter of 
                                        2020 that demonstrate 
                                        not less than a 25 
                                        percent reduction from 
                                        the gross receipts of 
                                        the entity during the 
                                        first quarter of 2020;
                                  (II) includes a business 
                                concern or organization made 
                                eligible for a loan under 
                                paragraph (36) under subclause 
                                (II), (III), or (IV) of clause 
                                (iii), subclause (IV) or (V) of 
                                clause (iv), clause (vii), or 
                                clause (ix) of subparagraph (D) 
                                of paragraph (36) and that 
                                meets the requirements 
                                described in items (aa) and 
                                (bb) of subclause (I); and
                                  (III) does not include--
                                          (aa) any entity that 
                                        is a type of business 
                                        concern (or would be, 
                                        if such entity were a 
                                        business concern) 
                                        described in section 
                                        120.110 of title 13, 
                                        Code of Federal 
                                        Regulations (or in any 
                                        successor regulation or 
                                        other related guidance 
                                        or rule that may be 
                                        issued by the 
                                        Administrator) other 
                                        than a business concern 
                                        described in subsection 
                                        (a) or (k) of such 
                                        section; or
                                          (bb) 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;
                                          (cc) 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;
                                          (dd) any person 
                                        required to submit a 
                                        registration statement 
                                        under section 2 of the 
                                        Foreign Agents 
                                        Registration Act of 
                                        1938 (22 U.S.C. 612); 
                                        or
                                          (ee) an eligible 
                                        person or entity (as 
                                        defined under section 
                                        24 of the Economic Aid 
                                        to Hard-Hit Small 
                                        Businesses, Nonprofits, 
                                        and Venues Act) that 
                                        receives a grant under 
                                        such section 24; and
                          (v) 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) at the election 
                                        of the eligible entity, 
                                        the average total 
                                        monthly payment for 
                                        payroll costs incurred 
                                        or paid by the eligible 
                                        entity during--
                                                  (AA) the 1-
                                                year period 
                                                before the date 
                                                on which the 
                                                loan is made; 
                                                or
                                                  (BB) calendar 
                                                year 2019; 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 for any 12-week 
                                        period between February 
                                        15, 2019 and February 
                                        15, 2020; by
                                          (bb) 2.5; or
                                  (II) $2,000,000.
                          (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) NAICS 72 entities.--The maximum 
                        amount of a covered loan made to an 
                        eligible entity that is assigned a 
                        North American Industry Classification 
                        System code beginning with 72 at the 
                        time of disbursal is the lesser of--
                                  (I) the product obtained by 
                                multiplying--
                                          (aa) at the election 
                                        of the eligible entity, 
                                        the average total 
                                        monthly payment for 
                                        payroll costs incurred 
                                        or paid by the eligible 
                                        entity during--
                                                  (AA) the 1-
                                                year period 
                                                before the date 
                                                on which the 
                                                loan is made; 
                                                or
                                                  (BB) calendar 
                                                year 2019; by
                                          (bb) 3.5; or
                                  (II) $2,000,000.
                  (D) Business concerns with more than 1 
                physical location.--
                          (i) In general.--For a business 
                        concern with more than 1 physical 
                        location, the business concern shall be 
                        an eligible entity if the business 
                        concern would be eligible for a loan 
                        under paragraph (36) pursuant to clause 
                        (iii) of subparagraph (D) of such 
                        paragraph, as applied in accordance 
                        with clause (ii) of this subparagraph, 
                        and meets the revenue reduction 
                        requirements described in item (bb) of 
                        subparagraph (A)(iv)(I).
                          (ii) Size limit.--For purposes of 
                        applying clause (i), the Administrator 
                        shall substitute ``not more than 300 
                        employees'' for ``not more than 500 
                        employees'' in paragraph (36)(D)(iii).
                  (E) Waiver of affiliation rules.--
                          (i) In general.--The waiver described 
                        in paragraph (36)(D)(iv) shall apply 
                        for purposes of determining eligibility 
                        under this paragraph.
                          (ii) Size limit.--For purposes of 
                        applying clause (i), the Administrator 
                        shall substitute ``not more than 300 
                        employees'' for ``not more than 500 
                        employees'' in subclause (I) and (IV) 
                        of paragraph (36)(D)(iv).
                  (F) Loan number limitation.--An eligible 
                entity may only receive 1 covered loan.
                  (G) Exception from certain certification 
                requirements.--An eligible entity applying for 
                a covered loan shall not be required to make 
                the certification described in clause (iii) or 
                (iv) of paragraph (36)(G).
                  (H) 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.
                  (I) Gross receipts and simplified 
                certification of revenue test.--
                          (i) Loans of up to $150,000.--For a 
                        covered loan of not more than $150,000, 
                        the eligible entity--
                                  (I) may submit a 
                                certification attesting that 
                                the eligible entity meets the 
                                applicable revenue loss 
                                requirement under subparagraph 
                                (A)(iv)(I)(bb); and
                                  (II) if the eligible entity 
                                submits a certification under 
                                subclause (I), shall, on or 
                                before the date on which the 
                                eligible entity submits an 
                                application for forgiveness 
                                under subparagraph (J), produce 
                                adequate documentation that the 
                                eligible entity met such 
                                revenue loss standard.
                          (ii) For nonprofit and veterans 
                        organizations.--For purposes of 
                        calculating gross receipts under 
                        subparagraph (A)(iv)(I)(bb) for an 
                        eligible entity that is a nonprofit 
                        organization, a veterans organization, 
                        or an organization described in 
                        subparagraph (A)(iv)(II), gross 
                        receipts means gross receipts within 
                        the meaning of section 6033 of the 
                        Internal Revenue Code of 1986.
                  (J) Loan forgiveness.--
                          (i) Definition of covered period.--In 
                        this subparagraph, the term ``covered 
                        period'' has the meaning given that 
                        term in section 7A(a).
                          (ii) Forgiveness generally.--Except 
                        as 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) of this section, as 
                        described in section 7A.
                          (iii) 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, excluding 
                                any payroll costs that are--
                                          (aa) qualified wages, 
                                        as defined in 
                                        subsection (c)(3) of 
                                        section 2301 of the 
                                        CARES Act (26 U.S.C. 
                                        3111 note), taken into 
                                        account in determining 
                                        the credit allowed 
                                        under such section;
                                          (bb) qualified wages 
                                        taken into account in 
                                        determining the credit 
                                        allowed under 
                                        subsection (a) or (d) 
                                        of section 303 of the 
                                        Taxpayer Certainty and 
                                        Disaster Relief Act of 
                                        2020; or
                                          (cc) premiums taken 
                                        into account in 
                                        determining the credit 
                                        allowed under section 
                                        6432 of the Internal 
                                        Revenue Code of 1986.
                                  (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.
                          (iv) Limitation on forgiveness for 
                        all eligible entities.--Subject to any 
                        reductions under section 7A(d), 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.
                          (v) Submission of materials for 
                        forgiveness.--For purposes of applying 
                        subsection (l)(1) of section 7A to a 
                        covered loan of not more than $150,000 
                        under this paragraph, an eligible 
                        entity may be required to provide, at 
                        the time of the application for 
                        forgiveness, documentation required to 
                        substantiate revenue loss in accordance 
                        with subparagraph (I).
                  (K) 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).
                  (L) Reimbursement for loan processing and 
                servicing.--The Administrator shall reimburse a 
                lender authorized to make a covered loan--
                          (i) for a covered loan of not more 
                        than $50,000, in an amount equal to the 
                        lesser of--
                                  (I) 50 percent of the balance 
                                of the financing outstanding at 
                                the time of disbursement of the 
                                covered loan; or
                                  (II) $2,500;
                          (ii) at a rate, based on the balance 
                        of the financing outstanding at the 
                        time of disbursement of the covered 
                        loan, of--
                                  (I) 5 percent for a covered 
                                loan of more than $50,000 and 
                                not more than $350,000; and
                                  (II) 3 percent for a covered 
                                loan of more than $350,000.
                  (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) Supplemental covered loans.--A covered 
                loan under this paragraph may only be made to 
                an eligible entity that--
                          (i) has received a loan under 
                        paragraph (36); and
                          (ii) on or before the expected date 
                        on which the covered loan under this 
                        paragraph is disbursed to the eligible 
                        entity, has used, or will use, the full 
                        amount of the loan received under 
                        paragraph (36).
  (b) Except as to agricultural enterprises as defined in 
section 18(b)(1) of this Act, the Administration also is 
empowered to the extent and in such amounts as provided in 
advance in appropriation Acts--
          (1)(A) to make such loans (either directly or in 
        cooperation with banks or other lending institutions 
        through agreements to participate on an immediate or 
        deferred (guaranteed) basis) as the Administration may 
        determine to be necessary or appropriate to repair, 
        rehabilitate or replace property, real or personal, 
        damaged or destroyed by or as a result of natural or 
        other disasters: Provided, That such damage or 
        destruction is not compensated for by insurance or 
        otherwise: And provided further, That the 
        Administration may increase the amount of the loan by 
        up to an additional 20 per centum of the aggregate 
        costs of such damage or destruction (whether or not 
        compensated for by insurance or otherwise) if it 
        determines such increase to be necessary or appropriate 
        in order to protect the damaged or destroyed property 
        from possible future disasters by taking mitigating 
        measures, including--
                  (i) construction of retaining walls and sea 
                walls;
                  (ii) grading and contouring land; and
                  (iii) relocating utilities and modifying 
                structures, including construction of a safe 
                room or similar storm shelter designed to 
                protect property and occupants from tornadoes 
                or other natural disasters, if such safe room 
                or similar storm shelter is constructed in 
                accordance with applicable standards issued by 
                the Federal Emergency Management Agency;
          (B) to refinance any mortgage or other lien against a 
        totally destroyed or substantially damaged home or 
        business concern: Provided, That no loan or guarantee 
        shall be extended unless the Administration finds that 
        (i) the applicant is not able to obtain credit 
        elsewhere; (ii) such property is to be repaired, 
        rehabilitated, or replaced; (iii) the amount refinanced 
        shall not exceed the amount of physical loss sustained; 
        and (iv) such amount shall be reduced to the extent 
        such mortgage or lien is satisfied by insurance or 
        otherwise; and
          (C) during fiscal years 2000 through 2004, to 
        establish a predisaster mitigation program to make such 
        loans (either directly or in cooperation with banks or 
        other lending institutions through agreements to 
        participate on an immediate or deferred (guaranteed) 
        basis), as the Administrator may determine to be 
        necessary or appropriate, to enable small businesses to 
        use mitigation techniques in support of a formal 
        mitigation program established by the Federal Emergency 
        Management Agency, except that no loan or guarantee may 
        be extended to a small business under this subparagraph 
        unless the Administration finds that the small business 
        is otherwise unable to obtain credit for the purposes 
        described in this subparagraph;
          (2) to make such loans (either directly or in 
        cooperation with banks or other lending institutions 
        through agreements to participate on an immediate or 
        deferred (guaranteed) basis) as the Administration may 
        determine to be necessary or appropriate to any small 
        business concern, private nonprofit organization, or 
        small agricultural cooperative located in an area 
        affected by a disaster, (including drought), with 
        respect to both farm-related and nonfarm-related small 
        business concerns, if the Administration determines 
        that the concern, the organization, or the cooperative 
        has suffered a substantial economic injury as a result 
        of such disaster and if such disaster constitutes--
                  (A) a major disaster, as determined by the 
                President under the Robert T. Stafford Disaster 
                Relief and Emergency Assistance Act (42 U.S.C. 
                5121 et seq.);
                  (B) a natural disaster, as determined by the 
                Secretary of Agriculture pursuant to section 
                321 of the Consolidated Farm and Rural 
                Development Act (7 U.S.C. 1961), in which case, 
                assistance under this paragraph may be provided 
                to farm-related and nonfarm-related small 
                business concerns, subject to the other 
                applicable requirements of this paragraph;
                  (C) a disaster, as determined by the 
                Administrator of the Small Business 
                Administration;
                  (D) an emergency involving Federal primary 
                responsibility determined to exist by the 
                President under the section 501(b) of the 
                Robert T. Stafford Disaster Relief and 
                Emergency Assistance Act (42 U.S.C. 5191(b)); 
                or
                  (E) if no disaster or emergency declaration 
                has been issued pursuant to subparagraph (A), 
                (B), (C), or (D), the Governor of a State in 
                which a disaster or emergency has occurred may 
                certify to the Small Business Administration 
                that small business concerns, private nonprofit 
                organizations, or small agricultural 
                cooperatives (1) have suffered economic injury 
                as a result of such disaster or emergency, and 
                (2) are in need of financial assistance which 
                is not available on reasonable terms in the 
                disaster- or emergency-stricken area. Not later 
                than 30 days after the date of receipt of such 
                certification by a Governor of a State, the 
                Administration shall respond in writing to that 
                Governor on its determination and the reasons 
                therefore, and may then make such loans as 
                would have been available under this paragraph 
                if a disaster or emergency declaration had been 
                issued.
         Provided, That no loan or guarantee shall be extended 
        pursuant to this paragraph (2) unless the 
        Administration finds that the applicant is not able to 
        obtain credit elsewhere: Provided further, That for 
        purposes of subparagraph (D), the Administrator shall 
        deem that such an emergency affects each State or 
        subdivision thereof (including counties), and that each 
        State or subdivision has sufficient economic damage to 
        small business concerns to qualify for assistance under 
        this paragraph and the Administrator shall accept 
        applications for such assistance immediately.
          (3)(A) In this paragraph--
                  (i) the term ``active service'' has the 
                meaning given that term in section 101(d)(3) of 
                title 10, United States Code;
                  (ii) the term ``essential employee'' means an 
                individual who is employed by a small business 
                concern and whose managerial or technical 
                expertise is critical to the successful day-to-
                day operations of that small business concern; 
                and
                  (iii) the term ``substantial economic 
                injury'' means an economic harm to a business 
                concern that results in the inability of the 
                business concern--
                          (I) to meet its obligations as they 
                        mature;
                          (II) to pay its ordinary and 
                        necessary operating expenses; or
                          (III) to market, produce, or provide 
                        a product or service ordinarily 
                        marketed, produced, or provided by the 
                        business concern.
          (B) The Administration may make such disaster loans 
        (either directly or in cooperation with banks or other 
        lending institutions through agreements to participate 
        on an immediate or deferred basis) to assist a small 
        business concern that has suffered or that is likely to 
        suffer substantial economic injury as the result of an 
        essential employee of such small business concern being 
        ordered to perform active service for a period of more 
        than 30 consecutive days.
          (C) A small business concern described in 
        subparagraph (B) shall be eligible to apply for 
        assistance under this paragraph during the period 
        beginning on the date on which the essential employee 
        is ordered to active service and ending on the date 
        that is 1 year after the date on which such essential 
        employee is discharged or released from active service. 
        The Administrator may, when appropriate (as determined 
        by the Administrator), extend the ending date specified 
        in the preceding sentence by not more than 1 year.
          (D) Any loan or guarantee extended pursuant to this 
        paragraph shall be made at the same interest rate as 
        economic injury loans under paragraph (2).
          (E) No loan may be made under this paragraph, either 
        directly or in cooperation with banks or other lending 
        institutions through agreements to participate on an 
        immediate or deferred basis, if the total amount 
        outstanding and committed to the borrower under this 
        subsection would exceed $1,500,000, unless such 
        applicant constitutes, or have become due to changed 
        economic circumstances, a major source of employment in 
        its surrounding area, as determined by the 
        Administration, in which case the Administration, in 
        its discretion, may waive the $1,500,000 limitation.
          (F) For purposes of assistance under this paragraph, 
        no declaration of a disaster area shall be required.
                  (G)(i) Notwithstanding any other provision of 
                law, the Administrator may make a loan under 
                this paragraph of not more than $50,000 without 
                collateral.
                  (ii) The Administrator may defer payment of 
                principal and interest on a loan described in 
                clause (i) during the longer of--
                          (I) the 1-year period beginning on 
                        the date of the initial disbursement of 
                        the loan; and
                          (II) the period during which the 
                        relevant essential employee is on 
                        active service.
                  (H) The Administrator shall give priority to 
                any application for a loan under this paragraph 
                and shall process and make a determination 
                regarding such applications prior to processing 
                or making a determination on other loan 
                applications under this subsection, on a 
                rolling basis.
          (4) Coordination with fema.--
                  (A) In general.--Notwithstanding any other 
                provision of law, for any disaster declared 
                under this subsection or major disaster 
                (including any major disaster relating to which 
                the Administrator declares eligibility for 
                additional disaster assistance under paragraph 
                (9)), the Administrator, in consultation with 
                the Administrator of the Federal Emergency 
                Management Agency, shall ensure, to the maximum 
                extent practicable, that all application 
                periods for disaster relief under this Act 
                correspond with application deadlines 
                established under the Robert T. Stafford 
                Disaster Relief and Emergency Assistance Act 
                (42 U.S.C. 5121 et seq.), or as extended by the 
                President.
                  (B) Deadlines.--Notwithstanding any other 
                provision of law, not later than 10 days before 
                the closing date of an application period for a 
                major disaster (including any major disaster 
                relating to which the Administrator declares 
                eligibility for additional disaster assistance 
                under paragraph (9)), the Administrator, in 
                consultation with the Administrator of the 
                Federal Emergency Management Agency, 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 that includes--
                          (i) the deadline for submitting 
                        applications for assistance under this 
                        Act relating to that major disaster;
                          (ii) information regarding the number 
                        of loan applications and disbursements 
                        processed by the Administrator relating 
                        to that major disaster for each day 
                        during the period beginning on the date 
                        on which that major disaster was 
                        declared and ending on the date of that 
                        report; and
                          (iii) an estimate of the number of 
                        potential applicants that have not 
                        submitted an application relating to 
                        that major disaster.
          (5) Public awareness of disasters.--If a disaster is 
        declared under this subsection or the Administrator 
        declares eligibility for additional disaster assistance 
        under paragraph (9), the Administrator shall make every 
        effort to communicate through radio, television, print, 
        and web-based outlets, all relevant information needed 
        by disaster loan applicants, including--
                  (A) the date of such declaration;
                  (B) cities and towns within the area of such 
                declaration;
                  (C) loan application deadlines related to 
                such disaster;
                  (D) all relevant contact information for 
                victim services available through the 
                Administration (including links to small 
                business development center websites);
                  (E) links to relevant Federal and State 
                disaster assistance websites, including links 
                to websites providing information regarding 
                assistance available from the Federal Emergency 
                Management Agency;
                  (F) information on eligibility criteria for 
                Administration loan programs, including where 
                such applications can be found; and
                  (G) application materials that clearly state 
                the function of the Administration as the 
                Federal source of disaster loans for homeowners 
                and renters.
          (6) Authority for qualified private contractors.--
                  (A) Disaster loan processing.--The 
                Administrator may enter into an agreement with 
                a qualified private contractor, as determined 
                by the Administrator, to process loans under 
                this subsection in the event of a major 
                disaster (including any major disaster relating 
                to which the Administrator declares eligibility 
                for additional disaster assistance under 
                paragraph (9)), under which the Administrator 
                shall pay the contractor a fee for each loan 
                processed.
                  (B) Loan loss verification services.--The 
                Administrator may enter into an agreement with 
                a qualified lender or loss verification 
                professional, as determined by the 
                Administrator, to verify losses for loans under 
                this subsection in the event of a major 
                disaster (including any major disaster relating 
                to which the Administrator declares eligibility 
                for additional disaster assistance under 
                paragraph (9)), under which the Administrator 
                shall pay the lender or verification 
                professional a fee for each loan for which such 
                lender or verification professional verifies 
                losses.
          (7) Disaster assistance employees.--
                  (A) In general.--In carrying out this 
                section, the Administrator may, where 
                practicable, ensure that the number of full-
                time equivalent employees--
                          (i) in the Office of the Disaster 
                        Assistance is not fewer than 800; and
                          (ii) in the Disaster Cadre of the 
                        Administration is not fewer than 1,000.
                  (B) Report.--In carrying out this subsection, 
                if the number of full-time employees for either 
                the Office of Disaster Assistance or the 
                Disaster Cadre of the Administration is below 
                the level described in subparagraph (A) for 
                that office, not later than 21 days after the 
                date on which that staffing level decreased 
                below the level described in subparagraph (A), 
                the Administrator shall submit to the Committee 
                on Appropriations and the Committee on Small 
                Business and Entrepreneurship of the Senate and 
                the Committee on Appropriations and Committee 
                on Small Business of the House of 
                Representatives, a report--
                          (i) detailing staffing levels on that 
                        date;
                          (ii) requesting, if practicable and 
                        determined appropriate by the 
                        Administrator, additional funds for 
                        additional employees; and
                          (iii) containing such additional 
                        information, as determined appropriate 
                        by the Administrator.
          (8) Increased loan caps.--
                  (A) Aggregate loan amounts.--Except as 
                provided in subparagraph (B), and 
                notwithstanding any other provision of law, the 
                aggregate loan amount outstanding and committed 
                to a borrower under this subsection may not 
                exceed $2,000,000.
                  (B) Waiver authority.--The Administrator may, 
                at the discretion of the Administrator, 
                increase the aggregate loan amount under 
                subparagraph (A) for loans relating to a 
                disaster to a level established by the 
                Administrator, based on appropriate economic 
                indicators for the region in which that 
                disaster occurred.
          (9) Declaration of eligibility for additional 
        disaster assistance.--
                  (A) In general.--If the President declares a 
                major disaster, the Administrator may declare 
                eligibility for additional disaster assistance 
                in accordance with this paragraph.
                  (B) Threshold.--A major disaster for which 
                the Administrator declares eligibility for 
                additional disaster assistance under this 
                paragraph shall--
                          (i) have resulted in extraordinary 
                        levels of casualties or damage or 
                        disruption severely affecting the 
                        population (including mass 
                        evacuations), infrastructure, 
                        environment, economy, national morale, 
                        or government functions in an area;
                          (ii) be comparable to the description 
                        of a catastrophic incident in the 
                        National Response Plan of the 
                        Administration, or any successor 
                        thereto, unless there is no successor 
                        to such plan, in which case this clause 
                        shall have no force or effect; and
                          (iii) be of such size and scope 
                        that--
                                  (I) the disaster assistance 
                                programs under the other 
                                paragraphs under this 
                                subsection are incapable of 
                                providing adequate and timely 
                                assistance to individuals or 
                                business concerns located 
                                within the disaster area; or
                                  (II) a significant number of 
                                business concerns outside the 
                                disaster area have suffered 
                                disaster-related substantial 
                                economic injury as a result of 
                                the incident.
                  (C) Additional economic injury disaster loan 
                assistance.--
                          (i) In general.--If the Administrator 
                        declares eligibility for additional 
                        disaster assistance under this 
                        paragraph, the Administrator may make 
                        such loans under this subparagraph 
                        (either directly or in cooperation with 
                        banks or other lending institutions 
                        through agreements to participate on an 
                        immediate or deferred basis) as the 
                        Administrator determines appropriate to 
                        eligible small business concerns 
                        located anywhere in the United States.
                          (ii) Processing time.--
                                  (I) In general.--If the 
                                Administrator determines that 
                                the average processing time for 
                                applications for disaster loans 
                                under this subparagraph 
                                relating to a specific major 
                                disaster is more than 15 days, 
                                the Administrator shall give 
                                priority to the processing of 
                                such applications submitted by 
                                eligible small business 
                                concerns located inside the 
                                disaster area, until the 
                                Administrator determines that 
                                the average processing time for 
                                such applications is not more 
                                than 15 days.
                                  (II) Suspension of 
                                applications from outside 
                                disaster area.--If the 
                                Administrator determines that 
                                the average processing time for 
                                applications for disaster loans 
                                under this subparagraph 
                                relating to a specific major 
                                disaster is more than 30 days, 
                                the Administrator shall suspend 
                                the processing of such 
                                applications submitted by 
                                eligible small business 
                                concerns located outside the 
                                disaster area, until the 
                                Administrator determines that 
                                the average processing time for 
                                such applications is not more 
                                than 15 days.
                          (iii) Loan terms.--A loan under this 
                        subparagraph shall be made on the same 
                        terms as a loan under paragraph (2).
                  (D) Definitions.--In this paragraph--
                          (i) the term ``disaster area'' means 
                        the area for which the applicable major 
                        disaster was declared;
                          (ii) the term ``disaster-related 
                        substantial economic injury'' means 
                        economic harm to a business concern 
                        that results in the inability of the 
                        business concern to--
                                  (I) meet its obligations as 
                                it matures;
                                  (II) meet its ordinary and 
                                necessary operating expenses; 
                                or
                                  (III) market, produce, or 
                                provide a product or service 
                                ordinarily marketed, produced, 
                                or provided by the business 
                                concern because the business 
                                concern relies on materials 
                                from the disaster area or sells 
                                or markets in the disaster 
                                area; and
                          (iii) the term ``eligible small 
                        business concern'' means a small 
                        business concern--
                                  (I) that has suffered 
                                disaster-related substantial 
                                economic injury as a result of 
                                the applicable major disaster; 
                                and
                                  (II)(aa) for which not less 
                                than 25 percent of the market 
                                share of that small business 
                                concern is from business 
                                transacted in the disaster 
                                area;
                                  (bb) for which not less than 
                                25 percent of an input into a 
                                production process of that 
                                small business concern is from 
                                the disaster area; or
                                  (cc) that relies on a 
                                provider located in the 
                                disaster area for a service 
                                that is not readily available 
                                elsewhere.
          (10) Reducing closing and disbursement delays.--The 
        Administrator shall provide a clear and concise 
        notification on all application materials for loans 
        made under this subsection and on relevant websites 
        notifying an applicant that the applicant may submit 
        all documentation necessary for the approval of the 
        loan at the time of application and that failure to 
        submit all documentation could delay the approval and 
        disbursement of the loan.
          (11) Increasing transparency in loan approvals.--The 
        Administrator shall establish and implement clear, 
        written policies and procedures for analyzing the 
        ability of a loan applicant to repay a loan made under 
        this subsection.
          (12) Additional awards to small business development 
        centers, women's business centers, and score for 
        disaster recovery.--
                  (A) In general.--The Administration may 
                provide financial assistance to a small 
                business development center, a women's business 
                center described in section 29, the Service 
                Corps of Retired Executives, or any proposed 
                consortium of such individuals or entities to 
                spur disaster recovery and growth of small 
                business concerns located in an area for which 
                the President has declared a major disaster.
                  (B) Form of financial assistance.--Financial 
                assistance provided under this paragraph shall 
                be in the form of a grant, contract, or 
                cooperative agreement.
                  (C) No matching funds required.--Matching 
                funds shall not be required for any grant, 
                contract, or cooperative agreement under this 
                paragraph.
                  (D) Requirements.--A recipient of financial 
                assistance under this paragraph shall provide 
                counseling, training, and other related 
                services, such as promoting long-term 
                resiliency, to small business concerns and 
                entrepreneurs impacted by a major disaster.
                  (E) Performance.--
                          (i) In general.--The Administrator, 
                        in cooperation with the recipients of 
                        financial assistance under this 
                        paragraph, shall establish metrics and 
                        goals for performance of grants, 
                        contracts, and cooperative agreements 
                        under this paragraph, which shall 
                        include recovery of sales, recovery of 
                        employment, reestablishment of business 
                        premises, and establishment of new 
                        small business concerns.
                          (ii) Use of estimates.--The 
                        Administrator shall base the goals and 
                        metrics for performance established 
                        under clause (i), in part, on the 
                        estimates of disaster impact prepared 
                        by the Office of Disaster Assistance 
                        for purposes of estimating loan-making 
                        requirements.
                  (F) Term.--
                          (i) In general.--The term of any 
                        grant, contract, or cooperative 
                        agreement under this paragraph shall be 
                        for not more than 2 years.
                          (ii) Extension.--The Administrator 
                        may make 1 extension of a grant, 
                        contract, or cooperative agreement 
                        under this paragraph for a period of 
                        not more than 1 year, upon a showing of 
                        good cause and need for the extension.
                  (G) Exemption from other program 
                requirements.--Financial assistance provided 
                under this paragraph is in addition to, and 
                wholly separate from, any other form of 
                assistance provided by the Administrator under 
                this Act.
                  (H) Competitive basis.--The Administration 
                shall award financial assistance under this 
                paragraph on a competitive basis.
          (13) Supplemental assistance for contractor 
        malfeasance.--
                  (A) In general.--If a contractor or other 
                person engages in malfeasance in connection 
                with repairs to, rehabilitation of, or 
                replacement of real or personal property 
                relating to which a loan was made under this 
                subsection and the malfeasance results in 
                substantial economic damage to the recipient of 
                the loan or substantial risks to health or 
                safety, upon receiving documentation of the 
                substantial economic damage or the substantial 
                risk to health and safety from an independent 
                loss verifier, and subject to subparagraph (B), 
                the Administrator may increase the amount of 
                the loan under this subsection, as necessary 
                for the cost of repairs, rehabilitation, or 
                replacement needed to address the cause of the 
                economic damage or health or safety risk.
                  (B) Requirements.--The Administrator may only 
                increase the amount of a loan under 
                subparagraph (A) upon receiving an appropriate 
                certification from the borrower and person 
                performing the mitigation attesting to the 
                reasonableness of the mitigation costs and an 
                assignment of any proceeds received from the 
                person engaging in the malfeasance. The 
                assignment of proceeds recovered from the 
                person engaging in the malfeasance shall be 
                equal to the amount of the loan under this 
                section. Any mitigation activities shall be 
                subject to audit and independent verification 
                of completeness and cost reasonableness.
          (14) Business recovery centers.--
                  (A) In general.--The Administrator, acting 
                through the district offices of the 
                Administration, shall identify locations that 
                may be used as recovery centers by the 
                Administration in the event of a disaster 
                declared under this subsection or a major 
                disaster.
                  (B) Requirements for identification.--Each 
                district office of the Administration shall--
                          (i) identify a location described in 
                        subparagraph (A) in each county, 
                        parish, or similar unit of general 
                        local government in the area served by 
                        the district office; and
                          (ii) ensure that the locations 
                        identified under subparagraph (A) may 
                        be used as a recovery center without 
                        cost to the Government, to the extent 
                        practicable.
          (15) Increased oversight of economic injury disaster 
        loans.--The Administrator shall increase oversight of 
        entities receiving loans under paragraph (2), and may 
        consider--
                  (A) scheduled site visits to ensure borrower 
                eligibility and compliance with requirements 
                established by the Administrator; and
                  (B) reviews of the use of the loan proceeds 
                by an entity described in paragraph (2) to 
                ensure compliance with requirements established 
                by the Administrator.
          (16) Statute of limitations.--Notwithstanding any 
        other provision of law, any criminal charge or civil 
        enforcement action alleging that a borrower engaged in 
        fraud with respect to a loan made under this subsection 
        in response to COVID-19 during the covered period (as 
        defined in section 1110(a) of the CARES Act) shall be 
        filed not later than 10 years after the offense was 
        committed.
   No loan under this subsection, including renewals and 
extensions thereof, may be made for a period or periods 
exceeding thirty years: Provided, That the Administrator may 
consent to a suspension in the payment of principal and 
interest charges on, and to an extension in the maturity of, 
the Federal share of any loan under this subsection for a 
period not to exceed five years, if (A) the borrower under such 
loan is a homeowner or a small business concern, (B) the loan 
was made to enable (i) such homeowner to repair or replace his 
home, or (ii) such concern to repair or replace plant or 
equipment which was damaged or destroyed as the result of a 
disaster meeting the requirements of clause (A) or (B) of 
paragraph (2) of this subsection, and (C) the Administrator 
determines such action is necessary to avoid severe financial 
hardship: Provided further, That the provisions of paragraph 
(1) of subsection (d) of this section shall not be applicable 
to any such loan having a maturity in excess of twenty years. 
Notwithstanding any other provision of law, and except as 
provided in subsection (d), the interest rate on the 
Administration's share of any loan made under subsection (b), 
shall not exceed the average annual interest rate on all 
interest-bearing obligations of the United States then forming 
a part of the public debt as computed at the end of the fiscal 
year next preceding the date of the loan and adjusted to the 
nearest one-eight of 1 per centum plus one-quarter of 1 per 
centum: Provided, however, That the interest rate for loans 
made under paragraphs (1) and (2) hereof shall not exceed the 
rate of interest which is in effect at the time of the 
occurrence of the disaster. In agreements to participate in 
loans on a deferred basis under this subsection, such 
participation by the Administration shall not be in excess of 
90 per centum of the balance of the loan outstanding at the 
time of disbursement. Notwithstanding any other provision of 
law, the interest rate on the Administration's share of any 
loan made pursuant to paragraph (1) of this subsection to 
repair or replace a primary residence and/or replace or repair 
damaged or destroyed personal property, less the amount of 
compensation by insurance or otherwise, with respect to a 
disaster occurring on or after July 1, 1976, and prior to 
October 1, 1978, shall be: 1 per centum on the amount of such 
loan not exceeding $10,000, and 3 per centum on the amount of 
such loan over $10,000 but not exceeding $40,000. The interest 
rate on the Administration's share of the first $250,000 of all 
other loans made pursuant to paragraph (1) of this subsection, 
with respect to a disaster occurring on or after July 1, 1976, 
and prior to October 1, 1978, shall be 3 per centum. All 
repayments of principal on the Administration's share of any 
loan made under the above provisions shall first be applied to 
reduce the principal sum of such loan which bears interest at 
the lower rates provided in this paragraph. The principal 
amount of any loan made pursuant to paragraph (1) in connection 
with a disaster which occurs on or after April 1, 1977, but 
prior to January 1, 1978, may be increased by such amount, but 
not more than $2,000, as the Administration determines to be 
reasonable in light of the amount and nature of loss, damage, 
or injury sustained in order to finance the installation of 
insulation in the property which was lost, damaged, or injured, 
if the uninsured, damaged portion of the property is 10 per 
centum or more of the market value of the property at the time 
of the disaster. No later than June 1, 1978, the Administration 
shall prepare and transmit to the Select Committee on Small 
Business of the Senate, the Committee on Small Business of the 
House of Representatives, and the Committee of the Senate and 
House of Representatives having jurisdiction over measures 
relating to energy conservation, a report on its activities 
under this paragraph, including therein an evaluation of the 
effect of such activities on encouraging the installation of 
insulation in property which is repaired or replaced after a 
disaster which is subject to this paragraph, and its 
recommendations with respect to the continuation, modification, 
or termination of such activities.
   In the administration of the disaster loan program under 
paragraphs (1) and (2) of this subsection, in the case of 
property loss or damage or injury resulting from a major 
disaster as determined by the President or a disaster as 
determined by the Administrator which occurs on or after 
January 1, 1971, and prior to July 1, 1973, the Small Business 
Administration, to the extent such loss or damage or injury is 
not compensated for by insurance or otherwise--
          (A) may make any loan for repair, rehabilitation, or 
        replacement of property damaged or destroyed without 
        regard to whether the required financial assistance is 
        otherwise available from private sources;
          (B) may, in the case of the total destruction or 
        substantial property damage of a home or business 
        concern, refinance any mortgage or other liens 
        outstanding against the destroyed or damaged property 
        if such project is to be repaired, rehabilitated, or 
        replaced, except that (1) in the case of a business 
        concern, the amount refinanced shall not exceed the 
        amount of the physical loss sustained, and (2) in the 
        case of a home, the amount of each monthly payment of 
        principal and interest on the loan after refinancing 
        under this clause shall be not less than the amount of 
        each such payment made prior to such refinancing;
          (C) may, in the case of a loan made under clause (A) 
        or a mortgage or other lien refinanced under clause (B) 
        in connection with the destruction of, or substantial 
        damage to, property owned and used as a residence by an 
        individual who by reason of retirement, disability, or 
        other similar circumstances relies for support on 
        survivor, disability, or retirement benefits under a 
        pension, insurance, or other program, consent to the 
        suspension of the payments of the principal of that 
        loan, mortgage, or lien during the lifetime of that 
        individual and his souse for so long as the 
        Administration determines that making such payments 
        would constitute a substantial hardship;
          (D) shall, notwithstanding the provisions of any 
        other law and upon presentation by the applicant of 
        proof of loss or damage or injury and a bona fide 
        estimate of cost of repair, rehabilitation, or 
        replacement, cancel the principal of any loan made to 
        cover a loss or damage or injury resulting from such 
        disaster, except that--
                  (i) with respect to a loan made in connection 
                with a disaster occurring on or after January 
                1, 1971 but prior to January 1, 1972, the total 
                amount so canceled shall not exceed $2,500, and 
                the interest on the balance of the loan shall 
                be at a rate of 3 per centum per annum; and
                  (ii) with respect to a loan made in 
                connection with a disaster occurring on or 
                after January 1, 1972 but prior to July 1, 
                1973, the total amount so canceled shall not 
                exceed $5,000, and the interest on the balance 
                of the loan shall be at a rate of 1 per centum 
                per annum.
  With respect to any loan referred to in clause (D) which is 
outstanding on the date of enactment of this paragraph, the 
Administrator shall--
          (i) make sure change in the interest rate on the 
        balance of such loan as is required under that clause 
        effective as of such date of enactment; and
          (ii) in applying the limitation set forth in that 
        clause with respect to the total amount of such loan 
        which may be canceled, consider as part of the amount 
        so canceled any part of such loan which was previously 
        canceled pursuant to section 231 of the Disaster Relief 
        Act of 1970.
  Whoever wrongfully misapplies the proceeds of a loan obtained 
under this subsection shall be civilly liable to the 
Administrator in an amount equal to one-and-one-half times the 
original principal amount of the loan.
          (E) A State grant made on or prior to July 1, 1979, 
        shall not be considered compensation for the purpose of 
        applying the provisions of section 312(a) of the 
        Disaster Relief and Emergency Assistance Act to a 
        disaster loan under paragraph (1) (2)of this 
        subsection.
  (c) Private Disaster Loans.--
          (1) Definitions.--In this subsection--
                  (A) the term ``disaster area'' means any area 
                for which the President declared a major 
                disaster relating to which the Administrator 
                declares eligibility for additional disaster 
                assistance under subsection (b)(9), during the 
                period of that major disaster declaration;
                  (B) the term ``eligible individual'' means an 
                individual who is eligible for disaster 
                assistance under subsection (b)(1) relating to 
                a major disaster relating to which the 
                Administrator declares eligibility for 
                additional disaster assistance under subsection 
                (b)(9);
                  (C) the term ``eligible small business 
                concern'' means a business concern that is--
                          (i) a small business concern, as 
                        defined under this Act; or
                          (ii) a small business concern, as 
                        defined in section 103 of the Small 
                        Business Investment Act of 1958;
                  (D) the term ``preferred lender'' means a 
                lender participating in the Preferred Lender 
                Program;
                  (E) the term ``Preferred Lender Program'' has 
                the meaning given that term in subsection 
                (a)(2)(C)(ii); and
                  (F) the term ``qualified private lender'' 
                means any privately-owned bank or other lending 
                institution that--
                          (i) is not a preferred lender; and
                          (ii) the Administrator determines 
                        meets the criteria established under 
                        paragraph (10).
          (2) Program required.--The Administrator shall carry 
        out a program, to be known as the Private Disaster 
        Assistance program, under which the Administration may 
        guarantee timely payment of principal and interest, as 
        scheduled, on any loan made to an eligible small 
        business concern located in a disaster area and to an 
        eligible individual.
          (3) Use of loans.--A loan guaranteed by the 
        Administrator under this subsection may be used for any 
        purpose authorized under subsection (b).
          (4) Online applications.--
                  (A) Establishment.--The Administrator may 
                establish, directly or through an agreement 
                with another entity, an online application 
                process for loans guaranteed under this 
                subsection.
                  (B) Other federal assistance.--The 
                Administrator may coordinate with the head of 
                any other appropriate Federal agency so that 
                any application submitted through an online 
                application process established under this 
                paragraph may be considered for any other 
                Federal assistance program for disaster relief.
                  (C) Consultation.--In establishing an online 
                application process under this paragraph, the 
                Administrator shall consult with appropriate 
                persons from the public and private sectors, 
                including private lenders.
          (5) Maximum amounts.--
                  (A) Guarantee percentage.--The Administrator 
                may guarantee not more than 85 percent of a 
                loan under this subsection.
                  (B) Loan amount.--The maximum amount of a 
                loan guaranteed under this subsection shall be 
                $2,000,000.
          (6) Terms and conditions.--A loan guaranteed under 
        this subsection shall be made under the same terms and 
        conditions as a loan under subsection (b).
          (7) Lenders.--
                  (A) In general.--A loan guaranteed under this 
                subsection made to--
                          (i) a qualified individual may be 
                        made by a preferred lender; and
                          (ii) a qualified small business 
                        concern may be made by a qualified 
                        private lender or by a preferred lender 
                        that also makes loans to qualified 
                        individuals.
                  (B) Compliance.--If the Administrator 
                determines that a preferred lender knowingly 
                failed to comply with the underwriting 
                standards for loans guaranteed under this 
                subsection or violated the terms of the 
                standard operating procedure agreement between 
                that preferred lender and the Administration, 
                the Administrator shall do 1 or more of the 
                following:
                          (i) Exclude the preferred lender from 
                        participating in the program under this 
                        subsection.
                          (ii) Exclude the preferred lender 
                        from participating in the Preferred 
                        Lender Program for a period of not more 
                        than 5 years.
          (8) Fees.--
                  (A) In general.--The Administrator may not 
                collect a guarantee fee under this subsection.
                  (B) Origination fee.--The Administrator may 
                pay a qualified private lender or preferred 
                lender an origination fee for a loan guaranteed 
                under this subsection in an amount agreed upon 
                in advance between the qualified private lender 
                or preferred lender and the Administrator.
          (9) Documentation.--A qualified private lender or 
        preferred lender may use its own loan documentation for 
        a loan guaranteed by the Administrator under this 
        subsection, to the extent authorized by the 
        Administrator. The ability of a lender to use its own 
        loan documentation for a loan guaranteed under this 
        subsection shall not be considered part of the criteria 
        for becoming a qualified private lender under the 
        regulations promulgated under paragraph (10).
          (10) Implementation regulations.--
                  (A) In general.--Not later than 1 year after 
                the date of enactment of the Small Business 
                Disaster Response and Loan Improvements Act of 
                2008, the Administrator shall issue final 
                regulations establishing permanent criteria for 
                qualified private lenders.
                  (B) Report to congress.--Not later than 6 
                months after the date of enactment of the Small 
                Business Disaster Response and Loan 
                Improvements Act of 2008, the Administrator 
                shall submit a report on the progress of the 
                regulations required by subparagraph (A) to the 
                Committee on Small Business and 
                Entrepreneurship of the Senate and the 
                Committee on Small Business of the House of 
                Representatives.
          (11) Authorization of appropriations.--
                  (A) In general.--Amounts necessary to carry 
                out this subsection shall be made available 
                from amounts appropriated to the Administration 
                to carry out subsection (b).
                  (B) Authority to reduce interest rates and 
                other terms and conditions.--Funds appropriated 
                to the Administration to carry out this 
                subsection, may be used by the Administrator to 
                meet the loan terms and conditions specified in 
                paragraph (6).
          (12) Purchase of loans.--The Administrator may enter 
        into an agreement with a qualified private lender or 
        preferred lender to purchase any loan guaranteed under 
        this subsection.
  (d)(1) The Administration may further extend the maturity of 
or renew any loan made pursuant to this section, or any loan 
transferred to the Administration pursuant to Reorganization 
Plan Numbered 2 of 1954, or Reorganization Plan Numbered 1 of 
1957, for additional periods not to exceed ten years beyond the 
period stated therein, if such extension or renewal will aid in 
the orderly liquidation of such loan.
          (2) During any period in which principal and interest 
        charges are suspended on the Federal share of any loan, 
        as provided in subsection (b), the Administrator shall, 
        upon the request of any person, firm, or corporation 
        having a participation in such loan, purchase such 
        participation, or assume the obligation of the 
        borrower, for the balance of such period, to make 
        principal and interest payments on the non-Federal 
        share of such loan: Provided, That no such payments 
        shall be made by the Administrator in behalf of any 
        borrower unless (i) the Administrator determines that 
        such action is necessary in order to avoid a default, 
        and (ii) the borrower agrees to make payments to the 
        Administration in an agreegate amount equal to the 
        amount paid in its behalf by the Administrator, in such 
        manner and at such time (during or after the term of 
        the loan) as the Administrator shall determine having 
        due regard to the purposes sought to be achieved by 
        this paragraph.
          (3) With respect to a disaster occurring on or after 
        October 1, 1978, and prior the effective date of this 
        Act, on the Administration's share of loans made 
        pursuant to paragraph (1) of subsection (b)--
                          (A) if the loan proceeds are to 
                        repair or replace a primary residence 
                        and/or repair or replace damaged or 
                        destroyed personal property, the 
                        interest rate shall be 3 percent on the 
                        first $55,000 of such loan;
                          (B) if the loan proceeds are to 
                        repair or replace property damaged or 
                        destroyed and if the applicant is a 
                        business concern which is unable to 
                        obtain sufficient credit elsewhere, the 
                        interest rate shall be as determined by 
                        the Administration, but not in excess 
                        of 5 percent per annum; and
                  (C) if the loan proceeds are to repair or 
                replace property damaged or destroyed and if 
                the applicant is a business concern which is 
                able to obtain sufficient credit elsewhere, the 
                interest rate shall not exceed the current 
                average market yield on outstanding marketable 
                obligations of the United States with remaining 
                periods to maturity comparable to the average 
                maturities of such loans and adjusted to the 
                nearest one-eight of 1 percent, and an 
                additional amount as determined by the 
                Administration, but not to exceed 1 percent: 
                Provided, That three years after such loan is 
                fully disbursed and every two years thereafter 
                for the term of the loan, if the Administration 
                determines that the borrower is able to obtain 
                a loan from one-Federal sources at reasonable 
                rates and terms for loans of similar purposes 
                and periods of time, the borrower shall, upon 
                request by the Administration, apply for and 
                accept such a loan in sufficient amount to 
                repay the Administration: Provided further, 
                That no loan under subsection (b)(1) shall be 
                made, either directly or in cooperation with 
                banks or other lending institutions through 
                agreements to participate on an immediate or 
                deferred basis, if the total amount outstanding 
                and committed to the borrower under such 
                subsection would exceed $500,000 for each 
                disaster, unless an applicant constitutes a 
                major source of employment in an area suffering 
                a disaster, in which case the Administration, 
                in its discretion, may waive the $500,000 
                limitation.
          (4) Notwithstanding the provisions of any other law, 
        the interest rate on the Federal share of any loan made 
        under subsection (b) shall be--
                  (A) in the case of a homeowner unable to 
                secure credit elsewhere, the rate prescribed by 
                the Administration but not more than one-half 
                the rate determined by the Secretary of the 
                Treasury taking into consideration the current 
                average market yield on outstanding marketable 
                obligations of the United States with remaining 
                periods to maturity comparable to the average 
                maturities of such loans plus an additional 
                charge of not to exceed 1 per centum per annum 
                as determined by the Administrator, and 
                adjusted to the nearest one-eight of 1 per 
                centum but not to exceed 8 per centum per 
                annum;
                  (B) in the case of a homeowner able to secure 
                credit elsewhere, the rate prescribed by the 
                Administration but not more than the rate 
                determined by the Secretary of the Treasury 
                taking into consideration the current average 
                market yield on outstanding marketable 
                obligations of the United States with remaining 
                periods to maturity comparable to the average 
                maturities of such loans plus an additional 
                charge of not to exceed 1 per centum per annum 
                as determined by the Administrator, and 
                adjusted to the nearest one-eighth of 1 per 
                centum;
                  (C) in the case of a business concern unable 
                to obtain credit elsewhere, not to exceed 8 per 
                centum per annum;
                  (D) in the case of a business concern able to 
                obtain credit elsewhere, the rate prescribed by 
                the Administration but not in excess of the 
                rate prevailing in private market for similar 
                loans and not more than the rate prescribed by 
                the Administration as the maximum interest rate 
                for deferred participation (guaranteed) loans 
                under section 7(a) of this Act. Loans under 
                this subparagraph shall be limited to a maximum 
                term of three years.
          (5) Notwithstanding the provisions of any other law, 
        the interest rate on the Federal share of any loan made 
        under subsection (b)(1) and (b)(2) on account of a 
        disaster commencing on or after October 1, 1982, shall 
        be--
                  (A) in the case of a homeowner unable to 
                secure credit elsewhere, the rate prescribed by 
                the Administration but not more than one-half 
                the rate determined by the Secretary of the 
                Treasury taking into consideration the current 
                average market yield on outstanding marketable 
                obligations of the United States with remaining 
                periods to maturity comparable to the average 
                maturities of such loan plus an additional 
                charge of not to exceed 1 per centum per annum 
                as determined by the Administrator, and 
                adjusted to the nearest one-eighth of 1 per 
                centum, but not to exceed 4 per centum per 
                annum;
                  (B) in the case of a homeowner, able to 
                secure credit elsewhere, the rate prescribed by 
                the Administration but not more than the rate 
                determined by the Secretary of the Treasury 
                taking into consideration the current average 
                market yield on outstanding marketable 
                obligations of the United States with remaining 
                periods to maturity comparable to the average 
                maturities of such loans plus an additional 
                charge of not to exceed 1 per centum per annum 
                as determined by the Administrator, and 
                adjusted to the nearest one-eighth of 1 per 
                centum, but not to exceed 8 per centum per 
                annum;
                  (C) in the case of a business, private 
                nonprofit organization, or other concern, 
                including agricultural cooperatives, unable to 
                obtain credit elsewhere, not to exceed 4 per 
                centum per annum;
                  (D) in the case of a business concern able to 
                obtain credit elsewhere, the rate prescribed by 
                the Administration but not in excess of the 
                lowest of (i) the rate prevailing in the 
                private market for similar loans, (ii) the rate 
                prescribed by the Administration as the maximum 
                interest rate for deferred participation 
                (guaranteed) loans under section 7(a) of this 
                Act, or (iii) 8 per centum per annum. Loans 
                under this subparagraph shall be limited to a 
                maximum term of 7 years.
          (6) Notwithstanding the provisions of any other law, 
        such loans, subject to the reductions required by 
        subparagraphs (A) and (B) of paragraph 7(b)(1), shall 
        be in amounts equal to 100 per centum of loss. The 
        interest rate for loans made under paragraphs 7(b)(1) 
        and (2), as determined pursuant to paragraph (5), shall 
        be the rate of interest which is in effect on the date 
        of the disaster commenced: Provided, That no loan under 
        paragraphs 7(b) (1) and (2) shall be made, either 
        directly or in cooperation with banks or other lending 
        institutions through agreements to participate on an 
        immediate or deferred (guaranteed) basis, if the total 
        amount outstanding and committed to the borrower under 
        subsection 7(b) would exceed $500,000 for each disaster 
        unless an applicant constitutes a major source of 
        employment in an area suffering a disaster, in which 
        case the Administration, in its discretion, may waive 
        the $500,000 limitation: Provided further, That the 
        Administration, subject to the reductions required by 
        subparagraphs (A) and (B) of paragraph 7(b)(1), shall 
        not reduce the amount of eligibility for any homeowner 
        on account of loss of real estate to less than $100,000 
        for each disaster nor for any homeowner or lessee on 
        account of loss of personal property to less than 
        $20,000 for each disaster, such sums being in addition 
        to any eligible refinancing: Provided further, That the 
        Administration shall not require collateral for loans 
        of $25,000 or less (or such higher amount as the 
        Administrator determines appropriate in the event of a 
        disaster) which are made under paragraph (1) of 
        subsection (b): Provided further, That the 
        Administrator, in obtaining the best available 
        collateral for a loan of not more than $200,000 under 
        paragraph (1) or (2) of subsection (b) relating to 
        damage to or destruction of the property of, or 
        economic injury to, a small business concern, shall not 
        require the owner of the small business concern to use 
        the primary residence of the owner as collateral if the 
        Administrator determines that the owner has other 
        assets of equal quality and with a value equal to or 
        greater than the amount of the loan that could be used 
        as collateral for the loan: Provided further, That 
        nothing in the preceding proviso may be construed to 
        reduce the amount of collateral required by the 
        Administrator in connection with a loan described in 
        the preceding proviso or to modify the standards used 
        to evaluate the quality (rather than the type) of such 
        collateral. Employees of concerns sharing a common 
        business premises shall be aggregated in determining 
        ``major source of employment'' status for nonprofit 
        applicants owning such premises.
With respect to any loan which is outstanding on the date of 
enactment of this paragraph and which was made on account of a 
disaster commencing on or after October 1, 1982, the 
Administrator shall made such change in the interest rate on 
the balance of such loan as is required herein effective as of 
the date of enactment.
=======================================================================


[Note: Effective on November 25, 2022, section 2102(b) of 
Public Law 114-88 (as amended) provides for amendments to the 
third proviso of section 7(d)(6). Upon such date, paragraph (6) 
will read as follows:]

          (6) Notwithstanding the provisions of any other law, 
        such loans, subject to the reductions required by 
        subparagraphs (A) and (B) of paragraph 7(b)(1), shall 
        be in amounts equal to 100 per centum of loss. The 
        interest rate for loans made under paragraphs 7(b)(1) 
        and (2), as determined pursuant to paragraph (5), shall 
        be the rate of interest which is in effect on the date 
        of the disaster commenced: Provided, That no loan under 
        paragraphs 7(b) (1) and (2) shall be made, either 
        directly or in cooperation with banks or other lending 
        institutions through agreements to participate on an 
        immediate or deferred (guaranteed) basis, if the total 
        amount outstanding and committed to the borrower under 
        subsection 7(b) would exceed $500,000 for each disaster 
        unless an applicant constitutes a major source of 
        employment in an area suffering a disaster, in which 
        case the Administration, in its discretion, may waive 
        the $500,000 limitation: Provided further, That the 
        Administration, subject to the reductions required by 
        subparagraphs (A) and (B) of paragraph 7(b)(1), shall 
        not reduce the amount of eligibility for any homeowner 
        on account of loss of real estate to less than $100,000 
        for each disaster nor for any homeowner or lessee on 
        account of loss of personal property to less than 
        $20,000 for each disaster, such sums being in addition 
        to any eligible refinancing: Provided further, That the 
        Administration shall not require collateral for loans 
        of $14,000 or less (or such higher amount as the 
        Administrator determines appropriate in the event of a 
        major disaster) which are made under paragraph (1) of 
        subsection (b): Provided further, That the 
        Administrator, in obtaining the best available 
        collateral for a loan of not more than $200,000 under 
        paragraph (1) or (2) of subsection (b) relating to 
        damage to or destruction of the property of, or 
        economic injury to, a small business concern, shall not 
        require the owner of the small business concern to use 
        the primary residence of the owner as collateral if the 
        Administrator determines that the owner has other 
        assets of equal quality and with a value equal to or 
        greater than the amount of the loan that could be used 
        as collateral for the loan: Provided further, That 
        nothing in the preceding proviso may be construed to 
        reduce the amount of collateral required by the 
        Administrator in connection with a loan described in 
        the preceding proviso or to modify the standards used 
        to evaluate the quality (rather than the type) of such 
        collateral. Employees of concerns sharing a common 
        business premises shall be aggregated in determining 
        ``major source of employment'' status for nonprofit 
        applicants owning such premises.
With respect to any loan which is outstanding on the date of 
enactment of this paragraph and which was made on account of a 
disaster commencing on or after October 1, 1982, the 
Administrator shall made such change in the interest rate on 
the balance of such loan as is required herein effective as of 
the date of enactment.
=======================================================================

  (7) The Administration shall not withhold disaster assistance 
pursuant to this paragraph to nurseries who are victims of 
drought disasters. As used in section 7(b)(2) the term ``an 
area affected by a disaster'' includes any county, or county 
contiguous thereto, determined to be a disaster by the 
President, the Secretary of Agriculture or the Administrator of 
the Small Business Administration.
          (8) Disaster loans for superstorm sandy.--
                  (A) In general.--Notwithstanding any other 
                provision of law, and subject to the same 
                requirements and procedures that are used to 
                make loans pursuant to subsection (b), a small 
                business concern, homeowner, nonprofit entity, 
                or renter that was located within an area and 
                during the time period with respect to which a 
                major disaster was declared by the President 
                under section 401 of the Robert T. Stafford 
                Disaster Relief and Emergency Assistance Act 
                (42 U.S.C. 5170) by reason of Superstorm Sandy 
                may apply to the Administrator--
                          (i) for a loan to repair, 
                        rehabilitate, or replace property 
                        damaged or destroyed by reason of 
                        Superstorm Sandy; or
                          (ii) if such a small business concern 
                        has suffered substantial economic 
                        injury by reason of Superstorm Sandy, 
                        for a loan to assist such a small 
                        business concern.
                  (B) Timing.--The Administrator shall select 
                loan recipients and make available loans for a 
                period of not less than 1 year after the date 
                on which the Administrator carries out this 
                authority.
                  (C) Inspector general review.--Not later than 
                6 months after the date on which the 
                Administrator begins carrying out this 
                authority, the Inspector General of the 
                Administration shall initiate a review of the 
                controls for ensuring applicant eligibility for 
                loans made under this paragraph.
  (e) The Administration shall not fund any Small Business 
Development Center or any variation thereof, except as 
authorized in section 21 of this Act.
  (f) Additional Requirements for 7(b) Loans.--
          (1) Increased deferment authorized.--
                  (A) In general.--In making loans under 
                subsection (b), the Administrator may provide, 
                to the person receiving the loan, an option to 
                defer repayment on the loan.
                  (B) Period.--The period of a deferment under 
                subparagraph (A) may not exceed 4 years.
  (g) Net Earnings Clauses Prohibited for 7(b) Loans.--In 
making loans under subsection (b), the Administrator shall not 
require the borrower to pay any non-amortized amount for the 
first five years after repayment begins.
  (e) [RESERVED].
  (f) [RESERVED].
  (h)(1) The Administration also is empowered, where other 
financial assistance is not available on reasonable terms, to 
make such loans (either directly or in cooperation with Banks 
or other lending institutions through agreements to participate 
on an immediate or deferred basis) as the Administration may 
determine to be necessary or appropriate--
          (A) to assist any public or private organization--
                  (i) which is organized under the laws of the 
                United States or of any State, operated in the 
                interest of handicapped individuals, the net 
                income of which does not inure in whole or in 
                part to the benefit of any shareholder or other 
                individual;
                  (ii) which complies with any applicable 
                occupational health and safety standard 
                prescribed by the Secretary of Labor; and
                  (iii) which, in the production of commodities 
                and in the provision of services during any 
                fiscal year in which it receives financial 
                assistance under this subsection, employs 
                handicapped individuals for not less than 75 
                per centum of the man-hours required for the 
                production or provision of the commodities or 
                services; or
          (B) to assist any handicapped individual in 
        establishing, acquiring, or operating a small business 
        concern.
  (2) The Administration's share of any loan made under this 
subsection shall not exceed $350,000, nor may any such loan be 
made if the total amount outstanding and committed (by 
participation or otherwise) to the borrower from the business 
loan and investment fund established by section 4(c)(1)(B) of 
this Act would exceed $350,000. In agreements to participate in 
loans on a deferred basis under this subsection, the 
Administration's participation may total 100 per centum of the 
balance of the loan at the time of disbursement. The 
Administration's share of any loan made under this subsection 
shall bear interest at the rate of 3 per centum per annum. The 
maximum term of any such loan, including extensions and 
renewals thereof, may not exceed fifteen years. All loans made 
under this subsection shall be of such sound value or so 
secured as reasonably to assure repayment: Provided, however, 
That any reasonable doubt shall be resolved in favor of the 
applicant.
  (3) For purposes of this subsection, the term ``handicapped 
individual'' means a person who has a physical, mental, or 
emotional impairment, defect, ailment, disease, or disability 
of a permanent nature which in any way limits the selection of 
any type of employment for which the person would otherwise be 
qualified or qualifiable.
  (i)(1) The Administration also is empowered to make, 
participate (on an immediate basis) in, or guarantee loans, 
repayable in not more than fifteen years, to any small business 
concern, or to any qualified person seeking to establish such a 
concern, when it determines that such loans will further the 
policies established in section 2(b) of this Act, with 
particular emphasis on the preservation or establishment of 
small business concerns located in urban or rural areas with 
high proportions of unemployed or low-income individuals, or 
owned by low-income individuals: Provided, however, That no 
such loans shall be made, participated in, or guaranteed if the 
total of such Federal assistance to a single borrower 
outstanding at any one time would exceed $100,000. The 
Administration may defer payments on the principal of such 
loans for a grace period and use such other methods as it deems 
necessary and appropriate to assure the successful 
establishment and operation of such concern. The Administration 
may, in its discretion, as a condition of such financial 
assistance, require that the borrower take steps to improve his 
management skills by participating in a management training 
program approved by the Administration: Provided, however, That 
any management training program so approved must be of 
sufficient scope and duration to provide reasonable opportunity 
for the individuals served to develop entrepreneurial and 
managerial self-sufficiency.
  (2) The Administration shall encourage, as far as possible, 
the participation of the private business community in the 
program of assistance to such concerns, and shall seek to 
stimulate new private lending activities to such concerns 
through the use of the loan guarantees, participations in 
loans, and pooling arrangements authorized by this subsection.
  (3) To insure an equitable distribution between urban and 
rural areas for loans between $3,500 and $100,000 made under 
this subsection, the Administration is authorized to use the 
agencies and agreements and delegations developed under title 
III of the Economic Opportunity Act of 1964, as amended, as it 
shall determine necessary.
  (4) The Administration shall provide for the continuing 
evaluation of programs under this subsection, including full 
information on the location, income characteristics, and types 
of businesses and individuals assisted, and on new private 
lending activity stimulated, and the results of such evaluation 
together with recommendations shall be included in the report 
required by section 10(a) of this Act.
  (5) Loans made pursuant to this subsection (including 
immediate participation in and guarantees of such loans) shall 
have such terms and conditions as the Administration shall 
determine, subject to the following limitations--
          (A) there is reasonable assurance of repayment of the 
        loan;
          (B) the financial assistance is not otherwise 
        available on reasonable terms from private sources or 
        other Federal, State, or local programs;
          (C) the amount of the loan, together with other funds 
        available, is adequate to assure completion of the 
        project or achievement of the purposes for which the 
        loan is made;
          (D) the loan bears interest at a rate not less than 
        (i) a rate determined by the Secretary of the Treasury, 
        taking into consideration the average market yield on 
        outstanding Treasury obligations of comparable 
        maturity, plus (ii) such additional charge, if any, 
        toward covering other costs of the program as the 
        Administration may determine to be consistent with its 
        purposes: Provided, however, That the rate of interest 
        charged on loans made in redevelopment areas designated 
        under the Public Works and Economic Development Act of 
        1965 (42 U.S.C. 3108 et seq.) shall not exceed the rate 
        currently applicable to new loans made under section 
        201 of that Act (42 U.S.C. 3142); and
          (E) fees not in excess of amounts necessary to cover 
        administrative expenses and probable losses may be 
        required on loan guarantees.
  (6) The Administration shall take such steps as may be 
necessary to insure that, in any fiscal year, at least 50 per 
centum of the amounts loaned or guaranteed pursuant to this 
subsection are allotted to small business concerns located in 
urban areas identified by the Administration as having high 
concentrations of unemployed or low-income individuals or to 
small business concerns owned by low-income individuals. The 
Administration shall define the meaning of low income as it 
applies to owners of small business concerns eligible to be 
assisted under this subsection.
  (7) No financial assistance shall be extended pursuant to 
this subsection when the Administration determines that the 
assistance will be used in relocating establishments from one 
area to another if such relocation would result in an increase 
in unemployment in the area of original location.
  (j)(1) the Administration shall provide financial assistance 
to public or private organizations to pay all or part of the 
cost of projects designated to provide technical or management 
assistance to individuals or enterprises eligible for 
assistance under sections 7(i), 7(j)(10), and 8(a) of this Act, 
with special attention to small businesses located in areas of 
high concentration of unemployed or low-income individuals, to 
small businesses eligible to receive contracts pursuant to 
section 8(a) of this Act.
  (2) Financial assistance under this subsection may be 
provided for projects, including, but not limited to--
          (A) planning and research, including feasibility 
        studies and market research;
          (B) the identification and development of new 
        business opportunities;
          (C) the furnishing of centralized services with 
        regard to public services and Federal Government 
        programs including programs authorized under sections 
        7(i), (7)(j)(10), and 8(a) of this Act;
          (D) the establishment and strengthening of business 
        service agencies, including trade associations and 
        cooperative; and
          (E) the furnishing of business counseling, management 
        training, and legal and other related services, with 
        special emphasis on the development of management 
        training programs using the resources of the business 
        community, including the development of management 
        training opportunities in existing business, and with 
        emphasis in all cases upon providing management 
        training of sufficient scope and duration to develop 
        entrepreneurial and managerial self-sufficiency on the 
        part of the individuals served.
  (3) The Administration shall encourage the placement of 
subcontracts by businesses with small business concerns located 
in area of high concentration of unemployed or low-income 
individuals, with small businesses owned by low-income 
individuals, and with small businesses eligible to receive 
contracts pursuant to section 8(a) of this Act. The 
Administration may provide incentives and assistance to such 
businesses that will aid in the training and upgrading of 
potential subcontractors or other small business concerns 
eligible for assistance under section 7(i), 7(j), and 8(a), of 
this Act.
  (4) The Administration shall give preference to projects 
which promote the ownership, participation in ownership, or 
management of small businesses owned by low-income individuals 
and small businesses eligible to receive contracts pursuant to 
section 8(a) of this Act.
  (5) The financial assistance authorized for projects under 
this subsection includes assistance advanced by grant, 
agreement, or contract.
  (6) The Administration is authorized to make payments under 
grants and contracts entered into under this subsection in lump 
sum or installments, and in advance or by way of reimbursement, 
and in the case of grants, with necessary adjustments on 
account of overpayments or underpayments.
  (7) To the extent feasible, services under this subsection 
shall be provided in a location which is easily accessible to 
the individuals and small business concerns served.
  (9) The Administration shall take such steps as may be 
necessary and appropriate, in coordination and cooperation with 
the heads of other Federal departments and agencies, to insure 
that contracts, subcontracts, and deposits made by the Federal 
Government or with programs aided with Federal funds are placed 
in such way as to further the purposes of sections 7(i), 7(j), 
and 8(a) of this Act.
  (10) There is established with the Administration a small 
business and capital ownership development program (hereinafter 
referred to as the ``Program'') which shall provide assistance 
exclusively for small business concerns eligible to receive 
contracts pursuant to section 8(a) of this Act. The program, 
and all other services and activities authorized under section 
7(j) and 8(a) of this Act, shall be managed by the Associate 
Administrator for Minority Small Business and Capital Ownership 
Development under the supervision of, and responsible to, the 
Administrator.
          (A) The Program shall--
                  (i) assist small business concerns 
                participating in the Program (either through 
                public or private organizations) to develop and 
                maintain comprehensive business plans which set 
                forth the Program Participant's specific 
                business targets, objectives, and goals 
                developed and maintained in conformity with 
                subparagraph (D).
                  (ii) provide for such other nonfinancial 
                services as deemed necessary for the 
                establishment, preservation, and growth of 
                small business concerns participating in the 
                Program, including but not limited to (I) loan 
                packaging, (II) financing counseling, (III) 
                accounting and bookkeeping assistance, (IV) 
                marketing assistance, and (V) management 
                assistance;
                  (iii) assist small business concerns 
                participating in the Program to obtain equity 
                and debt financing;
                  (iv) establish regular performance monitoring 
                and reporting systems for small business 
                concerns participating in the Program to assure 
                compliance with their business plans;
                  (v) analyze and report the causes of success 
                and failure of small business concerns 
                participating in the Program; and
                  (vi) provide assistance necessary to help 
                small business concerns participating in the 
                Program to procure surety bonds, with such 
                assistance including, but not limited to, (I) 
                the preparation of application forms required 
                to receive a surety bond, (II) special 
                management and technical assistance designed to 
                meet the specific needs of small business 
                concerns participating in the Program and which 
                have received or are applying to receive a 
                surety bond, and (III) guarantee from the 
                Administration pursuant to title IV, part B of 
                the Small Business Investment Act of 1958.
          (B) Small business concerns eligible to receive 
        contracts pursuant to section 8(a) of this Act shall 
        participate in the Program.
          (C)(i) A small business concern participating in any 
        program or activity conducted under the authority of 
        this paragraph or eligible for the award of contracts 
        pursuant to section 8(a) on September 1, 1988, shall be 
        permitted continued participation and eligibility in 
        such program or activity for a period of time which is 
        the greater of--
                  (I) 9 years less the number of years since 
                the award of its first contract pursuant to 
                section 8(a); or
                  (II) its original fixed program participation 
                term (plus any extension thereof) assigned 
                prior to the effective date of this paragraph 
                plus eighteen months.
          (ii) Nothing contained in this subparagraph shall be 
        deemed to prevent the Administration from instituting a 
        termination or graduation pursuant to subparagraph (F) 
        or (H) for issues unrelated to the expiration of any 
        time period limitation.
          (D)(i) Promptly after certification under paragraph 
        (11) a Program Participant shall submit a business plan 
        (hereinafter referred to as the plan'') as described in 
        clause (ii) of this subparagraph for review by the 
        Business Opportunity Specialist assigned to assist such 
        Program Participant. The plan may be a revision of a 
        preliminary business plan submitted by the Program 
        Participant or required by the Administration as a part 
        of the application for certification under this section 
        and shall be designed to result in the Program 
        Participant eliminating the conditions or circumstances 
        upon which the Administration determined eligibility 
        pursuant to section 8(a)(6). Such plan, and subsequent 
        modifications submitted under clause (iii) of this 
        subparagraph, shall be approved by the business 
        opportunity specialist prior to the Program Participant 
        being eligible for award of a contract pursuant to 
        section 8(a).
                  (ii) The plans submitted under this 
                subparagraph shall include the following:
                          (I) An analysis of market potential, 
                        competitive environment, and other 
                        business analyses estimating the 
                        Program Participant's prospects for 
                        profitable operations during the term 
                        of program participation and after 
                        graduation.
                          (II) An analysis of the Program 
                        Participant's strengths and weaknesses 
                        with particular attention to correcting 
                        any financial, managerial, technical, 
                        or personnel conditions which are 
                        likely to impede the small business 
                        concern from receiving contracts other 
                        than those awarded under section 8(a).
                          (III) Specific targets, objectives, 
                        and goals, for the business development 
                        of the Program Participant during the 
                        next and succeeding years utilizing the 
                        results of the analyses conducted 
                        pursuant to subclauses (I) and (II).
                          (IV) A transition management plan 
                        outlining specific steps to assure 
                        profitable business operations after 
                        graduation (to be incorporated into the 
                        Program Participant's plan during the 
                        first year of the transitional stage of 
                        Program participation).
                          (V) Estimates of contract awards 
                        pursuant to section 8(a) and from other 
                        sources, which the Program Participant 
                        will require to meet the specific 
                        targets, objectives, and goals for the 
                        years covered by its plan. The 
                        estimates established shall be 
                        consistent with the provisions of 
                        subparagraph (I) and section 8(a).
                  (iii) Each Program Participant shall annually 
                review its currently approved plan with its 
                Business Opportunity Specialist and modify such 
                plan as may be appropriate. Any modified plan 
                shall be submitted to the Administration for 
                approval. The currently approved plan shall be 
                considered valid until such time as a modified 
                plan is approved by the Business Opportunity 
                Specialist. Annual reviews pertaining to years 
                in the transitional stage of program 
                participation shall require, as appropriate, a 
                written verification that such Program 
                Participant has complied with the requirements 
                of subparagraph (I) relating to attaining 
                business activity from sources other than 
                contracts awarded pursuant to section 8(a).
                  (iv) Each Program Participant shall annually 
                forecast its needs for contract awards under 
                section 8(a) for the next program year and the 
                succeeding program year during the review of 
                its business plan, conducted pursuant to clause 
                (iii). Such forecast shall be known as the 
                section 8(a) contract support level and shall 
                be included in the Program Participant's 
                business plan. Such forecast shall include--
                          (I) the aggregate dollar value of 
                        contract support to be sought on a 
                        noncompetitive basis under section 
                        8(a), reflecting compliance with the 
                        requirements of subparagraph (I) 
                        relating to attaining business activity 
                        from sources other than contracts 
                        awarded pursuant to section 8(a),
                          (II) the types of contract 
                        opportunities being sought, identified 
                        by Standard Industrial Classification 
                        (SIC) Code or otherwise,
                          (III) an estimate of the dollar value 
                        of contract support to be sought on a 
                        competitive basis, and
                          (IV) such other information as may be 
                        requested by the Business Opportunity 
                        Specialist to provide effective 
                        business development assistance to the 
                        Program Participant.
          (E) A small business concern participating in the 
        program conducted under the authority of this paragraph 
        and eligible for the award of contracts pursuant to 
        section 8(a) shall be denied all such assistance if 
        such concern--
                  (i) voluntarily elects not to continue 
                participation;
                  (ii) completes the period of Program 
                participation as prescribed by paragraph (15);
                  (iii) is terminated pursuant to a termination 
                proceeding conducted in accordance with section 
                8(a)(9); or
                  (iv) is graduated pursuant to a graduation 
                proceeding conducted in accordance with section 
                8(a)(9).
          (F) For the purposes of section and 8(a), the terms 
        ``terminated'' or ``termination'' means the total 
        denial or suspension of assistance under this paragraph 
        or under section 8(a) prior to the graduation of the 
        participating small business concern or prior to the 
        expiration of the maximum program participation in 
        term. An action for termination shall be based upon 
        good cause, including--
                  (i) the failure by such concern to maintain 
                its eligibility for Program participation;
                  (ii) the failure of the concern to engage in 
                business practices that will promote its 
                competitiveness within a reasonable period of 
                time as evidenced by, among other indicators, a 
                pattern of unjustified delinquent performance 
                or terminations for default with respect to 
                contracts awarded under the authority of 
                section 8(a);
                  (iii) a demonstrated pattern of failing to 
                make required submissions or responses to the 
                Administration in a timely manner;
                  (iv) the willful violation of any rule or 
                regulation of the Administration pertaining to 
                material issues;
                  (v) the debarment of the concern or its 
                disadvantaged owners by any agency pursuant to 
                subpart 9.4 of title 48, Code of Federal 
                Regulations (or any successor regulation); or
                  (vi) the conviction of the disadvantaged 
                owner or an officer of the concern for any 
                offense indicating a lack of business integrity 
                including any conviction for embezzlement, 
                theft, forgery, bribery, falsification or 
                violation of section 16. For purposes of this 
                clause, no termination action shall be taken 
                with respect to a disadvantaged owner solely 
                because of the conviction of an officer of the 
                concern (who is other than a disadvantaged 
                owner) unless such owner conspired with, 
                abetted, or otherwise knowingly acquiesced in 
                the activity or omission that was the basis of 
                such officer's conviction.
          (G) The Director of the Division may initiate a 
        termination proceeding by recommending such action to 
        the Associate Administrator for Minority Small Business 
        and Capital Ownership Development. Whenever the 
        Associate Administrator, or a designee of such officer, 
        determines such termination is appropriate, within 15 
        days after making such a determination the Program 
        Participant shall be provided a written notice of 
        intent to terminate, specifying the reasons for such 
        action. No Program Participant shall be terminated from 
        the Program pursuant to subparagraph (F) without first 
        being afforded an opportunity for a hearing in 
        accordance with section 8(a)(9).
          (H) For the purposes of sections 7(j) and 8(a) the 
        term ``graduated'' or ``graduation'' means that the 
        Program Participant is recognized as successfully 
        completing the program by substantially achieving the 
        targets, objectives, and goals contained in the 
        concern's business plan thereby demonstrating its 
        ability to compete in the marketplace without 
        assistance under this section or section 8(a).
          (I)(i) During the developmental stage of its 
        participation in the Program, a Program Participant 
        shall take all reasonable efforts within its control to 
        attain the targets contained in its business plan for 
        contracts awarded other than pursuant to section 8(a) 
        (hereinafter referred to as ``business activity 
        targets.''). Such efforts shall be made a part of the 
        business plan and shall be sufficient in scope and 
        duration to satisfy the Administration that the Program 
        Participant will engage a reasonable marketing strategy 
        that will maximize its potential to achieve its 
        business activity targets.
          (ii) During the transitional stage of the Program a 
        Program Participant shall be subject to regulations 
        regarding business activity targets that are 
        promulgated by the Administration pursuant to clause 
        (iii);
          (iii) The regulations referred to in clause (ii) 
        shall:
                  (I) establish business activity targets 
                applicable to Program Participants during the 
                fifth year and each succeeding year of Program 
                Participation; such targets, for such period of 
                time, shall reflect a reasonably consistent 
                increase in contracts awarded other than 
                pursuant to section 8(a), expressed as a 
                percentage of total sales; when promulgating 
                business activity targets the Administration 
                may establish modified targets for Program 
                Participants that have participated in the 
                Program for a period of longer than four years 
                on the effective date of this subparagraph;
                  (II) require a Program Participant to attain 
                its business activity targets;
                  (III) provide that, before the receipt of any 
                contract to be awarded pursuant to section 
                8(a), the Program Participant (if it is in the 
                transitional stage) must certify that it has 
                complied with the regulations promulgated 
                pursuant to subclause (II), or that it is in 
                compliance with such remedial measures as may 
                have been ordered pursuant to regulations 
                issued under subclause (V);
                  (IV) require the Administration to review 
                each Program Participant's performance 
                regarding attainment of business activity 
                targets during periodic reviews of such 
                Participant's business plan; and
                  (V) authorize the Administration to take 
                appropriate remedial measures with respect to a 
                Program Participant that has failed to attain a 
                required business activity target for the 
                purpose of reducing such Participant's 
                dependence on contracts awarded pursuant to 
                section 8(a); such remedial actions may 
                include, but are not limited to assisting the 
                Program Participant to expand the dollar volume 
                of its competitive business activity or 
                limiting the dollar volume of contracts awarded 
                to the Program Participant pursuant to section 
                8(a); except for actions that would constitute 
                a termination, remedial measures taken pursuant 
                to this subclause shall not be reviewable 
                pursuant to section 8(a)(9).
          (J)(i) The Administration shall conduct an evaluation 
        of a Program Participant's eligibility for continued 
        participation in the Program whenever it receives 
        specific and credible information alleging that such 
        Program Participant no longer meets the requirements 
        for Program eligibility. Upon making a finding that a 
        Program Participant is no longer eligible, the 
        Administration shall initiate a termination proceeding 
        in accordance with subparagraph (F). A Program 
        Participant's eligibility for award of any contract 
        under the authority of section 8(a) may be suspended 
        pursuant to subpart 9.4 of title 48, Code of Federal 
        Regulations (or any successor regulation).
          (ii)(I) Except as authorized by subclauses (II) or 
        (III), no award shall be made pursuant to section 8(a) 
        to a concern other than a small business concern.
          (II) In determining the size of a small business 
        concern owned by a socially and economically 
        disadvantaged Indian tribe (or a wholly owned business 
        entity of such tribe), each firm's size shall be 
        independently determined without regard to its 
        affiliation with the tribe, any entity of the tribal 
        government, or any other business enterprise owned by 
        the tribe, unless the Administrator determines that one 
        or more such tribally owned business concerns have 
        obtained, or are likely to obtain, a substantial unfair 
        competitive advantage within an industry category.
          (III) Any joint venture established under the 
        authority of section 602(b) of Public Law 100-656, the 
        ``Business Opportunity Development Reform Act of 
        1988'', shall be eligible for award of a contract 
        pursuant to section 8(a).
  (11)(A) The Associate Administrator for Minority Small 
Business and Capital Ownership Development shall be responsible 
for coordinating and formulating policies relating to Federal 
assistance to small business concerns eligible for assistance 
under section 7(i) of this Act and small business concerns 
eligible to receive contracts pursuant to section 8(a) of this 
Act.
          (B)(i) Except as provided in clause (iii), no 
        individual who was determined pursuant to section 8(a) 
        to be socially and economically disadvantaged before 
        the effective date of this subparagraph shall be 
        permitted to assert such disadvantage with respect to 
        any other concern making application for certification 
        after such effective date.
                  (ii) Except as provided in clause (iii), any 
                individual upon whom eligibility is based 
                pursuant to section 8(a)(4) shall be permitted 
                to assert such eligibility for only one small 
                business concern.
                  (iii) A socially and economically 
                disadvantaged Indian tribe may own more than 
                one small business concern eligible for 
                assistance pursuant to section 7(j)(10) and 
                section 8(a) if--
                          (I) the Indian tribe does not own 
                        another firm in the same industry which 
                        has been determined to be eligible to 
                        receive contracts under this program, 
                        and
                          (II) the individuals responsible for 
                        the management and daily operations of 
                        the concern do not manage more than two 
                        Program Participants.
  (C) No concern, previously eligible for the award of 
contracts pursuant to section 8(a), shall be subsequently 
recertified for program participation if its prior 
participation in the program was concluded for any of the 
reasons described in paragraph (10)(E).
  (D) A concern eligible for the award of contracts pursuant to 
this subsection shall remain eligible for such contracts if 
there is a transfer of ownership and control (as defined 
pursuant to section 8(a)(4)) to individuals who are determined 
to be socially and economically disadvantaged pursuant to 
section 8(a). In the event of such a transfer, the concern, if 
not terminated or graduated, shall be eligible for a period of 
continued participation in the program not to exceed the time 
limitations prescribed in paragraph (15).
  (E) There is established a Division of Program Certification 
and Eligibility (hereinafter referred to in this paragraph as 
the Division'') that shall be made part of the Office of 
Minority Small Business and Capital Ownership Development. The 
Division shall be headed by a Director who shall report 
directly to the Associate Administrator for Minority Small 
Business and Capital Ownership Development. The Division shall 
establish field offices within such regional offices of the 
Administration as may be necessary to perform efficiently its 
functions and responsibilities.
  (F) Subject to the provisions of section 8(a)(9), the 
functions and responsibility of the Division are to--
          (i) receive, review and evaluate applications for 
        certification pursuant to paragraphs (4), (5), (6) and 
        (7) of section 8(a);
          (ii) advise each program applicant within 15 days 
        after the receipt of an application as to whether such 
        application is complete and suitable for evaluation 
        and, if not, what matters must be rectified;
          (iii) render recommendations on such applications to 
        the Associate Administrator for Minority Small Business 
        and Capital Ownership Development;
          (iv) review and evaluate financial statements and 
        other submissions from concerns participating in the 
        program established by paragraph (10) to ascertain 
        continued eligibility to receive subcontracts pursuant 
        to section 8(a);
          (v) make a request for the initiation of termination 
        or graduation proceedings, as appropriate, to the 
        Associate Administrator for Minority Small Business and 
        Capital Ownership Development;
          (vi) make recommendations to the Associate 
        Administrator for Minority Small Business and Capital 
        Ownership Development concerning protests from 
        applicants that have been denied program admission;
          (vii) decide protests regarding the status of a 
        concern as a disadvantaged concern for purposes of any 
        program or activity conducted under the authority of 
        subsection (d) of section 8, or any other provision of 
        Federal law that references such subsection for a 
        definition of program eligibility; and
          (viii) implement such policy directives as may be 
        issued by the Associate Administrator for Minority 
        Small Business and Capital Ownership Development 
        pursuant to subparagraph (I) regarding, among other 
        things, the geographic distribution of concerns to be 
        admitted to the program and the industrial make-up of 
        such concerns.
  (G) An applicant shall not be denied admission into the 
program established by paragraph (10) due solely to a 
determination by the Division that specific contract 
opportunities are unavailable to assist in the development of 
such concern unless--
          (i) the Government has not previously procured and is 
        unlikely to procure the types of products or services 
        offered by the concern; or
          (ii) the purchases of such products or services by 
        the Federal Government will not be in quantities 
        sufficient to support the developmental needs of the 
        applicant and other Program Participants providing the 
        same or similar items or services.
          (H) Not later than 90 days after receipt of a 
        completed application for Program certification, the 
        Associate Administrator for Minority Small Business and 
        Capital Ownership Development shall certify a small 
        business concern as a Program Participant or shall deny 
        such application.
  (I) Thirty days before the conclusion of each fiscal year, 
the Director of the Division shall review all concerns that 
have been admitted into the Program during the preceding 12-
month period. The review shall ascertain the number of 
entrants, their geographic distribution and industrial 
classification. The Director shall also estimate the expected 
growth of the Program during the next fiscal year and the 
number of additional Business Opportunity Specialists, if any, 
that will be needed to meet the anticipated demand for the 
Program. The findings and conclusions of the Director shall be 
reported to the Associate Administrator for Minority Small 
Business and Capital Ownership Development by September 30 of 
each year. Based on such report and such additional data as may 
be relevant, the Associate Administrator shall, by October 31 
of each year, issue policy and program directives applicable to 
such fiscal year that--
          (i) establish priorities for the solicitation of 
        program applications from underrepresented regions and 
        industry categories;
          (ii) assign staffing levels and allocate other 
        program resources as necessary to meet program needs; 
        and
          (iii) establish priorities in the processing and 
        admission of new Program Participants as may be 
        necessary to achieve an equitable geographic 
        distribution of concerns and a distribution of concerns 
        across all industry categories in proportions needed to 
        increase significantly contract awards to small 
        business concerns owned and controlled by socially and 
        economically disadvantaged individuals. When 
        considering such increase the Administration shall give 
        due consideration to those industrial categories where 
        Federal purchases have been substantial but where the 
        participation rate of such concerns has been limited.
  (12)(A) The Administration shall segment the Capital 
Ownership Development Program into two stages: a developmental 
stage; and a transitional stage.
  (B) The developmental stage of program participation shall be 
designed to assist the concern in its effort to overcome its 
economic disadvantage by providing such assistance as may be 
necessary and appropriate to access its markets and to 
strengthen its financial and managerial skills.
  (C) The transitional stage of program participation shall be 
designed to overcome, insofar as practicable, the remaining 
elements of economic disadvantage and to prepare such concern 
for graduation from the program.
  (13) A Program Participant, if otherwise eligible, shall be 
qualified to receive the following assistance during the stages 
of program participation specified in paragraph 12:
          (A) Contract support pursuant to section 8(a).
          (B) Financial assistance pursuant to section 
        7(a)(20).
          (C) A maximum of two exemptions from the requirements 
        of section 1(a) of the Act entitled ``An Act providing 
        conditions for the purchase of supplies and the making 
        of contracts by the United States, and for other 
        purposes'', approved June 30, 1936 (49 Stat. 2036), 
        which exemptions shall apply only to contracts awarded 
        pursuant to section (8)(a) and shall only be used to 
        allow for contingent agreements by a small business 
        concern to acquire the machinery, equipment, 
        facilities, or labor needed to perform such contracts. 
        No exemption shall be made pursuant to this 
        subparagraph if the contract to which it pertains has 
        an anticipated value in excess of $10,000,000. This 
        subparagraph shall cease to be effective on October 1, 
        1992.
          (D) A maximum of five exemptions from the 
        requirements of the Act entitled ``An Act requiring 
        contracts for the construction, alteration and repair 
        of any public building or public work of the United 
        States to be accompanied by a performance bond 
        protecting the United States and by an additional bond 
        for the protection of persons furnishing material and 
        labor for the construction, alteration, or repair of 
        said public buildings or public works'', approved 
        August 24, 1935 (49 Stat. 793), which exemptions shall 
        apply only to contracts awarded pursuant to section 
        8(a), except that, such exemptions may be granted under 
        this subparagraph only if--
                  (i) the Administration finds that such 
                concern is unable to obtain the requisite bond 
                or bonds from a surety and that no surety is 
                willing to issue a bond subject to the 
                guarantee provision of title IV of the Small 
                Business Investment Act of 1958 (15 U.S.C. 692 
                et seq.);
                  (ii) the Administration and the agency 
                providing the contracting opportunity have 
                provided for the protection of persons 
                furnishing materials or labor to the Program 
                Participant by arranging for the direct 
                disbursement of funds due to such persons by 
                the procuring agency or through any bank the 
                deposits of which are insured by the Federal 
                Deposit Insurance Corporation; and
                  (iii) the contract to which it pertains does 
                not exceed $3,000,000 in amount. This 
                subparagraph shall cease to be effective on 
                October 1, 1994.
          (E) Financial assistance whereby the Administration 
        may purchase in whole or in part, and on behalf of such 
        concerns, skills training or upgrading for employees or 
        potential employees of such concerns. Such assistance 
        may be made without regard to section 18(a). Assistance 
        may be made by direct payment to the training provider 
        or by reimbursing the Program Participant or the 
        Participant's employee, if such reimbursement is found 
        to be reasonable and appropriate. For purposes of this 
        subparagraph the term ``training provider'' shall mean 
        an institution of higher education, a community or 
        vocational college, or an institution eligible to 
        provide skills training or upgrading under title I of 
        the Workforce Innovation and Opportunity Act. The 
        Administration shall, in consultation with the 
        Secretary of Labor, promulgate rules and regulations to 
        implement this subparagraph that establish acceptable 
        training and upgrading performance standards and 
        provide for such monitoring or audit requirements as 
        may be necessary to ensure the integrity of the 
        training effort. No financial assistance shall be 
        granted under the subparagraph unless the Administrator 
        determines that--
                  (i) such concern has documented that it has 
                first explored the use of existing cost-free or 
                cost-subsidized training programs offered by 
                public and private sector agencies working with 
                programs of employment and training and 
                economic development;
                  (ii) no more than five employees or potential 
                employees of such concern are recipients of any 
                benefits under this subparagraph at any one 
                time;
                  (iii) no more than $2,500 shall be made 
                available for any one employee or potential 
                employee;
                  (iv) the length of training or upgrading 
                financed by this subparagraph shall be no less 
                than one month nor more than six months;
                  (v) such concern has given adequate assurance 
                it will employ the trainee or upgraded employee 
                for at least six months after the training or 
                upgrading financed by this subparagraph has 
                been completed and each trainee or upgraded 
                employee has provided a similar assurance to 
                remain within the employ of such concern for 
                such period; if such concern, trainee, or 
                upgraded employee breaches this agreement, the 
                Administration shall be entitled to and shall 
                make diligent efforts to obtain from the 
                violating party the repayment of all funds 
                expended on behalf of the violating party, such 
                repayment shall be made to the Administration 
                together with such interest and costs of 
                collection as may be reasonable; the violating 
                party shall be barred from receiving any 
                further assistance under this subparagraph;
                  (vi) the training to be financed may take 
                place either at such concern's facilities or at 
                those of the training provider; and
                  (vii) such concern will maintain such records 
                as the Administration deems appropriate to 
                ensure that the provisions of this paragraph 
                and any other applicable law have not been 
                violated.
          (F)(i) The transfer of technology or surplus property 
        owned by the United States to such a concern. 
        Activities designed to effect such transfer shall be 
        developed in cooperation with the heads of Federal 
        agencies and shall include the transfer by grant, 
        license, or sale of such technology or property to such 
        a concern. Such property may be transferred to Program 
        Participants on a priority basis. Technology or 
        property transferred under this subparagraph shall be 
        used by the concern during the normal conduct of its 
        business operation and shall not be sold or transferred 
        to any other party (other than the Government) during 
        such concern's term of participation in the Program and 
        for one year thereafter.
                  (ii)(I) In this clause--
                          (aa) the term ``covered period'' 
                        means the 2-year period beginning on 
                        the date on which the President 
                        declared the applicable major disaster; 
                        and
                          (bb) the term ``disaster area'' means 
                        the area for which the President has 
                        declared a major disaster, during the 
                        covered period.
                  (II) The Administrator may transfer 
                technology or surplus property under clause (i) 
                on a priority basis to a small business concern 
                located in a disaster area if--
                          (aa) the small business concern meets 
                        the requirements for such a transfer, 
                        without regard to whether the small 
                        business concern is a Program 
                        Participant; and
                          (bb) for a small business concern 
                        that is a Program Participant, on and 
                        after the date on which the President 
                        declared the applicable major disaster, 
                        the small business concern has not 
                        received property under this 
                        subparagraph on the basis of the status 
                        of the small business concern as a 
                        Program Participant.
                  (III) For any transfer of property under this 
                clause to a small business concern, the terms 
                and conditions shall be the same as a transfer 
                to a Program Participant, except that the small 
                business concern shall agree not to sell or 
                transfer the property to any party other than 
                the Federal Government during the covered 
                period.
                  (IV) A small business concern that receives a 
                transfer of property under this clause may not 
                receive a transfer of property under clause (i) 
                during the covered period.
                  (V) If a small business concern sells or 
                transfers property in violation of the 
                agreement described in subclause (III), the 
                Administrator may initiate proceedings to 
                prohibit the small business concern from 
                receiving a transfer of property under this 
                clause or clause (i), in addition to any other 
                remedy available to the Administrator.
          (iii)(I) In this clause, the term ``covered 
        period''means--
                          (aa) in the case of a Puerto Rico 
                        business, the period beginning on 
                        August 13, 2018, and ending on the date 
                        on which the Oversight Board 
                        established under section 2121 of title 
                        48 terminates; and
                          (bb) in the case of a covered 
                        territory business, the period 
                        beginning on the date of the enactment 
                        of this item and ending on the date 
                        that is 4 years after such date of 
                        enactment.
          (II) The Administrator may transfer technology or 
        surplus property under clause (i) to a Puerto Rico 
        business or a covered territory business if either such 
        business meets the requirements for such a transfer, 
        without regard to whether either such business is a 
        Program Participant.
          (G) Training assistance whereby the Administration 
        shall conduct training sessions to assist individuals 
        and enterprises eligible to receive contracts under 
        section 8(a) in the development of business principles 
        and strategies to enhance their ability to successfully 
        compete for contracts in the marketplace.
          (H) Joint ventures, leader-follower arrangements, and 
        teaming agreements between the Program Participant and 
        other Program Participants and other business concerns 
        with respect to contracting opportunities for the 
        research, development, full-scale engineering or 
        production of major systems. Such activities shall be 
        undertaken on the basis of programs developed by the 
        agency responsible for the procurement of the major 
        system, with the assistance of the Administration.
          (I) Transitional management business planning 
        training and technical assistance.
          (J) Program Participants in the developmental stage 
        of Program participation shall be eligible for the 
        assistance provided by subparagraphs (A), (B), (C), 
        (D), (E), (F), and (G).
  (14) Program Participants in the transitional stage of 
Program participation shall be eligible for the assistance 
provided by subparagraphs (A), (B), (F), (G), (H), and (I) of 
paragraph (13).
  (15) Subject to the provisions of paragraph (10)(C), a small 
business concern may receive developmental assistance under the 
Program and contracts under section 8(a) for a total period of 
not longer than nine years, measured from the date of its 
certification under the authority of such section, of which--
          (A) no more than four years may be spent in the 
        developmental stage of Program Participation; and
          (B) no more than five years may be spent in the 
        transitional stage of Program Participation.
  (16)(A) The Administrator shall develop and implement a 
process for the systematic collection of data on the operations 
of the Program established pursuant to paragraph (10).
  (B) Not later than April 30 of each year, the Administrator 
shall submit a report to the Congress on the Program that shall 
include the following:
          (i) The average personal net worth of individuals who 
        own and control concerns that were initially certified 
        for participation in the Program during the immediately 
        preceding fiscal year. The Administrator shall also 
        indicate the dollar distribution of net worths, at 
        $50,000 increments, of all such individuals found to be 
        socially and economically disadvantaged. For the first 
        report required pursuant to this paragraph the 
        Administrator shall also provide the data specified in 
        the preceding sentence for all eligible individuals in 
        the Program as of the effective date of this paragraph.
          (ii) A description and estimate of the benefits and 
        costs that have accrued to the economy and the 
        Government in the immediately preceding fiscal year due 
        to the operations of those business concerns that were 
        performing contracts awarded pursuant to section 8(a).
          (iii) A compilation and evaluation of those business 
        concerns that have exited the Program during the 
        immediately preceding three fiscal years. Such 
        compilation and evaluation shall detail the number of 
        concerns actively engaged in business operations, those 
        that have ceased or substantially curtailed such 
        operations, including the reasons for such actions, and 
        those concerns that have been acquired by other firms 
        or organizations owned and controlled by other than 
        socially and economically disadvantaged individuals. 
        For those businesses that have continued operations 
        after they exited from the Program, the Administrator 
        shall also separately detail the benefits and costs 
        that have accrued to the economy during the immediately 
        preceding fiscal year due to the operations of such 
        concerns.
          (iv) A listing of all participants in the Program 
        during the preceding fiscal year identifying, by State 
        and by Region, for each firm: the name of the concern, 
        the race or ethnicity, and gender of the disadvantaged 
        owners, the dollar value of all contracts received in 
        the preceding year, the dollar amount of advance 
        payments received by each concern pursuant to contracts 
        awarded under section 8(a), and a description including 
        (if appropriate) an estimate of the dollar value of all 
        benefits received pursuant to paragraphs (13) and (14) 
        and section 7(a)(20) during such year.
          (v) The total dollar value of contracts and options 
        awarded during the preceding fiscal year pursuant to 
        section 8(a) and such amount expressed as a percentage 
        of total sales of (I) all firms participating in the 
        Program during such year; and (II) of firms in each of 
        the nine years of program participation.
          (vi) A description of such additional resources or 
        program authorities as may be required to provide the 
        types of services needed over the next two-year period 
        to service the expected portfolio of firms certified 
        pursuant to section 8(a).
          (vii) The total dollar value of contracts and options 
        awarded pursuant to section 8(a), at such dollar 
        increments as the Administrator deems appropriate, for 
        each four digit standard industrial classification code 
        under which such contracts and options were classified.
  (C) The first report required by subparagraph (B) shall 
pertain to fiscal year 1990.
  (k) In carrying out its functions under subsections 7(i), 
7(j), and 8(a) of this Act, the Administration is authorized--
          (1) to utilize, with their consent, the services and 
        facilities of Federal agencies without reimbursement, 
        and, with the consent of any State or political 
        subdivision of a State, accept and utilize the services 
        and facilities of such State or subdivision without 
        reimbursement;
          (2) to accept, in the name of the Administration, and 
        employ or dispose of in furtherance of the purposes of 
        this Act, any money or property, real, personal, or 
        mixed, tangible, or intangible, received by gift, 
        device, bequest, or otherwise;
          (3) to accept voluntary and uncompensated services, 
        notwithstanding the provisions of section 3679(b) of 
        the Revised Statutes (31 U.S.C. 655(b)); and
          (4) to employ experts and consultants or 
        organizations thereof as authorized by section 15 of 
        the Administrative Expenses Act of 1946 (5 U.S.C. 55a), 
        except that no individual may be employed under the 
        authority of this subsection for more than one hundred 
        days in any fiscal year; to compensate individuals so 
        employed at rates not in excess of the daily equivalent 
        of the highest rate payable under section 5332 of title 
        5, United States Code, including traveltime; and to 
        allow them, while away from their homes or regular 
        places of business, travel expenses (including per diem 
        in lieu of subsistence) a authorized by section 5 of 
        such Act (5 U.S.C. 73b-2) for persons in the Government 
        service employed intermittently, while so employed: 
        Provided, however, That contracts for such employment 
        may be renewed annually.
  (l) Small Business Intermediary Lending Pilot Program.--
          (1) Definitions.--In this subsection--
                  (A) the term ``eligible intermediary''--
                          (i) means a private, nonprofit entity 
                        that--
                                  (I) seeks or has been awarded 
                                a loan from the Administrator 
                                to make loans to small business 
                                concerns under this subsection; 
                                and
                                  (II) has not less than 1 year 
                                of experience making loans to 
                                startup, newly established, or 
                                growing small business 
                                concerns; and
                          (ii) includes--
                                  (I) a private, nonprofit 
                                community development 
                                corporation;
                                  (II) a consortium of private, 
                                nonprofit organizations or 
                                nonprofit community development 
                                corporations; and
                                  (III) an agency of or 
                                nonprofit entity established by 
                                a Native American Tribal 
                                Government; and
                  (B) the term ``Program'' means the small 
                business intermediary lending pilot program 
                established under paragraph (2).
          (2) Establishment.--There is established a 3-year 
        small business intermediary lending pilot program, 
        under which the Administrator may make direct loans to 
        eligible intermediaries, for the purpose of making 
        loans to startup, newly established, and growing small 
        business concerns.
          (3) Purposes.--The purposes of the Program are--
                  (A) to assist small business concerns in 
                areas suffering from a lack of credit due to 
                poor economic conditions or changes in the 
                financial market; and
                  (B) to establish a loan program under which 
                the Administrator may provide loans to eligible 
                intermediaries to enable the eligible 
                intermediaries to provide loans to startup, 
                newly established, and growing small business 
                concerns for working capital, real estate, or 
                the acquisition of materials, supplies, or 
                equipment.
          (4) Loans to eligible intermediaries.--
                  (A) Application.--Each eligible intermediary 
                desiring a loan under this subsection shall 
                submit an application to the Administrator that 
                describes--
                          (i) the type of small business 
                        concerns to be assisted;
                          (ii) the size and range of loans to 
                        be made;
                          (iii) the interest rate and terms of 
                        loans to be made;
                          (iv) the geographic area to be served 
                        and the economic, poverty, and 
                        unemployment characteristics of the 
                        area;
                          (v) the status of small business 
                        concerns in the area to be served and 
                        an analysis of the availability of 
                        credit; and
                          (vi) the qualifications of the 
                        applicant to carry out this subsection.
                  (B) Loan limits.--No loan may be made to an 
                eligible intermediary under this subsection if 
                the total amount outstanding and committed to 
                the eligible intermediary by the Administrator 
                would, as a result of such loan, exceed 
                $1,000,000 during the participation of the 
                eligible intermediary in the Program.
                  (C) Loan duration.--Loans made by the 
                Administrator under this subsection shall be 
                for a term of 20 years.
                  (D) Applicable interest rates.--Loans made by 
                the Administrator to an eligible intermediary 
                under the Program shall bear an annual interest 
                rate equal to 1.00 percent.
                  (E) Fees; collateral.--The Administrator may 
                not charge any fees or require collateral with 
                respect to any loan made to an eligible 
                intermediary under this subsection.
                  (F) Delayed payments.--The Administrator 
                shall not require the repayment of principal or 
                interest on a loan made to an eligible 
                intermediary under the Program during the 2-
                year period beginning on the date of the 
                initial disbursement of funds under that loan.
                  (G) Maximum participants and amounts.--During 
                each of fiscal years 2011, 2012, and 2013, the 
                Administrator may make loans under the 
                Program--
                          (i) to not more than 20 eligible 
                        intermediaries; and
                          (ii) in a total amount of not more 
                        than $20,000,000.
          (5) Loans to small business concerns.--
                  (A) In general.--The Administrator, through 
                an eligible intermediary, shall make loans to 
                startup, newly established, and growing small 
                business concerns for working capital, real 
                estate, and the acquisition of materials, 
                supplies, furniture, fixtures, and equipment.
                  (B) Maximum loan.--An eligible intermediary 
                may not make a loan under this subsection of 
                more than $200,000 to any 1 small business 
                concern.
                  (C) Applicable interest rates.--A loan made 
                by an eligible intermediary to a small business 
                concern under this subsection, may have a fixed 
                or a variable interest rate, and shall bear an 
                interest rate specified by the eligible 
                intermediary in the application of the eligible 
                intermediary for a loan under this subsection.
                  (D) Review restrictions.--The Administrator 
                may not review individual loans made by an 
                eligible intermediary to a small business 
                concern before approval of the loan by the 
                eligible intermediary.
          (6) Termination.--The authority of the Administrator 
        to make loans under the Program shall terminate 3 years 
        after the date of enactment of the Small Business Job 
        Creation and Access to Capital Act of 2010.
  (m) Microloan Program.--
          (1)(A) Purposes.--The purposes of the Microloan 
        Program are--
                  (i) to assist women, low-income, veteran 
                (within the meaning of such term under section 
                3(q)), and minority entrepreneurs and business 
                owners and other individuals possessing the 
                capability to operate successful business 
                concerns;
                  (ii) to assist small business concerns in 
                those areas suffering from a lack of credit due 
                to economic downturns;
                  (iii) to establish a microloan program to be 
                administered by the Small Business 
                Administration--
                          (I) to make loans to eligible 
                        intermediaries to enable such 
                        intermediaries to provide small-scale 
                        loans, particularly loans in amounts 
                        averaging not more than $10,000, to 
                        startup, newly established, or growing 
                        small business concerns for working 
                        capital or the acquisition of 
                        materials, supplies, or equipment;
                          (II) to make grants to eligible 
                        intermediaries that, together with non-
                        Federal matching funds, will enable 
                        such intermediaries to provide 
                        intensive marketing, management, and 
                        technical assistance to microloan 
                        borrowers;
                          (III) to make grants to eligible 
                        nonprofit entities that, together with 
                        non-Federal matching funds, will enable 
                        such entities to provide intensive 
                        marketing, management, and technical 
                        assistance to assist low-income 
                        entrepreneurs and other low-income 
                        individuals obtain private sector 
                        financing for their businesses, with or 
                        without loan guarantees; and
                          (IV) to report to the Committees on 
                        Small Business of the Senate and the 
                        House of Representatives on the 
                        effectiveness of the microloan program 
                        and the advisability and feasibility of 
                        implementing such a program nationwide; 
                        and
                  (iv) to establish a welfare-to-work microloan 
                initiative, which shall be administered by the 
                Administration, in order to test the 
                feasibility of supplementing the technical 
                assistance grants provided under clauses (ii) 
                and (iii) of subparagraph (B) to individuals 
                who are receiving assistance under the State 
                program funded under part A of title IV of the 
                Social Security Act (42 U.S.C. 601 et seq.), or 
                under any comparable State funded means tested 
                program of assistance for low-income 
                individuals, in order to adequately assist 
                those individuals in--
                          (I) establishing small businesses; 
                        and
                          (II) eliminating their dependence on 
                        that assistance.
          (B) Establishment.--There is established a microloan 
        program, under which the Administration may--
                  (i) make direct loans to eligible 
                intermediaries, as provided under paragraph 
                (3), for the purpose of making short-term, 
                fixed interest rate microloans to startup, 
                newly established, and growing small business 
                concerns under paragraph (6);
                  (ii) in conjunction with such loans and 
                subject to the requirements of paragraph (4), 
                make grants to such intermediaries for the 
                purpose of providing intensive marketing, 
                management, and technical assistance to small 
                business concerns that are borrowers under this 
                subsection; and
                  (iii) subject to the requirements of 
                paragraph (5), make grants to nonprofit 
                entities for the purpose of providing 
                marketing, management, and technical assistance 
                to low-income individuals seeking to start or 
                enlarge their own businesses, if such 
                assistance includes working with the grant 
                recipient to secure loans in amounts not to 
                exceed $50,000 from private sector lending 
                institutions, with or without a loan guarantee 
                from the nonprofit entity.
          (2) Eligibility for participation.--An intermediary 
        shall be eligible to receive loans and grants under 
        subparagraphs (B)(i) and (B)(ii) of paragraph (1) if 
        it--
                  (A) meets the definition in paragraph (10); 
                and
                  (B) has at least 1 year of experience making 
                microloans to startup, newly established, or 
                growing small business concerns and providing, 
                as an integral part of its microloan program, 
                intensive marketing, management, and technical 
                assistance to its borrowers.
          (3) Loans to intermediaries.--
                  (A) Intermediary applications.--(i) In 
                general.--As part of its application for a 
                loan, each intermediary shall submit a 
                description to the Administration of--
                          (I) the type of businesses to be 
                        assisted;
                          (II) the size and range of loans to 
                        be made;
                          (III) the geographic area to be 
                        served and its economic, proverty, and 
                        unemployment characteristics;
                          (IV) the status of small business 
                        concerns in the area to be served and 
                        an analysis of their credit and 
                        technical assistance needs;
                          (V) any marketing, management, and 
                        technical assistance to be provided in 
                        connection with a loan made under this 
                        subsection;
                          (VI) the local economic credit 
                        markets, including the costs associated 
                        with obtaining credit locally;
                          (VII) the qualifications of the 
                        applicant to carry out the purpose of 
                        this subsection; and
                          (VIII) any plan to involve other 
                        technical assistance providers (such as 
                        counselors from the Service Corps of 
                        Retired Executives or small business 
                        development centers) or private sector 
                        lenders in assisting selected business 
                        concerns.
                  (ii) Selection of intermediaries.--In 
                selecting intermediaries to participate in the 
                program established under this subsection, the 
                Administration shall give priority to those 
                applicants that provide loans in amounts 
                averaging not more than $10,000.
                  (B) Intermediary contribution.--As a 
                condition of any loan made to an intermediary 
                under subparagraph (B)(i) of paragraph (1), the 
                Administrator shall require the intermediary to 
                contribute not less than 15 percent of the loan 
                amount in cash from non-Federal sources.
                  (C) Loan limits.--Notwithstanding subsection 
                (a)(3), no loan shall be made under this 
                subsection if the total amount outstanding and 
                committed to one intermediary (excluding 
                outstanding grants) from the business loan and 
                investment fund established by this Act would, 
                as a result of such loan, exceed $750,000 in 
                the first year of such intermediary's 
                participation in the program, $7,000,000 (in 
                the aggregate) in the remaining years of the 
                intermediary's participation in the program, 
                and $3,000,000 in any of those remaining years.
                  (D)(i) In general.--The Administrator shall, 
                by regulation, require each intermediary to 
                establish a loan loss reserve fund, and to 
                maintain such reserve fund until all 
                obligations owed to the Administration under 
                this subsection are repaid.
                  (ii) Level of loan loss reserve fund.--
                          (I) In general.--Subject to subclause 
                        (III), the Administrator shall require 
                        the loan loss reserve fund of an 
                        intermediary to be maintained at a 
                        level equal to 15 percent of the 
                        outstanding balance of the notes 
                        receivable owed to the intermediary.
                          (II) Review of loan loss reserve.--
                        After the initial 5 years of an 
                        intermediary's participation in the 
                        program authorized by this subsection, 
                        the Administrator shall, at the request 
                        of the intermediary, conduct a review 
                        of the annual loss rate of the 
                        intermediary. Any intermediary in 
                        operation under this subsection prior 
                        to October 1, 1994, that requests a 
                        reduction in its loan loss reserve 
                        shall be reviewed based on the most 
                        recent 5-year period preceding the 
                        request.
                          (III) Reduction of loan loss 
                        reserve.--Subject to the requirements 
                        of clause IV, the Administrator may 
                        reduce the annual loan loss reserve 
                        requirement of an intermediary to 
                        reflect the actual average loan loss 
                        rate for the intermediary during the 
                        preceding 5-year period, except that in 
                        no case shall the loan loss reserve be 
                        reduced to less than 10 percent of the 
                        outstanding balance of the notes 
                        receivable owed to the intermediary.
                          (IV) Requirements.--The Administrator 
                        may reduce the annual loan loss reserve 
                        requirement of an intermediary only if 
                        the intermediary demonstrates to the 
                        satisfaction of the Administrator 
                        that--
                                  (aa) the average annual loss 
                                rate for the intermediary 
                                during the preceding 5-year 
                                period is less than 15 percent; 
                                and
                                  (bb) that no other factors 
                                exist that may impair the 
                                ability of the intermediary to 
                                repay all obligations owed to 
                                the Administration under this 
                                subsection.
                  (E) Unavailability of comparable credit.--An 
                intermediary may make a loan under this 
                subsection of more than $20,000 to a small 
                business concern only if such small business 
                concern demonstrates that it is unable to 
                obtain credit elsewhere at comparable interest 
                rates and that it has good prospects for 
                success. In no case shall an intermediary make 
                a loan under this subsection of more than 
                $50,000, or have outstanding or committed to 
                any 1 borrower more than $50,000.
                  (F) Loan duration; interest rates.--
                          (i) Loan duration.--Loans made by the 
                        Administration under this subsection 
                        shall be for a term of 10 years.
                          (ii) Applicable interest rates.--
                        Except as provided in clause (iii), 
                        loans made by the Administration under 
                        this subsection to an intermediary 
                        shall bear an interest rate equal to 
                        1.25 percentage points below the rate 
                        determined by the Secretary of the 
                        Treasury for obligations of the United 
                        States with a period of maturity of 5 
                        years, adjusted to the nearest one-
                        eighth of 1 percent.
                          (iii) Rates applicable to certain 
                        small loans.--Loans made by the 
                        Administration to an intermediary that 
                        makes loans to small business concerns 
                        and entrepreneurs averaging not more 
                        than $7,500, shall bear an interest 
                        rate that is 2 percentage points below 
                        the rate determined by the Secretary of 
                        the Treasury for obligations of the 
                        United States with a period of maturity 
                        of 5 years, adjusted to the nearest 
                        one-eighth of 1 percent.
                          (iv) Rates applicable to multiple 
                        sites or offices.--The interest rate 
                        prescribed in clause (ii) or (iii) 
                        shall apply to each separate loan-
                        making site or office of 1 intermediary 
                        only if such site or office meets the 
                        requirements of that clause.
                          (v) Rate basis.--The applicable rate 
                        of interest under this paragraph 
                        shall--
                                  (I) be applied retroactively 
                                for the first year of an 
                                intermediary's participation in 
                                the program, based upon the 
                                actual lending practices of the 
                                intermediary as determined by 
                                the Administration prior to the 
                                end of such year; and
                                  (II) be based in the second 
                                and subsequent years of an 
                                intermediary's participation in 
                                the program, upon the actual 
                                lending practices of the 
                                intermediary during the term of 
                                the intermediary's 
                                participation in the program.
                          (vii) Covered intermediaries.--The 
                        interest rates prescribed in this 
                        subparagraph shall apply to all loans 
                        made to intermediaries under this 
                        subsection on or after October 28, 
                        1991.
                  (G) Delayed payments.--The Administration 
                shall not require repayment of interest or 
                principal of a loan made to an intermediary 
                under this subsection during the first year of 
                the loan.
                  (H) Fees; collateral.--Except as provided in 
                subparagraphs (B) and (D), the Administration 
                shall not charge any fees or require collateral 
                other than an assignment of the notes 
                receivable of the microloans with respect to 
                any loan made to an intermediary under this 
                subsection.
          (4) Marketing, management and technical assistance 
        grants to intermediaries.--Grants made in accordance 
        with subparagraph (B)(ii) of paragraph (1) shall be 
        subject to the following requirements:
                  (A) Grant amounts.--Except as otherwise 
                provided in subparagraphs (C) and (G) and 
                subject to subparagraph (B), each intermediary 
                that receives a loan under subparagraph (B)(i) 
                of paragraph (1) shall be eligible to receive a 
                grant to provide marketing, management, and 
                technical assistance to small business concerns 
                that are borrowers under this subsection. 
                Except as provided in subparagraphs (C) and 
                (G), each intermediary meeting the requirements 
                of subparagraph (B) may receive a grant of not 
                more than 25 percent of the total outstanding 
                balance of loans made to it under this 
                subsection.
                  (B) Contribution.--As a condition of a grant 
                made under subparagraph (A), the Administrator 
                shall require the intermediary to contribute an 
                amount equal to 25 percent of the amount of the 
                grant, obtained solely from non-Federal 
                sources. In addition to cash or other direct 
                funding, the contribution may include indirect 
                costs or in-kind contributions paid for under 
                non-Federal programs.
                  (C) Additional technical assistance grants 
                for making certain loans.--
                          (i) In general.--In addition to 
                        grants made under subparagraph (A) or 
                        (G), each intermediary shall be 
                        eligible to receive a grant equal to 5 
                        percent of the total outstanding 
                        balance of loans made to the 
                        intermediary under this subsection if--
                                  (I) the intermediary provides 
                                not less than 25 percent of its 
                                loans to small business 
                                concerns located in or owned by 
                                1 or more residents of an 
                                economically distressed area; 
                                or
                                  (II) the intermediary has a 
                                portfolio of loans made under 
                                this subsection--
                                          (aa) that averages 
                                        not more than $10,000 
                                        during the period of 
                                        the intermediary's 
                                        participation in the 
                                        program; or
                                          (bb) of which not 
                                        less than 25 percent is 
                                        serving rural areas 
                                        during the period of 
                                        the intermediary's 
                                        participation in the 
                                        program.
                          (ii) Purposes.--A grant awarded under 
                        clause (i) may be used to provide 
                        marketing, management, and technical 
                        assistance to small business concerns 
                        that are borrowers under this 
                        subsection.
                          (iii) Contribution exception.--The 
                        contribution requirements in 
                        subparagraph (B) do not apply to grants 
                        made under this subparagraph.
                  (D) Eligibility for multiple sites or 
                offices.--The eligibility for a grant described 
                in subparagraph (A), or (C) shall be determined 
                separately for each loan-making site or office 
                of 1 intermediary.
                  (E) Assistance to certain small business 
                concerns.--
                          (i) In general.--Each intermediary 
                        may expend an amount not to exceed 50 
                        percent of the grant funds received 
                        under paragraph (1)(B)(ii) to provide 
                        information and technical assistance to 
                        small business concerns that are 
                        prospective borrowers under this 
                        subsection.
                          (ii) Technical assistance.--An 
                        intermediary may expend not more than 
                        50 percent of the funds received under 
                        paragraph (1)(B)(ii) to enter into 
                        third party contracts for the provision 
                        of technical assistance.
                  (F) Supplemental grant.--
                          (i) In general.--The Administration 
                        may accept any funds transferred to the 
                        Administration from other departments 
                        or agencies of the Federal Government 
                        to make grants in accordance with this 
                        subparagraph and section 202(b) of the 
                        Small Business Reauthorization Act of 
                        1997 to participating intermediaries 
                        and technical assistance providers 
                        under paragraph (5), for use in 
                        accordance with clause (iii) to provide 
                        additional technical assistance and 
                        related services to recipients of 
                        assistance under a State program 
                        described in paragraph (1)(A)(iv) at 
                        the time they initially apply for 
                        assistance under this subparagraph.
                          (ii) Eligible recipients; grant 
                        amounts.--In making grants under this 
                        subparagraph, the Administration may 
                        select, from among participating 
                        intermediaries and technical assistance 
                        providers described in clause (i), not 
                        more than 20 grantees in fiscal year 
                        1998, not more than 25 grantees in 
                        fiscal year 1999, and not more than 30 
                        grantees in fiscal year 2000, each of 
                        whom may receive a grant under this 
                        subparagraph in an amount not to exceed 
                        $200,000 per year.
                          (iii) Use of grant amounts.--Grants 
                        under this subparagraph--
                                  (I) are in addition to other 
                                grants provided under this 
                                subsection and shall not 
                                require the contribution of 
                                matching amounts as a condition 
                                of eligibility; and
                                  (II) may be used by a 
                                grantee--
                                          (aa) to pay or 
                                        reimburse a portion of 
                                        child care and 
                                        transportation costs of 
                                        recipients of 
                                        assistance described in 
                                        clause (i), to the 
                                        extent such costs are 
                                        not otherwise paid by 
                                        State block grants 
                                        under the Child Care 
                                        Development Block Grant 
                                        Act of 1990 (42 U.S.C. 
                                        9858 et seq.) or under 
                                        part A of title IV of 
                                        the Social Security Act 
                                        (42 U.S.C. 601 et 
                                        seq.); and
                                          (bb) for marketing, 
                                        management, and 
                                        technical assistance to 
                                        recipients of 
                                        assistance described in 
                                        clause (i).
                          (iv) Memorandum of understanding.--
                        Prior to accepting any transfer of 
                        funds under clause (i) from a 
                        department or agency of the Federal 
                        Government, the Administration shall 
                        enter into a Memorandum of 
                        Understanding with the department or 
                        agency, which shall--
                                  (I) specify the terms and 
                                conditions of the grants under 
                                this subparagraph; and
                                  (II) provide for appropriate 
                                monitoring of expenditures by 
                                each grantee under this 
                                subparagraph and each recipient 
                                of assistance described in 
                                clause (i) who receives 
                                assistance from a grantee under 
                                this subparagraph, in order to 
                                ensure compliance with this 
                                subparagraph by those grantees 
                                and recipients of assistance.
                  (G) Grant amounts based on appropriations.--
                In any fiscal year in which the amount 
                appropriated to make grants under subparagraph 
                (A) is sufficient to provide to each 
                intermediary that receives a loan under 
                paragraph (1)(B)(i) a grant of not less than 25 
                percent of the total outstanding balance of 
                loans made to the intermediary under this 
                subsection, the Administration shall make a 
                grant under subparagraph (A) to each 
                intermediary of not less than 25 percent and 
                not more than 30 percent of that total 
                outstanding balance for the intermediary.
          (5) Private sector borrowing technical assistance 
        grants.--Grants made in accordance with subparagraph 
        (B)(iii) of paragraph (1) shall be subject to the 
        following requirements:
                  (A) Grant amounts.--Subject to the 
                requirements of subparagraph (B), the 
                Administration may make not more than 55 grants 
                annually, each in amounts not to exceed 
                $200,000 for the purposes specified in 
                subparagraph (B)(iii) of paragraph (1).
                  (B) Contribution.--As a condition of any 
                grant made under subparagraph (A), the 
                Administration shall require the grant 
                recipient to contribute an amount equal to 20 
                percent of the amount of the grant, obtained 
                solely from non-Federal sources. In addition to 
                cash or other direct funding, the contribution 
                may include indirect costs or in-kind 
                contributions paid for under non-Federal 
                programs.
          (6) Loans to small business concerns from eligible 
        intermediaries.--
                  (A) In general.--An eligible intermediary 
                shall make short-term, fixed rate loans to 
                startup, newly established, and growing small 
                business concerns from the funds made available 
                to it under subparagraph (B)(i) of paragraph 
                (1) for working capital and the acquisition of 
                materials, supplies, furniture, fixtures, and 
                equipment.
                  (B) Portfolio requirement.--To the extent 
                practicable, each intermediary that operates a 
                microloan program under this subsection shall 
                maintain a microloan portfolio with an average 
                loan size of not more than $15,000.
                  (C) Interest limit.--Notwithstanding any 
                provision of the laws of any State or the 
                constitution of any State pertaining to the 
                rate or amount of interest that may be charged, 
                taken, received, or reserved on a loan, the 
                maximum rate of interest to be charged on a 
                microloan funded under this subsection shall 
                not exceed the rate of interest applicable to a 
                loan made to an intermediary by the 
                Administration--
                          (i) in the case of a loan of more 
                        than $7,500 made by the intermediary to 
                        a small business concern or 
                        entrepreneur by more than 7.75 
                        percentage points; and
                          (ii) in the case of a loan of not 
                        more than $7,500 made by the 
                        intermediary to a small business 
                        concern or entrepreneur by more than 
                        8.5 percentage points.
                  (D) Review restriction.--The Administration 
                shall not review individual microloans made by 
                intermediaries prior to approval.
                  (E) Establishment of child care or 
                transportation businesses.--In addition to 
                other eligible small businesses concerns, 
                borrowers under any program under this 
                subsection may include individuals who will use 
                the loan proceeds to establish for-profit or 
                nonprofit child care establishments or 
                businesses providing for-profit transportation 
                services.
          (7) Program funding for microloans.--
                  (A) Number of participants.--Under the 
                program authorized by this subsection, the 
                Administration may fund, on a competitive 
                basis, not more than 300 intermediaries.
                  (B) Allocation.--
                          (i) Minimum allocation.--Subject to 
                        the availability of appropriations, of 
                        the total amount of new loan funds made 
                        available for award under this 
                        subsection in each fiscal year, the 
                        Administration shall make available for 
                        award in each State (including the 
                        District of Columbia, the Commonwealth 
                        of Puerto Rico, the United States 
                        Virgin Islands, Guam, and American 
                        Samoa) an amount equal to the sum of--
                                  (I) the lesser of--
                                          (aa) $800,000; or
                                          (bb) \1/55\ of the 
                                        total amount of new 
                                        loan funds made 
                                        available for award 
                                        under this subsection 
                                        for that fiscal year; 
                                        and
                                  (II) any additional amount, 
                                as determined by the 
                                Administration.
                          (ii) Redistribution.--If, at the 
                        beginning of the third quarter of a 
                        fiscal year, the Administration 
                        determines that any portion of the 
                        amount made available to carry out this 
                        subsection is unlikely to be made 
                        available under clause (i) during that 
                        fiscal year, the Administration may 
                        make that portion available for award 
                        in any one or more States (including 
                        the District of Columbia, the 
                        Commonwealth of Puerto Rico, the United 
                        States Virgin Islands, Guam, and 
                        American Samoa) without regard to 
                        clause (i).
          (8) Equitable distribution of intermediaries.--In 
        approving microloan program applicants and providing 
        funding to intermediaries under this subsection, the 
        Administration shall select and provide funding to such 
        intermediaries as will ensure appropriate availability 
        of loans for small businesses in all industries located 
        throughout each State, particularly those located in 
        urban and in rural areas.
          (9) Grants for management, marketing, technical 
        assistance, and related services.--
                  (A) In general.--The Administration may 
                procure technical assistance for intermediaries 
                participating in the Microloan Program to 
                ensure that such intermediaries have the 
                knowledge, skills, and understanding of 
                microlending practices necessary to operate 
                successful microloan programs.
                  (B) Assistance amount.--The Administration 
                shall transfer 7 percent of its annual 
                appropriation for loans and loan guarantees 
                under this subsection to the Administration's 
                Salaries and Expense Account for the specific 
                purpose of providing 1 or more technical 
                assistance grants to experienced microlending 
                organizations and national and regional 
                nonprofit organizations that have demonstrated 
                experience in providing training support for 
                microenterprise development and financing. to 
                achieve the purpose set forth in subparagraph 
                (A).
                  (C) Welfare-to-work microloan initiative.--Of 
                amounts made available to carry out the 
                welfare-to-work microloan initiative under 
                paragraph (1)(A)(iv) in any fiscal year, the 
                Administration may use not more than 5 percent 
                to provide technical assistance, either 
                directly or through contractors, to welfare-to-
                work microloan initiative grantees, to ensure 
                that, as grantees, they have the knowledge, 
                skills, and understanding of microlending and 
                welfare-to-work transition, and other related 
                issues, to operate a successful welfare-to-work 
                microloan initiative.
          (10) Report to congress.--On November 1, 1995, the 
        Administration shall submit to the Committees on Small 
        Business of the Senate and the House of Representatives 
        a report, including the Administration's evaluation of 
        the effectiveness of the first 3\1/2\ years of the 
        microloan program and the following:
                  (A) the numbers and locations of the 
                intermediaries funded to conduct microloan 
                programs;
                  (B) the amounts of each loan and each grant 
                to intermediaries;
                  (C) a description of the matching 
                contributions of each intermediary;
                  (D) the numbers and amounts of microloans 
                made by the intermediaries to small business 
                concern borrowers;
                  (E) the repayment history of each 
                intermediary;
                  (F) a description of the loan portfolio of 
                each intermediary including the extent to which 
                it provides microloans to small business 
                concerns in rural areas; and
                  (G) any recommendations for legislative 
                changes that would improve program operations.
          (11) Definitions.--For purposes of this subsection--
                  (A) the term ``intermediary'' means--
                          (i) a private, nonprofit entity;
                          (ii) a private, nonprofit community 
                        development corporation;
                          (iii) a consortium of private, 
                        nonprofit organizations or nonprofit 
                        community development corporations;
                          (iv) a quasi-governmental economic 
                        development entity (such as a planning 
                        and development district), other than a 
                        State, county, municipal government, or 
                        any agency thereof, if--
                                  (I) no application is 
                                received from an eligible 
                                nonprofit organization; or
                                  (II) the Administration 
                                determines that the needs of a 
                                region or geographic area are 
                                not adequately served by an 
                                existing, eligible nonprofit 
                                organization that has submitted 
                                an application; or
                          (v) an agency of or nonprofit entity 
                        established by a Native American Tribal 
                        Government,
                that seeks to borrow or has borrowed funds from 
                the Administration to make microloans to small 
                business concerns under this subsection;
                  (B) the term ``microloan'' means a short-
                term, fixed rate loan of not more than $50,000, 
                made by an intermediary to a startup, newly 
                established, or growing small business concern;
                  (C) the term ``rural area'' means any 
                political subdivision or unincorporated area--
                          (i) in a nonmetropolitan county (as 
                        defined by the Secretary of 
                        Agriculture) or its equivalent thereof; 
                        or
                          (ii) in a metropolitan county or its 
                        equivalent that has a resident 
                        population of less than 20,000 if the 
                        Small Business Administration has 
                        determined such political subdivision 
                        or area to be rural.
                  (D) the term ``economically distressed 
                area'', as used in paragraph (4), means a 
                county or equivalent division of local 
                government of a State in which the small 
                business concern is located, in which, 
                according to the most recent data available 
                from the Bureau of the Census, Department of 
                Commerce, not less than 40 percent of residents 
                have an annual income that is at or below the 
                poverty level.
          (12) Deferred participation loan pilot.--In lieu of 
        making direct loans to intermediaries as authorized in 
        paragraph (1)(B), during fiscal years 1998 through 
        2000, the Administration may, on a pilot program basis, 
        participate on a deferred basis of not less than 90 
        percent and not more than 100 percent on loans made to 
        intermediaries by a for-profit or nonprofit entity or 
        by alliances of such entities, subject to the following 
        conditions:
                  (A) Number of loans.--In carrying out this 
                paragraph, the Administration shall not 
                participate in providing financing on a 
                deferred basis to more than 10 intermediaries 
                in urban areas or more than 10 intermediaries 
                in rural areas.
                  (B) Term of loans.--The term of each loan 
                shall be 10 years. During the first year of the 
                loan, the intermediary shall not be required to 
                repay any interest or principal. During the 
                second through fifth years of the loan, the 
                intermediary shall be required to pay interest 
                only. During the sixth through tenth years of 
                the loan, the intermediary shall be required to 
                make interest payments and fully amortize the 
                principal.
                  (C) Interest rate.--The interest rate on each 
                loan shall be the rate specified by paragraph 
                (3)(F) for direct loans.
          (13) Evaluation of welfare-to-work microloan 
        initiative.--On January 31, 1999, and annually 
        thereafter, the Administration shall submit to the 
        Committees on Small Business of the House of 
        Representatives and the Senate a report on any monies 
        distributed pursuant to paragraph (4)(F).
  (n) Repayment Deferred for Active Service Reservists.--
          (1) Definitions.--In this subsection:
                  (A) Active service.--The term ``active 
                service'' has the meaning given that term in 
                section 101(d)(3) of title 10, United States 
                Code.
                  (B) Eligible reservist.--The term ``eligible 
                reservist'' means a member of a reserve 
                component of the Armed Forces ordered to 
                perform active service for a period of more 
                than 30 consecutive days.
                  (C) Essential employee.--The term ``essential 
                employee'' means an individual who is employed 
                by a small business concern and whose 
                managerial or technical expertise is critical 
                to the successful day-to-day operations of that 
                small business concern.
                  (D) Qualified borrower.--The term ``qualified 
                borrower'' means--
                          (i) an individual who is an eligible 
                        reservist and who received a direct 
                        loan under subsection (a) or (b) before 
                        being ordered to active service; or
                          (ii) a small business concern that 
                        received a direct loan under subsection 
                        (a) or (b) before an eligible 
                        reservist, who is an essential 
                        employee, was ordered to active 
                        service.
          (2) Deferral of direct loans.--
                  (A) In general.--The Administration shall, 
                upon written request, defer repayment of 
                principal and interest due on a direct loan 
                made under subsection (a) or (b), if such loan 
                was incurred by a qualified borrower.
                  (B) Period of deferral.--The period of 
                deferral for repayment under this paragraph 
                shall begin on the date on which the eligible 
                reservist is ordered to active service and 
                shall terminate on the date that is 180 days 
                after the date such eligible reservist is 
                discharged or released from active service.
                  (C) Interest rate reduction during 
                deferral.--Notwithstanding any other provision 
                of law, during the period of deferral described 
                in subparagraph (B), the Administration may, in 
                its discretion, reduce the interest rate on any 
                loan qualifying for a deferral under this 
                paragraph.
          (3) Deferral of loan guarantees and other 
        financings.--The Administration shall--
                  (A) encourage intermediaries participating in 
                the program under subsection (m) to defer 
                repayment of a loan made with proceeds made 
                available under that subsection, if such loan 
                was incurred by a small business concern that 
                is eligible to apply for assistance under 
                subsection (b)(3); and
                  (B) not later than 30 days after the date of 
                the enactment of this subsection, establish 
                guidelines to--
                          (i) encourage lenders and other 
                        intermediaries to defer repayment of, 
                        or provide other relief relating to, 
                        loan guarantees under subsection (a) 
                        and financings under section 504 of the 
                        Small Business Investment Act of 1958 
                        that were incurred by small business 
                        concerns that are eligible to apply for 
                        assistance under subsection (b)(3), and 
                        loan guarantees provided under 
                        subsection (m) if the intermediary 
                        provides relief to a small business 
                        concern under this paragraph; and
                          (ii) implement a program to provide 
                        for the deferral of repayment or other 
                        relief to any intermediary providing 
                        relief to a small business borrower 
                        under this paragraph.

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                              ----------                              


                               CARES ACT




           *       *       *       *       *       *       *
   DIVISION A--KEEPING WORKERS PAID AND EMPLOYED, HEALTH CARE SYSTEM 
                ENHANCEMENTS, AND ECONOMIC STABILIZATION

TITLE I--KEEPING AMERICAN WORKERS PAID AND EMPLOYED ACT

           *       *       *       *       *       *       *


SEC. 1110. EMERGENCY EIDL GRANTS.

  (a) Definitions.--In this section--
          (1) the term ``covered period'' means the period 
        beginning on January 31, 2020 and ending on December 
        31, 2021; and
          (2) the term ``eligible entity'' means--
                  (A) a business with not more than 500 
                employees;
                  (B) any individual who operates under a sole 
                proprietorship, with or without employees, or 
                as an independent contractor;
                  (C) a cooperative with not more than 500 
                employees;
                  (D) an ESOP (as defined in section 3 of the 
                Small Business Act (15 U.S.C. 632)) with not 
                more than 500 employees;
                  (E) a tribal small business concern, as 
                described in section 31(b)(2)(C) of the Small 
                Business Act (15 U.S.C. 657a(b)(2)(C)), with 
                not more than 500 employees; or
                  (F) an agricultural enterprise (as defined in 
                section 18(b) of the Small Business Act (15 
                U.S.C. 647(b)) with not more than 500 
                employees.
  (b) Eligible Entities.--During the covered period, in 
addition to small business concerns, private nonprofit 
organizations, and small agricultural cooperatives, an eligible 
entity shall be eligible for a loan made under section 7(b)(2) 
of the Small Business Act (15 U.S.C. 636(b)(2)).
  (c) Terms; Credit Elsewhere.--With respect to a loan made 
under section 7(b)(2) of the Small Business Act (15 U.S.C. 
636(b)(2)) in response to COVID-19 during the covered period, 
the Administrator shall waive--
          (1) any rules related the personal guarantee on 
        advances and loans of not more than $200,000 during the 
        covered period for all applicants;
          (2) the requirement that an applicant needs to be in 
        business for the 1-year period before the disaster, 
        except that no waiver may be made for a business that 
        was not in operation on January 31, 2020; and
          (3) the requirement in the flush matter following 
        subparagraph (E) of section 7(b)(2) of the Small 
        Business Act (15 U.S.C. 636(b)(2)), as so redesignated 
        by subsection (f) of this section, that an applicant be 
        unable to obtain credit elsewhere.
  (d) Approval and Ability to Repay for Small Dollar Loans.--
With respect to a loan made under section 7(b)(2) of the Small 
Business Act (15 U.S.C. 636(b)(2)) in response to COVID-19 
during the covered period, the Administrator may--
          (1) approve an applicant--
                  (A) based solely on the credit score of the 
                applicant; or
                  (B) by using alternative appropriate methods 
                to determine an applicant's ability to repay; 
                and
          (2) use information from the Department of the 
        Treasury to confirm that--
                  (A) an applicant is eligible to receive such 
                a loan; or
                  (B) the information contained in an 
                application for such a loan is accurate.
  (e) Emergency Grant.--
          (1) In general.--
                  (A) Advances.--During the covered period, an 
                entity included for eligibility in subsection 
                (b), including small business concerns, private 
                nonprofit organizations, and small agricultural 
                cooperatives, that applies for a loan under 
                section 7(b)(2) of the Small Business Act (15 
                U.S.C. 636(b)(2)) in response to COVID-19 may 
                request that the Administrator provide an 
                advance that is, subject to paragraph (3), in 
                the amount requested by such applicant to such 
                applicant.
                  (B) Timing.--With respect to each request 
                submitted to the Administrator under 
                subparagraph (A), the Administrator shall, not 
                later than 21 days after the date on which the 
                Administrator receives the request--
                          (i) verify whether the entity is an 
                        entity that is eligible for a loan made 
                        under section 7(b)(2) of the Small 
                        Business Act (15 U.S.C. 636(b)(2)) 
                        during the covered period, as described 
                        in subsection (b);
                          (ii) if the Administrator, under 
                        clause (i), verifies that the entity 
                        submitting the request is an entity 
                        that is eligible, as described in that 
                        clause, provide the advance requested 
                        by the entity; and
                          (iii) with respect to an entity that 
                        the Administrator determines is not 
                        entitled to receive an advance under 
                        this subsection, provide the entity 
                        with a notification explaining why the 
                        Administrator reached that 
                        determination.
          (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 under 
        this subsection shall be not more than $10,000.
          (4) Use of funds.--An advance provided under this 
        subsection may be used to address any allowable purpose 
        for a loan made under section 7(b)(2) of the Small 
        Business Act (15 U.S.C. 636(b)(2)), including--
                  (A) providing paid sick leave to employees 
                unable to work due to the direct effect of the 
                COVID-19;
                  (B) maintaining payroll to retain employees 
                during business disruptions or substantial 
                slowdowns;
                  (C) meeting increased costs to obtain 
                materials unavailable from the applicant's 
                original source due to interrupted supply 
                chains;
                  (D) making rent or mortgage payments; and
                  (E) repaying obligations that cannot be met 
                due to revenue losses.
          (5) Repayment.--An applicant shall not be required to 
        repay any amounts of an advance provided under this 
        subsection, even if subsequently denied a loan under 
        section 7(b)(2) of the Small Business Act (15 U.S.C. 
        636(b)(2)).
          (7) Authorization of appropriations.--There is 
        authorized to be appropriated to the Administration 
        $40,000,000,000 to carry out this subsection.
          (8) Termination.--The authority to carry out grants 
        under this subsection shall terminate on December 31, 
        2021.
          (9) Statute of limitations.--Notwithstanding any 
        other provision of law, any criminal charge or civil 
        enforcement action alleging that a borrower engaged in 
        fraud with respect to the use of an advance received 
        under this subsection shall be filed not later than 10 
        years after the offense was committed.
  (f) Emergencies Involving Federal Primary Responsibility 
Qualifying for SBA Assistance.--Section 7(b)(2) of the Small 
Business Act (15 U.S.C. 636(b)(2)) is amended--
          (1) in subparagraph (A), by striking ``or'' at the 
        end;
          (2) in subparagraph (B), by striking ``or'' at the 
        end;
          (3) in subparagraph (C), by striking ``or'' at the 
        end;
          (4) by redesignating subparagraph (D) as subparagraph 
        (E);
          (5) by inserting after subparagraph (C) the 
        following:
                  ``(D) an emergency involving Federal primary 
                responsibility determined to exist by the 
                President under the section 501(b) of the 
                Robert T. Stafford Disaster Relief and 
                Emergency Assistance Act (42 U.S.C. 5191(b)); 
                or''; and
          (6) in subparagraph (E), as so redesignated--
                  (A) by striking ``or (C)'' and inserting 
                ``(C), or (D)'';
                  (B) by striking ``disaster declaration'' each 
                place it appears and inserting ``disaster or 
                emergency declaration'';
                  (C) by striking ``disaster has occurred'' and 
                inserting ``disaster or emergency has 
                occurred'';
                  (D) by striking ``such disaster'' and 
                inserting ``such disaster or emergency''; and
                  (E) by striking ``disaster stricken'' and 
                inserting ``disaster- or emergency-stricken''; 
                and
          (7) in the flush matter following subparagraph (E), 
        as so redesignated, by striking the period at the end 
        and inserting the following: ``: Provided further, That 
        for purposes of subparagraph (D), the Administrator 
        shall deem that such an emergency affects each State or 
        subdivision thereof (including counties), and that each 
        State or subdivision has sufficient economic damage to 
        small business concerns to qualify for assistance under 
        this paragraph and the Administrator shall accept 
        applications for such assistance immediately.''.

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                              ----------                              


 ECONOMIC AID TO HARD-HIT SMALL BUSINESSES, NONPROFITS, AND VENUES ACT




           *       *       *       *       *       *       *
DIVISION N--ADDITIONAL CORONAVIRUS RESPONSE AND RELIEF

           *       *       *       *       *       *       *


 TITLE III--CONTINUING THE PAYCHECK PROTECTION PROGRAM AND OTHER SMALL 
BUSINESS SUPPORT

           *       *       *       *       *       *       *


SEC. 331. TARGETED EIDL ADVANCE FOR SMALL BUSINESS CONTINUITY, 
                    ADAPTATION, AND RESILIENCY.

  (a) Definitions.--In this section:
          (1) Agricultural enterprise.--The term ``agricultural 
        enterprise'' has the meaning given the term in section 
        18(b) of the Small Business Act (15 U.S.C. 647(b)).
          (2) Covered entity.--The term ``covered entity''--
                  (A) means an eligible entity that--
                          (i) applies for a loan under section 
                        7(b)(2) of the Small Business Act (15 
                        U.S.C. 636(b)(2)) during the covered 
                        period, including before the date of 
                        enactment of this Act;
                          (ii) is located in a low-income 
                        community;
                          (iii) has suffered an economic loss 
                        of greater than 30 percent; and
                          (iv) employs not more than 300 
                        employees; and
                  (B) except with respect to an entity included 
                under section 123.300(c) of title 13, Code of 
                Federal Regulations, or any successor 
                regulation, does not include an agricultural 
                enterprise.
          (3) Covered period.--The term ``covered period'' has 
        the meaning given the term in section 1110(a)(1) of the 
        CARES Act (15 U.S.C. 9009(a)(1)), as amended by section 
        332 of this Act.
          (4) Economic loss.--The term ``economic loss'' means, 
        with respect to a covered entity--
                  (A) the amount by which the gross receipts of 
                the covered entity declined during an 8-week 
                period between March 2, 2020, and December 31, 
                2021, relative to a comparable 8-week period 
                immediately preceding March 2, 2020, or during 
                2019; or
                  (B) if the covered entity is a seasonal 
                business concern, such other amount determined 
                appropriate by the Administrator.
          (5) Eligible entity.--The term ``eligible entity'' 
        means an entity that, during the covered period, is 
        eligible for a loan made under section 7(b)(2) of the 
        Small Business Act (15 U.S.C. 636(b)(2)), as described 
        in section 1110(b) of the CARES Act (15 U.S.C. 
        9009(b)).
          (6) Low-income community.--The term ``low-income 
        community'' has the meaning given the term in section 
        45D(e) of the Internal Revenue Code of 1986.
  (b) Entitlement to Full Amount.--
          (1) In general.--Subject to paragraph (2), a covered 
        entity, after submitting a request to the Administrator 
        that the Administrator verifies under subsection (c), 
        shall receive a total of $10,000 under section 1110(e) 
        of the CARES Act (15 U.S.C. 9009(e)), without regard to 
        whether--
                  (A) the applicable loan for which the covered 
                entity applies or applied under section 7(b)(2) 
                of the Small Business Act (15 U.S.C. 636(b)(2)) 
                is or was approved;
                  (B) the covered entity accepts or accepted 
                the offer of the Administrator with respect to 
                an approved loan described in subparagraph (A); 
                or
                  (C) the covered entity has previously 
                received a loan under section 7(a)(36) of the 
                Small Business Act (15 U.S.C. 636(a)(36)).
          (2) Effect of previously received amounts.--
                  (A) In general.--With respect to a covered 
                entity that received an emergency grant under 
                section 1110(e) of the CARES Act (15 U.S.C. 
                9009(e)) before the date of enactment of this 
                Act, the amount of the payment that the covered 
                entity shall receive under this subsection 
                (after satisfaction of the procedures required 
                under subparagraph (B)) shall be the difference 
                between $10,000 and the amount of that 
                previously received grant.
                  (B) Procedures.--If the Administrator 
                receives a request under paragraph (1) from a 
                covered entity described in subparagraph (A) of 
                this paragraph, the Administrator shall, not 
                later than 21 days after the date on which the 
                Administrator receives the request--
                          (i) perform the verification required 
                        under subsection (c);
                          (ii) if the Administrator, under 
                        subsection (c), verifies that the 
                        entity is a covered entity, provide to 
                        the covered entity a payment in the 
                        amount described in subparagraph (A); 
                        and
                          (iii) with respect to a covered 
                        entity that the Administrator 
                        determines is not entitled to a payment 
                        under this section, provide the covered 
                        entity with a notification explaining 
                        why the Administrator reached that 
                        determination.
                  (C) Rule of construction.--Nothing in this 
                paragraph may be construed to require any 
                entity that received an emergency grant under 
                section 1110(e) of the CARES Act (15 U.S.C. 
                9009(e)) before the date of enactment of this 
                Act to repay any amount of that grant.
  (c) Verification.--In carrying out this section, the 
Administrator shall require any information, including any tax 
records, from an entity submitting a request under subsection 
(b) that the Administrator determines to be necessary to verify 
that the entity is a covered entity, without regard to whether 
the entity has previously submitted such information to the 
Administrator.
  (d) Order of Processing.--The Administrator shall process and 
approve requests for payments under subsection (b) in the order 
that the Administrator receives the requests, except that the 
Administrator shall give--
          (1) first priority to covered entities described in 
        subsection (b)(2)(A); and
          (2) second priority to covered entities that have not 
        received emergency grants under section 1110(e) of the 
        CARES Act (15 U.S.C. 9009(e)), as of the date on which 
        the Administrator receives such a request, because of 
        the unavailability of funding to carry out such section 
        1110(e).
  (e) Applicability.--In addition to any other restriction 
imposed under this section, any eligibility restriction 
applicable to a loan made under section 7(b)(2) of the Small 
Business Act (15 U.S.C. 636(b)(2)), including any restriction 
under section 123.300 or 123.301 of title 13, Code of Federal 
Regulations, or any successor regulation, shall apply with 
respect to funding provided under this section.
  (f) Notification Required.--The Administrator shall provide 
notice to each of the following entities stating that the 
entity may be eligible for a payment under this section if the 
entity satisfies the requirements under clauses (ii), (iii), 
and (iv) of subsection (a)(2)(A):
          (1) Each entity that received an emergency grant 
        under section 1110(e) of the CARES Act (15 U.S.C. 
        9009(e)) before the date of enactment of this Act.
          (2) Each entity that, before the date of enactment of 
        this Act--
                  (A) applied for a loan under section 7(b)(2) 
                of the Small Business Act (15 U.S.C. 
                636(b)(2)); and
                  (B) did not receive an emergency grant under 
                section 1110(e) of the CARES Act (15 U.S.C. 
                9009(e)) because of the unavailability of 
                funding to carry out such section 1110(e).
  (g) Administration.--In carrying out this section, the 
Administrator may rely on loan officers and other personnel of 
the Office of Disaster Assistance of the Administration and 
other resources of the Administration, including contractors of 
the Administration.
  (h) Authorization of Appropriations.--There are authorized to 
be appropriated to the Administrator $20,000,000,000 to carry 
out this section--
          (1) which shall remain available through December 31, 
        2021; and
          (2) of which $20,000,000 is authorized to be 
        appropriated to the Inspector General of the 
        Administration to prevent waste, fraud, and abuse with 
        respect to funding provided under this section.
  (i) Statute of Limitations.--Notwithstanding any other 
provision of law, any criminal charge or civil enforcement 
action alleging that a borrower engaged in fraud with respect 
to the use of any amount received pursuant to this section 
shall be filed not later than 10 years after the offense was 
committed.

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