15 U.S.C. § 9009a — Grants for shuttered venue operators

Page 2485 TITLE 15—COMMERCE AND TRADE § 9009a (9) Statute of limitations Notwithstanding any other provision of law, any criminal charge or civil enforcement ac- tion 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. (Pub. L. 116–136, div. A, title I, § 1110, Mar. 27, 2020, 134 Stat. 306; Pub. L. 116–139, div. A, § 101(b), (c), Apr. 24, 2020, 134 Stat. 620, 621; Pub. L. 116–260, div. N, title III, §§ 332, 333(c), Dec. 27, 2020, 134 Stat. 2045, 2046; Pub. L. 117–165, § 2(b), Aug. 5, 2022, 136 Stat. 1363.) Editorial Notes CODIFICATION Section is comprised of section 1110 of Pub. L. 116–136. Subsec. (f) of section 1110 of Pub. L. 116–136 amended section 636 of this title. AMENDMENTS 2022—Subsec. (e)(9). Pub. L. 117–165 added par. (9). 2020—Subsec. (a)(1). Pub. L. 116–260, § 332(1), sub- stituted ‘‘December 31, 2021’’ for ‘‘December 31, 2020’’. Subsec. (a)(2)(F). Pub. L. 116–139, § 101(c), added sub- par. (F). Subsec. (d)(1), (2). Pub. L. 116–260, § 332(2), added pars. (1) and (2) and struck out former pars. (1) and (2) which read as follows: ‘‘(1) approve an applicant based solely on the credit score of the applicant and shall not require an appli- cant to submit a tax return or a tax return transcript for such approval; or ‘‘(2) use alternative appropriate methods to deter- mine an applicant’s ability to repay.’’ Subsec. (e)(1). Pub. L. 116–260, § 332(3)(A), designated existing provisions as subpar. (A), inserted heading, struck out ‘‘within 3 days after the Administrator re- ceives an application from such applicant’’ after ‘‘to such applicant’’, and added subpar. (B). Subsec. (e)(6). Pub. L. 116–260, § 333(c), struck out par. (6). Text read as follows: ‘‘If an applicant that receives an advance under this subsection transfers into, or is approved for, the loan program under section 636(a) of this title, the advance amount shall be reduced from the loan forgiveness amount for a loan for payroll costs made under such section 636(a) of this title.’’ Subsec. (e)(7). Pub. L. 116–260, § 332(3)(B), substituted ‘‘$40,000,000,000’’ for ‘‘$20,000,000,000’’. Pub. L. 116–139, § 101(b), substituted ‘‘$20,000,000,000’’ for ‘‘$10,000,000,000’’. Subsec. (e)(8). Pub. L. 116–260, § 332(3)(C), substituted ‘‘December 31, 2021’’ for ‘‘December 31, 2020’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2020 AMENDMENT Pub. L. 116–260, div. N, title III, § 333(d), Dec. 27, 2020, 134 Stat. 2046, provided that: ‘‘The amendment made by subsection (c) [amending this section] shall be effective as if included in the CARES Act (Public Law 116–136; 134 Stat. 281).’’ Except as otherwise provided, amendment by Pub. L. 116–260 effective on Dec. 27, 2020, and applicable to loans and grants made on or after Dec. 27, 2020, see section 348 of Pub. L. 116–260, set out as a note under section 636 of this title. TARGETED EIDL ADVANCE Pub. L. 117–2, title V, § 5002, Mar. 11, 2021, 135 Stat. 85, provided that: ‘‘(a) DEFINITIONS.—In this section— ‘‘(1) the term ‘Administrator’ means the Adminis- trator of the Small Business Administration; and ‘‘(2) the terms ‘covered entity’ and ‘economic loss’ have the meanings given the terms in section 331(a) of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (title III of division N of Public Law 116–260) [15 U.S.C. 9009b(a)]. ‘‘(b) APPROPRIATIONS.—In addition to amounts other- wise available, there is appropriated to the Adminis- trator for fiscal year 2021, out of any money in the Treasury not otherwise appropriated, $15,000,000,000— ‘‘(1) to remain available until expended; and ‘‘(2) of which, the Administrator shall use— ‘‘(A) $10,000,000,000 to make payments to covered entities that have not received the full amounts to which the covered entities are entitled under sec- tion 331 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (title III of division N of Public Law 116–260) [15 U.S.C. 9009b]; and ‘‘(B) $5,000,000,000 to make payments under sec- tion 1110(e) of the CARES Act (15 U.S.C. 9009(e)), each of which shall be— ‘‘(i) made to a covered entity that— ‘‘(I) has suffered an economic loss of greater than 50 percent; and ‘‘(II) employs not more than 10 employees; ‘‘(ii) in an amount that is $5,000; and ‘‘(iii) with respect to the covered entity to which the payment is made, in addition to any payment made to the covered entity under sec- tion 1110(e) of the CARES Act (15 U.S.C. 9009(e)) or section 331 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (title III of division N of Public Law 116–260).’’ CLARIFICATION OF TAX TREATMENT OF CERTAIN LOAN FORGIVENESS AND OTHER BUSINESS FINANCIAL AS- SISTANCE Advance described in subsec. (e) of this section not included in gross income of recipient, see section 278 of div. N of Pub. L. 116–260, set out as a note under section 9008 of this title. REPEAL OF EIDL ADVANCE DEDUCTION Pub. L. 116–260, div. N, title III, § 333(a), (e), Dec. 27, 2020, 134 Stat. 2046, 2047, provided that: ‘‘(a) DEFINITIONS.—In this section [amending this sec- tion and enacting provisions set out as notes under this section]— ‘‘(1) the term ‘covered entity’ means an entity that receives an advance under section 1110(e) of the CARES Act (15 U.S.C. 9009(e)), including an entity that received such an advance before the date of en- actment of this Act [Dec. 27, 2020]; and ‘‘(2) 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 [div. N of Pub. L. 116–260]. ‘‘(e) RULEMAKING.— ‘‘(1) IN GENERAL.—Not later than 15 days after the date of enactment of this Act [Dec. 27, 2020], the Ad- ministrator [of the Small Business Administration] shall issue rules that ensure the equal treatment of all covered entities with respect to the amendment made by subsection (c) [amending this section], which shall include consideration of covered entities that, before the date of enactment of this Act, com- pleted the loan forgiveness process described in sec- tion 1110(e)(6) of the CARES Act (15 U.S.C. 9009(e)(6)), as in effect before that date of enactment. ‘‘(2) NOTICE AND COMMENT.— The notice and com- ment requirements under section 553 of title 5, United States Code, shall not apply with respect to the rules issued under paragraph (1).’’ § 9009a. Grants for shuttered venue operators (a) Definitions In this section: (1) Eligible person or entity (A) In general The term ‘‘eligible person or entity’’ means a live venue operator or promoter, Page 2486 TITLE 15—COMMERCE AND TRADE § 9009a theatrical producer, or live performing arts organization operator, a relevant museum operator, a motion picture theatre operator, or a talent representative that meets the following requirements: (i) The live venue operator or promoter, theatrical producer, or live performing arts organization operator, the relevant museum operator, the motion picture the- atre operator, or the talent representa- tive— (I) was fully operational as a live venue operator or promoter, theatrical producer, or live performing arts organi- zation operator, a relevant museum op- erator, a motion picture theatre oper- ator, or a talent representative on Feb- ruary 29, 2020; and (II) has gross earned revenue during the first, second, third, or, only with re- spect to an application submitted on or after January 1, 2021, fourth quarter in 2020 that demonstrates not less than a 25 percent reduction from the gross earned revenue of the live venue operator or promoter, theatrical producer, or live performing arts organization operator, the relevant museum operator, the mo- tion picture theatre operator, or the tal- ent representative during the same quar- ter in 2019. (ii) As of the date of the grant under this section— (I) the live venue operator or pro- moter, theatrical producer, or live per- forming arts organization operator is or intends to resume organizing, pro- moting, producing, managing, or hosting future live events described in paragraph (3)(A)(i); (II) the motion picture theatre oper- ator is open or intends to reopen for the primary purpose of public exhibition of motion pictures; (III) the relevant museum operator is open or intends to reopen; or (IV) the talent representative is rep- resenting or managing artists and enter- tainers. (iii) The venues at which the live venue operator or promoter, theatrical producer, or live performing arts organization oper- ator promotes, produces, manages, or hosts events described in paragraph (3)(A)(i) or the artists and entertainers represented or managed by the talent rep- resentative perform have the following characteristics: (I) A defined performance and audience space. (II) Mixing equipment, a public address system, and a lighting rig. (III) Engages 1 or more individuals to carry out not less than 2 of the following roles: (aa) A sound engineer. (bb) A booker. (cc) A promoter. (dd) A stage manager. (ee) Security personnel. (ff) A box office manager. (IV) There is a paid ticket or cover charge to attend most performances and artists are paid fairly and do not play for free or solely for tips, except for fund- raisers or similar charitable events. (V) For a venue owned or operated by a nonprofit entity that produces free events, the events are produced and man- aged primarily by paid employees, not by volunteers. (VI) Performances are marketed through listings in printed or electronic publications, on websites, by mass email, or on social media. (iv) A motion picture theatre or motion picture theatres operated by the motion picture theatre operator have the fol- lowing characteristics: (I) At least 1 auditorium that includes a motion picture screen and fixed audi- ence seating. (II) A projection booth or space con- taining not less than 1 motion picture projector. (III) A paid ticket charge to attend ex- hibition of motion pictures. (IV) Motion picture exhibitions are marketed through showtime listings in printed or electronic publications, on websites, by mass mail, or on social media. (v) The relevant museum or relevant mu- seums for which the relevant museum op- erator is seeking a grant under this sec- tion have the following characteristics: (I) Serving as a relevant museum as its principal business activity. (II) Indoor exhibition spaces that are a component of the principal business ac- tivity and which have been subjected to pandemic-related occupancy restric- tions. (III) At least 1 auditorium, theater, or performance or lecture hall with fixed audience seating and regular program- ming. (vi)(I) The live venue operator or pro- moter, theatrical producer, or live per- forming arts organization operator, the relevant museum operator, the motion pic- ture theatre operator, or the talent rep- resentative does not have, or is not major- ity owned or controlled by an entity with, any of the following characteristics: (aa) Being an issuer, the securities of which are listed on a national securities exchange. (bb) Receiving more than 10 percent of gross revenue from Federal funding dur- ing 2019, excluding amounts received by the live venue operator or promoter, the- atrical producer, or live performing arts organization operator, the relevant mu- seum operator, the motion picture the- atre operator, or the talent representa- tive under the Robert T. Stafford Dis- aster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.). Page 2487 TITLE 15—COMMERCE AND TRADE § 9009a (II) The live venue operator or promoter, theatrical producer, or live performing arts organization operator, the relevant museum operator, the motion picture the- atre operator, or the talent representative does not have, or is not majority owned or controlled by an entity with, more than 2 of the following characteristics: (aa) Owning or operating venues, rel- evant museums, motion picture theatres, or talent agencies or talent management companies in more than 1 country. (bb) Owning or operating venues, rel- evant museums, motion picture theatres, or talent agencies or talent management companies in more than 10 States. (cc) Employing more than 500 employ- ees as of February 29, 2020, determined on a full-time equivalent basis in accord- ance with subparagraph (C). (III) For purposes of applying the charac- teristics described in subclauses (I) and (II) to an entity owned by a State or a polit- ical subdivision of a State, the relevant entity— (aa) shall be the live venue operator or promoter, theatrical producer, or live performing arts organization operator, the relevant museum operator, the mo- tion picture theatre operator, or the tal- ent representative; and (bb) shall not include entities of the State or political subdivision other than the live venue operator or promoter, the- atrical producer, or live performing arts organization operator, the relevant mu- seum operator, the motion picture the- atre operator, or the talent representa- tive. (B) Exclusion The term ‘‘eligible person or entity’’ shall not include a live venue operator or pro- moter, theatrical producer, or live per- forming arts organization operator, a rel- evant museum operator, a motion picture theatre operator, or a talent representative that— (i) presents live performances of a pru- rient sexual nature; or (ii) derives, directly or indirectly, more than de minimis gross revenue through the sale of products or services, or the presen- tation of any depictions or displays, of a prurient sexual nature. (C) Calculation of full-time employees For purposes of determining the number of full-time equivalent employees under sub- paragraph (A)(vi)(II)(cc) of this paragraph and under paragraph (2)(E)— (i) any employee working not fewer than 30 hours per week shall be considered a full-time employee; and (ii) any employee working not fewer than 10 hours and fewer than 30 hours per week shall be counted as one-half of a full- time employee. (D) Multiple business entities Each business entity of an eligible person or entity that also meets the requirements under subparagraph (A) and that is not de- scribed in subparagraph (B) shall be treated by the Administrator as an independent, non-affiliated entity for the purposes of this section. (2) Exchange; issuer; security The terms ‘‘exchange’’, ‘‘issuer’’, and ‘‘secu- rity’’ have the meanings given those terms in section 78c(a) of this title. (3) Live venue operator or promoter, theatrical producer, or live performing arts organiza- tion operator The term ‘‘live venue operator or promoter, theatrical producer, or live performing arts or- ganization operator’’— (A) means— (i) an individual or entity— (I) that, as a principal business activ- ity, organizes, promotes, produces, man- ages, or hosts live concerts, comedy shows, theatrical productions, or other events by performing artists for which— (aa) a cover charge through ticketing or front door entrance fee is applied; and (bb) performers are paid in an amount that is based on a percentage of sales, a guarantee (in writing or standard contract), or another mutu- ally beneficial formal agreement; and (II) for which not less than 70 percent of the earned revenue of the individual or entity is generated through, to the ex- tent related to a live event described in subclause (I), cover charges or ticket sales, production fees or production re- imbursements, nonprofit educational ini- tiatives, or the sale of event beverages, food, or merchandise; or (ii) an individual or entity that, as a principal business activity, makes avail- able for purchase by the public an average of not less than 60 days before the date of the event tickets to events— (I) described in clause (i)(I); and (II) for which performers are paid in an amount that is based on a percentage of sales, a guarantee (in writing or stand- ard contract), or another mutually bene- ficial formal agreement; and (B) includes an individual or entity de- scribed in subparagraph (A) that— (i) operates for profit; (ii) is a nonprofit organization; (iii) is government-owned; or (iv) is a corporation, limited liability company, or partnership or operated as a sole proprietorship. (4) Motion picture theatre operator The term ‘‘motion picture theatre operator’’ means an individual or entity that— (A) as the principal business activity of the individual or entity, owns or operates at least 1 place of public accommodation for the purpose of motion picture exhibition for a fee; and (B) includes an individual or entity de- scribed in subparagraph (A) that— Page 2488 TITLE 15—COMMERCE AND TRADE § 9009a (i) operates for profit; (ii) is a nonprofit organization; (iii) is government-owned; or (iv) is a corporation, limited liability company, or partnership or operated as a sole proprietorship. (5) National securities exchange The term ‘‘national securities exchange’’ means an exchange registered as a national se- curities exchange under section 78f of this title. (6) Nonprofit The term ‘‘nonprofit’’, with respect to an or- ganization, means that the organization is ex- empt from taxation under section 501(a) of title 26. (7) Relevant museum The term ‘‘relevant museum’’— (A) has the meaning given the term ‘‘mu- seum’’ in section 9172 of title 20; and (B) shall not include any entity that is or- ganized as a for-profit entity. (8) Seasonal employer The term ‘‘seasonal employer’’ has the meaning given that term in subparagraph (A) of section 636(a)(36) of this title, as amended by this Act. (9) State The term ‘‘State’’ means— (A) a State; (B) the District of Columbia; (C) the Commonwealth of Puerto Rico; and (D) any other territory or possession of the United States. (10) Talent representative The term ‘‘talent representative’’— (A) means an agent or manager that— (i) as not less than 70 percent of the oper- ations of the agent or manager, is engaged in representing or managing artists and entertainers; (ii) books or represents musicians, come- dians, actors, or similar performing artists primarily at live events in venues or at festivals; and (iii) represents performers described in clause (ii) that are paid in an amount that is based on the number of tickets sold, or a similar basis; and (B) includes an agent or manager described in subparagraph (A) that— (i) operates for profit; (ii) is a nonprofit organization; (iii) is government-owned; or (iv) is a corporation, limited liability company, or partnership or operated as a sole proprietorship. (b) Authority (1) In general (A) Administration The Associate Administrator for the Office of Disaster Assistance of the Administration shall coordinate and formulate policies re- lating to the administration of grants made under this section. (B) Certification of need An eligible person or entity applying for a grant under this section shall submit a good faith certification that the uncertainty of current economic conditions makes nec- essary the grant to support the ongoing op- erations of the eligible person or entity. (2) Initial grants (A) In general The Administrator may make initial grants to eligible persons or entities in ac- cordance with this section. (B) Initial priorities for awarding grants (i) First priority in awarding grants During the initial 14-day period during which the Administrator awards grants under this paragraph, the Administrator shall only award grants to an eligible per- son or entity with revenue, during the pe- riod beginning on April 1, 2020 and ending on December 31, 2020, that is not more than 10 percent of the revenue of the eligi- ble person or entity during the period be- ginning on April 1, 2019 and ending on De- cember 31, 2019, due to the COVID–19 pan- demic. (ii) Second priority in awarding grants During the 14-day period immediately following the 14-day period described in clause (i), the Administrator shall only award grants to an eligible person or enti- ty with revenue, during the period begin- ning on April 1, 2020 and ending on Decem- ber 31, 2020, that is not more than 30 per- cent of the revenue of the eligible person or entity during the period beginning on April 1, 2019 and ending on December 31, 2019, due to the COVID–19 pandemic. (iii) Determination of revenue For purposes of clauses (i) and (ii)— (I) any amounts received by an eligible person or entity under the CARES Act (Public Law 116–136; 134 Stat. 281) or an amendment made by the CARES Act shall not be counted as revenue of an eli- gible person or entity; (II) the Administrator shall use an ac- crual method of accounting for deter- mining revenue; and (III) the Administrator may use alter- native methods to establish revenue losses for an eligible person or entity that is a seasonal employer and that would be adversely impacted if January, February, and March are excluded from the calculation of year-over-year reve- nues. (iv) Limit on use of amounts for priority applicants The Administrator may use not more than 80 percent of the amounts appro- priated under section 323(d)(1)(H) of this Act to carry out this section to make ini- tial grants under this paragraph to eligible persons or entities described in clause (i) or (ii) of this subparagraph that apply for a grant under this paragraph during the Page 2489 TITLE 15—COMMERCE AND TRADE § 9009a initial 28-day period during which the Ad- ministrator awards grants under this para- graph. (C) Grants after priority periods After the end of the initial 28-day period during which the Administrator awards grants under this paragraph, the Adminis- trator may award an initial grant to any eli- gible person or entity. (D) Limits on number of initial grants to af- filiates Not more than 5 business entities of an eli- gible person or entity that would be consid- ered affiliates under the affiliation rules of the Administration may receive a grant under this paragraph. (E) Set-aside for small employers (i) In general Subject to clause (ii), not less than $2,000,000,000 of the total amount of grants made available under this paragraph shall be awarded to eligible persons or entities which employ not more than 50 full-time employees, determined in accordance with subsection (a)(1)(C). (ii) Time limit Clause (i) shall not apply on and after the date that is 60 days after the Adminis- trator begins awarding grants under this section and, on and after such date, amounts available for grants under this section may be used for grants under this section to any eligible person or entity. (3) Supplemental grants (A) In general Subject to subparagraph (B), the Adminis- trator may make a supplemental grant in accordance with this section to an eligible person or entity that receives a grant under paragraph (2) if, as of April 1, 2021, the reve- nues of the eligible person or entity for the most recent calendar quarter are not more than 30 percent of the revenues of the eligi- ble person or entity for the corresponding calendar quarter during 2019 due to the COVID–19 pandemic. (B) Processing timely initial grant applica- tions first The Administrator may not award a sup- plemental grant under subparagraph (A) until the Administrator has completed proc- essing (including determining whether to award a grant) each application for an ini- tial grant under paragraph (2) that is sub- mitted by an eligible person or entity on or before the date that is 60 days after the date on which the Administrator begins accept- ing such applications. (4) Certification An eligible person or entity applying for a grant under this section that is an eligible business described in the matter preceding subclause (I) of section 4003(c)(3)(D)(i) of the CARES Act (15 U.S.C. 9042(c)(3)(D)(i)), shall make a good-faith certification described in subclauses (IX) and (X) of such section. (c) Amount (1) Initial grants (A) In general Subject to subparagraphs (B) and (C), a grant under subsection (b)(2) shall be in the amount equal to the lesser of— (i)(I) for an eligible person or entity that was in operation on January 1, 2019, the amount equal to 45 percent of the gross earned revenue of the eligible person or en- tity during 2019; or (II) for an eligible person or entity that began operations after January 1, 2019, the amount equal to the product obtained by multiplying— (aa) the average monthly gross earned revenue for each full month during which the eligible person or entity was in operation during 2019; by (bb) 6; or (ii) $10,000,000. (B) Application to relevant museum opera- tors A relevant museum operator may not re- ceive grants under subsection (b)(2) in a total amount that is more than $10,000,000 with respect to all relevant museums oper- ated by the relevant museum operator. (C) Reduction for recipients of new PPP loans (i) In general The otherwise applicable amount of a grant under subsection (b)(2) to an eligible person or entity shall be reduced by the total amount of loans guaranteed under paragraph (36) or (37) of section 636(a) of this title that are received on or after De- cember 27, 2020 by the eligible person or entity. (ii) Application to governmental entities For purposes of applying clause (i) to an eligible person or entity owned by a State or a political subdivision of a State, the relevant entity— (I) shall be the eligible person or enti- ty; and (II) shall not include entities of the State or political subdivision other than the eligible person or entity. (2) Supplemental grants A grant under subsection (b)(3) shall be in the amount equal to 50 percent of the grant re- ceived by the eligible person or entity under subsection (b)(2). (3) Overall maximums The total amount of grants received under paragraphs (2) and (3) of subsection (b) by an eligible person or entity shall be not more than $10,000,000. (d) Use of funds (1) Timing (A) Expenses incurred (i) In general Except as provided in clause (ii), amounts received under a grant under this Page 2490 TITLE 15—COMMERCE AND TRADE § 9009a section may be used for costs incurred dur- ing the period beginning on March 1, 2020, and ending on December 31, 2021. (ii) Extension for supplemental grants If an eligible person or entity receives a grant under subsection (b)(3), amounts re- ceived under either grant under this sec- tion may be used for costs incurred during the period beginning on March 1, 2020, and ending on June 30, 2022. (B) Expenditure (i) In general Except as provided in clause (ii), an eli- gible person or entity shall return to the Administrator any amounts received under a grant under this section that are not ex- pended on or before the date that is 1 year after the date of disbursement of the grant. (ii) Extension for supplemental grants If an eligible person or entity receives a grant under subsection (b)(3), the eligible person or entity shall return to the Ad- ministrator any amounts received under either grant under this section that are not expended on or before the date that is 18 months after the date of disbursement to the eligible person or entity of the grant under subsection (b)(2). (2) Allowable expenses (A) Definitions In this paragraph— (i) the terms ‘‘covered mortgage obliga- tion’’, ‘‘covered rent obligation’’, ‘‘covered utility payment’’, and ‘‘covered worker protection expenditure’’ have the mean- ings given those terms in section 636m(a) of this title, as redesignated, transferred, and amended by this Act; and (ii) the term ‘‘payroll costs’’ has the meaning given that term in section 636(a)(36)(A) of this title. (B) Expenses An eligible person or entity may use amounts received under a grant under this section for— (i) payroll costs; (ii) payments on any covered rent obliga- tion; (iii) any covered utility payment; (iv) scheduled payments of interest or principal on any covered mortgage obliga- tion (which shall not include any prepay- ment of principal on a covered mortgage obligation); (v) scheduled payments of interest or principal on any indebtedness or debt in- strument (which shall not include any pre- payment of principal) incurred in the ordi- nary course of business that is a liability of the eligible person or entity and was in- curred prior to February 15, 2020; (vi) covered worker protection expendi- tures; (vii) payments made to independent con- tractors, as reported on Form–1099 MISC, not to exceed a total of $100,000 in annual compensation for any individual employee of an independent contractor; and (viii) other ordinary and necessary busi- ness expenses, including— (I) maintenance expenses; (II) administrative costs, including fees and licensing costs; (III) State and local taxes and fees; (IV) operating leases in effect as of February 15, 2020; (V) payments required for insurance on any insurance policy; and (VI) advertising, production transpor- tation, and capital expenditures related to producing a theatrical or live per- forming arts production, concert, exhi- bition, or comedy show, except that a grant under this section may not be used primarily for such expenditures. (3) Prohibited expenses An eligible person or entity may not use amounts received under a grant under this sec- tion— (A) to purchase real estate; (B) for payments of interest or principal on loans originated after February 15, 2020; (C) to invest or re-lend funds; (D) for contributions or expenditures to, or on behalf of, any political party, party com- mittee, or candidate for elective office; or (E) for any other use as may be prohibited by the Administrator. (e) Increased oversight of shuttered venue oper- ator grants The Administrator shall increase oversight of eligible persons and entities receiving grants under this section, which may include the fol- lowing: (1) Documentation Additional documentation requirements that are consistent with the eligibility and other requirements under this section, includ- ing requiring an eligible person or entity that receives a grant under this section to retain records that document compliance with the requirements for grants under this section— (A) with respect to employment records, for the 4-year period following receipt of the grant; and (B) with respect to other records, for the 3- year period following receipt of the grant. (2) Reviews of use Reviews of the use of the grant proceeds by an eligible person or entity to ensure compli- ance with requirements established under this section and by the Administrator, including that the Administrator may— (A) review and audit grants under this sec- tion; and (B) in the case of fraud or other material noncompliance with respect to a grant under this section— (i) require repayment of misspent funds; or (ii) pursue legal action to collect funds. (f) Shuttered venue oversight and audit plan (1) In general Not later than 45 days after December 27, 2020, the Administrator shall submit to the Page 2491 TITLE 15—COMMERCE AND TRADE § 9009b 1 So in original. The period probably should be ‘‘; and’’. Committee on Small Business and Entrepre- neurship of the Senate and the Committee on Small Business of the House of Representa- tives an audit plan that details— (A) the policies and procedures of the Ad- ministrator for conducting oversight and au- dits of grants under this section; and (B) the metrics that the Administrator shall use to determine which grants under this section will be audited pursuant to sub- section (e). (2) Reports Not later than 60 days after December 27, 2020, and each month thereafter until the date that is 1 year after the date on which all amounts made available under section 323(d)(1)(H) of this Act have been expended, the Administrator shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report on the oversight and audit activities of the Ad- ministrator under this subsection, which shall include— (A) the total number of initial grants ap- proved and disbursed; (B) the total amount of grants received by each eligible person or entity, including any supplemental grants; (C) the number of active investigations and audits of grants under this section; (D) the number of completed reviews and audits of grants under this section, including a description of any findings of fraud or other material noncompliance.1 (E) any substantial changes made to the oversight and audit plan submitted under paragraph (1). (Pub. L. 116–260, div. N, title III, § 324, Dec. 27, 2020, 134 Stat. 2022; Pub. L. 117–2, title V, § 5005(b), Mar. 11, 2021, 135 Stat. 92.) Editorial Notes REFERENCES IN TEXT The Robert T. Stafford Disaster Relief and Emer- gency Assistance Act, referred to in subsec. (a)(1)(A)(vi)(I)(bb), is Pub. L. 93–288, May 22, 1974, 88 Stat. 143, which is classified principally to chapter 68 (§ 5121 et seq.) of Title 42, The Public Health and Wel- fare. For complete classification of this Act to the Code, see Short Title note set out under section 5121 of Title 42 and Tables. Subparagraph (A) of section 636(a)(36) of this title, as amended by this Act, referred to in subsec. (a)(8), prob- ably means subpar. (A) of section 636(a)(36) of this title, as amended by title III of div. N of Pub. L. 116–260. The CARES Act, referred to in subsec. (b)(2)(B)(iii)(I), also known as the Coronavirus Aid, Relief, and Eco- nomic Security Act, is Pub. L. 116–136, Mar. 27, 2020, 134 Stat. 281, which enacted this chapter and enacted, amended, and repealed numerous other sections and notes in the Code. For complete classification of this Act to the Code, see Short Title note set out under sec- tion 9001 of this title and Tables. Section 323(d)(1)(H) of this Act, referred to in subsecs. (b)(2)(B)(iv) and (f)(2), is section 323(d)(1)(H) of title III of div. N of Pub. L. 116–260, Dec. 27, 2020, 134 Stat. 2021, which is not classified to the Code. Section 636m(a) of this title, as redesignated, trans- ferred, and amended by this Act, referred to in subsec. (d)(2)(A)(i), probably means section 636m(a) of this title, as redesignated, transferred, and amended by title III of div. N of Pub. L. 116–260. CODIFICATION Section was enacted as part of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, and not as part of the CARES Act which in part comprises this chapter. AMENDMENTS 2021—Subsec. (a)(1)(A)(vi)(III), (IV). Pub. L. 117–2, § 5005(b)(1), redesignated subcl. (IV) as (III), substituted ‘‘subclauses (I) and (II)’’ for ‘‘subclauses (I), (II), and (III)’’, and struck out former subcl. (III) which read as follows: ‘‘The live venue operator or promoter, theat- rical producer, or live performing arts organization op- erator, the relevant museum operator, the motion pic- ture theatre operator, or the talent representative has not received, on or after December 27, 2020, a loan guar- anteed under paragraph (36) or (37) of section 636(a) of this title, as amended and added by this division.’’ Subsec. (c)(1)(A). Pub. L. 117–2, § 5005(b)(2)(A), sub- stituted ‘‘Subject to subparagraphs (B) and (C), a grant’’ for ‘‘A grant’’ in introductory provisions. Subsec. (c)(1)(C). Pub. L. 117–2, § 5005(b)(2)(B), added subpar. (C). Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective on Dec. 27, 2020, and applicable to loans and grants made on or after Dec. 27, 2020, see sec- tion 348 of Pub. L. 116–260, set out as an Effective Date of 2020 Amendment note under section 636 of this title. CLARIFICATION OF TAX TREATMENT OF CERTAIN LOAN FORGIVENESS AND OTHER BUSINESS FINANCIAL AS- SISTANCE Grant made under this section not included in gross income of recipient, see section 278 of div. N of Pub. L. 116–260, set out as a note under section 9008 of this title. DEFINITIONS ‘‘Administration’’ and ‘‘Administrator’’ mean the Small Business Administration and Administrator of the Small Business Administration, see section 302 of div. N of Pub. L. 116–260, set out as a note under section 9001 of this title. § 9009b. Targeted EIDL advance for small busi- ness continuity, adaptation, and resiliency (a) Definitions In this section: (1) Agricultural enterprise The term ‘‘agricultural enterprise’’ has the meaning given the term in section 647(b) of this title. (2) Covered entity The term ‘‘covered entity’’— (A) means an eligible entity that— (i) applies for a loan under section 636(b)(2) of this title during the covered pe- riod, including before December 27, 2020; (ii) is located in a low-income commu- nity; (iii) has suffered an economic loss of greater than 30 percent; and (iv) employs not more than 300 employ- ees; and (B) except with respect to an entity in- cluded under section 123.300(c) of title 13, Code of Federal Regulations, or any suc-