15 U.S.C. § 9009b — Targeted EIDL advance for small busi-

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- Page 2492 TITLE 15—COMMERCE AND TRADE § 9009b cessor regulation, does not include an agri- cultural enterprise. (3) Covered period The term ‘‘covered period’’ has the meaning given the term in section 9009(a)(1) of this title, as amended by section 332 of this Act. (4) Economic loss The term ‘‘economic loss’’ means, with re- spect 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 De- cember 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 busi- ness 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 636(b)(2) of this title, as described in section 9009(b) of this title. (6) Low-income community The term ‘‘low-income community’’ has the meaning given the term in section 45D(e) of title 26. (b) Entitlement to full amount (1) In general Subject to paragraph (2), a covered entity, after submitting a request to the Adminis- trator that the Administrator verifies under subsection (c), shall receive a total of $10,000 under section 9009(e) of this title, without re- gard to whether— (A) the applicable loan for which the cov- ered entity applies or applied under section 636(b)(2) of this title is or was approved; (B) the covered entity accepts or accepted the offer of the Administrator with respect to an approved loan described in subpara- graph (A); or (C) the covered entity has previously re- ceived a loan under section 636(a)(36) of this title. (2) Effect of previously received amounts (A) In general With respect to a covered entity that re- ceived an emergency grant under section 9009(e) of this title before December 27, 2020, 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 dif- ference 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 para- graph, the Administrator shall, not later than 21 days after the date on which the Ad- ministrator receives the request— (i) perform the verification required under subsection (c); (ii) if the Administrator, under sub- section (c), verifies that the entity is a covered entity, provide to the covered en- tity a payment in the amount described in subparagraph (A); and (iii) with respect to a covered entity that the Administrator determines is not enti- tled to a payment under this section, pro- vide the covered entity with a notification explaining why the Administrator reached that determination. (C) Rule of construction Nothing in this paragraph may be con- strued to require any entity that received an emergency grant under section 9009(e) of this title before December 27, 2020, to repay any amount of that grant. (c) Verification In carrying out this section, the Adminis- trator shall require any information, including any tax records, from an entity submitting a re- quest under subsection (b) that the Adminis- trator 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 de- scribed in subsection (b)(2)(A); and (2) second priority to covered entities that have not received emergency grants under sec- tion 9009(e) of this title, as of the date on which the Administrator receives such a re- quest, because of the unavailability of funding to carry out such section 9009(e). (e) Applicability In addition to any other restriction imposed under this section, any eligibility restriction ap- plicable to a loan made under section 636(b)(2) of this title, including any restriction under sec- tion 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 9009(e) of this title before December 27, 2020. (2) Each entity that, before December 27, 2020— (A) applied for a loan under section 636(b)(2) of this title; and (B) did not receive an emergency grant under section 9009(e) of this title because of the unavailability of funding to carry out such section 9009(e). Page 2493 TITLE 15—COMMERCE AND TRADE § 9009c (g) Administration In carrying out this section, the Adminis- trator may rely on loan officers and other per- sonnel of the Office of Disaster Assistance of the Administration and other resources of the Ad- ministration, including contractors of the Ad- ministration. (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 De- cember 31, 2021; and (2) of which $20,000,000 is authorized to be ap- propriated to the Inspector General of the Ad- ministration 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 pursu- ant to this section shall be filed not later than 10 years after the offense was committed. (Pub. L. 116–260, div. N, title III, § 331, Dec. 27, 2020, 134 Stat. 2043; Pub. L. 117–165, § 2(c), Aug. 5, 2022, 136 Stat. 1363.) Editorial Notes REFERENCES IN TEXT Section 332 of this Act, referred to in subsec. (a)(3), is section 332 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 2022—Subsec. (i). Pub. L. 117–165 added subsec. (i). 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. TAX TREATMENT OF TARGETED EIDL ADVANCES Pub. L. 117–2, title IX, § 9672, Mar. 11, 2021, 135 Stat. 184, provided that: ‘‘For purposes of the Internal Rev- enue Code of 1986 [26 U.S.C. 1 et seq.]— ‘‘(1) amounts received from the Administrator of the Small Business Administration in the form of a targeted EIDL advance under section 331 of the Eco- nomic 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] shall not be included in the gross income of the person that receives such amounts, ‘‘(2) no deduction shall be denied, no tax attribute shall be reduced, and no basis increase shall be de- nied, by reason of the exclusion from gross income provided by paragraph (1), and ‘‘(3) in the case of a partnership or S corporation that receives such amounts— ‘‘(A) any amount excluded from income by reason of paragraph (1) shall be treated as tax exempt in- come for purposes of sections 705 and 1366 of the In- ternal Revenue Code of 1986 [26 U.S.C. 705, 1366], and ‘‘(B) the Secretary of the Treasury (or the Sec- retary’s delegate) shall prescribe rules for deter- mining a partner’s distributive share of any amount described in subparagraph (A) for purposes of section 705 of the Internal Revenue Code of 1986.’’ CLARIFICATION OF TAX TREATMENT OF CERTAIN LOAN FORGIVENESS AND OTHER BUSINESS FINANCIAL AS- SISTANCE Funding under this section not included in gross in- come 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. § 9009c. Support for restaurants (a) Definitions In this section: (1) Administrator The term ‘‘Administrator’’ means the Ad- ministrator of the Small Business Administra- tion. (2) Affiliated business The term ‘‘affiliated business’’ means a busi- ness in which an eligible entity has an equity or right to profit distributions of not less than 50 percent, or in which an eligible entity has the contractual authority to control the direc- tion of the business, provided that such affili- ation shall be determined as of any arrange- ments or agreements in existence as of March 13, 2020. (3) Covered period The term ‘‘covered period’’ means the pe- riod— (A) beginning on February 15, 2020; and (B) ending on December 31, 2021, or a date to be determined by the Administrator that is not later than 2 years after March 11, 2021. (4) Eligible entity The term ‘‘eligible entity’’— (A) means a restaurant, food stand, food truck, food cart, caterer, saloon, inn, tavern, bar, lounge, brewpub, tasting room, tap- room, licensed facility or premise of a bev- erage alcohol producer where the public may taste, sample, or purchase products, or other similar place of business in which the public or patrons assemble for the primary purpose of being served food or drink; (B) includes an entity described in sub- paragraph (A) that is located in an airport terminal or that is a Tribally-owned con- cern; and (C) does not include— (i) an entity described in subparagraph (A) that— (I) is a State or local government-oper- ated business; (II) as of March 13, 2020, owns or oper- ates (together with any affiliated busi- ness) more than 20 locations, regardless of whether those locations do business under the same or multiple names; or