15 U.S.C. § 9009c — Support for restaurants

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 Page 2494 TITLE 15—COMMERCE AND TRADE § 9009c (III) has a pending application for or has received a grant under section 9009a of this title; or (ii) a publicly-traded company. (5) Exchange; issuer; security The terms ‘‘exchange’’, ‘‘issuer’’, and ‘‘secu- rity’’ have the meanings given those terms in section 78c(a) of this title. (6) Fund The term ‘‘Fund’’ means the Restaurant Re- vitalization Fund established under subsection (b). (7) Pandemic-related revenue loss The term ‘‘pandemic-related revenue loss’’ means, with respect to an eligible entity— (A) except as provided in subparagraphs (B), (C), and (D), the gross receipts, as estab- lished using such verification documenta- tion as the Administrator may require, of the eligible entity during 2020 subtracted from the gross receipts of the eligible entity in 2019, if such sum is greater than zero; (B) if the eligible entity was not in oper- ation for the entirety of 2019— (i) the difference between— (I) the product obtained by multi- plying the average monthly gross re- ceipts of the eligible entity in 2019 by 12; and (II) the product obtained by multi- plying the average monthly gross re- ceipts of the eligible entity in 2020 by 12; or (ii) an amount based on a formula deter- mined by the Administrator; (C) if the eligible entity opened during the period beginning on January 1, 2020, and end- ing on the day before March 11, 2021— (i) the expenses described in subsection (c)(5)(A) that were incurred by the eligible entity minus any gross receipts received; or (ii) an amount based on a formula deter- mined by the Administrator; or (D) if the eligible entity has not yet opened as of the date of application for a grant under subsection (c), but has incurred expenses described in subsection (c)(5)(A) as of March 11, 2021— (i) the amount of those expenses; or (ii) an amount based on a formula deter- mined by the Administrator. For purposes of this paragraph, the pandemic- related revenue losses for an eligible entity shall be reduced by any amounts received from a covered loan made under paragraph (36) or (37) of section 636(a) of this title in 2020 or 2021. (8) Payroll costs The term ‘‘payroll costs’’ has the meaning given the term in section 636(a)(36)(A) of this title, except that such term shall not in- clude— (A) qualified wages (as defined in sub- section (c)(3) of section 2301 of the CARES Act) taken into account in determining the credit allowed under such section 2301; or (B) premiums taken into account in deter- mining the credit allowed under section 6432 of title 26. (9) Publicly-traded company The term ‘‘publicly-traded company’’ means an entity that is majority owned or controlled by an entity that is an issuer, the securities of which are listed on a national securities ex- change under section 78f of this title. (10) Tribally-owned concern The term ‘‘Tribally-owned concern’’ has the meaning given the term in section 124.3 of title 13, Code of Federal Regulations, or any successor regulation. (b) Restaurant Revitalization Fund (1) In general There is established in the Treasury of the United States a fund to be known as the Res- taurant Revitalization Fund. (2) Appropriations (A) In general In addition to amounts otherwise avail- able, there is appropriated to the Restaurant Revitalization Fund for fiscal year 2021, out of any money in the Treasury not otherwise appropriated, $28,600,000,000, to remain avail- able until expended. (B) Distribution (i) In general Of the amounts made available under subparagraph (A)— (I) $5,000,000,000 shall be available to el- igible entities with gross receipts during 2019 of not more than $500,000; and (II) $23,600,000,000 shall be available to the Administrator to award grants under subsection (c) in an equitable manner to eligible entities of different sizes based on annual gross receipts. (ii) Adjustments The Administrator may make adjust- ments as necessary to the distribution of funds under clause (i)(II) based on demand and the relative local costs in the markets in which eligible entities operate. (C) Grants after initial period Notwithstanding subparagraph (B), on and after the date that is 60 days after March 11, 2021, or another period of time determined by the Administrator, the Administrator may make grants using amounts appro- priated under subparagraph (A) to any eligi- ble entity regardless of the annual gross re- ceipts of the eligible entity. (3) Use of funds The Administrator shall use amounts in the Fund to make grants described in subsection (c). (c) Restaurant revitalization grants (1) In general Except as provided in subsection (b) and paragraph (3), the Administrator shall award grants to eligible entities in the order in which applications are received by the Admin- istrator. Page 2495 TITLE 15—COMMERCE AND TRADE § 9009c (2) Application (A) Certification An eligible entity applying for a grant under this subsection shall make a good faith certification that— (i) the uncertainty of current economic conditions makes necessary the grant re- quest to support the ongoing operations of the eligible entity; and (ii) the eligible entity has not applied for or received a grant under section 9009a of this title. (B) Business identifiers In accepting applications for grants under this subsection, the Administrator shall prioritize the ability of each applicant to use their existing business identifiers over re- quiring other forms of registration or identi- fication that may not be common to their industry and imposing additional burdens on applicants. (3) Priority in awarding grants (A) In general During the initial 21-day period in which the Administrator awards grants under this subsection, the Administrator shall prioritize awarding grants to eligible enti- ties that are small business concerns owned and controlled by women (as defined in sec- tion 632(n) of this title), small business con- cerns owned and controlled by veterans (as defined in section 632(q) of this title), or so- cially and economically disadvantaged small business concerns (as defined in section 637(a)(4)(A) of this title). The Administrator may take such steps as necessary to ensure that eligible entities described in this sub- paragraph have access to grant funding under this section after the end of such 21- day period. (B) Certification For purposes of establishing priority under subparagraph (A), an applicant shall submit a self-certification of eligibility for priority with the grant application. (4) Grant amount (A) Aggregate maximum amount The aggregate amount of grants made to an eligible entity and any affiliated busi- nesses of the eligible entity under this sub- section— (i) shall not exceed $10,000,000; and (ii) shall be limited to $5,000,000 per phys- ical location of the eligible entity. (B) Determination of grant amount (i) In general Except as provided in this paragraph, the amount of a grant made to an eligible en- tity under this subsection shall be equal to the pandemic-related revenue loss of the eligible entity. (ii) Return to Treasury Any amount of a grant made under this subsection to an eligible entity based on estimated receipts that is greater than the actual gross receipts of the eligible entity in 2020 shall be returned to the Treasury. (5) Use of funds During the covered period, an eligible entity that receives a grant under this subsection may use the grant funds for the following ex- penses incurred as a direct result of, or during, the COVID–19 pandemic: (A) Payroll costs. (B) Payments of principal or interest on any mortgage obligation (which shall not in- clude any prepayment of principal on a mortgage obligation). (C) Rent payments, including rent under a lease agreement (which shall not include any prepayment of rent). (D) Utilities. (E) Maintenance expenses, including— (i) construction to accommodate outdoor seating; and (ii) walls, floors, deck surfaces, fur- niture, fixtures, and equipment. (F) Supplies, including protective equip- ment and cleaning materials. (G) Food and beverage expenses that are within the scope of the normal business practice of the eligible entity before the cov- ered period. (H) Covered supplier costs, as defined in section 636m(a) of this title (as redesignated, transferred, and amended by section 304(b) of the Economic Aid to Hard-Hit Small Busi- nesses, Nonprofits, and Venues Act (Public Law 116–260)). (I) Operational expenses. (J) Paid sick leave. (K) Any other expenses that the Adminis- trator determines to be essential to main- taining the eligible entity. (6) Returning funds If an eligible entity that receives a grant under this subsection fails to use all grant funds or permanently ceases operations on or before the last day of the covered period, the eligible entity shall return to the Treasury any funds that the eligible entity did not use for the allowable expenses under paragraph (5). (Pub. L. 117–2, title V, § 5003, Mar. 11, 2021, 135 Stat. 85.) Editorial Notes REFERENCES IN TEXT Section 2301 of the CARES Act, referred to in subsec. (a)(8)(A), is section 2301 of Pub. L. 116–136, which is set out as a note under section 3111 of Title 26, Internal Revenue Code. Section 636m(a) of this title (as redesignated, trans- ferred, and amended by section 304(b) of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (Public Law 116–260)), referred to in subsec. (c)(5)(H), probably means section 636m(a) of this title, as redesignated, transferred, and amended by section 304(b) of title III of div. N of Pub. L. 116–260. CODIFICATION Section was enacted as part of the American Rescue Plan Act of 2021, and not as part of the CARES Act which in part comprises this chapter. Page 2496 TITLE 15—COMMERCE AND TRADE § 9010 Statutory Notes and Related Subsidiaries TAX TREATMENT OF RESTAURANT REVITALIZATION GRANTS Pub. L. 117–2, title IX, § 9673, 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 restaurant revitalization grant under section 5003 [15 U.S.C. 9009c] 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) except as otherwise provided by the Sec- retary of the Treasury (or the Secretary’s dele- gate), 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.’’ § 9010. Resources and services in languages other than English (a) In general The Administrator shall provide the resources and services made available by the Administra- tion to small business concerns in the 10 most commonly spoken languages, other than English, in the United States, which shall in- clude Mandarin, Cantonese, Japanese, and Ko- rean. (b) Authorization of appropriations There is authorized to be appropriated to the Administrator $25,000,000 to carry out this sec- tion. (Pub. L. 116–136, div. A, title I, § 1111, Mar. 27, 2020, 134 Stat. 309.) § 9011. Subsidy for certain loan payments (a) Definition of covered loan In this section, the term ‘‘covered loan’’ means a loan that is— (1) guaranteed by the Administration under— (A) section 636(a) of this title— (i) including a loan made under the Com- munity Advantage Pilot Program of the Administration; and (ii) excluding a loan made under para- graph (36) of such section 636(a) of this title, as added by section 1102; or (B) title V of the Small Business Invest- ment Act of 1958 (15 U.S.C. 695 et seq.); or (2) made by an intermediary to a small busi- ness concern using loans or grants received under section 636(m) of this title. (b) Sense of Congress It is the sense of Congress that— (1) all borrowers are adversely affected by COVID–19; (2) relief payments by the Administration are appropriate for all borrowers; and (3) in addition to the relief provided under this Act, the Administration should encourage lenders to provide payment deferments, when appropriate, and to extend the maturity of covered loans, so as to avoid balloon payments or any requirement for increases in debt pay- ments resulting from deferments provided by lenders during the period of the national emer- gency declared by the President under the Na- tional Emergencies Act (50 U.S.C. 1601 et seq.) with respect to the Coronavirus Disease 2019 (COVID–19). (c) Principal and interest payments (1) In general Subject to the other provisions of this sec- tion, the Administrator shall pay the prin- cipal, interest, and any associated fees that are owed on a covered loan in a regular serv- icing status, without regard to the date on which the covered loan is fully disbursed, and subject to availability of funds, as follows: (A) With respect to a covered loan made before March 27, 2020, and not on deferment, the Administrator shall make those pay- ments as follows: (i) The Administrator shall make those payments for the 6-month period begin- ning with the next payment due on the covered loan. (ii) In addition to the payments under clause (i)— (I) with respect to a covered loan other than a covered loan described in para- graph (1)(A)(i) or (2) of subsection (a), the Administrator shall make those pay- ments for— (aa) the 3-month period beginning with the first payment due on the cov- ered loan on or after February 1, 2021; and (bb) an additional 5-month period im- mediately following the end of the 3- month period provided under item (aa) if the covered loan is made to a bor- rower that, according to records of the Administration, is assigned a North American Industry Classification Sys- tem code beginning with 61, 71, 72, 213, 315, 448, 451, 481, 485, 487, 511, 512, 515, 532, or 812; and (II) with respect to a covered loan de- scribed in paragraph (1)(A)(i) or (2) of subsection (a), the Administrator shall make those payments for the 8-month period beginning with the first payment due on the covered loan on or after Feb- ruary 1, 2021. (B) With respect to a covered loan made before March 27, 2020, and on deferment, the Administrator shall make those payments as follows: (i) The Administrator shall make those payments for the 6-month period begin- ning with the next payment due on the covered loan after the deferment period. (ii) In addition to the payments under clause (i)— (I) with respect to a covered loan other than a covered loan described in para-