,i #aafth ,,congress #b;d ,session ,h4 ,r4 #gdha ,,in ,,the ,,house ,,of ,,representatives ,july #b1 #bjbj,mr4 ,golden 7for himself and ,mr4 ,kelly of ,pennsylvania7 introduced the following bill2 which was referred to the ,committee on ,small ,business1 and in addition to the ,committee on ,ways and ,means1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to establish a loan program for businesses affected by ,,covid-#ai1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,reviving the ,economy ,sustainably ,towards ,a ,recovery in ,twenty-twenty ,act or the ,,restart ,act4 #b4 ,,restart loan program 7a7 ,definitions ,in this section3 7#a7 ,administration2 ,administrator ,the terms ,administration and ,administrator mean the ,small ,business ,administration and the ,administrator thereof1 respectively4 7#b7 ,community development financial institution ,the term community development financial institution has the meaning given the term in section #ajc of the ,riegle ,community ,development and ,regulatory ,improvement ,act of #aiid 7#ab ,u4,s4,c4 #dgjb74 7#c7 ,comparable period 7,a7 ,definition ,the term comparable period means a period that-- 7i7 begins on the date that is #a year or #b years earlier than the beginning of a covered period2 and 7ii7 may be adjusted to begin at the beginning of a pay period that is immediately before or immediately after the date described in clause 7i74 7,b7 ,holidays ,if a holiday occurs during the covered period or the period described in subparagraph 7,a77i71 the holiday shall be included as part of both periods4 7#d7 ,covered loan ,the term covered loan means a loan made under this section during the covered period4 7#e7 ,covered period ,the term covered period means-- 7,a7 except as provided in subparagraph 7,b71 and as determined by the eligible recipient of a covered loan1 the #f-month period beginning on-- 7i7 the date of the origination of the covered loan2 7ii7 the first day of the next scheduled pay period following the date of the origination of the covered loan2 7iii7 the first day of the first full month following the date of the origination of the covered loan2 or 7iv7 ,april #ae1 #bjbj2 or 7,b7 with respect to an eligible recipient of a covered loan that suffered a decline in gross receipts of more than #hj percent in #bjbj as compared to #bjai or in the #f-month period beginning on the date of the origination of the covered loan as compared to a comparable period1 and as determined by the eligible recipient of a covered loan1 the #ab-month period beginning on-- 7i7 the date of the origination of the covered loan2 7ii7 the first day of the next scheduled pay period following the date of the origination of the covered loan2 7iii7 the first day of the first full month following the date of the origination of the covered loan2 or 7iv7 ,april #ae1 #bjbj4 7#f7 ,eligible recipient ,the term eligible recipient-- 7,a7 means an individual or entity that-- 7i7 is eligible to receive a loan made under section #g7;a77#cf7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;a77#cf772 or 7ii7 as of ,february #ae1 #bjbj1 has not more than #e1jjj full-time employees2 7,b7 includes-- 7i7 a nonprofit organization that-- 7,i7 as of ,february #ae1 #bjbj1 has not more than #e1jjj full-time employees2 and 7,,ii7 is not more than #ej percent owned or controlled by a ,state1 local1 or ,tribal government2 7ii7 a business concern that-- 7,i7 deals in rare coins and stamps2 and 7,,ii7 as of ,february #ae1 #bjbj1 has not more than #e1jjj full-time employees2 and 7iii7 a business concern that leases or finances equipment to other businesses1 if the business concern-- 7,i7 as of ,february #ae1 #bjbj1 has not more than #e1jjj full-time employees2 and 7,,ii7 is not-- 7aa7 a mortgage lender2 or 7bb7 a lender participating in the loan program under section #g7;a77#cf7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;a77#cf774 7#g7 ,minority depository institution ,the term minority depository institution has the meaning given the term in section #cjh of the ,financial ,institutions ,reform1 ,recovery1 and ,enforcement ,act of #aihi 7#ab ,u4,s4,c4 #adfc note74 7#h7 ,nonprofit organization ,the term nonprofit organization means an entity described in paragraph 7#c71 7#e71 7#f71 7#g7 7related to housing71 7#ab71 7#ac71 or 7#ai7 of section #eja7;c7 of the ,internal ,revenue ,code and that is exempt from taxation under section #eja7;a7 of such ,code4 7#i7 ,payroll costs ,the term payroll costs has the meaning given the term in section #g7;a77#cf77;,a7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;a77#cf77;,a771 except that such costs shall not include-- 7,a7 qualified wages taken into account in determining the credit allowed under section #bcja7;g7 of the ,,cares ,act 7,public ,law #aaf-acf72 or 7,b7 any payments made to an independent contractor4 7#aj7 ,secretary ,the term ,secretary means the ,secretary of the ,treasury4 7#aa7 ,underserved borrower ,the term underserved borrower means any business concern that has traditionally had difficulty accessing finance1 including-- 7,a7 business concerns that-- 7i7 have fewer than #be full-time equivalent employees as of ,february #ae1 #bjbj1 and do not have a strong relationship with a bank2 7ii7 are owned or controlled by minorities2 7iii7 are owned or controlled by women2 7iv7 are owned or controlled by veterans1 including service-disabled veterans 7as those terms are defined in section #c7q7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcb7q7772 or 7v7 are located in low-income and rural communities1 including low-income communities as defined in section #de;,d7e7 of the ,internal ,revenue ,code of #aihf2 and 7,b7 ,tribal business concerns4 7b7 ,establishment ,the ,administrator shall establish a program to guarantee loans made to eligible recipients affected by ,,covid-#ai4 7c7 ,participation ,in an agreement to participate in a covered loan on a deferred basis1 the participation by the ,administration shall be #ajj percent4 7d7 ,terms and requirements 7#a7 ,duration ,except as provided in paragraph 7#d71 the duration of a covered loan shall be for not more than #g years4 7#b7 ,amount 7,a7 ,in general ,the amount of a covered loan made to an eligible recipient shall be not more than the lesser of-- 7i7 #de percent of the #bjai gross receipts of the eligible recipient2 and 7ii7 #ab1jjj1jjj4 7,b7 ,duplication of assistance ,an eligible recipient of a covered loan shall not use proceeds of the covered loan for the same expenses that are covered using funds received under subsection 7a77#cf7 or 7b77#b7 of section #g of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf71 section #aaaj of the ,,cares ,act 7,public ,law #aaf-acf71 or section #djjc of the ,,cares ,act 7,public ,law #aaf-acf74 7#c7 ,interest rate 7,a7 ,in general ,except as provided in paragraph 7#d71 the interest rate on a covered loan shall be1 as determined by the ,administrator and the ,secretary-- 7i7 for the first #b years of the covered loan1 not less than #b percent and not more than #d percent2 and 7ii7 for the third through seventh years of the covered loan1 the ,applicable ,federal ,rate plus #bej to #fjj basis points based on the decline in gross receipts of the eligible recipient4 7,b7 ,no payments for #ab months ,no interest payments shall be due on a covered loan for the first #ab months of the covered loan4 7#d7 ,special provisions for nonprofit organizations ,at the time of application for a covered loan1 a nonprofit organization described in subsection 7a77#e77;,b7 shall make an election-- 7,a7 for a covered loan with a maturity of not more than #ad years and an interest rate of not more than #b percent for the first #d years and the ,applicable ,federal ,rate plus #ajj to #cjj basis points for the remaining duration of a covered loan1 with no eligibility for forgiveness of the covered loan under subsection 7j72 or 7,b7 for a covered loan with the maturity and interest rate terms described in paragraphs 7#a7 and 7#c71 respectively1 with the ability to obtain forgiveness of the covered loan if the nonprofit organization qualifies under subsection 7j77#b74 7#e7 ,payment deferral 7,a7 ,in general ,no payment of principal shall be due on a covered loan for the first #b years of the covered loan4 7,b7 ,additional deferral ,after the #b-year deferral period described in subparagraph 7,a71 the ,administrator may grant not more than an additional #b years of principal deferral to an eligible recipient of a covered loan if the eligible recipient is certified by the ,administrator and the ,secretary as economically distressed based on publicly available criteria established by the ,administrator and the ,secretary4 7#f7 ,origination fees 7,a7 ,in general ,the origination fee for a covered loan shall be as follows3 7i7 #c4ge percent for a covered loan of not more than #ajj1jjj4 7ii7 #c4e percent for a covered loan of more than #ajj1jjj and not more than #bej1jjj4 7iii7 #c4be percent for a covered loan of more than #bej1jjj and not more than #ejj1jjj4 7iv7 #c percent for a covered loan of more than #ejj1jjj and not more than #gej1jjj4 7v7 #b4ge percent for a covered loan of more than #gej1jjj and not more than #a1jjj1jjj4 7vi7 #b4e percent for a covered loan of more than #a1jjj1jjj and not more than #a1ejj1jjj4 7vii7 #b4be percent for a covered loan of more than #a1ejj1jjj and not more than #a1gej1jjj4 7viii7 #b percent for a covered loan of more than #a1gej1jjj and not more than #b1jjj1jjj4 7ix7 #a4ge percent for a covered loan of more than #b1jjj1jjj and not more than #b1ejj1jjj4 7x7 #a4e percent for a covered loan of more than #b1ejj1jjj and not more than #c1jjj1jjj4 7xi7 #a4be percent for a covered loan of more than #c1jjj1jjj and not more than #c1ejj1jjj4 7xii7 #a percent for a covered loan of more than #c1ejj1jjj and not more than #d1jjj1jjj4 7xiii7 #j4ge percent for a covered loan of more than #d1jjj1jjj and not more than #ab1jjj1jjj4 7,b7 ,payment by ,federal ,government ,the ,administrator shall-- 7i7 for any covered loan that is made to an eligible recipient with not more than #ejj full-time employees as of ,february #ae1 #bjbj1 together with all its affiliates in the aggregate1 without regard to any waiver of applicable affiliation rules1 pay the applicable origination fee described in subparagraph 7,a72 and 7ii7 for any covered loan of not more than #aj1jjj1jjj that is made to an eligible recipient with more than #ejj full-time employees as of ,february #ae1 #bjbj1 in the aggregate1 without regard to any waiver of applicable affiliation rules1 pay #ej percent of the amount of the applicable origination fee described in subparagraph 7,a74 7,c7 ,payment by eligible recipient ,after any applicable payments by the ,administrator under subparagraph 7,b71 the eligible recipient of a covered loan-- 7i7 shall be responsible for paying the remainder of any applicable origination fee under subparagraph 7,a72 and 7ii7 may finance the amount of the applicable origination fee as part of the covered loan amount1 with such origination fee amount not counting toward the limitation on covered loan amounts described in paragraph 7#b77;,a74 7#g7 ,streamlined procedures ,the ,administrator and the ,secretary shall establish streamlined application and loan approval procedures for eligible recipients with not more than #ejj full-time employees1 including by allowing an eligible recipient to use an existing application submitted to a lender for the loan program under section #g7;a77#cf7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;a77#cf77 and update the application as necessary for purposes of applying for a covered loan4 7#h7 ,application 7,a7 ,availability ,the ,administrator shall make available the application for a covered loan in the #aj most commonly spoken languages1 other than ,english1 in the ,united ,states1 which shall include ,spanish1 ,mandarin1 ,cantonese1 ,japanese1 and ,korean4 7,b7 ,guidance ,not later than #ae days after the date of enactment of this ,act1 the ,administrator and the ,secretary shall issue guidance to allow lenders to receive applications for covered loans4 7,c7 ,deadline for response ,a lender that receives an application for a covered loan shall-- 7i7 not later than #b days after submission of the application to the ,administrator1 notify the applicant that the lender submitted the application and provide the confirmation number2 and 7ii7 not later than #ae days after approving the application1 disburse the funds to the applicant4 7,d7 ,format ,the application for a covered loan shall be similar to the application used for a loan made under section #g7;a77#cf7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;a77#cf771 with additional details requested by the ,administrator as necessary4 7,e7 ,application windows ,the ,administrator shall make efforts to ensure that underserved borrowers that are eligible recipients receive covered loans1 including by establishing exclusive application windows for those eligible recipients4 7#i7 ,limitation on number of loans ,an eligible recipient may receive not more than #b covered loans1 the requested aggregate amount of which shall not exceed the limitation on covered loan amounts described in paragraph 7#b77;,a74 7#aj7 ,waiver of prepayment penalty ,notwithstanding any other provision of law1 there shall be no prepayment penalty for any payment made on a covered loan4 7#aa7 ,united states operations ,a covered loan may only be used for expenses which are-- 7,a7 properly allocable to the production of income from sources within the ,united ,states 7as determined under rules similar to the rules of part ,i of subchapter ,n of the ,internal ,revenue ,code of #aihf71 and 7,b7 effectively connected 7as determined under rules similar to the rules section #ieb of such ,code7 with the conduct by the eligible recipient of a trade or business within the ,united ,states 7or any territory or possession of the ,united ,states7 or off the coastline of the ,united ,states1 including ,state submerged lands and territorial sea and exclusive economic zones owned by a ,united ,states entity4 7e7 ,lenders 7#a7 ,existing ,,ppp lenders ,a lender that is approved to make loans under section #g7;a77#cf7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;a77#cf77 and is approved by the ,administrator and the ,secretary may make and approve covered loans4 7#b7 ,additional lenders ,the authority to make covered loans shall be extended to additional lenders determined by the ,administrator and the ,secretary to have the necessary qualifications to process1 close1 disburse1 and service loans made with the guarantee of the ,administration4 7#c7 ,lenders serving underserved borrowers ,in approving lenders to make covered loans1 the ,administrator and the ,secretary shall give priority to lenders that are community development financial institutions with lower lending volumes1 minority depository institutions1 mission-based nonprofit lenders1 nonbank lenders1 and other financial institutions that disproportionately serve underserved borrowers4 7#d7 ,resale of loans ,a lender of a covered loan may sell the covered loan to a third party4 7#e7 ,sale of participation in covered loans ,a lender of a covered loan may sell a participation in the covered loan to a non-authorized lender in an amount that is not more than #he percent of the covered loan4 7#f7 ,agent disclosure ,in order to be eligible to obtain a fee1 any agent shall be disclosed to the lender and the ,administrator at the time of application for a covered loan4 7#g7 ,capital and liquidity requirements ,until ,december #ca1 #bjba1 the amount of a covered loan made by a lender shall be disregarded by ,federal regulators for the purpose of calculating regulatory capital and liquidity requirements4 7f7 ,borrower requirements 7#a7 ,certification ,an eligible recipient applying for a covered loan shall submit a good faith certification that the eligible recipient suffered a decline in gross receipts of not less than #be percent-- 7,a7 during an #h-week period during the period beginning on ,february #a1 #bjbj1 and ending on ,july #ca1 #bjbj1 relative to-- 7i7 an #h-week period during the period beginning on ,january #a1 #bjbj1 and ending on ,march #ca1 #bjbj2 or 7ii7 a comparable #h-week period in #bjai2 or 7,b7 during a calendar or fiscal quarter during the period beginning on ,february #ae1 #bjbj1 and ending on ,july #ca1 #bjbj1 relative to the same calendar or fiscal quarter in #bjai4 7#b7 ,accounting method ,an eligible recipient may calculate the decline in gross receipts described in paragraph 7#a7 using the cash or accrual accounting method4 7#c7 ,adjustments ,the ,administrator1 in consultation with the ,secretary1 shall provide guidance on appropriate adjustments to the terms under this subsection for eligible recipients seeking a covered loan that are fiscal year taxpayers or seasonal businesses4 7#d7 ,restrictions 7,a7 ,in general ,the ,administrator may enter into agreements to guarantee covered loans made to eligible recipients only if the ,administrator determines that the agreement provides that1 until the date that is #ab months after the date on which the covered loan is no longer outstanding-- 7i7 the eligible recipient or an affiliate of the eligible recipient shall not purchase an equity security that is listed on a national securities exchange of the eligible recipient or any parent company of the eligible recipient1 except to the extent required under a contractual obligation in effect as of the date of enactment of this ,act2 7ii7 the eligible recipient shall not pay dividends or make other capital distributions with respect to the common stock of the eligible recipient2 and 7iii7 the restrictions on certain employee compensation described in section #djjd7;a7 of the ,,cares ,act 7,public ,law #aaf-acf7 apply to officers and employees of the eligible recipient4 7,b7 ,exceptions 7i7 ,dividends 7,i7 ,real estate investment trusts ,subparagraph 7,a77ii7 shall not apply to any eligible recipient that is a real estate investment trust 7as defined under section #hef of the ,internal ,revenue ,code of #aihf7 for the taxable year in which the distribution is made to the extent that such entity distributes no more than #ajj percent of real estate investment trust taxable income 7as defined in section #heg7;b77#b7 of such ,code1 determined without regard to the deduction for dividends paid 7as defined in section #efa of such ,code77 during such taxable year4 7,,ii7 ,regulated investment companies ,subparagraph 7,a77ii7 shall not apply to any eligible recipient that is a regulated investment company 7as defined under section #hea of the ,internal ,revenue ,code of #aihf7 for the taxable year in which the distribution is made to the extent that such entity distributes no more than #ajj percent of investment company taxable income 7as defined in section #heb7;b77#b7 of such ,code1 determined without regard to the deduction for dividends paid 7as defined in section #efa of such ,code77 during such taxable year4 7ii7 ,distributions ,notwithstanding subparagraph 7,a71 during the period described in that subparagraph an eligible recipient that is an ,s-corporation or a limited liability company may provide a distribution to pay income taxes4 7#e7 ,emergency relief funds 7,a7 ,in general ,except as provided in subparagraph 7,b71 an eligible recipient applying for a covered loan may not receive or have received any assistance under #djjc of the ,,cares ,act 7,public ,law #aaf-acf7 for any purpose4 7,b7 ,return of funds ,an eligible recipient that received assistance under section #djjc of the ,,cares ,act 7,public ,law #aaf-acf7 may apply for a covered loan if the eligible recipient returns the funds received under such section #djjc4 7#f7 ,business concerns with more than #a physical location ,a business concern that employs not more than #ejj full-time employees per physical location of the business concern and that is assigned a ,north ,american ,industry ,classification ,system code beginning with #gb at the time of disbursal shall be eligible to receive a covered loan of not more than #be1jjj1jjj if the number of full-time employees1 in the aggregate1 does not exceed #e1jjj4 7#g7 ,waiver of affiliation rules 7,a7 ,in general ,the provisions applicable to affiliations under section #aba4ajc of title #ac1 ,code of ,federal ,regulations1 or any successor regulation1 are waived with respect to eligibility for a covered loan for-- 7i7 any eligible recipient with not more than #ejj full-time employees that is assigned a ,north ,american ,industry ,classification ,system code beginning with #gb2 7ii7 any eligible recipient operating as a franchise2 7iii7 any eligible recipient that receives financial assistance from a company licensed under section #cja of the ,small ,business ,investment ,act of #aieh 7#ae ,u4,s4,c4 #fha72 and 7iv7 any eligible recipient with not more than #ejj full-time employees that is not more than #ej percent owned or controlled by another entity4 7,b7 ,control ,for purposes of this paragraph1 the term control1 with respect to an eligible recipient1 shall include-- 7i7 the possession1 direct or indirect1 of the power to vote not less than #ej percent of the voting equity in the eligible recipient2 7ii7 ownership1 direct or indirect1 of not less than #ej percent of the equity interests in the eligible recipient2 and 7iii7 direct or indirect control over the management of affairs of the eligible recipient4 7#h7 ,calculation of full-time employees ,for purposes of determining the number of full-time employees of an eligible recipient as of ,february #ae1 #bjbj-- 7,a7 any employee working not fewer than1 at the election of the eligible recipient1 an average of #cj hours per week during the preceding #c-month period or #cj hours during the preceding pay period shall be considered a full-time employee2 and 7,b7 any employee working not fewer than #aj hours and fewer than #cj hours per week shall be counted as one-half of a full-time employee4 7#i7 ,credit elsewhere ,during the covered period1 an eligible recipient is not required to show that the eligible recipient is unable to obtain credit elsewhere1 as defined in section #c7;h7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcb7;h774 7#aj7 ,subordination ,any covered loan made to an eligible recipient shall be subordinate to any liability incurred by the eligible recipient before ,february #ae1 #bjbj4 7#aa7 ,restrictions for prior bankruptcy ,a lender may deny an application for a covered loan submitted by an eligible recipient if1 during the #g-year period preceding the date of the application1 the eligible recipient or a person that owns or controls the eligible recipient filed a petition for bankruptcy under chapter #g or #ac of title #aa1 ,united ,states ,code4 7g7 ,use of funds 7#a7 ,in general ,an eligible recipient of a covered loan may use the proceeds for allowable expenses described in paragraph 7#b74 7#b7 ,allowable expenses ,the expenses described in this paragraph are-- 7,a7 payroll costs for employees and furloughed employees1 including-- 7i7 costs for continuation coverage provided pursuant to part #f of subtitle ,b of title ,i of the ,employee ,retirement ,income ,security ,act of #aigd 7other than under section #fji71 title ,,xxii of the ,public ,health ,service ,act1 section #dihj;,b of the ,internal ,revenue ,code of #aihf 7other than subsection 7f77#a7 of such section insofar as it relates to pediatric vaccines71 or section #hije;a of title #e1 ,united ,states ,code1 or under a ,state program that provides comparable continuation coverage1 other than coverage under a health flexible spending arrangement under a cafeteria plan within the meaning of section #abe of the ,internal ,revenue ,code of #aihf2 or 7ii7 any other non-cash benefit2 7,b7 rent2 7,c7 utilities2 7,d7 scheduled mortgage interest payments on existing mortgages as of ,february #ae1 #bjbj2 7,e7 scheduled interest payments on other scheduled debt as of ,february #ae1 #bjbj2 7,f7 costs related to personal protective equipment1 which shall include ,n#ie masks and authorized equivalent respirator masks1 surgical masks1 exam gloves1 face shields1 head covers1 isolation gowns1 and coveralls2 7,g7 payments of principal on outstanding loans as of ,february #ae1 #bjbj1 not including the prepayment of any obligation for a period in excess of a month unless the payment for such period is customarily due in advance2 7,h7 payments of principal on outstanding loans2 7,i7 payments made to independent contractors1 as reported on ,internal ,revenue ,service ,form-#ajii ,,nec2 7,j7 other ordinary and necessary business expenses1 including-- 7i7 settling existing debts owed to vendors and replenishing inventory2 7ii7 franchise fees2 7iii7 management fees paid to third parties on an arm's length basis2 7iv7 maintenance expenses2 7v7 administrative costs2 7vi7 taxes2 7vii7 operating leases2 and 7viii7 any other capital expenditure or expense required under any ,state1 local1 or ,federal law or guideline related to social distancing as a result of ,,covid-#ai4 7#c7 ,prohibited expenses ,an eligible recipient may not use the proceeds of a covered loan-- 7,a7 to purchase real estate2 7,b7 for payments of interest or principal on loans originated after ,february #ae1 #bjbj2 7,c7 to invest or re-lend funds2 7,d7 for contributions or expenditures to1 or on behalf of1 any political party1 party committee1 or candidate for elective office2 7,e7 for expenses related to any acquisition or divestiture2 or 7,f7 for any other use as may be prohibited by the ,administrator4 7h7 ,loan disbursal 7#a7 ,initial disbursal ,during the initial #ad-;day period in which lenders make and approve covered loans1 the lenders shall be limited to making covered loans to eligible recipients-- 7,a7 with fewer than #ej full-time employees for the first #g-;day period2 and 7,b7 with fewer than #ejj full-time employees for the second #g-;day period4 7#b7 ,report ,not later than the later of the date that is #ahj days after the date on which amounts made available to carry out this ,act are expended or ,july #ca1 #bjba1 the ,inspector ,general of the ,administration shall submit to ,congress a report evaluating whether small business concerns 7as defined in section #c of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcb771 minority-owned eligible recipients1 and other underserved borrowers are treated fairly in the process of making and approving covered loans4 7#c7 ,requirement to draw funds ,an eligible recipient shall draw all covered loan proceeds not later than ,march #ca1 #bjba4 7i7 ,maturity for loans with remaining balance after application for forgiveness ,with respect to a covered loan that has a remaining balance after a reduction based on the loan forgiveness amount under subsection 7j7-- 7#a7 the remaining balance shall continue to be guaranteed by the ,administration under this section2 and 7#b7 the covered loan shall have a maximum maturity of #g years beginning on the date of the origination of the covered loan4 7j7 ,loan forgiveness 7#a7 ,in general ,except as otherwise provided in this subsection1 an eligible recipient of a covered loan that is not a nonprofit organization and submits an application not later than ,december #ca1 #bjbc1 shall be eligible for forgiveness for expenses described in subparagraphs 7,a7 through 7,f7 of subsection 7g77#b7 incurred during the covered period using proceeds of the covered loan in an amount equal to the product obtained by multiplying-- 7,a7 the product obtained by multiplying-- 7i7 the percentage decline in gross receipts of the eligible recipient-- 7,i7 if the covered period does not extend past ,march #ca1 #bjba1 between the total gross receipts received by the business during calendar year #bjbj and the total gross receipts received by the business during calendar year #bjai2 7,,ii7 between the total gross receipts received by the business during the #f-month period following the date of the origination of the covered loan and the total gross receipts received by the business during a comparable #f-month period during the #ab-month period preceding the date of the origination of the covered loan2 or 7,,iii7 if the covered period extends past ,march #ca1 #bjba1 between the total gross receipts received by the business during the covered period and the total gross receipts received by the business during a comparable period2 and 7ii7 4#ij2 and 7,b7 7i7 for an eligible recipient with not more than #ejj full-time employees as of ,february #ae1 #bjbj1 the sum of the expenses of the eligible recipient described in subparagraphs 7,a7 through 7,f7 of subsection 7g77#b7 paid during the covered period2 or 7ii7 for an eligible recipient with more than #ejj and not more than #e1jjj full-time employees as of ,february #ae1 #bjbj1 the sum of-- 7,i7 the benefits described in clauses 7i7 and 7ii7 of subsection 7g77#b77;,a7 of this section and the payments described in subitems 7,,cc7 through 7,,gg7 of section #g7;a77#cf77;,a77viii77,i77aa7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;a77#cf77;,a77viii77,i77aa77 that were paid during the covered period2 and 7,,ii7 the expenses described in subparagraphs 7,b7 through 7,f7 of subsection 7g77#b7 that were paid during the covered period4 7#b7 ,alternative amount ,if the amount of forgiveness on a covered loan as calculated under paragraph 7#a7 is less than or equal to the amount of accrued interest payments for the first #ab months of the covered loan-- 7,a7 the amount of loan forgiveness shall be equal to the amount of those interest payments2 7,b7 forgiveness shall not be subject to section #ajh7;j7 of the ,internal ,revenue ,code1 as added by paragraph 7#h77;,c72 and 7,c7 to receive the forgiveness amount described in subparagraph 7,a71 the eligible recipient shall include in the loan forgiveness application a certification to the ,administrator that the eligible recipient was eligible for a covered loan under this section at the time of application for the covered loan4 7#c7 ,loan forgiveness for small nonprofits ,a nonprofit organization described in subsection 7a77#e77;,b7 with not more than #ejj full-time employees as of ,february #ae1 #bjbj1 that is an eligible recipient of a covered loan and submits an application not later than ,december #ca1 #bjbc1 shall be eligible for forgiveness for expenses described in subparagraphs 7,a7 through 7,f7 of subsection 7g77#b7 using1 at the election of the nonprofit organization-- 7,a7 the amount obtained using the formula described in paragraph 7#a71 except that gross receipts shall not include donations1 grants1 dues1 and investment income2 or 7,b7 the amount obtained using the formula described in paragraph 7#a71 except that the number in subparagraph 7,a77ii7 of such paragraph shall be-- 7i7 4#g for a nonprofit organization with not more than #ej full-time employees as of ,february #ae1 #bjbj2 and 7ii7 4#b for a nonprofit organization with not fewer than #ej and not more than #ejj full-time employees as of ,february #ae1 #bjbj4 7#d7 ,prohibition on forgiveness ,any covered loan made to an eligible recipient that is publicly traded1 is a nonprofit organization described in section #eja7;c77#g7 of the ,internal ,revenue ,code1 or is an eligible recipient described in subsection 7f77#g77;,d7 shall not be eligible for loan forgiveness under this subsection4 7#e7 ,limitation on amount of forgiveness 7,a7 ,in general ,the amount of all covered loans made to an eligible recipient that may be forgiven under this subsection shall not exceed the total losses incurred by the eligible recipient in the taxable year #bjbj4 7,b7 ,application of related party payments ,the ,secretary shall issue regulations that provide that1 for purposes of the loss calculation under subparagraph 7,a7-- 7i7 with respect to an eligible recipient of a covered loan with not fewer than #ejj full-time employees1 related party transactions are prohibited from counting toward the loss calculation2 and 7ii7 with respect to an eligible recipient of a covered loan with not more than #ejj full-time employees1 any related party payments made during the covered period cannot be greater than related party payments made during taxable year #bjai4 7,c7 ,capital losses ,for purposes of the loss calculation under subparagraph 7,a71 capital losses from the sale of assets or deductions for guaranteed payments to partners in partnerships or owners in ,s-corporations shall not count toward the loss calculation4 7,d7 ,limitation on ,,ppe expenses ,an eligible recipient may only receive forgiveness for personal protective equipment expenses described in subsection 7g77#b77;,f7 of not more than #e1jjj4 7#f7 ,no limits based on percentage of funds used for certain expenses ,the ,administrator or the ,secretary shall not place limitations on forgiveness under this subsection based on the percentage of covered loan proceeds that are used for specific expenses described in subsection 7g77#b74 7#g7 ,hold harmless ,if a lender approved to make covered loans has received the required documentation under this section from an applicant attesting that the applicant has accurately verified the eligibility1 gross receipts1 and expenses of the applicant during the covered period-- 7,a7 an enforcement action may not be taken against the lender under section #dg7;e7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fegt7e77 relating to loan forgiveness for those expenses2 and 7,b7 the lender shall not be subject to any penalties by the ,administrator relating to loan forgiveness for the expenses4 7#h7 ,treatment of forgiven amounts 7,a7 ,in general ,section #ajh7;a77#a7 of the ,internal ,revenue ,code of #aihf is amended by striking or at the end of subparagraph 7,d71 by striking the period at the end of subparagraph 7,e77ii7 and inserting 1 or1 and by adding at the end the following new subparagraph3 7,f7 the indebtedness discharged is a covered loan 7as defined in section #b7;a7 of the ,,restart ,act7 discharged under section #b7;j7 of such ,act4 4 7,b7 ,reduction of tax attributes ,section #ajh7;b77#a7 of such ,code is amended by striking or 7,c7 and inserting 1 7,c71 or 7,f7 7after application of subsection 7j77i774 7,c7 ,limitation ,section #ajh of such ,code is amended by adding at the end the following new subsection3 7j7 ,special rules for discharges of covered loans 7#a7 ,inclusion of excess amounts 7,a7 ,in general ,in the case of any taxpayer to which subsection 7a77#a77;,f7 applies1 the gross income of such taxpayer for any taxable year in the applicable period shall be increased by the product of-- 7i7 #bj percent1 and 7ii7 so much of the amount excluded under subsection 7a77#a77;,f7 as exceeds #bej1jjj4 7,b7 ,applicable period ,for purposes of subparagraph 7,a71 the term applicable period means the #e taxable-year period beginning with the taxable year in which the discharge occurs4 7#b7 ,application to tax attributes ,for purposes of applying subsection 7b71 the amount taken into account as excluded from income under subsection 7a77#a77;,f7 shall not exceed #bej1jjj4 4 7,d7 ,effective date ,the amendments made by this paragraph shall apply to discharges of indebtedness after the date of the enactment of this ,act4 7#i7 ,coordination with employee retention tax credit ,section #bcja7;g7 of the ,,cares ,act 7,public ,law #aaf-acf7 is amended to read as follows3 7g7 ,election ,to not take certain wages into account 7#a7 ,in general ,this section shall not apply to qualified wages paid by an eligible employer with respect to which such employer makes an election 7at such time and in such manner as the ,secretary may prescribe7 to have this section not apply to such wages4 7#b7 ,coordination with ,,restart loans ,the ,secretary1 in consultation with the ,administrator of the ,small ,business ,administration1 shall issue guidance providing that payroll costs paid or incurred during the covered period shall not fail to be treated as qualified wages under this section by reason of an election under paragraph 7#a7 to the extent that a covered loan of the eligible employer is not forgiven by reason of a decision under section #b7;j7 of the ,,restart ,act4 ,terms used in the preceding sentence which are also used in section #c of such ,act shall have the same meaning as when used in such section4 4 7k7 ,special rules for seasonal and new businesses 7#a7 ,in general ,the ,administrator and the ,secretary shall develop special rules and procedures for eligibility1 calculation of full-time employees1 loan terms1 and loan forgiveness for-- 7,a7 covered loans made to eligible recipients that are seasonal that do not have sufficient revenue to fully benefit from assistance provided under this section2 and 7,b7 covered loans made to eligible recipients formed after ,january #a1 #bjai1 that do not have sufficient revenue to fully benefit from assistance provided under this section4 7#b7 ,loan amount ,the ,administrator and the ,secretary shall develop terms with respect to the loan amount of a covered loan for the eligible recipients described in paragraph 7#a7 to provide consistent support to those eligible recipients relative to an existing or a non-seasonal eligible recipient4 7#c7 ,prohibition ,an eligible recipient formed after ,january #a1 #bjai1 shall not be eligible for loan forgiveness under this section4 7l7 ,transparency 7#a7 ,reporting ,the ,administrator shall collect and publish information in searchable and downloadable format on eligible recipients of covered loans1 including-- 7,a7 the name of each eligible recipient with not fewer than #ej full-time employees that received a covered loan1 which shall be published on a monthly basis2 7,b7 aggregate demographic information of applicants that applied and applicants that were approved for a covered loan1 which shall be published on a weekly basis2 7,c7 the number of loan applications received and total loan amount requested1 the number of loan applications awaiting disposition and the total loan amount awaiting disposition1 the number of loan applications rejected and the total loan amount rejected1 and the number of loan applications approved and the total loan amount approved by each lender1 which shall be published on a weekly basis2 7,d7 aggregate total loan volume approved broken down by the applicable ,north ,american ,industry ,classification ,system code and by ,state1 which shall be published on a weekly basis2 7,e7 details on the total number of employees1 loan size1 applicable ,north ,american ,industry ,classification ,system code1 and headquarters location of each eligible recipient of a covered loan1 which shall be published on a monthly basis2 and 7,f7 the name of and loan amount forgiven for each eligible recipient of a covered loan with not fewer than #ej full-time employees1 with aggregate loan amount forgiveness data provided for all eligible recipients of covered loans1 which shall be published in a final report not later than ,december #ca1 #bjbb4 7#b7 ,multiple applications ,to the extent possible1 the ,administrator should endeavor to de-duplicate multiple applications for a covered loan submitted by the same applicant to different lenders for purposes of public reporting4 7#c7 ,information from borrowers ,the ,administrator shall require lenders of covered loans to collect information from eligible recipients and submit the information to the ,administrator for the purpose of meeting the reporting requirements in paragraph 7#a74 7m7 ,separation of funds and bankruptcy treatment 7#a7 ,separation of funds ,an eligible recipient of a covered loan shall-- 7,a7 separately account for1 and not commingle with other funds1 the proceeds of the covered loan2 and 7,b7 account in detail for the use of the proceeds4 7#b7 ,bankruptcy treatment 7,a7 ,in general ,if an eligible recipient of a covered loan is a debtor in a case under chapter #g or #ac of title #aa1 ,united ,states ,code1 and the covered loan is still outstanding on the date of the commencement of the case-- 7i7 any interest of the eligible recipient in the proceeds of the covered loan shall not be included in the property of the estate2 and 7ii7 the amount of the proceeds of the covered loan that were not expended on allowable expenses described in subsection 7g77#b7 or forgiven under subjection 7j7 shall be transferred to the ,federal ,government4 7,b7 ,unrecovered amounts on covered loans ,nothing in subparagraph 7,a7 shall preclude the ,federal ,government from pursuing a claim in a case under chapter #g or #ac of title #aa1 ,united ,states ,code1 with respect to the difference1 if any1 between the amount due to the ,federal ,government on a covered loan and the amount that was transferred under subparagraph 7,a77ii74 7n7 ,authorization of appropriations ,there is authorized to be appropriated to the ,administration-- 7#a7 such sums as may be necessary to carry out this section1 to remain available until ,december #ca1 #bjbj2 and 7#b7 #aej1jjj1jjj1 to remain available until expended1 for administrative purposes to update technologies to allow for digital case management1 electronic submissions1 and increased telecommunications related to the program under this section4