,,ii #aagth ,,congress #b;d ,session ,s4 #ddga ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,june #bc1 #bjbb,mr4 ,cardin introduced the following bill2 which was read twice and referred to the ,committee on ,small ,business and ,entrepreneurship ,a ,,bill ,to provide relief for small businesses suffering extraordinary losses due to the ,,covid-#ai pandemic4 #a4 ,short title ,this ,act may be cited as the ,hardest-,hit ,small ,business ,,covid ,relief ,act of #bjbb4 #b4 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title4,sec4 #b4 ,table of contents4,sec4 #c4 ,definitions4,sec4 #d4 ,hardest-,hit ,small ,business ,relief ,fund4,sec4 #e4 ,grants from ,fund4,sec4 #f4 ,data transparency and customer service4,sec4 #g4 ,business identifiers4,sec4 #h4 ,oversight and audits4,sec4 #i4 ,gross receipts4,sec4 #aj4 ,rules4,sec4 #aa4 ,transfer of funds4 #c4 ,definitions ,in this ,act3 7#a7 ,administrator ,the term ,administrator means the ,administrator of the ,small ,business ,administration4 7#b7 ,covered mortgage obligation2 covered rent obligation2 covered supplier cost2 covered utility payment2 covered worker protection expenditure ,the terms covered mortgage obligation1 covered rent obligation1 covered supplier cost1 covered utility payment1 and covered worker protection expenditure have the meanings given the terms in section #g;,a7a7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcfm7a774 7#c7 ,covered period ,the term covered period means the period-- 7,a7 beginning on ,march #a1 #bjbj2 and 7,b7 ending on ,march #ca1 #bjbc1 or a date to be determined by the ,administrator that is not later than #b years after the date of enactment of this ,act4 7#d7 ,eligible entity ,the term eligible entity-- 7,a7 means a small business concern 7as defined in section #c of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcb77 that has experienced substantial losses resulting from the ,,covid-#ai pandemic1 as determined by the ,administrator2 7,b7 may include-- 7i7 a ,tribally-owned concern2 7ii7 a sole proprietorship2 7iii7 an independent contractor2 and 7iv7 an eligible self-employed individual2 and 7,c7 does not include-- 7i7 an entity described in subparagraph 7,a7 that-- 7,i7 is a ,state or local government-owned or operated business2 and 7,,ii7 has a pending application for or has received a grant under-- 7aa7 section #cbd of the ,economic ,aid to ,hard-,hit ,small ,businesses1 ,nonprofits1 and ,venues ,act 7#ae ,u4,s4,c4 #ijji;a72 or 7bb7 section #ejjc of the ,american ,rescue ,plan ,act of #bjba 7#ae ,u4,s4,c4 #ijji;c72 7ii7 a publicly-traded company2 7iii7 an entity that is owned or operated by a private equity fund2 7iv7 an entity that was not in operation before ,march #a1 #bjbj2 or 7v7 an entity that is not in operation on1 and does not intend to reopen on or before the date that is #ahj days after1 the date on which the entity applies for a grant4 7#e7 ,eligible self-employed individual ,the term eligible self-employed individual has the meaning given the term in section #gjjb7;b7 of the ,families ,first ,coronavirus ,response ,act 7#bf ,u4,s4,c4 #adja note74 7#f7 ,exchange2 issuer2 security ,the terms exchange1 issuer1 and security have the meanings given those terms in section #c7;a7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;c7a774 7#g7 ,fund ,the term ,fund means the ,hardest-,hit ,small ,business ,relief ,fund established under section #d7;a74 7#h7 ,national securities exchange ,the term national securities exchange means an exchange that is registered in accordance with section #f of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;f74 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 term shall not include-- 7,a7 qualified wages 7as defined in subsection 7c77#c7 of section #bcja of the ,,cares ,act 7#bf ,u4,s4,c4 #caaa note77 taken into account in determining the credit allowed under such section #bcja2 or 7,b7 premiums taken into account in determining the credit allowed under section #fdcb of the ,internal ,revenue ,code of #aihf4 7#aj7 ,private equity fund ,the term private equity fund has the meaning given the term in section #bbe4agc7;a7 of title #ab1 ,code of ,federal ,regulations1 or any successor regulation4 7#aa7 ,publicly-traded company ,the term publicly-traded company means an entity that is majority owned or controlled by an entity that is an issuer1 the securities of which are listed on a national securities exchange4 7#ab7 ,tribally-owned concern ,the term ,tribally-owned concern has the meaning given the term in section #abd4c of title #ac1 ,code of ,federal ,regulations1 or any successor regulation4 #d4 ,hardest-,hit ,small ,business ,relief ,fund 7a7 ,establishment ,there is established in the ,treasury of the ,united ,states a fund to be known as the ,hardest-,hit ,small ,business ,relief ,fund4 7b7 ,funding 7#a7 ,in general ,the ,fund shall consist of-- 7,a7 amounts transferred under section #aa2 and 7,b7 other amount appropriated to the ,fund4 7#b7 ,administrative expenses ,of the amounts transferred under section #aa1 #hj1jjj1jjj shall be for administrative expenses to carry out the program under this ,act1 of which #bj1jjj1jjj shall be for the ,inspector ,general of the ,small ,business ,administration for necessary expenses of the ,office of ,inspector ,general4 #e4 ,grants from ,fund 7a7 ,in general ,except as provided in subsection 7c77#d71 the ,administrator shall make grants under this section to eligible entities in the order in which applications are received by the ,administrator4 7b7 ,applications 7#a7 ,certification ,an eligible entity applying for a grant under this section shall make a good faith certification that-- 7,a7 the uncertainty of current economic conditions makes necessary the request for the grant to support the ongoing operations of the eligible entity2 7,b7 the eligible entity does not have a pending application for1 and has not received1 a grant under-- 7i7 section #cbd of the ,economic ,aid to ,hard-,hit ,small ,businesses1 ,nonprofits1 and ,venues ,act 7#ae ,u4,s4,c4 #ijji;a72 or 7ii7 section #ejjc of the ,american ,rescue ,plan ,act of #bjba 7#ae ,u4,s4,c4 #ijji;c72 and 7,c7 contains any other information that the ,administrator may require4 7#b7 ,verification materials ,the ,administrator shall use tax records and may1 in addition1 use other reliable sources such as certified accounting statements with respect to an applicant for a grant to determine-- 7,a7 the eligibility of the applicant for that grant2 and 7,b7 the amount of that grant to the applicant4 7#c7 ,acceptance of applications ,not later than #ij days after the date of enactment of this ,act1 the ,administrator shall begin accepting applications for grants under this section4 7c7 ,amount of grant 7#a7 ,in general ,subject to paragraph 7#d71 the amount of a grant under this section made to an eligible entity shall be determined based on a formula to be established by the ,administrator4 7#b7 ,reduction ,any formula established by the ,administrator to determine grant amounts under paragraph 7#a7 shall reduce awards by amounts a recipient has received under-- 7,a7 section #aaaj of the ,coronavirus ,aid1 ,relief1 and ,economic ,security ,act 7#ae ,u4,s4,c4 #ijji72 7,b7 section #cca of the ,economic ,aid to ,hard-,hit ,small ,businesses1 ,nonprofits1 and ,venues ,act 7#ae ,u4,s4,c4 #ijji;b72 or 7,c7 section #ejjb of the ,american ,rescue ,plan ,act of #bjba 7#ae ,u4,s4,c4 #ijji note74 7#c7 ,determination of revenue 7,a7 ,in general ,when calculating the revenue of an entity for purposes of determining the eligibility of the entity for a grant under this section or the amount of such a grant1 the ,administrator shall treat as revenue-- 7i7 any amounts received from a covered loan made under paragraph 7#cf7 or 7#cg7 of section #g7;a7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;a771 in #bjbj or #bjba2 and 7ii7 the amount by which the total of all remunerative payments made to an individual1 including any annual salary paid to an employee1 in #bjbj1 or #bjba1 exceeds #bej1jjj4 7,b7 ,administrator authority ,the ,administrator may determine the types of payments and individuals to which subparagraph 7,a77ii7 applies4 7#d7 ,insufficient funding 7,a7 ,in general ,if the ,administrator determines that the amounts made available to carry out this section are insufficient to make grants to each eligible entity in the amount provided under paragraph 7#a71 the ,administrator shall distribute grants to all eligible applicants that submit an application during the #ba-;day period beginning on the date on which the ,administrator begins accepting those applications on either-- 7i7 a pro rata basis2 or 7ii7 based on a formula to be determined by the ,administrator4 7,b7 ,reserving funds ,nothing in subparagraph 7,a7 shall prevent the ,administrator from-- 7i7 reserving funding for applicants that may be determined to be eligible for a grant upon reconsideration2 or 7ii7 making partial awards to eligible entities on a preliminary basis until the amount of funding required to fund grants to all eligible entities that submit applications is established upon the completion of the reconsideration process4 7d7 ,use of funds ,during the covered period1 an eligible entity that receives a grant under this section may use amounts received for the following expenses incurred as a direct result of1 or during1 the ,,covid-#ai pandemic3 7#a7 ,payroll costs4 7#b7 ,payments to independent contractors1 as reported on ,form #ajii-,,misc1 except that each payment under this paragraph shall be in an amount that is not more than #ajj1jjj4 7#c7 ,scheduled payments of interest or principal on any covered mortgage obligation 7which may not include any prepayment of principal on a covered mortgage obligation74 7#d7 ,payments on any covered rent obligation and common area maintenance charges under a lease agreement4 7#e7 ,covered utility payments4 7#f7 ,maintenance expenses4 7#g7 ,covered worker protection expenditures4 7#h7 ,supplies1 including protective equipment and cleaning materials4 7#i7 ,expenses that were within the scope of the normal business practice of the eligible entity before the covered period4 7#aj7 ,covered supplier costs4 7#aa7 ,operational expenses4 7#ab7 ,paid sick leave4 7#ac7 ,any other expenses that the ,administrator determines to be essential to maintaining the eligible entity4 7e7 ,returning funds ,if an eligible entity that receives a grant under this section fails to use all of the amounts received under the grant on or before the last day of the covered period or permanently ceases operations on or before the last day of the covered period1 the eligible entity shall return to the ,treasury any funds that the eligible entity did not use for the allowable expenses under subsection 7d74 #f4 ,data transparency and customer service ,the ,administrator shall-- 7#a7 on a biweekly basis until the amounts made available under this ,act are fully expended1 publish data that shows1 for the period beginning on the date of enactment of this ,act and ending on the date on which the information is published-- 7,a7 with respect to applications for grants under this ,act1 the number of those applications-- 7i7 that the ,administrator has received2 7ii7 that the ,administrator has reviewed or is in the process of reviewing2 and 7iii7 with respect to which the ,administrator has made a decision2 and 7,b7 the number and dollar amount of grants-- 7i7 that are awarded2 and 7ii7 that are disbursed2 7#b7 on a weekly basis until the amounts made available under this ,act are fully expended1 publish1 with respect to the period beginning on the date of enactment of this ,act1 and ending on the date on which the information is published-- 7,a7 with respect to each entity to which a grant under this ,act has been made-- 7i7 the name of the entity1 including the name under which the entity does business if that name is different from the name of the entity2 7ii7 the address of the entity2 and 7iii7 if the physical location for the eligible business listed on the application is different from the address of the entity1 the address of such physical location2 and 7,b7 the amount of each grant described in paragraph 7#a72 and 7#c7 with respect to an applicant that applies for a grant under this ,act and is denied by the ,administrator-- 7,a7 make available to the applicant a brief explanation identifying the reason why the ,administrator denied the application of the applicant1 which shall include1 where applicable1 a citation to the statutory1 regulatory1 or guidance provision with which the applicant failed to comply and that was the basis for the denial2 and 7,b7 establish a reconsideration process through which the applicant may-- 7i7 submit to the ,administrator additional clarifying information the applicant determines to be relevant to whether the applicant is eligible for the grant2 and 7ii7 receive a second review of the application submitted by the applicant4 #g4 ,business identifiers ,in accepting applications for grants under this ,act1 the ,administrator shall prioritize the ability of each applicant to use the existing business identifier of the applicant over requiring other forms of registration or identification that may not be common to the industry of the applicant1 which may impose additional burdens on the applicant4 #h4 ,oversight and audits 7a7 ,in general ,the ,administrator shall institute an oversight and audit plan with respect to entities receiving grants under this ,act1 which shall include-- 7#a7 documentation requirements that are consistent with the eligibility and other requirements1 including by requiring an entity that receives a grant under this ,act to retain records that demonstrate compliance with those requirements2 and 7#b7 reviews of the use by entities of grants under this ,act to ensure compliance with the requirements under this ,act1 which shall include-- 7,a7 the review and audit1 by the ,administrator1 of grants made under this ,act2 and 7,b7 in the case of fraud or other material noncompliance with respect to a grant made under this ,act-- 7i7 a requirement that the applicable entity repay to the ,administrator the amount of the misspent funds2 or 7ii7 the pursuit1 by the ,administrator1 of legal action to collect the misspent funds4 7b7 ,submission of plan ,not later than #ij days after the date of enactment of this ,act1 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 the plan required under subsection 7a71 which shall describe-- 7#a7 the policies and procedures of the ,administrator for conducting oversight and audits of grants under this ,act2 and 7#b7 the metrics that the ,administrator will use to determine which grants will be audited under that plan4 7c7 ,reports ,not later than #ij days after the date of enactment of this ,act1 once every #cj days thereafter until the date that is #ahj days after the date on which all amounts made available to carry out this ,act have been fully expended1 and upon request thereafter1 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 ,administrator under this section1 which shall include-- 7#a7 the total number of grants under this ,act approved and disbursed2 7#b7 the total amount of each grant under this ,act received by each entity that received such a payment2 7#c7 the number of active investigations and audits of grants made under this ,act2 7#d7 the number of completed reviews and audits of grants under this ,act1 including a description of-- 7,a7 any findings of fraud or other material noncompliance2 7,b7 questionable costs identified by the ,administrator2 and 7,c7 the total amount recouped from ineligible recipients2 and 7#e7 a description of any substantial changes made to the plan required under subsection 7a74 #i4 ,gross receipts ,the ,administrator may authorize applicants for grants under this ,act to measure annual gross receipts using either the calendar year or fiscal year4 #aj4 ,rules ,not later than #fj days after the date of enactment of this ,act1 the ,administrator shall issue rules to carry out this ,act1 without regard to the notice requirements under section #eec7;b7 of title #e1 ,united ,states ,code4 #aa4 ,transfer of funds 7a7 ,in general ,the unobligated balances of amounts made available under the heading ,small ,business ,administration--,business ,loans ,program ,account1 ,,cares ,act in section #cbc7;d77#a77;,a7 of division ,n of the ,consolidated ,appropriations ,act1 #bjba 7,public ,law #aaf-bfj2 #acd ,stat4 #bjai7 for the cost of guaranteed loans as authorized under paragraphs 7#cf7 and 7#cg7 of section #g7;a7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;a77 shall be transferred to the ,fund4 7b7 ,,cares ,act ,the unexpended balances of amounts made available under the heading ,small ,business ,administration--,business ,loans ,program ,account1 ,,cares ,act in section #aajg7;a77#a7 of the ,coronavirus ,aid1 ,relief1 and ,economic ,security ,act 7#ae ,u4,s4,c4 #ijjf7;a77#a77 shall be transferred to the ,fund4 7c7 ,shuttered venues ,the unobligated balances in the account appropriated under the heading ,small ,business ,administration--,shuttered ,venue ,operators shall be transferred to the ,fund4 7d7 ,american ,rescue ,plan ,act 7#a7 ,in general ,if the ,administrator submits to ,congress a certification described in paragraph 7#b71 effective on the date of the certification1 the unobligated balances of amounts made available under section #ejjb7;b7 of the ,american ,rescue ,plan ,act of #bjba 7#ae ,u4,s4,c4 #ijji note71 including any of such balances that were transferred under section #ijjjg7;b77#b7 of the ,infrastructure ,investment and ,jobs ,act 7,public ,law #aag-eh2 #ace ,stat4 #acdg71 shall be transferred to the ,fund4 7#b7 ,certification of sufficiency of funds for ,,eidl program ,a certification described in this paragraph is a certification that1 if the balances described in paragraph 7#a7 are transferred1 the ,administrator will still have sufficient funds to make loans described in section #g7;b77#b7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;b77#b77 to each entity described in section #aaaj7;b7 of the ,,cares ,act 7#ae ,u4,s4,c4 #ijji7;b77 that submitted-- 7,a7 an application for such a loan on or before ,december #ca1 #bjba2 or 7,b7 a request for a modification1 rehearing1 or appeal in connection with an application for such a loan on or before ,may #f1 #bjbb4