HR 3496 — Northern Mariana Islands Small Business Access Act

changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

 SMALL BUSINESS ACT

 * * * * * * *
 Sec. 7. (a) Loans to Small Business Concerns; Allowable 
Purposes; Qualified Business; Restrictions and Limitations.--
The Administration is empowered to the extent and in such 
amounts as provided in advance in appropriation Acts to make 
loans for plant acquisition, construction, conversion, or 
expansion, including the acquisition of land, material, 
supplies, equipment, and working capital, and to make loans to 
any qualified small business concern, including those owned by 
qualified Indian tribes, for purposes of this Act. Such 
financings may be made either directly or in cooperation with 
banks or other financial institutions through agreements to 
participate on an immediate or deferred (guaranteed) basis. 
These powers shall be subject, however, to the following 
restrictions, limitations, and provisions:
 (1) In general.--
 (A) Credit elsewhere.--
 (i) In general.--The Administrator 
 has the authority to direct, and 
 conduct oversight for, the methods by 
 which lenders determine whether a 
 borrower is able to obtain credit 
 elsewhere. No financial assistance 
 shall be extended pursuant to this 
 subsection if the applicant can obtain 
 credit elsewhere. No immediate 
 participation may be purchased unless 
 it is shown that a deferred 
 participation is not available; and no 
 direct financing may be made unless it 
 is shown that a participation is not 
 available.
 (ii) Liquidity.--On and after October 
 1, 2015, the Administrator may not 
 guarantee a loan under this subsection 
 if the lender determines that the 
 borrower is unable to obtain credit 
 elsewhere solely because the liquidity 
 of the lender depends upon the 
 guaranteed portion of the loan being 
 sold on the secondary market.
 (B) Background checks.--Prior to the approval 
 of any loan made pursuant to this subsection, 
 or section 503 of the Small Business Investment 
 Act of 1958, the Administrator may verify the 
 applicant's criminal background, or lack 
 thereof, through the best available means, 
 including, if possible, use of the National 
 Crime Information Center computer system at the 
 Federal Bureau of Investigation.
 (C) Lending limits of lenders.--On and after 
 October 1, 2015, the Administrator may not 
 guarantee a loan under this subsection if the 
 sole purpose for requesting the guarantee is to 
 allow the lender to exceed the legal lending 
 limit of the lender.
 (2) Level of participation in guaranteed loans.--
 (A) In general.--Except as provided in 
 subparagraphs (B), (D), (E), and (F), in an 
 agreement to participate in a loan on a 
 deferred basis under this subsection (including 
 a loan made under the Preferred Lenders 
 Program), such participation by the 
 Administration shall be equal to--
 (i) 75 percent of the balance of the 
 financing outstanding at the time of 
 disbursement of the loan, if such 
 balance exceeds $150,000; or
 (ii) 85 percent of the balance of the 
 financing outstanding at the time of 
 disbursement of the loan, if such 
 balance is less than or equal to 
 $150,000.
 (B) Reduced participation upon request.--
 (i) In general.--The guarantee 
 percentage specified by subparagraph 
 (A) for any loan under this subsection 
 may be reduced upon the request of the 
 participating lender.
 (ii) Prohibition.--The Administration 
 shall not use the guarantee percentage 
 requested by a participating lender 
 under clause (i) as a criterion for 
 establishing priorities in approving 
 loan guarantee requests under this 
 subsection.
 (C) Interest rate under preferred lenders 
 program.--
 (i) In general.--The maximum interest 
 rate for a loan guaranteed under the 
 Preferred Lenders Program shall not 
 exceed the maximum interest rate, as 
 determined by the Administration, 
 applicable to other loans guaranteed 
 under this subsection.
 (ii) Export-import bank lenders.--Any 
 lender that is participating in the 
 Delegated Authority Lender Program of 
 the Export-Import Bank of the United 
 States (or any successor to the 
 Program) shall be eligible to 
 participate in the Preferred Lenders 
 Program.
 (iii) Preferred lenders program 
 defined.--For purposes of this 
 subparagraph, the term ``Preferred 
 Lenders Program'' means any program 
 established by the Administrator, as 
 authorized under the proviso in section 
 5(b)(7), under which a written 
 agreement between the lender and the 
 Administration delegates to the 
 lender--
 (I) complete authority to 
 make and close loans with a 
 guarantee from the 
 Administration without 
 obtaining the prior specific 
 approval of the Administration; 
 and
 (II) complete authority to 
 service and liquidate such 
 loans without obtaining the 
 prior specific approval of the 
 Administration for routine 
 servicing and liquidation 
 activities, but shall not take 
 any actions creating an actual 
 or apparent conflict of 
 interest.
 (D) Participation under export working 
 capital program.--In an agreement to 
 participate in a loan on a deferred basis under 
 the Export Working Capital Program established 
 pursuant to paragraph (14)(A), such 
 participation by the Administration shall be 90 
 percent.
 (E) Participation in international trade 
 loan.--In an agreement to participate in a loan 
 on a deferred basis under paragraph (16), the 
 participation by the Administration may not 
 exceed 90 percent.
 (F) Participation in the paycheck protection 
 program.--In an agreement to participate in a 
 loan on a deferred basis under paragraph (36), 
 the participation by the Administration shall 
 be 100 percent.
 (3) No loan shall be made under this subsection--
 (A) if the total amount outstanding and 
 committed (by participation or otherwise) to 
 the borrower from the business loan and 
 investment fund established by this Act would 
 exceed $3,750,000 (or if the gross loan amount 
 would exceed $5,000,000), except as provided in 
 subparagraph (B);
 (B) if the total amount outstanding and 
 committed (on a deferred basis) solely for the 
 purposes provided in paragraph (16) to the 
 borrower from the business loan and investment 
 fund established by this Act would exceed 
 $4,500,000 (or if the gross loan amount would 
 exceed $5,000,000), of which not more than 
 $4,000,000 may be used for working capital, 
 supplies, or financings under section 7(a)(14) 
 for export purposes; and
 (C) if effected either directly or in 
 cooperation with banks or other lending 
 institutions through agreements to participate 
 on an immediate basis if the amount would 
 exceed $350,000.
 (4) Interest rates and prepayment charges.--
 (A) Interest rates.--Notwithstanding the 
 provisions of the constitution of any State or 
 the laws of any State limiting the rate or 
 amount of interest which may be charged, taken, 
 received, or reserved, the maximum legal rate 
 of interest on any financing made on a deferred 
 basis pursuant to this subsection shall not 
 exceed a rate prescribed by the Administration, 
 and the rate of interest for the 
 Administration's share of any direct or 
 immediate participation loan shall not exceed 
 the current average market yield on outstanding 
 marketable obligations of the United States 
 with remaining periods to maturity comparable 
 to the average maturities of such loans and 
 adjusted to the nearest one-eighth of 1 per 
 centum, and an additional amount as determined 
 by the Administration, but not to exceed 1 per 
 centum per annum: Provided, That for those 
 loans to assist any public or private 
 organization for the handicapped or to assist 
 any handicapped individual as provided in 
 paragraph (10) of this subsection, the interest 
 rate shall be 3 per centum per annum.
 (B) Payment of accrued interest.--
 (i) In general.--Any bank or other 
 lending institution making a claim for 
 payment on the guaranteed portion of a 
 loan made under this subsection shall 
 be paid the accrued interest due on the 
 loan from the earliest date of default 
 to the date of payment of the claim at 
 a rate not to exceed the rate of 
 interest on the loan on the date of 
 default, minus one percent.
 (ii) Loans sold on secondary 
 market.--If a loan described in clause 
 (i) is sold on the secondary market, 
 the amount of interest paid to a bank 
 or other lending institution described 
 in that clause from the earliest date 
 of default to the date of payment of 
 the claim shall be no more than the 
 agreed upon rate, minus one percent.
 (iii) Applicability.--Clauses (i) and 
 (ii) shall not apply to loans made on 
 or after October 1, 2000.
 (C) Prepayment charges.--
 (i) In general.--A borrower who 
 prepays any loan guaranteed under this 
 subsection shall remit to the 
 Administration a subsidy recoupment fee 
 calculated in accordance with clause 
 (ii) if--
 (I) the loan is for a term of 
 not less than 15 years;
 (II) the prepayment is 
 voluntary;
 (III) the amount of 
 prepayment in any calendar year 
 is more than 25 percent of the 
 outstanding balance of the 
 loan; and
 (IV) the prepayment is made 
 within the first 3 years after 
 disbursement of the loan 
 proceeds.
 (ii) Subsidy recoupment fee.--The 
 subsidy recoupment fee charged under 
 clause (i) shall be--
 (I) 5 percent of the amount 
 of prepayment, if the borrower 
 prepays during the first year 
 after disbursement;
 (II) 3 percent of the amount 
 of prepayment, if the borrower 
 prepays during the second year 
 after disbursement; and
 (III) 1 percent of the amount 
 of prepayment, if the borrower 
 prepays during the third year 
 after disbursement.
 (5) No such loans including renewals and extensions 
 thereof may be made for a period or periods exceeding 
 twenty-five years, except that such portion of a loan 
 made for the purpose of acquiring real property or 
 constructing, converting, or expanding facilities may 
 have a maturity of twenty-five years plus such 
 additional period as is estimated may be required to 
 complete such construction, conversion, or expansion.
 (6) All loans made under this subsection shall be of 
 such sound value or so secured as reasonably to assure 
 repayment: Provided, however, That--
 (A) for loans to assist any public or private 
 organization or to assist any handicapped 
 individual as provided in paragraph (10) of 
 this subsection any reasonable doubt shall be 
 resolved in favor of the applicant;
 (B) recognizing that greater risk may be 
 associated with loans for energy measures as 
 provided in paragraph (12) of this subsection, 
 factors in determining ``sound value'' shall 
 include, but not be limited to, quality of the 
 product or service; technical qualifications of 
 the applicant or his employees; sales 
 projections; and the financial status of the 
 business concern: Provided further, That such 
 status need not be as sound as that required 
 for general loans under this subsection; and
 On that portion of the loan used to refinance existing 
 indebtedness held by a bank or other lending 
 institution, the Administration shall limit the amount 
 of deferred participation to 80 per centum of the 
 amount of the loan at the time of disbursement: 
 Provided further, That any authority conferred by this 
 subparagraph on the Administration shall be exercised 
 solely by the Administration and shall not be delegated 
 to other than Administration personnel.
 (7)(A) In general.--The Administrator may defer 
 payments on the principal and interest of such loans 
 for a grace period and use such other methods as it 
 deems necessary and appropriate to assure the 
 successful establishment and operation of such concern.
 (B) Deferral requirements.--With respect to a 
 deferral provided under this paragraph, the 
 Administrator may allow lenders under this 
 subsection--
 (i) to provide full payment deferment 
 relief (including payment of principal 
 and interest) for a period of not more 
 than 1 year; and
 (ii) to provide an additional 
 deferment period if the borrower 
 provides documentation justifying such 
 additional deferment.
 (C) Secondary market.--
 (i) In general.--Except as provided 
 in clause (ii), if an investor declines 
 to approve a deferral or additional 
 deferment requested by a lender under 
 subparagraph (B), the Administrator 
 shall exercise the authority to 
 purchase the loan so that the borrower 
 may receive full payment deferment 
 relief (including payment of principal 
 and interest) or an additional 
 deferment as described in subparagraph 
 (B).
 (ii) Exception.--If, in a fiscal 
 year, the Administrator determines that 
 the cost of implementing clause (i) is 
 greater than zero, the Administrator 
 shall not implement that clause.
 (8) The Administration may make loans under this 
 subsection to small business concerns owned and 
 controlled by disabled veterans (as defined in section 
 4211(3) of title 38, United States Code).
 (9) The Administration may provide loans under this 
 subsection to finance residential or commercial 
 construction or rehabilitation for sale: Provided, 
 however, That such loans shall not be used primarily 
 for the acquisition of land.
 (10) The Administration may provide guaranteed loans 
 under this subsection to assist any public or private 
 organization for the handicapped or to assist any 
 handicapped individual, including service-disabled 
 veterans, in establishing, acquiring, or operating a 
 small business concern.
 (11) The Administration may provide loans under this 
 subsection to any small business concern, or to any 
 qualified person seeking to establish such a concern 
 when it determines that such loan will further the 
 policies established in section 2(c) of this Act, with 
 particular emphasis on the preservation or 
 establishment of small business concerns located in 
 urban or rural areas with high proportions of 
 unemployed or low-income individuals or owned by low-
 income individuals.
 (12)(A) The Administration may provide loans under 
 this subsection to assist any small business concern, 
 including start up, to enable such concern to design 
 architecturally or engineer, manufacture, distribute, 
 market, install, or service energy measures: Provided, 
 however, That such loan proceeds shall not be used 
 primarily for research and development.
 (b) The Administration may provide deferred participation 
loans under this subsection to finance the planning, design, or 
installation of pollution control facilities for the purposes 
set forth in section 404 of the Small Business Investment Act 
of 1958. Notwithstanding the limitation expressed in paragraph 
(3) of this subsection, a loan made under this paragraph may 
not result in a total amount outstanding and committed to a 
borrower from the business loan and investment fund of more 
than $1,000,000.
 (13) The Administration may provide financing under 
 this subsection to State and local development 
 companies for the purposes of, and subject to the 
 restrictions in, title V of the Small Business 
 Investment Act of 1958.
 (14) Export working capital program.--
 (A) In general.--The Administrator may 
 provide extensions of credit, standby letters 
 of credit, revolving lines of credit for export 
 purposes, and other financing to enable small 
 business concerns, including small business 
 export trading companies and small business 
 export management companies, to develop foreign 
 markets. A bank or participating lending 
 institution may establish the rate of interest 
 on such financings as may be legal and 
 reasonable.
 (B) Terms.--
 (i) Loan amount.--The Administrator 
 may not guarantee a loan under this 
 paragraph of more than $5,000,000.
 (ii) Fees.--
 (I) In general.--For a loan 
 under this paragraph, the 
 Administrator shall collect the 
 fee assessed under paragraph 
 (23) not more frequently than 
 once each year.
 (II) Untapped credit.--The 
 Administrator may not assess a 
 fee on capital that is not 
 accessed by the small business 
 concern.
 (C) Considerations.--When considering loan or 
 guarantee applications, the Administration 
 shall give weight to export-related benefits, 
 including opening new markets for United States 
 goods and services abroad and encouraging the 
 involvement of small businesses, including 
 agricultural concerns, in the export market.
 (D) Marketing.--The Administrator shall 
 aggressively market its export financing 
 program to small businesses.
 (15)(A) The Administration may guarantee loans under 
 this subsection--
 (i) to qualified employee trusts with respect 
 to a small business concern for the purpose of 
 purchasing, and for any transaction costs 
 associated with purchasing, stock of the 
 concern under a plan approved by the 
 Administrator which, when carried out, results 
 in the qualified employee trust owning at least 
 51 per centum of the stock of the concern; and
 (ii) to a small business concern under a plan 
 approved by the Administrator, if the proceeds 
 from the loan are only used to make a loan to a 
 qualified employee trust, and for any 
 transaction costs associated with making that 
 loan, that results in the qualified employee 
 trust owning at least 51 percent of the small 
 business concern.
 (B) The plan requiring the Administrator's approval 
 under subparagraph (A) shall be submitted to the 
 Administration by the trustee of such trust or by the 
 small business concern with its application for the 
 guarantee. Such plan shall include an agreement with 
 the Administrator which is binding on such trust and on 
 the small business concern and which provides that--
 (i) not later than the date the loan 
 guaranteed under subparagraph (A) is repaid (or 
 as soon thereafter as is consistent with the 
 requirements of section 401(a) of the Internal 
 Revenue Code of 1954), at least 51 per centum 
 of the total stock of such concern shall be 
 allocated to the accounts of at least 51 per 
 centum of the employees of such concern who are 
 entitled to share in such allocation,
 (ii) there will be periodic reviews of the 
 role in the management of such concern of 
 employees to whose accounts stock is allocated,
 (iii) there will be adequate management to 
 assure management expertise and continuity, and
 (iv) with respect to a loan made to a trust, 
 or to a cooperative in accordance with 
 paragraph (35)--
 (I) a seller of the small business 
 concern may remain involved as an 
 officer, director, or key employee of 
 the small business concern when a 
 qualified employee trust or cooperative 
 has acquired 100 percent of ownership 
 of the small business concern; and
 (II) any seller of the small business 
 concern who remains as an owner of the 
 small business concern, regardless of 
 the percentage of ownership interest, 
 shall be required to provide a personal 
 guarantee by the Administration.
 (C) In determining whether to guarantee any loan 
 under this paragraph, the individual business 
 experience or personal assets of employee-owners shall 
 not be used as criteria, except inasmuch as certain 
 employee-owners may assume managerial responsibilities, 
 in which case business experience may be considered.
 (D) For purposes of this paragraph, a corporation 
 which is controlled by any other person shall be 
 treated as a small business concern if such corporation 
 would, after the plan described in subparagraph (B) is 
 carried out, be treated as a small business concern.
 (E) The Administration shall compile a separate list 
 of applications for assistance under this paragraph, 
 indicating which applications were accepted and which 
 were denied, and shall report periodically to the 
 Congress on the status of employee-owned firms assisted 
 by the Administration, which shall include--
 (i) the total number of loans made to 
 employee-owned business concerns that were 
 guaranteed by the Administrator under section 
 7(a) of the Small Business Act (15 U.S.C. 
 636(a)) or section 502 of the Small Business 
 Investment Act of 1958 (15 U.S.C. 696), 
 including the number of loans made--
 (I) to small business concerns owned 
 and controlled by socially and 
 economically disadvantaged individuals; 
 and
 (II) to cooperatives;
 (ii) the total number of financings made to 
 employee-owned business concerns by companies 
 licensed under section 301(c) of the Small 
 Business Investment Act of 1958 (15 U.S.C. 
 696(c)), including the number of financings 
 made--
 (I) to small business concerns owned 
 and controlled by socially and 
 economically disadvantaged individuals; 
 and
 (II) to cooperatives; and
 (iii) any outreach and educational activities 
 conducted by the Administration with respect to 
 employee-owned business concerns.
 (F) A small business concern that makes a loan to a 
 qualified employee trust under subparagraph (A)(ii) is 
 not required to contain the same terms and conditions 
 as the loan made to the small business concern that is 
 guaranteed by the Administration under such 
 subparagraph.
 (G) With respect to a loan made to a qualified 
 employee trust under this paragraph, or to a 
 cooperative in accordance with paragraph (35), the 
 Administrator may, as deemed appropriate, elect to not 
 require any mandatory equity to be provided by the 
 qualified employee trust or cooperative to make the 
 loan.
 (16) International trade.--
 (A) In general.--If the Administrator 
 determines that a loan guaranteed under this 
 subsection will allow an eligible small 
 business concern that is engaged in or 
 adversely affected by international trade to 
 improve its competitive position, the 
 Administrator may make such loan to assist such 
 concern--
 (i) in the financing of the 
 acquisition, construction, renovation, 
 modernization, improvement, or 
 expansion of productive facilities or 
 equipment to be used in the United 
 States in the production of goods and 
 services involved in international 
 trade;
 (ii) in the refinancing of existing 
 indebtedness that is not structured 
 with reasonable terms and conditions, 
 including any debt that qualifies for 
 refinancing under any other provision 
 of this subsection; or
 (iii) by providing working capital.
 (B) Security.--
 (i) In general.--Except as provided 
 in clause (ii), each loan made under 
 this paragraph shall be secured by a 
 first lien position or first mortgage 
 on the property or equipment financed 
 by the loan or on other assets of the 
 small business concern.
 (ii) Exception.--A loan under this 
 paragraph may be secured by a second 
 lien position on the property or 
 equipment financed by the loan or on 
 other assets of the small business 
 concern, if the Administrator 
 determines the lien provides adequate 
 assurance of the payment of the loan.
 (C) Engaged in international trade.--For 
 purposes of this paragraph, a small business 
 concern is engaged in international trade if, 
 as determined by the Administrator, the small 
 business concern is in a position to expand 
 existing export markets or develop new export 
 markets.
 (D) Adversely affected by international 
 trade.--For purposes of this paragraph, a small 
 business concern is adversely affected by 
 international trade if, as determined by the 
 Administrator, the small business concern--
 (i) is confronting increased 
 competition with foreign firms in the 
 relevant market; and
 (ii) is injured by such competition.
 (E) Findings by certain federal agencies.--
 For purposes of subparagraph (D)(ii) the 
 Administrator shall accept any finding of 
 injury by the International Trade Commission or 
 any finding of injury by the Secretary of 
 Commerce pursuant to chapter 3 of title II of 
 the Trade Act of 1974.
 (F) List of export finance lenders.--
 (i) Publication of list required.--
 The Administrator shall publish an 
 annual list of the banks and 
 participating lending institutions 
 that, during the 1-year period ending 
 on the date of publication of the list, 
 have made loans guaranteed by the 
 Administration under--
 (I) this paragraph;
 (II) paragraph (14); or
 (III) paragraph (34).
 (ii) Availability of list.--The 
 Administrator shall--
 (I) post the list published 
 under clause (i) on the website 
 of the Administration; and
 (II) make the list published 
 under clause (i) available, 
 upon request, at each district 
 office of the Administration.
 (17) The Administration shall authorize lending 
 institutions and other entities in addition to banks to 
 make loans authorized under this subsection.
 (18) Guarantee fees.--
 (A) In general.--With respect to each loan 
 guaranteed under this subsection (other than a 
 loan that is repayable in 1 year or less), the 
 Administration shall collect a guarantee fee, 
 which shall be payable by the participating 
 lender, and may be charged to the borrower, as 
 follows:
 (i) A guarantee fee not to exceed 2 
 percent of the deferred participation 
 share of a total loan amount that is 
 not more than $150,000.
 (ii) A guarantee fee not to exceed 3 
 percent of the deferred participation 
 share of a total loan amount that is 
 more than $150,000, but not more than 
 $700,000.
 (iii) A guarantee fee not to exceed 
 3.5 percent of the deferred 
 participation share of a total loan 
 amount that is more than $700,000.
 (iv) In addition to the fee under 
 clause (iii), a guarantee fee equal to 
 0.25 percent of any portion of the 
 deferred participation share that is 
 more than $1,000,000.
 (B) Retention of certain fees.--Lenders 
 participating in the programs established under 
 this subsection may retain not more than 25 
 percent of a fee collected under subparagraph 
 (A)(i).
 (19)(A) In addition to the Preferred Lenders Program 
 authorized by the proviso in section 5(b)(7), the 
 Administration is authorized to establish a Certified 
 Lenders Program for lenders who establish their 
 knowledge of Administration laws and regulations 
 concerning the guaranteed loan program and their 
 proficiency in program requirements. The designation of 
 a lender as a certified lender shall be suspended or 
 revoked at any time that the Administration determines 
 that the lender is not adhering to its rules and 
 regulations or that the loss experience of the lender 
 is excessive as compared to other lenders, but such 
 suspension or revocation shall not affect any 
 outstanding guarantee.
 (B) In order to encourage all lending institutions 
 and other entities making loans authorized under this 
 subsection to provide loans of $50,000 or less in 
 guarantees to eligible small business loan applicants, 
 the Administration shall develop and allow 
 participating lenders to solely utilize a uniform and 
 simplified loan form for such loans.
 (C) Authority to liquidate loans.--
 (i) In general.--The Administrator 
 may permit lenders participating in the 
 Certified Lenders Program to liquidate 
 loans made with a guarantee from the 
 Administration pursuant to a 
 liquidation plan approved by the 
 Administrator.
 (ii) Automatic approval.--If the 
 Administrator does not approve or deny 
 a request for approval of a liquidation 
 plan within 10 business days of the 
 date on which the request is made (or 
 with respect to any routine liquidation 
 activity under such a plan, within 5 
 business days) such request shall be 
 deemed to be approved.
 (20)(A) The Administration is empowered to make loans 
 either directly or in cooperation with banks or other 
 financial institutions through agreements to 
 participate on an immediate or deferred (guaranteed) 
 basis to small business concerns eligible for 
 assistance under subsection (j)(10) and section 8(a). 
 Such assistance may be provided only if the 
 Administration determines that--
 (i) the type and amount of such assistance 
 requested by such concern is not otherwise 
 available on reasonable terms from other 
 sources;
 (ii) with such assistance such concern has a 
 reasonable prospect for operating soundly and 
 profitably within a reasonable period of time;
 (iii) the proceeds of such assistance will be 
 used within a reasonable time for plant 
 construction, conversion, or expansion, 
 including the acquisition of equipment, 
 facilities, machinery, supplies, or material or 
 to supply such concern with working capital to 
 be used in the manufacture of articles, 
 equipment, supplies, or material for defense or 
 civilian production or as may be necessary to 
 insure a well-balanced national economy; and
 (iv) such assistance is of such sound value 
 as reasonably to assure that the terms under 
 which it is provided will not be breached by 
 the small business concern.
 (B)(i) No loan shall be made under this paragraph if 
 the total amount outstanding and committed (by 
 participation or otherwise) to the borrower would 
 exceed $750,000.
 (ii) Subject to the provisions of clause (i), in 
 agreements to participate in loans on a deferred 
 (guaranteed) basis, participation by the Administration 
 shall be not less than 85 per centum of the balance of 
 the financing outstanding at the time of disbursement.
 (iii) The rate of interest on financings made on a 
 deferred (guaranteed) basis shall be legal and 
 reasonable.
 (iv) Financings made pursuant to this paragraph shall 
 be subject to the following limitations:
 (I) No immediate participation may be 
 purchased unless it is shown that a deferred 
 participation is not available.
 (II) No direct financing may be made unless 
 it is shown that a participation is 
 unavailable.
 (C) A direct loan or the Administration's share of an 
 immediate participation loan made pursuant to this 
 paragraph shall be any secured debt instrument--
 (i) that is subordinated by its terms to all 
 other borrowings of the issuer;
 (ii) the rate of interest on which shall not 
 exceed the current average market yield on 
 outstanding marketable obligations of the 
 United States with remaining periods to 
 maturity comparable to the average maturities 
 of such loan and adjusted to the nearest one-
 eighth of 1 per centum;
 (iii) the term of which is not more than 
 twenty-five years; and
 (iv) the principal on which is amortized at 
 such rate as may be deemed appropriate by the 
 Administration, and the interest on which is 
 payable not less often than annually.
 (21)(A) The Administration may make loans on a guaranteed 
basis under the authority of this subsection--
 (i) to a small business concern that has been (or can 
 reasonably be expected to be) detrimentally affected 
 by--
 (I) the closure (or substantial reduction) of 
 a Department of Defense installation; or
 (II) the termination (or substantial 
 reduction) of a Department of Defense program 
 on which such small business was a prime 
 contractor or subcontractor (or supplier) at 
 any tier; or
 (ii) to a qualified individual or a veteran seeking 
 to establish (or acquire) and operate a small business 
 concern.
 (B) Recognizing that greater risk may be associated with a 
loan to a small business concern described in subparagraph 
(A)(i), any reasonable doubts concerning the firm's proposed 
business plan for transition to nondefense-related markets 
shall be resolved in favor of the loan applicant when making 
any determination regarding the sound value of the proposed 
loan in accordance with paragraph (6).
 (C) Loans pursuant to this paragraph shall be authorized in 
such amounts as provided in advance in appropriation Acts for 
the purposes of loans under this paragraph.
 (D) For purposes of this paragraph a qualified individual 
is--
 (i) a member of the Armed Forces of the United 
 States, honorably discharged from active duty 
 involuntarily or pursuant to a program providing 
 bonuses or other inducements to encourage voluntary 
 separation or early retirement;
 (ii) a civilian employee of the Department of Defense 
 involuntarily separated from Federal service or retired 
 pursuant to a program offering inducements to encourage 
 early retirement; or
 (iii) an employee of a prime contractor, 
 subcontractor, or supplier at any tier of a Department 
 of Defense program whose employment is involuntarily 
 terminated (or voluntarily terminated pursuant to a 
 program offering inducements to encourage voluntary 
 separation or early retirement) due to the termination 
 (or substantial reduction) of a Department of Defense 
 program.
 (E) Job creation and community benefit.--In providing 
 assistance under this paragraph, the Administration 
 shall develop procedures to ensure, to the maximum 
 extent practicable, that such assistance is used for 
 projects that--
 (i) have the greatest potential for--
 (I) creating new jobs for individuals 
 whose employment is involuntarily 
 terminated due to reductions in Federal 
 defense expenditures; or
 (II) preventing the loss of jobs by 
 employees of small business concerns 
 described in subparagraph (A)(i); and
 (ii) have substantial potential for 
 stimulating new economic activity in 
 communities most affected by reductions in 
 Federal defense expenditures.
 (22) The Administration is authorized to permit 
 participating lenders to impose and collect a 
 reasonable penalty fee on late payments of loans 
 guaranteed under this subsection in an amount not to 
 exceed 5 percent of the monthly loan payment per month 
 plus interest.
 (23) Yearly fee.--
 (A) In general.--With respect to each loan 
 approved under this subsection, the 
 Administration shall assess, collect, and 
 retain a fee, not to exceed 0.55 percent per 
 year of the outstanding balance of the deferred 
 participation share of the loan, in an amount 
 established once annually by the Administration 
 in the Administration's annual budget request 
 to Congress, as necessary to reduce to zero the 
 cost to the Administration of making guarantees 
 under this subsection. As used in this 
 paragraph, the term ``cost'' has the meaning 
 given that term in section 502 of the Federal 
 Credit Reform Act of 1990 (2 U.S.C. 661a).
 (B) Payer.--The yearly fee assessed under 
 subparagraph (A) shall be payable by the 
 participating lender and shall not be charged 
 to the borrower.
 (C) Lowering of borrower fees.--If the 
 Administration determines that fees paid by 
 lenders and by small business borrowers for 
 guarantees under this subsection may be 
 reduced, consistent with reducing to zero the 
 cost to the Administration of making such 
 guarantees--
 (i) the Administration shall first 
 consider reducing fees paid by small 
 business borrowers under clauses (i) 
 through (iii) of paragraph (18)(A), to 
 the maximum extent possible; and
 (ii) fees paid by small business 
 borrowers shall not be increased above 
 the levels in effect on the date of 
 enactment of this subparagraph.
 (24) Notification requirement.--The Administration 
 shall notify the Committees on Small Business of the 
 Senate and the House of Representatives not later than 
 15 days before making any significant policy or 
 administrative change affecting the operation of the 
 loan program under this subsection.
 (25) Limitation on conducting pilot projects.--
 (A) In general.--Not more than 10 percent of 
 the total number of loans guaranteed in any 
 fiscal year under this subsection may be 
 awarded as part of a pilot program which is 
 commenced by the Administrator on or after 
 October 1, 1996.
 (B) Pilot program defined.--In this 
 paragraph, the term ``pilot program'' means any 
 lending program initiative, project, 
 innovation, or other activity not specifically 
 authorized by law.
 (C) Low documentation loan program.--The 
 Administrator may carry out the low 
 documentation loan program for loans of 
 $100,000 or less only through lenders with 
 significant experience in making small business 
 loans. Not later than 90 days after the date of 
 enactment of this subsection, the Administrator 
 shall promulgate regulations defining the 
 experience necessary for participation as a 
 lender in the low documentation loan program.
 (26) Calculation of subsidy rate.--All fees, 
 interest, and profits received and retained by the 
 Administration under this subsection shall be included 
 in the calculations made by the Director of the Office 
 of Management and Budget to offset the cost (as that 
 term is defined in section 502 of the Federal Credit 
 Reform Act of 1990) to the Administration of purchasing 
 and guaranteeing loans under this Act.
 (28) Leasing.--In addition to such other lease 
 arrangements as may be authorized by the 
 Administration, a borrower may permanently lease to one 
 or more tenants not more than 20 percent of any 
 property constructed with the proceeds of a loan 
 guaranteed under this subsection, if the borrower 
 permanently occupies and uses not less than 60 percent 
 of the total business space in the property.
 (29) Real estate appraisals.--
 (A) In general.--With respect to a loan under 
 this subsection that is secured by commercial 
 real property, an appraisal of such property by 
 a State licensed or certified appraiser--
 (i) shall be required by the 
 Administration in connection with any 
 such loan, if such loan is in an amount 
 greater than the Federal banking 
 regulator appraisal threshold; or
 (ii) may be required by the 
 Administration or the lender in 
 connection with any such loan, if such 
 loan is in an amount equal to or less 
 than the Federal banking regulator 
 appraisal threshold, if such appraisal 
 is necessary for appropriate evaluation 
 of creditworthiness.
 (B) Federal banking regulator appraisal 
 threshold defined.--For purposes of this 
 paragraph, the term ``Federal banking regulator 
 appraisal threshold'' means the lesser of the 
 threshold amounts set by the Board of Governors 
 of the Federal Reserve System, the Comptroller 
 of the Currency, and the Federal Deposit 
 Insurance Corporation for when a federally 
 related transaction that is a commercial real 
 estate transaction requires an appraisal 
 prepared by a State licensed or certified 
 appraiser.
 (30) Ownership requirements.--Ownership requirements 
 to determine the eligibility of a small business 
 concern that applies for assistance under any credit 
 program under this Act shall be determined without 
 regard to any ownership interest of a spouse arising 
 solely from the application of the community property 
 laws of a State for purposes of determining marital 
 interests.
 (31) Express loans.--
 (A) Definitions.--As used in this paragraph:
 (i) The term ``disaster area'' means 
 the area for which the President has 
 declared a major disaster, during the 
 5-year period beginning on the date of 
 the declaration.
 (ii) The term ``express lender'' 
 means any lender authorized by the 
 Administration to participate in the 
 Express Loan Program.
 (iii) The term ``express loan'' means 
 any loan made pursuant to this 
 paragraph in which a lender utilizes to 
 the maximum extent practicable its own 
 loan analyses, procedures, and 
 documentation.
 (iv) The term ``Express Loan 
 Program'' means the program for express 
 loans established by the Administration 
 under paragraph (25)(B), as in 
 existence on April 5, 2004, with a 
 guarantee rate of not more than 50 
 percent.
 (B) Restriction to express lender.--The 
 authority to make an express loan shall be 
 limited to those lenders deemed qualified to 
 make such loans by the Administration. 
 Designation as an express lender for purposes 
 of making an express loan shall not prohibit 
 such lender from taking any other action 
 authorized by the Administration for that 
 lender pursuant to this subsection.
 (C) Grandfathering of existing lenders.--Any 
 express lender shall retain such designation 
 unless the Administration determines that the 
 express lender has violated the law or 
 regulations promulgated by the Administration 
 or modifies the requirements to be an express 
 lender and the lender no longer satisfies those 
 requirements.
 (D) Maximum loan amount.--The maximum loan 
 amount under the Express Loan Program is 
 $500,000.
 (E) Option to participate.--Except as 
 otherwise provided in this paragraph, the 
 Administration shall take no regulatory, 
 policy, or administrative action, without 
 regard to whether such action requires 
 notification pursuant to paragraph (24), that 
 has the effect of requiring a lender to make an 
 express loan pursuant to subparagraph (D).
 (F) Express loans for renewable energy and 
 energy efficiency.--
 (i) Definitions.--In this 
 subparagraph--
 (I) the term ``biomass''--
 (aa) means any 
 organic material that 
 is available on a 
 renewable or recurring 
 basis, including--
 (AA) 
 agricultural 
 crops;
 (BB) trees 
 grown for 
 energy 
 production;
 (CC) wood 
 waste and wood 
 residues;
 (DD) plants 
 (including 
 aquatic plants 
 and grasses);
 (EE) 
 residues;
 (FF) fibers;
 (GG) animal 
 wastes and 
 other waste 
 materials; and
 (HH) fats, 
 oils, and 
 greases 
 (including 
 recycled fats, 
 oils, and 
 greases); and
 (bb) does not 
 include--
 (AA) paper 
 that is 
 commonly 
 recycled; or
 (BB) 
 unsegregated 
 solid waste;
 (II) the term ``energy 
 efficiency project'' means the 
 installation or upgrading of 
 equipment that results in a 
 significant reduction in energy 
 usage; and
 (III) the term ``renewable 
 energy system'' means a system 
 of energy derived from--
 (aa) a wind, solar, 
 biomass (including 
 biodiesel), or 
 geothermal source; or
 (bb) hydrogen derived 
 from biomass or water 
 using an energy source 
 described in item (aa).
 (ii) Loans.--The Administrator may 
 make a loan under the Express Loan 
 Program for the purpose of--
 (I) purchasing a renewable 
 energy system; or
 (II) carrying out an energy 
 efficiency project for a small 
 business concern.
 (G) Guarantee fee waiver for veterans.--
 (i) Guarantee fee waiver.--The 
 Administrator may not collect a 
 guarantee fee described in paragraph 
 (18) in connection with a loan made 
 under this paragraph to a veteran or 
 spouse of a veteran on or after October 
 1, 2015.
 (ii) Definition.--In this 
 subparagraph, the term ``veteran or 
 spouse of a veteran'' means--
 (I) a veteran, as defined in 
 section 3(q)(4);
 (II) an individual who is 
 eligible to participate in the 
 Transition Assistance Program 
 established under section 1144 
 of title 10, United States 
 Code;
 (III) a member of a reserve 
 component of the Armed Forces 
 named in section 10101 of title 
 10, United States Code;
 (IV) the spouse of an 
 individual described in 
 subclause (I), (II), or (III); 
 or
 (V) the surviving spouse (as 
 defined in section 101 of title 
 38, United States Code) of an 
 individual described in 
 subclause (I), (II), or (III) 
 who died while serving on 
 active duty or as a result of a 
 disability that is service-
 connected (as defined in such 
 section).
 (H) Recovery opportunity loans.--
 (i) In general.--The Administrator 
 may guarantee an express loan to a 
 small business concern located in a 
 disaster area in accordance with this 
 subparagraph.
 (ii) Maximums.--For a loan guaranteed 
 under clause (i)--
 (I) the maximum loan amount 
 is $150,000; and
 (II) the guarantee rate shall 
 be not more than 85 percent.
 (iii) Overall cap.--A loan guaranteed 
 under clause (i) shall not be counted 
 in determining the amount of loans made 
 to a borrower for purposes of 
 subparagraph (D).
 (iv) Operations.--A small business 
 concern receiving a loan guaranteed 
 under clause (i) shall certify that the 
 small business concern was in operation 
 on the date on which the applicable 
 major disaster occurred as a condition 
 of receiving the loan.
 (v) Repayment ability.--A loan 
 guaranteed under clause (i) may only be 
 made to a small business concern that 
 demonstrates, to the satisfaction of 
 the Administrator, sufficient capacity 
 to repay the loan.
 (vi) Timing of payment of 
 guarantees.--
 (I) In general.--Not later 
 than 90 days after the date on 
 which a request for purchase is 
 filed with the Administrator, 
 the Administrator shall 
 determine whether to pay the 
 guaranteed portion of the loan.
 (II) Recapture.--
 Notwithstanding any other 
 provision of law, unless there 
 is a subsequent finding of 
 fraud by a court of competent 
 jurisdiction relating to a loan 
 guaranteed under clause (i), on 
 and after the date that is 6 
 months after the date on which 
 the Administrator determines to 
 pay the guaranteed portion of 
 the loan, the Administrator may 
 not attempt to recapture the 
 paid guarantee.
 (vii) Fees.--
 (I) In general.--Unless the 
 Administrator has waived the 
 guarantee fee that would 
 otherwise be collected by the 
 Administrator under paragraph 
 (18) for a loan guaranteed 
 under clause (i), and except as 
 provided in subclause (II), the 
 guarantee fee for the loan 
 shall be equal to the guarantee 
 fee that the Administrator 
 would collect if the guarantee 
 rate for the loan was 50 
 percent.
 (II) Exception.--Subclause 
 (I) shall not apply if the cost 
 of carrying out the program 
 under this subsection in a 
 fiscal year is more than zero 
 and such cost is directly 
 attributable to the cost of 
 guaranteeing loans under clause 
 (i).
 (viii) Rules.--Not later than 270 
 days after the date of enactment of 
 this subparagraph, the Administrator 
 shall promulgate rules to carry out 
 this subparagraph.
 (32) Loans for energy efficient technologies.--
 (A) Definitions.--In this paragraph--
 (i) the term ``cost'' has the meaning 
 given that term in section 502 of the 
 Federal Credit Reform Act of 1990 (2 
 U.S.C. 661a);
 (ii) the term ``covered energy 
 efficiency loan'' means a loan--
 (I) made under this 
 subsection; and
 (II) the proceeds of which 
 are used to purchase energy 
 efficient designs, equipment, 
 or fixtures, or to reduce the 
 energy consumption of the 
 borrower by 10 percent or more; 
 and
 (iii) the term ``pilot program'' 
 means the pilot program established 
 under subparagraph (B)
 (B) Establishment.--The Administrator shall 
 establish and carry out a pilot program under 
 which the Administrator shall reduce the fees 
 for covered energy efficiency loans.
 (C) Duration.--The pilot program shall 
 terminate at the end of the second full fiscal 
 year after the date that the Administrator 
 establishes the pilot program.
 (D) Maximum participation.--A covered energy 
 efficiency loan shall include the maximum 
 participation levels by the Administrator 
 permitted for loans made under this subsection.
 (E) Fees.--
 (i) In general.--The fee on a covered 
 energy efficiency loan shall be equal 
 to 50 percent of the fee otherwise 
 applicable to that loan under paragraph 
 (18).
 (ii) Waiver.--The Administrator may 
 waive clause (i) for a fiscal year if--
 (I) for the fiscal year 
 before that fiscal year, the 
 annual rate of default of 
 covered energy efficiency loans 
 exceeds that of loans made 
 under this subsection that are 
 not covered energy efficiency 
 loans;
 (II) the cost to the 
 Administration of making loans 
 under this subsection is 
 greater than zero and such cost 
 is directly attributable to the 
 cost of making covered energy 
 efficiency loans; and
 (III) no additional sources 
 of revenue authority are 
 available to reduce the cost of 
 making loans under this 
 subsection to zero.
 (iii) Effect of waiver.--If the 
 Administrator waives the reduction of 
 fees under clause (ii), the 
 Administrator--
 (I) shall not assess or 
 collect fees in an amount 
 greater than necessary to 
 ensure that the cost of the 
 program under this subsection 
 is not greater than zero; and
 (II) shall reinstate the fee 
 reductions under clause (i) 
 when the conditions in clause 
 (ii) no longer apply.
 (iv) No increase of fees.--The 
 Administrator shall not increase the 
 fees under paragraph (18) on loans made 
 under this subsection that are not 
 covered energy efficiency loans as a 
 direct result of the pilot program.
 (F) GAO report.--
 (i) In general.--Not later than 1 
 year after the date that the pilot 
 program terminates, the Comptroller 
 General of the United States shall 
 submit to the Committee on Small 
 Business of the House of 
 Representatives and the Committee on 
 Small Business and Entrepreneurship of 
 the Senate a report on the pilot 
 program.
 (ii) Contents.--The report submitted 
 under clause (i) shall include--
 (I) the number of covered 
 energy efficiency loans for 
 which fees were reduced under 
 the pilot program;
 (II) a description of the 
 energy efficiency savings with 
 the pilot program;
 (III) a description of the 
 impact of the pilot program on 
 the program under this 
 subsection;
 (IV) an evaluation of the 
 efficacy and potential fraud 
 and abuse of the pilot program; 
 and
 (V) recommendations for 
 improving the pilot program.
 (33) Increased veteran participation program.--
 (A) Definitions.--In this paragraph--
 (i) the term ``cost'' has the meaning 
 given that term in section 502 of the 
 Federal Credit Reform Act of 1990 (2 
 U.S.C. 661a);
 (ii) the term ``pilot program'' means 
 the pilot program established under 
 subparagraph (B); and
 (iii) the term ``veteran 
 participation loan'' means a loan made 
 under this subsection to a small 
 business concern owned and controlled 
 by veterans of the Armed Forces or 
 members of the reserve components of 
 the Armed Forces.
 (B) Establishment.--The Administrator shall 
 establish and carry out a pilot program under 
 which the Administrator shall reduce the fees 
 for veteran participation loans.
 (C) Duration.--The pilot program shall 
 terminate at the end of the second full fiscal 
 year after the date that the Administrator 
 establishes the pilot program.
 (D) Maximum participation.--A veteran 
 participation loan shall include the maximum 
 participation levels by the Administrator 
 permitted for loans made under this subsection.
 (E) Fees.--
 (i) In general.--The fee on a veteran 
 participation loan shall be equal to 50 
 percent of the fee otherwise applicable 
 to that loan under paragraph (18).
 (ii) Waiver.--The Administrator may 
 waive clause (i) for a fiscal year if--
 (I) for the fiscal year 
 before that fiscal year, the 
 annual estimated rate of 
 default of veteran 
 participation loans exceeds 
 that of loans made under this 
 subsection that are not veteran 
 participation loans;
 (II) the cost to the 
 Administration of making loans 
 under this subsection is 
 greater than zero and such cost 
 is directly attributable to the 
 cost of making veteran 
 participation loans; and
 (III) no additional sources 
 of revenue authority are 
 available to reduce the cost of 
 making loans under this 
 subsection to zero.
 (iii) Effect of waiver.--If the 
 Administrator waives the reduction of 
 fees under clause (ii), the 
 Administrator--
 (I) shall not assess or 
 collect fees in an amount 
 greater than necessary to 
 ensure that the cost of the 
 program under this subsection 
 is not greater than zero; and
 (II) shall reinstate the fee 
 reductions under clause (i) 
 when the conditions in clause 
 (ii) no longer apply.
 (iv) No increase of fees.--The 
 Administrator shall not increase the 
 fees under paragraph (18) on loans made 
 under this subsection that are not 
 veteran participation loans as a direct 
 result of the pilot program.
 (F) GAO report.--
 (i) In general.--Not later than 1 
 year after the date that the pilot 
 program terminates, the Comptroller 
 General of the United States shall 
 submit to the Committee on Small 
 Business of the House of 
 Representatives and the Committee on 
 Small Business and Entrepreneurship of 
 the Senate a report on the pilot 
 program.
 (ii) Contents.--The report submitted 
 under clause (i) shall include--
 (I) the number of veteran 
 participation loans for which 
 fees were reduced under the 
 pilot program;
 (II) a description of the 
 impact of the pilot program on 
 the program under this 
 subsection;
 (III) an evaluation of the 
 efficacy and potential fraud 
 and abuse of the pilot program; 
 and
 (IV) recommendations for 
 improving the pilot program.
 (34) Export express program.--
 (A) Definitions.--In this paragraph--
 (i) the term ``export development 
 activity'' includes--
 (I) obtaining a standby 
 letter of credit when required 
 as a bid bond, performance 
 bond, or advance payment 
 guarantee;
 (II) participation in a trade 
 show that takes place outside 
 the United States;
 (III) translation of product 
 brochures or catalogues for use 
 in markets outside the United 
 States;
 (IV) obtaining a general line 
 of credit for export purposes;
 (V) performing a service 
 contract from buyers located 
 outside the United States;
 (VI) obtaining transaction-
 specific financing associated 
 with completing export orders;
 (VII) purchasing real estate 
 or equipment to be used in the 
 production of goods or services 
 for export;
 (VIII) providing term loans 
 or other financing to enable a 
 small business concern, 
 including an export trading 
 company and an export 
 management company, to develop 
 a market outside the United 
 States; and
 (IX) acquiring, constructing, 
 renovating, modernizing, 
 improving, or expanding a 
 production facility or 
 equipment to be used in the 
 United States in the production 
 of goods or services for 
 export; and
 (ii) the term ``express loan'' means 
 a loan in which a lender uses to the 
 maximum extent practicable the loan 
 analyses, procedures, and documentation 
 of the lender to provide expedited 
 processing of the loan application.
 (B) Authority.--The Administrator may 
 guarantee the timely payment of an express loan 
 to a small business concern made for an export 
 development activity.
 (C) Level of participation.--
 (i) Maximum amount.--The maximum 
 amount of an express loan guaranteed 
 under this paragraph shall be $500,000.
 (ii) Percentage.--For an express loan 
 guaranteed under this paragraph, the 
 Administrator shall guarantee--
 (I) 90 percent of a loan that 
 is not more than $350,000; and
 (II) 75 percent of a loan 
 that is more than $350,000 and 
 not more than $500,000.
 (35) Loans to cooperatives.--
 (A) Definition.--In this paragraph, the term 
 ``cooperative'' means an entity that is 
 determined to be a cooperative by the 
 Administrator, in accordance with applicable 
 Federal and State laws and regulation.
 (B) Authority.--The Administration shall 
 guarantee loans made to a cooperative for the 
 purpose described in paragraph (15).
 (36) Paycheck protection program.--
 (A) Definitions.--In this paragraph--
 (i) the terms ``appropriate Federal 
 banking agency'' and ``insured 
 depository institution'' have the 
 meanings given those terms in section 3 
 of the Federal Deposit Insurance Act 
 (12 U.S.C. 1813);
 (ii) the term ``covered loan'' means 
 a loan made under this paragraph during 
 the covered period;
 (iii) the term ``covered period'' 
 means the period beginning on February 
 15, 2020 and ending on June 30, 2021;
 (iv) the term ``eligible recipient'' 
 means an individual or entity that is 
 eligible to receive a covered loan;
 (v) the term ``eligible self-employed 
 individual'' has the meaning given the 
 term in section 7002(b) of the Families 
 First Coronavirus Response Act (Public 
 Law 116-127);
 (vi) the term ``insured credit 
 union'' has the meaning given the term 
 in section 101 of the Federal Credit 
 Union Act (12 U.S.C. 1752);
 (vii) the term ``nonprofit 
 organization'' means an organization 
 that is described in section 501(c)(3) 
 of the Internal Revenue Code of 1986 
 and that is exempt from taxation under 
 section 501(a) of such Code;
 (viii) the term ``payroll costs''--
 (I) means--
 (aa) the sum of 
 payments of any 
 compensation with 
 respect to employees 
 that is a--
 (AA) salary, 
 wage, 
 commission, or 
 similar 
 compensation;
 (BB) payment 
 of cash tip or 
 equivalent;
 (CC) payment 
 for vacation, 
 parental, 
 family, 
 medical, or 
 sick leave;
 (DD) 
 allowance for 
 dismissal or 
 separation;
 (EE) payment 
 required for 
 the provisions 
 of group health 
 care or group 
 life, 
 disability, 
 vision, or 
 dental 
 insurance 
 benefits, 
 including 
 insurance 
 premiums;
 (FF) payment 
 of any 
 retirement 
 benefit; or
 (GG) payment 
 of State or 
 local tax 
 assessed on the 
 compensation of 
 employees; and
 (bb) the sum of 
 payments of any 
 compensation to or 
 income of a sole 
 proprietor or 
 independent contractor 
 that is a wage, 
 commission, income, net 
 earnings from self-
 employment, or similar 
 compensation and that 
 is in an amount that is 
 not more than $100,000 
 on an annualized basis, 
 as prorated for the 
 period during which the 
 payments are made or 
 the obligation to make 
 the payments is 
 incurred; and
 (II) shall not include--
 (aa) the compensation 
 of an individual 
 employee in excess of 
 $100,000 on an 
 annualized basis, as 
 prorated for theperiod 
 during which the 
 compensation is paid or 
 the obligationto pay 
 the compensation is 
 incurred;
 (bb) taxes imposed or 
 withheld under chapters 
 21, 22, or 24 of the 
 Internal Revenue Code 
 of 1986 during the 
 applicable period;
 (cc) any compensation 
 of an employee whose 
 principal place of 
 residence is outside of 
 the United States;
 (dd) qualified sick 
 leave wages for which a 
 credit is allowed under 
 section 7001 of the 
 Families First 
 Coronavirus Response 
 Act (Public Law 116-
 127); or
 (ee) qualified family 
 leave wages for which a 
 credit is allowed under 
 section 7003 of the 
 Families First 
 Coronavirus Response 
 Act (Public Law 116-
 127);
 (ix) the term ``veterans 
 organization'' means an organization 
 that is described in section 501(c)(19) 
 of the Internal Revenue Code that is 
 exempt from taxation under section 
 501(a) of such Code;
 (x) the term ``community development 
 financial institution'' has the meaning 
 given the term in section 103 of the 
 Riegle Community Development and 
 Regulatory Improvement Act of 1994 (12 
 U.S.C. 4702));
 (xi) the term ``community financial 
 institutions'' means--
 (I) a community development 
 financial institution;
 (II) a minority depository 
 institution, as defined in 
 section 308 of the Financial 
 Institutions Reform, Recovery, 
 and Enforcement Act of 1989 (12 
 U.S.C. 1463 note);
 (III) a development company 
 that is certified under title V 
 of the Small Business 
 Investment Act of 1958 (15 
 U.S.C. 695 et seq.); and
 (IV) an intermediary, as 
 defined in section 7(m)(11);
 (xii) the term ``credit union'' means 
 a State credit union or a Federal 
 credit union, as those terms are 
 defined, respectively, in section 101 
 of the Federal Credit Union Act (12 
 U.S.C. 1752);
 (xiii) the term ``seasonal employer'' 
 means an eligible recipient that--
 (I) does not operate for more 
 than 7 months in any calendar 
 year; or
 (II) during the preceding 
 calendar year, had gross 
 receipts for any 6 months of 
 that year that were not more 
 than 33.33 percent of the gross 
 receipts of the employer for 
 the other 6 months of that 
 year;
 (xiv) the term ``housing 
 cooperative'' means a cooperative 
 housing corporation (as defined in 
 section 216(b) of the Internal Revenue 
 Code of 1986) that employs not more 
 than 300 employees;
 (xv) the term ``destination marketing 
 organization'' means a nonprofit entity 
 that is--
 (I) an organization described 
 in section 501(c) of the 
 Internal Revenue Code of 1986 
 and exempt from tax under 
 section 501(a) of such Code; or
 (II) a State, or a political 
 subdivision of a State 
 (including any instrumentality 
 of such entities)--
 (aa) engaged in 
 marketing and promoting 
 communities and 
 facilities to 
 businesses and leisure 
 travelers through a 
 range of activities, 
 including--
 (AA) 
 assisting with 
 the location of 
 meeting and 
 convention 
 sites;
 (BB) 
 providing 
 travel 
 information on 
 area 
 attractions, 
 lodging 
 accommodations, 
 and 
 restaurants;
 (CC) 
 providing maps; 
 and
 (DD) 
 organizing 
 group tours of 
 local 
 historical, 
 recreational, 
 and cultural 
 attractions; or
 (bb) that is engaged 
 in, and derives the 
 majority of the 
 operating budget of the 
 entity from revenue 
 attributable to, 
 providing live events;
 (xvi) the terms ``exchange'', 
 ``issuer'', and ``security'' have the 
 meanings given those terms in section 
 3(a) of the Securities Exchange Act of 
 1934 (15 U.S.C. 78c(a)); and
 (xvii) the term ``additional covered 
 nonprofit entity''--
 (I) means an organization 
 described in any paragraph of 
 section 501(c) of the Internal 
 Revenue Code of 1986, other 
 than paragraph (3), (4), (6), 
 or (19), and exempt from tax 
 under section 501(a) of such 
 Code; and
 (II) does not include any 
 entity that, if the entity were 
 a business concern, would be 
 described in section 120.110 of 
 title 13, Code of Federal 
 Regulations (or in any 
 successor regulation or other 
 related guidance or rule that 
 may be issued by the 
 Administrator) other than a 
 business concern described in 
 paragraph (a) or (k) of such 
 section.
 (B) Paycheck protection loans.--Except as 
 otherwise provided in this paragraph, the 
 Administrator may guarantee covered loans under 
 the same terms, conditions, and processes as a 
 loan made under this subsection.
 (C) Registration of loans.--Not later than 15 
 days after the date on which a loan is made 
 under this paragraph, the Administration shall 
 register the loan using the TIN (as defined in 
 section 7701 of the Internal Revenue Code of 
 1986) assigned to the borrower.
 (D) Increased eligibility for certain small 
 businesses and organizations.--
 (i) In general.--During the covered 
 period, in addition to small business 
 concerns, any business concern, 
 nonprofit organization, housing 
 cooperative, veterans organization, or 
 Tribal business concern described in 
 section 31(b)(2)(C) shall be eligible 
 to receive a covered loan if the 
 business concern, nonprofit 
 organization, housing cooperative, 
 veterans organization, or Tribal 
 business concern employs not more than 
 the greater of--
 (I) 500 employees; or
 (II) if applicable, the size 
 standard in number of employees 
 established by the 
 Administration for the industry 
 in which the business concern, 
 nonprofit organization, housing 
 cooperative, veterans 
 organization, or Tribal 
 business concern operates.
 (ii) Inclusion of sole proprietors, 
 independent contractors, and eligible 
 self-employed individuals.--
 (I) In general.--During the 
 covered period, individuals who 
 operate under a sole 
 proprietorship or as an 
 independent contractor and 
 eligible self-employed 
 individuals shall be eligible 
 to receive a covered loan.
 (II) Documentation.--An 
 eligible self-employed 
 individual, independent 
 contractor, or sole 
 proprietorship seeking a 
 covered loan shall submit such 
 documentation as determined 
 necessary by the Administrator 
 and the Secretary, to establish 
 the applicant as eligible.
 (iii) Business concerns with more 
 than 1 physical location.--
 (I) In general.--During the 
 covered period, any business 
 concern that employs not more 
 than 500 employees per physical 
 location of the business 
 concern and that is assigned a 
 North American Industry 
 Classification System code 
 beginning with 72 at the time 
 of disbursal shall be eligible 
 to receive a covered loan.
 (II) Eligibility of news 
 organizations.--
 (aa) Definition.--In 
 this subclause, the 
 term ``included 
 business concern'' 
 means a business 
 concern, including any 
 station which 
 broadcasts pursuant to 
 a license granted by 
 the Federal 
 Communications 
 Commission under title 
 III of the 
 Communications Act of 
 1934 (47 U.S.C. 301 et 
 seq.) without regard 
 for whether such a 
 station is a concern as 
 defined in section 
 121.105 of title 13, 
 Code of Federal 
 Regulations, or any 
 successor thereto--
 (AA) that 
 employs not 
 more than 500 
 employees, or 
 the size 
 standard 
 established by 
 the 
 Administrator 
 for the North 
 American 
 Industry 
 Classification 
 System code 
 applicable to 
 the business 
 concern, per 
 physical 
 location of 
 such business 
 concern; or
 (BB) any 
 nonprofit 
 organization or 
 any 
 organization 
 otherwise 
 subject to 
 section 
 511(a)(2)(B) of 
 the Internal 
 Revenue Code of 
 1986 that is a 
 public 
 broadcasting 
 entity (as 
 defined in 
 section 397(11) 
 of the 
 Communications 
 Act of 1934 (47 
 U.S.C. 
 397(11))).
 (bb) Eligibility.--
 During the covered 
 period, an included 
 business concern shall 
 be eligible to receive 
 a covered loan if--
 (AA) the 
 included 
 business 
 concern is 
 majority owned 
 or controlled 
 by a business 
 concern that is 
 assigned a 
 North American 
 Industry 
 Classification 
 System code 
 beginning with 
 511110 or 5151 
 or, with 
 respect to a 
 public 
 broadcasting 
 entity (as 
 defined in 
 section 397(11) 
 of the 
 Communications 
 Act of 1934 (47 
 U.S.C. 
 397(11))), has 
 a trade or 
 business that 
 falls under 
 such a code; 
 and
 (BB) the 
 included 
 business 
 concern makes a 
 good faith 
 certification 
 that proceeds 
 of the loan 
 will be used to 
 support 
 expenses at the 
 component of 
 the included 
 business 
 concern that 
 produces or 
 distributes 
 locally focused 
 or emergency 
 information.
 (III) Eligibility of certain 
 organizations.--Subject to the 
 provisions in this 
 subparagraph, during the 
 covered period--
 (aa) a nonprofit 
 organization shall be 
 eligible to receive a 
 covered loan if the 
 nonprofit organization 
 employs not more than 
 500 employees per 
 physical location of 
 the organization; and
 (bb) an additional 
 covered nonprofit 
 entity and an 
 organization that, but 
 for subclauses (I)(dd) 
 and (II)(dd) of clause 
 (vii), would be 
 eligible for a covered 
 loan under clause (vii) 
 shall be eligible to 
 receive a covered loan 
 if the entity or 
 organization employs 
 not more than 300 
 employees per physical 
 location of the entity 
 or organization.
 (IV) Eligibility of internet 
 publishing organizations.--A 
 business concern or other 
 organization that was not 
 eligible to receive a covered 
 loan the day before the date of 
 enactment of this subclause, is 
 assigned a North American 
 Industry Classification System 
 code of 519130, certifies in 
 good faith as an Internet-only 
 news publisher or Internet-only 
 periodical publisher, and is 
 engaged in the collection and 
 distribution of local or 
 regional and national news and 
 information shall be eligible 
 to receive a covered loan for 
 the continued provision of 
 news, information, content, or 
 emergency information if--
 (aa) the business 
 concern or organization 
 employs not more than 
 500 employees, or the 
 size standard 
 established by the 
 Administrator for that 
 North American Industry 
 Classification code, 
 per physical location 
 of the business concern 
 or organization; and
 (bb) the business 
 concern or organization 
 makes a good faith 
 certification that 
 proceeds of the loan 
 will be used to support 
 expenses at the 
 component of the 
 business concern or 
 organization that 
 supports local or 
 regional news.
 (iv) Waiver of affiliation rules.--
 During the covered period, the 
 provisions applicable to affiliations 
 under section 121.103 of title 13, Code 
 of Federal Regulations, or any 
 successor regulation, are waived with 
 respect to eligibility for a covered 
 loan for--
 (I) any business concern with 
 not more than 500 employees 
 that, as of the date on which 
 the covered loan is disbursed, 
 is assigned a North American 
 Industry Classification System 
 code beginning with 72;
 (II) any business concern 
 operating as a franchise that 
 is assigned a franchise 
 identifier code by the 
 Administration;
 (III) any business concern 
 that receives financial 
 assistance from a company 
 licensed under section 301 of 
 the Small Business Investment 
 Act of 1958 (15 U.S.C. 681);
 (IV)(aa) any business concern 
 (including any station which 
 broadcasts pursuant to a 
 license granted by the Federal 
 Communications Commission under 
 title III of the Communications 
 Act of 1934 (47 U.S.C. 301 et 
 seq.) without regard for 
 whether such a station is a 
 concern as defined in section 
 121.105 of title 13, Code of 
 Federal Regulations, or any 
 successor thereto) that employs 
 not more than 500 employees, or 
 the size standard established 
 by the Administrator for the 
 North American Industry 
 Classification System code 
 applicable to the business 
 concern, per physical location 
 of such business concern and is 
 majority owned or controlled by 
 a business concern that is 
 assigned a North American 
 Industry Classification System 
 code beginning with 511110 or 
 5151; or
 (bb) any nonprofit 
 organization that is assigned a 
 North American Industry 
 Classification System code 
 beginning with 5151; and
 (V) any business concern or 
 other organization that was not 
 eligible to receive a covered 
 loan the day before the date of 
 enactment of this subclause, is 
 assigned a North American 
 Industry Classification System 
 code of 519130, certifies in 
 good faith as an Internet-only 
 news publisher or Internet-only 
 periodical publisher, and is 
 engaged in the collection and 
 distribution of local or 
 regional and national news and 
 information, if the business 
 concern or organization--
 (aa) employs not more 
 than 500 employees, or 
 the size standard 
 established by the 
 Administrator for that 
 North American Industry 
 Classification code, 
 per physical location 
 of the business concern 
 or organization; and
 (bb) is majority 
 owned or controlled by 
 a business concern or 
 organization that is 
 assigned a North 
 American Industry 
 Classification System 
 code of 519130.
 (v) Employee.--For purposes of 
 determining whether a business concern, 
 nonprofit organization, veterans 
 organization, or Tribal business 
 concern described in section 
 31(b)(2)(C) employs not more than 500 
 employees under clause (i)(I), or for 
 purposes of determining the number of 
 employees of a housing cooperative or a 
 business concern or organization made 
 eligible for a loan under this 
 paragraph under subclause (II), (III), 
 or (IV) of clause (iii), subclause (IV) 
 or (V) of clause (iv), clause (vii), or 
 clause (ix), the term ``employee'' 
 includes individuals employed on a 
 full-time, part-time, or other basis.
 (vi) Affiliation.--The provisions 
 applicable to affiliations under 
 section 121.103 of title 13, Code of 
 Federal Regulations, or any successor 
 thereto, shall apply with respect to a 
 nonprofit organization and, a housing 
 cooperative, a veterans organization in 
 the same manner as with respect to a 
 small business concern.
 (vii) Eligibility for certain 
 501(c)(6) organizations.--
 (I) In general.--Any 
 organization that is described 
 in section 501(c)(6) of the 
 Internal Revenue Code and that 
 is exempt from taxation under 
 section 501(a) of such Code 
 (excluding professional sports 
 leagues and organizations with 
 the purpose of promoting or 
 participating in a political 
 campaign or other activity) 
 shall be eligible to receive a 
 covered loan if--
 (aa) the organization 
 does not receive more 
 than 15 percent of its 
 receipts from lobbying 
 activities;
 (bb) the lobbying 
 activities of the 
 organization do not 
 comprise more than 15 
 percent of the total 
 activities of the 
 organization;
 (cc) the cost of the 
 lobbying activities of 
 the organization did 
 not exceed $1,000,000 
 during the most recent 
 tax year of the 
 organization that ended 
 prior to February 15, 
 2020; and
 (dd) the organization 
 employs not more than 
 300 employees.
 (II) Destination marketing 
 organizations.--Any destination 
 marketing organization shall be 
 eligible to receive a covered 
 loan if--
 (aa) the destination 
 marketing organization 
 does not receive more 
 than 15 percent of its 
 receipts from lobbying 
 activities;
 (bb) the lobbying 
 activities of the 
 destination marketing 
 organization do not 
 comprise more than 15 
 percent of the total 
 activities of the 
 organization;
 (cc) the cost of the 
 lobbying activities of 
 the destination 
 marketing organization 
 did not exceed 
 $1,000,000 during the 
 most recent tax year of 
 the destination 
 marketing organization 
 that ended prior to 
 February 15, 2020; and
 (dd) the destination 
 marketing organization 
 employs not more than 
 300 employees; and
 (ee) the destination 
 marketing 
 organization--
 (AA) is 
 described in 
 section 501(c) 
 of the Internal 
 Revenue Code 
 and is exempt 
 from taxation 
 under section 
 501(a) of such 
 Code; or
 (BB) is a 
 quasi-
 governmental 
 entity or is a 
 political 
 subdivision of 
 a State or 
 local 
 government, 
 including any 
 instrumentality 
 of those 
 entities.
 (viii) Ineligibility of publicly-
 traded entities.--
 (I) In general.--Subject to 
 subclause (II), and 
 notwithstanding any other 
 provision of this paragraph, on 
 and after the date of enactment 
 of the Economic Aid to Hard-Hit 
 Small Businesses, Nonprofits, 
 and Venues Act, an entity that 
 is an issuer, the securities of 
 which are listed on an exchange 
 registered as a national 
 securities exchange under 
 section 6 of the Securities 
 Exchange Act of 1934 (15 U.S.C. 
 78f), shall be ineligible to 
 receive a covered loan under 
 this paragraph.
 (II) Rule for affiliated 
 entities.--With respect to a 
 business concern made eligible 
 by subclause (II) or (IV) of 
 clause (iii) or subclause (IV) 
 or (V) of clause (iv) of this 
 subparagraph, the Administrator 
 shall not consider whether any 
 affiliated entity, which for 
 purposes of this subclause 
 shall include any entity that 
 owns or controls such business 
 concern or organization, is an 
 issuer.
 (ix) Eligibility of additional 
 covered nonprofit entities.--An 
 additional covered nonprofit entity 
 shall be eligible to receive a covered 
 loan if--
 (I) the additional covered 
 nonprofit entity does not 
 receive more than 15 percent of 
 its receipts from lobbying 
 activities;
 (II) the lobbying activities 
 of the additional covered 
 nonprofit entity do not 
 comprise more than 15 percent 
 of the total activities of the 
 organization;
 (III) the cost of the 
 lobbying activities of the 
 additional covered nonprofit 
 entity did not exceed 
 $1,000,000 during the most 
 recent tax year of the 
 additional covered nonprofit 
 entity that ended prior to 
 February 15, 2020; and
 (IV) the additional covered 
 nonprofit entity employs not 
 more than 300 employees.
 (E) Maximum loan amount.--Except as provided 
 in subparagraph (V), during the covered period, 
 with respect to a covered loan, the maximum 
 loan amount shall be the lesser of--
 (i)(I) the sum of--
 (aa) the product obtained by 
 multiplying--
 (AA) the average 
 total monthly payments 
 by the applicant for 
 payroll costs incurred 
 during the 1-year 
 period before the date 
 on which the loan is 
 made, except thatan 
 applicant that is a 
 seasonal employer shall 
 use the average total 
 monthly payments for 
 payroll for any 12-week 
 period selected by the 
 seasonal employer 
 between February 15, 
 2019, and February 15, 
 2020; by
 (BB) 2.5; and
 (bb) the outstanding amount 
 of a loan under subsection 
 (b)(2) that was made during the 
 period beginning on January 31, 
 2020 and ending on the date on 
 which covered loans are made 
 available to be refinanced 
 under the covered loan; or
 (II) if requested by an otherwise 
 eligible recipient that was not in 
 business during the period beginning on 
 February 15, 2019 and ending on June 
 30, 2019, the sum of--
 (aa) the product obtained by 
 multiplying--
 (AA) the average 
 total monthly payments 
 by the applicant for 
 payroll costs incurred 
 during the period 
 beginning on January 1, 
 2020 and ending on 
 February 29, 2020; by
 (BB) 2.5; and
 (bb) the outstanding amount 
 of a loan under subsection 
 (b)(2) that was made during the 
 period beginning on January 31, 
 2020 and ending on the date on 
 which covered loans are made 
 available to be refinanced 
 under the covered loan; or
 (ii) $10,000,000.
 (F) Allowable uses of covered loans.--
 (i) In general.--During the covered 
 period, an eligible recipient may, in 
 addition to the allowable uses of a 
 loan made under this subsection, use 
 the proceeds of the covered loan for--
 (I) payroll costs;
 (II) costs related to the 
 continuation of group health 
 care benefits during periods of 
 paid sick, medical, or family 
 leave, and insurance premiums;
 (III) employee salaries, 
 commissions, or similar 
 compensations;
 (IV) payments of interest on 
 any mortgage obligation (which 
 shall not include any 
 prepayment of or payment of 
 principal on a mortgage 
 obligation);
 (V) rent (including rent 
 under a lease agreement);
 (VI) utilities;
 (VII) interest on any other 
 debt obligations that were 
 incurred before the covered 
 period;
 (VIII) covered operations 
 expenditures, as defined in 
 section 7A(a);
 (IX) covered property damage 
 costs, as defined in section 
 7A(a);
 (X) covered supplier costs, 
 as defined in section 7A(a); 
 and
 (XI) covered worker 
 protection expenditures, as 
 defined in section 7A(a).
 (ii) Delegated authority.--
 (I) In general.--For purposes 
 of making covered loans for the 
 purposes described in clause 
 (i), a lender approved to make 
 loans under this subsection 
 shall be deemed to have been 
 delegated authority by the 
 Administrator to make and 
 approve covered loans, subject 
 to the provisions of this 
 paragraph.
 (II) Considerations.--In 
 evaluating the eligibility of a 
 borrower for a covered loan 
 with the terms described in 
 this paragraph, a lender shall 
 consider whether the borrower--
 (aa) was in operation 
 on February 15, 2020; 
 and
 (bb)(AA) had 
 employees for whom the 
 borrower paid salaries 
 and payroll taxes; or
 (BB) paid independent 
 contractors, as 
 reported on a Form 
 1099-MISC.
 (iii) Additional lenders.--The 
 authority to make loans under this 
 paragraph shall be extended to 
 additional lenders determined by the 
 Administrator and the Secretary of the 
 Treasury to have the necessary 
 qualifications to process, close, 
 disburse and service loans made with 
 the guarantee of the Administration.
 (iv) Refinance.--A loan made under 
 subsection (b)(2) during the period 
 beginning on January 31, 2020 and 
 ending on the date on which covered 
 loans are made available may be 
 refinanced as part of a covered loan.
 (v) Nonrecourse.--Notwithstanding the 
 waiver of the personal guarantee 
 requirement or collateral under 
 subparagraph (J), the Administrator 
 shall have no recourse against any 
 individual shareholder, member, or 
 partner of an eligible recipient of a 
 covered loan for nonpayment of any 
 covered loan, except to the extent that 
 such shareholder, member, or partner 
 uses the covered loan proceeds for a 
 purpose not authorized under clause (i) 
 or (iv).
 (vi) Prohibition.--None of the 
 proceeds of a covered loan may be used 
 for--
 (I) lobbying activities, as 
 defined in section 3 of the 
 Lobbying Disclosure Act of 1995 
 (2 U.S.C. 1602);
 (II) lobbying expenditures 
 related to a State or local 
 election; or
 (III) expenditures designed 
 to influence the enactment of 
 legislation, appropriations, 
 regulation, administrative 
 action, or Executive order 
 proposed or pending before 
 Congress or any State 
 government, State legislature, 
 or local legislature or 
 legislative body.
 (G) Borrower requirements.--
 (i) Certification.--An eligible 
 recipient applying for a covered loan 
 shall make a good faith certification--
 (I) that the uncertainty of 
 current economic conditions 
 makes necessary the loan 
 request to support the ongoing 
 operations of the eligible 
 recipient;
 (II) acknowledging that funds 
 will be used to retain workers 
 and maintain payroll or make 
 mortgage payments, lease 
 payments, and utility payments;
 (III) that the eligible 
 recipient does not have an 
 application pending for a loan 
 under this subsection for the 
 same purpose and duplicative of 
 amounts applied for or received 
 under a covered loan; and
 (IV) during the period 
 beginning on February 15, 2020 
 and ending on December 31, 
 2020, that the eligible 
 recipient has not received 
 amounts under this subsection 
 for the same purpose and 
 duplicative of amounts applied 
 for or received under a covered 
 loan.
 (H) Fee waiver.--With respect to a covered 
 loan--
 (i) in lieu of the fee otherwise 
 applicable under paragraph (23)(A), the 
 Administrator shall collect no fee; and
 (ii) in lieu of the fee otherwise 
 applicable under paragraph (18)(A), the 
 Administrator shall collect no fee.
 (I) Credit elsewhere.--During the covered 
 period, the requirement that a small business 
 concern is unable to obtain credit elsewhere, 
 as defined in section 3(h), shall not apply to 
 a covered loan.
 (J) Waiver of personal guarantee 
 requirement.--With respect to a covered loan--
 (i) no personal guarantee shall be 
 required for the covered loan; and
 (ii) no collateral shall be required 
 for the covered loan.
 (K) Maturity for loans with remaining balance 
 after application of forgiveness.--With respect 
 to a covered loan that has a remaining balance 
 after reduction based on the loan forgiveness 
 amount under section 7A--
 (i) the remaining balance shall 
 continue to be guaranteed by the 
 Administration under this subsection; 
 and
 (ii) the covered loan shall have a 
 minimum maturity of 5 years and a 
 maximum maturity of 10 years from the 
 date on which the borrower applies for 
 loan forgiveness under that section.
 (L) Interest rate requirements.--A covered 
 loan shall bear an interest rate not to exceed 
 4 percent, calculated on a non-compounding, 
 non-adjustable basis.
 (M) Loan deferment.--
 (i) Definition of impacted 
 borrower.--
 (I) In general.--In this 
 subparagraph, the term 
 ``impacted borrower'' means an 
 eligible recipient that--
 (aa) is in operation 
 on February 15, 2020; 
 and
 (bb) has an 
 application for a 
 covered loan that is 
 approved or pending 
 approval on or after 
 the date of enactment 
 of this paragraph.
 (II) Presumption.--For 
 purposes of this subparagraph, 
 an impacted borrower is 
 presumed to have been adversely 
 impacted by COVID-19.
 (ii) Deferral.--The Administrator 
 shall--
 (I) consider each eligible 
 recipient that applies for a 
 covered loan to be an impacted 
 borrower; and
 (II) require lenders under 
 this subsection to provide 
 complete payment deferment 
 relief for impacted borrowers 
 with covered loans, including 
 payment of principal, interest, 
 and fees, until the date on 
 which the amount of forgiveness 
 determined under section 7A is 
 remitted to the lender.
 (iii) Secondary market.--With respect 
 to a covered loan that is sold on the 
 secondary market, if an investor 
 declines to approve a deferral 
 requested by a lender under clause 
 (ii), the Administrator shall exercise 
 the authority to purchase the loan so 
 that the impacted borrower may receive 
 a deferral, including payment of 
 principal, interest, and fees, until 
 the date on which the amount of 
 forgiveness determined under section 7A 
 is remitted to the lender.
 (iv) Guidance.--Not later than 30 
 days after the date of enactment of 
 this paragraph, the Administrator shall 
 provide guidance to lenders under this 
 paragraph on the deferment process 
 described in this subparagraph.
 (v) Rule of construction.--If an 
 eligible recipient fails to apply for 
 forgiveness of a covered loan within 10 
 months after the last day of the 
 covered period defined in section 
 7A(a), such eligible recipient shall 
 make payments of principal, interest, 
 and fees on such covered loan beginning 
 on the day that is not earlier than the 
 date that is 10 months after the last 
 day of such covered period.
 (N) Secondary market sales.--A covered loan 
 shall be eligible to be sold in the secondary 
 market consistent with this subsection. The 
 Administrator may not collect any fee for any 
 guarantee sold into the secondary market under 
 this subparagraph.
 (O) Regulatory capital requirements.--
 (i) Risk weight.--With respect to the 
 appropriate Federal banking agencies or 
 the National Credit Union 
 Administration Board applying capital 
 requirements under their respective 
 risk-based capital requirements, a 
 covered loan shall receive a risk 
 weight of zero percent.
 (ii) Temporary relief from tdr 
 disclosures.--Notwithstanding any other 
 provision of law, an insured depository 
 institution or an insured credit union 
 that modifies a covered loan in 
 relation to COVID-19-related 
 difficulties in a troubled debt 
 restructuring on or after March 13, 
 2020, shall not be required to comply 
 with the Financial Accounting Standards 
 Board Accounting Standards Codification 
 Subtopic 310-40 (``Receivables - 
 Troubled Debt Restructurings by 
 Creditors'') for purposes of compliance 
 with the requirements of the Federal 
 Deposit Insurance Act (12 U.S.C. 1811 
 et seq.), until such time and under 
 such circumstances as the appropriate 
 Federal banking agency or the National 
 Credit Union Administration Board, as 
 applicable, determines appropriate.
 (P) Reimbursement for processing.--
 (i) In general.--The Administrator 
 shall reimburse a lender authorized to 
 make a covered loan as follows:
 (I) With respect to a covered 
 loan made during the period 
 beginning on the date of 
 enactment of this paragraph and 
 ending on the day before the 
 date of enactment of the 
 Economic Aid to Hard-Hit Small 
 Businesses, Nonprofits, and 
 Venues Act, the Administrator 
 shall reimburse such a lender 
 at a rate, based on the balance 
 of the financing outstanding at 
 the time of disbursement of the 
 covered loan, of--
 (aa) 5 percent for 
 loans of not more than 
 $350,000;
 (bb) 3 percent for 
 loans of more than 
 $350,000 and less than 
 $2,000,000; and
 (cc) 1 percent for 
 loans of not less than 
 $2,000,000.
 (II) With respect to a 
 covered loan made on or after 
 the date of enactment of the 
 Economic Aid to Hard-Hit Small 
 Businesses, Nonprofits, and 
 Venues Act, the Administrator 
 shall reimburse such a lender--
 (aa) for a covered 
 loan of not more than 
 $50,000, in an amount 
 equal to the lesser 
 of--
 (AA) 50 
 percent of the 
 balance of the 
 financing 
 outstanding at 
 the time of 
 disbursement of 
 the covered 
 loan; or
 (BB) $2,500; 
 and
 (bb) at a rate, based 
 on the balance of the 
 financing outstanding 
 at the time of 
 disbursement of the 
 covered loan, of--
 (AA) 5 
 percent for a 
 covered loan of 
 more than 
 $50,000 and not 
 more than 
 $350,000;
 (BB) 3 
 percent for a 
 covered loan of 
 more than 
 $350,000 and 
 less than 
 $2,000,000; and
 (CC) 1 
 percent for a 
 covered loan of 
 not less than 
 $2,000,000.
 (ii) Fee limits.--An agent that 
 assists an eligible recipient to 
 prepare an application for a covered 
 loan may not collect a fee in excess of 
 the limits established by the 
 Administrator. If an eligible recipient 
 has knowingly retained an agent, such 
 fees shall be paid by the eligible 
 recipient and may not be paid out of 
 the proceeds of a covered loan. A 
 lender shall only be responsible for 
 paying fees to an agent for services 
 for which the lender directly contracts 
 with the agent.
 (iii) Timing.--A reimbursement 
 described in clause (i) shall be made 
 not later than 5 days after the 
 reported disbursement of the covered 
 loan and may not be required to be 
 repaid by a lender unless the lender is 
 found guilty of an act of fraud in 
 connection with the covered loan.
 (iv) Sense of the senate.--It is the 
 sense of the Senate that the 
 Administrator should issue guidance to 
 lenders and agents to ensure that the 
 processing and disbursement of covered 
 loans prioritizes small business 
 concerns and entities in underserved 
 and rural markets, including veterans 
 and members of the military community, 
 small business concerns owned and 
 controlled by socially and economically 
 disadvantaged individuals (as defined 
 in section 8(d)(3)(C)), women, and 
 businesses in operation for less than 2 
 years.
 (Q) Duplication.--Nothing in this paragraph 
 shall prohibit a recipient of an economic 
 injury disaster loan made under subsection 
 (b)(2) during the period beginning on January 
 31, 2020 and ending on the date on which 
 covered loans are made available that is for a 
 purpose other than paying payroll costs and 
 other obligations described in subparagraph (F) 
 from receiving assistance under this paragraph.
 (R) Waiver of prepayment penalty.--
 Notwithstanding any other provision of law, 
 there shall be no prepayment penalty for any 
 payment made on a covered loan.
 (S) Set-aside for insured depository 
 institutions, credit unions, and community 
 financial institutions.--
 (i) Insured depository institutions 
 and credit unions.--In making loan 
 guarantees under this paragraph after 
 the date of enactment of this clause, 
 the Administrator shall guarantee not 
 less than $30,000,000,000 in loans made 
 by--
 (I) insured depository 
 institutions with consolidated 
 assets of not less than 
 $10,000,000,000 and less than 
 $50,000,000,000; and
 (II) credit unions with 
 consolidated assets of not less 
 than $10,000,000,000 and less 
 than $50,000,000,000.
 (ii) Community financial 
 institutions, small insured depository 
 institutions, and credit unions.--In 
 making loan guarantees under this 
 paragraph after the date of enactment 
 of this clause, the Administrator shall 
 guarantee not less than $30,000,000,000 
 in loans made by--
 (I) community financial 
 institutions;
 (II) insured depository 
 institutions with consolidated 
 assets of less than 
 $10,000,000,000; and
 (III) credit unions with 
 consolidated assets of less 
 than $10,000,000,000.
 (T) Requirement for date in operation.--A 
 business or organization that was not in 
 operation on February 15, 2020 shall not be 
 eligible for a loan under this paragraph.
 (U) Exclusion of entities receiving shuttered 
 venue operator grants.--An eligible person or 
 entity (as defined under of section 24 of the 
 Economic Aid to Hard-Hit Small Businesses, 
 Nonprofits, and Venues Act) that receives a 
 grant under such section 24 shall not be 
 eligible for a loan under this paragraph.
 (V) Calculation of maximum loan amount for 
 farmers and ranchers.--
 (i) Definition.--In this 
 subparagraph, the term ``covered 
 recipient'' means an eligible recipient 
 that--
 (I) operates as a sole 
 proprietorship or as an 
 independent contractor, or is 
 an eligible self-employed 
 individual;
 (II) reports farm income or 
 expenses on a Schedule F (or 
 any equivalent successor 
 schedule); and
 (III) was in business as of 
 February 15, 2020.
 (ii) No employees.--With respect to 
 covered recipient without employees, 
 the maximum covered loan amount shall 
 be the lesser of--
 (I) the sum of--
 (aa) the product 
 obtained by 
 multiplying--
 (AA) the 
 gross income of 
 the covered 
 recipient in 
 2019, as 
 reported on a 
 Schedule F (or 
 any equivalent 
 successor 
 schedule), that 
 is not more 
 than $100,000, 
 divided by 12; 
 and
 (BB) 2.5; and
 (bb) the outstanding 
 amount of a loan under 
 subsection (b)(2) that 
 was made during the 
 period beginning on 
 January 31, 2020 and 
 ending on April 3, 2020 
 that the borrower 
 intends to refinance 
 under the covered loan, 
 not including any 
 amount of any advance 
 under the loan that is 
 not required to be 
 repaid; or
 (II) $2,000,000.
 (iii) With employees.--With respect 
 to a covered recipient with employees, 
 the maximum covered loan amount shall 
 be calculated using the formula 
 described in subparagraph (E), except 
 that the gross income of the covered 
 recipient described in clause 
 (ii)(I)(aa)(AA) of this subparagraph, 
 as divided by 12, shall be added to the 
 sum calculated under subparagraph 
 (E)(i)(I).
 (iv) Recalculation.--A lender that 
 made a covered loan to a covered 
 recipient before the date of enactment 
 of this subparagraph may, at the 
 request of the covered recipient--
 (I) recalculate the maximum 
 loan amount applicable to that 
 covered loan based on the 
 formula described in clause 
 (ii) or (iii), as applicable, 
 if doing so would result in a 
 larger covered loan amount; and
 (II) provide the covered 
 recipient with additional 
 covered loan amounts based on 
 that recalculation.
 (W) Fraud enforcement harmonization.--
 Notwithstanding any other provision of law, any 
 criminal charge or civil enforcement action 
 alleging that a borrower engaged in fraud with 
 respect to a covered loan guaranteed under this 
 paragraph shall be filed not later than 10 
 years after the offense was committed.
 (37) Paycheck protection program second draw loans.--
 (A) Definitions.--In this paragraph--
 (i) the terms ``additional covered 
 nonprofit entity'',``eligible self-
 employed individual'', ``housing 
 cooperative'', ``nonprofit 
 organization'', ``payroll costs'', 
 ``seasonal employer'', and ``veterans 
 organization'' have the meanings given 
 those terms in paragraph (36), except 
 that ``eligible entity'' shall be 
 substituted for ``eligible recipient'' 
 each place it appears in the 
 definitions of those terms;
 (ii) the term ``covered loan'' means 
 a loan made under this paragraph;
 (iii) the terms ``covered mortgage 
 obligation'', ``covered operating 
 expenditure'', ``covered property 
 damage cost'', ``covered rent 
 obligation'', ``covered supplier 
 cost'', ``covered utility payment'', 
 and ``covered worker protection 
 expenditure'' have the meanings given 
 those terms in section 7A(a);
 (iv) the term ``eligible entity''--
 (I) means any business 
 concern, nonprofit 
 organization, housing 
 cooperative, veterans 
 organization, Tribal business 
 concern, eligible self-employed 
 individual, sole proprietor, 
 independent contractor, or 
 small agricultural cooperative 
 that--
 (aa) employs not more 
 than 300 employees; and
 (bb)(AA) except as 
 provided in subitems 
 (BB), (CC), and (DD), 
 had gross receipts 
 during the first, 
 second, third, or, only 
 with respect to an 
 application submitted 
 on or after January 1, 
 2021, fourth quarter in 
 2020 that demonstrate 
 not less than a 25 
 percent reduction from 
 the gross receipts of 
 the entity during the 
 same quarter in 2019;
 (BB) if the entity 
 was not in business 
 during the first or 
 second quarter of 2019, 
 but was in business 
 during the third and 
 fourth quarter of 2019, 
 had gross receipts 
 during the first, 
 second, third, or, only 
 with respect to an 
 application submitted 
 on or after January 1, 
 2021, fourth quarter of 
 2020 that demonstrate 
 not less than a 25 
 percent reduction from 
 the gross receipts of 
 the entity during the 
 third or fourth quarter 
 of 2019;
 (CC) if the entity 
 was not in business 
 during the first, 
 second, or third 
 quarter of 2019, but 
 was in business during 
 the fourth quarter of 
 2019, had gross 
 receipts during the 
 first, second, third, 
 or, only with respect 
 to an application 
 submitted on or after 
 January 1, 2021, fourth 
 quarter of 2020 that 
 demonstrate not less 
 than a 25 percent 
 reduction from the 
 gross receipts of the 
 entity during the 
 fourth quarter of 2019; 
 or
 (DD) if the entity 
 was not in business 
 during 2019, but was in 
 operation on February 
 15, 2020, had gross 
 receipts during the 
 second, third, or, only 
 with respect to an 
 application submitted 
 on or after January 1, 
 2021, fourth quarter of 
 2020 that demonstrate 
 not less than a 25 
 percent reduction from 
 the gross receipts of 
 the entity during the 
 first quarter of 2020;
 (II) includes a business 
 concern or organization made 
 eligible for a loan under 
 paragraph (36) under subclause 
 (II), (III), or (IV) of clause 
 (iii), subclause (IV) or (V) of 
 clause (iv), clause (vii), or 
 clause (ix) of subparagraph (D) 
 of paragraph (36) and that 
 meets the requirements 
 described in items (aa) and 
 (bb) of subclause (I); and
 (III) does not include--
 (aa) any entity that 
 is a type of business 
 concern (or would be, 
 if such entity were a 
 business concern) 
 described in section 
 120.110 of title 13, 
 Code of Federal 
 Regulations (or in any 
 successor regulation or 
 other related guidance 
 or rule that may be 
 issued by the 
 Administrator) other 
 than a business concern 
 described in subsection 
 (a) or (k) of such 
 section; or
 (bb) any business 
 concern or entity 
 primarily engaged in 
 political or lobbying 
 activities, which shall 
 include any entity that 
 is organized for 
 research or for 
 engaging in advocacy in 
 areas such as public 
 policy or political 
 strategy or otherwise 
 describes itself as a 
 think tank in any 
 public documents;
 (cc) any business 
 concern or entity--
 (AA) for 
 which an entity 
 created in or 
 organized under 
 the laws of the 
 People's 
 Republic of 
 China or the 
 Special 
 Administrative 
 Region of Hong 
 Kong, or that 
 has significant 
 operations in 
 the People's 
 Republic of 
 China or the 
 Special 
 Administrative 
 Region of Hong 
 Kong, owns or 
 holds, directly 
 or indirectly, 
 not less than 
 20 percent of 
 the economic 
 interest of the 
 business 
 concern or 
 entity, 
 including as 
 equity shares 
 or a capital or 
 profit interest 
 in a limited 
 liability 
 company or 
 partnership; or
 (BB) that 
 retains, as a 
 member of the 
 board of 
 directors of 
 the business 
 concern, a 
 person who is a 
 resident of the 
 People's 
 Republic of 
 China;
 (dd) any person 
 required to submit a 
 registration statement 
 under section 2 of the 
 Foreign Agents 
 Registration Act of 
 1938 (22 U.S.C. 612); 
 or
 (ee) an eligible 
 person or entity (as 
 defined under section 
 24 of the Economic Aid 
 to Hard-Hit Small 
 Businesses, Nonprofits, 
 and Venues Act) that 
 receives a grant under 
 such section 24; and
 (v) the term ``Tribal business 
 concern'' means a Tribal business 
 concern described in section 
 31(b)(2)(C).
 (B) Loans.--Except as otherwise provided in 
 this paragraph, the Administrator may guarantee 
 covered loans to eligible entities under the 
 same terms, conditions, and processes as a loan 
 made under paragraph (36).
 (C) Maximum loan amount.--
 (i) In general.--Except as otherwise 
 provided in this subparagraph, the 
 maximum amount of a covered loan made 
 to an eligible entity is the lesser 
 of--
 (I) the product obtained by 
 multiplying--
 (aa) at the election 
 of the eligible entity, 
 the average total 
 monthly payment for 
 payroll costs incurred 
 or paid by the eligible 
 entity during--
 (AA) the 1-
 year period 
 before the date 
 on which the 
 loan is made; 
 or
 (BB) calendar 
 year 2019; by
 (bb) 2.5; or
 (II) $2,000,000.
 (ii) Seasonal employers.--The maximum 
 amount of a covered loan made to an 
 eligible entity that is a seasonal 
 employer is the lesser of--
 (I) the product obtained by 
 multiplying--
 (aa) at the election 
 of the eligible entity, 
 the average total 
 monthly payments for 
 payroll costs incurred 
 or paid by the eligible 
 entity for any 12-week 
 period between February 
 15, 2019 and February 
 15, 2020; by
 (bb) 2.5; or
 (II) $2,000,000.
 (iii) New entities.--The maximum 
 amount of a covered loan made to an 
 eligible entity that did not exist 
 during the 1-year period preceding 
 February 15, 2020 is the lesser of--
 (I) the product obtained by 
 multiplying--
 (aa) the quotient 
 obtained by dividing--
 (AA) the sum 
 of the total 
 monthly 
 payments by the 
 eligible entity 
 for payroll 
 costs paid or 
 incurred by the 
 eligible entity 
 as of the date 
 on which the 
 eligible entity 
 applies for the 
 covered loan; 
 by
 (BB) the 
 number of 
 months in which 
 those payroll 
 costs were paid 
 or incurred; by
 (bb) 2.5; or
 (II) $2,000,000.
 (iv) NAICS 72 entities.--The maximum 
 amount of a covered loan made to an 
 eligible entity that is assigned a 
 North American Industry Classification 
 System code beginning with 72 at the 
 time of disbursal is the lesser of--
 (I) the product obtained by 
 multiplying--
 (aa) at the election 
 of the eligible entity, 
 the average total 
 monthly payment for 
 payroll costs incurred 
 or paid by the eligible 
 entity during--
 (AA) the 1-
 year period 
 before the date 
 on which the 
 loan is made; 
 or
 (BB) calendar 
 year 2019; by
 (bb) 3.5; or
 (II) $2,000,000.
 (D) Business concerns with more than 1 
 physical location.--
 (i) In general.--For a business 
 concern with more than 1 physical 
 location, the business concern shall be 
 an eligible entity if the business 
 concern would be eligible for a loan 
 under paragraph (36) pursuant to clause 
 (iii) of subparagraph (D) of such 
 paragraph, as applied in accordance 
 with clause (ii) of this subparagraph, 
 and meets the revenue reduction 
 requirements described in item (bb) of 
 subparagraph (A)(iv)(I).
 (ii) Size limit.--For purposes of 
 applying clause (i), the Administrator 
 shall substitute ``not more than 300 
 employees'' for ``not more than 500 
 employees'' in paragraph (36)(D)(iii).
 (E) Waiver of affiliation rules.--
 (i) In general.--The waiver described 
 in paragraph (36)(D)(iv) shall apply 
 for purposes of determining eligibility 
 under this paragraph.
 (ii) Size limit.--For purposes of 
 applying clause (i), the Administrator 
 shall substitute ``not more than 300 
 employees'' for ``not more than 500 
 employees'' in subclause (I) and (IV) 
 of paragraph (36)(D)(iv).
 (F) Loan number limitation.--An eligible 
 entity may only receive 1 covered loan.
 (G) Exception from certain certification 
 requirements.--An eligible entity applying for 
 a covered loan shall not be required to make 
 the certification described in clause (iii) or 
 (iv) of paragraph (36)(G).
 (H) Fee waiver.--With respect to a covered 
 loan--
 (i) in lieu of the fee otherwise 
 applicable under paragraph (23)(A), the 
 Administrator shall collect no fee; and
 (ii) in lieu of the fee otherwise 
 applicable under paragraph (18)(A), the 
 Administrator shall collect no fee.
 (I) Gross receipts and simplified 
 certification of revenue test.--
 (i) Loans of up to $150,000.--For a 
 covered loan of not more than $150,000, 
 the eligible entity--
 (I) may submit a 
 certification attesting that 
 the eligible entity meets the 
 applicable revenue loss 
 requirement under subparagraph 
 (A)(iv)(I)(bb); and
 (II) if the eligible entity 
 submits a certification under 
 subclause (I), shall, on or 
 before the date on which the 
 eligible entity submits an 
 application for forgiveness 
 under subparagraph (J), produce 
 adequate documentation that the 
 eligible entity met such 
 revenue loss standard.
 (ii) For nonprofit and veterans 
 organizations.--For purposes of 
 calculating gross receipts under 
 subparagraph (A)(iv)(I)(bb) for an 
 eligible entity that is a nonprofit 
 organization, a veterans organization, 
 or an organization described in 
 subparagraph (A)(iv)(II), gross 
 receipts means gross receipts within 
 the meaning of section 6033 of the 
 Internal Revenue Code of 1986.
 (J) Loan forgiveness.--
 (i) Definition of covered period.--In 
 this subparagraph, the term ``covered 
 period'' has the meaning given that 
 term in section 7A(a).
 (ii) Forgiveness generally.--Except 
 as otherwise provided in this 
 subparagraph, an eligible entity shall 
 be eligible for forgiveness of 
 indebtedness on a covered loan in the 
 same manner as an eligible recipient 
 with respect to a loan made under 
 paragraph (36) of this section, as 
 described in section 7A.
 (iii) Forgiveness amount.--An 
 eligible entity shall be eligible for 
 forgiveness of indebtedness on a 
 covered loan in an amount equal to the 
 sum of the following costs incurred or 
 expenditures made during the covered 
 period:
 (I) Payroll costs, excluding 
 any payroll costs that are--
 (aa) qualified wages, 
 as defined in 
 subsection (c)(3) of 
 section 2301 of the 
 CARES Act (26 U.S.C. 
 3111 note), taken into 
 account in determining 
 the credit allowed 
 under such section;
 (bb) qualified wages 
 taken into account in 
 determining the credit 
 allowed under 
 subsection (a) or (d) 
 of section 303 of the 
 Taxpayer Certainty and 
 Disaster Relief Act of 
 2020; or
 (cc) premiums taken 
 into account in 
 determining the credit 
 allowed under section 
 6432 of the Internal 
 Revenue Code of 1986.
 (II) Any payment of interest 
 on any covered mortgage 
 obligation (which shall not 
 include any prepayment of or 
 payment of principal on a 
 covered mortgage obligation).
 (III) Any covered operations 
 expenditure.
 (IV) Any covered property 
 damage cost.
 (V) Any payment on any 
 covered rent obligation.
 (VI) Any covered utility 
 payment.
 (VII) Any covered supplier 
 cost.
 (VIII) Any covered worker 
 protection expenditure.
 (iv) Limitation on forgiveness for 
 all eligible entities.--Subject to any 
 reductions under section 7A(d), the 
 forgiveness amount under this 
 subparagraph shall be equal to the 
 lesser of--
 (I) the amount described in 
 clause (ii); and
 (II) the amount equal to the 
 quotient obtained by dividing--
 (aa) the amount of 
 the covered loan used 
 for payroll costs 
 during the covered 
 period; and
 (bb) 0.60.
 (v) Submission of materials for 
 forgiveness.--For purposes of applying 
 subsection (l)(1) of section 7A to a 
 covered loan of not more than $150,000 
 under this paragraph, an eligible 
 entity may be required to provide, at 
 the time of the application for 
 forgiveness, documentation required to 
 substantiate revenue loss in accordance 
 with subparagraph (I).
 (K) Lender eligibility.--Except as otherwise 
 provided in this paragraph, a lender approved 
 to make loans under paragraph (36) may make 
 covered loans under the same terms and 
 conditions as in paragraph (36).
 (L) Reimbursement for loan processing and 
 servicing.--The Administrator shall reimburse a 
 lender authorized to make a covered loan--
 (i) for a covered loan of not more 
 than $50,000, in an amount equal to the 
 lesser of--
 (I) 50 percent of the balance 
 of the financing outstanding at 
 the time of disbursement of the 
 covered loan; or
 (II) $2,500;
 (ii) at a rate, based on the balance 
 of the financing outstanding at the 
 time of disbursement of the covered 
 loan, of--
 (I) 5 percent for a covered 
 loan of more than $50,000 and 
 not more than $350,000; and
 (II) 3 percent for a covered 
 loan of more than $350,000.
 (M) Publication of guidance.--Not later than 
 10 days after the date of enactment of this 
 paragraph, the Administrator shall issue 
 guidance addressing barriers to accessing 
 capital for minority, underserved, veteran, and 
 women-owned business concerns for the purpose 
 of ensuring equitable access to covered loans.
 (N) Standard operating procedure.--The 
 Administrator shall, to the maximum extent 
 practicable, allow a lender approved to make 
 covered loans to use existing program guidance 
 and standard operating procedures for loans 
 made under this subsection.
 (O) Supplemental covered loans.--A covered 
 loan under this paragraph may only be made to 
 an eligible entity that--
 (i) has received a loan under 
 paragraph (36); and
 (ii) on or before the expected date 
 on which the covered loan under this 
 paragraph is disbursed to the eligible 
 entity, has used, or will use, the full 
 amount of the loan received under 
 paragraph (36).
 (P) Fraud enforcement harmonization.--
 Notwithstanding any other provision of law, any 
 criminal charge or civil enforcement action 
 alleging that a borrower engaged in fraud with 
 respect to a covered loan guaranteed under this 
 paragraph shall be filed not later than 10 
 years after the offense was committed.
 (b) Except as to agricultural enterprises as defined in 
section 18(b)(1) of this Act, the Administration also is 
empowered to the extent and in such amounts as provided in 
advance in appropriation Acts--
 (1)(A) to make such loans (either directly or in 
 cooperation with banks or other lending institutions 
 through agreements to participate on an immediate or 
 deferred (guaranteed) basis) as the Administration may 
 determine to be necessary or appropriate to repair, 
 rehabilitate or replace property, real or personal, 
 damaged or destroyed by or as a result of natural or 
 other disasters: Provided, That such damage or 
 destruction is not compensated for by insurance or 
 otherwise: And provided further, That the 
 Administration may increase the amount of the loan by 
 up to an additional 20 per centum of the aggregate 
 costs of such damage or destruction (whether or not 
 compensated for by insurance or otherwise) if it 
 determines such increase to be necessary or appropriate 
 in order to protect the damaged or destroyed property 
 from possible future disasters by taking mitigating 
 measures, including--
 (i) construction of retaining walls and sea 
 walls;
 (ii) grading and contouring land; and
 (iii) relocating utilities and modifying 
 structures, including construction of a safe 
 room or similar storm shelter designed to 
 protect property and occupants from tornadoes 
 or other natural disasters, if such safe room 
 or similar storm shelter is constructed in 
 accordance with applicable standards issued by 
 the Federal Emergency Management Agency;
 (B) to refinance any mortgage or other lien against a 
 totally destroyed or substantially damaged home or 
 business concern: Provided, That no loan or guarantee 
 shall be extended unless the Administration finds that 
 (i) the applicant is not able to obtain credit 
 elsewhere; (ii) such property is to be repaired, 
 rehabilitated, or replaced; (iii) the amount refinanced 
 shall not exceed the amount of physical loss sustained; 
 and (iv) such amount shall be reduced to the extent 
 such mortgage or lien is satisfied by insurance or 
 otherwise; and
 (C) during fiscal years 2000 through 2004, to 
 establish a predisaster mitigation program to make such 
 loans (either directly or in cooperation with banks or 
 other lending institutions through agreements to 
 participate on an immediate or deferred (guaranteed) 
 basis), as the Administrator may determine to be 
 necessary or appropriate, to enable small businesses to 
 use mitigation techniques in support of a formal 
 mitigation program established by the Federal Emergency 
 Management Agency, except that no loan or guarantee may 
 be extended to a small business under this subparagraph 
 unless the Administration finds that the small business 
 is otherwise unable to obtain credit for the purposes 
 described in this subparagraph;
 (2) to make such loans (either directly or in 
 cooperation with banks or other lending institutions 
 through agreements to participate on an immediate or 
 deferred (guaranteed) basis) as the Administration may 
 determine to be necessary or appropriate to any small 
 business concern, private nonprofit organization, or 
 small agricultural cooperative located in an area 
 affected by a disaster, (including drought), with 
 respect to both farm-related and nonfarm-related small 
 business concerns, if the Administration determines 
 that the concern, the organization, or the cooperative 
 has suffered a substantial economic injury as a result 
 of such disaster and if such disaster constitutes--
 (A) a major disaster, as determined by the 
 President under the Robert T. Stafford Disaster 
 Relief and Emergency Assistance Act (42 U.S.C. 
 5121 et seq.);
 (B) a natural disaster, as determined by the 
 Secretary of Agriculture pursuant to section 
 321 of the Consolidated Farm and Rural 
 Development Act (7 U.S.C. 1961), in which case, 
 assistance under this paragraph may be provided 
 to farm-related and nonfarm-related small 
 business concerns, subject to the other 
 applicable requirements of this paragraph;
 (C) a disaster, as determined by the 
 Administrator of the Small Business 
 Administration;
 (D) an emergency involving Federal primary 
 responsibility determined to exist by the 
 President under the section 501(b) of the 
 Robert T. Stafford Disaster Relief and 
 Emergency Assistance Act (42 U.S.C. 5191(b)); 
 or
 (E) if no disaster or emergency declaration 
 has been issued pursuant to subparagraph (A), 
 (B), (C), or (D), the Governor of a State in 
 which a disaster or emergency has occurred may 
 certify to the Small Business Administration 
 that small business concerns, private nonprofit 
 organizations, or small agricultural 
 cooperatives (1) have suffered economic injury 
 as a result of such disaster or emergency, and 
 (2) are in need of financial assistance which 
 is not available on reasonable terms in the 
 disaster- or emergency-stricken area. Not later 
 than 30 days after the date of receipt of such 
 certification by a Governor of a State, the 
 Administration shall respond in writing to that 
 Governor on its determination and the reasons 
 therefore, and may then make such loans as 
 would have been available under this paragraph 
 if a disaster or emergency declaration had been 
 issued.
 Provided, That no loan or guarantee shall be extended 
 pursuant to this paragraph (2) unless the 
 Administration finds that the applicant is not able to 
 obtain credit elsewhere: Provided further, That for 
 purposes of subparagraph (D), the Administrator shall 
 deem that such an emergency affects each State or 
 subdivision thereof (including counties), and that each 
 State or subdivision has sufficient economic damage to 
 small business concerns to qualify for assistance under 
 this paragraph and the Administrator shall accept 
 applications for such assistance immediately.
 (3)(A) In this paragraph--
 (i) the term ``active service'' has the 
 meaning given that term in section 101(d)(3) of 
 title 10, United States Code;
 (ii) the term ``essential employee'' means an 
 individual who is employed by a small business 
 concern and whose managerial or technical 
 expertise is critical to the successful day-to-
 day operations of that small business concern; 
 and
 (iii) the term ``substantial economic 
 injury'' means an economic harm to a business 
 concern that results in the inability of the 
 business concern--
 (I) to meet its obligations as they 
 mature;
 (II) to pay its ordinary and 
 necessary operating expenses; or
 (III) to market, produce, or provide 
 a product or service ordinarily 
 marketed, produced, or provided by the 
 business concern.
 (B) The Administration may make such disaster loans 
 (either directly or in cooperation with banks or other 
 lending institutions through agreements to participate 
 on an immediate or deferred basis) to assist a small 
 business concern that has suffered or that is likely to 
 suffer substantial economic injury as the result of an 
 essential employee of such small business concern being 
 ordered to perform active service for a period of more 
 than 30 consecutive days.
 (C) A small business concern described in 
 subparagraph (B) shall be eligible to apply for 
 assistance under this paragraph during the period 
 beginning on the date on which the essential employee 
 is ordered to active service and ending on the date 
 that is 1 year after the date on which such essential 
 employee is discharged or released from active service. 
 The Administrator may, when appropriate (as determined 
 by the Administrator), extend the ending date specified 
 in the preceding sentence by not more than 1 year.
 (D) Any loan or guarantee extended pursuant to this 
 paragraph shall be made at the same interest rate as 
 economic injury loans under paragraph (2).
 (E) No loan may be made under this paragraph, either 
 directly or in cooperation with banks or other lending 
 institutions through agreements to participate on an 
 immediate or deferred basis, if the total amount 
 outstanding and committed to the borrower under this 
 subsection would exceed $1,500,000, unless such 
 applicant constitutes, or have become due to changed 
 economic circumstances, a major source of employment in 
 its surrounding area, as determined by the 
 Administration, in which case the Administration, in 
 its discretion, may waive the $1,500,000 limitation.
 (F) For purposes of assistance under this paragraph, 
 no declaration of a disaster area shall be required.
 (G)(i) Notwithstanding any other provision of 
 law, the Administrator may make a loan under 
 this paragraph of not more than $50,000 without 
 collateral.
 (ii) The Administrator may defer payment of 
 principal and interest on a loan described in 
 clause (i) during the longer of--
 (I) the 1-year period beginning on 
 the date of the initial disbursement of 
 the loan; and
 (II) the period during which the 
 relevant essential employee is on 
 active service.
 (H) The Administrator shall give priority to 
 any application for a loan under this paragraph 
 and shall process and make a determination 
 regarding such applications prior to processing 
 or making a determination on other loan 
 applications under this subsection, on a 
 rolling basis.
 (4) Coordination with fema.--
 (A) In general.--Notwithstanding any other 
 provision of law, for any disaster declared 
 under this subsection or major disaster 
 (including any major disaster relating to which 
 the Administrator declares eligibility for 
 additional disaster assistance under paragraph 
 (9)), the Administrator, in consultation with 
 the Administrator of the Federal Emergency 
 Management Agency, shall ensure, to the maximum 
 extent practicable, that all application 
 periods for disaster relief under this Act 
 correspond with application deadlines 
 established under the Robert T. Stafford 
 Disaster Relief and Emergency Assistance Act 
 (42 U.S.C. 5121 et seq.), or as extended by the 
 President.
 (B) Deadlines.--Notwithstanding any other 
 provision of law, not later than 10 days before 
 the closing date of an application period for a 
 major disaster (including any major disaster 
 relating to which the Administrator declares 
 eligibility for additional disaster assistance 
 under paragraph (9)), the Administrator, in 
 consultation with the Administrator of the 
 Federal Emergency Management Agency, 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 that includes--
 (i) the deadline for submitting 
 applications for assistance under this 
 Act relating to that major disaster;
 (ii) information regarding the number 
 of loan applications and disbursements 
 processed by the Administrator relating 
 to that major disaster for each day 
 during the period beginning on the date 
 on which that major disaster was 
 declared and ending on the date of that 
 report; and
 (iii) an estimate of the number of 
 potential applicants that have not 
 submitted an application relating to 
 that major disaster.
 (5) Public awareness of disasters.--If a disaster is 
 declared under this subsection or the Administrator 
 declares eligibility for additional disaster assistance 
 under paragraph (9), the Administrator shall make every 
 effort to communicate through radio, television, print, 
 and web-based outlets, all relevant information needed 
 by disaster loan applicants, including--
 (A) the date of such declaration;
 (B) cities and towns within the area of such 
 declaration;
 (C) loan application deadlines related to 
 such disaster;
 (D) all relevant contact information for 
 victim services available through the 
 Administration (including links to small 
 business development center websites);
 (E) links to relevant Federal and State 
 disaster assistance websites, including links 
 to websites providing information regarding 
 assistance available from the Federal Emergency 
 Management Agency;
 (F) information on eligibility criteria for 
 Administration loan programs, including where 
 such applications can be found; and
 (G) application materials that clearly state 
 the function of the Administration as the 
 Federal source of disaster loans for homeowners 
 and renters.
 (6) Authority for qualified private contractors.--
 (A) Disaster loan processing.--The 
 Administrator may enter into an agreement with 
 a qualified private contractor, as determined 
 by the Administrator, to process loans under 
 this subsection in the event of a major 
 disaster (including any major disaster relating 
 to which the Administrator declares eligibility 
 for additional disaster assistance under 
 paragraph (9)), under which the Administrator 
 shall pay the contractor a fee for each loan 
 processed.
 (B) Loan loss verification services.--The 
 Administrator may enter into an agreement with 
 a qualified lender or loss verification 
 professional, as determined by the 
 Administrator, to verify losses for loans under 
 this subsection in the event of a major 
 disaster (including any major disaster relating 
 to which the Administrator declares eligibility 
 for additional disaster assistance under 
 paragraph (9)), under which the Administrator 
 shall pay the lender or verification 
 professional a fee for each loan for which such 
 lender or verification professional verifies 
 losses.
 (7) Disaster assistance employees.--
 (A) In general.--In carrying out this 
 section, the Administrator may, where 
 practicable, ensure that the number of full-
 time equivalent employees--
 (i) in the Office of the Disaster 
 Assistance is not fewer than 800; and
 (ii) in the Disaster Cadre of the 
 Administration is not fewer than 1,000.
 (B) Report.--In carrying out this subsection, 
 if the number of full-time employees for either 
 the Office of Disaster Assistance or the 
 Disaster Cadre of the Administration is below 
 the level described in subparagraph (A) for 
 that office, not later than 21 days after the 
 date on which that staffing level decreased 
 below the level described in subparagraph (A), 
 the Administrator shall submit to the Committee 
 on Appropriations and the Committee on Small 
 Business and Entrepreneurship of the Senate and 
 the Committee on Appropriations and Committee 
 on Small Business of the House of 
 Representatives, a report--
 (i) detailing staffing levels on that 
 date;
 (ii) requesting, if practicable and 
 determined appropriate by the 
 Administrator, additional funds for 
 additional employees; and
 (iii) containing such additional 
 information, as determined appropriate 
 by the Administrator.
 (8) Increased loan caps.--
 (A) Aggregate loan amounts.--Except as 
 provided in subparagraph (B), and 
 notwithstanding any other provision of law, the 
 aggregate loan amount outstanding and committed 
 to a borrower under this subsection may not 
 exceed $2,000,000.
 (B) Waiver authority.--The Administrator may, 
 at the discretion of the Administrator, 
 increase the aggregate loan amount under 
 subparagraph (A) for loans relating to a 
 disaster to a level established by the 
 Administrator, based on appropriate economic 
 indicators for the region in which that 
 disaster occurred.
 (9) Declaration of eligibility for additional 
 disaster assistance.--
 (A) In general.--If the President declares a 
 major disaster, the Administrator may declare 
 eligibility for additional disaster assistance 
 in accordance with this paragraph.
 (B) Threshold.--A major disaster for which 
 the Administrator declares eligibility for 
 additional disaster assistance under this 
 paragraph shall--
 (i) have resulted in extraordinary 
 levels of casualties or damage or 
 disruption severely affecting the 
 population (including mass 
 evacuations), infrastructure, 
 environment, economy, national morale, 
 or government functions in an area;
 (ii) be comparable to the description 
 of a catastrophic incident in the 
 National Response Plan of the 
 Administration, or any successor 
 thereto, unless there is no successor 
 to such plan, in which case this clause 
 shall have no force or effect; and
 (iii) be of such size and scope 
 that--
 (I) the disaster assistance 
 programs under the other 
 paragraphs under this 
 subsection are incapable of 
 providing adequate and timely 
 assistance to individuals or 
 business concerns located 
 within the disaster area; or
 (II) a significant number of 
 business concerns outside the 
 disaster area have suffered 
 disaster-related substantial 
 economic injury as a result of 
 the incident.
 (C) Additional economic injury disaster loan 
 assistance.--
 (i) In general.--If the Administrator 
 declares eligibility for additional 
 disaster assistance under this 
 paragraph, the Administrator may make 
 such loans under this subparagraph 
 (either directly or in cooperation with 
 banks or other lending institutions 
 through agreements to participate on an 
 immediate or deferred basis) as the 
 Administrator determines appropriate to 
 eligible small business concerns 
 located anywhere in the United States.
 (ii) Processing time.--
 (I) In general.--If the 
 Administrator determines that 
 the average processing time for 
 applications for disaster loans 
 under this subparagraph 
 relating to a specific major 
 disaster is more than 15 days, 
 the Administrator shall give 
 priority to the processing of 
 such applications submitted by 
 eligible small business 
 concerns located inside the 
 disaster area, until the 
 Administrator determines that 
 the average processing time for 
 such applications is not more 
 than 15 days.
 (II) Suspension of 
 applications from outside 
 disaster area.--If the 
 Administrator determines that 
 the average processing time for 
 applications for disaster loans 
 under this subparagraph 
 relating to a specific major 
 disaster is more than 30 days, 
 the Administrator shall suspend 
 the processing of such 
 applications submitted by 
 eligible small business 
 concerns located outside the 
 disaster area, until the 
 Administrator determines that 
 the average processing time for 
 such applications is not more 
 than 15 days.
 (iii) Loan terms.--A loan under this 
 subparagraph shall be made on the same 
 terms as a loan under paragraph (2).
 (D) Definitions.--In this paragraph--
 (i) the term ``disaster area'' means 
 the area for which the applicable major 
 disaster was declared;
 (ii) the term ``disaster-related 
 substantial economic injury'' means 
 economic harm to a business concern 
 that results in the inability of the 
 business concern to--
 (I) meet its obligations as 
 it matures;
 (II) meet its ordinary and 
 necessary operating expenses; 
 or
 (III) market, produce, or 
 provide a product or service 
 ordinarily marketed, produced, 
 or provided by the business 
 concern because the business 
 concern relies on materials 
 from the disaster area or sells 
 or markets in the disaster 
 area; and
 (iii) the term ``eligible small 
 business concern'' means a small 
 business concern--
 (I) that has suffered 
 disaster-related substantial 
 economic injury as a result of 
 the applicable major disaster; 
 and
 (II)(aa) for which not less 
 than 25 percent of the market 
 share of that small business 
 concern is from business 
 transacted in the disaster 
 area;
 (bb) for which not less than 
 25 percent of an input into a 
 production process of that 
 small business concern is from 
 the disaster area; or
 (cc) that relies on a 
 provider located in the 
 disaster area for a service 
 that is not readily available 
 elsewhere.
 (10) Reducing closing and disbursement delays.--The 
 Administrator shall provide a clear and concise 
 notification on all application materials for loans 
 made under this subsection and on relevant websites 
 notifying an applicant that the applicant may submit 
 all documentation necessary for the approval of the 
 loan at the time of application and that failure to 
 submit all documentation could delay the approval and 
 disbursement of the loan.
 (11) Increasing transparency in loan approvals.--The 
 Administrator shall establish and implement clear, 
 written policies and procedures for analyzing the 
 ability of a loan applicant to repay a loan made under 
 this subsection.
 (12) Additional awards to small business development 
 centers, women's business centers, and score for 
 disaster recovery.--
 (A) In general.--The Administration may 
 provide financial assistance to a small 
 business development center, a women's business 
 center described in section 29, the Service 
 Corps of Retired Executives, or any proposed 
 consortium of such individuals or entities to 
 spur disaster recovery and growth of small 
 business concerns located in an area for which 
 the President has declared a major disaster.
 (B) Form of financial assistance.--Financial 
 assistance provided under this paragraph shall 
 be in the form of a grant, contract, or 
 cooperative agreement.
 (C) No matching funds required.--Matching 
 funds shall not be required for any grant, 
 contract, or cooperative agreement under this 
 paragraph.
 (D) Requirements.--A recipient of financial 
 assistance under this paragraph shall provide 
 counseling, training, and other related 
 services, such as promoting long-term 
 resiliency, to small business concerns and 
 entrepreneurs impacted by a major disaster.
 (E) Performance.--
 (i) In general.--The Administrator, 
 in cooperation with the recipients of 
 financial assistance under this 
 paragraph, shall establish metrics and 
 goals for performance of grants, 
 contracts, and cooperative agreements 
 under this paragraph, which shall 
 include recovery of sales, recovery of 
 employment, reestablishment of business 
 premises, and establishment of new 
 small business concerns.
 (ii) Use of estimates.--The 
 Administrator shall base the goals and 
 metrics for performance established 
 under clause (i), in part, on the 
 estimates of disaster impact prepared 
 by the Office of Disaster Assistance 
 for purposes of estimating loan-making 
 requirements.
 (F) Term.--
 (i) In general.--The term of any 
 grant, contract, or cooperative 
 agreement under this paragraph shall be 
 for not more than 2 years.
 (ii) Extension.--The Administrator 
 may make 1 extension of a grant, 
 contract, or cooperative agreement 
 under this paragraph for a period of 
 not more than 1 year, upon a showing of 
 good cause and need for the extension.
 (G) Exemption from other program 
 requirements.--Financial assistance provided 
 under this paragraph is in addition to, and 
 wholly separate from, any other form of 
 assistance provided by the Administrator under 
 this Act.
 (H) Competitive basis.--The Administration 
 shall award financial assistance under this 
 paragraph on a competitive basis.
 (13) Supplemental assistance for contractor 
 malfeasance.--
 (A) In general.--If a contractor or other 
 person engages in malfeasance in connection 
 with repairs to, rehabilitation of, or 
 replacement of real or personal property 
 relating to which a loan was made under this 
 subsection and the malfeasance results in 
 substantial economic damage to the recipient of 
 the loan or substantial risks to health or 
 safety, upon receiving documentation of the 
 substantial economic damage or the substantial 
 risk to health and safety from an independent 
 loss verifier, and subject to subparagraph (B), 
 the Administrator may increase the amount of 
 the loan under this subsection, as necessary 
 for the cost of repairs, rehabilitation, or 
 replacement needed to address the cause of the 
 economic damage or health or safety risk.
 (B) Requirements.--The Administrator may only 
 increase the amount of a loan under 
 subparagraph (A) upon receiving an appropriate 
 certification from the borrower and person 
 performing the mitigation attesting to the 
 reasonableness of the mitigation costs and an 
 assignment of any proceeds received from the 
 person engaging in the malfeasance. The 
 assignment of proceeds recovered from the 
 person engaging in the malfeasance shall be 
 equal to the amount of the loan under this 
 section. Any mitigation activities shall be 
 subject to audit and independent verification 
 of completeness and cost reasonableness.
 (14) Business recovery centers.--
 (A) In general.--The Administrator, acting 
 through the district offices of the 
 Administration, shall identify locations that 
 may be used as recovery centers by the 
 Administration in the event of a disaster 
 declared under this subsection or a major 
 disaster.
 (B) Requirements for identification.--Each 
 district office of the Administration shall--
 (i) identify a location described in 
 subparagraph (A) in each county, 
 parish, or similar unit of general 
 local government in the area served by 
 the district office; and
 (ii) ensure that the locations 
 identified under subparagraph (A) may 
 be used as a recovery center without 
 cost to the Government, to the extent 
 practicable.
 (15) Increased oversight of economic injury disaster 
 loans.--The Administrator shall increase oversight of 
 entities receiving loans under paragraph (2), and may 
 consider--
 (A) scheduled site visits to ensure borrower 
 eligibility and compliance with requirements 
 established by the Administrator; and
 (B) reviews of the use of the loan proceeds 
 by an entity described in paragraph (2) to 
 ensure compliance with requirements established 
 by the Administrator.
 (16) Disaster declaration in rural areas.--
 (A) Definitions.--In this paragraph--
 (i) the term ``rural area'' means any 
 county or other political subdivision 
 of a State, the District of Columbia, 
 or a territory or possession of the 
 United States that is designated as a 
 rural area by the Bureau of the Census; 
 and
 (ii) the term ``significant damage'' 
 means, with respect to property, 
 uninsured losses of not less than 40 
 percent of the estimated fair 
 replacement value or pre-disaster fair 
 market value of the damaged property, 
 whichever is lower.
 (B) Disaster declaration.--For the purpose of 
 making loans under paragraph (1) or (2), the 
 Administrator may declare a disaster in a rural 
 area for which a major disaster was declared by 
 the President under section 401 of the Robert 
 T. Stafford Disaster Relief and Emergency 
 Assistance Act (42 U.S.C. 5170) and for which 
 individual assistance was not authorized under 
 section 408 of such Act (42 U.S.C. 5174) if--
 (i) the Governor of the State or the 
 Chief Executive of the Indian tribal 
 government in which the rural area is 
 located requests such a declaration; 
 and
 (ii) any home, small business 
 concern, private nonprofit 
 organization, or small agricultural 
 cooperative has incurred significant 
 damage in the rural area.
 (C) SBA report.--Not later than 120 days 
 after the date of enactment of this paragraph, 
 and every year thereafter, 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, with respect to 
 the 1-year period preceding submission of the 
 report--
 (i) any economic injury that resulted 
 from a major disaster declared by the 
 President under section 401 of the 
 Robert T. Stafford Disaster Relief and 
 Emergency Assistance Act (42 U.S.C. 
 5170) in a rural area;
 (ii) each request for assistance made 
 by the Governor of a State or the Chief 
 Executive of an Indian tribal 
 government under subparagraph (B)(i) 
 and the response of the Administrator, 
 including the timeline for each 
 response; and
 (iii) any regulatory changes that 
 will impact the ability of communities 
 in rural areas to obtain disaster 
 assistance under this subsection.
 (16) 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 a loan made under this subsection 
 in response to COVID-19 during the covered period (as 
 defined in section 1110(a) of the CARES Act) shall be 
 filed not later than 10 years after the offense was 
 committed.
 No loan under this subsection, including renewals and 
extensions thereof, may be made for a period or periods 
exceeding thirty years: Provided, That the Administrator may 
consent to a suspension in the payment of principal and 
interest charges on, and to an extension in the maturity of, 
the Federal share of any loan under this subsection for a 
period not to exceed five years, if (A) the borrower under such 
loan is a homeowner or a small business concern, (B) the loan 
was made to enable (i) such homeowner to repair or replace his 
home, or (ii) such concern to repair or replace plant or 
equipment which was damaged or destroyed as the result of a 
disaster meeting the requirements of clause (A) or (B) of 
paragraph (2) of this subsection, and (C) the Administrator 
determines such action is necessary to avoid severe financial 
hardship: Provided further, That the provisions of paragraph 
(1) of subsection (d) of this section shall not be applicable 
to any such loan having a maturity in excess of twenty years. 
Notwithstanding any other provision of law, and except as 
provided in subsection (d), the interest rate on the 
Administration's share of any loan made under subsection (b), 
shall not exceed the average annual interest rate on all 
interest-bearing obligations of the United States then forming 
a part of the public debt as computed at the end of the fiscal 
year next preceding the date of the loan and adjusted to the 
nearest one-eight of 1 per centum plus one-quarter of 1 per 
centum: Provided, however, That the interest rate for loans 
made under paragraphs (1) and (2) hereof shall not exceed the 
rate of interest which is in effect at the time of the 
occurrence of the disaster. In agreements to participate in 
loans on a deferred basis under this subsection, such 
participation by the Administration shall not be in excess of 
90 per centum of the balance of the loan outstanding at the 
time of disbursement. Notwithstanding any other provision of 
law, the interest rate on the Administration's share of any 
loan made pursuant to paragraph (1) of this subsection to 
repair or replace a primary residence and/or replace or repair 
damaged or destroyed personal property, less the amount of 
compensation by insurance or otherwise, with respect to a 
disaster occurring on or after July 1, 1976, and prior to 
October 1, 1978, shall be: 1 per centum on the amount of such 
loan not exceeding $10,000, and 3 per centum on the amount of 
such loan over $10,000 but not exceeding $40,000. The interest 
rate on the Administration's share of the first $250,000 of all 
other loans made pursuant to paragraph (1) of this subsection, 
with respect to a disaster occurring on or after July 1, 1976, 
and prior to October 1, 1978, shall be 3 per centum. All 
repayments of principal on the Administration's share of any 
loan made under the above provisions shall first be applied to 
reduce the principal sum of such loan which bears interest at 
the lower rates provided in this paragraph. The principal 
amount of any loan made pursuant to paragraph (1) in connection 
with a disaster which occurs on or after April 1, 1977, but 
prior to January 1, 1978, may be increased by such amount, but 
not more than $2,000, as the Administration determines to be 
reasonable in light of the amount and nature of loss, damage, 
or injury sustained in order to finance the installation of 
insulation in the property which was lost, damaged, or injured, 
if the uninsured, damaged portion of the property is 10 per 
centum or more of the market value of the property at the time 
of the disaster. No later than June 1, 1978, the Administration 
shall prepare and transmit to the Select Committee on Small 
Business of the Senate, the Committee on Small Business of the 
House of Representatives, and the Committee of the Senate and 
House of Representatives having jurisdiction over measures 
relating to energy conservation, a report on its activities 
under this paragraph, including therein an evaluation of the 
effect of such activities on encouraging the installation of 
insulation in property which is repaired or replaced after a 
disaster which is subject to this paragraph, and its 
recommendations with respect to the continuation, modification, 
or termination of such activities.
 In the administration of the disaster loan program under 
paragraphs (1) and (2) of this subsection, in the case of 
property loss or damage or injury resulting from a major 
disaster as determined by the President or a disaster as 
determined by the Administrator which occurs on or after 
January 1, 1971, and prior to July 1, 1973, the Small Business 
Administration, to the extent such loss or damage or injury is 
not compensated for by insurance or otherwise--
 (A) may make any loan for repair, rehabilitation, or 
 replacement of property damaged or destroyed without 
 regard to whether the required financial assistance is 
 otherwise available from private sources;
 (B) may, in the case of the total destruction or 
 substantial property damage of a home or business 
 concern, refinance any mortgage or other liens 
 outstanding against the destroyed or damaged property 
 if such project is to be repaired, rehabilitated, or 
 replaced, except that (1) in the case of a business 
 concern, the amount refinanced shall not exceed the 
 amount of the physical loss sustained, and (2) in the 
 case of a home, the amount of each monthly payment of 
 principal and interest on the loan after refinancing 
 under this clause shall be not less than the amount of 
 each such payment made prior to such refinancing;
 (C) may, in the case of a loan made under clause (A) 
 or a mortgage or other lien refinanced under clause (B) 
 in connection with the destruction of, or substantial 
 damage to, property owned and used as a residence by an 
 individual who by reason of retirement, disability, or 
 other similar circumstances relies for support on 
 survivor, disability, or retirement benefits under a 
 pension, insurance, or other program, consent to the 
 suspension of the payments of the principal of that 
 loan, mortgage, or lien during the lifetime of that 
 individual and his souse for so long as the 
 Administration determines that making such payments 
 would constitute a substantial hardship;
 (D) shall, notwithstanding the provisions of any 
 other law and upon presentation by the applicant of 
 proof of loss or damage or injury and a bona fide 
 estimate of cost of repair, rehabilitation, or 
 replacement, cancel the principal of any loan made to 
 cover a loss or damage or injury resulting from such 
 disaster, except that--
 (i) with respect to a loan made in connection 
 with a disaster occurring on or after January 
 1, 1971 but prior to January 1, 1972, the total 
 amount so canceled shall not exceed $2,500, and 
 the interest on the balance of the loan shall 
 be at a rate of 3 per centum per annum; and
 (ii) with respect to a loan made in 
 connection with a disaster occurring on or 
 after January 1, 1972 but prior to July 1, 
 1973, the total amount so canceled shall not 
 exceed $5,000, and the interest on the balance 
 of the loan shall be at a rate of 1 per centum 
 per annum.
 With respect to any loan referred to in clause (D) which is 
outstanding on the date of enactment of this paragraph, the 
Administrator shall--
 (i) make sure change in the interest rate on the 
 balance of such loan as is required under that clause 
 effective as of such date of enactment; and
 (ii) in applying the limitation set forth in that 
 clause with respect to the total amount of such loan 
 which may be canceled, consider as part of the amount 
 so canceled any part of such loan which was previously 
 canceled pursuant to section 231 of the Disaster Relief 
 Act of 1970.
 Whoever wrongfully misapplies the proceeds of a loan obtained 
under this subsection shall be civilly liable to the 
Administrator in an amount equal to one-and-one-half times the 
original principal amount of the loan.
 (E) A State grant made on or prior to July 1, 1979, 
 shall not be considered compensation for the purpose of 
 applying the provisions of section 312(a) of the 
 Disaster Relief and Emergency Assistance Act to a 
 disaster loan under paragraph (1) (2)of this 
 subsection.
 (c) Private Disaster Loans.--
 (1) Definitions.--In this subsection--
 (A) the term ``disaster area'' means any area 
 for which the President declared a major 
 disaster relating to which the Administrator 
 declares eligibility for additional disaster 
 assistance under subsection (b)(9), during the 
 period of that major disaster declaration;
 (B) the term ``eligible individual'' means an 
 individual who is eligible for disaster 
 assistance under subsection (b)(1) relating to 
 a major disaster relating to which the 
 Administrator declares eligibility for 
 additional disaster assistance under subsection 
 (b)(9);
 (C) the term ``eligible small business 
 concern'' means a business concern that is--
 (i) a small business concern, as 
 defined under this Act; or
 (ii) a small business concern, as 
 defined in section 103 of the Small 
 Business Investment Act of 1958;
 (D) the term ``preferred lender'' means a 
 lender participating in the Preferred Lender 
 Program;
 (E) the term ``Preferred Lender Program'' has 
 the meaning given that term in subsection 
 (a)(2)(C)(ii); and
 (F) the term ``qualified private lender'' 
 means any privately-owned bank or other lending 
 institution that--
 (i) is not a preferred lender; and
 (ii) the Administrator determines 
 meets the criteria established under 
 paragraph (10).
 (2) Program required.--The Administrator shall carry 
 out a program, to be known as the Private Disaster 
 Assistance program, under which the Administration may 
 guarantee timely payment of principal and interest, as 
 scheduled, on any loan made to an eligible small 
 business concern located in a disaster area and to an 
 eligible individual.
 (3) Use of loans.--A loan guaranteed by the 
 Administrator under this subsection may be used for any 
 purpose authorized under subsection (b).
 (4) Online applications.--
 (A) Establishment.--The Administrator may 
 establish, directly or through an agreement 
 with another entity, an online application 
 process for loans guaranteed under this 
 subsection.
 (B) Other federal assistance.--The 
 Administrator may coordinate with the head of 
 any other appropriate Federal agency so that 
 any application submitted through an online 
 application process established under this 
 paragraph may be considered for any other 
 Federal assistance program for disaster relief.
 (C) Consultation.--In establishing an online 
 application process under this paragraph, the 
 Administrator shall consult with appropriate 
 persons from the public and private sectors, 
 including private lenders.
 (5) Maximum amounts.--
 (A) Guarantee percentage.--The Administrator 
 may guarantee not more than 85 percent of a 
 loan under this subsection.
 (B) Loan amount.--The maximum amount of a 
 loan guaranteed under this subsection shall be 
 $2,000,000.
 (6) Terms and conditions.--A loan guaranteed under 
 this subsection shall be made under the same terms and 
 conditions as a loan under subsection (b).
 (7) Lenders.--
 (A) In general.--A loan guaranteed under this 
 subsection made to--
 (i) a qualified individual may be 
 made by a preferred lender; and
 (ii) a qualified small business 
 concern may be made by a qualified 
 private lender or by a preferred lender 
 that also makes loans to qualified 
 individuals.
 (B) Compliance.--If the Administrator 
 determines that a preferred lender knowingly 
 failed to comply with the underwriting 
 standards for loans guaranteed under this 
 subsection or violated the terms of the 
 standard operating procedure agreement between 
 that preferred lender and the Administration, 
 the Administrator shall do 1 or more of the 
 following:
 (i) Exclude the preferred lender from 
 participating in the program under this 
 subsection.
 (ii) Exclude the preferred lender 
 from participating in the Preferred 
 Lender Program for a period of not more 
 than 5 years.
 (8) Fees.--
 (A) In general.--The Administrator may not 
 collect a guarantee fee under this subsection.
 (B) Origination fee.--The Administrator may 
 pay a qualified private lender or preferred 
 lender an origination fee for a loan guaranteed 
 under this subsection in an amount agreed upon 
 in advance between the qualified private lender 
 or preferred lender and the Administrator.
 (9) Documentation.--A qualified private lender or 
 preferred lender may use its own loan documentation for 
 a loan guaranteed by the Administrator under this 
 subsection, to the extent authorized by the 
 Administrator. The ability of a lender to use its own 
 loan documentation for a loan guaranteed under this 
 subsection shall not be considered part of the criteria 
 for becoming a qualified private lender under the 
 regulations promulgated under paragraph (10).
 (10) Implementation regulations.--
 (A) In general.--Not later than 1 year after 
 the date of enactment of the Small Business 
 Disaster Response and Loan Improvements Act of 
 2008, the Administrator shall issue final 
 regulations establishing permanent criteria for 
 qualified private lenders.
 (B) Report to congress.--Not later than 6 
 months after the date of enactment of the Small 
 Business Disaster Response and Loan 
 Improvements Act of 2008, the Administrator 
 shall submit a report on the progress of the 
 regulations required by subparagraph (A) to the 
 Committee on Small Business and 
 Entrepreneurship of the Senate and the 
 Committee on Small Business of the House of 
 Representatives.
 (11) Authorization of appropriations.--
 (A) In general.--Amounts necessary to carry 
 out this subsection shall be made available 
 from amounts appropriated to the Administration 
 to carry out subsection (b).
 (B) Authority to reduce interest rates and 
 other terms and conditions.--Funds appropriated 
 to the Administration to carry out this 
 subsection, may be used by the Administrator to 
 meet the loan terms and conditions specified in 
 paragraph (6).
 (12) Purchase of loans.--The Administrator may enter 
 into an agreement with a qualified private lender or 
 preferred lender to purchase any loan guaranteed under 
 this subsection.
 (d)(1) The Administration may further extend the maturity of 
or renew any loan made pursuant to this section, or any loan 
transferred to the Administration pursuant to Reorganization 
Plan Numbered 2 of 1954, or Reorganization Plan Numbered 1 of 
1957, for additional periods not to exceed ten years beyond the 
period stated therein, if such extension or renewal will aid in 
the orderly liquidation of such loan.
 (2) During any period in which principal and interest 
 charges are suspended on the Federal share of any loan, 
 as provided in subsection (b), the Administrator shall, 
 upon the request of any person, firm, or corporation 
 having a participation in such loan, purchase such 
 participation, or assume the obligation of the 
 borrower, for the balance of such period, to make 
 principal and interest payments on the non-Federal 
 share of such loan: Provided, That no such payments 
 shall be made by the Administrator in behalf of any 
 borrower unless (i) the Administrator determines that 
 such action is necessary in order to avoid a default, 
 and (ii) the borrower agrees to make payments to the 
 Administration in an agreegate amount equal to the 
 amount paid in its behalf by the Administrator, in such 
 manner and at such time (during or after the term of 
 the loan) as the Administrator shall determine having 
 due regard to the purposes sought to be achieved by 
 this paragraph.
 (3) With respect to a disaster occurring on or after 
 October 1, 1978, and prior the effective date of this 
 Act, on the Administration's share of loans made 
 pursuant to paragraph (1) of subsection (b)--
 (A) if the loan proceeds are to 
 repair or replace a primary residence 
 and/or repair or replace damaged or 
 destroyed personal property, the 
 interest rate shall be 3 percent on the 
 first $55,000 of such loan;
 (B) if the loan proceeds are to 
 repair or replace property damaged or 
 destroyed and if the applicant is a 
 business concern which is unable to 
 obtain sufficient credit elsewhere, the 
 interest rate shall be as determined by 
 the Administration, but not in excess 
 of 5 percent per annum; and
 (C) if the loan proceeds are to repair or 
 replace property damaged or destroyed and if 
 the applicant is a business concern which is 
 able to obtain sufficient credit elsewhere, the 
 interest rate shall not exceed the current 
 average market yield on outstanding marketable 
 obligations of the United States with remaining 
 periods to maturity comparable to the average 
 maturities of such loans and adjusted to the 
 nearest one-eight of 1 percent, and an 
 additional amount as determined by the 
 Administration, but not to exceed 1 percent: 
 Provided, That three years after such loan is 
 fully disbursed and every two years thereafter 
 for the term of the loan, if the Administration 
 determines that the borrower is able to obtain 
 a loan from one-Federal sources at reasonable 
 rates and terms for loans of similar purposes 
 and periods of time, the borrower shall, upon 
 request by the Administration, apply for and 
 accept such a loan in sufficient amount to 
 repay the Administration: Provided further, 
 That no loan under subsection (b)(1) shall be 
 made, either directly or in cooperation with 
 banks or other lending institutions through 
 agreements to participate on an immediate or 
 deferred basis, if the total amount outstanding 
 and committed to the borrower under such 
 subsection would exceed $500,000 for each 
 disaster, unless an applicant constitutes a 
 major source of employment in an area suffering 
 a disaster, in which case the Administration, 
 in its discretion, may waive the $500,000 
 limitation.
 (4) Notwithstanding the provisions of any other law, 
 the interest rate on the Federal share of any loan made 
 under subsection (b) shall be--
 (A) in the case of a homeowner unable to 
 secure credit elsewhere, the rate prescribed by 
 the Administration but not more than one-half 
 the rate determined by the Secretary of the 
 Treasury taking into consideration the current 
 average market yield on outstanding marketable 
 obligations of the United States with remaining 
 periods to maturity comparable to the average 
 maturities of such loans plus an additional 
 charge of not to exceed 1 per centum per annum 
 as determined by the Administrator, and 
 adjusted to the nearest one-eight of 1 per 
 centum but not to exceed 8 per centum per 
 annum;
 (B) in the case of a homeowner able to secure 
 credit elsewhere, the rate prescribed by the 
 Administration but not more than the rate 
 determined by the Secretary of the Treasury 
 taking into consideration the current average 
 market yield on outstanding marketable 
 obligations of the United States with remaining 
 periods to maturity comparable to the average 
 maturities of such loans plus an additional 
 charge of not to exceed 1 per centum per annum 
 as determined by the Administrator, and 
 adjusted to the nearest one-eighth of 1 per 
 centum;
 (C) in the case of a business concern unable 
 to obtain credit elsewhere, not to exceed 8 per 
 centum per annum;
 (D) in the case of a business concern able to 
 obtain credit elsewhere, the rate prescribed by 
 the Administration but not in excess of the 
 rate prevailing in private market for similar 
 loans and not more than the rate prescribed by 
 the Administration as the maximum interest rate 
 for deferred participation (guaranteed) loans 
 under section 7(a) of this Act. Loans under 
 this subparagraph shall be limited to a maximum 
 term of three years.
 (5) Notwithstanding the provisions of any other law, 
 the interest rate on the Federal share of any loan made 
 under subsection (b)(1) and (b)(2) on account of a 
 disaster commencing on or after October 1, 1982, shall 
 be--
 (A) in the case of a homeowner unable to 
 secure credit elsewhere, the rate prescribed by 
 the Administration but not more than one-half 
 the rate determined by the Secretary of the 
 Treasury taking into consideration the current 
 average market yield on outstanding marketable 
 obligations of the United States with remaining 
 periods to maturity comparable to the average 
 maturities of such loan plus an additional 
 charge of not to exceed 1 per centum per annum 
 as determined by the Administrator, and 
 adjusted to the nearest one-eighth of 1 per 
 centum, but not to exceed 4 per centum per 
 annum;
 (B) in the case of a homeowner, able to 
 secure credit elsewhere, the rate prescribed by 
 the Administration but not more than the rate 
 determined by the Secretary of the Treasury 
 taking into consideration the current average 
 market yield on outstanding marketable 
 obligations of the United States with remaining 
 periods to maturity comparable to the average 
 maturities of such loans plus an additional 
 charge of not to exceed 1 per centum per annum 
 as determined by the Administrator, and 
 adjusted to the nearest one-eighth of 1 per 
 centum, but not to exceed 8 per centum per 
 annum;
 (C) in the case of a business, private 
 nonprofit organization, or other concern, 
 including agricultural cooperatives, unable to 
 obtain credit elsewhere, not to exceed 4 per 
 centum per annum;
 (D) in the case of a business concern able to 
 obtain credit elsewhere, the rate prescribed by 
 the Administration but not in excess of the 
 lowest of (i) the rate prevailing in the 
 private market for similar loans, (ii) the rate 
 prescribed by the Administration as the maximum 
 interest rate for deferred participation 
 (guaranteed) loans under section 7(a) of this 
 Act, or (iii) 8 per centum per annum. Loans 
 under this subparagraph shall be limited to a 
 maximum term of 7 years.
 (6) Notwithstanding the provisions of any other law, 
 such loans, subject to the reductions required by 
 subparagraphs (A) and (B) of paragraph 7(b)(1), shall 
 be in amounts equal to 100 per centum of loss. The 
 interest rate for loans made under paragraphs 7(b)(1) 
 and (2), as determined pursuant to paragraph (5), shall 
 be the rate of interest which is in effect on the date 
 of the disaster commenced: Provided, That no loan under 
 paragraphs 7(b) (1) and (2) shall be made, either 
 directly or in cooperation with banks or other lending 
 institutions through agreements to participate on an 
 immediate or deferred (guaranteed) basis, if the total 
 amount outstanding and committed to the borrower under 
 subsection 7(b) would exceed $500,000 for each disaster 
 unless an applicant constitutes a major source of 
 employment in an area suffering a disaster, in which 
 case the Administration, in its discretion, may waive 
 the $500,000 limitation: Provided further, That the 
 Administration, subject to the reductions required by 
 subparagraphs (A) and (B) of paragraph 7(b)(1), shall 
 not reduce the amount of eligibility for any homeowner 
 on account of loss of real estate to less than $100,000 
 for each disaster nor for any homeowner or lessee on 
 account of loss of personal property to less than 
 $20,000 for each disaster, such sums being in addition 
 to any eligible refinancing: Provided further, That the 
 Administration shall not require collateral for loans 
 of $14,000 or less (or such higher amount as the 
 Administrator determines appropriate in the event of a 
 major disaster) which are made under paragraph (1) of 
 subsection (b): Provided further, That the 
 Administrator, in obtaining the best available 
 collateral for a loan of not more than $200,000 under 
 paragraph (1) or (2) of subsection (b) relating to 
 damage to or destruction of the property of, or 
 economic injury to, a small business concern, shall not 
 require the owner of the small business concern to use 
 the primary residence of the owner as collateral if the 
 Administrator determines that the owner has other 
 assets of equal quality and with a value equal to or 
 greater than the amount of the loan that could be used 
 as collateral for the loan: Provided further, That 
 nothing in the preceding proviso may be construed to 
 reduce the amount of collateral required by the 
 Administrator in connection with a loan described in 
 the preceding proviso or to modify the standards used 
 to evaluate the quality (rather than the type) of such 
 collateral. Employees of concerns sharing a common 
 business premises shall be aggregated in determining 
 ``major source of employment'' status for nonprofit 
 applicants owning such premises.
With respect to any loan which is outstanding on the date of 
enactment of this paragraph and which was made on account of a 
disaster commencing on or after October 1, 1982, the 
Administrator shall made such change in the interest rate on 
the balance of such loan as is required herein effective as of 
the date of enactment.
 (7) The Administration shall not withhold disaster assistance 
pursuant to this paragraph to nurseries who are victims of 
drought disasters. As used in section 7(b)(2) the term ``an 
area affected by a disaster'' includes any county, or county 
contiguous thereto, determined to be a disaster by the 
President, the Secretary of Agriculture or the Administrator of 
the Small Business Administration.
 (8) Disaster loans for superstorm sandy.--
 (A) In general.--Notwithstanding any other 
 provision of law, and subject to the same 
 requirements and procedures that are used to 
 make loans pursuant to subsection (b), a small 
 business concern, homeowner, nonprofit entity, 
 or renter that was located within an area and 
 during the time period with respect to which a 
 major disaster was declared by the President 
 under section 401 of the Robert T. Stafford 
 Disaster Relief and Emergency Assistance Act 
 (42 U.S.C. 5170) by reason of Superstorm Sandy 
 may apply to the Administrator--
 (i) for a loan to repair, 
 rehabilitate, or replace property 
 damaged or destroyed by reason of 
 Superstorm Sandy; or
 (ii) if such a small business concern 
 has suffered substantial economic 
 injury by reason of Superstorm Sandy, 
 for a loan to assist such a small 
 business concern.
 (B) Timing.--The Administrator shall select 
 loan recipients and make available loans for a 
 period of not less than 1 year after the date 
 on which the Administrator carries out this 
 authority.
 (C) Inspector general review.--Not later than 
 6 months after the date on which the 
 Administrator begins carrying out this 
 authority, the Inspector General of the 
 Administration shall initiate a review of the 
 controls for ensuring applicant eligibility for 
 loans made under this paragraph.
 (e) The Administration shall not fund any Small Business 
Development Center or any variation thereof, except as 
authorized in section 21 of this Act.
 (f) Additional Requirements for 7(b) Loans.--
 (1) Increased deferment authorized.--
 (A) In general.--In making loans under 
 subsection (b), the Administrator may provide, 
 to the person receiving the loan, an option to 
 defer repayment on the loan.
 (B) Period.--The period of a deferment under 
 subparagraph (A) may not exceed 4 years.
 (g) Net Earnings Clauses Prohibited for 7(b) Loans.--In 
making loans under subsection (b), the Administrator shall not 
require the borrower to pay any non-amortized amount for the 
first five years after repayment begins.
 (e) [RESERVED].
 (f) [RESERVED].
 (h)(1) The Administration also is empowered, where other 
financial assistance is not available on reasonable terms, to 
make such loans (either directly or in cooperation with Banks 
or other lending institutions through agreements to participate 
on an immediate or deferred basis) as the Administration may 
determine to be necessary or appropriate--
 (A) to assist any public or private organization--
 (i) which is organized under the laws of the 
 United States or of any State, operated in the 
 interest of handicapped individuals, the net 
 income of which does not inure in whole or in 
 part to the benefit of any shareholder or other 
 individual;
 (ii) which complies with any applicable 
 occupational health and safety standard 
 prescribed by the Secretary of Labor; and
 (iii) which, in the production of commodities 
 and in the provision of services during any 
 fiscal year in which it receives financial 
 assistance under this subsection, employs 
 handicapped individuals for not less than 75 
 per centum of the man-hours required for the 
 production or provision of the commodities or 
 services; or
 (B) to assist any handicapped individual in 
 establishing, acquiring, or operating a small business 
 concern.
 (2) The Administration's share of any loan made under this 
subsection shall not exceed $350,000, nor may any such loan be 
made if the total amount outstanding and committed (by 
participation or otherwise) to the borrower from the business 
loan and investment fund established by section 4(c)(1)(B) of 
this Act would exceed $350,000. In agreements to participate in 
loans on a deferred basis under this subsection, the 
Administration's participation may total 100 per centum of the 
balance of the loan at the time of disbursement. The 
Administration's share of any loan made under this subsection 
shall bear interest at the rate of 3 per centum per annum. The 
maximum term of any such loan, including extensions and 
renewals thereof, may not exceed fifteen years. All loans made 
under this subsection shall be of such sound value or so 
secured as reasonably to assure repayment: Provided, however, 
That any reasonable doubt shall be resolved in favor of the 
applicant.
 (3) For purposes of this subsection, the term ``handicapped 
individual'' means a person who has a physical, mental, or 
emotional impairment, defect, ailment, disease, or disability 
of a permanent nature which in any way limits the selection of 
any type of employment for which the person would otherwise be 
qualified or qualifiable.
 (i)(1) The Administration also is empowered to make, 
participate (on an immediate basis) in, or guarantee loans, 
repayable in not more than fifteen years, to any small business 
concern, or to any qualified person seeking to establish such a 
concern, when it determines that such loans will further the 
policies established in section 2(b) of this Act, with 
particular emphasis on the preservation or establishment of 
small business concerns located in urban or rural areas with 
high proportions of unemployed or low-income individuals, or 
owned by low-income individuals: Provided, however, That no 
such loans shall be made, participated in, or guaranteed if the 
total of such Federal assistance to a single borrower 
outstanding at any one time would exceed $100,000. The 
Administration may defer payments on the principal of such 
loans for a grace period and use such other methods as it deems 
necessary and appropriate to assure the successful 
establishment and operation of such concern. The Administration 
may, in its discretion, as a condition of such financial 
assistance, require that the borrower take steps to improve his 
management skills by participating in a management training 
program approved by the Administration: Provided, however, That 
any management training program so approved must be of 
sufficient scope and duration to provide reasonable opportunity 
for the individuals served to develop entrepreneurial and 
managerial self-sufficiency.
 (2) The Administration shall encourage, as far as possible, 
the participation of the private business community in the 
program of assistance to such concerns, and shall seek to 
stimulate new private lending activities to such concerns 
through the use of the loan guarantees, participations in 
loans, and pooling arrangements authorized by this subsection.
 (3) To insure an equitable distribution between urban and 
rural areas for loans between $3,500 and $100,000 made under 
this subsection, the Administration is authorized to use the 
agencies and agreements and delegations developed under title 
III of the Economic Opportunity Act of 1964, as amended, as it 
shall determine necessary.
 (4) The Administration shall provide for the continuing 
evaluation of programs under this subsection, including full 
information on the location, income characteristics, and types 
of businesses and individuals assisted, and on new private 
lending activity stimulated, and the results of such evaluation 
together with recommendations shall be included in the report 
required by section 10(a) of this Act.
 (5) Loans made pursuant to this subsection (including 
immediate participation in and guarantees of such loans) shall 
have such terms and conditions as the Administration shall 
determine, subject to the following limitations--
 (A) there is reasonable assurance of repayment of the 
 loan;
 (B) the financial assistance is not otherwise 
 available on reasonable terms from private sources or 
 other Federal, State, or local programs;
 (C) the amount of the loan, together with other funds 
 available, is adequate to assure completion of the 
 project or achievement of the purposes for which the 
 loan is made;
 (D) the loan bears interest at a rate not less than 
 (i) a rate determined by the Secretary of the Treasury, 
 taking into consideration the average market yield on 
 outstanding Treasury obligations of comparable 
 maturity, plus (ii) such additional charge, if any, 
 toward covering other costs of the program as the 
 Administration may determine to be consistent with its 
 purposes: Provided, however, That the rate of interest 
 charged on loans made in redevelopment areas designated 
 under the Public Works and Economic Development Act of 
 1965 (42 U.S.C. 3108 et seq.) shall not exceed the rate 
 currently applicable to new loans made under section 
 201 of that Act (42 U.S.C. 3142); and
 (E) fees not in excess of amounts necessary to cover 
 administrative expenses and probable losses may be 
 required on loan guarantees.
 (6) The Administration shall take such steps as may be 
necessary to insure that, in any fiscal year, at least 50 per 
centum of the amounts loaned or guaranteed pursuant to this 
subsection are allotted to small business concerns located in 
urban areas identified by the Administration as having high 
concentrations of unemployed or low-income individuals or to 
small business concerns owned by low-income individuals. The 
Administration shall define the meaning of low income as it 
applies to owners of small business concerns eligible to be 
assisted under this subsection.
 (7) No financial assistance shall be extended pursuant to 
this subsection when the Administration determines that the 
assistance will be used in relocating establishments from one 
area to another if such relocation would result in an increase 
in unemployment in the area of original location.
 (j)(1) the Administration shall provide financial assistance 
to public or private organizations to pay all or part of the 
cost of projects designated to provide technical or management 
assistance to individuals or enterprises eligible for 
assistance under sections 7(i), 7(j)(10), and 8(a) of this Act, 
with special attention to small businesses located in areas of 
high concentration of unemployed or low-income individuals, to 
small businesses eligible to receive contracts pursuant to 
section 8(a) of this Act.
 (2) Financial assistance under this subsection may be 
provided for projects, including, but not limited to--
 (A) planning and research, including feasibility 
 studies and market research;
 (B) the identification and development of new 
 business opportunities;
 (C) the furnishing of centralized services with 
 regard to public services and Federal Government 
 programs including programs authorized under sections 
 7(i), (7)(j)(10), and 8(a) of this Act;
 (D) the establishment and strengthening of business 
 service agencies, including trade associations and 
 cooperative; and
 (E) the furnishing of business counseling, management 
 training, and legal and other related services, with 
 special emphasis on the development of management 
 training programs using the resources of the business 
 community, including the development of management 
 training opportunities in existing business, and with 
 emphasis in all cases upon providing management 
 training of sufficient scope and duration to develop 
 entrepreneurial and managerial self-sufficiency on the 
 part of the individuals served.
 (3) The Administration shall encourage the placement of 
subcontracts by businesses with small business concerns located 
in area of high concentration of unemployed or low-income 
individuals, with small businesses owned by low-income 
individuals, and with small businesses eligible to receive 
contracts pursuant to section 8(a) of this Act. The 
Administration may provide incentives and assistance to such 
businesses that will aid in the training and upgrading of 
potential subcontractors or other small business concerns 
eligible for assistance under section 7(i), 7(j), and 8(a), of 
this Act.
 (4) The Administration shall give preference to projects 
which promote the ownership, participation in ownership, or 
management of small businesses owned by low-income individuals 
and small businesses eligible to receive contracts pursuant to 
section 8(a) of this Act.
 (5) The financial assistance authorized for projects under 
this subsection includes assistance advanced by grant, 
agreement, or contract.
 (6) The Administration is authorized to make payments under 
grants and contracts entered into under this subsection in lump 
sum or installments, and in advance or by way of reimbursement, 
and in the case of grants, with necessary adjustments on 
account of overpayments or underpayments.
 (7) To the extent feasible, services under this subsection 
shall be provided in a location which is easily accessible to 
the individuals and small business concerns served.
 (9) The Administration shall take such steps as may be 
necessary and appropriate, in coordination and cooperation with 
the heads of other Federal departments and agencies, to insure 
that contracts, subcontracts, and deposits made by the Federal 
Government or with programs aided with Federal funds are placed 
in such way as to further the purposes of sections 7(i), 7(j), 
and 8(a) of this Act.
 (10) There is established with the Administration a small 
business and capital ownership development program (hereinafter 
referred to as the ``Program'') which shall provide assistance 
exclusively for small business concerns eligible to receive 
contracts pursuant to section 8(a) of this Act. The program, 
and all other services and activities authorized under section 
7(j) and 8(a) of this Act, shall be managed by the Associate 
Administrator for Minority Small Business and Capital Ownership 
Development under the supervision of, and responsible to, the 
Administrator.
 (A) The Program shall--
 (i) assist small business concerns 
 participating in the Program (either through 
 public or private organizations) to develop and 
 maintain comprehensive business plans which set 
 forth the Program Participant's specific 
 business targets, objectives, and goals 
 developed and maintained in conformity with 
 subparagraph (D).
 (ii) provide for such other nonfinancial 
 services as deemed necessary for the 
 establishment, preservation, and growth of 
 small business concerns participating in the 
 Program, including but not limited to (I) loan 
 packaging, (II) financing counseling, (III) 
 accounting and bookkeeping assistance, (IV) 
 marketing assistance, and (V) management 
 assistance;
 (iii) assist small business concerns 
 participating in the Program to obtain equity 
 and debt financing;
 (iv) establish regular performance monitoring 
 and reporting systems for small business 
 concerns participating in the Program to assure 
 compliance with their business plans;
 (v) analyze and report the causes of success 
 and failure of small business concerns 
 participating in the Program; and
 (vi) provide assistance necessary to help 
 small business concerns participating in the 
 Program to procure surety bonds, with such 
 assistance including, but not limited to, (I) 
 the preparation of application forms required 
 to receive a surety bond, (II) special 
 management and technical assistance designed to 
 meet the specific needs of small business 
 concerns participating in the Program and which 
 have received or are applying to receive a 
 surety bond, and (III) guarantee from the 
 Administration pursuant to title IV, part B of 
 the Small Business Investment Act of 1958.
 (B) Small business concerns eligible to receive 
 contracts pursuant to section 8(a) of this Act shall 
 participate in the Program.
 (C)(i) A small business concern participating in any 
 program or activity conducted under the authority of 
 this paragraph or eligible for the award of contracts 
 pursuant to section 8(a) on September 1, 1988, shall be 
 permitted continued participation and eligibility in 
 such program or activity for a period of time which is 
 the greater of--
 (I) 9 years less the number of years since 
 the award of its first contract pursuant to 
 section 8(a); or
 (II) its original fixed program participation 
 term (plus any extension thereof) assigned 
 prior to the effective date of this paragraph 
 plus eighteen months.
 (ii) Nothing contained in this subparagraph shall be 
 deemed to prevent the Administration from instituting a 
 termination or graduation pursuant to subparagraph (F) 
 or (H) for issues unrelated to the expiration of any 
 time period limitation.
 (D)(i) Promptly after certification under paragraph 
 (11) a Program Participant shall submit a business plan 
 (hereinafter referred to as the plan'') as described in 
 clause (ii) of this subparagraph for review by the 
 Business Opportunity Specialist assigned to assist such 
 Program Participant. The plan may be a revision of a 
 preliminary business plan submitted by the Program 
 Participant or required by the Administration as a part 
 of the application for certification under this section 
 and shall be designed to result in the Program 
 Participant eliminating the conditions or circumstances 
 upon which the Administration determined eligibility 
 pursuant to section 8(a)(6). Such plan, and subsequent 
 modifications submitted under clause (iii) of this 
 subparagraph, shall be approved by the business 
 opportunity specialist prior to the Program Participant 
 being eligible for award of a contract pursuant to 
 section 8(a).
 (ii) The plans submitted under this 
 subparagraph shall include the following:
 (I) An analysis of market potential, 
 competitive environment, and other 
 business analyses estimating the 
 Program Participant's prospects for 
 profitable operations during the term 
 of program participation and after 
 graduation.
 (II) An analysis of the Program 
 Participant's strengths and weaknesses 
 with particular attention to correcting 
 any financial, managerial, technical, 
 or personnel conditions which are 
 likely to impede the small business 
 concern from receiving contracts other 
 than those awarded under section 8(a).
 (III) Specific targets, objectives, 
 and goals, for the business development 
 of the Program Participant during the 
 next and succeeding years utilizing the 
 results of the analyses conducted 
 pursuant to subclauses (I) and (II).
 (IV) A transition management plan 
 outlining specific steps to assure 
 profitable business operations after 
 graduation (to be incorporated into the 
 Program Participant's plan during the 
 first year of the transitional stage of 
 Program participation).
 (V) Estimates of contract awards 
 pursuant to section 8(a) and from other 
 sources, which the Program Participant 
 will require to meet the specific 
 targets, objectives, and goals for the 
 years covered by its plan. The 
 estimates established shall be 
 consistent with the provisions of 
 subparagraph (I) and section 8(a).
 (iii) Each Program Participant shall annually 
 review its currently approved plan with its 
 Business Opportunity Specialist and modify such 
 plan as may be appropriate. Any modified plan 
 shall be submitted to the Administration for 
 approval. The currently approved plan shall be 
 considered valid until such time as a modified 
 plan is approved by the Business Opportunity 
 Specialist. Annual reviews pertaining to years 
 in the transitional stage of program 
 participation shall require, as appropriate, a 
 written verification that such Program 
 Participant has complied with the requirements 
 of subparagraph (I) relating to attaining 
 business activity from sources other than 
 contracts awarded pursuant to section 8(a).
 (iv) Each Program Participant shall annually 
 forecast its needs for contract awards under 
 section 8(a) for the next program year and the 
 succeeding program year during the review of 
 its business plan, conducted pursuant to clause 
 (iii). Such forecast shall be known as the 
 section 8(a) contract support level and shall 
 be included in the Program Participant's 
 business plan. Such forecast shall include--
 (I) the aggregate dollar value of 
 contract support to be sought on a 
 noncompetitive basis under section 
 8(a), reflecting compliance with the 
 requirements of subparagraph (I) 
 relating to attaining business activity 
 from sources other than contracts 
 awarded pursuant to section 8(a),
 (II) the types of contract 
 opportunities being sought, identified 
 by Standard Industrial Classification 
 (SIC) Code or otherwise,
 (III) an estimate of the dollar value 
 of contract support to be sought on a 
 competitive basis, and
 (IV) such other information as may be 
 requested by the Business Opportunity 
 Specialist to provide effective 
 business development assistance to the 
 Program Participant.
 (E) A small business concern participating in the 
 program conducted under the authority of this paragraph 
 and eligible for the award of contracts pursuant to 
 section 8(a) shall be denied all such assistance if 
 such concern--
 (i) voluntarily elects not to continue 
 participation;
 (ii) completes the period of Program 
 participation as prescribed by paragraph (15);
 (iii) is terminated pursuant to a termination 
 proceeding conducted in accordance with section 
 8(a)(9); or
 (iv) is graduated pursuant to a graduation 
 proceeding conducted in accordance with section 
 8(a)(9).
 (F) For the purposes of section and 8(a), the terms 
 ``terminated'' or ``termination'' means the total 
 denial or suspension of assistance under this paragraph 
 or under section 8(a) prior to the graduation of the 
 participating small business concern or prior to the 
 expiration of the maximum program participation in 
 term. An action for termination shall be based upon 
 good cause, including--
 (i) the failure by such concern to maintain 
 its eligibility for Program participation;
 (ii) the failure of the concern to engage in 
 business practices that will promote its 
 competitiveness within a reasonable period of 
 time as evidenced by, among other indicators, a 
 pattern of unjustified delinquent performance 
 or terminations for default with respect to 
 contracts awarded under the authority of 
 section 8(a);
 (iii) a demonstrated pattern of failing to 
 make required submissions or responses to the 
 Administration in a timely manner;
 (iv) the willful violation of any rule or 
 regulation of the Administration pertaining to 
 material issues;
 (v) the debarment of the concern or its 
 disadvantaged owners by any agency pursuant to 
 subpart 9.4 of title 48, Code of Federal 
 Regulations (or any successor regulation); or
 (vi) the conviction of the disadvantaged 
 owner or an officer of the concern for any 
 offense indicating a lack of business integrity 
 including any conviction for embezzlement, 
 theft, forgery, bribery, falsification or 
 violation of section 16. For purposes of this 
 clause, no termination action shall be taken 
 with respect to a disadvantaged owner solely 
 because of the conviction of an officer of the 
 concern (who is other than a disadvantaged 
 owner) unless such owner conspired with, 
 abetted, or otherwise knowingly acquiesced in 
 the activity or omission that was the basis of 
 such officer's conviction.
 (G) The Director of the Division may initiate a 
 termination proceeding by recommending such action to 
 the Associate Administrator for Minority Small Business 
 and Capital Ownership Development. Whenever the 
 Associate Administrator, or a designee of such officer, 
 determines such termination is appropriate, within 15 
 days after making such a determination the Program 
 Participant shall be provided a written notice of 
 intent to terminate, specifying the reasons for such 
 action. No Program Participant shall be terminated from 
 the Program pursuant to subparagraph (F) without first 
 being afforded an opportunity for a hearing in 
 accordance with section 8(a)(9).
 (H) For the purposes of sections 7(j) and 8(a) the 
 term ``graduated'' or ``graduation'' means that the 
 Program Participant is recognized as successfully 
 completing the program by substantially achieving the 
 targets, objectives, and goals contained in the 
 concern's business plan thereby demonstrating its 
 ability to compete in the marketplace without 
 assistance under this section or section 8(a).
 (I)(i) During the developmental stage of its 
 participation in the Program, a Program Participant 
 shall take all reasonable efforts within its control to 
 attain the targets contained in its business plan for 
 contracts awarded other than pursuant to section 8(a) 
 (hereinafter referred to as ``business activity 
 targets.''). Such efforts shall be made a part of the 
 business plan and shall be sufficient in scope and 
 duration to satisfy the Administration that the Program 
 Participant will engage a reasonable marketing strategy 
 that will maximize its potential to achieve its 
 business activity targets.
 (ii) During the transitional stage of the Program a 
 Program Participant shall be subject to regulations 
 regarding business activity targets that are 
 promulgated by the Administration pursuant to clause 
 (iii);
 (iii) The regulations referred to in clause (ii) 
 shall:
 (I) establish business activity targets 
 applicable to Program Participants during the 
 fifth year and each succeeding year of Program 
 Participation; such targets, for such period of 
 time, shall reflect a reasonably consistent 
 increase in contracts awarded other than 
 pursuant to section 8(a), expressed as a 
 percentage of total sales; when promulgating 
 business activity targets the Administration 
 may establish modified targets for Program 
 Participants that have participated in the 
 Program for a period of longer than four years 
 on the effective date of this subparagraph;
 (II) require a Program Participant to attain 
 its business activity targets;
 (III) provide that, before the receipt of any 
 contract to be awarded pursuant to section 
 8(a), the Program Participant (if it is in the 
 transitional stage) must certify that it has 
 complied with the regulations promulgated 
 pursuant to subclause (II), or that it is in 
 compliance with such remedial measures as may 
 have been ordered pursuant to regulations 
 issued under subclause (V);
 (IV) require the Administration to review 
 each Program Participant's performance 
 regarding attainment of business activity 
 targets during periodic reviews of such 
 Participant's business plan; and
 (V) authorize the Administration to take 
 appropriate remedial measures with respect to a 
 Program Participant that has failed to attain a 
 required business activity target for the 
 purpose of reducing such Participant's 
 dependence on contracts awarded pursuant to 
 section 8(a); such remedial actions may 
 include, but are not limited to assisting the 
 Program Participant to expand the dollar volume 
 of its competitive business activity or 
 limiting the dollar volume of contracts awarded 
 to the Program Participant pursuant to section 
 8(a); except for actions that would constitute 
 a termination, remedial measures taken pursuant 
 to this subclause shall not be reviewable 
 pursuant to section 8(a)(9).
 (J)(i) The Administration shall conduct an evaluation 
 of a Program Participant's eligibility for continued 
 participation in the Program whenever it receives 
 specific and credible information alleging that such 
 Program Participant no longer meets the requirements 
 for Program eligibility. Upon making a finding that a 
 Program Participant is no longer eligible, the 
 Administration shall initiate a termination proceeding 
 in accordance with subparagraph (F). A Program 
 Participant's eligibility for award of any contract 
 under the authority of section 8(a) may be suspended 
 pursuant to subpart 9.4 of title 48, Code of Federal 
 Regulations (or any successor regulation).
 (ii)(I) Except as authorized by subclauses (II) or 
 (III), no award shall be made pursuant to section 8(a) 
 to a concern other than a small business concern.
 (II) In determining the size of a small business 
 concern owned by a socially and economically 
 disadvantaged Indian tribe (or a wholly owned business 
 entity of such tribe), each firm's size shall be 
 independently determined without regard to its 
 affiliation with the tribe, any entity of the tribal 
 government, or any other business enterprise owned by 
 the tribe, unless the Administrator determines that one 
 or more such tribally owned business concerns have 
 obtained, or are likely to obtain, a substantial unfair 
 competitive advantage within an industry category.
 (III) Any joint venture established under the 
 authority of section 602(b) of Public Law 100-656, the 
 ``Business Opportunity Development Reform Act of 
 1988'', shall be eligible for award of a contract 
 pursuant to section 8(a).
 (11)(A) The Associate Administrator for Minority Small 
Business and Capital Ownership Development shall be responsible 
for coordinating and formulating policies relating to Federal 
assistance to small business concerns eligible for assistance 
under section 7(i) of this Act and small business concerns 
eligible to receive contracts pursuant to section 8(a) of this 
Act.
 (B)(i) Except as provided in clause (iii), no 
 individual who was determined pursuant to section 8(a) 
 to be socially and economically disadvantaged before 
 the effective date of this subparagraph shall be 
 permitted to assert such disadvantage with respect to 
 any other concern making application for certification 
 after such effective date.
 (ii) Except as provided in clause (iii), any 
 individual upon whom eligibility is based 
 pursuant to section 8(a)(4) shall be permitted 
 to assert such eligibility for only one small 
 business concern.
 (iii) A socially and economically 
 disadvantaged Indian tribe may own more than 
 one small business concern eligible for 
 assistance pursuant to section 7(j)(10) and 
 section 8(a) if--
 (I) the Indian tribe does not own 
 another firm in the same industry which 
 has been determined to be eligible to 
 receive contracts under this program, 
 and
 (II) the individuals responsible for 
 the management and daily operations of 
 the concern do not manage more than two 
 Program Participants.
 (C) No concern, previously eligible for the award of 
contracts pursuant to section 8(a), shall be subsequently 
recertified for program participation if its prior 
participation in the program was concluded for any of the 
reasons described in paragraph (10)(E).
 (D) A concern eligible for the award of contracts pursuant to 
this subsection shall remain eligible for such contracts if 
there is a transfer of ownership and control (as defined 
pursuant to section 8(a)(4)) to individuals who are determined 
to be socially and economically disadvantaged pursuant to 
section 8(a). In the event of such a transfer, the concern, if 
not terminated or graduated, shall be eligible for a period of 
continued participation in the program not to exceed the time 
limitations prescribed in paragraph (15).
 (E) There is established a Division of Program Certification 
and Eligibility (hereinafter referred to in this paragraph as 
the Division'') that shall be made part of the Office of 
Minority Small Business and Capital Ownership Development. The 
Division shall be headed by a Director who shall report 
directly to the Associate Administrator for Minority Small 
Business and Capital Ownership Development. The Division shall 
establish field offices within such regional offices of the 
Administration as may be necessary to perform efficiently its 
functions and responsibilities.
 (F) Subject to the provisions of section 8(a)(9), the 
functions and responsibility of the Division are to--
 (i) receive, review and evaluate applications for 
 certification pursuant to paragraphs (4), (5), (6) and 
 (7) of section 8(a);
 (ii) advise each program applicant within 15 days 
 after the receipt of an application as to whether such 
 application is complete and suitable for evaluation 
 and, if not, what matters must be rectified;
 (iii) render recommendations on such applications to 
 the Associate Administrator for Minority Small Business 
 and Capital Ownership Development;
 (iv) review and evaluate financial statements and 
 other submissions from concerns participating in the 
 program established by paragraph (10) to ascertain 
 continued eligibility to receive subcontracts pursuant 
 to section 8(a);
 (v) make a request for the initiation of termination 
 or graduation proceedings, as appropriate, to the 
 Associate Administrator for Minority Small Business and 
 Capital Ownership Development;
 (vi) make recommendations to the Associate 
 Administrator for Minority Small Business and Capital 
 Ownership Development concerning protests from 
 applicants that have been denied program admission;
 (vii) decide protests regarding the status of a 
 concern as a disadvantaged concern for purposes of any 
 program or activity conducted under the authority of 
 subsection (d) of section 8, or any other provision of 
 Federal law that references such subsection for a 
 definition of program eligibility; and
 (viii) implement such policy directives as may be 
 issued by the Associate Administrator for Minority 
 Small Business and Capital Ownership Development 
 pursuant to subparagraph (I) regarding, among other 
 things, the geographic distribution of concerns to be 
 admitted to the program and the industrial make-up of 
 such concerns.
 (G) An applicant shall not be denied admission into the 
program established by paragraph (10) due solely to a 
determination by the Division that specific contract 
opportunities are unavailable to assist in the development of 
such concern unless--
 (i) the Government has not previously procured and is 
 unlikely to procure the types of products or services 
 offered by the concern; or
 (ii) the purchases of such products or services by 
 the Federal Government will not be in quantities 
 sufficient to support the developmental needs of the 
 applicant and other Program Participants providing the 
 same or similar items or services.
 (H) Not later than 90 days after receipt of a 
 completed application for Program certification, the 
 Associate Administrator for Minority Small Business and 
 Capital Ownership Development shall certify a small 
 business concern as a Program Participant or shall deny 
 such application.
 (I) Thirty days before the conclusion of each fiscal year, 
the Director of the Division shall review all concerns that 
have been admitted into the Program during the preceding 12-
month period. The review shall ascertain the number of 
entrants, their geographic distribution and industrial 
classification. The Director shall also estimate the expected 
growth of the Program during the next fiscal year and the 
number of additional Business Opportunity Specialists, if any, 
that will be needed to meet the anticipated demand for the 
Program. The findings and conclusions of the Director shall be 
reported to the Associate Administrator for Minority Small 
Business and Capital Ownership Development by September 30 of 
each year. Based on such report and such additional data as may 
be relevant, the Associate Administrator shall, by October 31 
of each year, issue policy and program directives applicable to 
such fiscal year that--
 (i) establish priorities for the solicitation of 
 program applications from underrepresented regions and 
 industry categories;
 (ii) assign staffing levels and allocate other 
 program resources as necessary to meet program needs; 
 and
 (iii) establish priorities in the processing and 
 admission of new Program Participants as may be 
 necessary to achieve an equitable geographic 
 distribution of concerns and a distribution of concerns 
 across all industry categories in proportions needed to 
 increase significantly contract awards to small 
 business concerns owned and controlled by socially and 
 economically disadvantaged individuals. When 
 considering such increase the Administration shall give 
 due consideration to those industrial categories where 
 Federal purchases have be