§ 9009 — Emergency Eidl Grants

(a) In this section— (1) the term “covered period” means the period beginning on January 31, 2020 and ending on December 31, 2021; and (2) the term “eligible entity” means— (A) a business with not more than 500 employees; (B) any individual who operates under a sole proprietorship, with or without employees, or as an independent contractor; (C) a cooperative with not more than 500 employees; (D) an ESOP (as defined in section 632 of this title) with not more than 500 employees; (E) a tribal small business concern, as described in section 657a(b)(2)(C) of this title, with not more than 500 employees; or (F) with not more than 500 employees. (b) During the covered period, in addition to small business concerns, private nonprofit organizations, and small agricultural cooperatives, an eligible entity shall be eligible for a loan made under section 636(b)(2) of this title. (c) With respect to a loan made under section 636(b)(2) of this title in response to COVID–19 during the covered period, the Administrator shall waive— (1) the personal guarantee on advances and loans of not more than $200,000 during the covered period for all applicants; (2) the requirement that an applicant needs to be in business for the 1-year period before the disaster, except that no waiver may be made for a business that was not in operation on January 31, 2020; and (3) that an applicant be unable to obtain credit elsewhere. (d) With respect to a loan made under section 636(b)(2) of this title in response to COVID–19 during the covered period, the Administrator may— (1) approve an applicant— (A) based solely on the credit score of the applicant; or (B) by using alternative appropriate methods to determine an applicant’s ability to repay; and (2) use information from the Department of the Treasury to confirm that— (A) an applicant is eligible to receive such a loan; or (B) the information contained in an application for such a loan is accurate. (A) During the covered period, an entity included for eligibility in subsection (b), including small business concerns, private nonprofit organizations, and small agricultural cooperatives, that applies for a loan under section 636(b)(2) of this title in response to COVID–19 may request that the Administrator provide an advance that is, subject to paragraph (3), in the amount requested by such applicant to such applicant. (B) With respect to each request submitted to the Administrator under subparagraph (A), the Administrator shall, not later than 21 days after the date on which the Administrator receives the request— (i) verify whether the entity is an entity that is eligible for a loan made under section 636(b)(2) of this title during the covered period, as described in subsection (b); (ii) if the Administrator, under clause (i), verifies that the entity submitting the request is an entity that is eligible, as described in that clause, provide the advance requested by the entity; and (iii) with respect to an entity that the Administrator determines is not entitled to receive an advance under this subsection, provide the entity with a notification explaining why the Administrator reached that determination. (2) Before disbursing amounts under this subsection, the Administrator shall verify that the applicant is an eligible entity by accepting a self-certification from the applicant under penalty of perjury pursuant to section 1746 of title 28. (3) The amount of an advance provided under this subsection shall be not more than $10,000. (4) An advance provided under this subsection may be used to address any allowable purpose for a loan made under section 636(b)(2) of this title, including— (A) providing paid sick leave to employees unable to work due to the direct effect of the COVID–19; (B) maintaining payroll to retain employees during business disruptions or substantial slowdowns; (C) meeting increased costs to obtain materials unavailable from the applicant’s original source due to interrupted supply chains; (D) making rent or mortgage payments; and (E) repaying obligations that cannot be met due to revenue losses. (5) An applicant shall not be required to repay any amounts of an advance provided under this subsection, even if subsequently denied a loan under section 636(b)(2) of this title. (6) (7) There is authorized to be appropriated to the Administration $40,000,000,000 to carry out this subsection. (8) The authority to carry out grants under this subsection shall terminate on December 31, 2021. (9) Notwithstanding any other provision of law, any criminal charge or civil enforcement action alleging that a borrower engaged in fraud with respect to the use of an advance received under this subsection shall be filed not later than 10 years after the offense was committed.