Title 15 — Commerce and Trade

Chapter 14A — Aid to Small Business

§ 636m. Loan forgiveness

Statutory text

Definitions

In this section—

the term “covered loan” means a loan guaranteed under section 636(a)(36) of this title;

the term “covered mortgage obligation” means any indebtedness or debt instrument incurred in the ordinary course of business that—

is a liability of the borrower;

is a mortgage on real or personal property; and

was incurred before February 15, 2020;

the term “covered operations expenditure” means a payment for any business software or cloud computing service that facilitates business operations, product or service delivery, the processing, payment, or tracking of payroll expenses, human resources, sales and billing functions, or accounting or tracking of supplies, inventory, records and expenses;

the term “covered period” means the period—

beginning on the date of the origination of a covered loan; and

ending on a date selected by the eligible recipient of the covered loan that occurs during the period—

beginning on the date that is 8 weeks after such date of origination; and

ending on the date that is 24 weeks after such date of origination;

the term “covered property damage cost” means a cost related to property damage and vandalism or looting due to public disturbances that occurred during 2020 that was not covered by insurance or other compensation;

the term “covered rent obligation” means rent obligated under a leasing agreement in force before February 15, 2020;

the term “covered supplier cost” means an expenditure made by an entity to a supplier of goods for the supply of goods that—

are essential to the operations of the entity at the time at which the expenditure is made; and

is made pursuant to a contract, order, or purchase order—

in effect at any time before the covered period with respect to the applicable covered loan; or

with respect to perishable goods, in effect before or at any time during the covered period with respect to the applicable covered loan;

the term “covered utility payment” means payment for a service for the distribution of electricity, gas, water, transportation, telephone, or internet access for which service began before February 15, 2020;

the term “covered worker protection expenditure”—

means an operating or a capital expenditure to facilitate the adaptation of the business activities of an entity to comply with requirements established or guidance issued by the Department of Health and Human Services, the Centers for Disease Control, or the Occupational Safety and Health Administration, or any equivalent requirements established or guidance issued by a State or local government, during the period beginning on March 1, 2020 and ending the date on which the national emergency declared by the President under the National Emergencies Act (50 U.S.C. 1601 et seq.) with respect to the Coronavirus Disease 2019 (COVID–19) expires related to the maintenance of standards for sanitation, social distancing, or any other worker or customer safety requirement related to COVID–19;

may include—

the purchase, maintenance, or renovation of assets that create or expand—

a drive-through window facility;

an indoor, outdoor, or combined air or air pressure ventilation or filtration system;

a physical barrier such as a sneeze guard;

an expansion of additional indoor, outdoor, or combined business space;

an onsite or offsite health screening capability; or

other assets relating to the compliance with the requirements or guidance described in subparagraph (A), as determined by the Administrator in consultation with the Secretary of Health and Human Services and the Secretary of Labor; and

the purchase of—

covered materials described in section 328.103(a) of title 44, Code of Federal Regulations, or any successor regulation;

particulate filtering facepiece respirators approved by the National Institute for Occupational Safety and Health, including those approved only for emergency use authorization; or

other kinds of personal protective equipment, as determined by the Administrator in consultation with the Secretary of Health and Human Services and the Secretary of Labor; and

does not include residential real property or intangible property;

the term “eligible recipient” means the recipient of a covered loan;

the term “expected forgiveness amount” means the amount of principal that a lender reasonably expects a borrower to expend during the covered period on the sum of any—

payroll costs;

payments of interest on any covered mortgage obligation (which shall not include any prepayment of or payment of principal on a covered mortgage obligation);

payments on any covered rent obligation;

covered utility payments;

covered operations expenditures;

covered property damage costs;

covered supplier costs; and

covered worker protection expenditures; and

the terms “payroll costs” and “seasonal employer” have the meanings given those terms in section 636(a)(36) of this title. Such payroll costs shall not include qualified wages taken into account in determining the credit allowed under section 2301 of the CARES Act, 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 premiums taken into account in determining the credit allowed under section 6432 of title 26. Such payroll costs shall not include qualified wages taken into account in determining the credit allowed under subsection (a) or (d) of section 303 of the Taxpayer Certainty and Disaster Tax Relief Act of 2020.1

Forgiveness

An eligible recipient shall be eligible for forgiveness of indebtedness on a covered loan in an amount equal to the sum of the following costs incurred and payments made during the covered period:

Payroll costs.

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).

Any payment on any covered rent obligation.

Any covered utility payment.

Any covered operations expenditure.

Any covered property damage cost.

Any covered supplier cost.

Any covered worker protection expenditure.

Treatment of amounts forgiven

In general

Amounts which have been forgiven under this section shall be considered canceled indebtedness by a lender authorized under section 636(a) of this title.

Purchase of guarantees

For purposes of the purchase of the guarantee for a covered loan by the Administrator, amounts which are forgiven under this section shall be treated in accordance with the procedures that are otherwise applicable to a loan guaranteed under section 636(a) of this title.

Remittance

Not later than 90 days after the date on which the amount of forgiveness under this section is determined, the Administrator shall remit to the lender an amount equal to the amount of forgiveness, plus any interest accrued through the date of payment.

Advance purchase of covered loan

Report

A lender authorized under section 636(a) of this title, or, at the discretion of the Administrator, a third party participant in the secondary market, may, report to the Administrator an expected forgiveness amount on a covered loan or on a pool of covered loans of up to 100 percent of the principal on the covered loan or pool of covered loans, respectively.

Purchase

The Administrator shall purchase the expected forgiveness amount described in subparagraph (A) as if the amount were the principal amount of a loan guaranteed under section 636(a) of this title.

Timing

Not later than 15 days after the date on which the Administrator receives a report under subparagraph (A), the Administrator shall purchase the expected forgiveness amount under subparagraph (B) with respect to each covered loan to which the report relates.

Limits on amount of forgiveness

Amount may not exceed principal

The amount of loan forgiveness under this section shall not exceed the principal amount of the financing made available under the applicable covered loan.

Reduction based on reduction in number of employees

In general

The amount of loan forgiveness under this section shall be reduced, but not increased, by multiplying the amount described in subsection (b) by the quotient obtained by dividing—

the average number of full-time equivalent employees per month employed by the eligible recipient during the covered period; by

at the election of the borrower—

the average number of full-time equivalent employees per month employed by the eligible recipient during the period beginning on February 15, 2019 and ending on June 30, 2019; or

the average number of full-time equivalent employees per month employed by the eligible recipient during the period beginning on January 1, 2020 and ending on February 29, 2020; or

in the case of an eligible recipient that is seasonal employer, as determined by the Administrator, the average number of full-time equivalent employees per month employed by the eligible recipient during the period beginning on February 15, 2019 and ending on June 30, 2019.

Calculation of average number of employees

For purposes of subparagraph (A), the average number of full-time equivalent employees shall be determined by calculating the average number of full-time equivalent employees for each pay period falling within a month.

Reduction relating to salary and wages

In general

The amount of loan forgiveness under this section shall be reduced by the amount of any reduction in total salary or wages of any employee described in subparagraph (B) during the covered period that is in excess of 25 percent of the total salary or wages of the employee during the most recent full quarter during which the employee was employed before the covered period.

Employees described

An employee described in this subparagraph is any employee who did not receive, during any single pay period during 2019, wages or salary at an annualized rate of pay in an amount more than $100,000.

Tipped workers

An eligible recipient with tipped employees described in section 203(m)(2)(A) of title 29 may receive forgiveness for additional wages paid to those employees.

Exemption for re-hires

In general

In a circumstance described in subparagraph (B), the amount of loan forgiveness under this section shall be determined without regard to a reduction in the number of full-time equivalent employees of an eligible recipient or a reduction in the salary of 1 or more employees of the eligible recipient, as applicable, during the period beginning on February 15, 2020 and ending on the date that is 30 days after March 27, 2020.

Circumstances

A circumstance described in this subparagraph is a circumstance—

in which—

during the period beginning on February 15, 2020 and ending on the date that is 30 days after March 27, 2020, there is a reduction, as compared to February 15, 2020, in the number of full-time equivalent employees of an eligible recipient; and

not later than December 31, 2020 (or, with respect to a covered loan made on or after December 27, 2020, not later than the last day of the covered period with respect to such covered loan), the eligible employer has eliminated the reduction in the number of full-time equivalent employees;

in which—

during the period beginning on February 15, 2020 and ending on the date that is 30 days after March 27, 2020, there is a reduction, as compared to February 15, 2020, in the salary or wages of 1 or more employees of the eligible recipient; and

in which the events described in clause (i) and (ii) occur.

Exemptions

The Administrator and the Secretary of the Treasury may prescribe regulations granting de minimis exemptions from the requirements under this subsection.

Exemption based on employee availability

During the period beginning on February 15, 2020, and ending on December 31, 2020 (or, with respect to a covered loan made on or after December 27, 2020, ending on the last day of the covered period with respect to such covered loan), the amount of loan forgiveness under this section shall be determined without regard to a proportional reduction in the number of full-time equivalent employees if an eligible recipient, in good faith—

is able to document—

an inability to rehire individuals who were employees of the eligible recipient on February 15, 2020; and

an inability to hire similarly qualified employees for unfilled positions on or before December 31, 2020 (or, with respect to a covered loan made on or after December 27, 2020, on or before the last day of the covered period with respect to such covered loan); or

is able to document an inability to return to the same level of business activity as such business was operating at before February 15, 2020, due to compliance with requirements established or guidance issued by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and Prevention, or the Occupational Safety and Health Administration during the period beginning on March 1, 2020, and ending December 31, 2020 (or, with respect to a covered loan made on or after December 27, 2020, ending on the last day of the covered period with respect to such covered loan), related to the maintenance of standards for sanitation, social distancing, or any other worker or customer safety requirement related to COVID–19.

Limitation on forgiveness

To receive loan forgiveness under this section, an eligible recipient shall use at least 60 percent of the covered loan amount for payroll costs, and may use up to 40 percent of such amount for 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), any payment on any covered rent obligation, any payment on any covered operations expenditure, any payment on any covered property damage cost, any payment on any covered supplier cost, any payment on any covered worker protection expenditure, or any covered utility payment.

Application

Except as provided in subsection (l), an eligible recipient seeking loan forgiveness under this section shall submit to the lender that is servicing the covered loan an application, which shall include—

documentation verifying the number of full-time equivalent employees on payroll and pay rates for the periods described in subsection (d), including—

payroll tax filings reported to the Internal Revenue Service; and

State income, payroll, and unemployment insurance filings;

documentation, including cancelled checks, payment receipts, transcripts of accounts, purchase orders, orders, invoices, or other documents verifying payments on covered mortgage obligations, payments on covered rent obligations, payments on covered operations expenditures, payments on covered property damage costs, payments on covered supplier costs, payments on covered worker protection expenditures, and covered utility payments;

a certification from a representative of the eligible recipient authorized to make such certifications that—

the documentation presented is true and correct; and

the amount for which forgiveness is requested was used to retain employees, make interest payments on a covered mortgage obligation, make payments on a covered rent obligation, make payments on covered operations expenditures, make payments on covered property damage costs, make payments on covered supplier costs, make payments on covered worker protection expenditures, or make covered utility payments; and

any other documentation the Administrator determines necessary.

Prohibition on forgiveness without documentation

No eligible recipient shall receive forgiveness under this section without submitting to the lender that is servicing the covered loan the documentation required under subsection (e) or the certification required under subsection (l), as applicable.

Decision

Not later than 60 days after the date on which a lender receives an application for loan forgiveness under this section from an eligible recipient, the lender shall issue a decision on the an ¹ application.

Hold harmless

Definition

In this subsection, the term “initial or second draw PPP loan” means a covered loan or a loan under paragraph (37) of section 636(a) of this title.

Reliance

A lender may rely on any certification or documentation submitted by an applicant for an initial or second draw PPP loan or an eligible recipient or eligible entity receiving initial or second draw PPP loan that—

is submitted pursuant to all applicable statutory requirements, regulations, and guidance related to initial or second draw PPP loan, including under paragraph (36) or (37) of section 636(a) of this title and under this section; and

attests that the applicant, eligible recipient, or eligible entity, as applicable, has accurately provided the certification or documentation to the lender in accordance with the statutory requirements, regulations, and guidance described in subparagraph (A).

No enforcement action

With respect to a lender that relies on a certification or documentation described in paragraph (2) related to an initial or second draw PPP loan, an enforcement action may not be taken against the lender, and the lender shall not be subject to any penalties relating to loan origination or forgiveness of the initial or second draw PPP loan, if—

the lender acts in good faith relating to loan origination or forgiveness of the initial or second draw PPP loan based on that reliance; and

all other relevant Federal, State, local, and other statutory and regulatory requirements applicable to the lender are satisfied with respect to the initial or second draw PPP loan.

Tax treatment

For purposes of title 26—

no amount shall be included in the gross income of the eligible recipient by reason of forgiveness of indebtedness described in subsection (b),

no deduction shall be denied, no tax attribute shall be reduced, and no basis increase shall be denied, by reason of the exclusion from gross income provided by paragraph (1), and

in the case of an eligible recipient that is a partnership or S corporation—

any amount excluded from income by reason of paragraph (1) shall be treated as tax exempt income for purposes of sections 705 and 1366 of title 26, and

except as provided by the Secretary of the Treasury (or the Secretary’s delegate), any increase in the adjusted basis of a partner’s interest in a partnership under section 705 of title 26 with respect to any amount described in subparagraph (A) shall equal the partner’s distributive share of deductions resulting from costs giving rise to forgiveness described in subsection (b).

Rule of construction

The cancellation of indebtedness on a covered loan under this section shall not otherwise modify the terms and conditions of the covered loan.

Regulations

Not later than 30 days after March 27, 2020, the Administrator shall issue guidance and regulations implementing this section.

Simplified application

Covered loans up to $150,000

In general

With respect to a covered loan made to an eligible recipient that is not more than $150,000, the covered loan amount shall be forgiven under this section if the eligible recipient—

signs and submits to the lender a certification, to be established by the Administrator not later than 24 days after December 27, 2020, which—

shall be not more than 1 page in length; and

shall only require the eligible recipient to provide—

a description of the number of employees the eligible recipient was able to retain because of the covered loan;

the estimated amount of the covered loan amount spent by the eligible recipient on payroll costs; and

the total loan value;

attests that the eligible recipient has—

accurately provided the required certification; and

complied with the requirements under section 636(a)(36) of this title; and

retains records relevant to the form that prove compliance with such requirements—

with respect to employment records, for the 4-year period following submission of the form; and

with respect to other records, for the 3-year period following submission of the form.

Limitation on requiring additional materials

An eligible recipient of a covered loan that is not more than $150,000 shall not, at the time of the application for forgiveness, be required to submit any application or documentation in addition to the certification and information required to substantiate forgiveness.

Records for other requirements

Nothing in subparagraph (A) or (B) shall be construed to exempt an eligible recipient from having to provide documentation independently to a lender to satisfy relevant Federal, State, local, or other statutory or regulatory requirements, or in connection with an audit as authorized under subparagraph (E).

Demographic information

The certification established by the Administrator under subparagraph (A) shall include a means by which an eligible recipient may, at the discretion of the eligible recipient, submit demographic information of the owner of the eligible recipient, including the sex, race, ethnicity, and veteran status of the owner.

Audit authority

The Administrator may—

review and audit covered loans described in subparagraph (A);

access any records described in subparagraph (A)(iii); and

in the case of fraud, ineligibility, or other material noncompliance with applicable loan or loan forgiveness requirements, modify—

the amount of a covered loan described in subparagraph (A); or

the loan forgiveness amount with respect to a covered loan described in subparagraph (A).

Covered loans of more than $150,000

In general

With respect to a covered loan in an amount that is more than $150,000, the eligible recipient shall submit to the lender that is servicing the covered loan the documentation described in subsection (e).

Demographic information

The process for submitting the documentation described in subsection (e) shall include a means by which an eligible recipient may, at the discretion of the eligible recipient, submit demographic information of the owner of the eligible recipient, including the sex, race, ethnicity, and veteran status of the owner.

Forgiveness audit plan

In general

Not later than 45 days after December 27, 2020, 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 an audit plan that details—

the policies and procedures of the Administrator for conducting forgiveness reviews and audits of covered loans; and

the metrics that the Administrator shall use to determine which covered loans will be audited.

Reports

Not later than 30 days after the date on which the Administrator submits the audit plan required under subparagraph (A), and each month 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 the forgiveness review and audit activities of the Administrator under this subsection, which shall include—

the number of active reviews and audits;

the number of reviews and audits that have been ongoing for more than 60 days; and

any substantial changes made to the audit plan submitted under subparagraph (A).

Footnotes

1 So in original.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

2020
Pub. L. 85–536 § 2(s7A) · 72 Stat. 384
Enacted · 15 U.S.C. § 636m
Pub. L. 85–536, § 2[7A], formerly Pub. L. 116–136, div. A, title I, § 1106, Mar. 27, 2020, 134 Stat. 297
Source evidence
Code source credit
Pub. L. 85–536, § 2[7A], formerly Pub. L. 116–136, div. A, title I, § 1106, Mar. 27, 2020, 134 Stat. 297
Enacted provision · exact public law section
Sec. 2. The Small Business Act is amended to read as follows: “Sec. 1. This Act may be cited as the ‘Small Business Act’. “Sec. 2. (a) The essence of the American economic system of private enterprise is free competition. Only through full and free competition can free markets, free entry into business, and opportunities for the expression and growth of personal initiative and individual judgment be assured. The preservation and expansion of such competition is basic not only to the economic well-being but to the security of this Nation. Such security and well-being cannot be realized unless the actual and potential capacity of small business is encouraged and developed. It is the declared policy of the Congress that the Government should aid, counsel, assist, and protect, insofar as is possible, the interests of small-business concerns in order to preserve free competitive enterprise, to insure that a fair proportion of the total purchases and contracts for property and services for the Government (including but not limited to contracts for maintenance, repair, and construction) be placed with small-business enterprises, to insure that a fair proportion of the total sales of Government property be made to such enterprises, and to maintain and strengthen the over-all economy of the Nation. “(b) Further, it is the declared policy of the Congress that the Government should aid and assist victims of floods and other catastrophes. “Sec. 3. For the purposes of this Act, a small-business concern shall be deemed to be one which is independently owned and operated and which is not dominant in its field of operation. In addition to the foregoing criteria the Administrator, in making a detailed definition, may use these criteria, among others: Number of employees and dollar volume of business. Where the number of employees is used as one of the criteria in making such definition for any of the purposes of this Act, the maximum number of employees which a small-business concern may have under the definition shall vary from industry to industry to the extent necessary to reflect differing characteristics of such industries and to take proper account of other relevant factors. “Sec. 4. (a) In order to carry out the policies of this Act there is hereby created an agency under the name ‘Small Business Administration’ (herein referred to as the Administration), which Administration snail be under the general direction and supervision of the President and shall not be affiliated with or be within any other agency or department of the Federal Government. The principal office of the Administration shall be located in the District of Columbia. The Administration may establish such branch and regional offices in other places in the United States as may be determined by the Administrator “United States”. of the Administration. As used in this Act, the term ‘United States’ includes the several States, the Territories and possessions of the United States, the Commonwealth of Puerto Rico, and the District of Columbia. “(b) The management of the Administration shall be vested in an Administrator who shall be appointed from civilian life by the President, by and with the advice and consent of the Senate, and who shall be a person of outstanding qualifications known to be familiar and sympathetic with small-business needs and problems. The Administrator shall not engage in any other business, vocation, or employment than that of serving as Administrator. The Administrator is authorized to appoint three Deputy Administrators to assist in the execution of the functions vested in the Administration. “(c) The Administration is authorized to obtain money from the Appropriations. Revolving fund. Treasury of the United States for use in the performance of the powers and duties granted to or imposed upon it by law, not to exceed a total of $650,000,000 outstanding at any one time. For this purpose appropriations not to exceed $650,000,000 are hereby authorized to be made to a revolving fund in the Treasury. Advances shall be made to the Administration from the revolving fund when requested by the Administration. This revolving fund shall be used for the purposes enumerated subsequently in sections 7 (a),7 (b),and8 (a). Not to exceed an aggregate of $500,000,000 shall be outstanding at any one time for the purposes enumerated in section 7 (a). Not to exceed an aggregate of $125,000,000 shall be outstanding at any one time for the purposes enumerated in section 7 (b). Not to exceed an aggregate of $25,000,000 shall be outstanding at any one time for the purposes enumerated in section 8 (a). The Administration shall pay into miscellaneous receipts of the Treasury, at the close of each fiscal year, interest on the net amount of the cash disbursements from such advances at a rate determined by the Secretary of the Treasury, taking into consideration the current average rate on outstanding interest-bearing marketable public debt obligations of the United States of comparable maturities. “(d) There is hereby created the Loan Policy Board of the Small Loan Policy Board. Business Administration, which shall consist of the following members, all ex officio: The Administrator, as Chairman, the Secretary of the Treasury, and the Secretary of Commerce. Either of the said Secretaries may designate an officer of his Department, who has been appointed by the President by and with the advice and consent of the Senate, to act in his stead as a member of the Loan Policy Board with respect to any matter or matters. The Loan Policy Board shall establish general policies (particularly with reference to the public interest involved in the granting and denial of applications for financial assistance by the Administration and with reference to the coordination of the functions of the Administration with other activities and policies of the Government), which shall govern the granting and denial of applications for financial assistance by the Administration. “Sec. 5. (a) The Administration shall have power to adopt, alter, Seal, employees, etc. and use a seal, which shall be judicially noticed. The Administrator is authorized, subject to the civil-service and classification laws, to select, employ, appoint, and fix the compensation of such officers, employees, attorneys, and agents as shall be necessary to carry out the provisions of this Act; to define their authority and duties; to provide bonds for them in such amounts as the Administrator shall determine; and to pay the costs of qualification of certain of them as notaries public. The Administration, with the consent of any board, commission, independent establishment, or executive department of the Government, may avail itself on a reimbursable or nonreimbursable basis of the use of information, services, facilities (including any field service thereof), officers, and employees thereof, in carrying out the provisions of this Act. Subject to the standards and procedures under section 505 of the Classification Act of 1949, as amended, not 69 Stat. 179; Ante, p. 213. 5 USC 1105. Supergrade positions. to exceed fifteen positions in the Administration may be placed in grades 16,17, and 18 of the General Schedule established by that Act, and any such positions shall be additional to the number authorized by such section. “(b) In the performance of, and with respect to, the functions, powers, and duties vested in him by this Act the Administrator may— “(1) sue and be sued in any court of record of a State having general jurisdiction, or in any United States district court, and jurisdiction is conferred upon such district court to determine such controversies without regard to the amount in controversy; but no attachment, injunction, garnishment, or other similar process, mesne or final, shall be issued against the Administrator or his property; “(2) under regulations prescribed by him, assign or sell at public or private sale, or otherwise dispose of for cash or credit, in his discretion and upon such terms and conditions and for such consideration as the Administrator shall determine to be reasonable, any evidence of debt, contract, claim, personal property, or security assigned to or held by him in connection with the payment of loans granted under this Act, and to collect or compromise all obligations assigned to or held by him and all legal or equitable rights accruing to him in connection with the payment of such loans until such time as such obligations may be referred to the Attorney General for suit or collection; “(3) deal with, complete, renovate, improve, modernize, insure, or rent, or sell for cash or credit upon such terms and conditions and for such consideration as the Administrator shall determine to be reasonable, any real property conveyed to or otherwise acquired by him in connection with the payment of loans granted under this Act; “(4) pursue to final collection, by way of compromise or otherwise, all claims against third parties assigned to the Administrator in connection with loans made by him. This shall include authority to obtain deficiency judgments or otherwise in the case of mortgages assigned to the Administrator. Section 3709 of the Revised Statutes, as amended (41 U. S. C., sec. 5), shall not be construed to apply to any contract of hazard insurance or to any purchase or contract for services or supplies on account of property obtained by the Administrator as a result of loans made under this Act if the premium therefor or the amount thereof does not exceed $1,000. The power to convey and to execute in the name of the Administrator deeds of conveyance, deeds of release, assignments and satisfactions of mortgages, and any other written instrument relating to real property or any interest therein acquired by the Administrator pursuant to the provisions of this Act may be exercised by the Administrator or by any officer or agent appointed by him without the execution of any express delegation of power or power of attorney. Nothing in this section shall be construed to prevent the Administrator from delegating such power by order or by power of attorney, in his discretion, to any officer or agent he may appoint; “(5) acquire, in any lawful manner, any property (real, personal, or mixed, tangible or intangible), whenever deemed necessary or appropriate to the conduct of the activities authorized in sections 7 (a) and 7 (b); “(6) make such rules and regulations as he deems necessary to carry out the authority vested in him by or pursuant to this Act; “(7) in addition to any powers, functions, privileges, and immunities otherwise vested in him, take any and all actions, including the procurement of the services of attorneys by contract, determined by him to be necessary or desirable in making, servicing, compromising, modifying, liquidating, or otherwise dealing with or realizing on loans made under the provisions of this Act; but no attorneys’ services shall be procured by contract in any office where an attorney or attorneys are or can be economically employed full time to render such services; “(8) pay the transportation expenses and per diem in lieu of Disaster service. Expenses. 63 Stat. 166. 5 USC 835 note. subsistence expenses, m accordance with the Travel Expense Act of 1949, for travel of any person employed by the Administration to render temporary services not in excess of six months in connection with any disaster referred to in section 7 (b) from place of appointment to, and while at, the disaster area and any other temporary posts of duty and return upon completion of the assignment; and “(9) accept the services and facilities of Federal, State, and local agencies and groups, both public and private, and utilize such gratuitous services and facilities as may, from time to time, be necessary, to further the objectives of section 7 (b). “(c) To such extent as he finds necessary to carry out the provisions Temporary experts or consultants. of this Act, the Administrator is authorized to procure the temporary (not in excess of one year) or intermittent services of experts or consultants or organizations thereof, including stenographic reporting services, by contract or appointment, and in such cases such services shall be without regard to the civil-service and classification laws and, except in the case of stenographic reporting services by organizations, without regard to section 3709 of the Revised Statutes, as amended (41 U. S. C., sec. 5). Any individual so employed may be compensated at a rate not in excess of $50 per diem, and, while such individual is away from his home or regular place of business, he may be allowed transportation and not to exceed $15 per diem in lieu of subsistence and other expenses. “Sec. 6. (a) All moneys of the Administration not otherwise employed Fiscal provisions. may be deposited with the Treasury of the United States subject to check by authority of the Administration. The Federal Reserve banks are authorized and directed to act as depositaries, custodians, and fiscal agents for the Administration in the general performance of its powers conferred by this Act. Any banks insured by the Federal Deposit Insurance Corporation, when designated by the Secretary of the Treasury, shall act as custodians and financial agents for the Administration. Each Federal Reserve bank, when designated by the Administrator as fiscal agent for the Administration, shall be entitled to be reimbursed for all expenses incurred as such fiscal agent. “(b) The Administrator shall contribute to the employees’ compensation Employees’ compensation fund. fund, on the basis of annual billings as determined by the Secretary of Labor, for the benefit payments made from such fund on account of employees engaged in carrying out functions financed by the revolving fund established by section 4 (c) of this Act. The annual billings shall also include a statement of the fair portion of the cost of the administration of such fund, which shall be paid by the Administrator into the Treasury as miscellaneous receipts. “Sec. 7. (a) The Administration is empowered to make loans to Loans. enable small-business concerns to finance plant construction, conversion, or expansion, including the acquisition of land; or to finance the acquisition of equipment, facilities, machinery, supplies, or materials; or to supply such concerns with working capital to be used in the manufacture of articles, equipment, supplies, or materials for war, defense, or civilian production or as may be necessary to insure a well-balanced national economy; and such loans may be made or effected either directly or in cooperation with banks or other lending institutions through agreements to participate on an immediate or Restrictions and limitations. deferred basis. The foregoing powers shall be subject, however, to the following restrictions and limitations: “(1) No financial assistance shall be extended pursuant to this subsection unless the financial assistance applied for is not otherwise available on reasonable terms. “(2) No immediate participation may be purchased unless it is shown that a deferred participation is not available; and no loan may be made unless it is shown that a participation is not available. “(3) 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. “(4) Except as provided in paragraph (5), (A) no loan under this subsection shall be made if the total amount outstanding and committed (by participation or otherwise) to the borrower from the revolving fund established by this Act would exceed $350,000; (B) the rate of interest for the Administration’s share of any such loan shall be no more than 5½ per centum per annum; and (C) no such loan, including renewals or extensions thereof, may be made for a period or periods exceeding ten years except that a loan made for the purpose of constructing facilities may have a maturity of ten years plus such additional period as is estimated may be required to complete such construction. “(5) In the case of any loan made under this subsection to a corporation formed and capitalized by a group of small-business concerns with resources provided by them for the purpose of obtaining for the use of such concerns raw materials, equipment, inventories, supplies or the benefits of research and development, or for establishing facilities for such purpose, (A) the limitation of $350,000 prescribed in paragraph (4) shall not apply, but the limit of such loan shall be $250,000 multiplied by the number of separate small businesses which formed and capitalized such corporation; (B) the rate of interest for the Administration’s share of such loan shall be no less than 3 nor more than 5 per centum per annum; and (C) such loan, including renewals and extensions thereof, may not be made for a period or periods exceeding ten years except that if such loan is made for the purpose of constructing facilities it may have a maturity of twenty years plus such additional time as is required to complete such construction. “(6) The Administrator is authorized to consult with representatives of small-business concerns with a view to encouraging the formation by such concerns of the corporation referred to in paragraph (5). No act or omission to act, if requested by the Administrator pursuant to this paragraph, and if found and approved by the Administration as contributing to the needs of small business, shall be construed to be within the prohibitions of 38 Stat. 717. 15 USC 58. the antitrust laws or the Federal Trade Commission Act of the United States. A copy of the statement of any such finding and approval intended to be within the coverage of this section, and any modification or withdrawal thereof, shall be furnished to the Attorney General and the Chairman of the Federal Trade Commission Publication in F.R. when made, and it shall be published in the Federal Register. The authority granted in this paragraph shall be exercised only (A) by the Administrator, (B) upon the condition that the Administrator consult with the Attorney General and with the Chairman of the Federal Trade Commission, and (C) upon the condition that the Administrator obtain the approval of the Attorney General before exercising such authority. Upon withdrawal of any request or finding hereunder or upon withdrawal by the Attorney General of his approval granted under the preceding sentence, the provisions of this paragraph shall not apply to any subsequent act or omission to act by reason of such finding or request. “(7) All loans made under this subsection shall be of such sound value or so secured as reasonably to assure repayment. “(b) The Administration also is empowered— Disaster Loans “(1) 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 because of floods or other catastrophes; and “(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 basis) as the Administration may determine to be necessary or appropriate to any small-business concern located in an area affected by a drought or excessive rainfall, if the Administration determines that the small-business concern has suffered a substantial economic injury as a result of such drought or excessive rainfall and the President has determined under the Act entitled ‘An Act to authorize Federal assistance to States and local governments in major disasters, and for other purposes’, approved September 30, 1950, as amended (42 U. S. C., secs. 1855–1855g), that such drought or 64 Stat. 1109–1111. excessive rainfall is a major disaster, or the Secretary of Agriculture has found under the Act entitled ‘An Act to abolish the Regional Agricultural Credit Corporation of Washington, District of Columbia, and transfer its functions to the Secretary of Agriculture, to authorize the Secretary of Agriculture to make disaster loans, and for other purposes’, approved April 6, 1949, as amended (12 U. S. C., secs. 1148a–1–1148a–3), that such 63 Stat. 43, 44. drought or excessive rainfall constitutes a production or economic disaster in such area. No loan under this subsection, including renewals and extensions Limitation. thereof, may be made for a period or periods exceeding twenty years. The interest rate on the Administration’s share of any loan made Interest. under this subsection shall not exceed 3 per centum per annum. 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. “(c) The Administration may further extend the maturity of or RFC Loans. Extension. 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 68 Stat. 1280; 71 Stat. 647. 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. “Sec. 8. (a) It shall be the duty of the Administration and it is Procurement contracts. hereby empowered, whenever it determines such action is necessary— “(1) to enter into contracts with the United States Government and any department, agency, or officer thereof having procurement powers obligating the Administration to furnish articles, equipment, supplies, or materials to the Government. In any case m which the Administration certifies to any officer of the Government having procurement powers that the Administration is competent to perform any specific Government procurement contract to be let by any such officer, such officer shall be authorized in his discretion to let such procurement contract to the Adminis-tration upon such terms and conditions as may be agreed upon between the Administration and the procurement officer; and “(2) to arrange for the performance of such contracts by negotiating or otherwise letting subcontracts to small-business concerns or others for the manufacture, supply, or assembly of such articles, equipment, supplies, or materials, or parts thereof, or servicing or processing in connection therewith, or such management services as may be necessary to enable the Administration to perform such contracts. “(b) It shall also be the duty of the Administration and it is hereby empowered, whenever it determines such action is necessary— “(1) to provide technical and managerial aids to small-business concerns, by advising and counseling on matters in connection with Government procurement and property disposal and on policies, principles, and practices of good management, including but not limited to cost accounting, methods of financing, business insurance, accident control, wage incentives, and methods engineering, by cooperating and advising with voluntary business, professional, educational, and other nonprofit organizations, associations, and institutions and with other Federal and State agencies, by maintaining a clearinghouse for information concerning the managing, financing, and operation of small-business enterprises, by disseminating such information, and by such other activities as are deemed appropriate by the Administration; “(2) to make a complete inventory of all productive facilities of small-business concerns or to arrange for such inventory to be made by any other governmental agency which has the facilities. In making any such inventory, the appropriate agencies in the several States may be requested to furnish an inventory of the productive facilities of small-business concerns in each respective State if such an inventory is available or in prospect; “(3) to coordinate and to ascertain the means by which the productive capacity of small-business concerns can be most effectively utilized; “(4) to consult and cooperate with officers of the Government having procurement or property disposal powers, in order to utilize the potential productive capacity of plants operated by small-business concerns; “(5) to obtain information as to methods and practices which Government prime contractors utilize in letting subcontracts and to take action to encourage the letting of subcontracts by prime contractors to small-business concerns at prices and on conditions and terms which are fair and equitable; “(6) to determine within any industry the concerns, firms, persons, corporations, partnerships, cooperatives, or other business enterprises which are to be designated ‘small-business concerns’ for the purpose of effectuating the provisions of this Act. To carry out this purpose the Administrator, when requested to do so, shall issue in response to each such request an appropriate certificate certifying an individual concern as a ‘small-business concern’ in accordance with the criteria expressed in this Act. Any such certificate shall be subject to revocation when the concern covered thereby ceases to be. a ‘small-business concern’. Offices of the Government having procurement or lending powers, or engaging in the disposal of Federal property or allocating materials or supplies, or promulgating regulations affecting the distribution of materials or supplies, shall accept as conclusive the Administration’s determination as to which enterprises are to be designated ‘small-business concerns’, as authorized and directed under this paragraph; “(7) to certify to Government procurement officers, and officers Certification engaged in the sale and disposal of Federal property, with respect to the competency, as to capacity and credit, of any small-business concern or group of such concerns to perform a specific Government contract. In any case in which a small-business concern or group of such concerns has been certified by or under the authority of the Administration to be a competent Government contractor with respect to capacity and credit as to a specific Government contract, the officers of the Government having procurement or property disposal powers are directed to accept such certification as conclusive, and are authorized to let such Government contract to such concern or group of concerns without requiring it to meet any other requirement with respect to capacity and credit; “(8) to obtain from any Federal department, establishment, Federal contract information. or agency engaged in procurement or in the financing of procurement or production such reports concerning the letting of contracts and subcontracts and the making of loans to business concerns as it may deem pertinent in carrying out its functions under this Act: “(9) to obtain from any Federal department, establishment, or agency engaged in the disposal of Federal property such reports concerning the solicitation of bids, time of sale, or otherwise as it may deem pertinent in carrying put its functions under this Act; “(10) to obtain from suppliers of materials information pertaining to the method of filling orders and the bases for allocating their supply, whenever it appears that any small business is unable to obtain materials from its normal sources; “(11) to make studies and recommendations to the appropriate Studies and recommendations. Federal agencies to insure that a fair proportion of the total purchases and contracts for property and services for the Government be placed with small-business enterprises, to insure that a fair proportion of Government contracts for research and development be placed with small-business concerns, to insure that a fair proportion of the total sales of Government property be made to small-business concerns, and to insure a fair and equitable share of materials, supplies, and equipment to small-business concerns; “(12) to consult and cooperate with all Government agencies for the purpose of insuring that small-business concerns shall receive fair and reasonable treatment from such agencies; and “(13) to establish such small business advisory boards and Advisory boards. committees truly representative of small business as may be necessary to achieve the purposes of this Act. “(c) The Administration shall from time to time make studies of matters materially affecting the competitive strength of small business, and of the effect on small business of Federal laws, programs, and regulations, and shall make recommendations to the appropriate Federal agency or agencies for the adjustment of such programs and regulations to the needs of small business. “Sec. 9. (a) Research and development are major factors in the Research and development. growth and progress of industry and the national economy. The expense of carrying on research and development programs is beyond the means of many small-business concerns, and such concerns are handicapped in obtaining the benefits of research and development programs conducted at Government expense. These small-business concerns are thereby placed at a competitive disadvantage. This weakens the competitive free enterprise system and prevents the orderly development of the national economy. It is the policy of the Congress that assistance be given to small-business concerns to enable them to undertake and to obtain the benefits of research and development in order to maintain and strengthen the competitive free enterprise system and the national economy. “(b) It shall be the duty of the Administration, and it is hereby empowered— “(1) to assist small-business concerns to obtain Government contracts for research and development; “(2) to assist small-business concerns to obtain the benefits of research and development performed under Government contracts or at Government expense; and “(3) to provide technical assistance to small-business concerns to accomplish the purposes of this section. “(c) The Administration is authorized to consult and cooperate with all Government agencies and to make studies and recommendations to such agencies, and such agencies are authorized and directed to cooperate with the Administration in order to carry out and to accomplish the purposes of this section. “(d) (1) The Administrator is authorized to consult with representatives of small-business concerns with a view to assisting and encouraging such firms to undertake joint programs for research and development carried out through such corporate or other mechanism as may be most appropriate for the purpose. Such joint programs may, among other things, include the following purposes: “(A) to construct, acquire, or establish laboratories and other facilities for the conduct of research: “(B) to undertake and utilize applied research; “(C) to collect research information related to a particular industry and disseminate it to participating members; “(D) to conduct applied research on a protected, proprietary, and contractual basis with member or nonmember firms, Government agencies, and others; “(E) to prosecute applications for patents and render patent services for participating members; and “(F) to negotiate and grant licenses under patents held under the joint program, and to establish corporations designed to exploit particular patents obtained by it. “(2) The Administrator may, after consultation with the Attorney General and the Chairman of the Federal Trade Commission, and with the prior written approval of the Attorney General, approve any agreement between small-business firms providing for a joint program of research and development, if the Administrator finds that the joint program proposed will maintain and strengthen the free Withdrawal. enterprise system and the economy of the Nation. The Administrator or the Attorney General may at any time withdraw his approval of the agreement and the joint program of research and development covered thereby, if he finds that the agreement or the joint program carried on under it is no longer in the best interests of the competitive Publication in F.R. free enterprise system and the economy of the Nation. A copy of the statement of any such finding and approval intended to be within the coverage of this subsection, and a copy of any modification or withdrawal of approval, shall be published in the Federal Register. The authority conferred by this subsection on the Administrator shall not be delegated by him. “(3) No act or omission to act pursuant to and within the scope of any joint program for research and development, under an agree- ment approved by the Administrator under this subsection, shall be construed to be within the prohibitions of the antitrust laws or the Federal Trade Commission Act. Upon publication in the Federal 38 Stat. 717. 15 USC 58. Publication in F.R. Register of the notice of withdrawal of his approval of the agreement granted under this subsection, either by the Administrator or by the Attorney General, the provisions of this subsection shall not apply to any subsequent act or omission to act by reason of such agreement or approval. “Sec. 10. (a) The Administration shall make a report every six Semiannual reports. months of operations under this Act to the President, the President of the Senate, and the Speaker of the House of Representatives. Such report shall include the names of the business concerns to whom contracts are let and for whom financing is arranged by the Administration, together with the amounts involved, and such report shall include such other information and such comments and recommendations as the Administration may deem appropriate. “(b) The Administration shall make a report to the President, the President of the Senate, and the Speaker of the House of Representatives, to the Senate Select Committee on Small Business, and to the House Select Committee To Conduct a Study and Investigation of the Problems of Small Business, on June 30 and December 31 of each year, showing as accurately as possible for each such period the amount of funds appropriated to it that it has expended in the conduct of each of its principal activities such as lending, procurement, contracting, and providing technical and managerial aids. “(c) The Attorney General is directed to make, or request the Federal Dept. of Justice. Reports. Trade Commission to make for him, surveys for the purpose of determining any factors which may tend to eliminate competition, create or strengthen monopolies, injure small business, or otherwise promote undue concentration of economic power in the course of the administration of this Act. The Attorney General shall submit to the Congress and the President, at such times as he deems desirable, reports setting forth the results of such surveys and including such recommendations as he may deem desirable. “(d) For the purpose of aiding in carrying out the national policy Defense Dept. Reports. to insure that a fair proportion of the total purchases and contracts for property and services for the Government be placed with small-business enterprises, and to maintain and strengthen the overall economy of the Nation, the Department of Defense shall make a monthly report to the President, the President of the Senate, and the Speaker of the House of Representatives not less than forty-five days after the close of the month, showing the amount of funds appropriated to the Department of Defense which have been expended, obligated, or contracted to be spent with small-business concerns and the amount of such funds expended, obligated, or contracted to be spent with firms other than small business in the same fields of operation; and such monthly reports shall show separately the funds expended, obligated, or contracted to be spent for basic and applied scientific research and development. “(e) The Administration shall retain all correspondence, records Records retention. of inquiries, memoranda, reports, books, and records, including memoranda as to all investigations conducted by or for the Administration, for a period of at least one year from the date of each thereof, and shall at all times keep the same available for inspection and examination by the Senate Select Committee on Small Business and the House Select Committee To Conduct a Study and Investigation of the Problems of Small Business, or their duly authorized representatives. “(f) To the extent deemed necessary by the Administrator to protect Agency cooperation. and preserve small-business interests, the Administration shall consult and cooperate with other departments and agencies of the Federal Government in the formulation by the Administration of policies affecting small-business concerns. When requested by the Administrator, each department and agency of the Federal Government shall consult and cooperate with the Administration in the formulation by such department or agency of policies affecting small-business concerns, in order to insure that small-business interests will be recognized, protected, and preserved. This subsection shall not require any department or agency to consult or cooperate with the Administration in any case where the head of such department or agency determines that such consultation or cooperation would unduly delay action which must be taken by such department or agency to protect the national interest in an emergency. “Sec. 11. (a) The President is authorized to consult with representatives of small-business concerns with a view to encouraging the making by such persons with the approval of the President of voluntary agreements and programs to further the objectives of this Act. “(b) No act or omission to act pursuant to this Act which occurs while this Act is in effect, if requested by the President pursuant to a voluntary agreement or program approved under subsection (a) of this section and found by the President to be in the public interest as contributing to the national defense, shall be construed to be within the prohibitions of the antitrust laws or the Federal Trade Commission Act of the United States. A copy of each such request intended to be within the coverage of this section, and any modification or withdrawal thereof, shall be furnished to the Attorney General and the 38 Stat. 717. 15 USC 58. Public at ion in F.R. Chairman of the Federal Trade Commission when made, and it shall be published in the Federal Register unless publication thereof would, in the opinion of the President, endanger the national security. “(c) The authority granted in subsection (b) of this section shall be delegated only (1) to an official who shall for the purpose of such delegation be required to be appointed by the President by and with the advice and consent of the Senate, (2) upon the condition that such official consult with the Attorney General and the Chairman of the Federal Trade Commission not less than ten days before making any request or finding thereunder, and (3) upon the condition that such official obtain the approval of the Attorney General to any request thereunder before making the request. “(d) Upon withdrawal of any request or finding hereunder, or upon withdrawal by the Attorney General of his approval of the voluntary agreement or program on which the request or finding is based, the provisions of this section shall not apply to any subsequent act, or omission to act, by reason of such finding or request. “Sec. 12. The President may transfer to the Administration any functions, powers, and duties of any department or agency which relate primarily to small-business problems. In connection with any such transfer, the President may provide for appropriate transfers of records, property, necessary personnel, and unexpended balances of appropriations and other funds available to the department or agency from which the transfer is made. “Sec. 13. No loan shall be made or equipment, facilities, or services furnished by the Administration under this Act to any business enterprise unless the owners, partners, or officers of such business enterprise (1) certify to the Administration the names of any attorneys, agents, or other persons engaged by or on behalf of such business enterprise for the purpose of expediting applications made to the Administration for assistance of any sort, and the fees paid or to be paid to any such persons; (2) execute an agreement binding any such business enterprise for a period of two years after any assistance is rendered by the Administration to such business enterprise, to refrain from employing, tendering any office or employment to, or retaining for professional services, any person who, on the date such assistance or any part thereof was rendered, or within one year prior thereto, shall have served as an officer, attorney, agent, or employee of the Administration occupying a position or engaging in activities which the Administration shall have determined involve discretion with respect to the granting of assistance under this Act; and (3) furnish the names of lending institutions to which such business enterprise has applied for loans together with dates, amounts, terms, and proof of refusal. “Sec. 14. To the fullest extent the Administration deems practicable, Charge for Government-owned property. it shall make a fair charge for the use of Government-owned property and make and let contracts on a basis that will result in a recovery of the direct costs incurred by the Administration. “Sec. 15. To effectuate the purposes of this Act, small-business Determination of awards or contracts. concerns within the meaning of this Act shall receive any award or contract or any part thereof, and be awarded any contract for the sale of Government property, as to which it is determined by the Administration and the contracting procurement or disposal agency (1) to be in the interest of maintaining or mobilizing the Nations full productive capacity, (2) to be in the interest of war or national defense programs, (3) to be in the interest of assuring that a fair proportion of the total purchases and contracts for property and services for the Government are placed with small-business concerns, or (4) to be in the interest of assuring that a fair proportion of the total sales of Government property be made to small-business concerns; but nothing contained in this Act shall be construed to change any preferences or priorities established by law with respect to the sale of electrical power or other property by the Government or any agency thereof. These determinations may be made for individual awards or contracts or for classes of awards or contracts. Whenever the Administration and the contracting procurement agency fail to agree, the matter shall be submitted for determination to the Secretary or the head of the appropriate department or agency by the Administrator. (a) Whoever makes any statement knowing it to be false, Violations and penalties. or whoever willfully overvalues any security, for the purpose of obtaining for himself or for any applicant any loan, or extension thereof by renewal, deferment of action, or otherwise, or the acceptance, release, or substitution of security therefor, or for the purpose of influencing in any way the action of the Administration, or for the purpose of obtaining money, property, or anything of value, under this Act, shall be punished by a fine of not more than $5,000 or by imprisonment for not more than two years, or both. “(b) Whoever, being connected in any capacity with the Administration, (1) embezzles, abstracts, purloins, or willfully misapplies any moneys, funds, securities, or other things of value, whether belonging to it or pledged or otherwise entrusted to it, or (2) with intent to defraud the Administration or any other body politic or corporate, or any individual, or to deceive any officer, auditor, or examiner of the Administration, makes any false entry in any book, report, or statement of or to the Administration, or, without being duly authorized, draws any order or issues, puts forth, or assigns any note, debenture, bond, or other obligation, or draft, bill of exchange, mortgage, judgment, or decree thereof, or (3) with intent to defraud participates or shares in or receives directly or indirectly any money, profit, property, or benefit through any transaction, loan, commission, contract, or any other act of the Administration, or (4) gives any unauthorized information concerning any future action or plan of the Administration which might affect the value of securities, or, having such knowledge, invests or speculates, directly or indirectly, in the securities or property of any company or corporation receiving loans or other assistance from the Administration, shall be punished by a fine of not more than $10,000 or by imprisonment for not more than five years, or both. “Sec. 17. Any interest held by the Administration in property, as security for a loan, shall be subordinate to any lien on such property for taxes due on the property to a State, or political subdivision thereof, in any case where such lien would, under applicable State law, be superior to such interest if such interest were held by any party other than the United States. “Sec. 18. The Administration shall not duplicate the work or activity of any other department or agency of the Federal Government and nothing contained in this Act shall be construed to authorize any such duplication unless such work or activity is expressly provided for in this Act. “Sec. 19. If any provision of this Act, or the application thereof to any person or circumstances, is held invalid, the remainder of this Act, and the application of such provision to other persons or circumstances, shall not be affected thereby. “Sec. 20. There are hereby authorized to be appropriated such sums as may be necessary and appropriate for the carrying out of the provisions and purposes of this Act. “Sec. 21. All laws and parts of laws inconsistent with this Act are hereby repealed to the extent of such inconsistency.”
2020
Paycheck Protection Program Flexibility Act of 2020
Pub. L. 116–142 § 3(b)(1) · 134 Stat. 641
1. Added · 15 U.S.C. § 636m(a)(3)
  Pub. L. 116–142, § 3(b)(1), added par. (3)
2. Struck · 15 U.S.C. § 636m(a)(3)
  Pub. L. 116–142, § 3(b)(1), struck out former par. (3) which read as follows: “the term ‘covered period’ means the 8-week period beginning on the date of the origination of a covered loan;”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 116–142, § 3(b)(1), added par. (3) and struck out former par. (3) which read as follows: “the term ‘covered period’ means the 8-week period beginning on the date of the origination of a covered loan;”.
Enacted provision · exact public law section
(1) in subsection (a), by striking paragraph (3) and inserting the following: “(3) the term ‘covered period’ means, subject to subsection (l), the period beginning on the date of the origination of a covered loan and ending the earlier of— “(A) the date that is 24 weeks after such date of origination; or “(B) December 31, 2020;” ;
2020
Paycheck Protection Program Flexibility Act of 2020
Pub. L. 116–142 § 3(b)(2)(A) · 134 Stat. 641
Substituted · 15 U.S.C. § 636m(d)(5)(B)(i)(II); 15 U.S.C. § 636m(d)(5)(B)(ii)(II)
Pub. L. 116–142, § 3(b)(2)(A), substituted “December 31, 2020” for “June 30, 2020”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 116–142, § 3(b)(2)(A), substituted “December 31, 2020” for “June 30, 2020”.
Enacted provision · exact public law section
(A) in paragraph (5)(B), by striking “June 30, 2020” each place it appears and inserting “December 31, 2020”; and
2020
Paycheck Protection Program Flexibility Act of 2020
Pub. L. 116–142 § 3(b)(2)(B) · 134 Stat. 641
Added · 15 U.S.C. § 636m(d)(7)
Pub. L. 116–142, § 3(b)(2)(B), added par. (7)
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 116–142, § 3(b)(2)(B), added par. (7).
Enacted provision · exact public law section
(B) by adding at the end the following new paragraphs: “(7) Exemption based on employee availability.— During the period beginning on February 15, 2020, and ending on December 31, 2020, the amount of loan forgiveness under this section shall be determined without regard to a proportional reduction in the number of full-time equivalent employees if an eligible recipient, in good faith— “(A) is able to document— “(i) an inability to rehire individuals who were employees of the eligible recipient on February 15, 2020; and “(ii) an inability to hire similarly qualified employees for unfilled positions on or before December 31, 2020; or “(B) is able to document an inability to return to the same level of business activity as such business was operating at before February 15, 2020, due to compliance with requirements established or guidance issued by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and Prevention, or the Occupational Safety and Health Administration during the period beginning on March 1, 2020, and ending December 31, 2020, related to the maintenance of standards for sanitation, social distancing, or any other worker or customer safety requirement related to COVID–19. “(8) Limitation on forgiveness.— To receive loan forgiveness under this section, an eligible recipient shall use at least 60 percent of the covered loan amount for payroll costs, and may use up to 40 percent of such amount for 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), any payment on any covered rent obligation, or any covered utility payment.” ; and
2020
Paycheck Protection Program Flexibility Act of 2020
Pub. L. 116–142 § 3(b)(2)(B) · 134 Stat. 641
Added · 15 U.S.C. § 636m(d)(8)
Pub. L. 116–142, § 3(b)(2)(B), added par. (8)
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 116–142, § 3(b)(2)(B), added par. (8).
Enacted provision · exact public law section
(B) by adding at the end the following new paragraphs: “(7) Exemption based on employee availability.— During the period beginning on February 15, 2020, and ending on December 31, 2020, the amount of loan forgiveness under this section shall be determined without regard to a proportional reduction in the number of full-time equivalent employees if an eligible recipient, in good faith— “(A) is able to document— “(i) an inability to rehire individuals who were employees of the eligible recipient on February 15, 2020; and “(ii) an inability to hire similarly qualified employees for unfilled positions on or before December 31, 2020; or “(B) is able to document an inability to return to the same level of business activity as such business was operating at before February 15, 2020, due to compliance with requirements established or guidance issued by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and Prevention, or the Occupational Safety and Health Administration during the period beginning on March 1, 2020, and ending December 31, 2020, related to the maintenance of standards for sanitation, social distancing, or any other worker or customer safety requirement related to COVID–19. “(8) Limitation on forgiveness.— To receive loan forgiveness under this section, an eligible recipient shall use at least 60 percent of the covered loan amount for payroll costs, and may use up to 40 percent of such amount for 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), any payment on any covered rent obligation, or any covered utility payment.” ; and
2020
Paycheck Protection Program Flexibility Act of 2020
Pub. L. 116–142 § 3(b)(3) · 134 Stat. 641
Added · 15 U.S.C. § 636m(l)
Pub. L. 116–142, § 3(b)(3), added subsec. (l)
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 116–142, § 3(b)(3), added subsec. (l).
Enacted provision · exact public law section
(3) by adding at the end the following new subsection: “(l) Application to Certain Eligible Recipients.— An eligible recipient that received a covered loan before the date of enactment of this subsection may elect for the covered period applicable to such covered loan to end on the date that is 8 weeks after the date of the origination of such covered loan.” .
2020
Energy and Water Development and Related Agencies Appropriations Act, 2021
Pub. L. 116–260 div. N § 304(b)(1)(B)(i) · 134 Stat. 1182
Substituted · 15 U.S.C. § 636m(a)(1)
Pub. L. 116–260, div. N, § 304(b)(1)(B)(i), substituted “section 636(a)(36) of this title” for “paragraph (36) of section 636(a) of this title, as added by section 1102”
Source evidence
Code amendment note
Subsec. (a)(1). Pub. L. 116–260, div. N, § 304(b)(1)(B)(i), substituted “section 636(a)(36) of this title” for “paragraph (36) of section 636(a) of this title, as added by section 1102”.
Enacted provision · exact public law section
Sec. 304. None Cost estimate. of the funds made available in this title may be used to approve critical decision-2 or critical decision-3 under Department of Energy Order 413.3B, or any successive departmental guidance, for construction projects where the total project cost exceeds $100,000,000, until a separate independent cost estimate has been developed for the project for that critical decision.
2020
Energy and Water Development and Related Agencies Appropriations Act, 2021
Pub. L. 116–260 div. N § 304(b)(2)(A)(v) · 134 Stat. 1182
Redesignated · 15 U.S.C. § 636m(a)(3)
Pub. L. 116–260, div. N, § 304(b)(2)(A)(v), added par. (3). Former par. (3) redesignated (4)
Source evidence
Code amendment note
Subsec. (a)(3). Pub. L. 116–260, div. N, § 304(b)(2)(A)(v), added par. (3). Former par. (3) redesignated (4).
Enacted provision · exact public law section
Sec. 304. None Cost estimate. of the funds made available in this title may be used to approve critical decision-2 or critical decision-3 under Department of Energy Order 413.3B, or any successive departmental guidance, for construction projects where the total project cost exceeds $100,000,000, until a separate independent cost estimate has been developed for the project for that critical decision.
2020
Energy and Water Development and Related Agencies Appropriations Act, 2021
Pub. L. 116–260 div. N § 306(A) · 134 Stat. 1182
Amended · 15 U.S.C. § 636m(a)(4)
Pub. L. 116–260, div. N, § 306(A), amended par. (4) generally. Prior to amendment, par. (4) read as follows: “the term ‘covered period’ means, subject to subsection (l), the period beginning on the date of the origination of a covered loan and ending the earlier of—
Source evidence
Code amendment note
Subsec. (a)(4). Pub. L. 116–260, div. N, § 306(A), amended par. (4) generally. Prior to amendment, par. (4) read as follows: “the term ‘covered period’ means, subject to subsection (l), the period beginning on the date of the origination of a covered loan and ending the earlier of—
“(A) the date that is 24 weeks after such date of origination; or “(B) December 31, 2020;”.
Enacted provision · exact public law section
(a) Of the offsetting collections, including unobligated balances of such collections, in the “Department of Energy—Power Marketing Administration—Colorado River Basins Power Marketing Fund, Western Area Power Administration”, $21,400,000 shall be transferred to the “Department of the Interior—Bureau of Reclamation—Upper Colorado River Basin Fund” for the Bureau of Reclamation to carry out environmental stewardship and endangered species recovery efforts.
2020
Energy and Water Development and Related Agencies Appropriations Act, 2021
Pub. L. 116–260 div. N § 304(b)(2)(A)(iii) · 134 Stat. 1182
Redesignated · 15 U.S.C. § 636m(a)(4)
Pub. L. 116–260, div. N, § 304(b)(2)(A)(iii), (iv), redesignated par. (3) as (4). Former par. (4) redesignated (6)
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 116–260, div. N, § 304(b)(2)(A)(iii), (iv), redesignated par. (3) as (4). Former par. (4) redesignated (6).
Enacted provision · exact public law section
Sec. 304. None Cost estimate. of the funds made available in this title may be used to approve critical decision-2 or critical decision-3 under Department of Energy Order 413.3B, or any successive departmental guidance, for construction projects where the total project cost exceeds $100,000,000, until a separate independent cost estimate has been developed for the project for that critical decision.
2020
Energy and Water Development and Related Agencies Appropriations Act, 2021
Pub. L. 116–260 div. N § 304(b)(2)(A)(i) · 134 Stat. 1182
1. Added · 15 U.S.C. § 636m(a)(5)(11)
  Pub. L. 116–260, div. N, § 304(b)(2)(A)(i)–(iv), (vi)–(viii), added pars. (5), (7), and (9)
2. Redesignated · 15 U.S.C. § 636m(a)(5)(11)
  Pub. L. 116–260, div. N, § 304(b)(2)(A)(i)–(iv), (vi)–(viii), redesignated former pars. (4), (5), (6), and (7) as (6), (8), (10), and (11), respectively. Former par. (8) redesignated (12)
Source evidence
Code amendment note
Subsec. (a)(5) to (11). Pub. L. 116–260, div. N, § 304(b)(2)(A)(i)–(iv), (vi)–(viii), added pars. (5), (7), and (9) and redesignated former pars. (4), (5), (6), and (7) as (6), (8), (10), and (11), respectively. Former par. (8) redesignated (12).
Enacted provision · exact public law section
Sec. 304. None Cost estimate. of the funds made available in this title may be used to approve critical decision-2 or critical decision-3 under Department of Energy Order 413.3B, or any successive departmental guidance, for construction projects where the total project cost exceeds $100,000,000, until a separate independent cost estimate has been developed for the project for that critical decision.
2020
Energy and Water Development and Related Agencies Appropriations Act, 2021
Pub. L. 116–260 div. N § 304(b)(2)(A)(ix) · 134 Stat. 1182
Added · 15 U.S.C. § 636m(a)(11)(E)(H)
Pub. L. 116–260, div. N, § 304(b)(2)(A)(ix), added subpars. (E) to (H)
Source evidence
Code amendment note
Subsec. (a)(11)(E) to (H). Pub. L. 116–260, div. N, § 304(b)(2)(A)(ix), added subpars. (E) to (H).
Enacted provision · exact public law section
Sec. 304. None Cost estimate. of the funds made available in this title may be used to approve critical decision-2 or critical decision-3 under Department of Energy Order 413.3B, or any successive departmental guidance, for construction projects where the total project cost exceeds $100,000,000, until a separate independent cost estimate has been developed for the project for that critical decision.
2020
Energy and Water Development and Related Agencies Appropriations Act, 2021
Pub. L. 116–260 div. EE § 303(g) · 134 Stat. 1182
Inserted · 15 U.S.C. § 636m(a)(12)
Pub. L. 116–260, div. EE, § 303(g), inserted at end “Such payroll costs shall not include qualified wages taken into account in determining the credit allowed under subsection (a) or (d) of section 303 of the Taxpayer Certainty and Disaster Tax Relief Act of 2020.”
Source evidence
Code amendment note
Subsec. (a)(12). Pub. L. 116–260, div. EE, § 303(g), inserted at end “Such payroll costs shall not include qualified wages taken into account in determining the credit allowed under subsection (a) or (d) of section 303 of the Taxpayer Certainty and Disaster Tax Relief Act of 2020.”
Enacted provision · exact public law section
Sec. 303. None Oversight. Compliance. of the funds made available in this title shall be used for the construction of facilities classified as high-hazard nuclear facilities under 10 CFR Part 830 unless independent oversight is conducted by the Office of Enterprise Assessments to ensure the project is in compliance with nuclear safety requirements.
2020
Department of Justice Appropriations Act, 2021
Pub. L. 116–260 div. EE § 206(c)(1) · 134 Stat. 1182
Inserted · 15 U.S.C. § 636m(a)(12)
Pub. L. 116–260, div. EE, § 206(c)(1), inserted at end “Such payroll costs shall not include qualified wages taken into account in determining the credit allowed under section 2301 of the CARES Act or 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.”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 116–260, div. EE, § 206(c)(1), inserted at end “Such payroll costs shall not include qualified wages taken into account in determining the credit allowed under section 2301 of the CARES Act or 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.”
Enacted provision · exact public law section
Sec. 206. None Prisons and prisoners. of the funds made available under this title may be used by the Federal Bureau of Prisons or the United States Marshals Service for the purpose of transporting an individual who is a prisoner pursuant to conviction for crime under State or Federal law and is classified as a maximum or high security prisoner, other than to a prison or other facility certified by the Federal Bureau of Prisons as appropriately secure for housing such a prisoner.
2020
Department of Education Appropriations Act, 2021
Pub. L. 116–260 div. N § 315(b) · 134 Stat. 1182
Added · 15 U.S.C. § 636m(a)(12)
Pub. L. 116–260, div. N, § 315(b), amended par. (12) generally. Prior to amendment, par. (12) read as follows: “the term ‘payroll costs’ has the meaning given that term in paragraph (36) of section 636(a) of this title, as added by section 1102 of this Act.”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 116–260, div. N, § 315(b), amended par. (12) generally. Prior to amendment, par. (12) read as follows: “the term ‘payroll costs’ has the meaning given that term in paragraph (36) of section 636(a) of this title, as added by section 1102 of this Act.”
Enacted provision · exact public law section
Sec. 315. Section 2101(b) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6611(b)) is amended—(1) in paragraph (2)(A)(iv), by inserting “through fiscal year 2022” after “fiscal year 2020”; and (2) in paragraph (3), by striking “2021” both places it appears and inserting “2023” in its place.
2020
Energy and Water Development and Related Agencies Appropriations Act, 2021
Pub. L. 116–260 div. N § 304(b)(2)(A)(i) · 134 Stat. 1182
Redesignated · 15 U.S.C. § 636m(a)(12)
Pub. L. 116–260, div. N, § 304(b)(2)(A)(i), redesignated par. (8) as (12)
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 116–260, div. N, § 304(b)(2)(A)(i), redesignated par. (8) as (12).
Enacted provision · exact public law section
Sec. 304. None Cost estimate. of the funds made available in this title may be used to approve critical decision-2 or critical decision-3 under Department of Energy Order 413.3B, or any successive departmental guidance, for construction projects where the total project cost exceeds $100,000,000, until a separate independent cost estimate has been developed for the project for that critical decision.
2020
Energy and Water Development and Related Agencies Appropriations Act, 2021
Pub. L. 116–260 div. N § 304(b)(2)(B) · 134 Stat. 1182
Added · 15 U.S.C. § 636m(b)(5)(8)
Pub. L. 116–260, div. N, § 304(b)(2)(B), added pars. (5) to (8)
Source evidence
Code amendment note
Subsec. (b)(5) to (8). Pub. L. 116–260, div. N, § 304(b)(2)(B), added pars. (5) to (8).
Enacted provision · exact public law section
Sec. 304. None Cost estimate. of the funds made available in this title may be used to approve critical decision-2 or critical decision-3 under Department of Energy Order 413.3B, or any successive departmental guidance, for construction projects where the total project cost exceeds $100,000,000, until a separate independent cost estimate has been developed for the project for that critical decision.
2020
Energy and Water Development and Related Agencies Appropriations Act, 2021
Pub. L. 116–260 div. N § 304(b)(1)(B)(ii) · 134 Stat. 1182
Changed · 15 U.S.C. § 636m(c)
Pub. L. 116–260, div. N, § 304(b)(1)(B)(ii), made technical amendment to references in original act which appear in text wherever appearing as references to section 636(a) of this title
Source evidence
Code amendment note
Subsec. (c). Pub. L. 116–260, div. N, § 304(b)(1)(B)(ii), made technical amendment to references in original act which appear in text wherever appearing as references to section 636(a) of this title.
Enacted provision · exact public law section
Sec. 304. None Cost estimate. of the funds made available in this title may be used to approve critical decision-2 or critical decision-3 under Department of Energy Order 413.3B, or any successive departmental guidance, for construction projects where the total project cost exceeds $100,000,000, until a separate independent cost estimate has been developed for the project for that critical decision.
2020
Department of Homeland Security Appropriations Act, 2021
Pub. L. 116–260 div. N § 311(b)(1)(A) · 134 Stat. 1182
Inserted · 15 U.S.C. § 636m(d)(5)(B)(i)(II); 15 U.S.C. § 636m(d)(5)(B)(ii)(II)
Pub. L. 116–260, div. N, § 311(b)(1)(A), inserted “(or, with respect to a covered loan made on or after December 27, 2020, not later than the last day of the covered period with respect to such covered loan)” after “December 31, 2020”
Source evidence
Code amendment note
Subsec. (d)(5)(B)(i)(II), (ii)(II). Pub. L. 116–260, div. N, § 311(b)(1)(A), inserted “(or, with respect to a covered loan made on or after December 27, 2020, not later than the last day of the covered period with respect to such covered loan)” after “December 31, 2020”.
Enacted provision · exact public law section
(b) Notwithstanding section 206.361(a) of title 44, Code of Federal Regulations, the President may provide a loan until the last day of the fiscal year that is 3 fiscal years after the fiscal year in which the natural disaster described in such subsection occurs.
2020
Department of Homeland Security Appropriations Act, 2021
Pub. L. 116–260 div. N § 311(b)(1)(B) · 134 Stat. 1182
Inserted · 15 U.S.C. § 636m(d)(7)
Pub. L. 116–260, div. N, § 311(b)(1)(B), in introductory provisions and subpar. (B) inserted “(or, with respect to a covered loan made on or after December 27, 2020, ending on the last day of the covered period with respect to such covered loan)” after “December 31, 2020” and in subpar. (A)(ii) inserted “(or, with respect to a covered loan made on or after December 27, 2020, on or before the last day of the covered period with respect to such covered loan)” after “December 31, 2020”
Source evidence
Code amendment note
Subsec. (d)(7). Pub. L. 116–260, div. N, § 311(b)(1)(B), in introductory provisions and subpar. (B) inserted “(or, with respect to a covered loan made on or after December 27, 2020, ending on the last day of the covered period with respect to such covered loan)” after “December 31, 2020” and in subpar. (A)(ii) inserted “(or, with respect to a covered loan made on or after December 27, 2020, on or before the last day of the covered period with respect to such covered loan)” after “December 31, 2020”.
Enacted provision · exact public law section
(b) Notwithstanding section 206.361(a) of title 44, Code of Federal Regulations, the President may provide a loan until the last day of the fiscal year that is 3 fiscal years after the fiscal year in which the natural disaster described in such subsection occurs.
2020
Energy and Water Development and Related Agencies Appropriations Act, 2021
Pub. L. 116–260 div. N § 304(b)(2)(C) · 134 Stat. 1182
Inserted · 15 U.S.C. § 636m(d)(8)
Pub. L. 116–260, div. N, § 304(b)(2)(C), inserted “any payment on any covered operations expenditure, any payment on any covered property damage cost, any payment on any covered supplier cost, any payment on any covered worker protection expenditure,” after “rent obligation,”
Source evidence
Code amendment note
Subsec. (d)(8). Pub. L. 116–260, div. N, § 304(b)(2)(C), inserted “any payment on any covered operations expenditure, any payment on any covered property damage cost, any payment on any covered supplier cost, any payment on any covered worker protection expenditure,” after “rent obligation,”.
Enacted provision · exact public law section
Sec. 304. None Cost estimate. of the funds made available in this title may be used to approve critical decision-2 or critical decision-3 under Department of Energy Order 413.3B, or any successive departmental guidance, for construction projects where the total project cost exceeds $100,000,000, until a separate independent cost estimate has been developed for the project for that critical decision.
2020
Department of Homeland Security Appropriations Act, 2021
Pub. L. 116–260 div. N § 307(a)(1) · 134 Stat. 1182
Substituted · 15 U.S.C. § 636m(e)
Pub. L. 116–260, div. N, § 307(a)(1), substituted “Except as provided in subsection (l), an eligible” for “An eligible” in introductory provisions
Source evidence
Code amendment note
Subsec. (e). Pub. L. 116–260, div. N, § 307(a)(1), substituted “Except as provided in subsection (l), an eligible” for “An eligible” in introductory provisions.
Enacted provision · exact public law section
Sec. 307. In Grants. Waiver authority. making grants under the heading “Federal Emergency Management Agency—Federal Assistance”, for Staffing for Adequate Fire and Emergency Response grants, the Administrator of the Federal Emergency Management Agency may grant waivers from the requirements in subsections (a)(1)(A), (a)(1)(B), (a)(1)(E), (c)(1), (c)(2), and (c)(4) of section 34 of the Federal Fire Prevention and Control Act of 1974 (15 U.S.C. 2229a).
2020
Energy and Water Development and Related Agencies Appropriations Act, 2021
Pub. L. 116–260 div. N § 304(b)(2)(D)(i) · 134 Stat. 1182
1. Inserted · 15 U.S.C. § 636m(e)(2)
  Pub. L. 116–260, div. N, § 304(b)(2)(D)(i), inserted “purchase orders, orders, invoices,” after “transcripts of accounts,”
2. Substituted · 15 U.S.C. § 636m(e)(2)
  Pub. L. 116–260, div. N, § 304(b)(2)(D)(i), substituted “covered rent obligations, payments on covered operations expenditures, payments on covered property damage costs, payments on covered supplier costs, payments on covered worker protection expenditures,” for “covered lease obligations,”
Source evidence
Code amendment note
Subsec. (e)(2). Pub. L. 116–260, div. N, § 304(b)(2)(D)(i), inserted “purchase orders, orders, invoices,” after “transcripts of accounts,” and substituted “covered rent obligations, payments on covered operations expenditures, payments on covered property damage costs, payments on covered supplier costs, payments on covered worker protection expenditures,” for “covered lease obligations,”.
Enacted provision · exact public law section
Sec. 304. None Cost estimate. of the funds made available in this title may be used to approve critical decision-2 or critical decision-3 under Department of Energy Order 413.3B, or any successive departmental guidance, for construction projects where the total project cost exceeds $100,000,000, until a separate independent cost estimate has been developed for the project for that critical decision.
2020
Energy and Water Development and Related Agencies Appropriations Act, 2021
Pub. L. 116–260 div. N § 304(b)(2)(D)(ii) · 134 Stat. 1182
Inserted · 15 U.S.C. § 636m(e)(3)(B)
Pub. L. 116–260, div. N, § 304(b)(2)(D)(ii), inserted “make payments on covered operations expenditures, make payments on covered property damage costs, make payments on covered supplier costs, make payments on covered worker protection expenditures,” after “rent obligation,”
Source evidence
Code amendment note
Subsec. (e)(3)(B). Pub. L. 116–260, div. N, § 304(b)(2)(D)(ii), inserted “make payments on covered operations expenditures, make payments on covered property damage costs, make payments on covered supplier costs, make payments on covered worker protection expenditures,” after “rent obligation,”.
Enacted provision · exact public law section
Sec. 304. None Cost estimate. of the funds made available in this title may be used to approve critical decision-2 or critical decision-3 under Department of Energy Order 413.3B, or any successive departmental guidance, for construction projects where the total project cost exceeds $100,000,000, until a separate independent cost estimate has been developed for the project for that critical decision.
2020
Department of Homeland Security Appropriations Act, 2021
Pub. L. 116–260 div. N § 307(a)(2) · 134 Stat. 1182
Inserted · 15 U.S.C. § 636m(f)
Pub. L. 116–260, div. N, § 307(a)(2), inserted “or the certification required under subsection (l), as applicable” after “subsection (e)”
Source evidence
Code amendment note
Subsec. (f). Pub. L. 116–260, div. N, § 307(a)(2), inserted “or the certification required under subsection (l), as applicable” after “subsection (e)”.
Enacted provision · exact public law section
Sec. 307. In Grants. Waiver authority. making grants under the heading “Federal Emergency Management Agency—Federal Assistance”, for Staffing for Adequate Fire and Emergency Response grants, the Administrator of the Federal Emergency Management Agency may grant waivers from the requirements in subsections (a)(1)(A), (a)(1)(B), (a)(1)(E), (c)(1), (c)(2), and (c)(4) of section 34 of the Federal Fire Prevention and Control Act of 1974 (15 U.S.C. 2229a).
2020
Energy and Water Development and Related Agencies Appropriations Act, 2021
Pub. L. 116–260 div. N § 305(a) · 134 Stat. 1182
Amended · 15 U.S.C. § 636m(h)
Pub. L. 116–260, div. N, § 305(a), amended subsec. (h) generally. Prior to amendment, text read as follows: “If a lender has received the documentation required under this section from an eligible recipient attesting that the eligible recipient has accurately verified the payments for payroll costs, payments on covered mortgage obligations, payments on covered lease obligations, or covered utility payments during covered period—
Source evidence
Code amendment note
Subsec. (h). Pub. L. 116–260, div. N, § 305(a), amended subsec. (h) generally. Prior to amendment, text read as follows: “If a lender has received the documentation required under this section from an eligible recipient attesting that the eligible recipient has accurately verified the payments for payroll costs, payments on covered mortgage obligations, payments on covered lease obligations, or covered utility payments during covered period—
“(1) an enforcement action may not be taken against the lender under section 657t(e) of this title relating to loan forgiveness for the payments for payroll costs, payments on covered mortgage obligations, payments on covered lease obligations, or covered utility payments, as the case may be; and “(2) the lender shall not be subject to any penalties by the Administrator relating to loan forgiveness for the payments for payroll costs, payments on covered mortgage obligations, payments on covered lease obligations, or covered utility payments, as the case may be.”
Enacted provision · exact public law section
Sec. 305. Notwithstanding Determination. President. section 161 of the Energy Policy and Conservation Act (42 U.S.C. 6241), upon a determination by the President in this fiscal year that a regional supply shortage of refined petroleum product of significant scope and duration exists, that a severe increase in the price of refined petroleum product will likely result from such shortage, and that a draw down and sale of refined petroleum product would assist directly and significantly in reducing the adverse impact of such shortage, the Secretary of Energy may draw down and sell refined petroleum product from the Strategic Petroleum Reserve. Proceeds from a sale under this section shall be deposited into the SPR Petroleum Account established in section 167 of the Energy Policy and Conservation Act (42 U.S.C. 6247), and such amounts shall be available for obligation, without fiscal year limitation, consistent with that section.
2020
COVID-related Tax Relief Act of 2020
Pub. L. 116–260 div. N § 276(a)(1) · 134 Stat. 1182
Amended · 15 U.S.C. § 636m(i)
Pub. L. 116–260, div. N, § 276(a)(1), amended subsec. (i) generally. Prior to amendment, text read as follows: “For purposes of title 26, any amount which (but for this subsection) would be includible in gross income of the eligible recipient by reason of forgiveness described in subsection (b) shall be excluded from gross income.”
Source evidence
Code amendment note
Subsec. (i). Pub. L. 116–260, div. N, § 276(a)(1), amended subsec. (i) generally. Prior to amendment, text read as follows: “For purposes of title 26, any amount which (but for this subsection) would be includible in gross income of the eligible recipient by reason of forgiveness described in subsection (b) shall be excluded from gross income.”
Enacted provision · exact public law section
(1) In general.— Subsection (i) of section 7A of the Small Business Act, as redesignated, transferred, and amended by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, 15 USC 636m. is amended to read as follows: “(i) Tax Treatment.— For purposes of the Internal Revenue Code of 1986— “(1) no amount shall be included in the gross income of the eligible recipient by reason of forgiveness of indebtedness described in subsection (b), “(2) no deduction shall be denied, no tax attribute shall be reduced, and no basis increase shall be denied, by reason of the exclusion from gross income provided by paragraph (1), and “(3) in the case of an eligible recipient that is a partnership or S corporation— “(A) any amount excluded from income by reason of paragraph (1) shall be treated as tax exempt income for purposes of sections 705 and 1366 of the Internal Revenue Code of 1986, and “(B) except as provided by the Secretary of the Treasury (or the Secretary’s delegate), any increase in the adjusted basis of a partner’s interest in a partnership under section 705 of the Internal Revenue Code of 1986 with respect to any amount described in subparagraph (A) shall equal the partner’s distributive share of deductions resulting from costs giving rise to forgiveness described in subsection (b).” .
2020
Department of Homeland Security Appropriations Act, 2021
Pub. L. 116–260 div. N § 307(a)(3) · 134 Stat. 1182
Added · 15 U.S.C. § 636m(l)
Pub. L. 116–260, div. N, § 307(a)(3), added subsec. (l)
Source evidence
Code amendment note
Subsec. (l). Pub. L. 116–260, div. N, § 307(a)(3), added subsec. (l).
Enacted provision · exact public law section
Sec. 307. In Grants. Waiver authority. making grants under the heading “Federal Emergency Management Agency—Federal Assistance”, for Staffing for Adequate Fire and Emergency Response grants, the Administrator of the Federal Emergency Management Agency may grant waivers from the requirements in subsections (a)(1)(A), (a)(1)(B), (a)(1)(E), (c)(1), (c)(2), and (c)(4) of section 34 of the Federal Fire Prevention and Control Act of 1974 (15 U.S.C. 2229a).
2020
Energy and Water Development and Related Agencies Appropriations Act, 2021
Pub. L. 116–260 div. N § 306(1) · 134 Stat. 1182
Struck · 15 U.S.C. § 636m(l)
Pub. L. 116–260, div. N, § 306(1), struck out subsec. (l). Text read as follows: “An eligible recipient that received a covered loan before June 5, 2020, may elect for the covered period applicable to such covered loan to end on the date that is 8 weeks after the date of the origination of such covered loan.”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 116–260, div. N, § 306(1), struck out subsec. (l). Text read as follows: “An eligible recipient that received a covered loan before June 5, 2020, may elect for the covered period applicable to such covered loan to end on the date that is 8 weeks after the date of the origination of such covered loan.”
Enacted provision · exact public law section
Sec. 306. (a) Of the offsetting collections, including unobligated balances of such collections, in the “Department of Energy—Power Marketing Administration—Colorado River Basins Power Marketing Fund, Western Area Power Administration”, $21,400,000 shall be transferred to the “Department of the Interior—Bureau of Reclamation—Upper Colorado River Basin Fund” for the Bureau of Reclamation to carry out environmental stewardship and endangered species recovery efforts. (b) No funds shall be transferred directly from “Department of Energy—Power Marketing Administration—Colorado River Basins Power Marketing Fund, Western Area Power Administration” to the general fund of the Treasury in the current fiscal year.
2021
American Rescue Plan Act of 2021
Pub. L. 117–2 § 5001(c)(1)(B) · 135 Stat. 4
Changed · 15 U.S.C. § 636m(a)(12)
Pub. L. 117–2, § 5001(c)(1)(B), which directed insertion of “, or premiums taken into account in determining the credit allowed under section 6432 of title 26” before the period at the end of par. (12), was executed by making the insertion before the period at end of the penultimate sentence, to reflect the probable intent of Congress and the addition of a duplicative final sentence by section 303(g) of Pub. L. 116–260. See 2020 Amendment note below
Source evidence
Code amendment note
Subsec. (a)(12). Pub. L. 117–2, § 5001(c)(1)(B), which directed insertion of “, or premiums taken into account in determining the credit allowed under section 6432 of title 26” before the period at the end of par. (12), was executed by making the insertion before the period at end of the penultimate sentence, to reflect the probable intent of Congress and the addition of a duplicative final sentence by section 303(g) of Pub. L. 116–260. See 2020 Amendment note below.
Enacted provision · exact public law section
(B) by inserting before the period at the end the following: “, or premiums taken into account in determining the credit allowed under section 6432 of the Internal Revenue Code of 1986”.
Effective date note
Amendment by Pub. L. 117–2 applicable only with respect to applications for forgiveness of covered loans made under pars. (36) or (37) of section 636(a) of this title received on or after Mar. 11, 2021, see section 5001(c)(3) of Pub. L. 117–2, set out as a note under section 636 of this title.
2021
American Rescue Plan Act of 2021
Pub. L. 117–2 § 5001(c)(1)(A) · 135 Stat. 4
Substituted · 15 U.S.C. § 636m(a)(12)
Pub. L. 117–2, § 5001(c)(1)(A), substituted “CARES Act,” for “CARES Act or”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 117–2, § 5001(c)(1)(A), substituted “CARES Act,” for “CARES Act or”.
Enacted provision · exact public law section
(A) by striking “CARES Act or” and inserting “CARES Act,”; and
Effective date note
Amendment by Pub. L. 117–2 applicable only with respect to applications for forgiveness of covered loans made under pars. (36) or (37) of section 636(a) of this title received on or after Mar. 11, 2021, see section 5001(c)(3) of Pub. L. 117–2, set out as a note under section 636 of this title.

34 of 34 references resolved to an enrolled provision

Editorial Notes

References in Text

The National Emergencies Act, referred to in subsec. (a)(9)(A), is Pub. L. 94–412, Sept. 14, 1976, 90 Stat. 1255, which is classified principally to chapter 34 (§ 1601 et seq.) of Title 50, War and National Defense. For complete classification of this Act to the Code, see Short Title note set out under section 1601 of Title 50 and Tables.

Section 1102 of this Act, referred to in subsec. (a)(12), means section 1102 of div. A of Pub. L. 116–136.

Section 2301 of the CARES Act, referred to in subsec. (a)(12), is section 2301 of Pub. L. 116–136, which is set out as a note under section 3111 of Title 26, Internal Revenue Code.

Section 303 of the Taxpayer Certainty and Disaster Relief Act of 2020, referred to in subsec. (a)(12), is section 303 of div. EE of Pub. L. 116–260, Dec. 27, 2020, 134 Stat. 3075. Subsec. (d)(3)(C) of section 303 of the Act amended provisions set out as notes under section 3111 of Title 26, Internal Revenue Code. Subsecs. (a) to (c) and the rest of subsec. (d) of section 303 of the Act are not classified to the Code.

Codification

Section was formerly classified to section 9005 of this title prior to renumbering by section 304(b)(1)(A) of title III of div. N of Pub. L. 116–260.

Amendments2020–2021 · 2 rounds

2021

Subsec. (a)(12). Pub. L. 117–2, § 5001(c)(1)(B), which directed insertion of “, or premiums taken into account in determining the credit allowed under section 6432 of title 26” before the period at the end of par. (12), was executed by making the insertion before the period at end of the penultimate sentence, to reflect the probable intent of Congress and the addition of a duplicative final sentence by section 303(g) of Pub. L. 116–260. See 2020 Amendment note below.

Pub. L. 117–2, § 5001(c)(1)(A), substituted “CARES Act,” for “CARES Act or”.

2020

Subsec. (a)(1). Pub. L. 116–260, div. N, § 304(b)(1)(B)(i), substituted “section 636(a)(36) of this title” for “paragraph (36) of section 636(a) of this title, as added by section 1102”.

Subsec. (a)(3). Pub. L. 116–260, div. N, § 304(b)(2)(A)(v), added par. (3). Former par. (3) redesignated (4).

Pub. L. 116–142, § 3(b)(1), added par. (3) and struck out former par. (3) which read as follows: “the term ‘covered period’ means the 8-week period beginning on the date of the origination of a covered loan;”.

Subsec. (a)(4). Pub. L. 116–260, div. N, § 306(A), amended par. (4) generally. Prior to amendment, par. (4) read as follows: “the term ‘covered period’ means, subject to subsection (l), the period beginning on the date of the origination of a covered loan and ending the earlier of—

“(A) the date that is 24 weeks after such date of origination; or

“(B) December 31, 2020;”.

Pub. L. 116–260, div. N, § 304(b)(2)(A)(iii), (iv), redesignated par. (3) as (4). Former par. (4) redesignated (6).

Subsec. (a)(5) to (11). Pub. L. 116–260, div. N, § 304(b)(2)(A)(i)–(iv), (vi)–(viii), added pars. (5), (7), and (9) and redesignated former pars. (4), (5), (6), and (7) as (6), (8), (10), and (11), respectively. Former par. (8) redesignated (12).

Subsec. (a)(11)(E) to (H). Pub. L. 116–260, div. N, § 304(b)(2)(A)(ix), added subpars. (E) to (H).

Subsec. (a)(12). Pub. L. 116–260, div. EE, § 303(g), inserted at end “Such payroll costs shall not include qualified wages taken into account in determining the credit allowed under subsection (a) or (d) of section 303 of the Taxpayer Certainty and Disaster Tax Relief Act of 2020.”

Pub. L. 116–260, div. EE, § 206(c)(1), inserted at end “Such payroll costs shall not include qualified wages taken into account in determining the credit allowed under section 2301 of the CARES Act or 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.”

Pub. L. 116–260, div. N, § 315(b), amended par. (12) generally. Prior to amendment, par. (12) read as follows: “the term ‘payroll costs’ has the meaning given that term in paragraph (36) of section 636(a) of this title, as added by section 1102 of this Act.”

Pub. L. 116–260, div. N, § 304(b)(2)(A)(i), redesignated par. (8) as (12).

Subsec. (b)(5) to (8). Pub. L. 116–260, div. N, § 304(b)(2)(B), added pars. (5) to (8).

Subsec. (c). Pub. L. 116–260, div. N, § 304(b)(1)(B)(ii), made technical amendment to references in original act which appear in text wherever appearing as references to section 636(a) of this title.

Subsec. (d)(5)(B)(i)(II), (ii)(II). Pub. L. 116–260, div. N, § 311(b)(1)(A), inserted “(or, with respect to a covered loan made on or after December 27, 2020, not later than the last day of the covered period with respect to such covered loan)” after “December 31, 2020”.

Pub. L. 116–142, § 3(b)(2)(A), substituted “December 31, 2020” for “June 30, 2020”.

Subsec. (d)(7). Pub. L. 116–260, div. N, § 311(b)(1)(B), in introductory provisions and subpar. (B) inserted “(or, with respect to a covered loan made on or after December 27, 2020, ending on the last day of the covered period with respect to such covered loan)” after “December 31, 2020” and in subpar. (A)(ii) inserted “(or, with respect to a covered loan made on or after December 27, 2020, on or before the last day of the covered period with respect to such covered loan)” after “December 31, 2020”.

Pub. L. 116–142, § 3(b)(2)(B), added par. (7).

Subsec. (d)(8). Pub. L. 116–260, div. N, § 304(b)(2)(C), inserted “any payment on any covered operations expenditure, any payment on any covered property damage cost, any payment on any covered supplier cost, any payment on any covered worker protection expenditure,” after “rent obligation,”.

Pub. L. 116–142, § 3(b)(2)(B), added par. (8).

Subsec. (e). Pub. L. 116–260, div. N, § 307(a)(1), substituted “Except as provided in subsection (l), an eligible” for “An eligible” in introductory provisions.

Subsec. (e)(2). Pub. L. 116–260, div. N, § 304(b)(2)(D)(i), inserted “purchase orders, orders, invoices,” after “transcripts of accounts,” and substituted “covered rent obligations, payments on covered operations expenditures, payments on covered property damage costs, payments on covered supplier costs, payments on covered worker protection expenditures,” for “covered lease obligations,”.

Subsec. (e)(3)(B). Pub. L. 116–260, div. N, § 304(b)(2)(D)(ii), inserted “make payments on covered operations expenditures, make payments on covered property damage costs, make payments on covered supplier costs, make payments on covered worker protection expenditures,” after “rent obligation,”.

Subsec. (f). Pub. L. 116–260, div. N, § 307(a)(2), inserted “or the certification required under subsection (l), as applicable” after “subsection (e)”.

Subsec. (h). Pub. L. 116–260, div. N, § 305(a), amended subsec. (h) generally. Prior to amendment, text read as follows: “If a lender has received the documentation required under this section from an eligible recipient attesting that the eligible recipient has accurately verified the payments for payroll costs, payments on covered mortgage obligations, payments on covered lease obligations, or covered utility payments during covered period—

“(1) an enforcement action may not be taken against the lender under section 657t(e) of this title relating to loan forgiveness for the payments for payroll costs, payments on covered mortgage obligations, payments on covered lease obligations, or covered utility payments, as the case may be; and

“(2) the lender shall not be subject to any penalties by the Administrator relating to loan forgiveness for the payments for payroll costs, payments on covered mortgage obligations, payments on covered lease obligations, or covered utility payments, as the case may be.”

Subsec. (i). Pub. L. 116–260, div. N, § 276(a)(1), amended subsec. (i) generally. Prior to amendment, text read as follows: “For purposes of title 26, any amount which (but for this subsection) would be includible in gross income of the eligible recipient by reason of forgiveness described in subsection (b) shall be excluded from gross income.”

Subsec. (l). Pub. L. 116–260, div. N, § 307(a)(3), added subsec. (l).

Pub. L. 116–260, div. N, § 306(1), struck out subsec. (l). Text read as follows: “An eligible recipient that received a covered loan before June 5, 2020, may elect for the covered period applicable to such covered loan to end on the date that is 8 weeks after the date of the origination of such covered loan.”

Pub. L. 116–142, § 3(b)(3), added subsec. (l).

Statutory Notes and Related Subsidiaries

Effective Date of 2021 Amendment

Amendment by Pub. L. 117–2 applicable only with respect to applications for forgiveness of covered loans made under pars. (36) or (37) of section 636(a) of this title received on or after Mar. 11, 2021, see section 5001(c)(3) of Pub. L. 117–2, set out as a note under section 636 of this title.

Effective Date of 2020 Amendment

Pub. L. 116–260, div. N, title II, § 276(a)(2), Dec. 27, 2020, 134 Stat. 1979, provided that: “The amendment made by this subsection [amending this section] shall apply to taxable years ending after the date of the enactment of the CARES Act [Mar. 27, 2020].”

Amendment by section 304(b)(1)(A), (B), (2) of div. N of Pub. L. 116–260 effective as if included in Pub. L. 116–136 and applicable to any loan made pursuant to section 636(a)(36) of this title before, on, or after Dec. 27, 2020, including forgiveness of such a loan, with provisions relating to exclusion of loans already forgiven, see section 304(c) of Pub. L. 116–260, set out as a note under section 636 of this title.

Pub. L. 116–260, div. N, title III, § 305(b), Dec. 27, 2020, 134 Stat. 1997, provided that: “The amendment made by subsection (a) [amending this section] shall be effective as if included in the CARES Act (Public Law 116–136; 134 Stat. 281) and shall apply to any loan made pursuant to section 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36)) before, on, or after the date of enactment of this Act [Dec. 27, 2020], including forgiveness of such a loan.”

Pub. L. 116–260, div. N, title III, § 307(b), Dec. 27, 2020, 134 Stat. 2000, provided that: “The amendments made by subsection (a) [amending this section] shall be effective as if included in the CARES Act (Public Law 116–136; 134 Stat. 281) and shall apply to any loan made pursuant to section 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36)) before, on, or after the date of enactment of this Act [Dec. 27, 2020], including forgiveness of such a loan.”

Amendment by section 315(b) of div. N of Pub. L. 116–260 effective as if included in Pub. L. 116–136 and applicable to any loan made pursuant to section 636(a)(36) of this title before, on, or after Dec. 27, 2020, including forgiveness of such a loan, see section 315(c) of Pub. L. 116–260, set out as a note under section 636 of this title.

Except as otherwise provided, amendment by title III of div. N of Pub. L. 116–260 effective on Dec. 27, 2020, and applicable to loans and grants made on or after Dec. 27, 2020, see section 348 of Pub. L. 116–260, set out as a note under section 636 of this title.

Modification of Dates

Pub. L. 116–260, div. N, title III, § 311(b)(2), Dec. 27, 2020, 134 Stat. 2007, provided that: “The Administrator [of the Small Business Administration] and the Secretary of the Treasury may jointly, by regulation, modify any date in section 7A(d) of the Small Business Act [15 U.S.C. 636m(d)], as redesignated and transferred by section 304 of this Act [probably means section 304 of title III of div. N of Pub. L. 116–260], other than a deadline established under an amendment made by paragraph (1) [amending this section], in a manner consistent with the purposes of the Paycheck Protection Program to help businesses retain workers and meet financial obligations.”

Credits

2020–2021 · 4 acts

2020Pub. L. 85–536, § 2[7A], formerly Pub. L. 116–136, div. A, title I, § 1106, Mar. 27, 2020, 134 Stat. 297
2020Pub. L. 116–142, § 3(b), June 5, 2020, 134 Stat. 641
2020renumbered Pub. L. 85–536, § 2[7A], and amended Pub. L. 116–260, div. N, title II, § 276(a)(1), title III, §§ 304(b)(1)(A), (B), (2), 305(a), 306, 307(a), 311(b)(1), 315(b), div. EE, title II, § 206(c)(1), title III, § 303(g), Dec. 27, 2020, 134 Stat. 1979, 1993, 1994, 1996–1998, 2006, 2011, 3060, 3079
2021Pub. L. 117–2, title V, § 5001(c)(1), Mar. 11, 2021, 135 Stat. 84.

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(Pub. L. 85–536, § 2[7A], formerly Pub. L. 116–136, div. A, title I, § 1106, Mar. 27, 2020, 134 Stat. 297; Pub. L. 116–142, § 3(b), June 5, 2020, 134 Stat. 641; renumbered Pub. L. 85–536, § 2[7A], and amended Pub. L. 116–260, div. N, title II, § 276(a)(1), title III, §§ 304(b)(1)(A), (B), (2), 305(a), 306, 307(a), 311(b)(1), 315(b), div. EE, title II, § 206(c)(1), title III, § 303(g), Dec. 27, 2020, 134 Stat. 1979, 1993, 1994, 1996–1998, 2006, 2011, 3060, 3079; Pub. L. 117–2, title V, § 5001(c)(1), Mar. 11, 2021, 135 Stat. 84.)