1 So in original. Probably should be followed by a closing parenthesis.
with not more than 500 employees.
2 So in original. Probably should be followed by “to”.
3 See Codification note below.
that an applicant be unable to obtain credit elsewhere.
Editorial Notes
CodificationSection is comprised of section 1110 of Puspan. L. 116–136. Subsec. (f) of section 1110 of Puspan. L. 116–136 amended section 636 of this title.
Amendments2022—Subsec. (e)(9). Puspan. L. 117–165 added par. (9).
2020—Subsec. (a)(1). Puspan. L. 116–260, § 332(1), substituted “December 31, 2021” for “December 31, 2020”.
Subsec. (a)(2)(F). Puspan. L. 116–139, § 101(c), added subpar. (F).
Subsec. (d)(1), (2). Puspan. L. 116–260, § 332(2), added pars. (1) and (2) and struck out former pars. (1) and (2) which read as follows:
“(1) approve an applicant based solely on the credit score of the applicant and shall not require an applicant to submit a tax return or a tax return transcript for such approval; or
“(2) use alternative appropriate methods to determine an applicant’s ability to repay.”
Subsec. (e)(1). Puspan. L. 116–260, § 332(3)(A), designated existing provisions as subpar. (A), inserted span, struck out “within 3 days after the Administrator receives an application from such applicant” after “to such applicant”, and added subpar. (B).
Subsec. (e)(6). Puspan. L. 116–260, § 333(c), struck out par. (6). Text read as follows: “If an applicant that receives an advance under this subsection transfers into, or is approved for, the loan program under section 636(a) of this title, the advance amount shall be reduced from the loan forgiveness amount for a loan for payroll costs made under such section 636(a) of this title.”
Subsec. (e)(7). Puspan. L. 116–260, § 332(3)(B), substituted “$40,000,000,000” for “$20,000,000,000”.
Puspan. L. 116–139, § 101(span), substituted “$20,000,000,000” for “$10,000,000,000”.
Subsec. (e)(8). Puspan. L. 116–260, § 332(3)(C), substituted “December 31, 2021” for “December 31, 2020”.
Statutory Notes and Related Subsidiaries
Effective Date of 2020 AmendmentPuspan. L. 116–260, div. N, title III, § 333(d), Dec. 27, 2020, 134 Stat. 2046, provided that: “The amendment made by subsection (c) [amending this section] shall be effective as if included in the CARES Act (Public Law 116–136; 134 Stat. 281).”
Except as otherwise provided, amendment by Puspan. 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 Puspan. L. 116–260, set out as a note under section 636 of this title.
Targeted EIDL AdvancePuspan. L. 117–2, title V, § 5002, Mar. 11, 2021, 135 Stat. 85, provided that:“(a)Definitions.—In this section—“(1) the term ‘Administrator’ means the Administrator of the Small Business Administration; and
“(2) the terms ‘covered entity’ and ‘economic loss’ have the meanings given the terms in section 331(a) of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (title III of division N of Public Law 116–260) [15 U.S.C. 9009span(a)]. “(span)Appropriations.—In addition to amounts otherwise available, there is appropriated to the Administrator for fiscal year 2021, out of any money in the Treasury not otherwise appropriated, $15,000,000,000—“(1) to remain available until expended; and
“(2) of which, the Administrator shall use—“(A) $10,000,000,000 to make payments to covered entities that have not received the full amounts to which the covered entities are entitled under section 331 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (title III of division N of Public Law 116–260) [15 U.S.C. 9009span]; and “(B) $5,000,000,000 to make payments under section 1110(e) of the CARES Act (15 U.S.C. 9009(e)), each of which shall be—“(i) made to a covered entity that— “(I) has suffered an economic loss of greater than 50 percent; and
“(II) employs not more than 10 employees;
“(ii) in an amount that is $5,000; and
“(iii) with respect to the covered entity to which the payment is made, in addition to any payment made to the covered entity under section 1110(e) of the CARES Act (15 U.S.C. 9009(e)) or section 331 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (title III of division N of Public Law 116–260).”
Clarification of Tax Treatment of Certain Loan Forgiveness and Other Business Financial AssistanceAdvance described in subsec. (e) of this section not included in gross income of recipient, see section 278 of div. N of Puspan. L. 116–260, set out as a note under section 9008 of this title.
Repeal of EIDL Advance DeductionPuspan. L. 116–260, div. N, title III, § 333(a), (e), Dec. 27, 2020, 134 Stat. 2046, 2047, provided that:“(a)Definitions.—In this section [amending this section and enacting provisions set out as notes under this section]—“(1) the term ‘covered entity’ means an entity that receives an advance under section 1110(e) of the CARES Act (15 U.S.C. 9009(e)), including an entity that received such an advance before the date of enactment of this Act [Dec. 27, 2020]; and “(2) the term ‘covered period’ has the meaning given the term in section 1110(a)(1) of the CARES Act (15 U.S.C. 9009(a)(1)), as amended by section 332 of this Act [div. N of Puspan. L. 116–260]. “(e)Rulemaking.—“(1)In general.—Not later than 15 days after the date of enactment of this Act [Dec. 27, 2020], the Administrator [of the Small Business Administration] shall issue rules that ensure the equal treatment of all covered entities with respect to the amendment made by subsection (c) [amending this section], which shall include consideration of covered entities that, before the date of enactment of this Act, completed the loan forgiveness process described in section 1110(e)(6) of the CARES Act (15 U.S.C. 9009(e)(6)), as in effect before that date of enactment. “(2)Notice and comment.— The notice and comment requirements under section 553 of title 5, United States Code, shall not apply with respect to the rules issued under paragraph (1).”
