15 USC 9009 - Emergency EIDL grants

U.S Code last checked for updates: Nov 25, 2024

§ 9009.

Emergency EIDL grants

(a)

Definitions

In this section—

(1)

the term “covered period” means the period beginning on January 31, 2020 and ending on December 31, 2021; and

(2)

the term “eligible entity” means—

(A)

a business with not more than 500 employees;

(B)

any individual who operates under a sole proprietorship, with or without employees, or as an independent contractor;

(C)

a cooperative with not more than 500 employees;

(D)

an ESOP (as defined in section 632 of this title) with not more than 500 employees;

(E)

a tribal small business concern, as described in section 657a(b)(2)(C) of this title, with not more than 500 employees; or

(F)

an agricultural enterprise (as defined in section 647(b) of this title 1

 So in original. Probably should be followed by a closing parenthesis.

with not more than 500 employees.

(b)

Eligible entities

(c)

Terms; credit elsewhere

With respect to a loan made under section 636(b)(2) of this title in response to COVID–19 during the covered period, the Administrator shall waive—

(1)

any rules related 2

 So in original. Probably should be followed by “to”.

the personal guarantee on advances and loans of not more than $200,000 during the covered period for all applicants;

(2)

the requirement that an applicant needs to be in business for the 1-year period before the disaster, except that no waiver may be made for a business that was not in operation on January 31, 2020; and

(3)

the requirement in the flush matter following subparagraph (E) of section 636(b)(2) of this title, as so redesignated by subsection (f) of this section,3

 See Codification note below.

that an applicant be unable to obtain credit elsewhere.

(d)

Approval and ability to repay for small dollar loans

With respect to a loan made under section 636(b)(2) of this title in response to COVID–19 during the covered period, the Administrator may—

(1)

approve an applicant—

(A)

based solely on the credit score of the applicant; or

(B)

by using alternative appropriate methods to determine an applicant’s ability to repay; and

(2)

use information from the Department of the Treasury to confirm that—

(A)

an applicant is eligible to receive such a loan; or

(B)

the information contained in an application for such a loan is accurate.

(e)

Emergency grant

(1)

In general

(A)

Advances

(B)

Timing

With respect to each request submitted to the Administrator under subparagraph (A), the Administrator shall, not later than 21 days after the date on which the Administrator receives the request—

(i)

verify whether the entity is an entity that is eligible for a loan made under section 636(b)(2) of this title during the covered period, as described in subsection (b);

(ii)

if the Administrator, under clause (i), verifies that the entity submitting the request is an entity that is eligible, as described in that clause, provide the advance requested by the entity; and

(iii)

with respect to an entity that the Administrator determines is not entitled to receive an advance under this subsection, provide the entity with a notification explaining why the Administrator reached that determination.

(2)

Verification

(3)

Amount

(4)

Use of funds

An advance provided under this subsection may be used to address any allowable purpose for a loan made under section 636(b)(2) of this title, including—

(A)

providing paid sick leave to employees unable to work due to the direct effect of the COVID–19;

(B)

maintaining payroll to retain employees during business disruptions or substantial slowdowns;

(C)

meeting increased costs to obtain materials unavailable from the applicant’s original source due to interrupted supply chains;

(D)

making rent or mortgage payments; and

(E)

repaying obligations that cannot be met due to revenue losses.

(5)

Repayment

(6)

Repealed. Pub. L. 116–260, div. N, title III, § 333(c), Dec. 27, 2020, 134 Stat. 2046

(7)

Authorization of appropriations

(8)

Termination

(9)

Statute of limitations

(Pub. L. 116–136, div. A, title I, § 1110, Mar. 27, 2020, 134 Stat. 306; Pub. L. 116–139, div. A, § 101(b), (c), Apr. 24, 2020, 134 Stat. 620, 621; Pub. L. 116–260, div. N, title III, §§ 332, 333(c), Dec. 27, 2020, 134 Stat. 2045, 2046; Pub. L. 117–165, § 2(b), Aug. 5, 2022, 136 Stat. 1363.)

cite as: 15 USC 9009