Authority

American Rescue Plan Act of 2021, Pub. L. 117-2

TITLE V--COMMITTEE ON SMALL BUSINESS AND ENTREPRENEURSHIP

SEC. 5001. MODIFICATIONS TO PAYCHECK PROTECTION PROGRAM.

(a) Eligibility of Certain Nonprofit Entities for Covered Loans Under the Paycheck Protection Program.-

(1) In general.--Section 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36)), as amended by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (title III of division N of Public Law 116-260), is amended--

(A) in subparagraph (A)--

(i) in clause (xv), by striking ``and'' at the end;

(ii) in clause (xvi), by striking the period at the end and inserting ``; and''; and

(iii) by adding at the end the following:

``(xvii) the term `additional covered nonprofit entity'--

``(I) means an organization described in any paragraph of section 501(c) of the Internal Revenue Code of 1986, other than paragraph (3), (4), (6), or (19), and exempt from tax under section 501(a) of such Code; and

``(II) does not include any entity that, if the entity were a business concern, would be described in section 120.110 of title 13, Code of Federal Regulations (or in any successor regulation or other related guidance or rule that may be issued by the Administrator) other than a business concern described in paragraph (a) or (k) of such section.''; and

(B) in subparagraph (D)--

(i) in clause (iii), by adding at the end the following:

``(III) Eligibility of certain organizations.--

Subject to the provisions in this subparagraph, during the covered period--

``(aa) a nonprofit organization shall be eligible to receive a covered loan if the nonprofit

organization employs not more than 500 employees per physical location of the organization; and

``(bb) an additional covered nonprofit entity and an organization that, but for subclauses

(I)(dd) and (II)(dd) of clause (vii), would be eligible for a covered loan under clause (vii) shall be eligible to receive a covered loan if the entity or organization employs not more than 300 employees per physical location of the entity or organization.''; and

(ii) by adding at the end the following:

``(ix) Eligibility of additional covered nonprofit entities.--An additional covered nonprofit entity shall be eligible to receive a covered loan if--

``(I) the additional covered nonprofit entity does not receive more than 15 percent of its receipts from lobbying activities;

``(II) the lobbying activities of the additional covered nonprofit entity do not comprise more than 15 percent of the total activities of the organization;

``(III) the cost of the lobbying activities of the additional covered nonprofit entity did not exceed $1,000,000 during the most recent tax year of the additional covered nonprofit entity that ended prior to February 15, 2020; and

``(IV) the additional covered nonprofit entity employs not more than 300 employees.''

(2) Eligibility for second draw loans.--Paragraph (37)(A)(i) of section 7(a) of the Small Business Act (15 U.S.C. 636(a)), as added by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (title III of division N of Public Law 116-260), is amended by inserting ```additional covered nonprofit entity','' after ``the terms''.

(b) Eligibility of Internet Publishing Organizations for Covered Loans Under the Paycheck Protection Program.--

(1) In general.--Section 7(a)(36)(D) of the Small Business Act (15 U.S.C. 636(a)(36)(D)), as amended by subsection (a), is further amended--

(A) in clause (iii), by adding at the end the following:

``(IV) Eligibility of internet publishing organizations.—

A business concern or other organization that was not eligible to receive a covered loan the day before the date of enactment of this subclause, is assigned a North American Industry Classification System code of 519130, certifies in good faith as an Internet-only news publisher or Internet-only periodical publisher, and is engaged in the collection and distribution of local or regional and national news and information shall be eligible to receive a covered loan for the continued provision of news, information, content, or emergency information if--

``(aa) the business concern or organization employs not more than 500 employees, or the size standard established by the Administrator for that North American Industry Classification code, per physical location of the business concern or organization; and

``(bb) the business concern or organization makes a good faith certification that proceeds of the loan will be used to support expenses at the component of the business concern or organization that supports local or regional news.'';

(B) in clause (iv)--

(i) in subclause (III), by striking ``and'' at the end;

(ii) in subclause (IV)(bb), by striking the period at the end and inserting ``; and''; and

(iii) by adding at the end the following:

``(V) any business concern or other organization that was not eligible to receive a covered loan the day before the date of enactment of this subclause, is assigned a North American Industry Classification System code of 519130, certifies in good faith as an Internet-only news publisher or Internet-only periodical publisher, and is engaged in the collection and distribution of local or regional and national news and information, if the business concern or organization--

``(aa) employs not more than 500 employees, or the size standard established by the Administrator for that North American Industry Classification code, per physical location of the business concern or organization; and

``(bb) is majority owned or controlled by a business concern or organization that is assigned a North American Industry Classification System code of 519130.'';

(C) in clause (v), by striking ``clause (iii)(II), (iv)(IV), or (vii)'' and inserting ``subclause (II), (III), or

(IV) of clause (iii), subclause (IV) or (V) of clause (iv), clause (vii), or clause (ix)''; and

(D) in clause (viii)(II)--

(i) by striking ``business concern made eligible by clause (iii)(II) or clause (iv)(IV) of this subparagraph'' and inserting ``business concern made eligible by subclause (II) or (IV) of clause (iii) or subclause (IV) or (V) of clause (iv) of this subparagraph''; and

(ii) by inserting ``or organization'' after ``business concern'' each place it appears.

(2) Eligibility for second draw loans.--Section 7(a)(37)(A)(iv)(II) of the Small Business Act, as amended by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (title III of division N of Public Law 116-260), is amended by striking ``clause (iii)(II), (iv)(IV), or (vii)'' and inserting ``subclause (II), (III), or (IV) of clause (iii), subclause (IV) or (V) of clause (iv), clause (vii), or clause (ix)''.

(c) Coordination With Continuation Coverage Premium Assistance.--

(1) Paycheck protection program.--Section 7A(a)(12) of the Small Business Act (as redesignated, transferred, and amended by section 304(b) of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (Public Law 116-260)) is amended--

(A) by striking ``CARES Act or'' and inserting ``CARES Act,''; and

(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''.

(2) Paycheck protection program second draw.--Section 7(a)(37)(J)(iii)(I) of the Small Business Act, as amended by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (title III of division N of Public Law 116-260), is amended--

(A) by striking ``or'' at the end of item (aa);

(B) by striking the period at the end of item (bb) and inserting ``; or''; and

(C) by adding at the end the following new item:

``(cc) premiums taken into account in determining the credit allowed under section 6432

of the Internal Revenue Code of 1986.''.

(3) Applicability.--The amendments made by this subsection shall apply only with respect to applications for forgiveness of covered loans made under paragraphs (36) or (37) of section 7(a) of the Small Business Act, as amended by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (title III of division N of Public Law 116-260), that are received on or after the date of the enactment of this Act.