US Code

Public Law 119-73 (01/23/2026)

15 U.S.C. § 9008

United States Treasury program management authority

(a)

Definitions

In this section—
(1)
section 1813 of title 12 the terms “appropriate Federal banking agency” and “insured depository institution” have the meanings given those terms in ;
(2)
section 1752 of title 12 the term “insured credit union” has the meaning given the term in ; and
(3)
the term “Secretary” means the Secretary of the Treasury.
(b)

Authority to include additional financial institutions

12 U.S.C. 200150 U.S.C. 1601The Department of the Treasury, in consultation with the Administrator, and the Chairman of the Farm Credit Administration shall establish criteria for insured depository institutions, insured credit unions, institutions of the Farm Credit System chartered under the Farm Credit Act of 1971 ( et seq.), and other lenders that do not already participate in lending under programs of the Administration, to participate in the paycheck protection program to provide loans under this section until the date on which the national emergency declared by the President under the National Emergencies Act ( et seq.) with respect to the Coronavirus Disease 2019 (COVID–19) expires.

(c)

Safety and soundness

12 U.S.C. 2001An insured depository institution, insured credit union, institution of the Farm Credit System chartered under the Farm Credit Act of 1971 ( et seq.), or other lender may only participate in the program established under this section if participation does not affect the safety and soundness of the institution or lender, as determined by the Secretary in consultation with the appropriate Federal banking agencies or the National Credit Union Administration Board, as applicable.

(d)

Regulations for lenders and loans

(1)

In general

The Secretary may issue regulations and guidance as necessary to carry out the purposes of this section, including to—
(A)
allow additional lenders to originate loans under this section; and
(B)
establish terms and conditions for loans under this section, including terms and conditions concerning compensation, underwriting standards, interest rates, and maturity.
(2)

Requirements

The terms and conditions established under paragraph (1) shall provide for the following:
(A)
15 U.S.C. 636(a) A rate of interest that does not exceed the maximum permissible rate of interest available on a loan of comparable maturity under paragraph (36) of section 7(a) of the Small Business Act (), as added by section 1102 of this Act.
(B)
15 U.S.C. 636(a) Terms and conditions that, to the maximum extent practicable, are consistent with the terms and conditions required under the following provisions of paragraph (36) of section 7(a) of the Small Business Act (), as added by section 1102 of this Act:
(i)
Subparagraph (D), pertaining to borrower eligibility.
(ii)
Subparagraph (E), pertaining to the maximum loan amount.
(iii)
Subparagraph (F)(i), pertaining to allowable uses of program loans.
(iv)
Subparagraph (H), pertaining to fee waivers.
(v)
Subparagraph (M), pertaining to loan deferment.
(C)
15 U.S.C. 636(a)(2) A guarantee percentage that, to the maximum extent practicable, is consistent with the guarantee percentage required under subparagraph (F) of section 7(a)(2) of the Small Business Act (), as added by section 1102 of this Act.
(D)
15 U.S.C. 636m Loan forgiveness under terms and conditions that, to the maximum extent practicable, is consistent with the terms and conditions for loan forgiveness under section 7A of the Small Business Act [].
(e)

Additional regulations generally

1

1 See References in Text note below.
2
2 So in original.
The Secretary may issue regulations and guidance as necessary to carry out the purposes of this section, including to allow additional lenders to originate loans under this title  and to establish terms and conditions such as compensation, underwriting standards, interest rates, and maturity for under  this section.

(f)

Certification

As a condition of receiving a loan under this section, a borrower shall certify under terms acceptable to the Secretary that the borrower—
(1)
15 U.S.C. 636(a) does not have an application pending for a loan under section 7(a) of the Small Business Act () for the same purpose; and
(2)
has not received such a loan during the period beginning on and ending on .
(g)

Opt-in for SBA qualified lenders

3

3 So in original. Probably should be preceded by “section”.
15 U.S.C. 636(a)15 U.S.C. 636(a)Lenders qualified to participate as a lender under 7(a)  of the Small Business Act () may elect to participate in the paycheck protection program under the criteria, terms, and conditions established under this section. Such participation shall not preclude the lenders from continuing participation as a lender under section 7(a) of the Small Business Act ().

(h)

Program administration

50 U.S.C. 1601With guidance from the Secretary, the Administrator shall administer the program established under this section, including the making and purchasing of guarantees on loans under the program, until the date on which the national emergency declared by the President under the National Emergencies Act ( et seq.) with respect to the Coronavirus Disease 2019 (COVID–19) expires.

(i)

Criminal penalties

15 U.S.C. 63115 U.S.C. 645A loan under this section shall be deemed to be a loan under the Small Business Act ( et seq.) for purposes of section 16 of such Act ().

Pub. L. 116–136, div. A, title I, § 1109134 Stat. 304Pub. L. 116–260, div. N, title III, § 304(b)(1)(C)(i)134 Stat. 1994(, , ; , , .)

Editorial Notes

References in Text

Pub. L. 92–18185 Stat. 583section 2001 of Title 12The Farm Credit Act of 1971, referred to in subsecs. (b) and (c), is , , , which is classified principally to chapter 23 (§ 2001 et seq.) of Title 12, Banks and Banking. For complete classification of this Act to the Code, see Short Title note set out under and Tables.

Pub. L. 94–41290 Stat. 1255section 1601 of Title 50The National Emergencies Act, referred to in subsecs. (b) and (h), is , , , 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 and Tables.

section 1102 of div. A of Pub. L. 116–136Section 1102 of this Act, referred to in subsec. (d)(2), means .

Pub. L. 116–136134 Stat. 286section 636 of this titleThis title, referred to in subsec. (e), is title I of div. A of , , , which enacted this subchapter and amended, and enacted provisions set out as notes under, and several sections in Title 11, Bankruptcy. For complete classification of title I to the Code, see Tables.

Pub. L. 85–536, § 272 Stat. 384section 631 of this titleThe Small Business Act, referred to in subsec. (i), is (1 et seq.), , , which is classified generally to chapter 14A (§ 631 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under and Tables.

Amendments

Pub. L. 116–260section 9005 of this title2020—Subsec. (d)(2)(D). substituted “section 7A of the Small Business Act” for “”.

Statutory Notes and Related Subsidiaries

Effective Date of 2020 Amendment

Pub. L. 116–260Pub. L. 116–136section 636(a)(36) of this titlesection 304(c) of Pub. L. 116–260section 636 of this titleAmendment by effective as if included in and applicable to any loan made pursuant to before, on, or after , including forgiveness of such a loan, with provisions relating to exclusion of loans already forgiven, see , set out as a note under .

Clarification of Tax Treatment of Certain Loan Forgiveness and Other Business Financial Assistance

Pub. L. 116–260, div. N, title II, § 278134 Stat. 1980

“(a)

United States Treasury Program Management Authority .—

26 U.S.C. 1For purposes of the Internal Revenue Code of 1986 [ et seq.]—
“(1)
15 U.S.C. 9008(d)(2)(D) no amount shall be included in the gross income of a borrower by reason of forgiveness of indebtedness described in section 1109(d)(2)(D) of the CARES Act [],
“(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 a borrower that is a partnership or S corporation—
“(A)
26 U.S.C. 705 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 [, 1366], 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 section 1109(d)(2)(D) of the CARES Act.
“(b)

Emergency EIDL Grants and Targeted EIDL Advances .—

For purposes of the Internal Revenue Code of 1986—
“(1)
15 U.S.C. 9009(e)15 U.S.C. 9009b any advance described in section 1110(e) of the CARES Act [] or any funding under section 331 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act [] shall not be included in the gross income of the person that receives such advance or funding,
“(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 a partnership or S corporation that receives such advance or funding—
“(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)
the Secretary of the Treasury (or the Secretary’s delegate) shall prescribe rules for determining a partner’s distributive share of any amount described in subparagraph (A) for purposes of section 705 of the Internal Revenue Code of 1986.
“(c)

Subsidy for Certain Loan Payments .—

For purposes of the Internal Revenue Code of 1986—
“(1)
15 U.S.C. 9011(c) any payment described in section 1112(c) of the CARES Act [] shall not be included in the gross income of the person on whose behalf such payment is made,
“(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 a partnership or S corporation on whose behalf of a payment described in section 1112(c) of the CARES Act is made—
“(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 sum of the partner’s distributive share of deductions resulting from interest and fees described in section 1112(c) of the CARES Act and the partner’s share, as determined under section 752 of the Internal Revenue Code of 1986, of principal described in section 1112(c) of the CARES Act.
“(d)

Grants for Shuttered Venue Operators .—

For purposes of the Internal Revenue Code of 1986—
“(1)
15 U.S.C. 9009a any grant made under section 324 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act [] shall not be included in the gross income of the person that receives such grant,
“(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 a partnership or S corporation that receives such grant—
“(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)
the Secretary of the Treasury (or the Secretary’s delegate) shall prescribe rules for determining a partner’s distributive share of any amount described in subparagraph (A) for purposes of section 705 of the Internal Revenue Code of 1986.
“(e)

Effective Dates.—

“(1)

In general .—

Pub. L. 116–136Except as otherwise provided in this subsection, subsections (a), (b), and (c) shall apply to taxable years ending after the date of the enactment of the CARES Act [, approved ].
“(2)

Grants for shuttered venue operators; targeted eidl advances .—

Subsection (d), and so much of subsection (b) as relates to funding under section 331 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, shall apply to taxable years ending after the date of the enactment of this Act [].”
, , , provided that: