US Code

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

15 U.S.C. § 9009b

Targeted EIDL advance for small business continuity, adaptation, and resiliency

(a)

Definitions

In this section:
(1)

Agricultural enterprise

section 647(b) of this titleThe term “agricultural enterprise” has the meaning given the term in .

(2)

Covered entity

The term “covered entity”—
(A)
means an eligible entity that—
(i)
section 636(b)(2) of this title applies for a loan under during the covered period, including before ;
(ii)
is located in a low-income community;
(iii)
has suffered an economic loss of greater than 30 percent; and
(iv)
employs not more than 300 employees; and
(B)
except with respect to an entity included under section 123.300(c) of title 13, Code of Federal Regulations, or any successor regulation, does not include an agricultural enterprise.
(3)

Covered period

section 9009(a)(1) of this titleThe term “covered period” has the meaning given the term in , as amended by section 332 of this Act.

(4)

Economic loss

The term “economic loss” means, with respect to a covered entity—
(A)
the amount by which the gross receipts of the covered entity declined during an 8-week period between , and , relative to a comparable 8-week period immediately preceding , or during 2019; or
(B)
if the covered entity is a seasonal business concern, such other amount determined appropriate by the Administrator.
(5)

Eligible entity

section 636(b)(2) of this titlesection 9009(b) of this titleThe term “eligible entity” means an entity that, during the covered period, is eligible for a loan made under , as described in .

(6)

Low-income community

section 45D(e) of title 26The term “low-income community” has the meaning given the term in .

(b)

Entitlement to full amount

(1)

In general

section 9009(e) of this titleSubject to paragraph (2), a covered entity, after submitting a request to the Administrator that the Administrator verifies under subsection (c), shall receive a total of $10,000 under , without regard to whether—
(A)
section 636(b)(2) of this title the applicable loan for which the covered entity applies or applied under is or was approved;
(B)
the covered entity accepts or accepted the offer of the Administrator with respect to an approved loan described in subparagraph (A); or
(C)
section 636(a)(36) of this title the covered entity has previously received a loan under .
(2)

Effect of previously received amounts

(A)

In general

section 9009(e) of this titleWith respect to a covered entity that received an emergency grant under before , the amount of the payment that the covered entity shall receive under this subsection (after satisfaction of the procedures required under subparagraph (B)) shall be the difference between $10,000 and the amount of that previously received grant.

(B)

Procedures

If the Administrator receives a request under paragraph (1) from a covered entity described in subparagraph (A) of this paragraph, the Administrator shall, not later than 21 days after the date on which the Administrator receives the request—
(i)
perform the verification required under subsection (c);
(ii)
if the Administrator, under subsection (c), verifies that the entity is a covered entity, provide to the covered entity a payment in the amount described in subparagraph (A); and
(iii)
with respect to a covered entity that the Administrator determines is not entitled to a payment under this section, provide the covered entity with a notification explaining why the Administrator reached that determination.
(C)

Rule of construction

section 9009(e) of this titleNothing in this paragraph may be construed to require any entity that received an emergency grant under before , to repay any amount of that grant.

(c)

Verification

In carrying out this section, the Administrator shall require any information, including any tax records, from an entity submitting a request under subsection (b) that the Administrator determines to be necessary to verify that the entity is a covered entity, without regard to whether the entity has previously submitted such information to the Administrator.

(d)

Order of processing

The Administrator shall process and approve requests for payments under subsection (b) in the order that the Administrator receives the requests, except that the Administrator shall give—
(1)
first priority to covered entities described in subsection (b)(2)(A); and
(2)
section 9009(e) of this title second priority to covered entities that have not received emergency grants under , as of the date on which the Administrator receives such a request, because of the unavailability of funding to carry out such section 9009(e).
(e)

Applicability

section 636(b)(2) of this titleIn addition to any other restriction imposed under this section, any eligibility restriction applicable to a loan made under , including any restriction under section 123.300 or 123.301 of title 13, Code of Federal Regulations, or any successor regulation, shall apply with respect to funding provided under this section.

(f)

Notification required

The Administrator shall provide notice to each of the following entities stating that the entity may be eligible for a payment under this section if the entity satisfies the requirements under clauses (ii), (iii), and (iv) of subsection (a)(2)(A):
(1)
section 9009(e) of this title Each entity that received an emergency grant under before .
(2)
Each entity that, before —
(A)
section 636(b)(2) of this title applied for a loan under ; and
(B)
section 9009(e) of this title did not receive an emergency grant under because of the unavailability of funding to carry out such section 9009(e).
(g)

Administration

In carrying out this section, the Administrator may rely on loan officers and other personnel of the Office of Disaster Assistance of the Administration and other resources of the Administration, including contractors of the Administration.

(h)

Authorization of appropriations

There are authorized to be appropriated to the Administrator $20,000,000,000 to carry out this section—
(1)
which shall remain available through ; and
(2)
of which $20,000,000 is authorized to be appropriated to the Inspector General of the Administration to prevent waste, fraud, and abuse with respect to funding provided under this section.
(i)

Statute of limitations

Notwithstanding any other provision of law, any criminal charge or civil enforcement action alleging that a borrower engaged in fraud with respect to the use of any amount received pursuant to this section shall be filed not later than 10 years after the offense was committed.

Pub. L. 116–260, div. N, title III, § 331134 Stat. 2043Pub. L. 117–165, § 2(c)136 Stat. 1363(, , ; , , .)

Editorial Notes

References in Text

section 332 of div. N of Pub. L. 116–260Section 332 of this Act, referred to in subsec. (a)(3), is .

Codification

Section was enacted as part of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, and not as part of the CARES Act which in part comprises this chapter.

Amendments

Pub. L. 117–1652022—Subsec. (i). added subsec. (i).

Statutory Notes and Related Subsidiaries

Effective Date

section 348 of Pub. L. 116–260section 636 of this titleSection effective on , and applicable to loans and grants made on or after , see , set out as an Effective Date of 2020 Amendment note under .

Tax Treatment of Targeted EIDL Advances

Pub. L. 117–2, title IX, § 9672135 Stat. 184

26 U.S.C. 1“For purposes of the Internal Revenue Code of 1986 [ et seq.]—
“(1)
Public Law 116–26015 U.S.C. 9009b amounts received from the Administrator of the Small Business Administration in the form of a targeted EIDL advance under section 331 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (title III of division N of ) [] shall not be included in the gross income of the person that receives such amounts,
“(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 amounts—
“(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)
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.”
, , , provided that:

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

section 278 of div. N of Pub. L. 116–260section 9008 of this titleFunding under this section not included in gross income of recipient, see , set out as a note under .

Definitions

section 302 of div. N of Pub. L. 116–260section 9001 of this title“Administration” and “Administrator” mean the Small Business Administration and Administrator of the Small Business Administration, see , set out as a note under .