U.S. Code » Title 15 » Chapter CHAPTER 116— CORONAVIRUS ECONOMIC STABILIZATION (CARES ACT) › Subchapter SUBCHAPTER I— KEEPING AMERICAN WORKERS PAID AND EMPLOYED

15 U.S.C. § 9009

Emergency EIDL grants

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(a) DefinitionsIn 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 11 So in original. Probably should be followed by a closing parenthesis. with not more than 500 employees.(b) Eligible entities

During the covered period, in addition to small business concerns, private nonprofit organizations, and small agricultural cooperatives, an eligible entity shall be eligible for a loan made under section 636(b)(2) of this title.

(c) Terms; credit elsewhereWith 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 22 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,33 See Codification note below. that an applicant be unable to obtain credit elsewhere.(d) Approval and ability to repay for small dollar loansWith 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

During the covered period, an entity included for eligibility in subsection (b), including small business concerns, private nonprofit organizations, and small agricultural cooperatives, that applies for a loan under section 636(b)(2) of this title in response to COVID–19 may request that the Administrator provide an advance that is, subject to paragraph (3), in the amount requested by such applicant to such applicant.

(B) TimingWith 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

Before disbursing amounts under this subsection, the Administrator shall verify that the applicant is an eligible entity by accepting a self-certification from the applicant under penalty of perjury pursuant to section 1746 of title 28.

(3) Amount

The amount of an advance provided under this subsection shall be not more than $10,000.

(4) Use of fundsAn 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

An applicant shall not be required to repay any amounts of an advance provided under this subsection, even if subsequently denied a loan under section 636(b)(2) of this title.

(6) Repealed. Pub. L. 116–260, div. N, title III, § 333(c), Dec. 27, 2020, 134 Stat. 2046(7) Authorization of appropriations

There is authorized to be appropriated to the Administration $40,000,000,000 to carry out this subsection.

(8) Termination

The authority to carry out grants under this subsection shall terminate on December 31, 2021.

(9) 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 an advance received under this subsection shall be filed not later than 10 years after the offense was committed.

(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.)Editorial NotesCodification

Section is comprised of section 1110 of Pub. L. 116–136. Subsec. (f) of section 1110 of Pub. L. 116–136 amended section 636 of this title.

Amendments

2022—Subsec. (e)(9). Pub. L. 117–165 added par. (9).

2020—Subsec. (a)(1). Pub. L. 116–260, § 332(1), substituted “December 31, 2021” for “December 31, 2020”.

Subsec. (a)(2)(F). Pub. L. 116–139, § 101(c), added subpar. (F).

Subsec. (d)(1), (2). Pub. 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). Pub. L. 116–260, § 332(3)(A), designated existing provisions as subpar. (A), inserted heading, 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). Pub. 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). Pub. L. 116–260, § 332(3)(B), substituted “$40,000,000,000” for “$20,000,000,000”.

Pub. L. 116–139, § 101(b), substituted “$20,000,000,000” for “$10,000,000,000”.

Subsec. (e)(8). Pub. L. 116–260, § 332(3)(C), substituted “December 31, 2021” for “December 31, 2020”.

Statutory Notes and Related SubsidiariesEffective Date of 2020 Amendment

Pub. 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 Pub. 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 Pub. L. 116–260, set out as a note under section 636 of this title.

Targeted EIDL Advance

Pub. 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. 9009b(a)].“(b)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. 9009b]; 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 Assistance

Advance described in subsec. (e) of this section not included in gross income of recipient, see section 278 of div. N of Pub. L. 116–260, set out as a note under section 9008 of this title.

Repeal of EIDL Advance Deduction

Pub. 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 Pub. 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).”

Notes of Decisions
Cited in 16 cases (13 in the last 5 years), 2020–2026 · leading case: Brennan v. USA (E.D. Ark. 2020).
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Brennan v. USA (E.D. Ark. 2020). · cites it 6× “See 15 U.S.C. § 9009 (e)(7). The relevant portion of the CARES Act provides: (e) Emergency grant (1) In general During the covered period, an entity included for eligibility in subsection (b), including small business concerns, private nonprofit organizations, and small…”
Privilege AHRC v. Garcia (D.N.M. 2023). · cites it 4× “15 U.S.C. § 9009 (a)(1), (e)(8). On May 15, 2022, the COVID-19 EIDL program’s funding lapsed and the program ended.”
LIT Ventures, LLC v. Jovita Carranza (D. Nev. 2020). · cites it 4× “3 15 U.S.C. § 9009 (e)(7). Congress uses the terms “grant” and “advance” interchangeably in the 23 CARES Act when referring to the emergency EIDL funds.”
Kaya v. United States Small Bus. Admin. (S.D.N.Y. 2025). · cites it 4× “” 15 U.S.C. § 9009 (d)(1). Congress also authorized the SBA to “use information from the Department of the Treasury to confirm that (A) an applicant is eligible to receive [an EIDL] loan, or; (B) the information contained in an 2 Borrowers could use advances for things like…”
Celebration Law P.A. v. Adm'r of the United States Small Bus. Admin. (M.D. Fla. 2020). · cites it 3× “15 U.S.C. § 9009 (e)(1)–(3). Businesses can use EIDL grants to provide paid sick leave to employees unable to work due to COVID-19, maintain payroll to retain employees, and make mortgage or rent payments, among other things.”
Hyndman v. Small Bus. Admin. (S.D.N.Y. 2024). · cites it 3× “” 15 U.S.C. § 9009 (d)(2) (emphasis added).”
Russo v. United States Small Bus. Admin. (N.D. Ill. 2025). · cites it 2× “See generally 15 U.S.C. § 9009 . The CARES Act specifically waived certain of the application requirements for small businesses seeking EIDL grants, streamlined the approval process, and allowed businesses applying for EIDL grants in the covered period (January 31, 2020–December…”
Shumaker v. Guzman (5th Cir. 2023). “See 15 U.S.C. § 9009 (e)(1)–(3). Shumaker argues that such failures violated Section 1110 of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), see Pub.”
Huang v. Small Bus. Admin. (N.D. Cal. 2023). “” 15 U.S.C. § 9009 (a)(2). Plaintiff states that 16 his business is incorporated, and he does not allege that he is a sole proprietor or independent 17 contractor.”
1800 Michigan Avenue v. Small Bus. Admin. of the United States (E.D. Mich. 2022). “The Administrator disburses Restaurant Revitalization Funds under 15 U.S.C. § 9009 (c), ECF 1, PgID 3, which is in Chapter 116(I).”
Reyes v. Small Bus. Admin. (S.D.N.Y. 2024). “” 15 U.S.C. § 9009 (d)(2) (emphasis added).”
Aark Restaurant Grp. LLC v. United States Small Bus. Admin. (E.D. Pa. 2022). “15 U.S.C. § 9009 (d) (The Agency “may . .”
Show all 16 citing cases →
— 15 U.S.C. § 9009(d)(2) — 1 case
Hyndman v. Small Bus. Admin. (S.D.N.Y. 2024). “” 15 U.S.C. § 9009 (d)(2) (emphasis added).”
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