ABSTRACT

Applicability of Federal Civil Rights Laws to Recipients of CARES Act Loans [May 1, 2020]   [open pdf - 643KB]

From the Document: "The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) authorizes the Small Business Administration (SBA) to provide economic assistance temporarily to eligible organizations. Section 1102 of the CARES Act establishes the Paycheck Protection Program (PPP), which enlarges the SBA's authority to guarantee loans under Section 7(a) of the Small Business Act. Section 1110 of the CARES Act broadens SBA's authority to distribute Economic Injury Disaster Loans (EIDL) under Section 7(b)(2) of the Small Business Act. Applicants for the latter loan can receive an emergency grant advance that the recipient does not have to repay, even if the loan is denied. [...] This extension of federal funds to new recipients raises questions about what obligations may accompany the issuance of such loans. Various federal civil rights laws condition the receipt of federal funds on recipients' adherence to certain antidiscrimination mandates. This Sidebar examines the potential application of these civil rights laws to recipients of EIDL grants and PPP and EIDL loans. It also considers potential limits on the scope of these obligations."

Report Number:
CRS Legal Sidebar, LSB10459
Author:
Publisher:
Date:
2020-05-01
Series:
Copyright:
Public Domain
Retrieved From:
Congressional Research Service: https://crsreports.congress.gov/
Format:
pdf
Media Type:
application/pdf
URL:
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