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1 1 (April 9, 2020)

handle is hein.crs/govcqzt0001 and id is 1 raw text is: The CARES Act: Implications for Tribes Congress's third legislative response to the COVID-19 outbreak-the Coronavirus Aid, Relief, and Economic Security (CARES) Act-became P.L. 116-136 on March 27, 2020. Much of the CARES Act's aid and relief is available to, or will otherwise affect, federally recognized Indian tribes or tribal business entities. This In Focus discusses the provisions that most directly implicate tribes and tribal interests, though the agencies responsible for enacting these provisions will likely issue additional guidance and interpretation in the days ahead. Direct Assistance to Small Businesses. S ection 1102 of the CARES Act sets up a Paycheck Protection Program within the Small Business Administration's (SBA's) existing 7(a) loan program. This authorizes $349 billion in loans to all eligible small businesses, 501(c)(3) nonprofit organizations, veterans organizations, sole proprietors, and independent contractors, including Tribal business concerns. Generally, tribal business concerns with 500 or fewer employees may be eligible for these loans, which do not require collateral, are available until June 30, 2020 (or until funding runs out), and can be for up to 2.5 times an applicant's average monthly payroll costs from the previous year, capped at $10 million. In addition to the usual uses for small business loans, recipients can use these funds to cover payroll costs (including benefits) and most mortgage interest, rent, and utility costs. Section 1106 authorizes forgiveness for loan amounts used for such costs during the eight weeks after loan origination, meaning those amounts would not need to be repaid. Section 1110 includes tribal business concerns as eligible entities for Economic Injury Disaster Loans to be used for similar purposes, including sick leave for COVID-19-affected employees. The SBA may provide an advance payment of up to $10,000 that does not have to be repaid. Although the CARES Act itself does not exclude particular types of businesses from eligibility for these loans, it does not provide explicit relief from existing SBA regulations that prohibit funding certain categories of businesses. For example, 13 C.F.R. § 120.110 prohibits SBA loans to businesses that receive more than one-third of their gross income from legal gaming or that engage in any illegal activity. Thus, without additional legislation or rulemaking, tribally owned casinos and marijuana operations may be unable to access SBA-administered loans and grants. Direct Assistance for Tribal Governments. Section 5001 of the CARES Act creates a Coronavirus Relief Fund (CRF) of $150 billion for FY2020 and sets aside $8 billion of that amount for tribal governments. The entire $8 billion must be distributed, and distribution is based on the tribes' FY2019 expenditures. The Bureau of Indian Affairs (BIA) has solicited tribal leaders' input on distribution methodology and guidance on what constitutes necessary expenditures. Tribes must certify that they will only use CR funds to pay extrabudgetary necessary expenditures arising due to the COVID- 19 outbreak between March 1 and December 30, 2020. Additional Assistance for Tribes and Businesses. Section 4003 in Title IV of the CARES Act, the Coronavirus Economic Stabilization Act of 2020 (CESA), authorizes the Secretary of the Treasury to make loans, loan guarantees, and other investments and subsidies to provide liquidity for losses that states, municipalities, and eligible businesses incur as a result of the COVID-19 pandemic. Under Section 4002, eligible U.S. businesses are those that have not otherwise received adequate economic relief in the form of loans or loan guarantees from the CARES Act; the term State includes any Indian Tribe. Thus, both tribal governments and tribal business entities ineligible for other relief may be eligible for assistance under this program. The Secretary will determine the forms, terms, and conditions (including a minimum interest rate) of the loans and loan guarantees. CESA's appropriations total $500 billion. BIA Funding. The CARES Act allocates $453 million in addition to existing funding for BIA's Operation of Indian Programs, of which at least $400 million shall be made available to meet the direct needs of tribes. These funds are available until September 30, 2021, for COVID-19- related responses, including (1) public safety and justice programs; (2) deep cleaning of facilities; (3) purchase of personal protective equipment; (4) improved teleworking capability; (5) welfare assistance and social services programs (including assistance to individuals); and (6) assistance to tribal governments. Indian Health Services (IHS) Funding. The CARES Act designates $1.032 billion in additional IHS funding for the COVID-19 response, available until September 30, 2021. Of that amount, up to $65 million is available for electronic health record stabilization and support, including tribal consultation. Nearly half of the allocation-at least $450 million-must be distributed (1) through IHS's directly operated programs, (2) to tribes and tribal organizations under the Indian Self-Determination and Education Assistance Act (ISDEAA), and (3) through contracts or grants with urban Indian organizations via the Indian Health Care Improvement Act. Funds transferred under the ISDEAA throughout the CARES Act are explicitly one- time transfers with no appropriated contract support costs. April 9, 2020 .O 'T gn'a', ggmm , q rq\\ 'S a X 11LULANJILiN,

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