; (2) the requirement that an applicant needs to be in business for the 1-year period before the disaster; and (3) the requirement in the flush matter following subparagraph (E) of section 7(b)(2) of the Small Business Act ( 15 U.S.C. 636(b)(2) ), as so redesignated by subsection (f) of this section, that an applicant be unable to obtain credit elsewhere. (d) Approval and ability To repay for small dollar loans With respect to a loan made under section 7(b)(2) of the Small Business Act ( 15 U.S.C. 636(b)(2) ) in response to COVID–19 during the covered period, a lender may— (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. (e) Emergency grant (1) In general During the covered period, an eligible entity that applies for a loan under section 7(b)(2) of the Small Business Act ( 15 U.S.C. 636(b)(2) ) in response to COVID–19 may request that the Administrator provide an advance in the amount requested by such applicant (not to exceed $10,000) to such applicant within 3 days after the Administrator receives an application from such applicant. (2) Verification Before disbursing amounts under this subsection, the Administrator shall verify that the applicant is an eligible entity. (3) Use of funds An advance provided under this subsection may be used to address any allowable purpose for a loan made under section 7(b)(2) of the Small Business Act ( 15 U.S.C. 636(b)(2) ), 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