; or (ii) use alternative appropriate methods to determine the applicant’s ability to repay. (6) Use of funds A recipient of a loan made under paragraph (1) shall use the loan proceeds to repair, rehabilitate, or replace property, real or personal, damaged or destroyed during the covered period as a result of the civil unrest described in subsection (a)(3)(B)(i), provided that such damage or destruction is not compensated for by insurance, a grant from a State or local government, or otherwise. (7) Loan forgiveness (A) In general An eligible entity that received a loan made under paragraph (1), or an eligible entity that received a loan under section 7(b)(1) of the Small Business Act ( 15 U.S.C. 636(b)(1) ) before the date of enactment of this Act related to the civil unrest described in subsection (a)(3)(B)(i), shall be eligible for forgiveness of indebtedness equal to 75 percent of the loan amount if the eligible entity— (i) submits to the Administrator documentation of sales for 2019 and 2020 and tax returns for 2019 and 2020; and (ii) the eligible entity is in operation as of December 31, 2021. (B) Amounts not forgiven Any remaining amount of a loan described in subparagraph (A) that is not forgiven under this paragraph as of December 31, 2021, shall— (i) be considered a loan made under section 7(b)(1) of the Small Business Act ( 15 U.S.C. 636(b)(1) ); (ii) bear an interest rate of 3.75 percent