[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7241 Introduced in House (IH)]
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116th CONGRESS
2d Session
H. R. 7241
To provide for supplemental loans under the Paycheck Protection
Program.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 18, 2020
Ms. Craig (for herself and Mr. Delgado) introduced the following bill;
which was referred to the Committee on Small Business
_______________________________________________________________________
A BILL
To provide for supplemental loans under the Paycheck Protection
Program.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Prioritized Paycheck Protection
Program Act'' or the ``P4 Act''.
SEC. 2. PAYCHECK PROTECTION PROGRAM IMPROVEMENTS.
(a) Extension for Certain Business Concerns.--Section 7(a)(36)(B)
of the Small Business Act (15 U.S.C. 636(a)(36)(B)) is amended--
(1) by striking ``Except'' and inserting the following:
``(i) In general.--Except''; and
(2) by adding at the end the following:
``(ii) Supplemental ppp loans.--
``(I) Definitions.--In this
clause--
``(aa) the terms
`exchange', `issuer', and
`security' have the meanings
given such terms in section
3(a) of the Securities Exchange
Act of 1934 (15 U.S.C. 78c(a));
``(bb) the term `gross
receipts' means gross receipts
within the meaning of section
448(c) of the Internal Revenue
Code of 1986;
``(cc) the term `national
securities exchange' means an
exchange registered as a
national securities exchange
under section 6 of the
Securities Exchange Act of 1934
(15 U.S.C. 78f);
``(dd) the term `publicly
traded entity' means an issuer,
the securities of which are
listed on a national securities
exchange;
``(ee) the term `smaller
concern' means an eligible
recipient that--
``(AA) has not more
than 100 employees;
``(BB) operates
under a sole
proprietorship or as an
independent contractor;
or
``(CC) is an
eligible self-employed
individual; and
``(ff) the term
`significant loss in revenue'
means that, due to the impact
of COVID-19--
``(AA) the gross
receipts of the
eligible recipient
during the first or
second calendar quarter
of 2020 are less than
50 percent of the gross
receipts of the
eligible recipient
during the same
calendar quarter in
2019;
``(BB) if the
eligible recipient was
not in business on
April 1, 2019, the
gross receipts of the
eligible recipient
during any 2-month
period during the first
2 calendar quarters of
2020 are less than 50
percent of the amount
of the gross receipts
of the eligible
recipient during any
prior 2-month period
during the first 2
calendar quarters of
2020; or
``(CC) if the
eligible recipient is a
seasonal employer, as
determined by the
Administrator, the
gross receipts of the
eligible recipient
during any 2-month
period during the first
2 calendar quarters of
2020 are less than 50
percent of the amount
of the gross receipts
of the eligible
recipient during the
same 2-month period in
2019.
``(II) Authority.--Except as
otherwise provided in this clause, for
an eligible recipient that has received
a covered loan under clause (i), the
Administrator may guarantee a single
supplemental covered loan to the
eligible recipient under the same
terms, conditions, and processes as a
covered loan made under clause (i).
``(III) Application deadline.--An
eligible recipient shall submit an
application for a supplemental covered
loan under this clause not later than
October 1, 2020, or such later date as
the Administrator determines
appropriate.
``(IV) Choice of lender.--An
eligible recipient may apply for a
supplemental covered loan under this
clause with the lender that made the
covered loan under clause (i) to the
eligible recipient or another lender.
``(V) Eligibility.--
``(aa) In general.--A
supplemental covered loan under
this clause--
``(AA) may be made
to an eligible
recipient that is a
smaller concern, has
had a significant loss
in revenue, and has
used, or is expending
funds at a rate that
the eligible recipient
will use on or before
the expected date of
the disbursement of the
supplemental covered
loan under this clause,
the full amount of the
covered loan received
under clause (i); and
``(BB) may not be
made to a publicly
traded entity.
``(bb) Business concerns
with more than 1 physical
location.--
``(AA) In
general.--For purposes
of a supplemental
covered loan under this
clause, subparagraph
(D)(iii) shall be
applied by substituting
`not more than 100
employees per physical
location' for `not more
than 500 employees per
physical location'.
``(BB) Limit for
multiple locations.--
For an eligible
recipient with more
than 1 physical
location, the total
amount of all
supplemental covered
loans under this clause
to the eligible
recipient shall not be
more than $2,000,000.
``(VI) Maximum amount for
supplemental ppp.--The maximum amount
of a supplemental covered loan under
this clause is the lesser of--
``(aa) the product obtained
by multiplying--
``(AA) the average
total monthly payments
for payroll costs by
the eligible recipient
used to determine the
maximum amount of the
covered loan under
clause (i) made to the
eligible recipient
under this paragraph;
by
``(BB) 2.5; or
``(bb) $2,000,000.
``(VII) Exception from certain
certification requirements.--An
eligible recipient applying for a
supplemental covered loan under this
clause shall not be required to make
the certification described in
subclauses (III) or (IV) of
subparagraph (G)(i).
``(VIII) Reimbursement for
processing supplemental ppp.--For a
supplemental covered loan under this
clause of not more than $50,000, the
reimbursement under subparagraph (P)(I)
by the Administrator shall not be less
than $2,500.
``(iii) Priority for smallest recipients.--
``(I) Application processing.--In
processing applications to guarantee
covered loans, the Administrator shall,
taking into account the sense of the
Senate on giving priority to
underserved and rural borrowers under
subparagraph (P)(iv), prioritize the
processing of applications to guarantee
covered loans under clause (i) or (ii)
to eligible recipients that have not
more than 10 employees.
``(II) Funding priority.--The
Administrator shall ensure that--
``(aa) of the unobligated
balances available for covered
loans on the date of enactment
of the Prioritized Paycheck
Protection Program Act, not
less than the lesser of 20
percent of such unobligated
balances or $25,000,000,000 is
used for guaranteeing covered
loans under clause (i) or (ii)
to eligible recipients that
have not more than 10
employees; and
``(bb) to the extent
additional amounts are made
available for covered loans
after the date of enactment of
the Prioritized Paycheck
Protection Program Act, not
less than the lesser of 20
percent of the sum of the
unobligated balances described
in subitem (AA) and such
additional amounts or
$25,000,000,000 is used for
guaranteeing covered loans
under clause (i) or (ii) to
eligible recipients that have
not more than 10 employees.''.
(b) Covered Periods.--
(1) Authority to extend period for making ppp and p4
loans.--Section 7(a)(36)(A)(iii) of the Small Business Act (15
U.S.C. 636(a)(36)(A)(iii)) is amended by inserting ``, or such
later date as the Administrator determines appropriate'' after
``December 31, 2020''.
(2) Period for costs that are eligible for forgiveness and
application submission.--Section 1106 of the CARES Act (Public
Law 116-136) is amended--
(A) in subsection (a), by striking paragraph (3)
and inserting the following:
``(3) the term `covered period' means the period--
``(A) beginning on the date of the origination of a
covered loan; and
``(B) ending on a date selected by the eligible
recipient of the covered loan that occurs during the
period--
``(i) beginning on the date that is 8 weeks
after such date of origination; and
``(ii) ending on December 31, 2020, or such
later date as the Administrator determines
appropriate.'';
(B) in subsection (d), by inserting ``, or such
later date as the Administrator determines
appropriate'' after ``December 31, 2020'' each place it
appears;
(C) in subsection (e), in the matter preceding
paragraph (1), by striking ``An eligible recipient''
and inserting ``After the end of the covered period
with respect to an eligible recipient, the eligible
recipient''; and
(D) by striking subsection (l).
(3) Applicability of amendments.--The amendments made by
paragraph (2) shall apply to a loan made under paragraph (36)
of section 7(a) of the Small Business Act (15 U.S.C. 636(a))
before, on, or after the date of enactment of this Act.
(c) Implementation of Inspector General Suggested Actions for PPP
Oversight.--Not later than 5 days after the date of enactment of this
Act, the Administrator of the Small Business Administration shall--
(1) issue guidance to prioritize underserved businesses, as
described in the sense of the Senate provision under
subparagraph (P)(iv) of section 7(a)(36) of the Small Business
Act (15 U.S.C. 636(a)(36));
(2) issue an updated loan origin application for initial
covered loans under such section and issue an origin
application for supplemental covered loans under such section
that collects demographic data to provide transparency for
lending to underserved and rural markets, as required under
subparagraph (P) of such section;
(3) implement the loan registration required under such
section; and
(4) consistent with information that the Administrator
makes available on loans made by the Administration in
compliance with section 552 of title 5, United States Code
(commonly known as the ``Freedom of Information Act''), begin
publishing on the website of the Administration information
about the paycheck protection program under section 7(a)(36) of
the Small Business Act (15 U.S.C. 636(a)(36)), including
initial covered loans and supplemental covered loans,
including--
(A) the name of each business or nonprofit
organization borrower;
(B) the address of the principal place of business
of each borrower;
(C) the name and address of the principal place of
business of each lender;
(D) the amount of each loan;
(E) the North American Industry Classification
System code of each borrower;
(F) whether each borrower is a franchisee; and
(G) the type of business of each borrower.
(d) Forgiveness Compensation Fees.--Section 7(a)(36)(P) of the
Small Business Act (15 U.S.C. 636(a)(36)(P)) is amended by adding at
the end the following:
``(v) Forgiveness application assistance.--
With respect to initial covered loans and
supplemental covered loans, the Administrator
may reimburse an agent that assists an eligible
recipient in preparing an application for and
documentation required to obtain forgiveness
under section 1106 of the Cares Act (Public Law
116-136), in an amount not to exceed $500.''.
(e) Amount Authorized for Commitments.--Section 1102(b) of the
CARES Act (Public Law 116-136) is amended to read as follows:
``(b) Commitments for PPP and Other 7(a) Loans.--
``(1) PPP loans.--During the period beginning on the date
of enactment of the Prioritized Paycheck Protection Program Act
and ending on December 31, 2020, or such later date as the
Administrator determines appropriate, subject to the
availability of appropriations, the Administrator may make
commitments under paragraph (36) of section 7(a) of the Small
Business Act (15 U.S.C. 636(a)) in such amounts as the
Administrator determines necessary.
``(2) Other 7(a) loans.--During fiscal year 2020, the
amount authorized for commitments for section 7(a) of the Small
Business Act (15 U.S.C. 636(a)) under the heading `business
loans program account' under the heading `Small Business
Administration' under title V of the Consolidated
Appropriations Act, 2020 (Public Law 116-93; 133 Stat. 2475)
shall apply with respect to any commitments under such section
7(a) other than under paragraph (36) of such section 7(a).''.
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