[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 1140 Introduced in Senate (IS)]
<DOC>
117th CONGRESS
1st Session
S. 1140
To amend the Small Business Act to alter the maximum amount of a second
draw loan under the Paycheck Protection Program, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 15, 2021
Mr. King (for himself and Ms. Collins) introduced the following bill;
which was read twice and referred to the Committee on Small Business
and Entrepreneurship
_______________________________________________________________________
A BILL
To amend the Small Business Act to alter the maximum amount of a second
draw loan under the Paycheck Protection Program, and for other
purposes.
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 ``Seasonal Business PPP Parity Act''.
SEC. 2. MAXIMUM AMOUNT OF SECOND DRAW LOAN.
(a) In General.--Section 7(a)(37) of the Small Business Act (15
U.S.C. 636(a)(37)) is amended by striking subparagraph (C) and
inserting the following:
``(C) Maximum loan amount.--
``(i) In general.--Except as otherwise
provided in this subparagraph, the maximum
amount of a covered loan made to an eligible
entity is the sum of--
``(I) the lesser of--
``(aa) the product obtained
by multiplying--
``(AA) at the
election of the
eligible entity, the
average total monthly
payment for payroll
costs incurred or paid
by the eligible entity
during the 1-year
period before the date
on which the loan is
made or calendar year
2019; by
``(BB) 2.5; or
``(bb) $2,000,000; plus
``(II) with respect to a loan
received under paragraph (36) for which
the eligible entity received
forgiveness under section 1106 of the
CARES Act (as in effect before the date
of enactment of this paragraph), the
amount of an increase with respect to
that loan that the eligible entity
would have been eligible to receive
under section 312 of the Economic Aid
to Hard-Hit Small Businesses,
Nonprofits, and Venues Act (title III
of division N of Public Law 116-260) if
the eligible entity had not received
such forgiveness.
``(ii) Seasonal employers.--The maximum
amount of a covered loan made to an eligible
entity that is a seasonal employer is the sum
of--
``(I) the lesser of--
``(aa) the product obtained
by multiplying--
``(AA) at the
election of the
eligible entity, the
average total monthly
payments for payroll
costs incurred or paid
by the eligible entity
for any 12-week period
between February 15,
2019 and February 15,
2020; by
``(BB) 2.5; or
``(bb) $2,000,000; plus
``(II) with respect to a loan
received under paragraph (36) for which
the seasonal employer received
forgiveness under section 1106 of the
CARES Act (as in effect before the date
of enactment of this paragraph), the
amount of an increase with respect to
that loan that the seasonal employer
would have been eligible to receive
under section 312 of the Economic Aid
to Hard-Hit Small Businesses,
Nonprofits, and Venues Act (title III
of division N of Public Law 116-260) if
the seasonal employer had not received
such forgiveness.
``(iii) New entities.--The maximum amount
of a covered loan made to an eligible entity
that did not exist during the 1-year period
preceding February 15, 2020 is the sum of--
``(I) the lesser of--
``(aa) the product obtained
by multiplying--
``(AA) the quotient
obtained by dividing
the sum of the total
monthly payments by the
eligible entity for
payroll costs paid or
incurred by the
eligible entity as of
the date on which the
eligible entity applies
for the covered loan by
the number of months in
which those payroll
costs were paid or
incurred; by
``(BB) 2.5; or
``(bb) $2,000,000; plus
``(II) with respect to a loan
received under paragraph (36) for which
the eligible entity received
forgiveness under section 1106 of the
CARES Act (as in effect before the date
of enactment of this paragraph), the
amount of an increase with respect to
that loan that the eligible entity
would have been eligible to receive
under section 312 of the Economic Aid
to Hard-Hit Small Businesses,
Nonprofits, and Venues Act (title III
of division N of Public Law 116-260) if
the eligible entity had not received
such forgiveness.
``(iv) NAICS 72 entities.--The maximum
amount of a covered loan made to an eligible
entity that is assigned a North American
Industry Classification System code beginning
with 72 at the time of disbursal is the sum
of--
``(I) the lesser of--
``(aa) the product obtained
by multiplying--
``(AA) at the
election of the
eligible entity, the
average total monthly
payment for payroll
costs incurred or paid
by the eligible entity
during the 1-year
period before the date
on which the loan is
made or calendar year
2019; by
``(BB) 3.5; or
``(bb) $2,000,000; plus
``(II) with respect to a loan
received under paragraph (36) for which
the eligible entity received
forgiveness under section 1106 of the
CARES Act (as in effect before the date
of enactment of this paragraph), the
amount of an increase with respect to
that loan that the eligible entity
would have been eligible to receive
under section 312 of the Economic Aid
to Hard-Hit Small Businesses,
Nonprofits, and Venues Act (title III
of division N of Public Law 116-260) if
the eligible entity had not received
such forgiveness.''.
(b) Effective Date; Applicability.--The amendments made by
subsection (a) shall be effective as if included in the Economic Aid to
Hard-Hit Small Businesses, Nonprofits, and Venues Act (title III of
division N of Public Law 116-260) and shall apply to any loan made
pursuant to section 7(a)(37) of the Small Business Act (15 U.S.C.
636(a)(37)) before, on, or after the date of enactment of this Act.
<all>