[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 1232 Introduced in Senate (IS)]
<DOC>
117th CONGRESS
1st Session
S. 1232
To modify the maximum paycheck protection program loan amount for
farmers and ranchers, sole proprietors, independent contractors, and
self-employed individuals.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 20, 2021
Ms. Baldwin introduced the following bill; which was read twice and
referred to the Committee on Small Business and Entrepreneurship
_______________________________________________________________________
A BILL
To modify the maximum paycheck protection program loan amount for
farmers and ranchers, sole proprietors, independent contractors, and
self-employed individuals.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. CALCULATION OF MAXIMUM PPP LOAN AMOUNT.
(a) In General.--Section 7(a)(36)(V) of the Small Business Act (15
U.S.C. 636(a)(36)(V)) is amended--
(1) by striking clause (i) and inserting the following:
``(i) Definition.--In this subparagraph,
the term `covered recipient' means an eligible
recipient that--
``(I)(aa) operates as a sole
proprietorship, as an independent
contractor, or as a partnership with
gross farming income from self-
employment; or
``(bb) is an eligible self-employed
individual;
``(II) reports farm income or
expenses on a Schedule F (or any
equivalent successor schedule); and
``(III) was in business as of
February 15, 2020.''; and
(2) by striking clause (iv) and inserting the following:
``(iv) Partnerships with no employees.--
With respect to a partnership without
employees, the maximum covered loan amount
shall be equal to the sum of--
``(I) the product obtained by
multiplying--
``(aa) the gross income,
limited to the amount
attributable to general
partners as determined by the
sum of their distributive
shares of gross farming income
from self-employment, that is
not more than $100,000 per
partner, and no more than
$500,000 in total, divided by
12; and
``(bb) 2.5; and
``(II) the outstanding amount of a
loan under subsection (b)(2) that was
made during the period beginning on
January 31, 2020 and ending on April 3,
2020 that the borrower intends to
refinance under the covered loan, not
including any amount of any advance
under the loan that is not required to
be repaid.
``(v) Recalculation.--
``(I) In general.--A lender that
made a covered loan before the date of
enactment of the PPP Flexibility for
Farmers, Ranchers, and the Self-
Employed Act may, at the request of the
covered recipient--
``(aa) recalculate the
maximum loan amount applicable
to that covered loan based on
the formula described in clause
(ii), (iii), or (iv), as
applicable, if doing so would
result in a larger covered loan
amount; and
``(bb) provide the covered
recipient with additional
covered loan amounts based on
that recalculation.
``(II) Loan limitation.--For
purposes of receiving a recalculated
loan amount related to a covered loan
under subclause (I), paragraph (37)(F)
shall not apply.
``(III) Effect of forgiveness.--
Subject to rules issued by the
Administrator, a covered recipient
shall be eligible to submit a request
for a recalculated loan amount related
to a covered loan under subclause (I)
without regard to whether the covered
recipient has sought or received
forgiveness with respect to the
applicable covered loan under section
7A.
``(IV) Forgiveness of recalculated
loan amount.--For purposes of this
subparagraph, as soon as is practicable
upon expenditure of additional covered
loan amounts provided under subclause
(I)--
``(aa) an eligible
recipient shall attest to
compliance with applicable
requirements under this
paragraph; and
``(bb) the additional
covered loan amounts shall be
forgiven under section 7A.
``(V) Reimbursement for loan
processing.--The Administrator shall
reimburse a lender for processing
recalculation requests under this
clause in an amount determined by the
Administrator.''.
(b) Effective Date; Applicability.--The amendments made by
subsection (a) shall be effective as if included in the CARES Act
(Public Law 116-136) and shall apply to any loan made pursuant to
section 7(a)(36) of the Small Business Act (15 U.S.C. 636(a)(36))
before, on, or after the date of enactment of this Act.
<all>