[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 1249 Introduced in Senate (IS)]
<DOC>
117th CONGRESS
1st Session
S. 1249
To amend the Small Business Act to modify the maximum paycheck
protection program loan amount for farmers and ranchers, sole
proprietors, independent contractors, and self-employed individuals,
and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 20, 2021
Mr. Cardin (for himself, Mr. Lankford, Ms. Baldwin, Ms. Collins, Mr.
King, Mr. Portman, and Mr. Marshall) 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 modify the maximum paycheck
protection program loan amount for farmers and ranchers, sole
proprietors, independent contractors, and self-employed individuals,
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 ``PPP Flexibility for Farmers,
Ranchers, and the Self-Employed Act''.
SEC. 2. 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.
SEC. 3. REVISIONS TO LOAN AMOUNT CALCULATION AND ELIGIBILITY.
(a) Definitions.--In this section--
(1) the term ``Administrator'' means the Administrator of
the Small Business Administration;
(2) the term ``covered loan'' means a loan made under
paragraph (36) or (37) of section 7(a) of the Small Business
Act (15 U.S.C. 636(a));
(3) the term ``eligible applicant'' means a taxpayer that
files Internal Revenue Service Form 1040, Schedule C; and
(4) the term ``interim final rule'' means the interim final
rule of the Small Business Administration entitled ``Business
Loan Program Temporary Changes; Paycheck Protection Program -
Revisions to Loan Amount Calculation and Eligibility'', Docket
Number SBA-2021-0010.
(b) Calculation of Maximum Loan Amount for Certain Applicants.--
(1) In general.--An eligible applicant applying for a
covered loan may calculate the maximum amount of the covered
loan using the gross income of the eligible applicant, as
reported on the applicable Internal Revenue Service Form 1040,
Schedule C filed by the eligible applicant, that is not more
than $100,000.
(2) Retroactive effect.--Notwithstanding any provision of
the interim final rule, paragraph (1) shall apply with respect
to any covered loan made to an eligible applicant that is
approved on or after the date of enactment of the Economic Aid
to Hard-Hit Small Businesses, Nonprofits, and Venues Act (title
III of division N of Public Law 116-260).
(c) Recalculation.--
(1) In general.--The Administrator shall create a process
to allow eligible applicants to request a recalculation of the
amount of a covered loan and receive additional amounts equal
to the difference between the amount of the covered loan
originally received by the eligible applicant and the amount of
the covered loan based on the application of this section.
(2) Loan limitation.--For purposes of receiving additional
amounts under paragraph (1), section 7(a)(37)(F) of the Small
Business Act (15 U.S.C. 636(a)(37)(F)) shall not apply.
(3) Effect of forgiveness.--Subject to rules issued by the
Administrator, an eligible applicant shall be eligible to
submit a request for a recalculated loan amount under paragraph
(1) without regard to whether the eligible applicant has sought
or received forgiveness with respect to the applicable covered
loan under section 7A of the Small Business Act (15 U.S.C.
636m).
(4) Forgiveness of additional amounts.--For purposes of
this subsection, as soon as is practicable upon expenditure of
additional covered loan amounts provided under paragraph (1)--
(A) an eligible applicant shall attest to
compliance with applicable requirements under section
7(a)(37) of the Small Business Act (15 U.S.C.
636(a)(37)); and
(B) the additional loan amounts shall be forgiven
under section 7A of the Small Business Act (15 U.S.C.
636m).
(5) Reimbursement for loan processing.--The Administrator
shall reimburse a lender for processing recalculation requests
under this subsection in an amount determined by the
Administrator.
SEC. 4. 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.
SEC. 5. ELIGIBILITY FOR PAYCHECK PROTECTION PROGRAM SECOND DRAW LOANS.
Section 7(a)(37)(A)(iv)(I)(bb) of the Small Business Act (15 U.S.C.
636(a)(37)(A)(iv)(I)(bb)) is amended to read as follows:
``(bb)(AA) except as
provided in subitems (BB), (CC)
and (DD), had gross receipts
during any contiguous 90-day
period in 2020 that demonstrate
not less than a 25 percent
reduction from the gross
receipts of the entity during
the same period in 2019;
``(BB) if the entity was
not in business during the
entirety of 2019, but was in
business for not fewer than 90
contiguous days during 2019,
had gross receipts during any
contiguous 90-day period in
2020 that demonstrate not less
than a 25 percent reduction
from the gross receipts of the
entity during the same
contiguous 90-day period during
2019;
``(CC) if the entity was
not in business for the
entirety of 2019 and was not in
business for 90 contiguous days
during 2019, had gross receipts
during any contiguous 90-day
period in 2020 that demonstrate
not less than a 25 percent
reduction from the gross
receipts of the entity during a
contiguous 90-day period
beginning on the date the
business began operations in
2019; and
``(DD) if the entity was
not in business during 2019,
but was in business for not
fewer than 90 contiguous days
during 2020, had gross receipts
during any contiguous 90-day
period in 2020 that demonstrate
not less than a 25 percent
reduction from the gross
receipts of the entity during
an earlier contiguous 90-day
period in 2020;''.
SEC. 6. ELIGIBILITY FOR RELIEF UNDER THE PAYCHECK PROTECTION PROGRAM
AND THE RESTAURANT REVITALIZATION FUND.
Section 5003 of the American Rescue Plan Act (Public Law 117-2) is
amended--
(1) in subsection (a)(7)--
(A) in subparagraph (A), by inserting ``and
subsection (c)(7)'' after ``(D)''; and
(B) by striking the flush text following
subparagraph (D)(ii); and
(2) in subsection (c), by adding at the end the following:
``(7) Reduction in pandemic-related revenue loss.--
``(A) Definition.--In this paragraph, the term
`covered loan' means a loan made under paragraph (36)
or (37) of section 7(a) of the Small Business Act (15
U.S.C. 636(a)).
``(B) Reduction.--For purposes of this section--
``(i) the pandemic-related revenue loss for
an eligible entity shall be reduced by any
amounts received from a covered loan in 2020 or
2021; and
``(ii) if an eligible entity receives a
covered loan after submitting an application
for assistance under this section, the
otherwise applicable amount of an award under
this section shall be reduced by the total
amount of the covered loan received by the
eligible entity.
``(C) Ineligibility for covered loan.--If an
eligible entity has applied for a covered loan and is
approved for an award under this section before the
Administrator issues a loan number for the covered
loan--
``(i) the eligible entity is ineligible for
the covered loan; and
``(ii) acceptance by the eligible entity of
any loan proceeds of the covered loan is an
unauthorized use of the covered loan.''.
SEC. 7. EXTENSION.
(a) Salaries and Expenses.--The matter under the heading ``salaries
and expenses'' under the heading ``Small Business Administration''
under the heading ``INDEPENDENT AGENCIES'' in title II of division B of
the Paycheck Protection Program and Health Care Enhancement Act (Public
Law 116-139) is amended by striking ``September 30, 2021'' and
inserting ``September 30, 2023''.
(b) Modification of Set-Asides.--Section 323(d)(2)(B)(iii) of the
Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act
(title III of division N of Public Law 116-260) is amended by striking
``March 31, 2021'' and inserting ``June 30, 2021''.
<all>