H. R. 8087, 116th Congress — To Establish a Program for Second Draw Loans
Summary
H.R. 8087 was introduced in the House of Representatives on August 22, 2020, by Chabot and referred to the Committee on Small Business. It is a bill to amend the Small Business Act and the CARES Act to establish a program for second draw loans and make other modifications to the paycheck protection program. Section 1, headed Additional Eligible Expenses, amends section 7(a)(36)(F)(i) of the Small Business Act on the allowable use of a PPP loan. The sections that follow include Lender Safe Harbor, Selection of Covered Period for Forgiveness, and Simplified Application.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
- Issuer
- Congressional materials
- Document type
- Bills Bills 116Hr8087Ih Bills 116Hr8087Ih
- Case
- Bills Bills 116Hr8087Ih Bills 116Hr8087Ih
Cite this document
“H. R. 8087, 116th Congress — To Establish a Program for Second Draw Loans.”
Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/bills-bills-116hr8087ih-bills-116hr8087ih/
, SHA-256 c407dba9acfebb9dcc724953fff55cf9a34383adffaf9c90e7d7bd00f189369c.Full text
I
116TH CONGRESS
2D SESSION
H. R. 8087
To amend the Small Business Act and the CARES Act to establish a program
for second draw loans and make other modifications to the paycheck
protection program, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
AUGUST 22, 2020
Mr. CHABOT introduced the following bill; which was referred to the Com-
mittee on Small Business, and in addition to the Committees on the Judi-
ciary, the Budget, and Appropriations, for a period to be subsequently
determined by the Speaker, in each case for consideration of such provi-
sions as fall within the jurisdiction of the committee concerned
A BILL
To amend the Small Business Act and the CARES Act
to establish a program for second draw loans and make
other modifications to the paycheck protection program,
and for other purposes.
1 Be it enacted by the Senate and House of Representa-
2 tives of the United States of America in Congress assembled,
3 SECTION 1. ADDITIONAL ELIGIBLE EXPENSES.
4 (a) ALLOWABLE USE OF PPP LOAN.—Section
5 7(a)(36)(F)(i) of the Small Business Act (15 U.S.C.
pbinns on DSKJLVW7X2PROD with BILLS
6 636(a)(36)(F)(i)) is amended—
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
2
1 (1) in subclause (VI), by striking ‘‘and’’ at the
2 end;
3 (2) in subclause (VII), by striking the period at
4 the end and inserting a semicolon; and
5 (3) by adding at the end the following:
6 ‘‘(VIII) covered operations ex-
7 penditures, as defined in section
8 1106(a) of the CARES Act (15
9 U.S.C. 9005(a));
10 ‘‘(IX) covered property damage
11 costs, as defined in such section
12 1106(a);
13 ‘‘(X) covered supplier costs, as
14 defined in such section 1106(a); and
15 ‘‘(XI) covered worker protection
16 expenditures, as defined in such sec-
17 tion 1106(a).’’.
18 (b) LOAN FORGIVENESS.—Section 1106 of the
19 CARES Act (15 U.S.C. 9005) is amended—
20 (1) in subsection (a)—
21 (A) by redesignating paragraphs (6), (7),
22 and (8) as paragraphs (10), (11), and (12), re-
23 spectively;
24 (B) by redesignating paragraph (5) as
pbinns on DSKJLVW7X2PROD with BILLS
25 paragraph (8);
•HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
3
1 (C) by redesignating paragraph (4) as
2 paragraph (6);
3 (D) by redesignating paragraph (3) as
4 paragraph (4);
5 (E) by inserting after paragraph (2) the
6 following:
7 ‘‘(3) the term ‘covered operations expenditure’
8 means a payment for any business software or cloud
9 computing service that facilitates business oper-
10 ations, product or service delivery, the processing,
11 payment, or tracking of payroll expenses, human re-
12 sources, sales and billing functions, or accounting or
13 tracking of supplies, inventory, records and ex-
14 penses;’’;
15 (F) by inserting after paragraph (4), as so
16 redesignated, the following:
17 ‘‘(5) the term ‘covered property damage cost’
18 means a cost related to property damage and van-
19 dalism or looting due to public disturbances that oc-
20 curred during 2020 that was not covered by insur-
21 ance or other compensation;’’;
22 (G) by inserting after paragraph (6), as so
23 redesignated, the following:
24 ‘‘(7) the term ‘covered supplier cost’ means an
pbinns on DSKJLVW7X2PROD with BILLS
25 expenditure made by an entity to a supplier of goods
•HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
4
1 pursuant to a contract in effect before February 15,
2 2020, for the supply of goods that are essential to
3 the operations of the entity at the time at which the
4 expenditure is made;’’;
5 (H) by inserting after paragraph (8), as so
6 redesignated, the following:
7 ‘‘(9) the term ‘covered worker protection ex-
8 penditure’—
9 ‘‘(A) means an operating or a capital ex-
10 penditure that is required to facilitate the adap-
11 tation of the business activities of an entity to
12 comply with requirements established or guid-
13 ance issued by the Department of Health and
14 Human Services, the Centers for Disease Con-
15 trol, or the Occupational Safety and Health Ad-
16 ministration during the period beginning on
17 March 1, 2020, and ending December 31, 2020,
18 related to the maintenance of standards for
19 sanitation, social distancing, or any other work-
20 er or customer safety requirement related to
21 COVID–19;
22 ‘‘(B) may include—
23 ‘‘(i) the purchase, maintenance, or
24 renovation of assets that create or ex-
pbinns on DSKJLVW7X2PROD with BILLS
25 pand—
•HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
5
1 ‘‘(I) a drive-through window fa-
2 cility;
3 ‘‘(II) an indoor, outdoor, or com-
4 bined air or air pressure ventilation or
5 filtration system;
6 ‘‘(III) a physical barrier such as
7 a sneeze guard;
8 ‘‘(IV) an indoor, outdoor, or com-
9 bined commercial real property;
10 ‘‘(V) an onsite or offsite health
11 screening capability; or
12 ‘‘(VI) other assets relating to the
13 compliance with the requirements or
14 guidance described in subparagraph
15 (A), as determined by the Adminis-
16 trator in consultation with the Sec-
17 retary of Health and Human Services
18 and the Secretary of Labor; and
19 ‘‘(ii) the purchase of—
20 ‘‘(I) covered materials described
21 in section 328.103(a) of title 44, Code
22 of Federal Regulations, or any suc-
23 cessor regulation;
24 ‘‘(II) particulate filtering face-
pbinns on DSKJLVW7X2PROD with BILLS
25 piece respirators approved by the Na-
•HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
6
1 tional Institute for Occupational Safe-
2 ty and Health, including those ap-
3 proved only for emergency use author-
4 ization; or
5 ‘‘(III) other kinds of personal
6 protective equipment, as determined
7 by the Administrator in consultation
8 with the Secretary of Health and
9 Human Services and the Secretary of
10 Labor; and
11 ‘‘(C) does not include residential real prop-
12 erty or intangible property;’’; and
13 (I) in paragraph (11), as so redesig-
14 nated—
15 (i) in subparagraph (C), by striking
16 ‘‘and’’ at the end;
17 (ii) in subparagraph (D), by striking
18 ‘‘and’’ at the end; and
19 (iii) by adding at the end the fol-
20 lowing:
21 ‘‘(E) covered operations expenditures;
22 ‘‘(F) covered property damage costs;
23 ‘‘(G) covered supplier costs; and
24 ‘‘(H) covered worker protection expendi-
pbinns on DSKJLVW7X2PROD with BILLS
25 tures; and’’;
•HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
7
1 (2) in subsection (b), by adding at the end the
2 following:
3 ‘‘(5) Any covered operations expenditure.
4 ‘‘(6) Any covered property damage cost.
5 ‘‘(7) Any covered supplier cost.
6 ‘‘(8) Any covered worker protection expendi-
7 ture.’’;
8 (3) in subsection (d)(8), by inserting ‘‘any pay-
9 ment on any covered operations expenditure, any
10 payment on any covered property damage cost, any
11 payment on any covered supplier cost, any payment
12 on any covered worker protection expenditure,’’ after
13 ‘‘rent obligation,’’; and
14 (4) in subsection (e)—
15 (A) in paragraph (2), by inserting ‘‘pay-
16 ments on covered operations expenditures, pay-
17 ments on covered property damage costs, pay-
18 ments on covered supplier costs, payments on
19 covered worker protection expenditures,’’ after
20 ‘‘lease obligations,’’; and
21 (B) in paragraph (3)(B), by inserting
22 ‘‘make payments on covered operations expendi-
23 tures, make payments on covered property dam-
24 age costs, make payments on covered supplier
pbinns on DSKJLVW7X2PROD with BILLS •HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
8
1 costs, make payments on covered worker protec-
2 tion expenditures,’’ after ‘‘rent obligation,’’.
3 SEC. 2. LENDER SAFE HARBOR.
4 Subsection (h) of section 1106 of the CARES Act
5 (15 U.S.C. 9005) is amended to read as follows:
6 ‘‘(h) HOLD HARMLESS.—
7 ‘‘(1) IN GENERAL.—A lender may rely on any
8 certification or documentation submitted by an ap-
9 plicant for a covered loan or an eligible recipient of
10 a covered loan that—
11 ‘‘(A) is submitted pursuant to any statu-
12 tory requirement relating to covered loans or
13 any rule or guidance issued to carry out any ac-
14 tion relating to covered loans; and
15 ‘‘(B) attests that the applicant or eligible
16 recipient, as applicable, has accurately verified
17 any certification or documentation provided to
18 the lender.
19 ‘‘(2) NO ENFORCEMENT ACTION.—With respect
20 to a lender that relies on a certification or docu-
21 mentation described in paragraph (1)—
22 ‘‘(A) an enforcement action may not be
23 taken against the lender acting in good faith re-
24 lating to origination or forgiveness of a covered
pbinns on DSKJLVW7X2PROD with BILLS
25 loan based on such reliance; and
•HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
9
1 ‘‘(B) the lender acting in good faith shall
2 not be subject to any penalties relating to origi-
3 nation or forgiveness of a covered loan based on
4 such reliance.’’.
5 SEC. 3. SELECTION OF COVERED PERIOD FOR FORGIVE-
6 NESS.
7 Section 1106 of the CARES Act (15 U.S.C. 9005)
8 is amended—
9 (1) by amending subsection (a)(4) (as redesig-
10 nated by section 1) to read as follows:
11 ‘‘(4) the term ‘covered period’ means the pe-
12 riod—
13 ‘‘(A) beginning on the date of the origina-
14 tion of a covered loan; and
15 ‘‘(B) ending on a date selected by the eligi-
16 ble recipient of the covered loan that occurs
17 during the period—
18 ‘‘(i) beginning on the date that is 8
19 weeks after such date of origination; and
20 ‘‘(ii) ending on December 31, 2020;’’;
21 and
22 (2) by striking subsection (l).
23 SEC. 4. SIMPLIFIED APPLICATION.
24 Section 1106 of the CARES Act (15 U.S.C. 9005),
pbinns on DSKJLVW7X2PROD with BILLS
25 as amended by section 3 of this Act, is amended—
•HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
10
1 (1) in subsection (e), in the matter preceding
2 paragraph (1), by striking ‘‘An eligible’’ and insert-
3 ing ‘‘Except as provided in subsection (l), an eligi-
4 ble’’;
5 (2) in subsection (f), by inserting ‘‘or the infor-
6 mation required under subsection (l), as applicable’’
7 after ‘‘subsection (e)’’; and
8 (3) by adding at the end the following:
9 ‘‘(l) SIMPLIFIED APPLICATION.—
10 ‘‘(1) COVERED LOANS UNDER $150,000.—
11 ‘‘(A) IN GENERAL.—Notwithstanding sub-
12 section (e), with respect to a covered loan made
13 to an eligible recipient that is not more than
14 $150,000, the covered loan amount shall be for-
15 given under this section if the eligible recipi-
16 ent—
17 ‘‘(i) signs and submits to the lender
18 an attestation that the eligible recipient
19 made a good faith effort to comply with
20 the requirements under section 7(a)(36) of
21 the Small Business Act (15 U.S.C.
22 636(a)(36)); and
23 ‘‘(ii) for the 3-year period following
24 submission of the attestation under clause
pbinns on DSKJLVW7X2PROD with BILLS
25 (i), retains records relevant to the attesta-
•HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
11
1 tion that prove compliance with those re-
2 quirements.
3 ‘‘(B) DEMOGRAPHIC INFORMATION.—An
4 eligible recipient of a covered loan described in
5 subparagraph (A) may complete and submit
6 any form related to borrower demographic in-
7 formation.
8 ‘‘(C) AUDIT.—The Administrator may—
9 ‘‘(i) review and audit covered loans
10 described in subparagraph (A); and
11 ‘‘(ii) in the case of fraud, ineligibility,
12 or other material noncompliance with ap-
13 plicable loan or loan forgiveness require-
14 ments, modify—
15 ‘‘(I) the amount of a covered loan
16 described in subparagraph (A); or
17 ‘‘(II) the loan forgiveness amount
18 with respect to a covered loan de-
19 scribed in subparagraph (A).
20 ‘‘(2) COVERED LOANS BETWEEN $150,000 AND
21 $2,000,000.—
22 ‘‘(A) IN GENERAL.—Notwithstanding sub-
23 section (e), with respect to a covered loan made
24 to an eligible recipient that is more than
pbinns on DSKJLVW7X2PROD with BILLS
25 $150,000 and not more than $2,000,000—
•HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
12
1 ‘‘(i) the eligible recipient seeking loan
2 forgiveness under this section—
3 ‘‘(I) is not required to submit the
4 supporting documentation described
5 in paragraph (1) or (2) of subsection
6 (e) or the certification described in
7 subsection (e)(3)(A);
8 ‘‘(II) shall retain all relevant
9 schedules, worksheets, and supporting
10 documentation for the 3-year period
11 following submission of the applica-
12 tion for loan forgiveness; and
13 ‘‘(III) may complete and submit
14 any form related to borrower demo-
15 graphic information;
16 ‘‘(ii) review by the lender of an appli-
17 cation submitted by the eligible recipient
18 for loan forgiveness under this section shall
19 be limited to whether the lender received a
20 complete application, with all fields com-
21 pleted, initialed, or signed, as applicable;
22 and
23 ‘‘(iii) the lender shall—
24 ‘‘(I) accept the application sub-
pbinns on DSKJLVW7X2PROD with BILLS
25 mitted by the eligible recipient for
•HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
13
1 loan forgiveness under this section;
2 and
3 ‘‘(II) submit the application to
4 the Administrator.
5 ‘‘(B) AUDIT.—The Administrator may—
6 ‘‘(i) review and audit covered loans
7 described in subparagraph (A); and
8 ‘‘(ii) in the case of fraud, ineligibility,
9 or other material noncompliance with ap-
10 plicable loan or loan forgiveness require-
11 ments, modify—
12 ‘‘(I) the amount of a covered loan
13 described in subparagraph (A); or
14 ‘‘(II) the loan forgiveness amount
15 with respect to a covered loan de-
16 scribed in subparagraph (A).
17 ‘‘(3) AUDIT PLAN.—
18 ‘‘(A) IN GENERAL.—Not later than 30
19 days after the date of enactment of this
20 subsectoin, the Administrator shall submit to
21 the Committee on Small Business and Entre-
22 preneurship of the Senate and the Committee
23 on Small Business of the House of Representa-
24 tives an audit plan that details—
pbinns on DSKJLVW7X2PROD with BILLS •HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
14
1 ‘‘(i) the policies and procedures of the
2 Administrator for conducting reviews and
3 audits of covered loans; and
4 ‘‘(ii) the metrics that the Adminis-
5 trator shall use to determine which covered
6 loans will be audited for each category of
7 covered loans described in paragraphs (1)
8 and (2).
9 ‘‘(B) REPORTS.—Not later than 30 days
10 after the date on which the Administrator sub-
11 mits the audit plan required under subpara-
12 graph (A), and each month thereafter, the Ad-
13 ministrator shall submit to the Committee on
14 Small Business and Entrepreneurship of the
15 Senate and the Committee on Small Business
16 of the House of Representatives a report on the
17 review and audit activities of the Administrator
18 under this subsection, which shall include—
19 ‘‘(i) the number of active reviews and
20 audits;
21 ‘‘(ii) the number of reviews and audits
22 that have been ongoing for more than 60
23 days; and
pbinns on DSKJLVW7X2PROD with BILLS •HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
15
1 ‘‘(iii) any substantial changes made to
2 the audit plan submitted under subpara-
3 graph (A).’’.
4 SEC. 5. GROUP INSURANCE PAYMENTS AS PAYROLL COSTS.
5 Section 7(a)(36)(A)(viii)(I)(aa)(EE) of the Small
6 Business Act (15 U.S.C. 636(a)(36)(A)(viii)(I)(aa)(EE))
7 is amended by inserting ‘‘and other group insurance’’ be-
8 fore ‘‘benefits’’.
9 SEC. 6. PAYCHECK PROTECTION PROGRAM SECOND DRAW
10 LOANS.
11 Section 7(a) of the Small Business Act (15 U.S.C.
12 636(a)) is amended by adding at the end the following:
13 ‘‘(37) PAYCHECK PROTECTION PROGRAM SEC-
14 OND DRAW LOANS.—
15 ‘‘(A) DEFINITIONS.—In this paragraph—
16 ‘‘(i) the terms ‘community financial
17 institutions’, ‘credit union’, ‘eligible self-
18 employed individual’, ‘insured depository
19 institution’, ‘nonprofit organization’, ‘pay-
20 roll costs’, ‘seasonal employer’, and ‘vet-
21 erans organization’ have the meanings
22 given those terms in paragraph (36), ex-
23 cept that ‘eligible entity’ shall be sub-
24 stituted for ‘eligible recipient’ each place it
pbinns on DSKJLVW7X2PROD with BILLS
25 appears in the definitions of those terms;
•HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
16
1 ‘‘(ii) the term ‘covered loan’ means a
2 loan made under this paragraph;
3 ‘‘(iii) the terms ‘covered mortgage ob-
4 ligation’, ‘covered operating expenditure’,
5 ‘covered property damage cost’, ‘covered
6 rent obligation’, ‘covered supplier cost’,
7 ‘covered utility payment’, and ‘covered
8 worker protection expenditure’ have the
9 meanings given those terms in section
10 1106(a) of the CARES Act (15 U.S.C.
11 9005(a));
12 ‘‘(iv) the term ‘covered period’ means
13 the period beginning on the date of the
14 origination of a covered loan and ending on
15 December 31, 2020;
16 ‘‘(v) the terms ‘exchange’, ‘issuer’,
17 and ‘security’ have the meanings given
18 those terms in section 3(a) of the Securi-
19 ties Exchange Act of 1934 (15 U.S.C.
20 78c(a));
21 ‘‘(vi) the term ‘eligible entity’—
22 ‘‘(I) means any business concern,
23 nonprofit organization, veterans orga-
24 nization, Tribal business concern, eli-
pbinns on DSKJLVW7X2PROD with BILLS
25 gible self-employed individual, sole
•HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
17
1 proprietor, independent contractor, or
2 small agricultural cooperative that—
3 ‘‘(aa)(AA) with respect to a
4 business concern, would qualify
5 as a small business concern by
6 the annual receipts size standard
7 (if applicable) established by sec-
8 tion 121.201 of title 13, Code of
9 Federal Regulations, or any suc-
10 cessor regulation; or
11 ‘‘(BB) if the entity does not
12 qualify as a small business con-
13 cern, meets the alternative size
14 standard established under sec-
15 tion 3(a)(5);
16 ‘‘(bb) employs not more
17 than 300 employees; and
18 ‘‘(cc)(AA) except as provided
19 in subitems (BB), (CC), and
20 (DD), had gross receipts during
21 the first or second quarter in
22 2020 that are not less than 35
23 percent less than the gross re-
24 ceipts of the entity during the
pbinns on DSKJLVW7X2PROD with BILLS
25 same quarter in 2019;
•HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
18
1 ‘‘(BB) if the entity was not
2 in business during the first or
3 second quarter of 2019, but was
4 in business during the third and
5 fourth quarter of 2019, had gross
6 receipts during the first or sec-
7 ond quarter of 2020 that are less
8 than 35 percent of the amount of
9 the gross receipts of the entity
10 during the third or fourth quar-
11 ter of 2019;
12 ‘‘(CC) if the entity was not
13 in business during the first, sec-
14 ond, or third quarter of 2019,
15 but was in business during the
16 fourth quarter of 2019, had gross
17 receipts during the first or sec-
18 ond quarter of 2020 that are less
19 than 35 percent of the amount of
20 the gross receipts of the entity
21 during the fourth quarter of
22 2019; or
23 ‘‘(DD) if the entity was not
24 in business during 2019, but was
pbinns on DSKJLVW7X2PROD with BILLS
25 in operation on February 15,
•HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00018 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
19
1 2020, had gross receipts during
2 the second quarter of 2020 that
3 are less than 35 percent of the
4 amount of the gross receipts of
5 the entity during the first quar-
6 ter of 2020; and
7 ‘‘(II) does not include—
8 ‘‘(aa) an issuer, the securi-
9 ties of which are listed on an ex-
10 change registered a national se-
11 curities exchange under section 6
12 of the Securities Exchange Act of
13 1934 (15 U.S.C. 78f);
14 ‘‘(bb) any entity that—
15 ‘‘(AA) is a type of busi-
16 ness concern described in
17 subsection (b), (c), (d), (e),
18 (f), (h), (l) (m), (p), (q), (r),
19 or (s) of section 120.110 of
20 title 13, Code of Federal
21 Regulations, or any suc-
22 cessor regulation;
23 ‘‘(BB) is a type of busi-
24 ness concern described in
pbinns on DSKJLVW7X2PROD with BILLS
25 section 120.110(g) of title
•HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00019 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
20
1 13, Code of Federal Regula-
2 tions, or any successor regu-
3 lation, except as otherwise
4 provided in the interim final
5 rule of the Administration
6 entitled ‘Business Loan Pro-
7 gram Temporary Changes;
8 Paycheck Protection Pro-
9 gram—Additional Eligibility
10 Criteria and Requirements
11 for Certain Pledges of
12 Loans’ (85 Fed. Reg. 21747
13 (April 20, 2020));
14 ‘‘(CC) is a type of busi-
15 ness concern described in
16 section 120.110(i) of title
17 13, Code of Federal Regula-
18 tions, or any successor regu-
19 lation, except if the business
20 concern is an organization
21 described in paragraph
22 (36)(D)(vii);
23 ‘‘(DD) is a type of
24 business concern described
pbinns on DSKJLVW7X2PROD with BILLS
25 in section 120.110(j) of title
•HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00020 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
21
1 13, Code of Federal Regula-
2 tions, or any successor regu-
3 lation, except as otherwise
4 provided in the interim final
5 rules of the Administration
6 entitled ‘Business Loan Pro-
7 gram Temporary Changes;
8 Paycheck Protection Pro-
9 gram—Eligibility of Certain
10 Electric Cooperatives’ (85
11 Fed. Reg. 29847 (May 19,
12 2020)) and ‘Business Loan
13 Program Temporary
14 Changes; Paycheck Protec-
15 tion Program—Eligibility of
16 Certain Telephone Coopera-
17 tives’ (85 Fed. Reg. 35550
18 (June 11, 2020)) or any
19 other guidance or rule
20 issued or that may be issued
21 by the Administrator;
22 ‘‘(EE) is a type of busi-
23 ness concern described in
24 section 120.110(n) of title
pbinns on DSKJLVW7X2PROD with BILLS
25 13, Code of Federal Regula-
•HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00021 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
22
1 tions, or any successor regu-
2 lation, except as otherwise
3 provided in the interim final
4 rule of the Administration
5 entitled ‘Business Loan Pro-
6 gram Temporary Changes;
7 Paycheck Protection Pro-
8 gram—Additional Eligibility
9 Revisions to First Interim
10 Final Rule’ (85 Fed. Reg.
11 38301 (June 26, 2020)) or
12 any other guidance or rule
13 issued or that may be issued
14 by the Administrator;
15 ‘‘(FF) is a type of busi-
16 ness concern described in
17 section 120.110(o) of title
18 13, Code of Federal Regula-
19 tions, or any successor regu-
20 lation, except as otherwise
21 provided in any guidance or
22 rule issued or that may be
23 issued by the Administrator;
24 or
pbinns on DSKJLVW7X2PROD with BILLS •HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00022 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
23
1 ‘‘(GG) is an entity that
2 is organized for research or
3 for engaging in advocacy in
4 areas such as public policy
5 or political strategy or other-
6 wise describes itself as a
7 think tank in any public
8 documents;
9 ‘‘(HH) is an entity that
10 would be described in the
11 subsections listed in
12 subitems (AA) through (GG)
13 if the entity were a business
14 concern; or
15 ‘‘(II) is assigned, or
16 was approved for a loan
17 under paragraph (36) with,
18 a North American Industry
19 Classification System code
20 beginning with 52;
21 ‘‘(cc) any business concern
22 or entity primarily engaged in
23 political or lobbying activities,
24 which shall include any entity
pbinns on DSKJLVW7X2PROD with BILLS
25 that is organized for research or
•HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00023 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
24
1 for engaging in advocacy in areas
2 such as public policy or political
3 strategy or otherwise describes
4 itself as a think tank in any pub-
5 lic documents; or
6 ‘‘(dd) any business concern
7 or entity—
8 ‘‘(AA) for which an en-
9 tity created in or organized
10 under the laws of the Peo-
11 ple’s Republic of China or
12 the Special Administrative
13 Region of Hong Kong, or
14 that has significant oper-
15 ations in the People’s Re-
16 public of China or the Spe-
17 cial Administrative Region
18 of Hong Kong, owns or
19 holds, directly or indirectly,
20 not less than 20 percent of
21 the economic interest of the
22 business concern or entity,
23 including as equity shares or
24 a capital or profit interest in
pbinns on DSKJLVW7X2PROD with BILLS •HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00024 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
25
1 a limited liability company
2 or partnership; or
3 ‘‘(BB) that retains, as
4 a member of the board of di-
5 rectors of the business con-
6 cern, a person who is a resi-
7 dent of the People’s Repub-
8 lic of China; and
9 ‘‘(vii) the term ‘Tribal business con-
10 cern’ means a Tribal business concern de-
11 scribed in section 31(b)(2)(C).
12 ‘‘(B) LOANS.—Except as otherwise pro-
13 vided in this paragraph, the Administrator may
14 guarantee covered loans to eligible entities
15 under the same terms, conditions, and processes
16 as a loan made under paragraph (36).
17 ‘‘(C) MAXIMUM LOAN AMOUNT.—
18 ‘‘(i) IN GENERAL.—Except as other-
19 wise provided in this subparagraph, the
20 maximum amount of a covered loan made
21 to an eligible entity is the lesser of—
22 ‘‘(I) the product obtained by mul-
23 tiplying—
24 ‘‘(aa) the average total
pbinns on DSKJLVW7X2PROD with BILLS
25 monthly payment for payroll
•HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
26
1 costs incurred or paid by the eli-
2 gible entity during the 1-year pe-
3 riod before the date on which the
4 loan is made; by
5 ‘‘(bb) 2.5; or
6 ‘‘(II) $2,000,000.
7 ‘‘(ii) SEASONAL EMPLOYERS.—The
8 maximum amount of a covered loan made
9 to an eligible entity that is a seasonal em-
10 ployer is the lesser of—
11 ‘‘(I) the product obtained by mul-
12 tiplying—
13 ‘‘(aa) at the election of the
14 eligible entity, the average total
15 monthly payments for payroll
16 costs incurred or paid by the eli-
17 gible entity—
18 ‘‘(AA) for a 12-week
19 period beginning February
20 15, 2019, or March 1, 2019,
21 and ending June 30, 2019;
22 or
23 ‘‘(BB) for a consecutive
24 12-week period between May
pbinns on DSKJLVW7X2PROD with BILLS •HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00026 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
27
1 1, 2019, and September 15,
2 2019; by
3 ‘‘(bb) 2.5; or
4 ‘‘(II) $1,000,000.
5 ‘‘(iii) NEW ENTITIES.—The maximum
6 amount of a covered loan made to an eligi-
7 ble entity that did not exist during the 1-
8 year period preceding February 15, 2020,
9 is the lesser of—
10 ‘‘(I) the product obtained by mul-
11 tiplying—
12 ‘‘(aa) the quotient obtained
13 by dividing—
14 ‘‘(AA) the sum of the
15 total monthly payments by
16 the eligible entity for payroll
17 costs paid or incurred by the
18 eligible entity as of the date
19 on which the eligible entity
20 applies for the covered loan;
21 by
22 ‘‘(BB) the number of
23 months in which those pay-
24 roll costs were paid or in-
pbinns on DSKJLVW7X2PROD with BILLS
25 curred; by
•HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
28
1 ‘‘(bb) 2.5; or
2 ‘‘(II) $2,000,000.
3 ‘‘(iv) BUSINESS CONCERNS WITH
4 MORE THAN 1 PHYSICAL LOCATION.—
5 ‘‘(I) IN GENERAL.—Any eligible
6 entity that employs not more than
7 300 employees per physical location of
8 the eligible entity and that is assigned
9 a North American Industry Classifica-
10 tion System Code beginning with 72
11 at the time of disbursal shall be eligi-
12 ble to receive a covered loan.
13 ‘‘(II) LIMIT FOR MULTIPLE LO-
14 CATIONS.—With respect to an eligible
15 entity with more than 1 physical loca-
16 tion, the total amount of all covered
17 loans shall be not more than
18 $2,000,000.
19 ‘‘(v) LOAN NUMBER LIMITATION.—An
20 eligible entity may only receive 1 covered
21 loan.
22 ‘‘(vi) 90 DAY RULE FOR MAXIMUM
23 LOAN AMOUNT.—The maximum aggregate
24 loan amount of loans guaranteed under
pbinns on DSKJLVW7X2PROD with BILLS
25 this subsection that are approved for an el-
•HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00028 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
29
1 igible entity (including any affiliates) with-
2 in 90 days of approval of another loan
3 under this subsection for the eligible entity
4 (including any affiliates) shall not exceed
5 $10,000,000.
6 ‘‘(D) EXCEPTION FROM CERTAIN CERTIFI-
7 CATION REQUIREMENTS.—An eligible entity ap-
8 plying for a covered loan shall not be required
9 to make the certification described in subclause
10 (III) or (IV) of paragraph (36)(G)(i).
11 ‘‘(E) FEE WAIVER.—With respect to a cov-
12 ered loan—
13 ‘‘(i) in lieu of the fee otherwise appli-
14 cable under paragraph (23)(A), the Ad-
15 ministrator shall collect no fee; and
16 ‘‘(ii) in lieu of the fee otherwise appli-
17 cable under paragraph (18)(A), the Ad-
18 ministrator shall collect no fee.
19 ‘‘(F) ELIGIBLE CHURCHES AND RELIGIOUS
20 ORGANIZATIONS.—
21 ‘‘(i) SENSE OF CONGRESS.—It is the
22 sense of Congress that the interim final
23 rule of the Administration entitled ‘Busi-
24 ness Loan Program Temporary Changes;
pbinns on DSKJLVW7X2PROD with BILLS
25 Paycheck Protection Program’ (85 Fed.
•HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00029 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
30
1 Reg. 20817 (April 15, 2020)) properly
2 clarified the eligibility of churches and reli-
3 gious organizations for loans made under
4 paragraph (36).
5 ‘‘(ii) APPLICABILITY OF PROHIBI-
6 TION.—The prohibition on eligibility estab-
7 lished by section 120.110(k) of title 13,
8 Code of Federal Regulations, or any suc-
9 cessor regulation, shall not apply to a cov-
10 ered loan.
11 ‘‘(G) GROSS RECEIPTS FOR NONPROFIT
12 AND VETERANS ORGANIZATIONS.—For purposes
13 of calculating gross receipts under subpara-
14 graph (A)(vi)(I)(cc) for an entity that is a non-
15 profit organization or a veterans organization,
16 gross receipts—
17 ‘‘(i) shall include proceeds from fund-
18 raising events, federated campaigns, gifts,
19 donor-advised funds, and funds from simi-
20 lar sources; and
21 ‘‘(ii) shall not include—
22 ‘‘(I) Federal grants (excluding
23 any loan forgiveness on loans received
24 under paragraph (36) or this para-
pbinns on DSKJLVW7X2PROD with BILLS
25 graph;
•HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00030 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
31
1 ‘‘(II) revenues from a supporting
2 organization;
3 ‘‘(III) grants from private foun-
4 dations that are disbursed over the
5 course of more than 1 calendar year;
6 or
7 ‘‘(IV) any contribution of prop-
8 erty other than money, stocks, bonds,
9 and other securities, provided that the
10 non-cash contribution is not sold by
11 the organization in a transaction un-
12 related to the tax-exempt purpose of
13 the organization.
14 ‘‘(H) LOAN FORGIVENESS.—
15 ‘‘(i) IN GENERAL.—Except as pro-
16 vided otherwise provided in this subpara-
17 graph, an eligible entity shall be eligible for
18 forgiveness of indebtedness on a covered
19 loan in the same manner as an eligible re-
20 cipient with respect to a loan made under
21 paragraph (36), as described in section
22 1106 of the CARES Act (15 U.S.C. 9005).
23 ‘‘(ii) FORGIVENESS AMOUNT.—An eli-
24 gible entity shall be eligible for forgiveness
pbinns on DSKJLVW7X2PROD with BILLS
25 of indebtedness on a covered loan in an
•HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00031 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
32
1 amount equal to the sum of the following
2 costs incurred or expenditures made during
3 the covered period:
4 ‘‘(I) Payroll costs.
5 ‘‘(II) Any payment of interest on
6 any covered mortgage obligation
7 (which shall not include any prepay-
8 ment of or payment of principal on a
9 covered mortgage obligation).
10 ‘‘(III) Any covered operations ex-
11 penditure.
12 ‘‘(IV) Any covered property dam-
13 age cost.
14 ‘‘(V) Any payment on any cov-
15 ered rent obligation.
16 ‘‘(VI) Any covered utility pay-
17 ment.
18 ‘‘(VII) Any covered supplier cost.
19 ‘‘(VIII) Any covered worker pro-
20 tection expenditure.
21 ‘‘(iii) LIMITATION ON FORGIVENESS
22 FOR ALL ELIGIBLE ENTITIES.—The for-
23 giveness amount under this subparagraph
24 shall be equal to the lesser of—
pbinns on DSKJLVW7X2PROD with BILLS •HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00032 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
33
1 ‘‘(I) the amount described in
2 clause (ii); and
3 ‘‘(II) the amount equal to the
4 quotient obtained by dividing—
5 ‘‘(aa) the amount of the cov-
6 ered loan used for payroll costs
7 during the covered period; and
8 ‘‘(bb) 0.60.
9 ‘‘(I) LENDER ELIGIBILITY.—Except as
10 otherwise provided in this paragraph, a lender
11 approved to make loans under paragraph (36)
12 may make covered loans under the same terms
13 and conditions as in paragraph (36).
14 ‘‘(J) REIMBURSEMENT FOR LOAN PROC-
15 ESSING AND SERVICING.—The Administrator
16 shall reimburse a lender authorized to make a
17 covered loan in an amount that is—
18 ‘‘(i) 3 percent of the principal amount
19 of the financing of the covered loan up to
20 $350,000; and
21 ‘‘(ii) 1 percent of the principal
22 amount of the financing of the covered
23 loan above $350,000, if applicable.
24 ‘‘(K) SET ASIDE FOR SMALL ENTITIES.—
pbinns on DSKJLVW7X2PROD with BILLS
25 Not less than $25,000,000,000 of the total
•HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00033 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
34
1 amount of covered loans guaranteed by the Ad-
2 ministrator shall be made to eligible entities
3 with not more than 10 employees as of Feb-
4 ruary 15, 2020.
5 ‘‘(L) SET ASIDE FOR COMMUNITY FINAN-
6 CIAL INSTITUTIONS, SMALL INSURED DEPOSI-
7 TORY INSTITUTIONS, CREDIT UNIONS, AND
8 FARM CREDIT SYSTEM INSTITUTIONS.—Not less
9 than $10,000,000,000 of the total amount of
10 covered loans guaranteed by the Administrator
11 shall be made by—
12 ‘‘(i) community financial institutions;
13 ‘‘(ii) insured depository institutions
14 with consolidated assets of less than
15 $10,000,000,000;
16 ‘‘(iii) credit unions with consolidated
17 assets of less than $10,000,000,000; and
18 ‘‘(iv) institutions of the Farm Credit
19 System chartered under the Farm Credit
20 Act of 1971 (12 U.S.C. 2001 et seq.) with
21 consolidated assets of less than
22 $10,000,000,000 (not including the Fed-
23 eral Agricultural Mortgage Corporation).
24 ‘‘(M) PUBLICATION OF GUIDANCE.—Not
pbinns on DSKJLVW7X2PROD with BILLS
25 later than 10 days after the date of enactment
•HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00034 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
35
1 of this paragraph, the Administrator shall issue
2 guidance addressing barriers to accessing cap-
3 ital for minority, underserved, veteran, and
4 women-owned business concerns for the purpose
5 of ensuring equitable access to covered loans.
6 ‘‘(N) STANDARD OPERATING PROCE-
7 DURE.—The Administrator shall, to the max-
8 imum extent practicable, allow a lender ap-
9 proved to make covered loans to use existing
10 program guidance and standard operating pro-
11 cedures for loans made under this subsection.
12 ‘‘(O) COMPLIANCE WITH OVERSIGHT RE-
13 QUIREMENTS.—
14 ‘‘(i) IN GENERAL.—Except as pro-
15 vided in clause (ii), on and after the date
16 of enactment of this paragraph, the Ad-
17 ministrator shall comply with any data or
18 information requests or inquiries made by
19 the Comptroller General of the United
20 States or the Inspector General of any
21 agency not later than 30 days (or such
22 later date as the Comptroller General or
23 Inspector General, as applicable, may
24 specify) after receiving the request or in-
pbinns on DSKJLVW7X2PROD with BILLS
25 quiry.
•HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00035 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
36
1 ‘‘(ii) EXCEPTION.—If the Adminis-
2 trator is unable to comply with a request
3 or inquiry described in clause (i) within the
4 30-day period or, if applicable, later period
5 described in that clause, the Administrator
6 shall, during that 30-day (or later) period,
7 submit to the Committee on Small Busi-
8 ness and Entrepreneurship of the Senate
9 and the Committee on Small Business of
10 the House of Representatives a notification
11 that includes a detailed justification for the
12 inability of the Administrator to comply
13 with the request or inquiry.
14 ‘‘(P) PROHIBITION ON USE OF PROCEEDS
15 FOR LOBBYING ACTIVITIES.—None of the pro-
16 ceeds of a covered loan may be used for lob-
17 bying activities, as defined in section 3 of the
18 Lobbying Disclosure Act of 1995 (2 U.S.C.
19 1602).’’.
20 SEC. 7. CONTINUED ACCESS TO THE PAYCHECK PROTEC-
21 TION PROGRAM.
22 (a) IN GENERAL.—Section 7(a)(36)(E)(ii) of the
23 Small Business Act (15 U.S.C. 636(a)(36)(E)(ii)) is
24 amended by striking ‘‘$10,000,000’’ and inserting
pbinns on DSKJLVW7X2PROD with BILLS
25 ‘‘$2,000,000’’.
•HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00036 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
37
1 (b) APPLICABILITY OF MAXIMUM LOAN AMOUNT
2 CALCULATION.—
3 (1) DEFINITIONS.—In this subsection, the
4 terms ‘‘covered loan’’ and ‘‘eligible recipient’’ have
5 the meanings given those terms in section 7(a)(36)
6 of the Small Business Act (15 U.S.C. 636(a)(36)).
7 (2) APPLICABILITY.—The amendment made by
8 subsection (a) shall apply only with respect to a cov-
9 ered loan applied for by an eligible recipient on or
10 after the date of enactment of this Act.
11 SEC. 8. INCREASED ABILITY FOR PAYCHECK PROTECTION
12 PROGRAM BORROWERS TO REQUEST AN IN-
13 CREASE IN LOAN AMOUNT DUE TO UPDATED
14 REGULATIONS.
15 (a) DEFINITIONS.—In this section, the terms ‘‘cov-
16 ered loan’’ and ‘‘eligible recipient’’ have the meanings
17 given those terms in section 7(a)(36) of the Small Busi-
18 ness Act (15 U.S.C. 636(a)(36)).
19 (b) INCREASED AMOUNT.—Notwithstanding the in-
20 terim final rule issued by the Administration entitled
21 ‘‘Business Loan Program Temporary Changes; Paycheck
22 Protection Program—Loan Increases’’ (85 Fed. Reg.
23 29842 (May 19, 2020)), an eligible recipient of a covered
24 loan that is eligible for an increased covered loan amount
pbinns on DSKJLVW7X2PROD with BILLS
25 as a result of any interim final rule that allows for covered
•HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00037 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
38
1 loan increases may submit a request for an increase in
2 the covered loan amount even if—
3 (1) the initial covered loan amount has been
4 fully disbursed; or
5 (2) the lender of the initial covered loan has
6 submitted to the Administration a Form 1502 report
7 related to the covered loan.
8 SEC. 9. CALCULATION OF MAXIMUM LOAN AMOUNT FOR
9 FARMERS AND RANCHERS UNDER THE PAY-
10 CHECK PROTECTION PROGRAM.
11 (a) IN GENERAL.—Section 7(a)(36) of the Small
12 Business Act (15 U.S.C. 636(a)(36)), as amended by sec-
13 tion 7 of this Act, is amended—
14 (1) in subparagraph (E), in the matter pre-
15 ceding clause (i), by striking ‘‘During’’ and inserting
16 ‘‘Except as provided in subparagraph (T), during’’;
17 and
18 (2) by adding at the end the following:
19 ‘‘(T) CALCULATION OF MAXIMUM LOAN
20 AMOUNT FOR FARMERS AND RANCHERS.—
21 ‘‘(i) DEFINITION.—In this subpara-
22 graph, the term ‘covered recipient’ means
23 an eligible recipient that—
24 ‘‘(I) operates as a sole propri-
pbinns on DSKJLVW7X2PROD with BILLS
25 etorship or as an independent con-
•HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00038 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
39
1 tractor, or is an eligible self-employed
2 individual;
3 ‘‘(II) reports farm income or ex-
4 penses on a Schedule F (or any equiv-
5 alent successor schedule); and
6 ‘‘(III) was in business during the
7 period beginning on February 15,
8 2019, and ending on June 30, 2019.
9 ‘‘(ii) NO EMPLOYEES.—With respect
10 to covered recipient without employees, the
11 maximum covered loan amount shall be the
12 lesser of—
13 ‘‘(I) the sum of—
14 ‘‘(aa) the product obtained
15 by multiplying—
16 ‘‘(AA) the gross income
17 of the covered recipient in
18 2019, as reported on a
19 Schedule F (or any equiva-
20 lent successor schedule),
21 that is not more than
22 $100,000, divided by 12;
23 and
24 ‘‘(BB) 2.5; and
pbinns on DSKJLVW7X2PROD with BILLS •HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00039 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
40
1 ‘‘(bb) the outstanding
2 amount of a loan under sub-
3 section (b)(2) that was made
4 during the period beginning on
5 January 31, 2020, and ending on
6 April 3, 2020, that the borrower
7 intends to refinance under the
8 covered loan, not including any
9 amount of any advance under the
10 loan that is not required to be re-
11 paid; or
12 ‘‘(II) $2,000,000.
13 ‘‘(iii) WITH EMPLOYEES.—With re-
14 spect to a covered recipient with employ-
15 ees, the maximum covered loan amount
16 shall be calculated using the formula de-
17 scribed in subparagraph (E), except that
18 the gross income of the covered recipient
19 described in clause (ii)(I)(aa)(AA) of this
20 subparagraph, as divided by 12, shall be
21 added to the sum calculated under sub-
22 paragraph (E)(i)(I).
23 ‘‘(iv) RECALCULATION.—A lender that
24 made a covered loan to a covered recipient
pbinns on DSKJLVW7X2PROD with BILLS
25 before the date of enactment of this sub-
•HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00040 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
41
1 paragraph may, at the request of the cov-
2 ered recipient—
3 ‘‘(I) recalculate the maximum
4 loan amount applicable to that cov-
5 ered loan based on the formula de-
6 scribed in clause (ii) or (iii), as appli-
7 cable, if doing so would result in a
8 larger covered loan amount; and
9 ‘‘(II) provide the covered recipi-
10 ent with additional covered loan
11 amounts based on that recalcula-
12 tion.’’.
13 SEC. 10. FARM CREDIT SYSTEM INSTITUTIONS.
14 (a) DEFINITION OF FARM CREDIT SYSTEM INSTITU-
15 TION.—In this section, the term ‘‘Farm Credit System in-
16 stitution’’—
17 (1) means an institution of the Farm Credit
18 System chartered under the Farm Credit Act of
19 1971 (12 U.S.C. 2001 et seq.); and
20 (2) does not include the Federal Agricultural
21 Mortgage Corporation.
22 (b) FACILITATION OF PARTICIPATION IN PPP AND
23 SECOND DRAW LOANS.—
24 (1) APPLICABLE RULES.—Solely with respect to
pbinns on DSKJLVW7X2PROD with BILLS
25 loans under paragraphs (36) and (37) of section
•HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00041 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
42
1 7(a) of the Small Business Act (15 U.S.C. 636(a)),
2 Farm Credit Administration regulations and guid-
3 ance issued as of July 14, 2020, and compliance
4 with such regulations and guidance, shall be deemed
5 functionally equivalent to requirements referenced in
6 section 3(a)(iii)(II) of the interim final rule of the
7 Administration entitled ‘‘Business Loan Program
8 Temporary Changes; Paycheck Protection Program’’
9 (85 Fed. Reg. 20811 (April 15, 2020)) or any simi-
10 lar requirement referenced in that interim final rule
11 in implementing such paragraph (37).
12 (2) APPLICABILITY OF CERTAIN LOAN RE-
13 QUIREMENTS.—For purposes of making loans under
14 paragraph (36) or (37) of section 7(a) of the Small
15 Business Act (15 U.S.C. 636(a)) or forgiving those
16 loans in accordance with section 1106 of the CARES
17 Act (15 U.S.C. 9005) and subparagraph (H) of such
18 paragraph (37), sections 4.13, 4.14, and 4.14A of
19 the Farm Credit Act of 1971 (12 U.S.C. 2199,
20 2202, 2202a) (including regulations issued under
21 those sections) shall not apply.
22 (3) RISK WEIGHT.—
23 (A) IN GENERAL.—With respect to the ap-
24 plication of Farm Credit Administration capital
pbinns on DSKJLVW7X2PROD with BILLS •HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00042 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
43
1 requirements, a loan described in subparagraph
2 (B)—
3 (i) shall receive a risk weight of zero
4 percent; and
5 (ii) shall not be included in the cal-
6 culation of any applicable leverage ratio or
7 other applicable capital ratio or calculation.
8 (B) LOANS DESCRIBED.—A loan referred
9 to in subparagraph (A) is—
10 (i) a loan made by a Farm Credit
11 Bank described in section 1.2(a) of the
12 Farm Credit Act of 1971 (12 U.S.C.
13 2002(a)) to a Federal Land Bank Associa-
14 tion, a Production Credit Association, or
15 an agricultural credit association described
16 in that section to make loans under para-
17 graph (36) or (37) of section 7(a) of the
18 Small Business Act (15 U.S.C. 636(a)) or
19 forgive those loans in accordance with sec-
20 tion 1106 of the CARES Act (15 U.S.C.
21 9005) and subparagraph (H) of such para-
22 graph (37); or
23 (ii) a loan made by a Federal Land
24 Bank Association, a Production Credit As-
pbinns on DSKJLVW7X2PROD with BILLS
25 sociation, an agricultural credit associa-
•HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00043 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
44
1 tion, or the bank for cooperatives described
2 in section 1.2(a) of the Farm Credit Act of
3 1971 (12 U.S.C. 2002(a)) under para-
4 graph (36) or (37) of section 7(a) of the
5 Small Business Act (15 U.S.C. 636(a)).
6 (4) RESERVATION OF LOAN GUARANTEES.—
7 Section 7(a)(36)(S) of the Small Business Act (15
8 U.S.C. 636(a)(36)(S)) is amended—
9 (A) in clause (i)—
10 (i) in subclause (I), by striking ‘‘and’’
11 at the end;
12 (ii) in subclause (II), by striking the
13 period at the end and inserting ‘‘; and’’;
14 and
15 (iii) by adding at the end the fol-
16 lowing:
17 ‘‘(III) institutions of the Farm
18 Credit System chartered under the
19 Farm Credit Act of 1971 (12 U.S.C.
20 2001 et seq.) with consolidated assets
21 of not less than $10,000,000,000 and
22 less than $50,000,000,000.’’; and
23 (B) in clause (ii)—
24 (i) in subclause (II), by striking
pbinns on DSKJLVW7X2PROD with BILLS
25 ‘‘and’’ at the end;
•HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00044 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
45
1 (ii) in subclause (III), by striking the
2 period at the end and inserting ‘‘; and’’;
3 and
4 (iii) by adding at the end the fol-
5 lowing:
6 ‘‘(IV) institutions of the Farm
7 Credit System chartered under the
8 Farm Credit Act of 1971 (12 U.S.C.
9 2001 et seq.) with consolidated assets
10 of less than $10,000,000,000.’’.
11 SEC. 11. DEFINITION OF SEASONAL EMPLOYER.
12 (a) PPP LOANS.—Section 7(a)(36)(A) of the Small
13 Business Act (15 U.S.C. 636(a)(36)(A)) is amended—
14 (1) in clause (xi), by striking ‘‘and’’ at the end;
15 (2) in clause (xii), by striking the period at the
16 end and inserting ‘‘; and’’; and
17 (3) by adding at the end the following:
18 ‘‘(xiii) the term ‘seasonal employer’
19 means an eligible recipient that—
20 ‘‘(I) does not operate for more
21 than 7 months in any calendar year;
22 or
23 ‘‘(II) during the preceding cal-
24 endar year, had gross receipts for any
pbinns on DSKJLVW7X2PROD with BILLS
25 6 months of that year that were not
•HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00045 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
46
1 more than 33.33 percent of the gross
2 receipts of the employer for the other
3 6 months of that year.’’.
4 (b) LOAN FORGIVENESS.—Paragraph (12) of section
5 1106(a) of the CARES Act (15 U.S.C. 9005(a)), as so
6 redesignated by section 1(b) of this Act, is amended to
7 read as follows:
8 ‘‘(12) the terms ‘payroll costs’ and ‘seasonal
9 employer’ have the meanings given those terms in
10 section 7(a)(36) of the Small Business Act (15
11 U.S.C. 636(a)(36)).’’.
12 SEC. 12. ELIGIBILITY OF 501(C)(6) ORGANIZATIONS FOR
13 LOANS UNDER THE PAYCHECK PROTECTION
14 PROGRAM.
15 Section 7(a)(36)(D) of the Small Business Act (15
16 U.S.C. 636(a)(36)(D)) is amended—
17 (1) in clause (v), by inserting ‘‘or whether an
18 entity described in clause (vii) employs not more
19 than 300 employees,’’ after ‘‘clause (i)(I),’’; and
20 (2) by adding at the end the following:
21 ‘‘(vii) ELIGIBILITY FOR CERTAIN
22 501(C)(6) ORGANIZATIONS.—
23 ‘‘(I) IN GENERAL.—Except as
24 provided in subclause (II), any organi-
pbinns on DSKJLVW7X2PROD with BILLS
25 zation that is described in section
•HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00046 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
47
1 501(c)(6) of the Internal Revenue
2 Code and that is exempt from tax-
3 ation under section 501(a) of such
4 Code (excluding professional football
5 leagues and organizations with the
6 purpose of promoting or participating
7 in a political campaign or other activ-
8 ity) shall be eligible to receive a cov-
9 ered loan if—
10 ‘‘(aa) the organization does
11 not receive more than 10 percent
12 of its receipts from lobbying ac-
13 tivities;
14 ‘‘(bb) the lobbying activities
15 of the organization do not com-
16 prise more than 10 percent of the
17 total activities of the organiza-
18 tion; and
19 ‘‘(cc) the organization em-
20 ploys not more than 300 employ-
21 ees.
22 ‘‘(II) DESTINATION MARKETING
23 ORGANIZATIONS.—Notwithstanding
24 subclause (I), during the covered pe-
pbinns on DSKJLVW7X2PROD with BILLS
25 riod, any destination marketing orga-
•HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00047 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
48
1 nization shall be eligible to receive a
2 covered loan if—
3 ‘‘(aa) the destination mar-
4 keting organization does not re-
5 ceive more than 10 percent of its
6 receipts from lobbying activities;
7 ‘‘(bb) the lobbying activities
8 of the destination marketing or-
9 ganization do not comprise more
10 than 10 percent of the total ac-
11 tivities of the organization;
12 ‘‘(cc) the destination mar-
13 keting organization employs not
14 more than 300 employees; and
15 ‘‘(dd) the destination mar-
16 keting organization—
17 ‘‘(AA) is described in
18 section 501(c) of the Inter-
19 nal Revenue Code and is ex-
20 empt from taxation under
21 section 501(a) of such Code;
22 or
23 ‘‘(BB) is a quasi-gov-
24 ernmental entity or is a po-
pbinns on DSKJLVW7X2PROD with BILLS
25 litical subdivision of a State
•HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00048 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
49
1 or local government, includ-
2 ing any instrumentality of
3 those entities.’’.
4 SEC. 13. PROHIBITION ON USE OF LOAN PROCEEDS FOR
5 LOBBYING ACTIVITIES.
6 Section 7(a)(36)(F) of the Small Business Act (15
7 U.S.C. 636(a)(36)(F)) is amended by adding at the end
8 the following:
9 ‘‘(vi) PROHIBITION.—None of the pro-
10 ceeds of a covered loan may be used for
11 lobbying activities, as defined in section 3
12 of the Lobbying Disclosure Act of 1995 (2
13 U.S.C. 1602).’’.
14 SEC. 14. EFFECTIVE DATE; APPLICABILITY.
15 The amendments made to paragraph (36) of section
16 7(a) of the Small Business Act (15 U.S.C. 636(a)) and
17 title I of the CARES Act (Public Law 116–136) under
18 this Act, except for section 17 of this Act, shall be effective
19 as if included in the CARES Act and shall apply to any
20 loan made pursuant to section 7(a)(36) of the Small Busi-
21 ness Act (15 U.S.C. 636(a)(36)).
22 SEC. 15. BANKRUPTCY PROVISIONS.
23 (a) IN GENERAL.—Section 364 of title 11, United
24 States Code, is amended by adding at the end the fol-
pbinns on DSKJLVW7X2PROD with BILLS
25 lowing:
•HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00049 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
50
1 ‘‘(g)(1) The court, after notice and a hearing, may
2 authorize a debtor in possession or a trustee that is au-
3 thorized to operate the business of the debtor under sec-
4 tion 1183, 1184, 1203, 1204, or 1304 of this title to ob-
5 tain a loan under section 7(a)(36) of the Small Business
6 Act (15 U.S.C. 636(a)(36)), and such loan shall be treated
7 as a debt to the extent the loan is not forgiven under sec-
8 tion 1106 of the CARES Act (15 U.S.C. 9005) with pri-
9 ority equal to a claim of the kind specified in subsection
10 (c)(1) of this section.
11 ‘‘(2) The trustee may incur debt described in para-
12 graph (1) notwithstanding any provision in a contract,
13 prior order authorizing the trustee to incur debt under this
14 section, prior order authorizing the trustee to use cash col-
15 lateral under section 363, or applicable law that prohibits
16 the debtor from incurring additional debt.
17 ‘‘(3) The court shall hold a hearing within 7 days
18 after the filing and service of the motion to obtain a loan
19 described in paragraph (1).’’.
20 (b) ALLOWANCE OF ADMINISTRATIVE EXPENSES.—
21 Section 503(b) of title 11, United States Code, is amend-
22 ed—
23 (1) in paragraph (8)(B), by striking ‘‘and’’ at
24 the end;
pbinns on DSKJLVW7X2PROD with BILLS •HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00050 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
51
1 (2) in paragraph (9), by striking the period at
2 the end and inserting ‘‘; and’’; and
3 (3) by adding at the end the following:
4 ‘‘(10) any debt incurred under section
5 364(g)(1) of this title.’’.
6 (c) CONFIRMATION OF PLAN FOR REORGANIZA-
7 TION.—Section 1191 of title 11, United States Code, is
8 amended by adding at the end the following:
9 ‘‘(f) SPECIAL PROVISION RELATED TO COVID–19
10 PANDEMIC.—Notwithstanding section 1129(a)(9)(A) of
11 this title and subsection (e) of this section, a plan that
12 provides for payment of a claim of a kind specified in sec-
13 tion 503(b)(10) of this title may be confirmed under sub-
14 section (b) of this section if the plan proposes to make
15 payments on account of such claim when due under the
16 terms of the loan giving rise to such claim.’’.
17 (d) CONFIRMATION OF PLAN FOR FAMILY FARMERS
18 AND FISHERMEN.—Section 1225 of title 11, United
19 States Code, is amended by adding at the end the fol-
20 lowing:
21 ‘‘(d) Notwithstanding section 1222(a)(2) of this title
22 and subsection (b)(1) of this section, a plan that provides
23 for payment of a claim of a kind specified in section
24 503(b)(10) of this title may be confirmed if the plan pro-
pbinns on DSKJLVW7X2PROD with BILLS
25 poses to make payments on account of such claim when
•HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00051 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
52
1 due under the terms of the loan giving rise to such
2 claim.’’.
3 (e) CONFIRMATION OF PLAN FOR INDIVIDUALS.—
4 Section 1325 of title 11, United States Code, is amended
5 by adding at the end the following:
6 ‘‘(d) Notwithstanding section 1322(a)(2) of this title
7 and subsection (b)(1) of this section, a plan that provides
8 for payment of a claim of a kind specified in section
9 503(b)(10) of this title may be confirmed if the plan pro-
10 poses to make payments on account of such claim when
11 due under the terms of the loan giving rise to such
12 claim.’’.
13 (f) EFFECTIVE DATE; SUNSET.—
14 (1) EFFECTIVE DATE.—The amendments made
15 by subsections (a) through (e) shall—
16 (A) take effect on the date on which the
17 Administrator of the Small Business Adminis-
18 tration submits to the Director of the Executive
19 Office for United States Trustees a written de-
20 termination that, subject to satisfying any other
21 eligibility requirements, any debtor in posses-
22 sion or trustee that is authorized to operate the
23 business of the debtor under section 1183,
24 1184, 1203, 1204, or 1304 of title 11, United
pbinns on DSKJLVW7X2PROD with BILLS
25 States Code, would be eligible for a loan under
•HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00052 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
53
1 section 7(a)(36) of the Small Business Act (15
2 U.S.C. 636(a)(36)); and
3 (B) apply to any case pending on or com-
4 menced on or after the date described in sub-
5 paragraph (A).
6 (2) SUNSET.—
7 (A) IN GENERAL.—If the amendments
8 made by this section take effect under para-
9 graph (1), effective on the date that is 2 years
10 after the date of enactment of this Act—
11 (i) section 364 of title 11, United
12 States Code, is amended by striking sub-
13 section (g);
14 (ii) section 503(b) of title 11, United
15 States Code, is amended—
16 (I) in paragraph (8)(B), by add-
17 ing ‘‘and’’ at the end;
18 (II) in paragraph (9), by striking
19 ‘‘; and’’ at the end and inserting a pe-
20 riod; and
21 (III) by striking paragraph (10);
22 (iii) section 1191 of title 11, United
23 States Code, is amended by striking sub-
24 section (f);
pbinns on DSKJLVW7X2PROD with BILLS •HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00053 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
54
1 (iv) section 1225 of title 11, United
2 States Code, is amended by striking sub-
3 section (d); and
4 (v) section 1325 of title 11, United
5 States Code, is amended by striking sub-
6 section (d).
7 (B) APPLICABILITY.—Notwithstanding the
8 amendments made by subparagraph (A) of this
9 paragraph, if the amendments made by sub-
10 sections (a), (b), (c), (d), and (e) take effect
11 under paragraph (1) of this subsection, such
12 amendments shall apply to any case under title
13 11, United States Code, commenced before the
14 date that is 2 years after the date of enactment
15 of this Act.
16 SEC. 16. CONFLICTS OF INTEREST.
17 (a) DEFINITIONS.—In this section:
18 (1) CONTROLLING INTEREST.—The term ‘‘con-
19 trolling interest’’ means owning, controlling, or hold-
20 ing not less than 20 percent, by vote or value, of the
21 outstanding amount of any class of equity interest in
22 an entity.
23 (2) COVERED ENTITY.—
24 (A) DEFINITION.—The term ‘‘covered enti-
pbinns on DSKJLVW7X2PROD with BILLS
25 ty’’ means an entity in which a covered indi-
•HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00054 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
55
1 vidual directly or indirectly holds a controlling
2 interest.
3 (B) TREATMENT OF SECURITIES.—For the
4 purpose of determining whether an entity is a
5 covered entity, the securities owned, controlled,
6 or held by 2 or more individuals who are related
7 as described in paragraph (3)(B) shall be ag-
8 gregated.
9 (3) COVERED INDIVIDUAL.—The term ‘‘covered
10 individual’’ means—
11 (A) the President, the Vice President, the
12 head of an Executive department, or a Member
13 of Congress; and
14 (B) the spouse, child, son-in-law, or daugh-
15 ter-in-law, as determined under applicable com-
16 mon law, of an individual described in subpara-
17 graph (A).
18 (4) EXECUTIVE DEPARTMENT.—The term ‘‘Ex-
19 ecutive department’’ has the meaning given the term
20 in section 101 of title 5, United States Code.
21 (5) MEMBER OF CONGRESS.—The term ‘‘Mem-
22 ber of Congress’’ means a Member of the Senate or
23 House of Representatives, a Delegate to the House
24 of Representatives, and the Resident Commissioner
pbinns on DSKJLVW7X2PROD with BILLS
25 from Puerto Rico.
•HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00055 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
56
1 (6) EQUITY INTEREST.—The term ‘‘equity in-
2 terest’’ means—
3 (A) a share in an entity, without regard to
4 whether the share is—
5 (i) transferable; or
6 (ii) classified as stock or anything
7 similar;
8 (B) a capital or profit interest in a limited
9 liability company or partnership; or
10 (C) a warrant or right, other than a right
11 to convert, to purchase, sell, or subscribe to a
12 share or interest described in subparagraph (A)
13 or (B), respectively.
14 (b) REQUIREMENT.—The principal executive officer
15 and the principal financial officer, or individuals per-
16 forming similar functions, of an entity seeking to enter
17 a transaction made under paragraph (36) or (37) of sec-
18 tion 7(a) of the Small Business Act (15 U.S.C. 636(a)),
19 as added and amended by this Act, shall, before that
20 transaction is approved, disclose to the Administrator
21 whether the entity is a covered entity.
22 (c) APPLICABILITY.—The requirement under sub-
23 section (b)—
24 (1) shall apply with respect to any transaction
pbinns on DSKJLVW7X2PROD with BILLS
25 made under paragraph (36) or (37) of section 7(a)
•HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00056 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
57
1 of the Small Business Act (15 U.S.C. 636(a)), as
2 added and amended by this Act, on or after the date
3 of enactment of this Act; and
4 (2) shall not apply with respect to—
5 (A) any transaction described in paragraph
6 (1) that was made before the date of enactment
7 of this Act; or
8 (B) forgiveness under section 1106 of the
9 CARES Act (15 U.S.C. 9005) or any other pro-
10 vision of law of any loan associated with any
11 transaction described in paragraph (1) that was
12 made before the date of enactment of this Act.
13 SEC. 17. FUNDING.
14 (a) COMMITMENT AUTHORITY.—
15 (1) CARES ACT AMENDMENTS.—Section
16 1102(b) of the CARES Act (Public Law 116–136)
17 is amended—
18 (A) in paragraph (1)—
19 (i) in the paragraph heading, by in-
20 serting ‘‘AND SECOND DRAW’’ after
21 ‘‘PPP’’;
22 (ii) by striking ‘‘August 8, 2020’’ and
23 inserting ‘‘December 31, 2020’’;
24 (iii) by striking ‘‘paragraph (36)’’ and
pbinns on DSKJLVW7X2PROD with BILLS
25 inserting ‘‘paragraphs (36) and (37)’’; and
•HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00057 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
58
1 (iv) by striking ‘‘$659,000,000,000’’
2 and inserting ‘‘$749,000,000,000’’; and
3 (B) by amending paragraph (2) to read as
4 follows:
5 ‘‘(2) OTHER 7(a) LOANS.—During fiscal year
6 2020, the amount authorized for commitments for
7 section 7(a) of the Small Business Act (15 U.S.C.
8 636(a)) under the heading ‘Small Business Adminis-
9 tration—Business Loans Program Account’ in the
10 Financial Services and General Government Appro-
11 priations Act, 2020 (division C of Public Law 116–
12 193) shall apply with respect to any commitments
13 under such section 7(a) other than under para-
14 graphs (36) and (37) of such section 7(a).’’.
15 (b) DIRECT APPROPRIATIONS.—
16 (1) RESCISSION.—With respect to unobligated
17 balances under the heading ‘‘″Small Business Ad-
18 ministration—Business Loans Program Account,
19 CARES Act’’ as of the day before the date of enact-
20 ment of this Act, $100,000,000,000 shall be perma-
21 nently rescinded.
22 (2) NEW DIRECT APPROPRIATIONS.—There is
23 appropriated, out of amounts in the Treasury not
24 otherwise appropriated, for the fiscal year ending
pbinns on DSKJLVW7X2PROD with BILLS
25 September 30, 2020, for an additional amount for
•HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00058 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
59
1 ‘‘Small Business Administration—Business Loans
2 Program Account, CARES Act’’, $190,000,000,000,
3 to remain available under September 30, 2021, for
4 the cost of guaranteed loans as authorized under
5 paragraph (36) and (37) of section 7(a) of the Small
6 Business Act (15 U.S.C. 636(a)), as amended and
7 added by this Act.
8 (c) EMERGENCY DESIGNATION.—
9 (1) IN GENERAL.—The amounts provided under
10 this section are designated as an emergency require-
11 ment pursuant to section 4(g) of the Statutory Pay-
12 As-You-Go Act of 2010 (2 U.S.C. 933(g)).
13 (2) DESIGNATION IN SENATE.—In the Senate,
14 this section is designated as an emergency require-
15 ment pursuant to section 4112(a) of H. Con. Res.
16 71 (115th Congress), the concurrent resolution on
17 the budget for fiscal year 2018.
18 SEC. 18. EMERGENCY RULEMAKING AUTHORITY.
19 Not later than 30 days after the date of enactment
20 of this Act, the Administrator shall issue regulations to
21 carry out this Act and the amendments made by this Act
22 without regard to the notice requirements under section
23 553(b) of title 5, United States Code.
24 SEC. 19. DEFINITIONS.
pbinns on DSKJLVW7X2PROD with BILLS
25 In this Act:
•HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00059 Fmt 6652 Sfmt 6201 E:\BILLS\H8087.IH H8087
60
1 (1) ADMINISTRATION; ADMINISTRATOR.—The
2 terms ‘‘Administration’’ and ‘‘Administrator’’ mean
3 the Small Business Administration and the Adminis-
4 trator thereof.
5 (2) SMALL BUSINESS CONCERN.—The term
6 ‘‘small business concern’’ has the meaning given the
7 term in section 3 of the Small Business Act (15
8 U.S.C. 632).
Æ
pbinns on DSKJLVW7X2PROD with BILLS •HR 8087 IH
VerDate Sep 11 2014 17:36 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00060 Fmt 6652 Sfmt 6301 E:\BILLS\H8087.IH H8087
File and source
- File
- BILLS_bills-116hr8087ih_bills-116hr8087ih.pdf
- Size
- 314,688 bytes
- SHA-256
- c407dba9acfebb9dcc724953fff55cf9a34383adffaf9c90e7d7bd00f189369c
- Original
- www.govinfo.gov