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S. 3865, Paycheck Protection Program Second Chance Act

Summary

S. 3865 was introduced in the Senate on June 2, 2020, by Portman for himself, Cardin, Lankford, and Booker, and referred to the Committee on Small Business and Entrepreneurship. It may be cited as the Paycheck Protection Program Second Chance Act. Section 2 amends section 7(a)(36) of the Small Business Act so that an entity is an eligible recipient notwithstanding an arrest or conviction of an owner under Federal, State, or Tribal law, unless the owner is incarcerated on the date the entity applies for a covered loan. An entity may not receive a covered loan if, during the 5-year period before applying, an owner has been convicted of a felony of financial fraud or deception, and the Administrator may waive that requirement.

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Issuer
Congressional materials
Document type
Bills Bills 116S3865Is Bills 116S3865Is
Case
Bills Bills 116S3865Is Bills 116S3865Is

Cite this document

“S. 3865, Paycheck Protection Program Second Chance Act.” Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/bills-bills-116s3865is-bills-116s3865is/, SHA-256 c6c05d69924432b24f482556a6f948598d7612614b781a2c64e84a7ef8986990.

Full text

                                                                                                                                                                          II




                                                                       116TH CONGRESS
                                                                          2D SESSION
                                                                                                              S. 3865
                                                                        To provide for the treatment of certain criminal violations under the paycheck
                                                                                         protection program, and for other purposes.




                                                                                   IN THE SENATE OF THE UNITED STATES
                                                                                                      JUNE 2, 2020
                                                                       Mr. PORTMAN (for himself, Mr. CARDIN, Mr. LANKFORD, and Mr. BOOKER)
                                                                           introduced the following bill; which was read twice and referred to the
                                                                           Committee on Small Business and Entrepreneurship




                                                                                                                 A BILL
                                                                       To provide for the treatment of certain criminal violations
                                                                          under 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. SHORT TITLE.

                                                                         4              This Act may be cited as the ‘‘Paycheck Protection
                                                                         5 Program Second Chance Act’’.




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                                                                                                                                  2
                                                                         1     SEC. 2. TREATMENT OF CERTAIN CRIMINAL VIOLATIONS

                                                                         2                             UNDER THE PAYCHECK PROTECTION PRO-

                                                                         3                             GRAM.

                                                                         4              (a) IN GENERAL.—Section 7(a)(36) of the Small
                                                                         5 Business Act (15 U.S.C. 636(a)(36)) is amended by add-
                                                                         6 ing at the end the following:
                                                                         7                                 ‘‘(T) TREATMENT OF CERTAIN CRIMINAL
                                                                         8                        VIOLATIONS.—

                                                                         9                                         ‘‘(i) ARRESTS OR CONVICTIONS.—Ex-
                                                                       10                                  cept as provided in clause (ii), an entity
                                                                       11                                  that is a business, organization, coopera-
                                                                       12                                  tive, or enterprise shall be an eligible re-
                                                                       13                                  cipient notwithstanding an arrest or con-
                                                                       14                                  viction under Federal, State, or Tribal law
                                                                       15                                  of an owner of not less than 20 percent of
                                                                       16                                  the equity of the entity, unless the owner
                                                                       17                                  is incarcerated on the date on which the
                                                                       18                                  entity applies for a covered loan.
                                                                       19                                          ‘‘(ii) FINANCIAL FRAUD OR DECEP-
                                                                       20                                  TION.—Notwithstanding clause (i), an en-

                                                                       21                                  tity that is a business, organization, coop-
                                                                       22                                  erative, or enterprise may not receive a
                                                                       23                                  covered loan if, during the 5-year period
                                                                       24                                  preceding the date on which the entity ap-




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                                                                       25                                  plies for a covered loan, an owner of not
                                                                       26                                  less than 20 percent of the equity of the
                                                                                   •S 3865 IS

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                                                                                                                                  3
                                                                         1                                 entity has been convicted of a felony of fi-
                                                                         2                                 nancial fraud or deception under Federal,
                                                                         3                                 State, or Tribal law.
                                                                         4                                         ‘‘(iii) WAIVER.—The Administrator
                                                                         5                                 may waive the requirements under clause
                                                                         6                                 (ii).’’.
                                                                         7              (b) RULEMAKING.—Not later than 15 days after the
                                                                         8 date of enactment of this Act, the Administrator of the
                                                                         9 Small Business Administration shall make necessary revi-
                                                                       10 sions to any rules of the Administration to carry out the
                                                                       11 amendment made by subsection (a).
                                                                                                                                  Æ




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                                                                                   •S 3865 IS

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