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S. 4117, Paycheck Protection Small Business Forgiveness Act

Summary

S. 4117, the Paycheck Protection Small Business Forgiveness Act, was introduced in the Senate of the United States on June 30, 2020 by Mr. Cramer (for himself, Mr. Menendez, Mr. Tillis, and Ms. Sinema). It would amend section 1106 of the CARES Act to provide automatic forgiveness for paycheck protection program loans under $150,000. A covered loan of not more than $150,000 would be forgiven if the eligible recipient submits a one-page online or paper form attesting compliance with section 7(a)(36) of the Small Business Act. A lender that relies on an attestation could face no enforcement action for any falsehoods in it.

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Issuer
Congressional materials
Document type
Bills Bills 116S4117Is Bills 116S4117Is
Case
Bills Bills 116S4117Is Bills 116S4117Is

Cite this document

“S. 4117, Paycheck Protection Small Business Forgiveness Act.” Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/bills-bills-116s4117is-bills-116s4117is/, SHA-256 753b15e22b47f50b564b910f822189bf7160adbef8e4ccc7919449a9c4cd994e.

Full text

                                                                                                                                                                            II




                                                                       116TH CONGRESS
                                                                          2D SESSION
                                                                                                                 S. 4117
                                                                        To provide automatic forgiveness for paycheck protection program loans under
                                                                                             $150,000, and for other purposes.




                                                                                   IN THE SENATE OF THE UNITED STATES
                                                                                                        JUNE 30, 2020
                                                                       Mr. CRAMER (for himself, Mr. MENENDEZ, Mr. TILLIS, and Ms. SINEMA) in-
                                                                           troduced the following bill; which was read twice and referred to the Com-
                                                                           mittee on Small Business and Entrepreneurship




                                                                                                                    A BILL
                                                                            To provide automatic forgiveness for paycheck protection
                                                                            program loans under $150,000, 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 Small Business Forgiveness Act’’.
                                                                          6        SEC. 2. LOAN FORGIVENESS FOR PPP LOANS UNDER

                                                                          7                                 $150,000.

                                                                          8               Section 1106 of the CARES Act (Public Law 116–




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                                                                          9 136) is amended—




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                                                                          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 (m), an eligi-
                                                                          4              ble’’;
                                                                          5                       (2) in subsection (f), by inserting ‘‘or the infor-
                                                                          6              mation required under subsection (m), as applica-
                                                                          7              ble’’ after ‘‘subsection (e)’’;
                                                                          8                       (3) by striking subsection (h) and inserting the
                                                                          9              following:
                                                                       10                ‘‘(h) HOLD HARMLESS.—
                                                                       11                         ‘‘(1) IN GENERAL.—A lender may rely on all
                                                                       12                certifications and documentation submitted by an
                                                                       13                applicant or eligible recipient pursuant to any re-
                                                                       14                quirement in statute regarding covered loans, or
                                                                       15                rules or guidance promulgated to carry out any ac-
                                                                       16                tion relating to covered loans, from an applicant or
                                                                       17                eligible recipient attesting that the applicant or eligi-
                                                                       18                ble recipient has accurately verified all documenta-
                                                                       19                tion provided to the lender.
                                                                       20                         ‘‘(2) NO ENFORCEMENT ACTION.—With respect
                                                                       21                to a lender that relies on the certifications and docu-
                                                                       22                mentation described in paragraph (1)—
                                                                       23                                  ‘‘(A) no enforcement or other action may
                                                                       24                         be taken against the lender relating to loan



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                                                                          1                       origination, forgiveness, or guarantee based on
                                                                          2                       such reliance, including claims under—
                                                                          3                                        ‘‘(i) the Small Business Act (15
                                                                          4                                U.S.C. 631 et seq.);
                                                                          5                                        ‘‘(ii) sections 3729 through 3733 of
                                                                          6                                title 31, United States Code (commonly
                                                                          7                                known as the ‘False Claims Act’);
                                                                          8                                        ‘‘(iii) the Financial Institutions Re-
                                                                          9                                form, Recovery, and Enforcement Act
                                                                       10                                  (Public Law 101–73);
                                                                       11                                          ‘‘(iv) section 21 of the Federal De-
                                                                       12                                  posit Insurance Act (12 U.S.C. 1829b),
                                                                       13                                  chapter 2 of title I of Public Law 91–508
                                                                       14                                  (12 U.S.C. 1951 et seq.), and subchapter
                                                                       15                                  II of chapter 53 of title 31, United States
                                                                       16                                  Code (collectively known as the ‘Bank Se-
                                                                       17                                  crecy Act’); or
                                                                       18                                          ‘‘(v) any other Federal, State, or
                                                                       19                                  other criminal or civil law or regulation;
                                                                       20                                  and
                                                                       21                                  ‘‘(B) the lender shall not be subject to any
                                                                       22                         penalties relating to loan origination, forgive-
                                                                       23                         ness, or guarantee based on such reliance.’’;
                                                                       24                         and



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                                                                       25                         (4) by adding at the end the following:


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                                                                          1              ‘‘(m) FORGIVENESS FOR COVERED LOANS UNDER
                                                                          2 $150,000.—
                                                                          3                       ‘‘(1) IN GENERAL.—Notwithstanding subsection
                                                                          4              (e), with respect to a covered loan made to an eligi-
                                                                          5              ble recipient that is not more than $150,000, the
                                                                          6              covered loan amount shall be forgiven under this
                                                                          7              section if the eligible recipient submits to the lender
                                                                          8              a one-page online or paper form, to be established
                                                                          9              by the Administrator not later than 7 days after the
                                                                       10                date of enactment of this subsection, that attests
                                                                       11                that the eligible recipient complied with the require-
                                                                       12                ments under section 7(a)(36) of the Small Business
                                                                       13                Act (15 U.S.C. 636(a)(36)).
                                                                       14                         ‘‘(2) HOLD               HARMLESS.—With                         respect to a
                                                                       15                lender that relies on an attestation submitted by an
                                                                       16                eligible recipient under paragraph (1), no enforce-
                                                                       17                ment action may be taken against the lender for any
                                                                       18                falsehoods contained in the attestation.
                                                                       19                         ‘‘(3) DEMOGRAPHIC INFORMATION.—The online
                                                                       20                or paper form established by the Administrator
                                                                       21                under paragraph (1) shall include a means by which
                                                                       22                an eligible recipient may, at the discretion of the eli-
                                                                       23                gible recipient, submit demographic information of
                                                                       24                the owner of the eligible recipient, including the sex,



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                                                                       25                race, ethnicity, and veteran status of the owner.


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                                                                          1               ‘‘(n)        ENFORCEMENT                       ACTION              AGAINST       BOR-
                                                                          2        ROWERS.—An eligible recipient of a covered loan may only

                                                                          3 be subject to an enforcement action or penalty relating
                                                                          4 to loan origination, forgiveness, or guarantee of the cov-
                                                                          5 ered loan if the eligible recipient commits fraud or expends
                                                                          6 covered loan proceeds on expenses that are not allowable
                                                                          7 under section 7(a)(36)(F) of the Small Business Act (15
                                                                          8 U.S.C. 636(a)(36)(F)).’’.
                                                                                                                                   Æ




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