Bill — S. 1232, Maximum Paycheck Protection Program Loan Amount for Farmers and Ranchers
Summary
S. 1232 is a bill introduced in the Senate on April 20, 2021 by Ms. Baldwin and referred to the Committee on Small Business and Entrepreneurship. Its stated purpose is to modify the maximum paycheck protection program loan amount for farmers and ranchers, sole proprietors, and independent contractors, among others. Section 1, headed Calculation of Maximum PPP Loan Amount, amends section 7(a)(36)(V) of the Small Business Act by striking clause (i) and inserting a definition of covered recipient. The amendment is to be effective as if included in the CARES Act (Public Law 116–136) and to apply to any loan made pursuant to section 7(a)(36) before, on, or after the date of enactment.
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Cite this document
“Bill — S. 1232, Maximum Paycheck Protection Program Loan Amount for Farmers and Ranchers.”
Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/bills-bills-117s1232is-bills-117s1232is/
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II
117TH CONGRESS
1ST SESSION
S. 1232
To modify the maximum paycheck protection program loan amount for farm-
ers and ranchers, sole proprietors, independent contractors, and self-
employed individuals.
IN THE SENATE OF THE UNITED STATES
APRIL 20, 2021
Ms. BALDWIN introduced the following bill; which was read twice and referred
to the Committee on Small Business and Entrepreneurship
A BILL
To modify the maximum paycheck protection program loan
amount for farmers and ranchers, sole proprietors, inde-
pendent contractors, and self-employed individuals.
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. CALCULATION OF MAXIMUM PPP LOAN
4 AMOUNT.
5 (a) IN GENERAL.—Section 7(a)(36)(V) of the Small
6 Business Act (15 U.S.C. 636(a)(36)(V)) is amended—
7 (1) by striking clause (i) and inserting the fol-
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8 lowing:
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1 ‘‘(i) DEFINITION.—In this subpara-
2 graph, the term ‘covered recipient’ means
3 an eligible recipient that—
4 ‘‘(I)(aa) operates as a sole pro-
5 prietorship, as an independent con-
6 tractor, or as a partnership with gross
7 farming income from self-employment;
8 or
9 ‘‘(bb) is an eligible self-employed
10 individual;
11 ‘‘(II) reports farm income or ex-
12 penses on a Schedule F (or any equiv-
13 alent successor schedule); and
14 ‘‘(III) was in business as of Feb-
15 ruary 15, 2020.’’; and
16 (2) by striking clause (iv) and inserting the fol-
17 lowing:
18 ‘‘(iv) PARTNERSHIPS WITH NO EM-
19 PLOYEES.—With respect to a partnership
20 without employees, the maximum covered
21 loan amount shall be equal to the sum of—
22 ‘‘(I) the product obtained by mul-
23 tiplying—
24 ‘‘(aa) the gross income, lim-
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25 ited to the amount attributable to
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1 general partners as determined
2 by the sum of their distributive
3 shares of gross farming income
4 from self-employment, that is not
5 more than $100,000 per partner,
6 and no more than $500,000 in
7 total, divided by 12; and
8 ‘‘(bb) 2.5; and
9 ‘‘(II) the outstanding amount of
10 a loan under subsection (b)(2) that
11 was made during the period beginning
12 on January 31, 2020 and ending on
13 April 3, 2020 that the borrower in-
14 tends to refinance under the covered
15 loan, not including any amount of any
16 advance under the loan that is not re-
17 quired to be repaid.
18 ‘‘(v) RECALCULATION.—
19 ‘‘(I) IN GENERAL.—A lender that
20 made a covered loan before the date
21 of enactment of the PPP Flexibility
22 for Farmers, Ranchers, and the Self-
23 Employed Act may, at the request of
24 the covered recipient—
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1 ‘‘(aa) recalculate the max-
2 imum loan amount applicable to
3 that covered loan based on the
4 formula described in clause (ii),
5 (iii), or (iv), as applicable, if
6 doing so would result in a larger
7 covered loan amount; and
8 ‘‘(bb) provide the covered re-
9 cipient with additional covered
10 loan amounts based on that re-
11 calculation.
12 ‘‘(II) LOAN LIMITATION.—For
13 purposes of receiving a recalculated
14 loan amount related to a covered loan
15 under subclause (I), paragraph
16 (37)(F) shall not apply.
17 ‘‘(III) EFFECT OF FORGIVE-
18 NESS.—Subject to rules issued by the
19 Administrator, a covered recipient
20 shall be eligible to submit a request
21 for a recalculated loan amount related
22 to a covered loan under subclause (I)
23 without regard to whether the covered
24 recipient has sought or received for-
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1 giveness with respect to the applicable
2 covered loan under section 7A.
3 ‘‘(IV) FORGIVENESS OF RECAL-
4 CULATED LOAN AMOUNT.—For pur-
5 poses of this subparagraph, as soon as
6 is practicable upon expenditure of ad-
7 ditional covered loan amounts pro-
8 vided under subclause (I)—
9 ‘‘(aa) an eligible recipient
10 shall attest to compliance with
11 applicable requirements under
12 this paragraph; and
13 ‘‘(bb) the additional covered
14 loan amounts shall be forgiven
15 under section 7A.
16 ‘‘(V) REIMBURSEMENT FOR
17 LOAN PROCESSING.—The Adminis-
18 trator shall reimburse a lender for
19 processing recalculation requests
20 under this clause in an amount deter-
21 mined by the Administrator.’’.
22 (b) EFFECTIVE DATE; APPLICABILITY.—The amend-
23 ments made by subsection (a) shall be effective as if in-
24 cluded in the CARES Act (Public Law 116–136) and shall
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25 apply to any loan made pursuant to section 7(a)(36) of
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1 the Small Business Act (15 U.S.C. 636(a)(36)) before, on,
2 or after the date of enactment of this Act.
Æ
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