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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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Issuer
Congressional materials
Document type
Bills Bills 117S1232Is Bills 117S1232Is
Case
Bills Bills 117S1232Is Bills 117S1232Is

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“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/, SHA-256 84860f902fe5eb439426664fd2998da8e6e4c2b50c9653d43d631df963120c15.

Full text

                                                                                                                                                                              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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                                                                         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


                                                                                   •S 1232 IS

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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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