S. 5026 (117th Congress) — Alternative covered period for loan forgiveness under the Paycheck Protection Program
Summary
Senate bill 5026, whose short title is the Low-Revenue Recipient Paycheck Protection Program Relief Act of 2022, is a bill to permit certain businesses to select an alternative covered period for loan forgiveness under the Paycheck Protection Program and provide certain businesses additional loan forgiveness. Gillibrand introduced it on September 29, 2022, and it was read twice and referred to the Committee on Small Business and Entrepreneurship. It adds subsection (m) to section 7A of the Small Business Act. A low-revenue recipient is an eligible recipient that received a covered loan not later than December 1, 2020, and was not in operation from April 1, 2020, to December 31, 2020, or had gross receipts of not more than 20 percent of the gross receipts during the corresponding period in 2019.
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“S. 5026 (117th Congress) — Alternative covered period for loan forgiveness under the Paycheck Protection Program.”
Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/bills-bills-117s5026is-bills-117s5026is/
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II
117TH CONGRESS
2D SESSION
S. 5026
To permit certain businesses to select an alternative covered period for loan
forgiveness under the Paycheck Protection Program and provide certain
businesses additional loan forgiveness, and for other purposes.
IN THE SENATE OF THE UNITED STATES
SEPTEMBER 29, 2022
Mrs. GILLIBRAND introduced the following bill; which was read twice and
referred to the Committee on Small Business and Entrepreneurship
A BILL
To permit certain businesses to select an alternative covered
period for loan forgiveness under the Paycheck Protec-
tion Program and provide certain businesses additional
loan forgiveness, 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 ‘‘Low-Revenue Recipi-
5 ent Paycheck Protection Program Relief Act of 2022’’.
6 SEC. 2. LOW-REVENUE RECIPIENT LOAN FORGIVENESS.
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7 (a) IN GENERAL.—Section 7A of the Small Business
8 Act (15 U.S.C. 636m) is amended—
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1 (1) in subsection (i)—
2 (A) in paragraph (1), by inserting ‘‘or
3 (m)(2)’’ after ‘‘subsection (b)’’; and
4 (B) in paragraph (3)(B), by inserting ‘‘or
5 (m)(2)’’ after ‘‘subsection (b)’’; and
6 (2) by adding at the end the following:
7 ‘‘(m) LOW-REVENUE RECIPIENTS LOAN FORGIVE-
8 NESS.—
9 ‘‘(1) IN GENERAL.—With respect to a covered
10 loan received by a low-revenue recipient not later
11 than December 1, 2020, and for which the low-rev-
12 enue recipient has received no loan forgiveness under
13 this section, at the election of the low-revenue recipi-
14 ent, the term ‘covered period’ shall, for the purposes
15 of this section, mean the period—
16 ‘‘(A) beginning on the earlier of—
17 ‘‘(i) the date selected by the low-rev-
18 enue recipient; or
19 ‘‘(ii) September 1, 2021; and
20 ‘‘(B) ending on a date selected by the eligi-
21 ble recipient of the covered loan that occurs
22 during the period—
23 ‘‘(i) beginning on the date that is 8
24 weeks after the start date of the covered
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25 period specified in subparagraph (A); and
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1 ‘‘(ii) ending on the date that is 24
2 weeks after the start date of the covered
3 period specified in subparagraph (A).
4 ‘‘(2) ADDITIONAL LOAN FORGIVENESS.—
5 ‘‘(A) IN GENERAL.—A low-revenue recipi-
6 ent that received loan forgiveness under this
7 section for a covered loan received not later
8 than December 1, 2020, shall be eligible for ad-
9 ditional forgiveness of indebtedness on the cov-
10 ered loan in accordance with this paragraph.
11 ‘‘(B) ADDITIONAL FORGIVENESS CALCULA-
12 TION.—The amount of forgiveness of indebted-
13 ness on a covered loan for which a low-revenue
14 recipient is eligible under this paragraph is the
15 amount equal to the difference between—
16 ‘‘(i) the amount of forgiveness of in-
17 debtedness on the covered loan that the
18 low-revenue recipient would be eligible for
19 under this section, as in effect on the date
20 on which the low-revenue recipient applies
21 for loan forgiveness under this paragraph,
22 if—
23 ‘‘(I) the low-revenue recipient
24 had not received any loan forgiveness
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1 for the covered loan under this sec-
2 tion;
3 ‘‘(II) for the purposes of this sec-
4 tion, the term ‘covered period’ meant
5 the period described in paragraph (1);
6 and
7 ‘‘(III) for the purposes of para-
8 graphs (5) and (7) of subsection (d),
9 the covered loan was made on or after
10 the date of enactment of the Eco-
11 nomic Aid to Hard-Hit Small Busi-
12 nesses, Nonprofits, and Venues Act
13 (Public Law 116–260; 134 Stat.
14 1993); and
15 ‘‘(ii) the amount of loan forgiveness
16 for the covered loan that the low-revenue
17 recipient received under this section.
18 ‘‘(C) EXCESS PAYMENT REFUND.—If the
19 Administrator, pursuant to loan forgiveness
20 under this paragraph and in accordance with
21 subsection (c)(3), makes a remittance to a lend-
22 er in an amount exceeding the total outstanding
23 balance of the applicable covered loan, including
24 any accrued interest, the lender shall pay to the
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1 low-revenue recipient an amount equal to that
2 excess.
3 ‘‘(D) ADDITIONAL FORGIVENESS LIMIT.—
4 No low-revenue recipient may receive loan for-
5 giveness under this paragraph more than once.
6 ‘‘(3) LOW-REVENUE RECIPIENT DEFINED.—In
7 this subsection, the term ‘low-revenue recipient’
8 means an eligible recipient that received a covered
9 loan not later than December 1, 2020, and—
10 ‘‘(A) was not in operation during the pe-
11 riod beginning on April 1, 2020, and ending on
12 December 31, 2020; or
13 ‘‘(B) during the period described in sub-
14 paragraph (A), had gross receipts of not more
15 than 20 percent of the gross receipts of the eli-
16 gible recipient during the corresponding period
17 in 2019.’’.
18 (b) REGULATIONS.—Not later than 14 days after the
19 date of enactment of this Act, the Administrator of the
20 Small Business Administration shall issue regulations car-
21 rying out subsection (m) of section 7A of the Small Busi-
22 ness Act (15 U.S.C. 636m), as added by subsection (a).
Æ
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