Congressional Record, Volume 167, Number 55 (Wednesday, March 24, 2021) — Senate, Page S1778

Summary

Senate page S1778 of the Congressional Record for Wednesday, March 24, 2021 prints amendment SA 1408, submitted by Murkowski to the bill extending the paycheck protection program covered period, and ordered to lie on the table. It would raise PPP and second draw loan limits for businesses that experienced extreme hardship by substituting 3.5 for 2.5 in the maximum loan calculation. Extreme hardship generally means gross receipts in a 2020 quarter showing not less than a 75 percent reduction from the same quarter in 2019, with alternative comparisons for newer businesses. It would also let second draw borrowers choose a forgiveness covered period ending between 8 and 52 weeks after origination.

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[Congressional Record Volume 167, Number 55 (Wednesday, March 24, 2021)]
[Senate]
[Page S1778]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 1408. Ms. MURKOWSKI submitted an amendment intended to be proposed
by her to the bill H.R. 1799, to amend the Small Business Act and the
CARES Act to extend the covered period for the paycheck protection
program, and for other purposes; which was ordered to lie on the table;
as follows:

       At the appropriate place, insert the following:

     SEC. __. PPP AND SECOND DRAW LOANS FOR BUSINESSES THAT
                   EXPERIENCED EXTREME HARDSHIP.

       (a) PPP.--Section 7(a)(36) of the Small Business Act (15
     U.S.C. 636(a)(36)) is amended--
       (1) in subparagraph (E), in the matter preceding clause
     (i), by striking ``subparagraph (V)'' and inserting
     ``subparagraphs (V) and (W)''; and
       (2) by adding at the end the following:
       ``(W) Calculation of maximum loan amount for businesses
     that experienced extreme hardship.--
       ``(i) Definition.--In this subparagraph, the term `extreme
     hardship' means, with respect to an eligible recipient
     applying for assistance under this paragraph--

       ``(I) except as provided in subclauses (II), (III), and
     (IV), that the eligible recipient had gross receipts during
     the first, second, third, or, only with respect to an
     application submitted on or after January 1, 2021, fourth
     quarter in 2020 that demonstrate not less than a 75 percent
     reduction from the gross receipts of the eligible recipient
     during the same quarter in 2019;
       ``(II) if the eligible recipient was not in business during
     the first or second quarter of 2019, but was in business
     during the third and fourth quarter of 2019, that the
     eligible recipient had gross receipts during the first,
     second, third, or, only with respect to an application
     submitted on or after January 1, 2021, fourth quarter of 2020
     that demonstrate not less than a 75 percent reduction from
     the gross receipts of the eligible recipient during the third
     or fourth quarter of 2019;
       ``(III) if the eligible recipient was not in business
     during the first, second, or third quarter of 2019, but was
     in business during the fourth quarter of 2019, that the
     eligible recipient had gross receipts during the first,
     second, third, or, only with respect to an application
     submitted on or after January 1, 2021, fourth quarter of 2020
     that demonstrate not less than a 75 percent reduction from
     the gross receipts of the eligible recipient during the
     fourth quarter of 2019; or
       ``(IV) if the eligible recipient was not in business during
     2019, but was in operation on February 15, 2020, that the
     eligible recipient had gross receipts during the second,
     third, or, only with respect to an application submitted on
     or after January 1, 2021, fourth quarter of 2020 that
     demonstrate not less than a 75 percent reduction from the
     gross receipts of the eligible recipient during the first
     quarter of 2020.

       ``(ii) Maximum loan amount.--In calculating the maximum
     covered loan amount under subparagraph (E) with respect to an
     eligible recipient that experienced extreme hardship,
     subclauses (I)(aa)(BB) and (II)(aa)(BB), as applicable, of
     subparagraph (E)(i) shall be applied by substituting `3.5'
     for `2.5'.''.
       (b) Second Draw.--Section 7(a)(37) of the Small Business
     Act (15 U.S.C. 636(a)(37)) is amended--
       (1) in subparagraph (A)(i), by inserting `` `extreme
     hardship,' '' after `` `eligible self-employed individual,'
     ''; and
       (2) in subparagraph (C), by adding at the end the
     following:
       ``(v) Extreme hardship.--In calculating the maximum loan
     amount under clause (i), (ii), or (iii) with respect to an
     eligible entity that experienced extreme hardship, clause
     (i)(I)(bb), (ii)(I)(bb), and (iii)(I)(bb), as applicable,
     shall be applied by substituting `3.5' for `2.5'.''.
       (c) Covered Period for Loan Forgiveness for Second Draw
     Loans.--Section 7(a)(37)(J)(i) of the Small Business Act (15
     U.S.C. 636(a)(37)(J)(i)) is amended to read as follows:
       ``(i) Definition of covered period.--In this subparagraph,
     the term `covered period' means the period--

       ``(I) beginning on the date of the origination of a covered
     loan; and
       ``(II) ending on a date selected by the eligible recipient
     of the covered loan that occurs during the period--

       ``(aa) beginning on the date that is 8 weeks after such
     date of origination; and
       ``(bb) ending on the date that is 52 weeks after such date
     of origination.''.
       (d) Applicability.--The amendments made by this section
     shall apply--
       (1) for the amendments made by subsections (a) and (b),
     with respect to an applicant for a loan under paragraph (36)
     or (37) of section 7(a) of the Small Business Act (15 U.S.C.
     636(a)(37)) before, on, or after the date of enactment of
     this Act; and
       (2) for the amendment made by subsection (c), with respect
     to an applicant for loan forgiveness under section
     7(a)(37)(J) of that Act (15 U.S.C. 636(a)(37)(J)) that has
     not yet received the loan forgiveness.

                          ____________________

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