Seasonal Business PPP Parity Act

II 117TH CONGRESS 1ST SESSION S. 1140 To amend the Small Business Act to alter the maximum amount of a second draw loan under the Paycheck Protection Program, and for other purposes. IN THE SENATE OF THE UNITED STATES APRIL 15, 2021 Mr. KING (for himself and Ms. COLLINS) introduced the following bill; which was read twice and referred to the Committee on Small Business and En- trepreneurship A BILL To amend the Small Business Act to alter the maximum amount of a second draw loan under the Paycheck Pro- tection Program, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Seasonal Business 4 PPP Parity Act’’. 5 SEC. 2. MAXIMUM AMOUNT OF SECOND DRAW LOAN. 6 (a) IN GENERAL.—Section 7(a)(37) of the Small 7 Business Act (15 U.S.C. 636(a)(37)) is amended by strik- 8 ing subparagraph (C) and inserting the following: 9 VerDate Sep 11 2014 00:39 Apr 29, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1140.IS S1140 pbinns on DSKJLVW7X2PROD with BILLS 2 •S 1140 IS ‘‘(C) MAXIMUM LOAN AMOUNT.— 1 ‘‘(i) IN GENERAL.—Except as other- 2 wise provided in this subparagraph, the 3 maximum amount of a covered loan made 4 to an eligible entity is the sum of— 5 ‘‘(I) the lesser of— 6 ‘‘(aa) the product obtained 7 by multiplying— 8 ‘‘(AA) at the election of 9 the eligible entity, the aver- 10 age total monthly payment 11 for payroll costs incurred or 12 paid by the eligible entity 13 during the 1-year period be- 14 fore the date on which the 15 loan is made or calendar 16 year 2019; by 17 ‘‘(BB) 2.5; or 18 ‘‘(bb) $2,000,000; plus 19 ‘‘(II) with respect to a loan re- 20 ceived under paragraph (36) for which 21 the eligible entity received forgiveness 22 under section 1106 of the CARES Act 23 (as in effect before the date of enact- 24 ment of this paragraph), the amount 25 VerDate Sep 11 2014 00:39 Apr 29, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1140.IS S1140 pbinns on DSKJLVW7X2PROD with BILLS 3 •S 1140 IS of an increase with respect to that 1 loan that the eligible entity would 2 have been eligible to receive under sec- 3 tion 312 of the Economic Aid to 4 Hard-Hit Small Businesses, Non- 5 profits, and Venues Act (title III of 6 division N of Public Law 116–260) if 7 the eligible entity had not received 8 such forgiveness. 9 ‘‘(ii) SEASONAL EMPLOYERS.—The 10 maximum amount of a covered loan made 11 to an eligible entity that is a seasonal em- 12 ployer is the sum of— 13 ‘‘(I) the lesser of— 14 ‘‘(aa) the product obtained 15 by multiplying— 16 ‘‘(AA) at the election of 17 the eligible entity, the aver- 18 age total monthly payments 19 for payroll costs incurred or 20 paid by the eligible entity 21 for any 12-week period be- 22 tween February 15, 2019 23 and February 15, 2020; by 24 ‘‘(BB) 2.5; or 25 VerDate Sep 11 2014 00:39 Apr 29, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1140.IS S1140 pbinns on DSKJLVW7X2PROD with BILLS 4 •S 1140 IS ‘‘(bb) $2,000,000; plus 1 ‘‘(II) with respect to a loan re- 2 ceived under paragraph (36) for which 3 the seasonal employer received for- 4 giveness under section 1106 of the 5 CARES Act (as in effect before the 6 date of enactment of this paragraph), 7 the amount of an increase with re- 8 spect to that loan that the seasonal 9 employer would have been eligible to 10 receive under section 312 of the Eco- 11 nomic Aid to Hard-Hit Small Busi- 12 nesses, Nonprofits, and Venues Act 13 (title III of division N of Public Law 14 116–260) if the seasonal employer 15 had not received such forgiveness. 16 ‘‘(iii) NEW ENTITIES.—The maximum 17 amount of a covered loan made to an eligi- 18 ble entity that did not exist during the 1- 19 year period preceding February 15, 2020 20 is the sum of— 21 ‘‘(I) the lesser of— 22 ‘‘(aa) the product obtained 23 by multiplying— 24 VerDate Sep 11 2014 00:39 Apr 29, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S1140.IS S1140 pbinns on DSKJLVW7X2PROD with BILLS 5 •S 1140 IS ‘‘(AA) the quotient ob- 1 tained by dividing the sum 2 of the total monthly pay- 3 ments by the eligible entity 4 for payroll costs paid or in- 5 curred by the eligible entity 6 as of the date on which the 7 eligible entity applies for the 8 covered loan by the number 9 of months in which those 10 payroll costs were paid or 11 incurred; by 12 ‘‘(BB) 2.5; or 13 ‘‘(bb) $2,000,000; plus 14 ‘‘(II) with respect to a loan re- 15 ceived under paragraph (36) for which 16 the eligible entity received forgiveness 17 under section 1106 of the CARES Act 18 (as in effect before the date of enact- 19 ment of this paragraph), the amount 20 of an increase with respect to that 21 loan that the eligible entity would 22 have been eligible to receive under sec- 23 tion 312 of the Economic Aid to 24 Hard-Hit Small Businesses, Non- 25 VerDate Sep 11 2014 00:39 Apr 29, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S1140.IS S1140 pbinns on DSKJLVW7X2PROD with BILLS 6 •S 1140 IS profits, and Venues Act (title III of 1 division N of Public Law 116–260) if 2 the eligible entity had not received 3 such forgiveness. 4 ‘‘(iv) NAICS 72 ENTITIES.—The max- 5 imum amount of a covered loan made to 6 an eligible entity that is assigned a North 7 American Industry Classification System 8 code beginning with 72 at the time of dis- 9 bursal is the sum of— 10 ‘‘(I) the lesser of— 11 ‘‘(aa) the product obtained 12 by multiplying— 13 ‘‘(AA) at the election of 14 the eligible entity, the aver- 15 age total monthly payment 16 for payroll costs incurred or 17 paid by the eligible entity 18 during the 1-year period be- 19 fore the date on which the 20 loan is made or calendar 21 year 2019; by 22 ‘‘(BB) 3.5; or 23 ‘‘(bb) $2,000,000; plus 24 VerDate Sep 11 2014 00:39 Apr 29, 2021 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S1140.IS S1140 pbinns on DSKJLVW7X2PROD with BILLS 7 •S 1140 IS ‘‘(II) with respect to a loan re- 1 ceived under paragraph (36) for which 2 the eligible entity received forgiveness 3 under section 1106 of the CARES Act 4 (as in effect before the date of enact- 5 ment of this paragraph), the amount 6 of an increase with respect to that 7 loan that the eligible entity would 8 have been eligible to receive under sec- 9 tion 312 of the Economic Aid to 10 Hard-Hit Small Businesses, Non- 11 profits, and Venues Act (title III of 12 division N of Public Law 116–260) if 13 the eligible entity had not received 14 such forgiveness.’’. 15 (b) EFFECTIVE DATE; APPLICABILITY.—The amend- 16 ments made by subsection (a) shall be effective as if in- 17 cluded in the Economic Aid to Hard-Hit Small Busi- 18 nesses, Nonprofits, and Venues Act (title III of division 19 N of Public Law 116–260) and shall apply to any loan 20 made pursuant to section 7(a)(37) of the Small Business 21 Act (15 U.S.C. 636(a)(37)) before, on, or after the date 22 of enactment of this Act. 23 Æ VerDate Sep 11 2014 00:39 Apr 29, 2021 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6301 E:\BILLS\S1140.IS S1140 pbinns on DSKJLVW7X2PROD with BILLS