A bill to modify the maximum paycheck protection program loan amount for farmers and ranchers, sole proprietors, independent contractors, and self-employed individuals.

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. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. CALCULATION OF MAXIMUM PPP LOAN 3 AMOUNT. 4 (a) IN GENERAL.—Section 7(a)(36)(V) of the Small 5 Business Act (15 U.S.C. 636(a)(36)(V)) is amended— 6 (1) by striking clause (i) and inserting the fol- 7 lowing: 8 VerDate Sep 11 2014 22:00 May 13, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1232.IS S1232 kjohnson on DSK79L0C42PROD with BILLS 2 •S 1232 IS ‘‘(i) DEFINITION.—In this subpara- 1 graph, the term ‘covered recipient’ means 2 an eligible recipient that— 3 ‘‘(I)(aa) operates as a sole pro- 4 prietorship, as an independent con- 5 tractor, or as a partnership with gross 6 farming income from self-employment; 7 or 8 ‘‘(bb) is an eligible self-employed 9 individual; 10 ‘‘(II) reports farm income or ex- 11 penses on a Schedule F (or any equiv- 12 alent successor schedule); and 13 ‘‘(III) was in business as of Feb- 14 ruary 15, 2020.’’; and 15 (2) by striking clause (iv) and inserting the fol- 16 lowing: 17 ‘‘(iv) PARTNERSHIPS WITH NO EM- 18 PLOYEES.—With respect to a partnership 19 without employees, the maximum covered 20 loan amount shall be equal to the sum of— 21 ‘‘(I) the product obtained by mul- 22 tiplying— 23 ‘‘(aa) the gross income, lim- 24 ited to the amount attributable to 25 VerDate Sep 11 2014 22:00 May 13, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1232.IS S1232 kjohnson on DSK79L0C42PROD with BILLS 3 •S 1232 IS general partners as determined 1 by the sum of their distributive 2 shares of gross farming income 3 from self-employment, that is not 4 more than $100,000 per partner, 5 and no more than $500,000 in 6 total, divided by 12; and 7 ‘‘(bb) 2.5; and 8 ‘‘(II) the outstanding amount of 9 a loan under subsection (b)(2) that 10 was made during the period beginning 11 on January 31, 2020 and ending on 12 April 3, 2020 that the borrower in- 13 tends to refinance under the covered 14 loan, not including any amount of any 15 advance under the loan that is not re- 16 quired to be repaid. 17 ‘‘(v) RECALCULATION.— 18 ‘‘(I) IN GENERAL.—A lender that 19 made a covered loan before the date 20 of enactment of the PPP Flexibility 21 for Farmers, Ranchers, and the Self- 22 Employed Act may, at the request of 23 the covered recipient— 24 VerDate Sep 11 2014 22:00 May 13, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1232.IS S1232 kjohnson on DSK79L0C42PROD with BILLS 4 •S 1232 IS ‘‘(aa) recalculate the max- 1 imum loan amount applicable to 2 that covered loan based on the 3 formula described in clause (ii), 4 (iii), or (iv), as applicable, if 5 doing so would result in a larger 6 covered loan amount; and 7 ‘‘(bb) provide the covered re- 8 cipient with additional covered 9 loan amounts based on that re- 10 calculation. 11 ‘‘(II) LOAN LIMITATION.—For 12 purposes of receiving a recalculated 13 loan amount related to a covered loan 14 under subclause (I), paragraph 15 (37)(F) shall not apply. 16 ‘‘(III) EFFECT OF FORGIVE- 17 NESS.—Subject to rules issued by the 18 Administrator, a covered recipient 19 shall be eligible to submit a request 20 for a recalculated loan amount related 21 to a covered loan under subclause (I) 22 without regard to whether the covered 23 recipient has sought or received for- 24 VerDate Sep 11 2014 22:00 May 13, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S1232.IS S1232 kjohnson on DSK79L0C42PROD with BILLS 5 •S 1232 IS giveness with respect to the applicable 1 covered loan under section 7A. 2 ‘‘(IV) FORGIVENESS OF RECAL- 3 CULATED LOAN AMOUNT.—For pur- 4 poses of this subparagraph, as soon as 5 is practicable upon expenditure of ad- 6 ditional covered loan amounts pro- 7 vided under subclause (I)— 8 ‘‘(aa) an eligible recipient 9 shall attest to compliance with 10 applicable requirements under 11 this paragraph; and 12 ‘‘(bb) the additional covered 13 loan amounts shall be forgiven 14 under section 7A. 15 ‘‘(V) REIMBURSEMENT FOR 16 LOAN PROCESSING.—The Adminis- 17 trator shall reimburse a lender for 18 processing recalculation requests 19 under this clause in an amount deter- 20 mined by the Administrator.’’. 21 (b) EFFECTIVE DATE; APPLICABILITY.—The amend- 22 ments made by subsection (a) shall be effective as if in- 23 cluded in the CARES Act (Public Law 116–136) and shall 24 apply to any loan made pursuant to section 7(a)(36) of 25 VerDate Sep 11 2014 22:00 May 13, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S1232.IS S1232 kjohnson on DSK79L0C42PROD with BILLS 6 •S 1232 IS the Small Business Act (15 U.S.C. 636(a)(36)) before, on, 1 or after the date of enactment of this Act. 2 Æ VerDate Sep 11 2014 22:00 May 13, 2021 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6301 E:\BILLS\S1232.IS S1232 kjohnson on DSK79L0C42PROD with BILLS