Paycheck Protection for Producers Act

II 116TH CONGRESS 2D SESSION S. 3918 To modify the calculation of the maximum loan amount for certain farmers and ranchers under the paycheck protection program of the Small Busi- ness Administration, and for other purposes. IN THE SENATE OF THE UNITED STATES JUNE 9, 2020 Mr. THUNE (for himself and 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 calculation of the maximum loan amount for certain farmers and ranchers under the paycheck protection program of the Small Business Administra- tion, 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 ‘‘Paycheck Protection 4 for Producers Act’’. 5 VerDate Sep 11 2014 05:24 Jun 26, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S3918.IS S3918 ctelli on DSK30NT082PROD with BILLS 2 •S 3918 IS SEC. 2. CALCULATION OF MAXIMUM LOAN AMOUNT FOR 1 FARMERS AND RANCHERS UNDER THE PAY- 2 CHECK PROTECTION PROGRAM. 3 (a) IN GENERAL.—Section 7(a)(36) of the Small 4 Business Act (15 U.S.C. 636(a)(36)) is amended— 5 (1) in subparagraph (E), in the matter pre- 6 ceding clause (i), by striking ‘‘During’’ and inserting 7 ‘‘Except as provided in subparagraph (T), during’’; 8 and 9 (2) by adding at the end the following: 10 ‘‘(T) CALCULATION OF MAXIMUM LOAN 11 AMOUNT FOR FARMERS AND RANCHERS.— 12 ‘‘(i) DEFINITION.—In this subpara- 13 graph, the term ‘covered recipient’ means 14 an eligible recipient that— 15 ‘‘(I) operates as a sole propri- 16 etorship or as an independent con- 17 tractor, or is an eligible self-employed 18 individual; 19 ‘‘(II) reports farm income or ex- 20 penses on a Schedule F (or any equiv- 21 alent successor schedule); and 22 ‘‘(III) was in business during the 23 period beginning on February 15, 24 2019, and ending on June 30, 2019. 25 VerDate Sep 11 2014 05:24 Jun 26, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S3918.IS S3918 ctelli on DSK30NT082PROD with BILLS 3 •S 3918 IS ‘‘(ii) NO EMPLOYEES.—With respect 1 to covered recipient without employees, the 2 maximum covered loan amount shall be the 3 lesser of— 4 ‘‘(I) the sum of— 5 ‘‘(aa) the product obtained 6 by multiplying— 7 ‘‘(AA) the gross income 8 of the covered recipient in 9 2019, as reported on a 10 Schedule F (or any equiva- 11 lent successor schedule), 12 that is not more than 13 $100,000, divided by 12; 14 and 15 ‘‘(BB) 2.5; and 16 ‘‘(bb) the outstanding 17 amount of a loan under sub- 18 section (b)(2) that was made 19 during the period beginning on 20 January 31, 2020, and ending on 21 April 3, 2020, that the borrower 22 intends to refinance under the 23 covered loan, not including any 24 amount of any advance under the 25 VerDate Sep 11 2014 05:24 Jun 26, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S3918.IS S3918 ctelli on DSK30NT082PROD with BILLS 4 •S 3918 IS loan that is not required to be re- 1 paid; or 2 ‘‘(II) $10,000,000. 3 ‘‘(iii) WITH EMPLOYEES.—With re- 4 spect to a covered recipient with employ- 5 ees, the maximum covered loan amount 6 shall be calculated using the formula de- 7 scribed in subparagraph (E), except that 8 the gross income of the covered recipient 9 described in clause (ii)(I)(aa)(AA) of this 10 subparagraph, as divided by 12, shall be 11 added to the sum calculated under sub- 12 paragraph (E)(i)(I). 13 ‘‘(iv) RECALCULATION.—A lender that 14 made a covered loan to a covered recipient 15 before the date of enactment of this sub- 16 paragraph may, at the request of the cov- 17 ered recipient— 18 ‘‘(I) recalculate the maximum 19 loan amount applicable to that cov- 20 ered loan based on the formula de- 21 scribed in clause (ii) or (iii), as appli- 22 cable, if doing so would result in a 23 larger covered loan amount; and 24 VerDate Sep 11 2014 05:24 Jun 26, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S3918.IS S3918 ctelli on DSK30NT082PROD with BILLS 5 •S 3918 IS ‘‘(II) provide the covered recipi- 1 ent with additional covered loan 2 amounts based on that recalcula- 3 tion.’’. 4 Æ VerDate Sep 11 2014 05:24 Jun 26, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\S3918.IS S3918 ctelli on DSK30NT082PROD with BILLS