Paycheck Protection Program Second Chance Act

II 116TH CONGRESS 2D SESSION S. 3865 To provide for the treatment of certain criminal violations under the paycheck protection program, and for other purposes. IN THE SENATE OF THE UNITED STATES JUNE 2, 2020 Mr. PORTMAN (for himself, Mr. CARDIN, Mr. LANKFORD, and Mr. BOOKER) introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship A BILL To provide for the treatment of certain criminal violations under the paycheck protection 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 ‘‘Paycheck Protection 4 Program Second Chance Act’’. 5 VerDate Sep 11 2014 23:15 Jun 19, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S3865.IS S3865 pamtmann on DSKBC07HB2PROD with BILLS 2 •S 3865 IS SEC. 2. TREATMENT OF CERTAIN CRIMINAL VIOLATIONS 1 UNDER THE PAYCHECK PROTECTION PRO- 2 GRAM. 3 (a) IN GENERAL.—Section 7(a)(36) of the Small 4 Business Act (15 U.S.C. 636(a)(36)) is amended by add- 5 ing at the end the following: 6 ‘‘(T) TREATMENT OF CERTAIN CRIMINAL 7 VIOLATIONS.— 8 ‘‘(i) ARRESTS OR CONVICTIONS.—Ex- 9 cept as provided in clause (ii), an entity 10 that is a business, organization, coopera- 11 tive, or enterprise shall be an eligible re- 12 cipient notwithstanding an arrest or con- 13 viction under Federal, State, or Tribal law 14 of an owner of not less than 20 percent of 15 the equity of the entity, unless the owner 16 is incarcerated on the date on which the 17 entity applies for a covered loan. 18 ‘‘(ii) FINANCIAL FRAUD OR DECEP- 19 TION.—Notwithstanding clause (i), an en- 20 tity that is a business, organization, coop- 21 erative, or enterprise may not receive a 22 covered loan if, during the 5-year period 23 preceding the date on which the entity ap- 24 plies for a covered loan, an owner of not 25 less than 20 percent of the equity of the 26 VerDate Sep 11 2014 23:15 Jun 19, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S3865.IS S3865 pamtmann on DSKBC07HB2PROD with BILLS 3 •S 3865 IS entity has been convicted of a felony of fi- 1 nancial fraud or deception under Federal, 2 State, or Tribal law. 3 ‘‘(iii) WAIVER.—The Administrator 4 may waive the requirements under clause 5 (ii).’’. 6 (b) RULEMAKING.—Not later than 15 days after the 7 date of enactment of this Act, the Administrator of the 8 Small Business Administration shall make necessary revi- 9 sions to any rules of the Administration to carry out the 10 amendment made by subsection (a). 11 Æ VerDate Sep 11 2014 23:15 Jun 19, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\S3865.IS S3865 pamtmann on DSKBC07HB2PROD with BILLS