P4 Act

I 116TH CONGRESS 2D SESSION H. R. 7241 To provide for supplemental loans under the Paycheck Protection Program. IN THE HOUSE OF REPRESENTATIVES JUNE 18, 2020 Ms. CRAIG (for herself and Mr. DELGADO) introduced the following bill; which was referred to the Committee on Small Business A BILL To provide for supplemental loans under the Paycheck Protection Program. 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 ‘‘Prioritized Paycheck 4 Protection Program Act’’ or the ‘‘P4 Act’’. 5 SEC. 2. PAYCHECK PROTECTION PROGRAM IMPROVE- 6 MENTS. 7 (a) EXTENSION FOR CERTAIN BUSINESS CON- 8 CERNS.—Section 7(a)(36)(B) of the Small Business Act 9 (15 U.S.C. 636(a)(36)(B)) is amended— 10 VerDate Sep 11 2014 05:34 Jul 09, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H7241.IH H7241 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 7241 IH (1) by striking ‘‘Except’’ and inserting the fol- 1 lowing: 2 ‘‘(i) IN GENERAL.—Except’’; and 3 (2) by adding at the end the following: 4 ‘‘(ii) SUPPLEMENTAL PPP LOANS.— 5 ‘‘(I) DEFINITIONS.—In this 6 clause— 7 ‘‘(aa) the terms ‘exchange’, 8 ‘issuer’, and ‘security’ have the 9 meanings given such terms in 10 section 3(a) of the Securities Ex- 11 change Act of 1934 (15 U.S.C. 12 78c(a)); 13 ‘‘(bb) the term ‘gross re- 14 ceipts’ means gross receipts with- 15 in the meaning of section 448(c) 16 of the Internal Revenue Code of 17 1986; 18 ‘‘(cc) the term ‘national se- 19 curities exchange’ means an ex- 20 change registered as a national 21 securities exchange under section 22 6 of the Securities Exchange Act 23 of 1934 (15 U.S.C. 78f); 24 VerDate Sep 11 2014 05:34 Jul 09, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H7241.IH H7241 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 7241 IH ‘‘(dd) the term ‘publicly 1 traded entity’ means an issuer, 2 the securities of which are listed 3 on a national securities exchange; 4 ‘‘(ee) the term ‘smaller con- 5 cern’ means an eligible recipient 6 that— 7 ‘‘(AA) has not more 8 than 100 employees; 9 ‘‘(BB) operates under a 10 sole proprietorship or as an 11 independent contractor; or 12 ‘‘(CC) is an eligible 13 self-employed individual; and 14 ‘‘(ff) the term ‘significant 15 loss in revenue’ means that, due 16 to the impact of COVID–19— 17 ‘‘(AA) the gross re- 18 ceipts of the eligible recipi- 19 ent during the first or sec- 20 ond calendar quarter of 21 2020 are less than 50 per- 22 cent of the gross receipts of 23 the eligible recipient during 24 VerDate Sep 11 2014 05:34 Jul 09, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H7241.IH H7241 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 7241 IH the same calendar quarter in 1 2019; 2 ‘‘(BB) if the eligible re- 3 cipient was not in business 4 on April 1, 2019, the gross 5 receipts of the eligible recipi- 6 ent during any 2-month pe- 7 riod during the first 2 cal- 8 endar quarters of 2020 are 9 less than 50 percent of the 10 amount of the gross receipts 11 of the eligible recipient dur- 12 ing any prior 2-month pe- 13 riod during the first 2 cal- 14 endar quarters of 2020; or 15 ‘‘(CC) if the eligible re- 16 cipient is a seasonal em- 17 ployer, as determined by the 18 Administrator, the gross re- 19 ceipts of the eligible recipi- 20 ent during any 2-month pe- 21 riod during the first 2 cal- 22 endar quarters of 2020 are 23 less than 50 percent of the 24 amount of the gross receipts 25 VerDate Sep 11 2014 05:34 Jul 09, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H7241.IH H7241 kjohnson on DSK79L0C42PROD with BILLS 5 •HR 7241 IH of the eligible recipient dur- 1 ing the same 2-month period 2 in 2019. 3 ‘‘(II) AUTHORITY.—Except as 4 otherwise provided in this clause, for 5 an eligible recipient that has received 6 a covered loan under clause (i), the 7 Administrator may guarantee a single 8 supplemental covered loan to the eligi- 9 ble recipient under the same terms, 10 conditions, and processes as a covered 11 loan made under clause (i). 12 ‘‘(III) APPLICATION DEAD- 13 LINE.—An eligible recipient shall sub- 14 mit an application for a supplemental 15 covered loan under this clause not 16 later than October 1, 2020, or such 17 later date as the Administrator deter- 18 mines appropriate. 19 ‘‘(IV) CHOICE OF LENDER.—An 20 eligible recipient may apply for a sup- 21 plemental covered loan under this 22 clause with the lender that made the 23 covered loan under clause (i) to the el- 24 igible recipient or another lender. 25 VerDate Sep 11 2014 05:34 Jul 09, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H7241.IH H7241 kjohnson on DSK79L0C42PROD with BILLS 6 •HR 7241 IH ‘‘(V) ELIGIBILITY.— 1 ‘‘(aa) IN GENERAL.—A sup- 2 plemental covered loan under this 3 clause— 4 ‘‘(AA) may be made to 5 an eligible recipient that is a 6 smaller concern, has had a 7 significant loss in revenue, 8 and has used, or is expend- 9 ing funds at a rate that the 10 eligible recipient will use on 11 or before the expected date 12 of the disbursement of the 13 supplemental covered loan 14 under this clause, the full 15 amount of the covered loan 16 received under clause (i); 17 and 18 ‘‘(BB) may not be 19 made to a publicly traded 20 entity. 21 ‘‘(bb) BUSINESS CONCERNS 22 WITH MORE THAN 1 PHYSICAL 23 LOCATION.— 24 VerDate Sep 11 2014 05:34 Jul 09, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H7241.IH H7241 kjohnson on DSK79L0C42PROD with BILLS 7 •HR 7241 IH ‘‘(AA) IN GENERAL.— 1 For purposes of a supple- 2 mental covered loan under 3 this clause, subparagraph 4 (D)(iii) shall be applied by 5 substituting ‘not more than 6 100 employees per physical 7 location’ for ‘not more than 8 500 employees per physical 9 location’. 10 ‘‘(BB) LIMIT FOR MUL- 11 TIPLE LOCATIONS.—For an 12 eligible recipient with more 13 than 1 physical location, the 14 total amount of all supple- 15 mental covered loans under 16 this clause to the eligible re- 17 cipient shall not be more 18 than $2,000,000. 19 ‘‘(VI) MAXIMUM AMOUNT FOR 20 SUPPLEMENTAL PPP.—The maximum 21 amount of a supplemental covered 22 loan under this clause is the lesser 23 of— 24 VerDate Sep 11 2014 05:34 Jul 09, 2020 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H7241.IH H7241 kjohnson on DSK79L0C42PROD with BILLS 8 •HR 7241 IH ‘‘(aa) the product obtained 1 by multiplying— 2 ‘‘(AA) the average total 3 monthly payments for pay- 4 roll costs by the eligible re- 5 cipient used to determine 6 the maximum amount of the 7 covered loan under clause (i) 8 made to the eligible recipient 9 under this paragraph; by 10 ‘‘(BB) 2.5; or 11 ‘‘(bb) $2,000,000. 12 ‘‘(VII) EXCEPTION FROM CER- 13 TAIN CERTIFICATION REQUIRE- 14 MENTS.—An eligible recipient apply- 15 ing for a supplemental covered loan 16 under this clause shall not be required 17 to make the certification described in 18 subclauses (III) or (IV) of subpara- 19 graph (G)(i). 20 ‘‘(VIII) REIMBURSEMENT FOR 21 PROCESSING SUPPLEMENTAL PPP.— 22 For a supplemental covered loan 23 under this clause of not more than 24 $50,000, the reimbursement under 25 VerDate Sep 11 2014 05:34 Jul 09, 2020 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H7241.IH H7241 kjohnson on DSK79L0C42PROD with BILLS 9 •HR 7241 IH subparagraph (P)(I) by the Adminis- 1 trator shall not be less than $2,500. 2 ‘‘(iii) PRIORITY FOR SMALLEST RE- 3 CIPIENTS.— 4 ‘‘(I) APPLICATION PROC- 5 ESSING.—In processing applications 6 to guarantee covered loans, the Ad- 7 ministrator shall, taking into account 8 the sense of the Senate on giving pri- 9 ority to underserved and rural bor- 10 rowers under subparagraph (P)(iv), 11 prioritize the processing of applica- 12 tions to guarantee covered loans 13 under clause (i) or (ii) to eligible re- 14 cipients that have not more than 10 15 employees. 16 ‘‘(II) FUNDING PRIORITY.—The 17 Administrator shall ensure that— 18 ‘‘(aa) of the unobligated bal- 19 ances available for covered loans 20 on the date of enactment of the 21 Prioritized Paycheck Protection 22 Program Act, not less than the 23 lesser of 20 percent of such un- 24 obligated balances or 25 VerDate Sep 11 2014 05:34 Jul 09, 2020 Jkt 099200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H7241.IH H7241 kjohnson on DSK79L0C42PROD with BILLS 10 •HR 7241 IH $25,000,000,000 is used for 1 guaranteeing covered loans under 2 clause (i) or (ii) to eligible recipi- 3 ents that have not more than 10 4 employees; and 5 ‘‘(bb) to the extent addi- 6 tional amounts are made avail- 7 able for covered loans after the 8 date of enactment of the 9 Prioritized Paycheck Protection 10 Program Act, not less than the 11 lesser of 20 percent of the sum of 12 the unobligated balances de- 13 scribed in subitem (AA) and such 14 additional amounts or 15 $25,000,000,000 is used for 16 guaranteeing covered loans under 17 clause (i) or (ii) to eligible recipi- 18 ents that have not more than 10 19 employees.’’. 20 (b) COVERED PERIODS.— 21 (1) AUTHORITY TO EXTEND PERIOD FOR MAK- 22 ING PPP AND P4 LOANS.—Section 7(a)(36)(A)(iii) of 23 the Small Business Act (15 U.S.C. 24 636(a)(36)(A)(iii)) is amended by inserting ‘‘, or 25 VerDate Sep 11 2014 05:34 Jul 09, 2020 Jkt 099200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H7241.IH H7241 kjohnson on DSK79L0C42PROD with BILLS 11 •HR 7241 IH such later date as the Administrator determines ap- 1 propriate’’ after ‘‘December 31, 2020’’. 2 (2) PERIOD FOR COSTS THAT ARE ELIGIBLE 3 FOR FORGIVENESS AND APPLICATION SUBMIS- 4 SION.—Section 1106 of the CARES Act (Public 5 Law 116–136) is amended— 6 (A) in subsection (a), by striking para- 7 graph (3) and inserting the following: 8 ‘‘(3) the term ‘covered period’ means the pe- 9 riod— 10 ‘‘(A) beginning on the date of the origina- 11 tion of a covered loan; and 12 ‘‘(B) ending on a date selected by the eligi- 13 ble recipient of the covered loan that occurs 14 during the period— 15 ‘‘(i) beginning on the date that is 8 16 weeks after such date of origination; and 17 ‘‘(ii) ending on December 31, 2020, or 18 such later date as the Administrator deter- 19 mines appropriate.’’; 20 (B) in subsection (d), by inserting ‘‘, or 21 such later date as the Administrator determines 22 appropriate’’ after ‘‘December 31, 2020’’ each 23 place it appears; 24 VerDate Sep 11 2014 05:34 Jul 09, 2020 Jkt 099200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H7241.IH H7241 kjohnson on DSK79L0C42PROD with BILLS 12 •HR 7241 IH (C) in subsection (e), in the matter pre- 1 ceding paragraph (1), by striking ‘‘An eligible 2 recipient’’ and inserting ‘‘After the end of the 3 covered period with respect to an eligible recipi- 4 ent, the eligible recipient’’; and 5 (D) by striking subsection (l). 6 (3) APPLICABILITY OF AMENDMENTS.—The 7 amendments made by paragraph (2) shall apply to 8 a loan made under paragraph (36) of section 7(a) of 9 the Small Business Act (15 U.S.C. 636(a)) before, 10 on, or after the date of enactment of this Act. 11 (c) IMPLEMENTATION OF INSPECTOR GENERAL SUG- 12 GESTED ACTIONS FOR PPP OVERSIGHT.—Not later than 13 5 days after the date of enactment of this Act, the Admin- 14 istrator of the Small Business Administration shall— 15 (1) issue guidance to prioritize underserved 16 businesses, as described in the sense of the Senate 17 provision under subparagraph (P)(iv) of section 18 7(a)(36) of the Small Business Act (15 U.S.C. 19 636(a)(36)); 20 (2) issue an updated loan origin application for 21 initial covered loans under such section and issue an 22 origin application for supplemental covered loans 23 under such section that collects demographic data to 24 provide transparency for lending to underserved and 25 VerDate Sep 11 2014 05:34 Jul 09, 2020 Jkt 099200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H7241.IH H7241 kjohnson on DSK79L0C42PROD with BILLS 13 •HR 7241 IH rural markets, as required under subparagraph (P) 1 of such section; 2 (3) implement the loan registration required 3 under such section; and 4 (4) consistent with information that the Admin- 5 istrator makes available on loans made by the Ad- 6 ministration in compliance with section 552 of title 7 5, United States Code (commonly known as the 8 ‘‘Freedom of Information Act’’), begin publishing on 9 the website of the Administration information about 10 the paycheck protection program under section 11 7(a)(36) of the Small Business Act (15 U.S.C. 12 636(a)(36)), including initial covered loans and sup- 13 plemental covered loans, including— 14 (A) the name of each business or nonprofit 15 organization borrower; 16 (B) the address of the principal place of 17 business of each borrower; 18 (C) the name and address of the principal 19 place of business of each lender; 20 (D) the amount of each loan; 21 (E) the North American Industry Classi- 22 fication System code of each borrower; 23 (F) whether each borrower is a franchisee; 24 and 25 VerDate Sep 11 2014 05:34 Jul 09, 2020 Jkt 099200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\H7241.IH H7241 kjohnson on DSK79L0C42PROD with BILLS 14 •HR 7241 IH (G) the type of business of each borrower. 1 (d) FORGIVENESS COMPENSATION FEES.—Section 2 7(a)(36)(P) of the Small Business Act (15 U.S.C. 3 636(a)(36)(P)) is amended by adding at the end the fol- 4 lowing: 5 ‘‘(v) FORGIVENESS APPLICATION AS- 6 SISTANCE.—With respect to initial covered 7 loans and supplemental covered loans, the 8 Administrator may reimburse an agent 9 that assists an eligible recipient in pre- 10 paring an application for and documenta- 11 tion required to obtain forgiveness under 12 section 1106 of the Cares Act (Public Law 13 116–136), in an amount not to exceed 14 $500.’’. 15 (e) AMOUNT AUTHORIZED FOR COMMITMENTS.— 16 Section 1102(b) of the CARES Act (Public Law 116–136) 17 is amended to read as follows: 18 ‘‘(b) COMMITMENTS FOR PPP AND OTHER 7(a) 19 LOANS.— 20 ‘‘(1) PPP LOANS.—During the period begin- 21 ning on the date of enactment of the Prioritized 22 Paycheck Protection Program Act and ending on 23 December 31, 2020, or such later date as the Ad- 24 ministrator determines appropriate, subject to the 25 VerDate Sep 11 2014 05:34 Jul 09, 2020 Jkt 099200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\H7241.IH H7241 kjohnson on DSK79L0C42PROD with BILLS 15 •HR 7241 IH availability of appropriations, the Administrator may 1 make commitments under paragraph (36) of section 2 7(a) of the Small Business Act (15 U.S.C. 636(a)) 3 in such amounts as the Administrator determines 4 necessary. 5 ‘‘(2) OTHER 7(a) LOANS.—During fiscal year 6 2020, the amount authorized for commitments for 7 section 7(a) of the Small Business Act (15 U.S.C [Text truncated for display. 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