Paycheck Protection Program Integrity Act of 2020

II 116TH CONGRESS 2D SESSION S. 4489 To appropriately limit forgiveness of loans under the paycheck protection program and to clarify that records in the possession, custody, or control of the Federal Government relating to borrowers and loans under the paycheck protection program are subject to disclosure in accordance with applicable law. IN THE SENATE OF THE UNITED STATES AUGUST 6, 2020 Mr. JOHNSON introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship A BILL To appropriately limit forgiveness of loans under the pay- check protection program and to clarify that records in the possession, custody, or control of the Federal Government relating to borrowers and loans under the paycheck protection program are subject to disclosure in accordance with applicable law. 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 Integrity Act of 2020’’. 5 VerDate Sep 11 2014 19:13 Aug 26, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S4489.IS S4489 pamtmann on DSKBC07HB2PROD with BILLS 2 •S 4489 IS SEC. 2. FORGIVENESS AND DISCLOSURE. 1 (a) REDUCTION OF FORGIVENESS BASED ON AFTER- 2 TAX INCOME AND INCREASES IN NET ASSETS.— 3 (1) IN GENERAL.—Section 1106(d) of the 4 CARES Act (15 U.S.C. 9005(d)) is amended— 5 (A) by redesignating paragraph (8) as 6 paragraph (10); and 7 (B) by inserting after paragraph (7) the 8 following: 9 ‘‘(8) REDUCTION RELATING TO AFTER-TAX IN- 10 COME.—The amount of loan forgiveness under this 11 section shall be reduced by the amount of after-tax 12 income of the eligible recipient for the first taxable 13 year ending after the date of issuance of the covered 14 loan, up to the amount of the covered loan amount. 15 ‘‘(9) REDUCTION RELATING TO INCREASE IN 16 NET ASSETS OF NONPROFIT ORGANIZATIONS.—For 17 an eligible recipient that is a nonprofit organization, 18 the amount of loan forgiveness under this section 19 shall be reduced by the amount of the increase, if 20 any, in the net assets of the eligible recipient during 21 the 1-year period beginning on the date of issuance 22 of the covered loan, up to the amount of the covered 23 loan amount.’’. 24 (2) DOCUMENTATION.—Section 1106(e) of the 25 CARES Act (15 U.S.C. 9005(e)) is amended— 26 VerDate Sep 11 2014 19:13 Aug 26, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S4489.IS S4489 pamtmann on DSKBC07HB2PROD with BILLS 3 •S 4489 IS (A) in paragraph (3), by striking ‘‘and’’ at 1 the end; 2 (B) by redesignating paragraph (4) as 3 paragraph (5); and 4 (C) by inserting after paragraph (3) the 5 following: 6 ‘‘(4) documentation verifying after-tax income 7 and net assets for purposes of paragraphs (8) and 8 (9) of subsection (d), including tax filings reported 9 to the Internal Revenue Service; and’’. 10 (3) APPLICATION.—The amendments made by 11 paragraphs (1) and (2) shall apply to any loan made 12 under section 7(a)(36) of the Small Business Act 13 (15 U.S.C. 636(a)(36)) on or after the date of en- 14 actment of this Act. 15 (b) DISCLOSURE OF INFORMATION.—Section 16 7(a)(36) of the Small Business Act (15 U.S.C. 17 636(a)(36)) is amended by adding at the end the fol- 18 lowing: 19 ‘‘(T) DISCLOSURE OF INFORMATION.— 20 Nothing in this paragraph shall be construed to 21 limit or modify the duty or authority to disclose 22 a record in the possession, custody, or control 23 of the Federal Government that relates to an 24 eligible recipient that receives a covered loan or 25 VerDate Sep 11 2014 19:13 Aug 26, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S4489.IS S4489 pamtmann on DSKBC07HB2PROD with BILLS 4 •S 4489 IS to such covered loan (without regard to the 1 amount of the covered loan, the number of em- 2 ployees of the eligible recipient, or other fac- 3 tors)— 4 ‘‘(i) to the public in accordance with 5 section 552 of title 5, United States Code 6 (commonly known as the ‘‘Freedom of In- 7 formation Act’’); 8 ‘‘(ii) to the Commissioner of Internal 9 Revenue, the inspector general of an agen- 10 cy, the Pandemic Recovery Accountability 11 Committee, a committee or member of 12 Congress, or another officer or employee of 13 the Federal Government in accordance 14 with applicable law; or 15 ‘‘(iii) to another person or entity in 16 accordance with applicable law.’’. 17 Æ VerDate Sep 11 2014 19:13 Aug 26, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\S4489.IS S4489 pamtmann on DSKBC07HB2PROD with BILLS