Continuing the Paycheck Protection Program Act

II Calendar No. 562 116TH CONGRESS 2D SESSION S. 4773 To establish the Paycheck Protection Program Second Draw Loan, and for other purposes. IN THE SENATE OF THE UNITED STATES SEPTEMBER 30 (legislative day, SEPTEMBER 29), 2020 Ms. COLLINS (for herself and Mr. RUBIO) introduced the following bill; which was read the first time OCTOBER 1, 2020 Read the second time and placed on the calendar A BILL To establish the Paycheck Protection Program Second Draw Loan, 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 ‘‘Continuing the Pay- 4 check Protection Program Act’’. 5 SEC. 2. SMALL BUSINESS RECOVERY. 6 (a) DEFINITIONS.—In this section: 7 VerDate Sep 11 2014 01:08 Oct 02, 2020 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S4773.PCS S4773 pbinns on DSKJLVW7X2PROD with BILLS 2 •S 4773 PCS (1) ADMINISTRATION; ADMINISTRATOR.—The 1 terms ‘‘Administration’’ and ‘‘Administrator’’ mean 2 the Small Business Administration and the Adminis- 3 trator thereof, respectively. 4 (2) SMALL BUSINESS CONCERN.—The term 5 ‘‘small business concern’’ has the meaning given the 6 term in section 3 of the Small Business Act (15 7 U.S.C. 632). 8 (b) EMERGENCY RULEMAKING AUTHORITY.— Not 9 later than 30 days after the date of enactment of this Act, 10 the Administrator shall issue regulations to carry out this 11 section and the amendments made by this section without 12 regard to the notice requirements under section 553(b) of 13 title 5, United States Code. 14 (c) ADDITIONAL ELIGIBLE EXPENSES.— 15 (1) ALLOWABLE USE OF PPP LOAN.—Section 16 7(a)(36)(F)(i) of the Small Business Act (15 U.S.C. 17 636(a)(36)(F)(i)) is amended— 18 (A) in subclause (VI), by striking ‘‘and’’ at 19 the end; 20 (B) in subclause (VII), by striking the pe- 21 riod at the end and inserting a semicolon; and 22 (C) by adding at the end the following: 23 ‘‘(VIII) covered operations ex- 24 penditures, as defined in section 25 VerDate Sep 11 2014 01:08 Oct 02, 2020 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S4773.PCS S4773 pbinns on DSKJLVW7X2PROD with BILLS 3 •S 4773 PCS 1106(a) of the CARES Act (15 1 U.S.C. 9005(a)); 2 ‘‘(IX) covered property damage 3 costs, as defined in such section 4 1106(a); 5 ‘‘(X) covered supplier costs, as 6 defined in such section 1106(a); and 7 ‘‘(XI) covered worker protection 8 expenditures, as defined in such sec- 9 tion 1106(a).’’. 10 (2) LOAN FORGIVENESS.—Section 1106 of the 11 CARES Act (15 U.S.C. 9005) is amended— 12 (A) in subsection (a)— 13 (i) by redesignating paragraphs (6), 14 (7), and (8) as paragraphs (10), (11), and 15 (12), respectively; 16 (ii) by redesignating paragraph (5) as 17 paragraph (8); 18 (iii) by redesignating paragraph (4) as 19 paragraph (6); 20 (iv) by redesignating paragraph (3) as 21 paragraph (4); 22 (v) by inserting after paragraph (2) 23 the following: 24 VerDate Sep 11 2014 01:08 Oct 02, 2020 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S4773.PCS S4773 pbinns on DSKJLVW7X2PROD with BILLS 4 •S 4773 PCS ‘‘(3) the term ‘covered operations expenditure’ 1 means a payment for any business software or cloud 2 computing service that facilitates business oper- 3 ations, product or service delivery, the processing, 4 payment, or tracking of payroll expenses, human re- 5 sources, sales and billing functions, or accounting or 6 tracking of supplies, inventory, records and ex- 7 penses;’’; 8 (vi) by inserting after paragraph (4), 9 as so redesignated, the following: 10 ‘‘(5) the term ‘covered property damage cost’ 11 means a cost related to property damage and van- 12 dalism or looting due to public disturbances that oc- 13 curred during 2020 that was not covered by insur- 14 ance or other compensation;’’; 15 (vii) by inserting after paragraph (6), 16 as so redesignated, the following: 17 ‘‘(5) the term ‘covered supplier cost’ means an 18 expenditure made by an entity to a supplier of goods 19 pursuant to a contract, order, or purchase order in 20 effect before October 1, 2020 for the supply of goods 21 that are essential to the operations of the entity at 22 the time at which the expenditure is made;’’; 23 (viii) by inserting after paragraph (8), 24 as so redesignated, the following: 25 VerDate Sep 11 2014 01:08 Oct 02, 2020 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S4773.PCS S4773 pbinns on DSKJLVW7X2PROD with BILLS 5 •S 4773 PCS ‘‘(9) the term ‘covered worker protection ex- 1 penditure’— 2 ‘‘(A) means an operating or a capital ex- 3 penditure that is required to facilitate the adap- 4 tation of the business activities of an entity to 5 comply with requirements established or guid- 6 ance issued by the Department of Health and 7 Human Services, the Centers for Disease Con- 8 trol, or the Occupational Safety and Health Ad- 9 ministration during the period beginning on 10 March 1, 2020 and ending the date on which 11 the national emergency declared by the Presi- 12 dent under the National Emergencies Act (50 13 U.S.C. 1601 et seq.) with respect to the 14 Coronavirus Disease 2019 (COVID–19) expires 15 related to the maintenance of standards for 16 sanitation, social distancing, or any other work- 17 er or customer safety requirement related to 18 COVID–19; 19 ‘‘(B) may include— 20 ‘‘(i) the purchase, maintenance, or 21 renovation of assets that create or ex- 22 pand— 23 ‘‘(I) a drive-through window fa- 24 cility; 25 VerDate Sep 11 2014 01:08 Oct 02, 2020 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S4773.PCS S4773 pbinns on DSKJLVW7X2PROD with BILLS 6 •S 4773 PCS ‘‘(II) an indoor, outdoor, or com- 1 bined air or air pressure ventilation or 2 filtration system; 3 ‘‘(III) a physical barrier such as 4 a sneeze guard; 5 ‘‘(IV) an indoor, outdoor, or com- 6 bined commercial real property; 7 ‘‘(V) an onsite or offsite health 8 screening capability; or 9 ‘‘(VI) other assets relating to the 10 compliance with the requirements or 11 guidance described in subparagraph 12 (A), as determined by the Adminis- 13 trator in consultation with the Sec- 14 retary of Health and Human Services 15 and the Secretary of Labor; and 16 ‘‘(ii) the purchase of— 17 ‘‘(I) covered materials described 18 in section 328.103(a) of title 44, Code 19 of Federal Regulations, or any suc- 20 cessor regulation; 21 ‘‘(II) particulate filtering face- 22 piece respirators approved by the Na- 23 tional Institute for Occupational Safe- 24 ty and Health, including those ap- 25 VerDate Sep 11 2014 01:08 Oct 02, 2020 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S4773.PCS S4773 pbinns on DSKJLVW7X2PROD with BILLS 7 •S 4773 PCS proved only for emergency use author- 1 ization; or 2 ‘‘(III) other kinds of personal 3 protective equipment, as determined 4 by the Administrator in consultation 5 with the Secretary of Health and 6 Human Services and the Secretary of 7 Labor; and 8 ‘‘(C) does not include residential real prop- 9 erty or intangible property;’’; and 10 (ix) in paragraph (11), as so redesig- 11 nated— 12 (I) in subparagraph (C), by strik- 13 ing ‘‘and’’ at the end; 14 (II) in subparagraph (D), by 15 striking ‘‘and’’ at the end; and 16 (III) by adding at the end the 17 following: 18 ‘‘(E) covered operations expenditures; 19 ‘‘(F) covered property damage costs; 20 ‘‘(G) covered supplier costs; and 21 ‘‘(H) covered worker protection expendi- 22 tures; and’’; 23 (B) in subsection (b), by adding at the end 24 the following: 25 VerDate Sep 11 2014 01:08 Oct 02, 2020 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S4773.PCS S4773 pbinns on DSKJLVW7X2PROD with BILLS 8 •S 4773 PCS ‘‘(5) Any covered operations expenditure. 1 ‘‘(6) Any covered property damage cost. 2 ‘‘(7) Any covered supplier cost. 3 ‘‘(8) Any covered worker protection expendi- 4 ture.’’; 5 (C) in subsection (d)(8), by inserting ‘‘any 6 payment on any covered operations expenditure, 7 any payment on any covered property damage 8 cost, any payment on any covered supplier cost, 9 any payment on any covered worker protection 10 expenditure,’’ after ‘‘rent obligation,’’; and 11 (D) in subsection (e)— 12 (i) in paragraph (2), by inserting 13 ‘‘payments on covered operations expendi- 14 tures, payments on covered property dam- 15 age costs, payments on covered supplier 16 costs, payments on covered worker protec- 17 tion expenditures,’’ after ‘‘lease obliga- 18 tions,’’; and 19 (ii) in paragraph (3)(B), by inserting 20 ‘‘make payments on covered operations ex- 21 penditures, make payments on covered 22 property damage costs, make payments on 23 covered supplier costs, make payments on 24 VerDate Sep 11 2014 01:08 Oct 02, 2020 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S4773.PCS S4773 pbinns on DSKJLVW7X2PROD with BILLS 9 •S 4773 PCS covered worker protection expenditures,’’ 1 after ‘‘rent obligation,’’. 2 (d) LENDER SAFE HARBOR.—Subsection (h) of sec- 3 tion 1106 of the CARES Act (15 U.S.C. 9005) is amended 4 to read as follows: 5 ‘‘(h) HOLD HARMLESS.— 6 ‘‘(1) IN GENERAL.—A lender may rely on any 7 certification or documentation submitted by an ap- 8 plicant for a covered loan or an eligible recipient of 9 a covered loan that— 10 ‘‘(A) is submitted pursuant to any statu- 11 tory requirement relating to covered loans or 12 any rule or guidance issued to carry out any ac- 13 tion relating to covered loans; and 14 ‘‘(B) attests that the applicant or eligible 15 recipient, as applicable, has accurately verified 16 any certification or documentation provided to 17 the lender. 18 ‘‘(2) NO ENFORCEMENT ACTION.—With respect 19 to a lender that relies on a certification or docu- 20 mentation described in paragraph (1)— 21 ‘‘(A) an enforcement action may not be 22 taken against the lender acting in good faith re- 23 lating to origination or forgiveness of a covered 24 loan based on such reliance; and 25 VerDate Sep 11 2014 01:08 Oct 02, 2020 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S4773.PCS S4773 pbinns on DSKJLVW7X2PROD with BILLS 10 •S 4773 PCS ‘‘(B) the lender acting in good faith shall 1 not be subject to any penalties relating to origi- 2 nation or forgiveness of a covered loan based on 3 such reliance.’’. 4 (e) SELECTION OF COVERED PERIOD FOR FORGIVE- 5 NESS.—Section 1106 of the CARES Act (15 U.S.C. 9005) 6 is amended— 7 (1) by amending paragraph (4) of subsection 8 (a), as so redesignated by subsection (c) of this sec- 9 tion, to read as follows: 10 ‘‘(4) the term ‘covered period’ means the pe- 11 riod— 12 ‘‘(A) beginning on the date of the origina- 13 tion of a covered loan; and 14 ‘‘(B) ending on a date selected by the eligi- 15 ble recipient of the covered loan that occurs 16 during the period— 17 ‘‘(i) beginning on the date that is 8 18 weeks after such date of origination; and 19 ‘‘(ii) ending on the date that is 24 20 weeks after such date of origination;’’; and 21 (2) by striking subsection (l). 22 (f) SIMPLIFIED APPLICATION.—Section 1106 of the 23 CARES Act (15 U.S.C. 9005), as amended by subsection 24 (e) of this section, is amended— 25 VerDate Sep 11 2014 01:08 Oct 02, 2020 Jkt 019200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S4773.PCS S4773 pbinns on DSKJLVW7X2PROD with BILLS 11 •S 4773 PCS (1) in subsection (e), in the matter preceding 1 paragraph (1), by striking ‘‘An eligible’’ and insert- 2 ing ‘‘Except as provided in subsection (l), an eligi- 3 ble’’; 4 (2) in subsection (f), by inserting ‘‘or the infor- 5 mation required under subsection (l), as applicable’’ 6 after ‘‘subsection (e)’’; and 7 (3) by adding at the end the following: 8 ‘‘(l) SIMPLIFIED APPLICATION.— 9 ‘‘(1) COVERED LOANS UNDER $150,000.— 10 ‘‘(A) IN GENERAL.—Notwithstanding sub- 11 section (e), with respect to a covered loan made 12 to an eligible recipient that is not more than 13 $150,000, the covered loan amount shall be for- 14 given under this section if the eligible recipi- 15 ent— 16 ‘‘(i) signs and submits to the lender a 17 one-page online or paper form, to be estab- 18 lished by the Administrator not later than 19 7 days after the date of enactment of the 20 Continuing the Paycheck Protection Pro- 21 gram Act, that— 22 ‘‘(I) reports the amount of the 23 covered loan amount spent by the eli- 24 gible recipient— 25 VerDate Sep 11 2014 01:08 Oct 02, 2020 Jkt 019200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S4773.PCS S4773 pbinns on DSKJLVW7X2PROD with BILLS 12 •S 4773 PCS ‘‘(aa) on payroll costs; and 1 ‘‘(bb) on the sum of— 2 ‘‘(AA) payments of in- 3 terest on any covered mort- 4 gage obligation (which shall 5 not include any prepayment 6 of or payment of principal 7 on a covered mortgage obli- 8 gation); 9 ‘‘(BB) payments on any 10 covered rent obligation; 11 ‘‘(CC) covered utility 12 payments; 13 ‘‘(DD) covered oper- 14 ations expenditures; 15 ‘‘(EE) covered property 16 damage costs; 17 ‘‘(FF) covered supplier 18 costs; and 19 ‘‘(GG) covered worker 20 protection expenditures; and 21 ‘‘(II) attests that the eligible re- 22 cipient made a good faith effort to 23 comply with the requirements under 24 VerDate Sep 11 2014 01:08 Oct 02, 2020 Jkt 019200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S4773.PCS S4773 pbinns on DSKJLVW7X2PROD with BILLS 13 •S 4773 PCS section 7(a)(36) of the Small Business 1 Act (15 U.S.C. 636(a)(36)); and 2 ‘‘(ii) retains records relevant to the 3 form that prove compliance with those re- 4 quirements— 5 ‘‘(I) with respect to employment 6 records, for the 4-year period fol- 7 lowing submission of the form; and 8 ‘‘(II) with respect to other 9 records, for the 3-year period fol- 10 lowing submission of the form. 11 ‘‘(B) DEMOGRAPHIC INFORMATION.—An 12 eligible recipient of a covered loan described in 13 subparagraph (A) may complete and submit 14 any form related to borrower demographic in- 15 formation. 16 ‘‘(C) AUDIT.—The Administrator may— 17 ‘‘(i) review and audit covered loans 18 described in subparagraph (A); and 19 ‘‘(ii) in the case of fraud, ineligibility, 20 or other material noncompliance with ap- 21 plicable loan or loan forgiveness require- 22 ments, modify— 23 ‘‘(I) the amount of a covered loan 24 described in subparagraph (A); or 25 VerDate Sep 11 2014 01:08 Oct 02, 2020 Jkt 019200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\S4773.PCS S4773 pbinns on DSKJLVW7X2PROD with BILLS 14 •S 4773 PCS ‘‘(II) the loan forgiveness amount 1 with respect to a covered loan de- 2 scribed in subparagraph (A). 3 ‘‘(2) COVERED LOANS BETWEEN $150,000 AND 4 $2,000,000.— 5 ‘‘(A) IN GENERAL.—Notwithstanding sub- 6 section (e), with respect to a covered loan made 7 to an eligible recipient that is more than 8 $150,000 and not more than $2,000,000— 9 ‘‘(i) the eli [Text truncated for display. 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