II 

116TH CONGRESS 

2D SESSION S. 4014 

To provide for supplemental loans under the Paycheck Protection Program. 

IN THE SENATE OF THE UNITED STATES 

JUNE 18, 2020 

Mr. CARDIN (for himself, Mr. COONS, Mrs. SHAHEEN, and Mr. CASEY) introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship 

A BILL 

To provide for supplemental loans under the Paycheck 

Protection Program. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Prioritized Paycheck 

5 Protection Program Act’’ or the ‘‘P4 Act’’. 

6 SEC. 2. PAYCHECK PROTECTION PROGRAM IMPROVE7 MENTS. 

8 (a) EXTENSION FOR CERTAIN BUSINESS CON9 CERNS.—Section 7(a)(36)(B) of the Small Business Act 

10 (15 U.S.C. 636(a)(36)(B)) is amended— 


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1 (1) by striking ‘‘Except’’ and inserting the fol2 lowing: 

3 ‘‘(i) IN GENERAL.—Except’’; and 

4 (2) by adding at the end the following: 

5 ‘‘(ii) SUPPLEMENTAL PPP LOANS.— 

6 ‘‘(I) DEFINITIONS.—In this 

7 clause— 

8 ‘‘(aa) the terms ‘exchange’, 

9 ‘issuer’, and ‘security’ have the 

10 meanings given such terms in 

11 section 3(a) of the Securities Ex12 change Act of 1934 (15 U.S.C. 

13 78c(a)); 

14 ‘‘(bb) the term ‘gross re15 ceipts’ means gross receipts with16 in the meaning of section 448(c) 

17 of the Internal Revenue Code of 

18 1986; 

19 ‘‘(cc) the term ‘national se20 curities exchange’ means an ex21 change registered as a national 

22 securities exchange under section 

23 6 of the Securities Exchange Act 

24 of 1934 (15 U.S.C. 78f); 


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1 ‘‘(dd) the term ‘publicly 

2 traded entity’ means an issuer, 

3 the securities of which are listed 

4 on a national securities exchange; 

5 ‘‘(ee) the term ‘smaller con6 cern’ means an eligible recipient 

7 that— 

8 ‘‘(AA) has not more 

9 than 100 employees; 

10 ‘‘(BB) operates under a 

11 sole proprietorship or as an 

12 independent contractor; or 

13 ‘‘(CC) is an eligible 

14 self-employed individual; and 

15 ‘‘(ff) the term ‘significant 

16 loss in revenue’ means that, due 

17 to the impact of COVID–19— 

18 ‘‘(AA) the gross re19 ceipts of the eligible recipi20 ent during the first or sec21 ond calendar quarter of 

22 2020 are less than 50 per23 cent of the gross receipts of 

24 the eligible recipient during 


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1 the same calendar quarter in 

2 2019; 

3 ‘‘(BB) if the eligible re4 cipient was not in business 

5 on April 1, 2019, the gross 

6 receipts of the eligible recipi7 ent during any 2-month pe8 riod during the first 2 cal9 endar quarters of 2020 are 

10 less than 50 percent of the 

11 amount of the gross receipts 

12 of the eligible recipient dur13 ing any prior 2-month pe14 riod during the first 2 cal15 endar quarters of 2020; or 

16 ‘‘(CC) if the eligible re17 cipient is seasonal employer, 

18 as determined by the Ad19 ministrator, the gross re20 ceipts of the eligible recipi21 ent during any 2-month pe22 riod during the first 2 cal23 endar quarters of 2020 are 

24 less than 50 percent of the 

25 amount of the gross receipts 


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1 of the eligible recipient dur2 ing the same 2-month period 

3 in 2019. 

4 ‘‘(II) AUTHORITY.—Except as 

5 otherwise provided in this clause, for 

6 an eligible recipient that has received 

7 a covered loan under clause (i), the 

8 Administrator may guarantee a single 

9 supplemental covered loan to the eligi10 ble recipient under the same terms, 

11 conditions, and processes as a covered 

12 loan made under clause (i). 

13 ‘‘(III) APPLICATION DEAD14 LINE.—An eligible recipient shall sub15 mit an application for a supplemental 

16 covered loan under this clause not 

17 later than October 1, 2020, or such 

18 later date as the Administrator deter19 mines appropriate. 

20 ‘‘(IV) CHOICE OF LENDER.—An 

21 eligible recipient may apply for a sup22 plemental covered loan under this 

23 clause with the lender that made the 

24 covered loan under clause (i) to the el25 igible recipient or another lender. 


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1 ‘‘(V) ELIGIBILITY.— 

2 ‘‘(aa) IN GENERAL.—A sup3 plemental covered loan under this 

4 clause— 

5 ‘‘(AA) may be made to 

6 an eligible recipient that is a 

7 smaller concern, has had a 

8 significant loss in revenue, 

9 and has used, or is expend10 ing funds at a rate that the 

11 eligible recipient will use on 

12 or before the expected date 

13 of the disbursement of the 

14 supplemental covered loan 

15 under this clause, the full 

16 amount of the covered loan 

17 received under clause (i); 

18 and 

19 ‘‘(BB) may not be 

20 made to a publicly traded 

21 entity. 

22 ‘‘(bb) BUSINESS CONCERNS

23 WITH MORE THAN 1 PHYSICAL

24 LOCATION.— 


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1 ‘‘(AA) IN GENERAL.— 

2 For purposes of a supple3 mental covered loan under 

4 this clause, subparagraph 

5 (D)(iii) shall be applied by 

6 substituting ‘not more than 

7 100 employees per physical 

8 location’ for ‘not more than 

9 500 employees per physical 

10 location’. 

11 ‘‘(BB) LIMIT FOR MUL12 TIPLE LOCATIONS.—For an 

13 eligible recipient with more 

14 than 1 physical location, the 

15 total amount of all supple16 mental covered loans under 

17 this clause to the eligible re18 cipient shall not be more 

19 than $2,000,000. 

20 ‘‘(VI) MAXIMUM AMOUNT FOR

21 SUPPLEMENTAL PPP.—The maximum 

22 amount of a supplemental covered 

23 loan under this clause is the lesser 

24 of— 


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1 ‘‘(aa) the product obtained 

2 by multiplying— 

3 ‘‘(AA) the average total 

4 monthly payments for pay5 roll costs by the eligible re6 cipient used to determine 

7 the maximum amount of the 

8 covered loan under clause (i) 

9 made to the eligible recipient 

10 under this paragraph; by 

11 ‘‘(BB) 2.5; or 

12 ‘‘(bb) $2,000,000. 

13 ‘‘(VII) EXCEPTION FROM CER14 TAIN CERTIFICATION REQUIRE15 MENTS.—An eligible recipient apply16 ing for a supplemental covered loan 

17 under this clause shall not be required 

18 to make the certification described in 

19 subclauses (III) or (IV) of subpara20 graph (G)(i). 

21 ‘‘(VIII) REIMBURSEMENT FOR

22 PROCESSING SUPPLEMENTAL PPP.— 

23 For a supplemental covered loan 

24 under this clause of not more than 

25 $50,000, the reimbursement under 


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1 subparagraph (P)(I) by the Adminis2 trator shall not be less than $2,500. 

3 ‘‘(iii) PRIORITY FOR SMALLEST RE4 CIPIENTS.— 

5 ‘‘(I) APPLICATION PROC6 ESSING.—In processing applications 

7 to guarantee covered loans, the Ad8 ministrator shall, taking into account 

9 the sense of the Senate on giving pri10 ority to underserved and rural bor11 rowers under subparagraph (P)(iv), 

12 prioritize the processing of applica13 tions to guarantee covered loans 

14 under clause (i) or (ii) to eligible re15 cipients that have not more than 10 

16 employees. 

17 ‘‘(II) FUNDING PRIORITY.—The 

18 Administrator shall ensure that— 

19 ‘‘(aa) of the unobligated bal20 ances available for covered loans 

21 on the date of enactment of the 

22 Prioritized Paycheck Protection 

23 Program Act, not less than the 

24 lesser of 20 percent of such un25 obligated balances or 


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1 $25,000,000,000 is used for 

2 guaranteeing covered loans under 

3 clause (i) or (ii) to eligible recipi4 ents that have not more than 10 

5 employees; and 

6 ‘‘(bb) to the extent addi7 tional amounts are made avail8 able for covered loans after the 

9 date of enactment of the 

10 Prioritized Paycheck Protection 

11 Program Act, not less than the 

12 lesser of 20 percent of the sum of 

13 the unobligated balances de14 scribed in subitem (AA) and such 

15 additional amounts or 

16 $25,000,000,000 is used for 

17 guaranteeing covered loans under 

18 clause (i) or (ii) to eligible recipi19 ents that have not more than 10 

20 employees.’’. 

21 (b) COVERED PERIODS.— 

22 (1) AUTHORITY TO EXTEND PERIOD FOR MAK23 ING PPP AND P4 LOANS.—Section 7(a)(36)(A)(iii) of 

24 the Small Business Act (15 U.S.C. 

25 636(a)(36)(A)(iii)) is amended by inserting ‘‘, or 


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1 such later date as the Administrator determines ap2 propriate’’ after ‘‘December 31, 2020’’. 

3 (2) PERIOD FOR COSTS THAT ARE ELIGIBLE

4 FOR FORGIVENESS AND APPLICATION SUBMIS5 SION.—Section 1106 of the CARES Act (Public 

6 Law 116–136) is amended— 

7 (A) in subsection (a), by striking para8 graph (3) and inserting the following: 

9 ‘‘(3) the term ‘covered period’ means the pe10 riod— 

11 ‘‘(A) beginning on the date of the origina12 tion of a covered loan; and 

13 ‘‘(B) ending on a date selected by the eligi14 ble recipient of the covered loan that occurs 

15 during the period— 

16 ‘‘(i) beginning on the date that is 8 

17 weeks after such date of origination; and 

18 ‘‘(ii) ending on December 31, 2020, or 

19 such later date as the Administrator deter20 mines appropriate.’’; 

21 (B) in subsection (d), by inserting ‘‘, or 

22 such later date as the Administrator determines 

23 appropriate’’ after ‘‘December 31, 2020’’ each 

24 place it appears; 


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1 (C) in subsection (e), in the matter pre2 ceding paragraph (1), by striking ‘‘An eligible 

3 recipient’’ and inserting ‘‘After the end of the 

4 covered period with respect to an eligible recipi5 ent, the eligible recipient’’; and 

6 (D) by striking subsection (l). 

7 (3) APPLICABILITY OF AMENDMENTS.—The 

8 amendments made by paragraph (2) shall apply to 

9 a loan made under paragraph (36) of section 7(a) of 

10 the Small Business Act (15 U.S.C. 636(a)) before, 

11 on, or after the date of enactment of this Act. 

12 (c) IMPLEMENTATION OF INSPECTOR GENERAL SUG13 GESTED ACTIONS FOR PPP OVERSIGHT.—Not later than 

14 5 days after the date of enactment of this Act, the Admin15 istrator of the Small Business Administration shall— 

16 (1) issue guidance to prioritize underserved 

17 businesses, as described in the sense of the Senate 

18 provision under subparagraph (P)(iv) of section 

19 7(a)(36) of the Small Business Act (15 U.S.C. 

20 636(a)(36)); 

21 (2) issue an updated loan origin application for 

22 initial covered loans under such section and issue an 

23 origin application for supplemental covered loans 

24 under such section that collects demographic data to 

25 provide transparency for lending to underserved and 


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1 rural markets, as required under subparagraph (P) 

2 of such section; 

3 (3) implement the loan registration required 

4 under such section; and 

5 (4) consistent with information that the Admin6 istrator makes available on loans made by the Ad7 ministration in compliance with section 552 of title 

8 5, United States Code (commonly known as the 

9 ‘‘Freedom of Information Act’’), begin publishing on 

10 the website of the Administration information about 

11 the paycheck protection program under section 

12 7(a)(36) of the Small Business Act (15 U.S.C. 

13 636(a)(36)), including initial covered loans and sup14 plemental covered loans, including— 

15 (A) the name of each business or nonprofit 

16 organization borrower; 

17 (B) the address of the principal place of 

18 business of each borrower; 

19 (C) the name and address of the principal 

20 place of business of each lender; 

21 (D) the amount of each loan; 

22 (E) the North American Industry Classi23 fication System code of each borrower; 

24 (F) whether each borrower is a franchisee; 

25 and 


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1 (G) the type of business of each borrower. 

2 (d) FORGIVENESS COMPENSATION FEES.—Section 

3 7(a)(36)(P) of the Small Business Act (15 U.S.C. 

4 636(a)(36)(P)) is amended by adding at the end the fol5 lowing: 

6 ‘‘(v) FORGIVENESS APPLICATION AS7 SISTANCE.—With respect to initial covered 

8 loans and supplemental covered loans, the 

9 Administrator may reimburse an agent 

10 that assists an eligible recipient in pre11 paring an application for and documenta12 tion required to obtain forgiveness under 

13 section 1106 of the Cares Act (Public Law 

14 116–136), in an amount not to exceed 

15 $500.’’. 

16 (e) AMOUNT AUTHORIZED FOR COMMITMENTS.— 

17 Section 1102(b) of the CARES Act (Public Law 116–136) 

18 is amended to read as follows: 

19 ‘‘(b) COMMITMENTS FOR PPP AND OTHER 7(a) 

20 LOANS.— 

21 ‘‘(1) PPP LOANS.—During the period begin22 ning on the date of enactment of the Prioritized 

23 Paycheck Protection Program Act and ending on 

24 December 31, 2020, or such later date as the Ad25 ministrator determines appropriate, subject to the 


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1 availability of appropriations, the Administrator may 

2 make commitments under paragraph (36) of section 

3 7(a) of the Small Business Act (15 U.S.C. 636(a)) 

4 in such amounts as the Administrator determines 

5 necessary. 

6 ‘‘(2) OTHER 7(a) LOANS.—During fiscal year 

7 2020, the amount authorized for commitments for 

8 section 7(a) of the Small Business Act (15 U.S.C. 

9 636(a)) under the heading ‘BUSINESS LOANS PRO10 GRAM ACCOUNT’ under the heading ‘SMALL BUSI11 NESS ADMINISTRATION’ under title V of the Consoli12 dated Appropriations Act, 2020 (Public Law 116– 

13 93; 133 Stat. 2475) shall apply with respect to any 

14 commitments under such section 7(a) other than 

15 under paragraph (36) of such section 7(a).’’. 

Æ 


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