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 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. 

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 ‘‘Paycheck Protection 

5 Program Integrity Act of 2020’’. 


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•S 4489 IS

1 SEC. 2. FORGIVENESS AND DISCLOSURE. 

2 (a) REDUCTION OF FORGIVENESS BASED ON AFTER3 TAX INCOME AND INCREASES IN NET ASSETS.— 

4 (1) IN GENERAL.—Section 1106(d) of the 

5 CARES Act (15 U.S.C. 9005(d)) is amended— 

6 (A) by redesignating paragraph (8) as 

7 paragraph (10); and 

8 (B) by inserting after paragraph (7) the 

9 following: 

10 ‘‘(8) REDUCTION RELATING TO AFTER-TAX IN11 COME.—The amount of loan forgiveness under this 

12 section shall be reduced by the amount of after-tax 

13 income of the eligible recipient for the first taxable 

14 year ending after the date of issuance of the covered 

15 loan, up to the amount of the covered loan amount. 

16 ‘‘(9) REDUCTION RELATING TO INCREASE IN

17 NET ASSETS OF NONPROFIT ORGANIZATIONS.—For 

18 an eligible recipient that is a nonprofit organization, 

19 the amount of loan forgiveness under this section 

20 shall be reduced by the amount of the increase, if 

21 any, in the net assets of the eligible recipient during 

22 the 1-year period beginning on the date of issuance 

23 of the covered loan, up to the amount of the covered 

24 loan amount.’’. 

25 (2) DOCUMENTATION.—Section 1106(e) of the 

26 CARES Act (15 U.S.C. 9005(e)) is amended— 


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1 (A) in paragraph (3), by striking ‘‘and’’ at 

2 the end; 

3 (B) by redesignating paragraph (4) as 

4 paragraph (5); and 

5 (C) by inserting after paragraph (3) the 

6 following: 

7 ‘‘(4) documentation verifying after-tax income 

8 and net assets for purposes of paragraphs (8) and 

9 (9) of subsection (d), including tax filings reported 

10 to the Internal Revenue Service; and’’. 

11 (3) APPLICATION.—The amendments made by 

12 paragraphs (1) and (2) shall apply to any loan made 

13 under section 7(a)(36) of the Small Business Act 

14 (15 U.S.C. 636(a)(36)) on or after the date of en15 actment of this Act. 

16 (b) DISCLOSURE OF INFORMATION.—Section 

17 7(a)(36) of the Small Business Act (15 U.S.C. 

18 636(a)(36)) is amended by adding at the end the fol19 lowing: 

20 ‘‘(T) DISCLOSURE OF INFORMATION.— 

21 Nothing in this paragraph shall be construed to 

22 limit or modify the duty or authority to disclose 

23 a record in the possession, custody, or control 

24 of the Federal Government that relates to an 

25 eligible recipient that receives a covered loan or 


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1 to such covered loan (without regard to the 

2 amount of the covered loan, the number of em3 ployees of the eligible recipient, or other fac4 tors)— 

5 ‘‘(i) to the public in accordance with 

6 section 552 of title 5, United States Code 

7 (commonly known as the ‘‘Freedom of In8 formation Act’’); 

9 ‘‘(ii) to the Commissioner of Internal 

10 Revenue, the inspector general of an agen11 cy, the Pandemic Recovery Accountability 

12 Committee, a committee or member of 

13 Congress, or another officer or employee of 

14 the Federal Government in accordance 

15 with applicable law; or 

16 ‘‘(iii) to another person or entity in 

17 accordance with applicable law.’’. 

Æ 


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