I 

116TH CONGRESS 

2D SESSION H. R. 7894 

To require the Administrator of the Small Business Administration to establish a program to provide certain borrowers with a second loan under 

the paycheck protection program, to modify the eligibility and forgiveness 

requirement of the program, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 31, 2020 

Mr. CURTIS (for himself, Mr. ROY, Mr. VAN DREW, Mr. MEUSER, and Ms. 

WILD) introduced the following bill; which was referred to the Committee 

on Small Business, and in addition to the Committee on Ways and 

Means, for a period to be subsequently determined by the Speaker, in 

each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To require the Administrator of the Small Business Administration to establish a program to provide certain borrowers with a second loan under the paycheck protection 

program, to modify the eligibility and forgiveness requirement of the program, and for other purposes. 

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 Small Business Enhancement Act’’. 


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1 SEC. 2. EXTENDING AUTHORITY FOR COMMITMENTS FOR 

2 THE PAYCHECK PROTECTION PROGRAM. 

3 Section 1102(b)(1) of title I of division A of the 

4 Coronavirus Aid, Relief, and Economic Security Act (Pub5 lic Law 116–136) is amended by striking ‘‘August 8, 

6 2020’’ and inserting ‘‘December 31, 2020’’. 

7 SEC. 3. ELIGIBILITY OF FRANCHISES AND 501(c)(6) ORGANI8 ZATIONS FOR THE PAYCHECK PROTECTION 

9 PROGRAM. 

10 Section 7(a)(36)(D) of the Small Business Act (15 

11 U.S.C. 636(a)(36)(D)) is amended— 

12 (1) in subparagraph (A)(vii), by striking ‘‘sec13 tion 501(c)(3)’’ and inserting ‘‘paragraph (6) or (3) 

14 of section 501(c)’’; and 

15 (2) in subparagraph (D)— 

16 (A) in clause (iv)— 

17 (i) in subclause (II), by striking 

18 ‘‘and’’ at the end; 

19 (ii) in subclause (III), by striking the 

20 period at the end and inserting ‘‘; and’’; 

21 and 

22 (iii) by adding at the end the fol23 lowing new subclause: 

24 ‘‘(IV) any business concern that 

25 is a franchisor or franchisee as de26 scribed in clause (vii)(II).’’; and 


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1 (B) by adding at the end the following new 

2 clause: 

3 ‘‘(vii) FRANCHISES AND 501(c)(6) OR4 GANIZATIONS.—During the covered period, 

5 the following shall be eligible to receive a 

6 covered loan: 

7 ‘‘(I) Any organization that is de8 scribed in section 501(c)(6) of the In9 ternal Revenue Code and that is ex10 empt from taxation under section 

11 501(a) of such Code. 

12 ‘‘(II) Any business concern that 

13 is a franchisor or franchisee in a fran14 chise (as defined in section 436.1(h) 

15 of title 16, Code of Federal Regula16 tions), regardless of whether the fran17 chise is assigned a franchise identifier 

18 code by the Administration, if the 

19 business concern employs not more 

20 than 500 employees per physical loca21 tion of the business concern.’’. 


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1 SEC. 4. PROHIBITION ON USE OF LOAN PROCEEDS FOR 

2 LOBBYING ACTIVITIES. 

3 Section 7(a)(36)(F) of the Small Business Act (15 

4 U.S.C. 636(a)(36)(F)) is amended by adding at the end 

5 the following: 

6 ‘‘(vi) PROHIBITION.—None of the pro7 ceeds of a covered loan may be used for 

8 lobbying activities, as defined in section 3 

9 of the Lobbying Disclosure Act of 1995 (2 

10 U.S.C. 1602).’’. 

11 SEC. 5. SUBSEQUENT LOANS UNDER THE PAYCHECK PRO12 TECTION PROGRAM. 

13 (a) IN GENERAL.—An eligible business that received 

14 a covered loan under section 7(a)(36) of the Small Busi15 ness Act may submit an application to the Administrator 

16 of the Small Business Administration for a subsequent 

17 loan made under the same terms, conditions, and proc18 esses as such covered loan. 

19 (b) FORGIVENESS.— 

20 (1) IN GENERAL.—A subsequent loan made 

21 under subsection (a) shall be eligible for forgiveness 

22 under section 1106 of the CARES Act under the 

23 same terms, conditions, and processes as a covered 

24 loan made under section 7(a)(36) of the Small Busi25 ness Act. 


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1 (2) ADDITIONAL FORGIVABLE EXPENSES.— 

2 Amounts of a subsequent loan used for covered 

3 worker protection expenditures shall be eligible for 

4 forgiveness under such section 1106. 

5 (3) COVERED PERIOD.—With respect to a sub6 sequent loan, the covered period (as defined in sec7 tion 1106(a)(3) of the CARES Act) shall begin on 

8 the date of disbursement of the subsequent loan. 

9 (c) SAFE HARBOR.— 

10 (1) IN GENERAL.—A lender may rely on any 

11 certification or documentation submitted by an ap12 plicant for a covered loan or an eligible recipient of 

13 a covered loan that— 

14 (A) is submitted pursuant to any statutory 

15 requirement relating to covered loans or any 

16 rule or guidance issued to carry out any action 

17 relating to covered loans; and 

18 (B) attests that the applicant or eligible 

19 recipient, as applicable, has accurately verified 

20 any certification or documentation provided to 

21 the lender. 

22 (2) NO ENFORCEMENT ACTION.—With respect 

23 to a lender that relies on a certification or docu24 mentation described in paragraph (1)— 


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1 (A) an enforcement action may not be 

2 taken against the lender acting in good faith re3 lating to origination or forgiveness of a covered 

4 loan based on such reliance; and 

5 (B) the lender acting in good faith shall 

6 not be subject to any penalties relating to origi7 nation or forgiveness of a covered loan based on 

8 such reliance. 

9 (d) DEFINITIONS.—In this section: 

10 (1) COVERED WORKER PROTECTION EXPENDI11 TURE.—The term ‘‘covered worker protection ex12 penditure’’— 

13 (A) means an operating or a capital ex14 penditure, as determined in accordance with 

15 generally accepted accounting principles, that is 

16 required to facilitate the adaptation of the busi17 ness activities of an eligible recipient to comply 

18 with requirements established or guidance 

19 issued by the Department of Health and 

20 Human Services, the Centers for Disease Con21 trol, or the Occupational Safety and Health Ad22 ministration during the period beginning on 

23 March 1, 2020, and ending December 31, 2020, 

24 related to the maintenance of standards for 

25 sanitation, social distancing, or any other workVerDate Sep 11 2014 02:52 Aug 22, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H7894.IH H7894

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1 er or customer safety requirement related to 

2 COVID–19; 

3 (B) may include— 

4 (i) the purchase, maintenance, or ren5 ovation of assets that create or expand— 

6 (I) a drive-through window facil7 ity; 

8 (II) an indoor, outdoor, or com9 bined air or air pressure ventilation or 

10 filtration system; 

11 (III) a physical barrier such as a 

12 sneeze guard; 

13 (IV) an indoor, outdoor, or com14 bined commercial real property; 

15 (V) an onsite or offsite health 

16 screening capability; or 

17 (VI) other assets relating to the 

18 compliance with the requirements or 

19 guidance described in subparagraph 

20 (A), as determined by the Adminis21 trator in consultation with the Sec22 retary of Health and Human Services 

23 and the Secretary of Labor; 


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1 (ii) expenses related to testing em2 ployees of an eligible business for COVID– 

3 19; and 

4 (iii) the purchase of— 

5 (I) covered materials described in 

6 section 328.103(a) of title 44, Code of 

7 Federal Regulations, or any successor 

8 regulation; 

9 (II) particulate filtering facepiece 

10 respirators approved by the National 

11 Institute for Occupational Safety and 

12 Health, including those approved only 

13 for emergency use authorization; or 

14 (III) other kinds of personal pro15 tective equipment, as determined by 

16 the Administrator in consultation with 

17 the Secretary of Health and Human 

18 Services and the Secretary of Labor; 

19 and 

20 (C) does not include residential real prop21 erty or intangible property. 

22 (2) ELIGIBLE BUSINESS.—The term ‘‘eligible 

23 business’’ means an eligible recipient as defined in 

24 section 7(a)(36)(A) of the Small Business Act (15 


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1 U.S.C. 636(a)(36)(A)), but does not include a non2 profit organization as defined in such section— 

3 (A) that experienced a reduction in gross 

4 receipts of more than 20 percent during— 

5 (i) the period between April 1, 2020, 

6 and June 1, 2020, as compared to the pe7 riod between April 1, 2019, and June 1, 

8 2019; or 

9 (ii) the period between July 1, 2020, 

10 and September 1, 2020, compared to the 

11 period between July 1, 2019, and Sep12 tember 1, 2019; and 

13 (B) that is able to document an inability to 

14 return to the same level of business activity as 

15 such business was operating at before February 

16 15, 2020, due to compliance with requirements 

17 established or guidance issued by the Secretary 

18 of Health and Human Services, the Director of 

19 the Centers for Disease Control and Prevention, 

20 or the Occupational Safety and Health Admin21 istration during the period beginning on March 

22 1, 2020, and ending December 31, 2020, re23 lated to the maintenance of standards for sani24 tation, social distancing, or any other worker or 


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1 customer safety requirement related to COVID– 

2 19. 

3 SEC. 6. CLARIFICATION OF TREATMENT OF BUSINESS EX4 PENSES. 

5 (a) IN GENERAL.—Subsection (i) of section 1106 of 

6 the CARES Act (Public Law 116–136) is amended— 

7 (1) by striking ‘‘1986, any amount’’ and insert8 ing ‘‘1986— 

9 ‘‘(1) any amount’’; 

10 (2) by striking the period at the end and insert11 ing ‘‘, and’’; and 

12 (3) by adding at the end the following new 

13 paragraph: 

14 ‘‘(2) no deduction shall be denied or reduced, 

15 no tax attribute shall be reduced, and no basis in16 crease shall be denied, by reason of the exclusion 

17 from gross income provided by paragraph (1).’’. 

18 (b) EFFECTIVE DATE.—The amendments made by 

19 this section shall apply as if included in the enactment 

20 of section 1106 of the CARES Act (Public Law 116–136). 

21 SEC. 7. FORGIVENESS FOR COVERED LOANS UNDER 

22 $150,000. 

23 Section 1110 of the CARES Act (15 U.S.C. 9009) 

24 is amended by adding at the end the following new sub25 sections: 


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1 ‘‘(m) FORGIVENESS FOR COVERED LOANS UNDER

2 $150,000.— 

3 ‘‘(1) IN GENERAL.—Notwithstanding subsection 

4 (e), with respect to a covered loan made to an eligi5 ble recipient that is not more than $150,000, the 

6 covered loan amount shall be forgiven under this 

7 section if the eligible recipient submits to the lender 

8 a one-page online or paper form, to be established 

9 by the Administrator not later than 7 days after the 

10 date of enactment of this subsection, that attests 

11 that the eligible recipient complied with the require12 ments under section 7(a)(36) of the Small Business 

13 Act (15 U.S.C. 636(a)(36)). 

14 ‘‘(2) HOLD HARMLESS.—With respect to a 

15 lender that relies on an attestation submitted by an 

16 eligible recipient under paragraph (1), no enforce17 ment action may be taken against the lender for any 

18 falsehoods contained in the attestation. 

19 ‘‘(3) DEMOGRAPHIC INFORMATION.—The online 

20 or paper form established by the Administrator 

21 under paragraph (1) shall include a means by which 

22 an eligible recipient may, at the discretion of the eli23 gible recipient, submit demographic information of 

24 the owner of the eligible recipient, including the sex, 

25 race, ethnicity, and veteran status of the owner. 


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1 ‘‘(n) ENFORCEMENT ACTION AGAINST BOR2 ROWERS.—An eligible recipient of a covered loan may only 

3 be subject to an enforcement action or penalty relating 

4 to loan origination, forgiveness, or guarantee of the cov5 ered loan if the eligible recipient commits fraud or expends 

6 covered loan proceeds on expenses that are not allowable 

7 under section 7(a)(36)(F) of the Small Business Act (15 

8 U.S.C. 636(a)(36)(F)).’’. 

Æ 


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