I 

116TH CONGRESS 

2D SESSION H. R. 8265 

To amend the Small Business Act and the CARES Act to establish a program 

for second draw loans and make other modifications to the paycheck 

protection program, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 16, 2020 

Mr. CHABOT introduced the following bill; which was referred to the Committee on Small Business, and in addition to the Committee on the Judiciary, 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 amend the Small Business Act and the CARES Act 

to establish a program for second draw loans and make 

other modifications to the paycheck protection 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. ADDITIONAL ELIGIBLE EXPENSES. 

4 (a) ALLOWABLE USE OF PPP LOAN.—Section 

5 7(a)(36)(F)(i) of the Small Business Act (15 U.S.C. 

6 636(a)(36)(F)(i)) is amended— 


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1 (1) in subclause (VI), by striking ‘‘and’’ at the 

2 end; 

3 (2) in subclause (VII), by striking the period at 

4 the end and inserting a semicolon; and 

5 (3) by adding at the end the following: 

6 ‘‘(VIII) covered operations ex7 penditures, as defined in section 

8 1106(a) of the CARES Act (15 

9 U.S.C. 9005(a)); 

10 ‘‘(IX) covered property damage 

11 costs, as defined in such section 

12 1106(a); 

13 ‘‘(X) covered supplier costs, as 

14 defined in such section 1106(a); and 

15 ‘‘(XI) covered worker protection 

16 expenditures, as defined in such sec17 tion 1106(a).’’. 

18 (b) LOAN FORGIVENESS.—Section 1106 of the 

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

20 (1) in subsection (a)— 

21 (A) by redesignating paragraphs (6), (7), 

22 and (8) as paragraphs (10), (11), and (12), re23 spectively; 

24 (B) by redesignating paragraph (5) as 

25 paragraph (8); 


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1 (C) by redesignating paragraph (4) as 

2 paragraph (6); 

3 (D) by redesignating paragraph (3) as 

4 paragraph (4); 

5 (E) by inserting after paragraph (2) the 

6 following: 

7 ‘‘(3) the term ‘covered operations expenditure’ 

8 means a payment for any business software or cloud 

9 computing service that facilitates business oper10 ations, product or service delivery, the processing, 

11 payment, or tracking of payroll expenses, human re12 sources, sales and billing functions, or accounting or 

13 tracking of supplies, inventory, records and ex14 penses;’’; 

15 (F) by inserting after paragraph (4), as so 

16 redesignated, the following: 

17 ‘‘(5) the term ‘covered property damage cost’ 

18 means a cost related to property damage and van19 dalism or looting due to public disturbances that oc20 curred during 2020 that was not covered by insur21 ance or other compensation;’’; 

22 (G) by inserting after paragraph (6), as so 

23 redesignated, the following: 

24 ‘‘(7) the term ‘covered supplier cost’ means an 

25 expenditure made by an entity to a supplier of goods 


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1 pursuant to a contract in effect before February 15, 

2 2020, for the supply of goods that are essential to 

3 the operations of the entity at the time at which the 

4 expenditure is made;’’; 

5 (H) by inserting after paragraph (8), as so 

6 redesignated, the following: 

7 ‘‘(9) the term ‘covered worker protection ex8 penditure’— 

9 ‘‘(A) means an operating or a capital ex10 penditure that is required to facilitate the adap11 tation of the business activities of an entity to 

12 comply with requirements established or guid13 ance issued by the Department of Health and 

14 Human Services, the Centers for Disease Con15 trol, or the Occupational Safety and Health Ad16 ministration during the period beginning on 

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

18 related to the maintenance of standards for 

19 sanitation, social distancing, or any other work20 er or customer safety requirement related to 

21 COVID–19; 

22 ‘‘(B) may include— 

23 ‘‘(i) the purchase, maintenance, or 

24 renovation of assets that create or ex25 pand— 


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1 ‘‘(I) a drive-through window fa2 cility; 

3 ‘‘(II) an indoor, outdoor, or com4 bined air or air pressure ventilation or 

5 filtration system; 

6 ‘‘(III) a physical barrier such as 

7 a sneeze guard; 

8 ‘‘(IV) an indoor, outdoor, or com9 bined commercial real property; 

10 ‘‘(V) an onsite or offsite health 

11 screening capability; or 

12 ‘‘(VI) other assets relating to the 

13 compliance with the requirements or 

14 guidance described in subparagraph 

15 (A), as determined by the Adminis16 trator in consultation with the Sec17 retary of Health and Human Services 

18 and the Secretary of Labor; and 

19 ‘‘(ii) the purchase of— 

20 ‘‘(I) covered materials described 

21 in section 328.103(a) of title 44, Code 

22 of Federal Regulations, or any suc23 cessor regulation; 

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1 tional Institute for Occupational Safe2 ty and Health, including those ap3 proved only for emergency use author4 ization; or 

5 ‘‘(III) other kinds of personal 

6 protective equipment, as determined 

7 by the Administrator in consultation 

8 with the Secretary of Health and 

9 Human Services and the Secretary of 

10 Labor; and 

11 ‘‘(C) does not include residential real prop12 erty or intangible property;’’; and 

13 (I) in paragraph (11), as so redesig14 nated— 

15 (i) in subparagraph (C), by striking 

16 ‘‘and’’ at the end; 

17 (ii) in subparagraph (D), by striking 

18 ‘‘and’’ at the end; and 

19 (iii) by adding at the end the fol20 lowing: 

21 ‘‘(E) covered operations expenditures; 

22 ‘‘(F) covered property damage costs; 

23 ‘‘(G) covered supplier costs; and 

24 ‘‘(H) covered worker protection expendi25 tures; and’’; 


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1 (2) in subsection (b), by adding at the end the 

2 following: 

3 ‘‘(5) Any covered operations expenditure. 

4 ‘‘(6) Any covered property damage cost. 

5 ‘‘(7) Any covered supplier cost. 

6 ‘‘(8) Any covered worker protection expendi7 ture.’’; 

8 (3) in subsection (d)(8), by inserting ‘‘any pay9 ment on any covered operations expenditure, any 

10 payment on any covered property damage cost, any 

11 payment on any covered supplier cost, any payment 

12 on any covered worker protection expenditure,’’ after 

13 ‘‘rent obligation,’’; and 

14 (4) in subsection (e)— 

15 (A) in paragraph (2), by inserting ‘‘pay16 ments on covered operations expenditures, pay17 ments on covered property damage costs, pay18 ments on covered supplier costs, payments on 

19 covered worker protection expenditures,’’ after 

20 ‘‘lease obligations,’’; and 

21 (B) in paragraph (3)(B), by inserting 

22 ‘‘make payments on covered operations expendi23 tures, make payments on covered property dam24 age costs, make payments on covered supplier 


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1 costs, make payments on covered worker protec2 tion expenditures,’’ after ‘‘rent obligation,’’. 

3 SEC. 2. LENDER SAFE HARBOR. 

4 Subsection (h) of section 1106 of the CARES Act 

5 (15 U.S.C. 9005) is amended to read as follows: 

6 ‘‘(h) HOLD HARMLESS.— 

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

8 certification or documentation submitted by an ap9 plicant for a covered loan or an eligible recipient of 

10 a covered loan that— 

11 ‘‘(A) is submitted pursuant to any statu12 tory requirement relating to covered loans or 

13 any rule or guidance issued to carry out any ac14 tion relating to covered loans; and 

15 ‘‘(B) attests that the applicant or eligible 

16 recipient, as applicable, has accurately verified 

17 any certification or documentation provided to 

18 the lender. 

19 ‘‘(2) NO ENFORCEMENT ACTION.—With respect 

20 to a lender that relies on a certification or docu21 mentation described in paragraph (1)— 

22 ‘‘(A) an enforcement action may not be 

23 taken against the lender acting in good faith re24 lating to origination or forgiveness of a covered 

25 loan based on such reliance; and 


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1 ‘‘(B) the lender acting in good faith shall 

2 not be subject to any penalties relating to origi3 nation or forgiveness of a covered loan based on 

4 such reliance.’’. 

5 SEC. 3. SELECTION OF COVERED PERIOD FOR FORGIVE6 NESS. 

7 Section 1106 of the CARES Act (15 U.S.C. 9005) 

8 is amended— 

9 (1) by amending subsection (a)(4) (as redesig10 nated by section 1) to read as follows: 

11 ‘‘(4) the term ‘covered period’ means the pe12 riod— 

13 ‘‘(A) beginning on the date of the origina14 tion of a covered loan; and 

15 ‘‘(B) ending on a date selected by the eligi16 ble recipient of the covered loan that occurs 

17 during the period— 

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

19 weeks after such date of origination; and 

20 ‘‘(ii) ending on December 31, 2020;’’; 

21 and 

22 (2) by striking subsection (l). 

23 SEC. 4. SIMPLIFIED APPLICATION. 

24 Section 1106 of the CARES Act (15 U.S.C. 9005), 

25 as amended by section 3 of this Act, is further amended— 


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1 (1) in subsection (e), in the matter preceding 

2 paragraph (1), by striking ‘‘An eligible’’ and insert3 ing ‘‘Except as provided in subsection (l), an eligi4 ble’’; 

5 (2) in subsection (f), by inserting ‘‘or the infor6 mation required under subsection (l), as applicable’’ 

7 after ‘‘subsection (e)’’; and 

8 (3) by adding at the end the following: 

9 ‘‘(l) SIMPLIFIED APPLICATION.— 

10 ‘‘(1) COVERED LOANS UNDER $150,000.— 

11 ‘‘(A) IN GENERAL.—Notwithstanding sub12 section (e), with respect to a covered loan made 

13 to an eligible recipient that is not more than 

14 $150,000, the covered loan amount shall be for15 given under this section if the eligible recipi16 ent— 

17 ‘‘(i) signs and submits to the lender 

18 an attestation that the eligible recipient 

19 made a good faith effort to comply with 

20 the requirements under section 7(a)(36) of 

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

22 636(a)(36)); and 

23 ‘‘(ii) for the 3-year period following 

24 submission of the attestation under clause 

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1 tion that prove compliance with those re2 quirements. 

3 ‘‘(B) DEMOGRAPHIC INFORMATION.—An 

4 eligible recipient of a covered loan described in 

5 subparagraph (A) may complete and submit 

6 any form related to borrower demographic in7 formation. 

8 ‘‘(C) AUDIT.—The Administrator may— 

9 ‘‘(i) review and audit covered loans 

10 described in subparagraph (A); and 

11 ‘‘(ii) in the case of fraud, ineligibility, 

12 or other material noncompliance with ap13 plicable loan or loan forgiveness require14 ments, modify— 

15 ‘‘(I) the amount of a covered loan 

16 described in subparagraph (A); or 

17 ‘‘(II) the loan forgiveness amount 

18 with respect to a covered loan de19 scribed in subparagraph (A). 

20 ‘‘(2) COVERED LOANS BETWEEN $150,000 AND

21 $2,000,000.— 

22 ‘‘(A) IN GENERAL.—Notwithstanding sub23 section (e), with respect to a covered loan made 

24 to an eligible recipient that is more than 

25 $150,000 and not more than $2,000,000— 


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1 ‘‘(i) the eligible recipient seeking loan 

2 forgiveness under this section— 

3 ‘‘(I) is not required to submit the 

4 supporting documentation described 

5 in paragraph (1) or (2) of subsection 

6 (e) or the certification described in 

7 subsection (e)(3)(A); 

8 ‘‘(II) shall retain all relevant 

9 schedules, worksheets, and supporting 

10 documentation for the 3-year period 

11 following submission of the applica12 tion for loan forgiveness; and 

13 ‘‘(III) may complete and submit 

14 any form related to borrower demo15 graphic information; 

16 ‘‘(ii) review by the lender of an appli17 cation submitted by the eligible recipient 

18 for loan forgiveness under this section shall 

19 be limited to whether the lender received a 

20 complete application, with all fields com21 pleted, initialed, or signed, as applicable; 

22 and 

23 ‘‘(iii) the lender shall— 

24 ‘‘(I) accept the application sub25 mitted by the eligible recipient for 


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1 loan forgiveness under this section; 

2 and 

3 ‘‘(II) submit the application to 

4 the Administrator. 

5 ‘‘(B) AUDIT.—The Administrator may— 

6 ‘‘(i) review and audit covered loans 

7 described in subparagraph (A); and 

8 ‘‘(ii) in the case of fraud, ineligibility, 

9 or other material noncompliance with ap10 plicable loan or loan forgiveness require11 ments, modify— 

12 ‘‘(I) the amount of a covered loan 

13 described in subparagraph (A); or 

14 ‘‘(II) the loan forgiveness amount 

15 with respect to a covered loan de16 scribed in subparagraph (A). 

17 ‘‘(3) AUDIT PLAN.— 

18 ‘‘(A) IN GENERAL.—Not later than 30 

19 days after the date of enactment of this 

20 subsectoin, the Administrator shall submit to 

21 the Committee on Small Business and Entre22 preneurship of the Senate and the Committee 

23 on Small Business of the House of Representa24 tives an audit plan that details— 


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1 ‘‘(i) the policies and procedures of the 

2 Administrator for conducting reviews and 

3 audits of covered loans; and 

4 ‘‘(ii) the metrics that the Adminis5 trator shall use to determine which covered 

6 loans will be audited for each category of 

7 covered loans described in paragraphs (1) 

8 and (2). 

9 ‘‘(B) REPORTS.—Not later than 30 days 

10 after the date on which the Administrator sub11 mits the audit plan required under subpara12 graph (A), and each month thereafter, the Ad13 ministrator shall submit to the Committee on 

14 Small Business and Entrepreneurship of the 

15 Senate and the Committee on Small Business 

16 of the House of Representatives a report on the 

17 review and audit activities of the Administrator 

18 under this subsection, which shall include— 

19 ‘‘(i) the number of active reviews and 

20 audits; 

21 ‘‘(ii) the number of reviews and audits 

22 that have been ongoing for more than 60 

23 days; and 


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1 ‘‘(iii) any substantial changes made to 

2 the audit plan submitted under subpara3 graph (A).’’. 

4 SEC. 5. GROUP INSURANCE PAYMENTS AS PAYROLL COSTS. 

5 Section 7(a)(36)(A)(viii)(I)(aa)(EE) of the Small 

6 Business Act (15 U.S.C. 636(a)(36)(A)(viii)(I)(aa)(EE)) 

7 is amended by inserting ‘‘and other group insurance’’ be8 fore ‘‘benefits’’. 

9 SEC. 6. PAYCHECK PROTECTION PROGRAM SECOND DRAW 

10 LOANS. 

11 Section 7(a) of the Small Business Act (15 U.S.C. 

12 636(a)) is amended by adding at the end the following: 

13 ‘‘(37) PAYCHECK PROTECTION PROGRAM SEC14 OND DRAW LOANS.— 

15 ‘‘(A) DEFINITIONS.—In this paragraph— 

16 ‘‘(i) the terms ‘community financial 

17 institutions’, ‘credit union’, ‘eligible self18 employed individual’, ‘insured depository 

19 institution’, ‘nonprofit organization’, ‘pay20 roll costs’, ‘seasonal employer’, and ‘vet21 erans organization’ have the meanings 

22 given those terms in paragraph (36), ex23 cept that ‘eligible entity’ shall be sub24 stituted for ‘eligible recipient’ each place it 

25 appears in the definitions of those terms; 


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1 ‘‘(ii) the term ‘covered loan’ means a 

2 loan made under this paragraph; 

3 ‘‘(iii) the terms ‘covered mortgage ob4 ligation’, ‘covered operating expenditure’, 

5 ‘covered property damage cost’, ‘covered 

6 rent obligation’, ‘covered supplier cost’, 

7 ‘covered utility payment’, and ‘covered 

8 worker protection expenditure’ have the 

9 meanings given those terms in section 

10 1106(a) of the CARES Act (15 U.S.C. 

11 9005(a)); 

12 ‘‘(iv) the term ‘covered period’ means 

13 the period beginning on the date of the 

14 origination of a covered loan and ending on 

15 December 31, 2020; 

16 ‘‘(v) the terms ‘exchange’, ‘issuer’, 

17 and ‘security’ have the meanings given 

18 those terms in section 3(a) of the Securi19 ties Exchange Act of 1934 (15 U.S.C. 

20 78c(a)); 

21 ‘‘(vi) the term ‘eligible entity’— 

22 ‘‘(I) means any business concern, 

23 nonprofit organization, veterans orga24 nization, Tribal business concern, eli25 gible self-employed individual, sole 


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1 proprietor, independent contractor, or 

2 small agricultural cooperative that— 

3 ‘‘(aa)(AA) with respect to a 

4 business concern, would qualify 

5 as a small business concern by 

6 the annual receipts size standard 

7 (if applicable) established by sec8 tion 121.201 of title 13, Code of 

9 Federal Regulations, or any suc10 cessor regulation; or 

11 ‘‘(BB) if the entity does not 

12 qualify as a small business con13 cern, meets the alternative size 

14 standard established under sec15 tion 3(a)(5); 

16 ‘‘(bb) employs not more 

17 than 300 employees; and 

18 ‘‘(cc)(AA) except as provided 

19 in subitems (BB), (CC), and 

20 (DD), had gross receipts during 

21 the first or second quarter in 

22 2020 that are not less than 25 

23 percent less than the gross re24 ceipts of the entity during the 

25 same quarter in 2019; 


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1 ‘‘(BB) if the entity was not 

2 in business during the first or 

3 second quarter of 2019, but was 

4 in business during the third and 

5 fourth quarter of 2019, had gross 

6 receipts during the first or sec7 ond quarter of 2020 that are less 

8 than 25 percent of the amount of 

9 the gross receipts of the entity 

10 during the third or fourth quar11 ter of 2019; 

12 ‘‘(CC) if the entity was not 

13 in business during the first, sec14 ond, or third quarter of 2019, 

15 but was in business during the 

16 fourth quarter of 2019, had gross 

17 receipts during the first or sec18 ond quarter of 2020 that are less 

19 than 25 percent of the amount of 

20 the gross receipts of the entity 

21 during the fourth quarter of 

22 2019; or 

23 ‘‘(DD) if the entity was not 

24 in business during 2019, but was 

25 in operation on February 15, 


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1 2020, had gross receipts during 

2 the second quarter of 2020 that 

3 are less than 25 percent of the 

4 amount of the gross receipts of 

5 the entity during the first quar6 ter of 2020; and 

7 ‘‘(II) does not include— 

8 ‘‘(aa) an issuer, the securi9 ties of which are listed on an ex10 change registered a national se11 curities exchange under section 6 

12 of the Securities Exchange Act of 

13 1934 (15 U.S.C. 78f); 

14 ‘‘(bb) any entity that— 

15 ‘‘(AA) is a type of busi16 ness concern described in 

17 subsection (b), (c), (d), (e), 

18 (f), (h), (l), (m), (p), (q), 

19 (r), or (s) of section 120.110 

20 of title 13, Code of Federal 

21 Regulations, or any suc22 cessor regulation; 

23 ‘‘(BB) is a type of busi24 ness concern described in 

25 section 120.110(g) of title 


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1 13, Code of Federal Regula2 tions, or any successor regu3 lation, except as otherwise 

4 provided in the interim final 

5 rule of the Administration 

6 entitled ‘Business Loan Pro7 gram Temporary Changes; 

8 Paycheck Protection Pro9 gram—Additional Eligibility 

10 Criteria and Requirements 

11 for Certain Pledges of 

12 Loans’ (85 Fed. Reg. 21747 

13 (April 20, 2020)); 

14 ‘‘(CC) is a type of busi15 ness concern described in 

16 section 120.110(i) of title 

17 13, Code of Federal Regula18 tions, or any successor regu19 lation, except if the business 

20 concern is an organization 

21 described in paragraph 

22 (36)(D)(vii); 

23 ‘‘(DD) is a type of 

24 business concern described 

25 in section 120.110(j) of title 


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1 13, Code of Federal Regula2 tions, or any successor regu3 lation, except as otherwise 

4 provided in the interim final 

5 rules of the Administration 

6 entitled ‘Business Loan Pro7 gram Temporary Changes; 

8 Paycheck Protection Pro9 gram—Eligibility of Certain 

10 Electric Cooperatives’ (85 

11 Fed. Reg. 29847 (May 19, 

12 2020)) and ‘Business Loan 

13 Program Temporary 

14 Changes; Paycheck Protec15 tion Program—Eligibility of 

16 Certain Telephone Coopera17 tives’ (85 Fed. Reg. 35550 

18 (June 11, 2020)) or any 

19 other guidance or rule 

20 issued or that may be issued 

21 by the Administrator; 

22 ‘‘(EE) is a type of busi23 ness concern described in 

24 section 120.110(n) of title 

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1 tions, or any successor regu2 lation, except as otherwise 

3 provided in the interim final 

4 rule of the Administration 

5 entitled ‘Business Loan Pro6 gram Temporary Changes; 

7 Paycheck Protection Pro8 gram—Additional Eligibility 

9 Revisions to First Interim 

10 Final Rule’ (85 Fed. Reg. 

11 38301 (June 26, 2020)) or 

12 any other guidance or rule 

13 issued or that may be issued 

14 by the Administrator; 

15 ‘‘(FF) is a type of busi16 ness concern described in 

17 section 120.110(o) of title 

18 13, Code of Federal Regula19 tions, or any successor regu20 lation, except as otherwise 

21 provided in any guidance or 

22 rule issued or that may be 

23 issued by the Administrator; 

24 ‘‘(GG) is an entity that 

25 is organized for research or 


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1 for engaging in advocacy in 

2 areas such as public policy 

3 or political strategy or other4 wise describes itself as a 

5 think tank in any public 

6 documents; 

7 ‘‘(HH) is an entity that 

8 would be described in the 

9 subsections listed in 

10 subitems (AA) through (GG) 

11 if the entity were a business 

12 concern; or 

13 ‘‘(II) is assigned, or 

14 was approved for a loan 

15 under paragraph (36) with, 

16 a North American Industry 

17 Classification System code 

18 beginning with 52; 

19 ‘‘(cc) any business concern 

20 or entity primarily engaged in 

21 political or lobbying activities, 

22 which shall include any entity 

23 that is organized for research or 

24 for engaging in advocacy in areas 

25 such as public policy or political 


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1 strategy or otherwise describes 

2 itself as a think tank in any pub3 lic documents; or 

4 ‘‘(dd) any business concern 

5 or entity— 

6 ‘‘(AA) for which an en7 tity created in or organized 

8 under the laws of the Peo9 ple’s Republic of China or 

10 the Special Administrative 

11 Region of Hong Kong, or 

12 that has significant oper13 ations in the People’s Re14 public of China or the Spe15 cial Administrative Region 

16 of Hong Kong, owns or 

17 holds, directly or indirectly, 

18 not less than 20 percent of 

19 the economic interest of the 

20 business concern or entity, 

21 including as equity shares or 

22 a capital or profit interest in 

23 a limited liability company 

24 or partnership; or 


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1 ‘‘(BB) that retains, as 

2 a member of the board of di3 rectors of the business con4 cern, a person who is a resi5 dent of the People’s Repub6 lic of China; and 

7 ‘‘(vii) the term ‘Tribal business con8 cern’ means a Tribal business concern de9 scribed in section 31(b)(2)(C). 

10 ‘‘(B) LOANS.—Except as otherwise pro11 vided in this paragraph, the Administrator may 

12 guarantee covered loans to eligible entities 

13 under the same terms, conditions, and processes 

14 as a loan made under paragraph (36). 

15 ‘‘(C) MAXIMUM LOAN AMOUNT.— 

16 ‘‘(i) IN GENERAL.—Except as other17 wise provided in this subparagraph, the 

18 maximum amount of a covered loan made 

19 to an eligible entity is the lesser of— 

20 ‘‘(I) the product obtained by mul21 tiplying— 

22 ‘‘(aa) the average total 

23 monthly payment for payroll 

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1 riod before the date on which the 

2 loan is made, by 

3 ‘‘(bb) 2.5; or 

4 ‘‘(II) $2,000,000. 

5 ‘‘(ii) SEASONAL EMPLOYERS.—The 

6 maximum amount of a covered loan made 

7 to an eligible entity that is a seasonal em8 ployer is the lesser of— 

9 ‘‘(I) the product obtained by mul10 tiplying— 

11 ‘‘(aa) at the election of the 

12 eligible entity, the average total 

13 monthly payments for payroll 

14 costs incurred or paid by the eli15 gible entity— 

16 ‘‘(AA) for a 12-week 

17 period beginning February 

18 15, 2019, or March 1, 2019, 

19 and ending June 30, 2019; 

20 or 

21 ‘‘(BB) for a consecutive 

22 12-week period between May 

23 1, 2019, and September 15, 

24 2019, by 

25 ‘‘(bb) 2.5; or 


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1 ‘‘(II) $1,000,000. 

2 ‘‘(iii) NEW ENTITIES.—The maximum 

3 amount of a covered loan made to an eligi4 ble entity that did not exist during the 1- 

5 year period preceding February 15, 2020, 

6 is the lesser of— 

7 ‘‘(I) the product obtained by mul8 tiplying— 

9 ‘‘(aa) the quotient obtained 

10 by dividing— 

11 ‘‘(AA) the sum of the 

12 total monthly payments by 

13 the eligible entity for payroll 

14 costs paid or incurred by the 

15 eligible entity as of the date 

16 on which the eligible entity 

17 applies for the covered loan, 

18 by 

19 ‘‘(BB) the number of 

20 months in which those pay21 roll costs were paid or in22 curred, by 

23 ‘‘(bb) 2.5; or 

24 ‘‘(II) $2,000,000. 


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1 ‘‘(iv) BUSINESS CONCERNS WITH

2 MORE THAN 1 PHYSICAL LOCATION.— 

3 ‘‘(I) IN GENERAL.—Any eligible 

4 entity that employs not more than 

5 300 employees per physical location of 

6 the eligible entity and that is assigned 

7 a North American Industry Classifica8 tion System Code beginning with 72 

9 at the time of disbursal shall be eligi10 ble to receive a covered loan. 

11 ‘‘(II) LIMIT FOR MULTIPLE LO12 CATIONS.—With respect to an eligible 

13 entity with more than 1 physical loca14 tion, the total amount of all covered 

15 loans shall be not more than 

16 $2,000,000. 

17 ‘‘(v) LOAN NUMBER LIMITATION.—An 

18 eligible entity may only receive 1 covered 

19 loan. 

20 ‘‘(vi) 90-DAY RULE FOR MAXIMUM

21 LOAN AMOUNT.—The maximum aggregate 

22 loan amount of loans guaranteed under 

23 this subsection that are approved for an el24 igible entity (including any affiliates) with25 in 90 days of approval of another loan 


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1 under this subsection for the eligible entity 

2 (including any affiliates) shall not exceed 

3 $10,000,000. 

4 ‘‘(D) EXCEPTION FROM CERTAIN CERTIFI5 CATION REQUIREMENTS.—An eligible entity ap6 plying for a covered loan shall not be required 

7 to make the certification described in subclause 

8 (III) or (IV) of paragraph (36)(G)(i). 

9 ‘‘(E) FEE WAIVER.—With respect to a cov10 ered loan— 

11 ‘‘(i) in lieu of the fee otherwise appli12 cable under paragraph (23)(A), the Ad13 ministrator shall collect no fee; and 

14 ‘‘(ii) in lieu of the fee otherwise appli15 cable under paragraph (18)(A), the Ad16 ministrator shall collect no fee. 

17 ‘‘(F) ELIGIBLE CHURCHES AND RELIGIOUS

18 ORGANIZATIONS.— 

19 ‘‘(i) SENSE OF CONGRESS.—It is the 

20 sense of Congress that the interim final 

21 rule of the Administration entitled ‘Busi22 ness Loan Program Temporary Changes; 

23 Paycheck Protection Program’ (85 Fed. 

24 Reg. 20817 (April 15, 2020)) properly 

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1 gious organizations for loans made under 

2 paragraph (36). 

3 ‘‘(ii) APPLICABILITY OF PROHIBI4 TION.—The prohibition on eligibility estab5 lished by section 120.110(k) of title 13, 

6 Code of Federal Regulations, or any suc7 cessor regulation, shall not apply to a cov8 ered loan. 

9 ‘‘(G) GROSS RECEIPTS FOR NONPROFIT

10 AND VETERANS ORGANIZATIONS.—For purposes 

11 of calculating gross receipts under subpara12 graph (A)(vi)(I)(cc) for an entity that is a non13 profit organization or a veterans organization, 

14 gross receipts— 

15 ‘‘(i) shall include proceeds from fund16 raising events, federated campaigns, gifts, 

17 donor-advised funds, and funds from simi18 lar sources; and 

19 ‘‘(ii) shall not include— 

20 ‘‘(I) Federal grants (excluding 

21 any loan forgiveness on loans received 

22 under paragraph (36) or this para23 graph); 

24 ‘‘(II) revenues from a supporting 

25 organization; 


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1 ‘‘(III) grants from private foun2 dations that are disbursed over the 

3 course of more than 1 calendar year; 

4 or 

5 ‘‘(IV) any contribution of prop6 erty other than money, stocks, bonds, 

7 and other securities, provided that the 

8 non-cash contribution is not sold by 

9 the organization in a transaction un10 related to the tax-exempt purpose of 

11 the organization. 

12 ‘‘(H) LOAN FORGIVENESS.— 

13 ‘‘(i) IN GENERAL.—Except as pro14 vided otherwise provided in this subpara15 graph, an eligible entity shall be eligible for 

16 forgiveness of indebtedness on a covered 

17 loan in the same manner as an eligible re18 cipient with respect to a loan made under 

19 paragraph (36), as described in section 

20 1106 of the CARES Act (15 U.S.C. 9005). 

21 ‘‘(ii) FORGIVENESS AMOUNT.—An eli22 gible entity shall be eligible for forgiveness 

23 of indebtedness on a covered loan in an 

24 amount equal to the sum of the following 


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1 costs incurred or expenditures made during 

2 the covered period: 

3 ‘‘(I) Payroll costs. 

4 ‘‘(II) Any payment of interest on 

5 any covered mortgage obligation 

6 (which shall not include any prepay7 ment of or payment of principal on a 

8 covered mortgage obligation). 

9 ‘‘(III) Any covered operations ex10 penditure. 

11 ‘‘(IV) Any covered property dam12 age cost. 

13 ‘‘(V) Any payment on any cov14 ered rent obligation. 

15 ‘‘(VI) Any covered utility pay16 ment. 

17 ‘‘(VII) Any covered supplier cost. 

18 ‘‘(VIII) Any covered worker pro19 tection expenditure. 

20 ‘‘(iii) LIMITATION ON FORGIVENESS

21 FOR ALL ELIGIBLE ENTITIES.—The for22 giveness amount under this subparagraph 

23 shall be equal to the lesser of— 

24 ‘‘(I) the amount described in 

25 clause (ii); and 


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1 ‘‘(II) the amount equal to the 

2 quotient obtained by dividing— 

3 ‘‘(aa) the amount of the cov4 ered loan used for payroll costs 

5 during the covered period; and 

6 ‘‘(bb) 0.60. 

7 ‘‘(I) LENDER ELIGIBILITY.—Except as 

8 otherwise provided in this paragraph, a lender 

9 approved to make loans under paragraph (36) 

10 may make covered loans under the same terms 

11 and conditions as in paragraph (36). 

12 ‘‘(J) REIMBURSEMENT FOR LOAN PROC13 ESSING AND SERVICING.—The Administrator 

14 shall reimburse a lender authorized to make a 

15 covered loan in an amount that is— 

16 ‘‘(i) 3 percent of the principal amount 

17 of the financing of the covered loan up to 

18 $350,000; and 

19 ‘‘(ii) 1 percent of the principal 

20 amount of the financing of the covered 

21 loan above $350,000, if applicable. 

22 ‘‘(K) SET ASIDE FOR SMALL ENTITIES.— 

23 Not less than $25,000,000,000 of the total 

24 amount of covered loans guaranteed by the Ad25 ministrator shall be made to eligible entities 


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1 with not more than 10 employees as of Feb2 ruary 15, 2020. 

3 ‘‘(L) SET ASIDE FOR COMMUNITY FINAN4 CIAL INSTITUTIONS, SMALL INSURED DEPOSI5 TORY INSTITUTIONS, CREDIT UNIONS, AND

6 FARM CREDIT SYSTEM INSTITUTIONS.—Not less 

7 than $10,000,000,000 of the total amount of 

8 covered loans guaranteed by the Administrator 

9 shall be made by— 

10 ‘‘(i) community financial institutions; 

11 ‘‘(ii) insured depository institutions 

12 with consolidated assets of less than 

13 $10,000,000,000; 

14 ‘‘(iii) credit unions with consolidated 

15 assets of less than $10,000,000,000; and 

16 ‘‘(iv) institutions of the Farm Credit 

17 System chartered under the Farm Credit 

18 Act of 1971 (12 U.S.C. 2001 et seq.) with 

19 consolidated assets of less than 

20 $10,000,000,000 (not including the Fed21 eral Agricultural Mortgage Corporation). 

22 ‘‘(M) PUBLICATION OF GUIDANCE.—Not 

23 later than 10 days after the date of enactment 

24 of this paragraph, the Administrator shall issue 

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1 ital for minority, underserved, veteran, and 

2 women-owned business concerns for the purpose 

3 of ensuring equitable access to covered loans. 

4 ‘‘(N) STANDARD OPERATING PROCE5 DURE.—The Administrator shall, to the max6 imum extent practicable, allow a lender ap7 proved to make covered loans to use existing 

8 program guidance and standard operating pro9 cedures for loans made under this subsection. 

10 ‘‘(O) COMPLIANCE WITH OVERSIGHT RE11 QUIREMENTS.— 

12 ‘‘(i) IN GENERAL.—Except as pro13 vided in clause (ii), on and after the date 

14 of enactment of this paragraph, the Ad15 ministrator shall comply with any data or 

16 information requests or inquiries made by 

17 the Comptroller General of the United 

18 States or the Inspector General of any 

19 agency not later than 30 days (or such 

20 later date as the Comptroller General or 

21 Inspector General, as applicable, may 

22 specify) after receiving the request or in23 quiry. 

24 ‘‘(ii) EXCEPTION.—If the Adminis25 trator is unable to comply with a request 


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1 or inquiry described in clause (i) within the 

2 30-day period or, if applicable, later period 

3 described in that clause, the Administrator 

4 shall, during that 30-day (or later) period, 

5 submit to the Committee on Small Busi6 ness and Entrepreneurship of the Senate 

7 and the Committee on Small Business of 

8 the House of Representatives a notification 

9 that includes a detailed justification for the 

10 inability of the Administrator to comply 

11 with the request or inquiry. 

12 ‘‘(P) PROHIBITION ON USE OF PROCEEDS

13 FOR LOBBYING ACTIVITIES.—None of the pro14 ceeds of a covered loan may be used for lob15 bying activities, as defined in section 3 of the 

16 Lobbying Disclosure Act of 1995 (2 U.S.C. 

17 1602).’’. 

18 SEC. 7. CONTINUED ACCESS TO THE PAYCHECK PROTEC19 TION PROGRAM. 

20 (a) IN GENERAL.—Section 7(a)(36)(E)(ii) of the 

21 Small Business Act (15 U.S.C. 636(a)(36)(E)(ii)) is 

22 amended by striking ‘‘$10,000,000’’ and inserting 

23 ‘‘$2,000,000’’. 

24 (b) APPLICABILITY OF MAXIMUM LOAN AMOUNT

25 CALCULATION.— 


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1 (1) DEFINITIONS.—In this subsection, the 

2 terms ‘‘covered loan’’ and ‘‘eligible recipient’’ have 

3 the meanings given those terms in section 7(a)(36) 

4 of the Small Business Act (15 U.S.C. 636(a)(36)). 

5 (2) APPLICABILITY.—The amendment made by 

6 subsection (a) shall apply only with respect to a cov7 ered loan applied for by an eligible recipient on or 

8 after the date of enactment of this Act. 

9 SEC. 8. INCREASED ABILITY FOR PAYCHECK PROTECTION 

10 PROGRAM BORROWERS TO REQUEST AN IN11 CREASE IN LOAN AMOUNT DUE TO UPDATED 

12 REGULATIONS. 

13 (a) DEFINITIONS.—In this section, the terms ‘‘cov14 ered loan’’ and ‘‘eligible recipient’’ have the meanings 

15 given those terms in section 7(a)(36) of the Small Busi16 ness Act (15 U.S.C. 636(a)(36)). 

17 (b) INCREASED AMOUNT.—Notwithstanding the in18 terim final rule issued by the Administration entitled 

19 ‘‘Business Loan Program Temporary Changes; Paycheck 

20 Protection Program—Loan Increases’’ (85 Fed. Reg. 

21 29842 (May 19, 2020)), an eligible recipient of a covered 

22 loan that is eligible for an increased covered loan amount 

23 as a result of any interim final rule that allows for covered 

24 loan increases may submit a request for an increase in 

25 the covered loan amount even if— 


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1 (1) the initial covered loan amount has been 

2 fully disbursed; or 

3 (2) the lender of the initial covered loan has 

4 submitted to the Administration a Form 1502 report 

5 related to the covered loan. 

6 SEC. 9. CALCULATION OF MAXIMUM LOAN AMOUNT FOR 

7 FARMERS AND RANCHERS UNDER THE PAY8 CHECK PROTECTION PROGRAM. 

9 (a) IN GENERAL.—Section 7(a)(36) of the Small 

10 Business Act (15 U.S.C. 636(a)(36)), as amended by sec11 tion 8 of this Act, is further amended— 

12 (1) in subparagraph (E), in the matter pre13 ceding clause (i), by striking ‘‘During’’ and inserting 

14 ‘‘Except as provided in subparagraph (T), during’’; 

15 and 

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

17 ‘‘(T) CALCULATION OF MAXIMUM LOAN

18 AMOUNT FOR FARMERS AND RANCHERS.— 

19 ‘‘(i) DEFINITION.—In this subpara20 graph, the term ‘covered recipient’ means 

21 an eligible recipient that— 

22 ‘‘(I) operates as a sole propri23 etorship or as an independent con24 tractor, or is an eligible self-employed 

25 individual; 


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1 ‘‘(II) reports farm income or ex2 penses on a Schedule F (or any equiv3 alent successor schedule); and 

4 ‘‘(III) was in business during the 

5 period beginning on February 15, 

6 2019, and ending on June 30, 2019. 

7 ‘‘(ii) NO EMPLOYEES.—With respect 

8 to covered recipient without employees, the 

9 maximum covered loan amount shall be the 

10 lesser of— 

11 ‘‘(I) the sum of— 

12 ‘‘(aa) the product obtained 

13 by multiplying— 

14 ‘‘(AA) the gross income 

15 of the covered recipient in 

16 2019, as reported on a 

17 Schedule F (or any equiva18 lent successor schedule), 

19 that is not more than 

20 $100,000, divided by 12; 

21 and 

22 ‘‘(BB) 2.5; and 

23 ‘‘(bb) the outstanding 

24 amount of a loan under sub25 section (b)(2) that was made 


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1 during the period beginning on 

2 January 31, 2020, and ending on 

3 April 3, 2020, that the borrower 

4 intends to refinance under the 

5 covered loan, not including any 

6 amount of any advance under the 

7 loan that is not required to be re8 paid; or 

9 ‘‘(II) $2,000,000. 

10 ‘‘(iii) WITH EMPLOYEES.—With re11 spect to a covered recipient with employ12 ees, the maximum covered loan amount 

13 shall be calculated using the formula de14 scribed in subparagraph (E), except that 

15 the gross income of the covered recipient 

16 described in clause (ii)(I)(aa)(AA) of this 

17 subparagraph, as divided by 12, shall be 

18 added to the sum calculated under sub19 paragraph (E)(i)(I). 

20 ‘‘(iv) RECALCULATION.—A lender that 

21 made a covered loan to a covered recipient 

22 before the date of enactment of this sub23 paragraph may, at the request of the cov24 ered recipient— 


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1 ‘‘(I) recalculate the maximum 

2 loan amount applicable to that cov3 ered loan based on the formula de4 scribed in clause (ii) or (iii), as appli5 cable, if doing so would result in a 

6 larger covered loan amount; and 

7 ‘‘(II) provide the covered recipi8 ent with additional covered loan 

9 amounts based on that recalcula10 tion.’’. 

11 SEC. 10. FARM CREDIT SYSTEM INSTITUTIONS. 

12 (a) DEFINITION OF FARM CREDIT SYSTEM INSTITU13 TION.—In this section, the term ‘‘Farm Credit System in14 stitution’’— 

15 (1) means an institution of the Farm Credit 

16 System chartered under the Farm Credit Act of 

17 1971 (12 U.S.C. 2001 et seq.); and 

18 (2) does not include the Federal Agricultural 

19 Mortgage Corporation. 

20 (b) FACILITATION OF PARTICIPATION IN PPP AND

21 SECOND DRAW LOANS.— 

22 (1) APPLICABLE RULES.—Solely with respect to 

23 loans under paragraphs (36) and (37) of section 

24 7(a) of the Small Business Act (15 U.S.C. 636(a)), 

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1 ance issued as of July 14, 2020, and compliance 

2 with such regulations and guidance, shall be deemed 

3 functionally equivalent to requirements referenced in 

4 section 3(a)(iii)(II) of the interim final rule of the 

5 Administration entitled ‘‘Business Loan Program 

6 Temporary Changes; Paycheck Protection Program’’ 

7 (85 Fed. Reg. 20811 (April 15, 2020)) or any simi8 lar requirement referenced in that interim final rule 

9 in implementing such paragraph (37). 

10 (2) APPLICABILITY OF CERTAIN LOAN RE11 QUIREMENTS.—For purposes of making loans under 

12 paragraph (36) or (37) of section 7(a) of the Small 

13 Business Act (15 U.S.C. 636(a)) or forgiving those 

14 loans in accordance with section 1106 of the CARES 

15 Act (15 U.S.C. 9005) and subparagraph (H) of such 

16 paragraph (37), sections 4.13, 4.14, and 4.14A of 

17 the Farm Credit Act of 1971 (12 U.S.C. 2199, 

18 2202, 2202a) (including regulations issued under 

19 those sections) shall not apply. 

20 (3) RISK WEIGHT.— 

21 (A) IN GENERAL.—With respect to the ap22 plication of Farm Credit Administration capital 

23 requirements, a loan described in subparagraph 

24 (B)— 


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1 (i) shall receive a risk weight of zero 

2 percent; and 

3 (ii) shall not be included in the cal4 culation of any applicable leverage ratio or 

5 other applicable capital ratio or calculation. 

6 (B) LOANS DESCRIBED.—A loan referred 

7 to in subparagraph (A) is— 

8 (i) a loan made by a Farm Credit 

9 Bank described in section 1.2(a) of the 

10 Farm Credit Act of 1971 (12 U.S.C. 

11 2002(a)) to a Federal Land Bank Associa12 tion, a Production Credit Association, or 

13 an agricultural credit association described 

14 in that section to make loans under para15 graph (36) or (37) of section 7(a) of the 

16 Small Business Act (15 U.S.C. 636(a)) or 

17 forgive those loans in accordance with sec18 tion 1106 of the CARES Act (15 U.S.C. 

19 9005) and subparagraph (H) of such para20 graph (37); or 

21 (ii) a loan made by a Federal Land 

22 Bank Association, a Production Credit As23 sociation, an agricultural credit associa24 tion, or the bank for cooperatives described 

25 in section 1.2(a) of the Farm Credit Act of 


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1 1971 (12 U.S.C. 2002(a)) under para2 graph (36) or (37) of section 7(a) of the 

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

4 (4) RESERVATION OF LOAN GUARANTEES.— 

5 Section 7(a)(36)(S) of the Small Business Act (15 

6 U.S.C. 636(a)(36)(S)) is amended— 

7 (A) in clause (i)— 

8 (i) in subclause (I), by striking ‘‘and’’ 

9 at the end; 

10 (ii) in subclause (II), by striking the 

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

12 and 

13 (iii) by adding at the end the fol14 lowing: 

15 ‘‘(III) institutions of the Farm 

16 Credit System chartered under the 

17 Farm Credit Act of 1971 (12 U.S.C. 

18 2001 et seq.) with consolidated assets 

19 of not less than $10,000,000,000 and 

20 less than $50,000,000,000.’’; and 

21 (B) in clause (ii)— 

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

23 ‘‘and’’ at the end; 


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

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

3 and 

4 (iii) by adding at the end the fol5 lowing: 

6 ‘‘(IV) institutions of the Farm 

7 Credit System chartered under the 

8 Farm Credit Act of 1971 (12 U.S.C. 

9 2001 et seq.) with consolidated assets 

10 of less than $10,000,000,000.’’. 

11 SEC. 11. DEFINITION OF SEASONAL EMPLOYER. 

12 (a) PPP LOANS.—Section 7(a)(36)(A) of the Small 

13 Business Act (15 U.S.C. 636(a)(36)(A)) is amended— 

14 (1) in clause (xi), by striking ‘‘and’’ at the end; 

15 (2) in clause (xii), by striking the period at the 

16 end and inserting ‘‘; and’’; and 

17 (3) by adding at the end the following: 

18 ‘‘(xiii) the term ‘seasonal employer’ 

19 means an eligible recipient that— 

20 ‘‘(I) does not operate for more 

21 than 7 months in any calendar year; 

22 or 

23 ‘‘(II) during the preceding cal24 endar year, had gross receipts for any 

25 6 months of that year that were not 


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1 more than 33.33 percent of the gross 

2 receipts of the employer for the other 

3 6 months of that year.’’. 

4 (b) LOAN FORGIVENESS.—Paragraph (12) of section 

5 1106(a) of the CARES Act (15 U.S.C. 9005(a)), as so 

6 redesignated by section 1(b) of this Act, is amended to 

7 read as follows: 

8 ‘‘(12) the terms ‘payroll costs’ and ‘seasonal 

9 employer’ have the meanings given those terms in 

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

11 U.S.C. 636(a)(36)).’’. 

12 SEC. 12. ELIGIBILITY OF CERTAIN NONPROFIT ORGANIZA13 TIONS UNDER THE PAYCHECK PROTECTION 

14 PROGRAM. 

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

16 U.S.C. 636(a)(36)(D)) is amended— 

17 (1) in clause (v), by inserting ‘‘or whether an 

18 entity described in clause (vii) employs not more 

19 than 300 employees,’’ after ‘‘clause (i)(I),’’; and 

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

21 ‘‘(vii) ELIGIBILITY FOR CERTAIN

22 501(c)(6) ORGANIZATIONS.— 

23 ‘‘(I) IN GENERAL.—Except as 

24 provided in subclause (II), any organi25 zation that is described in section 


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1 501(c)(6) of the Internal Revenue 

2 Code and that is exempt from tax3 ation under section 501(a) of such 

4 Code (excluding professional football 

5 leagues and organizations with the 

6 purpose of promoting or participating 

7 in a political campaign or other activ8 ity) shall be eligible to receive a cov9 ered loan if— 

10 ‘‘(aa) the organization does 

11 not receive more than 10 percent 

12 of its receipts from lobbying ac13 tivities; 

14 ‘‘(bb) the lobbying activities 

15 of the organization do not com16 prise more than 10 percent of the 

17 total activities of the organiza18 tion; and 

19 ‘‘(cc) the organization em20 ploys not more than 300 employ21 ees. 

22 ‘‘(II) DESTINATION MARKETING

23 ORGANIZATIONS.—Notwithstanding 

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1 nization shall be eligible to receive a 

2 covered loan if— 

3 ‘‘(aa) the destination mar4 keting organization does not re5 ceive more than 10 percent of its 

6 receipts from lobbying activities; 

7 ‘‘(bb) the lobbying activities 

8 of the destination marketing or9 ganization do not comprise more 

10 than 10 percent of the total ac11 tivities of the organization; 

12 ‘‘(cc) the destination mar13 keting organization employs not 

14 more than 300 employees; and 

15 ‘‘(dd) the destination mar16 keting organization— 

17 ‘‘(AA) is described in 

18 section 501(c) of the Inter19 nal Revenue Code and is ex20 empt from taxation under 

21 section 501(a) of such Code; 

22 or 

23 ‘‘(BB) is a quasi-gov24 ernmental entity or is a po25 litical subdivision of a State 


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1 or local government, includ2 ing any instrumentality of 

3 those entities. 

4 ‘‘(viii) NONPROFITS SERVING CERTAIN

5 DISABLED INDIVIDUALS.— 

6 ‘‘(I) SIZE STANDARD WAIVER.— 

7 For the purposes of determining 

8 whether a covered nonprofit organiza9 tion is eligible to receive a covered 

10 loan, the Administrator may deem 

11 such organization as employing not 

12 more than the size standard in num13 ber of employees established by the 

14 Administration for the industry in 

15 which such organization operates or, 

16 if no such size standard is applicable, 

17 not more than 500 employees. 

18 ‘‘(II) REVENUE NOT BASIS FOR

19 INELIGIBILITY.—A covered nonprofit 

20 organization may not be determined 

21 to be ineligible for a covered loan due 

22 to the annual gross receipts of such 

23 organization. 

24 ‘‘(III) COVERED NONPROFIT OR25 GANIZATION DEFINED.—In this 


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1 clause, the term ‘covered nonprofit or2 ganization’ means a nonprofit organi3 zation that— 

4 ‘‘(aa) that provides home 

5 and community-based services (as 

6 referred to in section 1915(c)(1) 

7 of the Social Security Act (42 

8 U.S.C. 1396n(c)(1))) to individ9 uals with developmental disabil10 ities (as defined in section 102(8) 

11 of the Developmental Disabilities 

12 Assistance and Bill of Rights Act 

13 of 2000 (42 U.S.C. 15002(8))); 

14 and 

15 ‘‘(bb) whose annual gross 

16 receipts do not exceed 

17 $30,000,000.’’. 

18 SEC. 13. PROHIBITION ON USE OF LOAN PROCEEDS FOR 

19 LOBBYING ACTIVITIES. 

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

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

22 the following: 

23 ‘‘(vi) PROHIBITION.—None of the pro24 ceeds of a covered loan may be used for 

25 lobbying activities, as defined in section 3 


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1 of the Lobbying Disclosure Act of 1995 (2 

2 U.S.C. 1602).’’. 

3 SEC. 14. EFFECTIVE DATE; APPLICABILITY. 

4 The amendments made to paragraph (36) of section 

5 7(a) of the Small Business Act (15 U.S.C. 636(a)) and 

6 title I of the CARES Act (Public Law 116–136) under 

7 this Act, except for sections 7 and 17 of this Act, shall 

8 be effective as if included in the CARES Act and shall 

9 apply to any loan made pursuant to section 7(a)(36) of 

10 the Small Business Act (15 U.S.C. 636(a)(36)). 

11 SEC. 15. BANKRUPTCY PROVISIONS. 

12 (a) IN GENERAL.—Section 364 of title 11, United 

13 States Code, is amended by adding at the end the fol14 lowing: 

15 ‘‘(g)(1) The court, after notice and a hearing, may 

16 authorize a debtor in possession or a trustee that is au17 thorized to operate the business of the debtor under sec18 tion 1183, 1184, 1203, 1204, or 1304 of this title to ob19 tain a loan under section 7(a)(36) of the Small Business 

20 Act (15 U.S.C. 636(a)(36)), and such loan shall be treated 

21 as a debt to the extent the loan is not forgiven under sec22 tion 1106 of the CARES Act (15 U.S.C. 9005) with pri23 ority equal to a claim of the kind specified in subsection 

24 (c)(1) of this section. 


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1 ‘‘(2) The trustee may incur debt described in para2 graph (1) notwithstanding any provision in a contract, 

3 prior order authorizing the trustee to incur debt under this 

4 section, prior order authorizing the trustee to use cash col5 lateral under section 363, or applicable law that prohibits 

6 the debtor from incurring additional debt. 

7 ‘‘(3) The court shall hold a hearing within 7 days 

8 after the filing and service of the motion to obtain a loan 

9 described in paragraph (1).’’. 

10 (b) ALLOWANCE OF ADMINISTRATIVE EXPENSES.— 

11 Section 503(b) of title 11, United States Code, is amend12 ed— 

13 (1) in paragraph (8)(B), by striking ‘‘and’’ at 

14 the end; 

15 (2) in paragraph (9), by striking the period at 

16 the end and inserting ‘‘; and’’; and 

17 (3) by adding at the end the following: 

18 ‘‘(10) any debt incurred under section 

19 364(g)(1) of this title.’’. 

20 (c) CONFIRMATION OF PLAN FOR REORGANIZA21 TION.—Section 1191 of title 11, United States Code, is 

22 amended by adding at the end the following: 

23 ‘‘(f) SPECIAL PROVISION RELATED TO COVID–19 

24 PANDEMIC.—Notwithstanding section 1129(a)(9)(A) of 

25 this title and subsection (e) of this section, a plan that 


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1 provides for payment of a claim of a kind specified in sec2 tion 503(b)(10) of this title may be confirmed under sub3 section (b) of this section if the plan proposes to make 

4 payments on account of such claim when due under the 

5 terms of the loan giving rise to such claim.’’. 

6 (d) CONFIRMATION OF PLAN FOR FAMILY FARMERS

7 AND FISHERMEN.—Section 1225 of title 11, United 

8 States Code, is amended by adding at the end the fol9 lowing: 

10 ‘‘(d) Notwithstanding section 1222(a)(2) of this title 

11 and subsection (b)(1) of this section, a plan that provides 

12 for payment of a claim of a kind specified in section 

13 503(b)(10) of this title may be confirmed if the plan pro14 poses to make payments on account of such claim when 

15 due under the terms of the loan giving rise to such 

16 claim.’’. 

17 (e) CONFIRMATION OF PLAN FOR INDIVIDUALS.— 

18 Section 1325 of title 11, United States Code, is amended 

19 by adding at the end the following: 

20 ‘‘(d) Notwithstanding section 1322(a)(2) of this title 

21 and subsection (b)(1) of this section, a plan that provides 

22 for payment of a claim of a kind specified in section 

23 503(b)(10) of this title may be confirmed if the plan pro24 poses to make payments on account of such claim when 


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1 due under the terms of the loan giving rise to such 

2 claim.’’. 

3 (f) EFFECTIVE DATE; SUNSET.— 

4 (1) EFFECTIVE DATE.—The amendments made 

5 by subsections (a) through (e) shall— 

6 (A) take effect on the date on which the 

7 Administrator of the Small Business Adminis8 tration submits to the Director of the Executive 

9 Office for United States Trustees a written de10 termination that, subject to satisfying any other 

11 eligibility requirements, any debtor in posses12 sion or trustee that is authorized to operate the 

13 business of the debtor under section 1183, 

14 1184, 1203, 1204, or 1304 of title 11, United 

15 States Code, would be eligible for a loan under 

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

17 U.S.C. 636(a)(36)); and 

18 (B) apply to any case pending on or com19 menced on or after the date described in sub20 paragraph (A). 

21 (2) SUNSET.— 

22 (A) IN GENERAL.—If the amendments 

23 made by this section take effect under para24 graph (1), effective on the date that is 2 years 

25 after the date of enactment of this Act— 


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1 (i) section 364 of title 11, United 

2 States Code, is amended by striking sub3 section (g); 

4 (ii) section 503(b) of title 11, United 

5 States Code, is amended— 

6 (I) in paragraph (8)(B), by add7 ing ‘‘and’’ at the end; 

8 (II) in paragraph (9), by striking 

9 ‘‘; and’’ at the end and inserting a pe10 riod; and 

11 (III) by striking paragraph (10); 

12 (iii) section 1191 of title 11, United 

13 States Code, is amended by striking sub14 section (f); 

15 (iv) section 1225 of title 11, United 

16 States Code, is amended by striking sub17 section (d); and 

18 (v) section 1325 of title 11, United 

19 States Code, is amended by striking sub20 section (d). 

21 (B) APPLICABILITY.—Notwithstanding the 

22 amendments made by subparagraph (A) of this 

23 paragraph, if the amendments made by sub24 sections (a), (b), (c), (d), and (e) take effect 

25 under paragraph (1) of this subsection, such 


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1 amendments shall apply to any case under title 

2 11, United States Code, commenced before the 

3 date that is 2 years after the date of enactment 

4 of this Act. 

5 SEC. 16. CONFLICTS OF INTEREST. 

6 (a) DEFINITIONS.—In this section: 

7 (1) CONTROLLING INTEREST.—The term ‘‘con8 trolling interest’’ means owning, controlling, or hold9 ing not less than 20 percent, by vote or value, of the 

10 outstanding amount of any class of equity interest in 

11 an entity. 

12 (2) COVERED ENTITY.— 

13 (A) DEFINITION.—The term ‘‘covered enti14 ty’’ means an entity in which a covered indi15 vidual directly or indirectly holds a controlling 

16 interest. 

17 (B) TREATMENT OF SECURITIES.—For the 

18 purpose of determining whether an entity is a 

19 covered entity, the securities owned, controlled, 

20 or held by 2 or more individuals who are related 

21 as described in paragraph (3)(B) shall be ag22 gregated. 

23 (3) COVERED INDIVIDUAL.—The term ‘‘covered 

24 individual’’ means— 


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1 (A) the President, the Vice President, the 

2 head of an Executive department, or a Member 

3 of Congress; and 

4 (B) the spouse, child, son-in-law, or daugh5 ter-in-law, as determined under applicable com6 mon law, of an individual described in subpara7 graph (A). 

8 (4) EXECUTIVE DEPARTMENT.—The term ‘‘Ex9 ecutive department’’ has the meaning given the term 

10 in section 101 of title 5, United States Code. 

11 (5) MEMBER OF CONGRESS.—The term ‘‘Mem12 ber of Congress’’ means a Member of the Senate or 

13 House of Representatives, a Delegate to the House 

14 of Representatives, and the Resident Commissioner 

15 from Puerto Rico. 

16 (6) EQUITY INTEREST.—The term ‘‘equity in17 terest’’ means— 

18 (A) a share in an entity, without regard to 

19 whether the share is— 

20 (i) transferable; or 

21 (ii) classified as stock or anything 

22 similar; 

23 (B) a capital or profit interest in a limited 

24 liability company or partnership; or 


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1 (C) a warrant or right, other than a right 

2 to convert, to purchase, sell, or subscribe to a 

3 share or interest described in subparagraph (A) 

4 or (B), respectively. 

5 (b) REQUIREMENT.—The principal executive officer 

6 and the principal financial officer, or individuals per7 forming similar functions, of an entity seeking to enter 

8 a transaction made under paragraph (36) or (37) of sec9 tion 7(a) of the Small Business Act (15 U.S.C. 636(a)), 

10 as added and amended by this Act, shall, before that 

11 transaction is approved, disclose to the Administrator 

12 whether the entity is a covered entity. 

13 (c) APPLICABILITY.—The requirement under sub14 section (b)— 

15 (1) shall apply with respect to any transaction 

16 made under paragraph (36) or (37) of section 7(a) 

17 of the Small Business Act (15 U.S.C. 636(a)), as 

18 added and amended by this Act, on or after the date 

19 of enactment of this Act; and 

20 (2) shall not apply with respect to— 

21 (A) any transaction described in paragraph 

22 (1) that was made before the date of enactment 

23 of this Act; or 

24 (B) forgiveness under section 1106 of the 

25 CARES Act (15 U.S.C. 9005) or any other proVerDate Sep 11 2014 19:31 Sep 25, 2020 Jkt 099200 PO 00000 Frm 00058 Fmt 6652 Sfmt 6201 E:\BILLS\H8265.IH H8265

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1 vision of law of any loan associated with any 

2 transaction described in paragraph (1) that was 

3 made before the date of enactment of this Act. 

4 SEC. 17. FUNDING. 

5 (a) COMMITMENT AUTHORITY.—Section 1102(b) of 

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

7 (1) in paragraph (1)— 

8 (A) in the paragraph heading, by inserting 

9 ‘‘AND SECOND DRAW’’ after ‘‘PPP’’; 

10 (B) by striking ‘‘August 8, 2020’’ and in11 serting ‘‘December 31, 2020’’; and 

12 (C) by striking ‘‘paragraph (36)’’ and in13 serting ‘‘paragraphs (36) and (37)’’; and 

14 (2) by amending paragraph (2) to read as fol15 lows: 

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

17 2020, the amount authorized for commitments for 

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

19 636(a)) under the heading ‘Small Business Adminis20 tration—Business Loans Program Account’ in the 

21 Financial Services and General Government Appro22 priations Act, 2020 (division C of Public Law 116– 

23 93) shall apply with respect to any commitments 

24 under such section 7(a) other than under para25 graphs (36) and (37) of such section 7(a).’’. 


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1 (b) AMENDMENT TO DIRECT APPROPRIATION.—Sec2 tion 1107(a)(1) of the CARES Act (15 U.S.C. 

3 9006(a)(1)) is amended by striking ‘‘paragraph (36)’’ and 

4 all that follows through the semicolon at the end and in5 serting ‘‘paragraph (36) of section 7(a) of the Small Busi6 ness Act (15 U.S.C. 636(a));’’. 

7 SEC. 18. EMERGENCY RULEMAKING AUTHORITY. 

8 Not later than 30 days after the date of enactment 

9 of this Act, the Administrator shall issue regulations to 

10 carry out this Act and the amendments made by this Act 

11 without regard to the notice requirements under section 

12 553(b) of title 5, United States Code. 

13 SEC. 19. DEFINITIONS. 

14 In this Act: 

15 (1) ADMINISTRATION; ADMINISTRATOR.—The 

16 terms ‘‘Administration’’ and ‘‘Administrator’’ mean 

17 the Small Business Administration and the Adminis18 trator thereof. 

19 (2) SMALL BUSINESS CONCERN.—The term 

20 ‘‘small business concern’’ has the meaning given the 

21 term in section 3 of the Small Business Act (15 

22 U.S.C. 632). 

Æ 


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