PPP Flexibility for Farmers, Ranchers, and the Self-Employed Act

To modify the maximum paycheck protection program loan amount for farmers and ranchers, sole proprietors, independent contractors, and self-employed individuals. 1. Calculation of maximum PPP loan amount (a) In general Section 7(a)(36)(V) of the Small Business Act ( 15 U.S.C. 636(a)(36)(V) (1) by striking clause (i) and inserting the following: (i) Definition In this subparagraph, the term covered recipient (I) (aa) operates as a sole proprietorship, as an independent contractor, or as a partnership with gross farming income from self-employment; or (bb) is an eligible self-employed individual; (II) reports farm income or expenses on a Schedule F (or any equivalent successor schedule); and (III) was in business as of February 15, 2020. ; and (2) by striking clause (iv) and inserting the following: (iv) Partnerships with no employees With respect to a partnership without employees, the maximum covered loan amount shall be equal to the sum of— (I) the product obtained by multiplying— (aa) the gross income, limited to the amount attributable to general partners as determined by the sum of their distributive shares of gross farming income from self-employment, that is not more than $100,000 per partner, and no more than $500,000 in total, divided by 12; and (bb) 2.5; and (II) the outstanding amount of a loan under subsection (b)(2) that was made during the period beginning on January 31, 2020 and ending on April 3, 2020 that the borrower intends to refinance under the covered loan, not including any amount of any advance under the loan that is not required to be repaid. (v) Recalculation (I) In general A lender that made a covered loan before the date of enactment of the PPP Flexibility for Farmers, Ranchers, and the Self-Employed Act (aa) recalculate the maximum loan amount applicable to that covered loan based on the formula described in clause (ii), (iii), or (iv), as applicable, if doing so would result in a larger covered loan amount; and (bb) provide the covered recipient with additional covered loan amounts based on that recalculation. (II) Loan limitation For purposes of receiving a recalculated loan amount related to a covered loan under subclause (I), paragraph (37)(F) shall not apply. (III) Effect of forgiveness Subject to rules issued by the Administrator, a covered recipient shall be eligible to submit a request for a recalculated loan amount related to a covered loan under subclause (I) without regard to whether the covered recipient has sought or received forgiveness with respect to the applicable covered loan under section 7A. (IV) Forgiveness of recalculated loan amount For purposes of this subparagraph, as soon as is practicable upon expenditure of additional covered loan amounts provided under subclause (I)— (aa) an eligible recipient shall attest to compliance with applicable requirements under this paragraph; and (bb) the additional covered loan amounts shall be forgiven under section 7A. (V) Reimbursement for loan processing The Administrator shall reimburse a lender for processing recalculation requests under this clause in an amount determined by the Administrator. . (b) Effective date; applicability The amendments made by subsection (a) shall be effective as if included in the CARES Act ( Public Law 116–136 15 U.S.C. 636(a)(36)

Summary: PPP Flexibility for Farmers, Ranchers, and the Self-Employed Act This bill makes various changes to the Paycheck Protection Program (PPP) with respect to certain loans, loan applicants, and loan recipients. First, the bill permits farming partnerships with gross farming income from self-employment to request a recalculation of the amount of their PPP loans based on the partners' distributive shares of gross income from the partnership. The recalculation is available retroactively for loans made on or before the date of enactment of this bill. Additionally, applicants for PPP loans may calculate their maximum loan amount based on the applicant's Internal Revenue Service Form 1040, Schedule C (i.e., profit or loss from a business). This applies retroactively to PPP loans made or approved on or before December 27, 2020. The bill also increases the maximum amount of a second draw PPP loan for individuals who received PPP loan forgiveness. The maximum second draw PPP loan amount for an eligible individual includes the increased PPP loan amount the individual would have received under the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act had the individual not already received loan forgiveness. This applies retroactively to second draw loans made on for before the date of enactment of this bill. The bill changes from a quarterly period to any contiguous 90-day period the calculation of revenue loss in determining eligibility for a second draw PPP loan. The bill also extends certain dates with respect to the administration of the PPP.