P4 Act

To provide for supplemental loans under the Paycheck Protection Program. 1. Short title This Act may be cited as the Prioritized Paycheck Protection Program Act P4 Act 2. Paycheck Protection Program improvements (a) Extension for certain business concerns Section 7(a)(36)(B) of the Small Business Act ( 15 U.S.C. 636(a)(36)(B) (1) by striking Except (i) In general Except ; and (2) by adding at the end the following: (ii) Supplemental PPP loans (I) Definitions In this clause— (aa) the terms exchange issuer security 15 U.S.C. 78c(a) (bb) the term gross receipts section 448(c) (cc) the term national securities exchange 15 U.S.C. 78f (dd) the term publicly traded entity (ee) the term smaller concern (AA) has not more than 100 employees; (BB) operates under a sole proprietorship or as an independent contractor; or (CC) is an eligible self-employed individual; and (ff) the term significant loss in revenue (AA) the gross receipts of the eligible recipient during the first or second calendar quarter of 2020 are less than 50 percent of the gross receipts of the eligible recipient during the same calendar quarter in 2019; (BB) if the eligible recipient was not in business on April 1, 2019, the gross receipts of the eligible recipient during any 2-month period during the first 2 calendar quarters of 2020 are less than 50 percent of the amount of the gross receipts of the eligible recipient during any prior 2-month period during the first 2 calendar quarters of 2020; or (CC) if the eligible recipient is a seasonal employer, as determined by the Administrator, the gross receipts of the eligible recipient during any 2-month period during the first 2 calendar quarters of 2020 are less than 50 percent of the amount of the gross receipts of the eligible recipient during the same 2-month period in 2019. (II) Authority Except as otherwise provided in this clause, for an eligible recipient that has received a covered loan under clause (i), the Administrator may guarantee a single supplemental covered loan to the eligible recipient under the same terms, conditions, and processes as a covered loan made under clause (i). (III) Application deadline An eligible recipient shall submit an application for a supplemental covered loan under this clause not later than October 1, 2020, or such later date as the Administrator determines appropriate. (IV) Choice of lender An eligible recipient may apply for a supplemental covered loan under this clause with the lender that made the covered loan under clause (i) to the eligible recipient or another lender. (V) Eligibility (aa) In general A supplemental covered loan under this clause— (AA) may be made to an eligible recipient that is a smaller concern, has had a significant loss in revenue, and has used, or is expending funds at a rate that the eligible recipient will use on or before the expected date of the disbursement of the supplemental covered loan under this clause, the full amount of the covered loan received under clause (i); and (BB) may not be made to a publicly traded entity. (bb) Business concerns with more than 1 physical location (AA) In general For purposes of a supplemental covered loan under this clause, subparagraph (D)(iii) shall be applied by substituting not more than 100 employees per physical location not more than 500 employees per physical location (BB) Limit for multiple locations For an eligible recipient with more than 1 physical location, the total amount of all supplemental covered loans under this clause to the eligible recipient shall not be more than $2,000,000. (VI) Maximum amount for supplemental PPP The maximum amount of a supplemental covered loan under this clause is the lesser of— (aa) the product obtained by multiplying— (AA) the average total monthly payments for payroll costs by the eligible recipient used to determine the maximum amount of the covered loan under clause (i) made to the eligible recipient under this paragraph; by (BB) 2.5; or (bb) $2,000,000. (VII) Exception from certain certification requirements An eligible recipient applying for a supplemental covered loan under this clause shall not be required to make the certification described in subclauses (III) or (IV) of subparagraph (G)(i). (VIII) Reimbursement for processing supplemental PPP For a supplemental covered loan under this clause of not more than $50,000, the reimbursement under subparagraph (P)(I) by the Administrator shall not be less than $2,500. (iii) Priority for smallest recipients (I) Application processing In processing applications to guarantee covered loans, the Administrator shall, taking into account the sense of the Senate on giving priority to underserved and rural borrowers under subparagraph (P)(iv), prioritize the processing of applications to guarantee covered loans under clause (i) or (ii) to eligible recipients that have not more than 10 employees. (II) Funding priority The Administrator shall ensure that— (aa) of the unobligated balances available for covered loans on the date of enactment of the Prioritized Paycheck Protection Program Act (bb) to the extent additional amounts are made available for covered loans after the date of enactment of the Prioritized Paycheck Protection Program Act . (b) Covered periods (1) Authority to extend period for making PPP and P4 loans Section 7(a)(36)(A)(iii) of the Small Business Act ( 15 U.S.C. 636(a)(36)(A)(iii) , or such later date as the Administrator determines appropriate December 31, 2020 (2) Period for costs that are eligible for forgiveness and application submission Section 1106 of the CARES Act ( Public Law 116–136 (A) in subsection (a), by striking paragraph (3) and inserting the following: (3) the term covered period (A) beginning on the date of the origination of a covered loan; and (B) ending on a date selected by the eligible recipient of the covered loan that occurs during the period— (i) beginning on the date that is 8 weeks after such date of origination; and (ii) ending on December 31, 2020, or such later date as the Administrator determines appropriate. ; (B) in subsection (d), by inserting , or such later date as the Administrator determines appropriate December 31, 2020 (C) in subsection (e), in the matter preceding paragraph (1), by striking An eligible recipient After the end of the covered period with respect to an eligible recipient, the eligible recipient (D) by striking subsection (l). (3) Applicability of amendments The amendments made by paragraph (2) shall apply to a loan made under paragraph (36) of section 7(a) of the Small Business Act ( 15 U.S.C. 636(a) (c) Implementation of Inspector General suggested actions for PPP oversight Not later than 5 days after the date of enactment of this Act, the Administrator of the Small Business Administration shall— (1) issue guidance to prioritize underserved businesses, as described in the sense of the Senate provision under subparagraph (P)(iv) of section 7(a)(36) of the Small Business Act ( 15 U.S.C. 636(a)(36) (2) issue an updated loan origin application for initial covered loans under such section and issue an origin application for supplemental covered loans under such section that collects demographic data to provide transparency for lending to underserved and rural markets, as required under subparagraph (P) of such section; (3) implement the loan registration required under such section; and (4) consistent with information that the Administrator makes available on loans made by the Administration in compliance with section 552 of title 5, United States Code (commonly known as the Freedom of Information Act 15 U.S.C. 636(a)(36) (A) the name of each business or nonprofit organization borrower; (B) the address of the principal place of business of each borrower; (C) the name and address of the principal place of business of each lender; (D) the amount of each loan; (E) the North American Industry Classification System code of each borrower; (F) whether each borrower is a franchisee; and (G) the type of business of each borrower. (d) Forgiveness compensation fees Section 7(a)(36)(P) of the Small Business Act ( 15 U.S.C. 636(a)(36)(P) (v) Forgiveness application assistance With respect to initial covered loans and supplemental covered loans, the Administrator may reimburse an agent that assists an eligible recipient in preparing an application for and documentation required to obtain forgiveness under section 1106 of the Cares Act ( Public Law 116–136 . (e) Amount authorized for commitments Section 1102(b) of the CARES Act ( Public Law 116–136 (b) Commitments for PPP and other 7(a) (1) PPP loans During the period beginning on the date of enactment of the Prioritized Paycheck Protection Program Act 15 U.S.C. 636(a) (2) Other 7(a) During fiscal year 2020, the amount authorized for commitments for section 7(a) of the Small Business Act ( 15 U.S.C. 636(a) BUSINESS LOANS PROGRAM ACCOUNT Small Business Administration Public Law 116–93 .

Summary: Prioritized Paycheck Protection Program Act or the P4 Act This bill authorizes new lending under the Paycheck Protection Program, established to support small businesses in response to COVID-19 (i.e., coronavirus disease 2019), for specified small businesses that have experienced a significant loss in revenue. Specifically, the bill authorizes one supplemental paycheck protection loan for a small business that (1) has no more than 100 employees, (2) operates under a sole proprietorship or as an independent contractor, or (3) is self-employed. To be eligible for a supplemental paycheck protection loan, such small business must demonstrate a loss of revenue of 50% or more and have either already expended an initial paycheck protection loan or be on pace to exhaust such loan prior to disbursal of the supplemental loan. The bill also extends the application deadline for an initial paycheck protection loan to December 31, 2020, and it authorizes loan recipients to apply for forgiveness as early as eight weeks after the loan's disbursal. The Small Business Administration must (1) issue guidance instructing lenders of paycheck protection loans to prioritize loan processing for and disbursement to underserved businesses, (2) update the loan application for paycheck protection loans to collect borrowers' demographic information, and (3) publish specified program information on its website.