I 
116TH CONGRESS 
2D SESSION 
H. R. 8087 
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 
AUGUST 22, 2020 
Mr. CHABOT introduced the following bill; which was referred to the Com-
mittee on Small Business, and in addition to the Committees on the Judi-
ciary, the Budget, and Appropriations, for a period to be subsequently 
determined by the Speaker, in each case for consideration of such provi-
sions 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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. ADDITIONAL ELIGIBLE EXPENSES. 
(a) ALLOWABLE
USE
OF
PPP LOAN.—Section 
7(a)(36)(F)(i) of the Small Business Act (15 U.S.C. 
636(a)(36)(F)(i)) is amended— 
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(1) in subclause (VI), by striking ‘‘and’’ at the 
end; 
(2) in subclause (VII), by striking the period at 
the end and inserting a semicolon; and 
(3) by adding at the end the following: 
‘‘(VIII) covered operations ex-
penditures, as defined in section 
1106(a) of the CARES Act (15 
U.S.C. 9005(a)); 
‘‘(IX) covered property damage 
costs, as defined in such section 
1106(a); 
‘‘(X) covered supplier costs, as 
defined in such section 1106(a); and 
‘‘(XI) covered worker protection 
expenditures, as defined in such sec-
tion 1106(a).’’. 
(b) LOAN
FORGIVENESS.—Section 1106 of the 
CARES Act (15 U.S.C. 9005) is amended— 
(1) in subsection (a)— 
(A) by redesignating paragraphs (6), (7), 
and (8) as paragraphs (10), (11), and (12), re-
spectively; 
(B) by redesignating paragraph (5) as 
paragraph (8); 
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(C) by redesignating paragraph (4) as 
paragraph (6); 
(D) by redesignating paragraph (3) as 
paragraph (4); 
(E) by inserting after paragraph (2) the 
following: 
‘‘(3) the term ‘covered operations expenditure’ 
means a payment for any business software or cloud 
computing service that facilitates business oper-
ations, product or service delivery, the processing, 
payment, or tracking of payroll expenses, human re-
sources, sales and billing functions, or accounting or 
tracking of supplies, inventory, records and ex-
penses;’’; 
(F) by inserting after paragraph (4), as so 
redesignated, the following: 
‘‘(5) the term ‘covered property damage cost’ 
means a cost related to property damage and van-
dalism or looting due to public disturbances that oc-
curred during 2020 that was not covered by insur-
ance or other compensation;’’; 
(G) by inserting after paragraph (6), as so 
redesignated, the following: 
‘‘(7) the term ‘covered supplier cost’ means an 
expenditure made by an entity to a supplier of goods 
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pursuant to a contract in effect before February 15, 
2020, for the supply of goods that are essential to 
the operations of the entity at the time at which the 
expenditure is made;’’; 
(H) by inserting after paragraph (8), as so 
redesignated, the following: 
‘‘(9) the term ‘covered worker protection ex-
penditure’— 
‘‘(A) means an operating or a capital ex-
penditure that is required to facilitate the adap-
tation of the business activities of an entity to 
comply with requirements established or guid-
ance issued by the Department of Health and 
Human Services, the Centers for Disease Con-
trol, or the Occupational Safety and Health Ad-
ministration during the period beginning on 
March 1, 2020, and ending December 31, 2020, 
related to the maintenance of standards for 
sanitation, social distancing, or any other work-
er or customer safety requirement related to 
COVID–19; 
‘‘(B) may include— 
‘‘(i) the purchase, maintenance, or 
renovation of assets that create or ex-
pand— 
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‘‘(I) a drive-through window fa-
cility; 
‘‘(II) an indoor, outdoor, or com-
bined air or air pressure ventilation or 
filtration system; 
‘‘(III) a physical barrier such as 
a sneeze guard; 
‘‘(IV) an indoor, outdoor, or com-
bined commercial real property; 
‘‘(V) an onsite or offsite health 
screening capability; or 
‘‘(VI) other assets relating to the 
compliance with the requirements or 
guidance described in subparagraph 
(A), as determined by the Adminis-
trator in consultation with the Sec-
retary of Health and Human Services 
and the Secretary of Labor; and 
‘‘(ii) the purchase of— 
‘‘(I) covered materials described 
in section 328.103(a) of title 44, Code 
of Federal Regulations, or any suc-
cessor regulation; 
‘‘(II) particulate filtering face-
piece respirators approved by the Na-
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(2) in subsection (b), by adding at the end the 
following: 
‘‘(5) Any covered operations expenditure. 
‘‘(6) Any covered property damage cost. 
‘‘(7) Any covered supplier cost. 
‘‘(8) Any covered worker protection expendi-
ture.’’; 
(3) in subsection (d)(8), by inserting ‘‘any pay-
ment on any covered operations expenditure, any 
payment on any covered property damage cost, any 
payment on any covered supplier cost, any payment 
on any covered worker protection expenditure,’’ after 
‘‘rent obligation,’’; and 
(4) in subsection (e)— 
(A) in paragraph (2), by inserting ‘‘pay-
ments on covered operations expenditures, pay-
ments on covered property damage costs, pay-
ments on covered supplier costs, payments on 
covered worker protection expenditures,’’ after 
‘‘lease obligations,’’; and 
(B) in paragraph (3)(B), by inserting 
‘‘make payments on covered operations expendi-
tures, make payments on covered property dam-
age costs, make payments on covered supplier 
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costs, make payments on covered worker protec-
tion expenditures,’’ after ‘‘rent obligation,’’. 
SEC. 2. LENDER SAFE HARBOR. 
Subsection (h) of section 1106 of the CARES Act 
(15 U.S.C. 9005) is amended to read as follows: 
‘‘(h) HOLD HARMLESS.— 
‘‘(1) IN GENERAL.—A lender may rely on any 
certification or documentation submitted by an ap-
plicant for a covered loan or an eligible recipient of 
a covered loan that— 
‘‘(A) is submitted pursuant to any statu-
tory requirement relating to covered loans or 
any rule or guidance issued to carry out any ac-
tion relating to covered loans; and 
‘‘(B) attests that the applicant or eligible 
recipient, as applicable, has accurately verified 
any certification or documentation provided to 
the lender. 
‘‘(2) NO ENFORCEMENT ACTION.—With respect 
to a lender that relies on a certification or docu-
mentation described in paragraph (1)— 
‘‘(A) an enforcement action may not be 
taken against the lender acting in good faith re-
lating to origination or forgiveness of a covered 
loan based on such reliance; and 
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‘‘(B) the lender acting in good faith shall 
not be subject to any penalties relating to origi-
nation or forgiveness of a covered loan based on 
such reliance.’’. 
SEC. 3. SELECTION OF COVERED PERIOD FOR FORGIVE-
NESS. 
Section 1106 of the CARES Act (15 U.S.C. 9005) 
is amended— 
(1) by amending subsection (a)(4) (as redesig-
nated by section 1) to read as follows: 
‘‘(4) the term ‘covered period’ means the pe-
riod— 
‘‘(A) beginning on the date of the origina-
tion of a covered loan; and 
‘‘(B) ending on a date selected by the eligi-
ble 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;’’; 
and 
(2) by striking subsection (l). 
SEC. 4. SIMPLIFIED APPLICATION. 
Section 1106 of the CARES Act (15 U.S.C. 9005), 
as amended by section 3 of this Act, is amended— 
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(1) in subsection (e), in the matter preceding 
paragraph (1), by striking ‘‘An eligible’’ and insert-
ing ‘‘Except as provided in subsection (l), an eligi-
ble’’; 
(2) in subsection (f), by inserting ‘‘or the infor-
mation required under subsection (l), as applicable’’ 
after ‘‘subsection (e)’’; and 
(3) by adding at the end the following: 
‘‘(l) SIMPLIFIED APPLICATION.— 
‘‘(1) COVERED LOANS UNDER $150,000.— 
‘‘(A) IN GENERAL.—Notwithstanding sub-
section (e), with respect to a covered loan made 
to an eligible recipient that is not more than 
$150,000, the covered loan amount shall be for-
given under this section if the eligible recipi-
ent— 
‘‘(i) signs and submits to the lender 
an attestation that the eligible recipient 
made a good faith effort to comply with 
the requirements under section 7(a)(36) of 
the Small Business Act (15 U.S.C. 
636(a)(36)); and 
‘‘(ii) for the 3-year period following 
submission of the attestation under clause 
(i), retains records relevant to the attesta-
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tion that prove compliance with those re-
quirements. 
‘‘(B) DEMOGRAPHIC
INFORMATION.—An 
eligible recipient of a covered loan described in 
subparagraph (A) may complete and submit 
any form related to borrower demographic in-
formation. 
‘‘(C) AUDIT.—The Administrator may— 
‘‘(i) review and audit covered loans 
described in subparagraph (A); and 
‘‘(ii) in the case of fraud, ineligibility, 
or other material noncompliance with ap-
plicable loan or loan forgiveness require-
ments, modify— 
‘‘(I) the amount of a covered loan 
described in subparagraph (A); or 
‘‘(II) the loan forgiveness amount 
with respect to a covered loan de-
scribed in subparagraph (A). 
‘‘(2) COVERED LOANS BETWEEN $150,000 AND 
$2,000,000.— 
‘‘(A) IN GENERAL.—Notwithstanding sub-
section (e), with respect to a covered loan made 
to an eligible recipient that is more than 
$150,000 and not more than $2,000,000— 
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‘‘(i) the eligible recipient seeking loan 
forgiveness under this section— 
‘‘(I) is not required to submit the 
supporting documentation described 
in paragraph (1) or (2) of subsection 
(e) or the certification described in 
subsection (e)(3)(A); 
‘‘(II) shall retain all relevant 
schedules, worksheets, and supporting 
documentation for the 3-year period 
following submission of the applica-
tion for loan forgiveness; and 
‘‘(III) may complete and submit 
any form related to borrower demo-
graphic information; 
‘‘(ii) review by the lender of an appli-
cation submitted by the eligible recipient 
for loan forgiveness under this section shall 
be limited to whether the lender received a 
complete application, with all fields com-
pleted, initialed, or signed, as applicable; 
and 
‘‘(iii) the lender shall— 
‘‘(I) accept the application sub-
mitted by the eligible recipient for 
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loan forgiveness under this section; 
and 
‘‘(II) submit the application to 
the Administrator. 
‘‘(B) AUDIT.—The Administrator may— 
‘‘(i) review and audit covered loans 
described in subparagraph (A); and 
‘‘(ii) in the case of fraud, ineligibility, 
or other material noncompliance with ap-
plicable loan or loan forgiveness require-
ments, modify— 
‘‘(I) the amount of a covered loan 
described in subparagraph (A); or 
‘‘(II) the loan forgiveness amount 
with respect to a covered loan de-
scribed in subparagraph (A). 
‘‘(3) AUDIT PLAN.— 
‘‘(A) IN
GENERAL.—Not later than 30 
days after the date of enactment of this 
subsectoin, the Administrator shall submit to 
the Committee on Small Business and Entre-
preneurship of the Senate and the Committee 
on Small Business of the House of Representa-
tives an audit plan that details— 
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‘‘(i) the policies and procedures of the 
Administrator for conducting reviews and 
audits of covered loans; and 
‘‘(ii) the metrics that the Adminis-
trator shall use to determine which covered 
loans will be audited for each category of 
covered loans described in paragraphs (1) 
and (2). 
‘‘(B) REPORTS.—Not later than 30 days 
after the date on which the Administrator sub-
mits the audit plan required under subpara-
graph (A), and each month thereafter, the Ad-
ministrator shall submit to the Committee on 
Small Business and Entrepreneurship of the 
Senate and the Committee on Small Business 
of the House of Representatives a report on the 
review and audit activities of the Administrator 
under this subsection, which shall include— 
‘‘(i) the number of active reviews and 
audits; 
‘‘(ii) the number of reviews and audits 
that have been ongoing for more than 60 
days; and 
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‘‘(iii) any substantial changes made to 
the audit plan submitted under subpara-
graph (A).’’. 
SEC. 5. GROUP INSURANCE PAYMENTS AS PAYROLL COSTS. 
Section 7(a)(36)(A)(viii)(I)(aa)(EE) of the Small 
Business Act (15 U.S.C. 636(a)(36)(A)(viii)(I)(aa)(EE)) 
is amended by inserting ‘‘and other group insurance’’ be-
fore ‘‘benefits’’. 
SEC. 6. PAYCHECK PROTECTION PROGRAM SECOND DRAW 
LOANS. 
Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)) is amended by adding at the end the following: 
‘‘(37) PAYCHECK PROTECTION PROGRAM SEC-
OND DRAW LOANS.— 
‘‘(A) DEFINITIONS.—In this paragraph— 
‘‘(i) the terms ‘community financial 
institutions’, ‘credit union’, ‘eligible self- 
employed individual’, ‘insured depository 
institution’, ‘nonprofit organization’, ‘pay-
roll costs’, ‘seasonal employer’, and ‘vet-
erans organization’ have the meanings 
given those terms in paragraph (36), ex-
cept that ‘eligible entity’ shall be sub-
stituted for ‘eligible recipient’ each place it 
appears in the definitions of those terms; 
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‘‘(ii) the term ‘covered loan’ means a 
loan made under this paragraph; 
‘‘(iii) the terms ‘covered mortgage ob-
ligation’, ‘covered operating expenditure’, 
‘covered property damage cost’, ‘covered 
rent obligation’, ‘covered supplier cost’, 
‘covered utility payment’, and ‘covered 
worker protection expenditure’ have the 
meanings given those terms in section 
1106(a) of the CARES Act (15 U.S.C. 
9005(a)); 
‘‘(iv) the term ‘covered period’ means 
the period beginning on the date of the 
origination of a covered loan and ending on 
December 31, 2020; 
‘‘(v) the terms ‘exchange’, ‘issuer’, 
and ‘security’ have the meanings given 
those terms in section 3(a) of the Securi-
ties Exchange Act of 1934 (15 U.S.C. 
78c(a)); 
‘‘(vi) the term ‘eligible entity’— 
‘‘(I) means any business concern, 
nonprofit organization, veterans orga-
nization, Tribal business concern, eli-
gible self-employed individual, sole 
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proprietor, independent contractor, or 
small agricultural cooperative that— 
‘‘(aa)(AA) with respect to a 
business concern, would qualify 
as a small business concern by 
the annual receipts size standard 
(if applicable) established by sec-
tion 121.201 of title 13, Code of 
Federal Regulations, or any suc-
cessor regulation; or 
‘‘(BB) if the entity does not 
qualify as a small business con-
cern, meets the alternative size 
standard established under sec-
tion 3(a)(5); 
‘‘(bb) employs not more 
than 300 employees; and 
‘‘(cc)(AA) except as provided 
in subitems (BB), (CC), and 
(DD), had gross receipts during 
the first or second quarter in 
2020 that are not less than 35 
percent less than the gross re-
ceipts of the entity during the 
same quarter in 2019; 
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‘‘(BB) if the entity was not 
in business during the first or 
second quarter of 2019, but was 
in business during the third and 
fourth quarter of 2019, had gross 
receipts during the first or sec-
ond quarter of 2020 that are less 
than 35 percent of the amount of 
the gross receipts of the entity 
during the third or fourth quar-
ter of 2019; 
‘‘(CC) if the entity was not 
in business during the first, sec-
ond, or third quarter of 2019, 
but was in business during the 
fourth quarter of 2019, had gross 
receipts during the first or sec-
ond quarter of 2020 that are less 
than 35 percent of the amount of 
the gross receipts of the entity 
during the fourth quarter of 
2019; or 
‘‘(DD) if the entity was not 
in business during 2019, but was 
in operation on February 15, 
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2020, had gross receipts during 
the second quarter of 2020 that 
are less than 35 percent of the 
amount of the gross receipts of 
the entity during the first quar-
ter of 2020; and 
‘‘(II) does not include— 
‘‘(aa) an issuer, the securi-
ties of which are listed on an ex-
change registered a national se-
curities exchange under section 6 
of the Securities Exchange Act of 
1934 (15 U.S.C. 78f); 
‘‘(bb) any entity that— 
‘‘(AA) is a type of busi-
ness concern described in 
subsection (b), (c), (d), (e), 
(f), (h), (l) (m), (p), (q), (r), 
or (s) of section 120.110 of 
title 13, Code of Federal 
Regulations, or any suc-
cessor regulation; 
‘‘(BB) is a type of busi-
ness concern described in 
section 120.110(g) of title 
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13, Code of Federal Regula-
tions, or any successor regu-
lation, except as otherwise 
provided in the interim final 
rule of the Administration 
entitled ‘Business Loan Pro-
gram Temporary Changes; 
Paycheck Protection Pro-
gram—Additional Eligibility 
Criteria and Requirements 
for 
Certain 
Pledges 
of 
Loans’ (85 Fed. Reg. 21747 
(April 20, 2020)); 
‘‘(CC) is a type of busi-
ness concern described in 
section 120.110(i) of title 
13, Code of Federal Regula-
tions, or any successor regu-
lation, except if the business 
concern is an organization 
described 
in 
paragraph 
(36)(D)(vii); 
‘‘(DD) is a type of 
business concern described 
in section 120.110(j) of title 
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13, Code of Federal Regula-
tions, or any successor regu-
lation, except as otherwise 
provided in the interim final 
rules of the Administration 
entitled ‘Business Loan Pro-
gram Temporary Changes; 
Paycheck Protection Pro-
gram—Eligibility of Certain 
Electric Cooperatives’ (85 
Fed. Reg. 29847 (May 19, 
2020)) and ‘Business Loan 
Program 
Temporary 
Changes; Paycheck Protec-
tion Program—Eligibility of 
Certain Telephone Coopera-
tives’ (85 Fed. Reg. 35550 
(June 11, 2020)) or any 
other 
guidance 
or 
rule 
issued or that may be issued 
by the Administrator; 
‘‘(EE) is a type of busi-
ness concern described in 
section 120.110(n) of title 
13, Code of Federal Regula-
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tions, or any successor regu-
lation, except as otherwise 
provided in the interim final 
rule of the Administration 
entitled ‘Business Loan Pro-
gram Temporary Changes; 
Paycheck Protection Pro-
gram—Additional Eligibility 
Revisions to First Interim 
Final Rule’ (85 Fed. Reg. 
38301 (June 26, 2020)) or 
any other guidance or rule 
issued or that may be issued 
by the Administrator; 
‘‘(FF) is a type of busi-
ness concern described in 
section 120.110(o) of title 
13, Code of Federal Regula-
tions, or any successor regu-
lation, except as otherwise 
provided in any guidance or 
rule issued or that may be 
issued by the Administrator; 
or 
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‘‘(GG) is an entity that 
is organized for research or 
for engaging in advocacy in 
areas such as public policy 
or political strategy or other-
wise describes itself as a 
think tank in any public 
documents; 
‘‘(HH) is an entity that 
would be described in the 
subsections 
listed 
in 
subitems (AA) through (GG) 
if the entity were a business 
concern; or 
‘‘(II) is assigned, or 
was approved for a loan 
under paragraph (36) with, 
a North American Industry 
Classification System code 
beginning with 52; 
‘‘(cc) any business concern 
or entity primarily engaged in 
political or lobbying activities, 
which shall include any entity 
that is organized for research or 
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for engaging in advocacy in areas 
such as public policy or political 
strategy or otherwise describes 
itself as a think tank in any pub-
lic documents; or 
‘‘(dd) any business concern 
or entity— 
‘‘(AA) for which an en-
tity created in or organized 
under the laws of the Peo-
ple’s Republic of China or 
the Special Administrative 
Region of Hong Kong, or 
that has significant oper-
ations in the People’s Re-
public of China or the Spe-
cial Administrative Region 
of Hong Kong, owns or 
holds, directly or indirectly, 
not less than 20 percent of 
the economic interest of the 
business concern or entity, 
including as equity shares or 
a capital or profit interest in 
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a limited liability company 
or partnership; or 
‘‘(BB) that retains, as 
a member of the board of di-
rectors of the business con-
cern, a person who is a resi-
dent of the People’s Repub-
lic of China; and 
‘‘(vii) the term ‘Tribal business con-
cern’ means a Tribal business concern de-
scribed in section 31(b)(2)(C). 
‘‘(B) LOANS.—Except as otherwise pro-
vided in this paragraph, the Administrator may 
guarantee covered loans to eligible entities 
under the same terms, conditions, and processes 
as a loan made under paragraph (36). 
‘‘(C) MAXIMUM LOAN AMOUNT.— 
‘‘(i) IN GENERAL.—Except as other-
wise provided in this subparagraph, the 
maximum amount of a covered loan made 
to an eligible entity is the lesser of— 
‘‘(I) the product obtained by mul-
tiplying— 
‘‘(aa) 
the 
average 
total 
monthly 
payment 
for 
payroll 
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1, 2019, and September 15, 
2019; by 
‘‘(bb) 2.5; or 
‘‘(II) $1,000,000. 
‘‘(iii) NEW ENTITIES.—The maximum 
amount of a covered loan made to an eligi-
ble entity that did not exist during the 1- 
year period preceding February 15, 2020, 
is the lesser of— 
‘‘(I) the product obtained by mul-
tiplying— 
‘‘(aa) the quotient obtained 
by dividing— 
‘‘(AA) the sum of the 
total monthly payments by 
the eligible entity for payroll 
costs paid or incurred by the 
eligible entity as of the date 
on which the eligible entity 
applies for the covered loan; 
by 
‘‘(BB) the number of 
months in which those pay-
roll costs were paid or in-
curred; by 
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‘‘(bb) 2.5; or 
‘‘(II) $2,000,000. 
‘‘(iv) 
BUSINESS
CONCERNS
WITH 
MORE THAN 1 PHYSICAL LOCATION.— 
‘‘(I) IN GENERAL.—Any eligible 
entity that employs not more than 
300 employees per physical location of 
the eligible entity and that is assigned 
a North American Industry Classifica-
tion System Code beginning with 72 
at the time of disbursal shall be eligi-
ble to receive a covered loan. 
‘‘(II) LIMIT FOR MULTIPLE LO-
CATIONS.—With respect to an eligible 
entity with more than 1 physical loca-
tion, the total amount of all covered 
loans 
shall 
be 
not 
more 
than 
$2,000,000. 
‘‘(v) LOAN NUMBER LIMITATION.—An 
eligible entity may only receive 1 covered 
loan. 
‘‘(vi) 90 DAY
RULE
FOR
MAXIMUM 
LOAN AMOUNT.—The maximum aggregate 
loan amount of loans guaranteed under 
this subsection that are approved for an el-
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igible entity (including any affiliates) with-
in 90 days of approval of another loan 
under this subsection for the eligible entity 
(including any affiliates) shall not exceed 
$10,000,000. 
‘‘(D) EXCEPTION FROM CERTAIN CERTIFI-
CATION REQUIREMENTS.—An eligible entity ap-
plying for a covered loan shall not be required 
to make the certification described in subclause 
(III) or (IV) of paragraph (36)(G)(i). 
‘‘(E) FEE WAIVER.—With respect to a cov-
ered loan— 
‘‘(i) in lieu of the fee otherwise appli-
cable under paragraph (23)(A), the Ad-
ministrator shall collect no fee; and 
‘‘(ii) in lieu of the fee otherwise appli-
cable under paragraph (18)(A), the Ad-
ministrator shall collect no fee. 
‘‘(F) ELIGIBLE CHURCHES AND RELIGIOUS 
ORGANIZATIONS.— 
‘‘(i) SENSE OF CONGRESS.—It is the 
sense of Congress that the interim final 
rule of the Administration entitled ‘Busi-
ness Loan Program Temporary Changes; 
Paycheck Protection Program’ (85 Fed. 
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Reg. 20817 (April 15, 2020)) properly 
clarified the eligibility of churches and reli-
gious organizations for loans made under 
paragraph (36). 
‘‘(ii) APPLICABILITY
OF
PROHIBI-
TION.—The prohibition on eligibility estab-
lished by section 120.110(k) of title 13, 
Code of Federal Regulations, or any suc-
cessor regulation, shall not apply to a cov-
ered loan. 
‘‘(G) GROSS
RECEIPTS
FOR
NONPROFIT 
AND VETERANS ORGANIZATIONS.—For purposes 
of calculating gross receipts under subpara-
graph (A)(vi)(I)(cc) for an entity that is a non-
profit organization or a veterans organization, 
gross receipts— 
‘‘(i) shall include proceeds from fund-
raising events, federated campaigns, gifts, 
donor-advised funds, and funds from simi-
lar sources; and 
‘‘(ii) shall not include— 
‘‘(I) Federal grants (excluding 
any loan forgiveness on loans received 
under paragraph (36) or this para-
graph; 
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‘‘(II) revenues from a supporting 
organization; 
‘‘(III) grants from private foun-
dations that are disbursed over the 
course of more than 1 calendar year; 
or 
‘‘(IV) any contribution of prop-
erty other than money, stocks, bonds, 
and other securities, provided that the 
non-cash contribution is not sold by 
the organization in a transaction un-
related to the tax-exempt purpose of 
the organization. 
‘‘(H) LOAN FORGIVENESS.— 
‘‘(i) IN
GENERAL.—Except as pro-
vided otherwise provided in this subpara-
graph, an eligible entity shall be eligible for 
forgiveness of indebtedness on a covered 
loan in the same manner as an eligible re-
cipient with respect to a loan made under 
paragraph (36), as described in section 
1106 of the CARES Act (15 U.S.C. 9005). 
‘‘(ii) FORGIVENESS AMOUNT.—An eli-
gible entity shall be eligible for forgiveness 
of indebtedness on a covered loan in an 
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amount equal to the sum of the following 
costs incurred or expenditures made during 
the covered period: 
‘‘(I) Payroll costs. 
‘‘(II) Any payment of interest on 
any 
covered 
mortgage 
obligation 
(which shall not include any prepay-
ment of or payment of principal on a 
covered mortgage obligation). 
‘‘(III) Any covered operations ex-
penditure. 
‘‘(IV) Any covered property dam-
age cost. 
‘‘(V) Any payment on any cov-
ered rent obligation. 
‘‘(VI) Any covered utility pay-
ment. 
‘‘(VII) Any covered supplier cost. 
‘‘(VIII) Any covered worker pro-
tection expenditure. 
‘‘(iii) LIMITATION
ON
FORGIVENESS 
FOR
ALL
ELIGIBLE
ENTITIES.—The for-
giveness amount under this subparagraph 
shall be equal to the lesser of— 
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‘‘(I) the amount described in 
clause (ii); and 
‘‘(II) the amount equal to the 
quotient obtained by dividing— 
‘‘(aa) the amount of the cov-
ered loan used for payroll costs 
during the covered period; and 
‘‘(bb) 0.60. 
‘‘(I) LENDER
ELIGIBILITY.—Except as 
otherwise provided in this paragraph, a lender 
approved to make loans under paragraph (36) 
may make covered loans under the same terms 
and conditions as in paragraph (36). 
‘‘(J) REIMBURSEMENT
FOR
LOAN
PROC-
ESSING
AND
SERVICING.—The Administrator 
shall reimburse a lender authorized to make a 
covered loan in an amount that is— 
‘‘(i) 3 percent of the principal amount 
of the financing of the covered loan up to 
$350,000; and 
‘‘(ii) 1 percent of the principal 
amount of the financing of the covered 
loan above $350,000, if applicable. 
‘‘(K) SET ASIDE FOR SMALL ENTITIES.— 
Not less than $25,000,000,000 of the total 
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amount of covered loans guaranteed by the Ad-
ministrator shall be made to eligible entities 
with not more than 10 employees as of Feb-
ruary 15, 2020. 
‘‘(L) SET ASIDE FOR COMMUNITY FINAN-
CIAL INSTITUTIONS, SMALL INSURED DEPOSI-
TORY
INSTITUTIONS, 
CREDIT
UNIONS, 
AND 
FARM CREDIT SYSTEM INSTITUTIONS.—Not less 
than $10,000,000,000 of the total amount of 
covered loans guaranteed by the Administrator 
shall be made by— 
‘‘(i) community financial institutions; 
‘‘(ii) insured depository institutions 
with consolidated assets of less than 
$10,000,000,000; 
‘‘(iii) credit unions with consolidated 
assets of less than $10,000,000,000; and 
‘‘(iv) institutions of the Farm Credit 
System chartered under the Farm Credit 
Act of 1971 (12 U.S.C. 2001 et seq.) with 
consolidated 
assets 
of 
less 
than 
$10,000,000,000 (not including the Fed-
eral Agricultural Mortgage Corporation). 
‘‘(M) PUBLICATION
OF
GUIDANCE.—Not 
later than 10 days after the date of enactment 
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of this paragraph, the Administrator shall issue 
guidance addressing barriers to accessing cap-
ital for minority, underserved, veteran, and 
women-owned business concerns for the purpose 
of ensuring equitable access to covered loans. 
‘‘(N) 
STANDARD
OPERATING
PROCE-
DURE.—The Administrator shall, to the max-
imum extent practicable, allow a lender ap-
proved to make covered loans to use existing 
program guidance and standard operating pro-
cedures for loans made under this subsection. 
‘‘(O) COMPLIANCE WITH OVERSIGHT RE-
QUIREMENTS.— 
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), on and after the date 
of enactment of this paragraph, the Ad-
ministrator shall comply with any data or 
information requests or inquiries made by 
the Comptroller General of the United 
States or the Inspector General of any 
agency not later than 30 days (or such 
later date as the Comptroller General or 
Inspector General, as applicable, may 
specify) after receiving the request or in-
quiry. 
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‘‘(ii) EXCEPTION.—If the Adminis-
trator is unable to comply with a request 
or inquiry described in clause (i) within the 
30-day period or, if applicable, later period 
described in that clause, the Administrator 
shall, during that 30-day (or later) period, 
submit to the Committee on Small Busi-
ness and Entrepreneurship of the Senate 
and the Committee on Small Business of 
the House of Representatives a notification 
that includes a detailed justification for the 
inability of the Administrator to comply 
with the request or inquiry. 
‘‘(P) PROHIBITION ON USE OF PROCEEDS 
FOR LOBBYING ACTIVITIES.—None of the pro-
ceeds of a covered loan may be used for lob-
bying activities, as defined in section 3 of the 
Lobbying Disclosure Act of 1995 (2 U.S.C. 
1602).’’. 
SEC. 7. CONTINUED ACCESS TO THE PAYCHECK PROTEC-
TION PROGRAM. 
(a) IN GENERAL.—Section 7(a)(36)(E)(ii) of the 
Small Business Act (15 U.S.C. 636(a)(36)(E)(ii)) is 
amended by striking ‘‘$10,000,000’’ and inserting 
‘‘$2,000,000’’. 
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(b) APPLICABILITY
OF MAXIMUM LOAN AMOUNT 
CALCULATION.— 
(1) DEFINITIONS.—In this subsection, the 
terms ‘‘covered loan’’ and ‘‘eligible recipient’’ have 
the meanings given those terms in section 7(a)(36) 
of the Small Business Act (15 U.S.C. 636(a)(36)). 
(2) APPLICABILITY.—The amendment made by 
subsection (a) shall apply only with respect to a cov-
ered loan applied for by an eligible recipient on or 
after the date of enactment of this Act. 
SEC. 8. INCREASED ABILITY FOR PAYCHECK PROTECTION 
PROGRAM BORROWERS TO REQUEST AN IN-
CREASE IN LOAN AMOUNT DUE TO UPDATED 
REGULATIONS. 
(a) DEFINITIONS.—In this section, the terms ‘‘cov-
ered loan’’ and ‘‘eligible recipient’’ have the meanings 
given those terms in section 7(a)(36) of the Small Busi-
ness Act (15 U.S.C. 636(a)(36)). 
(b) INCREASED AMOUNT.—Notwithstanding the in-
terim final rule issued by the Administration entitled 
‘‘Business Loan Program Temporary Changes; Paycheck 
Protection Program—Loan Increases’’ (85 Fed. Reg. 
29842 (May 19, 2020)), an eligible recipient of a covered 
loan that is eligible for an increased covered loan amount 
as a result of any interim final rule that allows for covered 
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loan increases may submit a request for an increase in 
the covered loan amount even if— 
(1) the initial covered loan amount has been 
fully disbursed; or 
(2) the lender of the initial covered loan has 
submitted to the Administration a Form 1502 report 
related to the covered loan. 
SEC. 9. CALCULATION OF MAXIMUM LOAN AMOUNT FOR 
FARMERS AND RANCHERS UNDER THE PAY-
CHECK PROTECTION PROGRAM. 
(a) IN GENERAL.—Section 7(a)(36) of the Small 
Business Act (15 U.S.C. 636(a)(36)), as amended by sec-
tion 7 of this Act, is amended— 
(1) in subparagraph (E), in the matter pre-
ceding clause (i), by striking ‘‘During’’ and inserting 
‘‘Except as provided in subparagraph (T), during’’; 
and 
(2) by adding at the end the following: 
‘‘(T) CALCULATION
OF
MAXIMUM
LOAN 
AMOUNT FOR FARMERS AND RANCHERS.— 
‘‘(i) DEFINITION.—In this subpara-
graph, the term ‘covered recipient’ means 
an eligible recipient that— 
‘‘(I) operates as a sole propri-
etorship or as an independent con-
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tractor, or is an eligible self-employed 
individual; 
‘‘(II) reports farm income or ex-
penses on a Schedule F (or any equiv-
alent successor schedule); and 
‘‘(III) was in business during the 
period beginning on February 15, 
2019, and ending on June 30, 2019. 
‘‘(ii) NO EMPLOYEES.—With respect 
to covered recipient without employees, the 
maximum covered loan amount shall be the 
lesser of— 
‘‘(I) the sum of— 
‘‘(aa) the product obtained 
by multiplying— 
‘‘(AA) the gross income 
of the covered recipient in 
2019, as reported on a 
Schedule F (or any equiva-
lent 
successor 
schedule), 
that 
is 
not 
more 
than 
$100,000, divided by 12; 
and 
‘‘(BB) 2.5; and 
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‘‘(bb) 
the 
outstanding 
amount of a loan under sub-
section (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 re-
paid; or 
‘‘(II) $2,000,000. 
‘‘(iii) WITH
EMPLOYEES.—With re-
spect to a covered recipient with employ-
ees, the maximum covered loan amount 
shall be calculated using the formula de-
scribed in subparagraph (E), except that 
the gross income of the covered recipient 
described in clause (ii)(I)(aa)(AA) of this 
subparagraph, as divided by 12, shall be 
added to the sum calculated under sub-
paragraph (E)(i)(I). 
‘‘(iv) RECALCULATION.—A lender that 
made a covered loan to a covered recipient 
before the date of enactment of this sub-
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paragraph may, at the request of the cov-
ered recipient— 
‘‘(I) recalculate the maximum 
loan amount applicable to that cov-
ered loan based on the formula de-
scribed in clause (ii) or (iii), as appli-
cable, if doing so would result in a 
larger covered loan amount; and 
‘‘(II) provide the covered recipi-
ent with additional covered loan 
amounts based on that recalcula-
tion.’’. 
SEC. 10. FARM CREDIT SYSTEM INSTITUTIONS. 
(a) DEFINITION OF FARM CREDIT SYSTEM INSTITU-
TION.—In this section, the term ‘‘Farm Credit System in-
stitution’’— 
(1) means an institution of the Farm Credit 
System chartered under the Farm Credit Act of 
1971 (12 U.S.C. 2001 et seq.); and 
(2) does not include the Federal Agricultural 
Mortgage Corporation. 
(b) FACILITATION OF PARTICIPATION IN PPP AND 
SECOND DRAW LOANS.— 
(1) APPLICABLE RULES.—Solely with respect to 
loans under paragraphs (36) and (37) of section 
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7(a) of the Small Business Act (15 U.S.C. 636(a)), 
Farm Credit Administration regulations and guid-
ance issued as of July 14, 2020, and compliance 
with such regulations and guidance, shall be deemed 
functionally equivalent to requirements referenced in 
section 3(a)(iii)(II) of the interim final rule of the 
Administration entitled ‘‘Business Loan Program 
Temporary Changes; Paycheck Protection Program’’ 
(85 Fed. Reg. 20811 (April 15, 2020)) or any simi-
lar requirement referenced in that interim final rule 
in implementing such paragraph (37). 
(2) APPLICABILITY
OF
CERTAIN
LOAN
RE-
QUIREMENTS.—For purposes of making loans under 
paragraph (36) or (37) of section 7(a) of the Small 
Business Act (15 U.S.C. 636(a)) or forgiving those 
loans in accordance with section 1106 of the CARES 
Act (15 U.S.C. 9005) and subparagraph (H) of such 
paragraph (37), sections 4.13, 4.14, and 4.14A of 
the Farm Credit Act of 1971 (12 U.S.C. 2199, 
2202, 2202a) (including regulations issued under 
those sections) shall not apply. 
(3) RISK WEIGHT.— 
(A) IN GENERAL.—With respect to the ap-
plication of Farm Credit Administration capital 
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requirements, a loan described in subparagraph 
(B)— 
(i) shall receive a risk weight of zero 
percent; and 
(ii) shall not be included in the cal-
culation of any applicable leverage ratio or 
other applicable capital ratio or calculation. 
(B) LOANS DESCRIBED.—A loan referred 
to in subparagraph (A) is— 
(i) a loan made by a Farm Credit 
Bank described in section 1.2(a) of the 
Farm Credit Act of 1971 (12 U.S.C. 
2002(a)) to a Federal Land Bank Associa-
tion, a Production Credit Association, or 
an agricultural credit association described 
in that section to make loans under para-
graph (36) or (37) of section 7(a) of the 
Small Business Act (15 U.S.C. 636(a)) or 
forgive those loans in accordance with sec-
tion 1106 of the CARES Act (15 U.S.C. 
9005) and subparagraph (H) of such para-
graph (37); or 
(ii) a loan made by a Federal Land 
Bank Association, a Production Credit As-
sociation, an agricultural credit associa-
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tion, or the bank for cooperatives described 
in section 1.2(a) of the Farm Credit Act of 
1971 (12 U.S.C. 2002(a)) under para-
graph (36) or (37) of section 7(a) of the 
Small Business Act (15 U.S.C. 636(a)). 
(4) RESERVATION
OF
LOAN
GUARANTEES.— 
Section 7(a)(36)(S) of the Small Business Act (15 
U.S.C. 636(a)(36)(S)) is amended— 
(A) in clause (i)— 
(i) in subclause (I), by striking ‘‘and’’ 
at the end; 
(ii) in subclause (II), by striking the 
period at the end and inserting ‘‘; and’’; 
and 
(iii) by adding at the end the fol-
lowing: 
‘‘(III) institutions of the Farm 
Credit System chartered under the 
Farm Credit Act of 1971 (12 U.S.C. 
2001 et seq.) with consolidated assets 
of not less than $10,000,000,000 and 
less than $50,000,000,000.’’; and 
(B) in clause (ii)— 
(i) in subclause (II), by striking 
‘‘and’’ at the end; 
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(ii) in subclause (III), by striking the 
period at the end and inserting ‘‘; and’’; 
and 
(iii) by adding at the end the fol-
lowing: 
‘‘(IV) institutions of the Farm 
Credit System chartered under the 
Farm Credit Act of 1971 (12 U.S.C. 
2001 et seq.) with consolidated assets 
of less than $10,000,000,000.’’. 
SEC. 11. DEFINITION OF SEASONAL EMPLOYER. 
(a) PPP LOANS.—Section 7(a)(36)(A) of the Small 
Business Act (15 U.S.C. 636(a)(36)(A)) is amended— 
(1) in clause (xi), by striking ‘‘and’’ at the end; 
(2) in clause (xii), by striking the period at the 
end and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(xiii) the term ‘seasonal employer’ 
means an eligible recipient that— 
‘‘(I) does not operate for more 
than 7 months in any calendar year; 
or 
‘‘(II) during the preceding cal-
endar year, had gross receipts for any 
6 months of that year that were not 
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