I 
116TH CONGRESS 
2D SESSION 
H. R. 7241 
To provide for supplemental loans under the Paycheck Protection Program. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 18, 2020 
Ms. CRAIG (for herself and Mr. DELGADO) introduced the following bill; which 
was referred to the Committee on Small Business 
A BILL 
To provide for supplemental loans under the Paycheck 
Protection Program. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Prioritized Paycheck 
Protection Program Act’’ or the ‘‘P4 Act’’. 
SEC. 2. PAYCHECK PROTECTION PROGRAM IMPROVE-
MENTS. 
(a) EXTENSION
FOR
CERTAIN
BUSINESS
CON-
CERNS.—Section 7(a)(36)(B) of the Small Business Act 
(15 U.S.C. 636(a)(36)(B)) is amended— 
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(1) by striking ‘‘Except’’ and inserting the fol-
lowing: 
‘‘(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’, and ‘security’ have the 
meanings given such terms in 
section 3(a) of the Securities Ex-
change Act of 1934 (15 U.S.C. 
78c(a)); 
‘‘(bb) the term ‘gross re-
ceipts’ means gross receipts with-
in the meaning of section 448(c) 
of the Internal Revenue Code of 
1986; 
‘‘(cc) the term ‘national se-
curities exchange’ means an ex-
change registered as a national 
securities exchange under section 
6 of the Securities Exchange Act 
of 1934 (15 U.S.C. 78f); 
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‘‘(dd) the term ‘publicly 
traded entity’ means an issuer, 
the securities of which are listed 
on a national securities exchange; 
‘‘(ee) the term ‘smaller con-
cern’ means an eligible recipient 
that— 
‘‘(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’ means that, due 
to the impact of COVID–19— 
‘‘(AA) the gross re-
ceipts of the eligible recipi-
ent during the first or sec-
ond 
calendar 
quarter 
of 
2020 are less than 50 per-
cent of the gross receipts of 
the eligible recipient during 
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the same calendar quarter in 
2019; 
‘‘(BB) if the eligible re-
cipient was not in business 
on April 1, 2019, the gross 
receipts of the eligible recipi-
ent during any 2-month pe-
riod during the first 2 cal-
endar quarters of 2020 are 
less than 50 percent of the 
amount of the gross receipts 
of the eligible recipient dur-
ing any prior 2-month pe-
riod during the first 2 cal-
endar quarters of 2020; or 
‘‘(CC) if the eligible re-
cipient is a seasonal em-
ployer, as determined by the 
Administrator, the gross re-
ceipts of the eligible recipi-
ent during any 2-month pe-
riod during the first 2 cal-
endar quarters of 2020 are 
less than 50 percent of the 
amount of the gross receipts 
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of the eligible recipient dur-
ing 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 eligi-
ble recipient under the same terms, 
conditions, and processes as a covered 
loan made under clause (i). 
‘‘(III) 
APPLICATION
DEAD-
LINE.—An eligible recipient shall sub-
mit an application for a supplemental 
covered loan under this clause not 
later than October 1, 2020, or such 
later date as the Administrator deter-
mines appropriate. 
‘‘(IV) CHOICE OF LENDER.—An 
eligible recipient may apply for a sup-
plemental covered loan under this 
clause with the lender that made the 
covered loan under clause (i) to the el-
igible recipient or another lender. 
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‘‘(V) ELIGIBILITY.— 
‘‘(aa) IN GENERAL.—A sup-
plemental 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 expend-
ing 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
PHYSICAL 
LOCATION.— 
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‘‘(aa) the product obtained 
by multiplying— 
‘‘(AA) the average total 
monthly payments for pay-
roll costs by the eligible re-
cipient 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
CER-
TAIN
CERTIFICATION
REQUIRE-
MENTS.—An eligible recipient apply-
ing for a supplemental covered loan 
under this clause shall not be required 
to make the certification described in 
subclauses (III) or (IV) of subpara-
graph (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 
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subparagraph (P)(I) by the Adminis-
trator shall not be less than $2,500. 
‘‘(iii) PRIORITY
FOR
SMALLEST
RE-
CIPIENTS.— 
‘‘(I) 
APPLICATION
PROC-
ESSING.—In processing applications 
to guarantee covered loans, the Ad-
ministrator shall, taking into account 
the sense of the Senate on giving pri-
ority to underserved and rural bor-
rowers under subparagraph (P)(iv), 
prioritize the processing of applica-
tions to guarantee covered loans 
under clause (i) or (ii) to eligible re-
cipients that have not more than 10 
employees. 
‘‘(II) FUNDING
PRIORITY.—The 
Administrator shall ensure that— 
‘‘(aa) of the unobligated bal-
ances available for covered loans 
on the date of enactment of the 
Prioritized Paycheck Protection 
Program Act, not less than the 
lesser of 20 percent of such un-
obligated 
balances 
or 
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$25,000,000,000 
is 
used 
for 
guaranteeing covered loans under 
clause (i) or (ii) to eligible recipi-
ents that have not more than 10 
employees; and 
‘‘(bb) to the extent addi-
tional amounts are made avail-
able for covered loans after the 
date 
of 
enactment 
of 
the 
Prioritized Paycheck Protection 
Program Act, not less than the 
lesser of 20 percent of the sum of 
the 
unobligated 
balances 
de-
scribed in subitem (AA) and such 
additional 
amounts 
or 
$25,000,000,000 
is 
used 
for 
guaranteeing covered loans under 
clause (i) or (ii) to eligible recipi-
ents that have not more than 10 
employees.’’. 
(b) COVERED PERIODS.— 
(1) AUTHORITY TO EXTEND PERIOD FOR MAK-
ING PPP AND P4 LOANS.—Section 7(a)(36)(A)(iii) of 
the 
Small 
Business 
Act 
(15 
U.S.C. 
636(a)(36)(A)(iii)) is amended by inserting ‘‘, or 
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such later date as the Administrator determines ap-
propriate’’ after ‘‘December 31, 2020’’. 
(2) PERIOD FOR COSTS THAT ARE ELIGIBLE 
FOR
FORGIVENESS
AND
APPLICATION
SUBMIS-
SION.—Section 1106 of the CARES Act (Public 
Law 116–136) is amended— 
(A) in subsection (a), by striking para-
graph (3) and inserting the following: 
‘‘(3) 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, or 
such later date as the Administrator deter-
mines appropriate.’’; 
(B) in subsection (d), by inserting ‘‘, or 
such later date as the Administrator determines 
appropriate’’ after ‘‘December 31, 2020’’ each 
place it appears; 
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(C) in subsection (e), in the matter pre-
ceding paragraph (1), by striking ‘‘An eligible 
recipient’’ and inserting ‘‘After the end of the 
covered period with respect to an eligible recipi-
ent, the eligible recipient’’; and 
(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)) before, 
on, or after the date of enactment of this Act. 
(c) IMPLEMENTATION OF INSPECTOR GENERAL SUG-
GESTED ACTIONS FOR PPP OVERSIGHT.—Not later than 
5 days after the date of enactment of this Act, the Admin-
istrator 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 
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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 Admin-
istrator makes available on loans made by the Ad-
ministration in compliance with section 552 of title 
5, United States Code (commonly known as the 
‘‘Freedom of Information Act’’), begin publishing on 
the website of the Administration information about 
the paycheck protection program under section 
7(a)(36) of the Small Business Act (15 U.S.C. 
636(a)(36)), including initial covered loans and sup-
plemental covered loans, including— 
(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 Classi-
fication System code of each borrower; 
(F) whether each borrower is a franchisee; 
and 
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