I 
116TH CONGRESS 
2D SESSION 
H. R. 7777 
To provide automatic forgiveness for paycheck protection program loans under 
$150,000, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 24, 2020 
Ms. HOULAHAN (for herself, Mr. UPTON, Mr. FLORES, Mr. FITZPATRICK, Mr. 
WELCH, Mr. KUSTOFF of Tennessee, Mr. PALAZZO, Mr. EVANS, Mr. 
CARTER of Texas, Mr. ROUDA, Mr. BARR, Mr. FERGUSON, Mr. GUEST, 
Mr. BUDD, Mr. WILSON of South Carolina, Mr. WILLIAMS, Mr. LUCAS, 
Mr. COOPER, Mr. MCCAUL, Mr. DAVID P. ROE of Tennessee, Mr. 
THOMPSON of Mississippi, Mr. BALDERSON, Mr. GIBBS, Mr. CURTIS, Mr. 
BISHOP of North Carolina, and Mr. ROY) introduced the following bill; 
which was referred to the Committee on Small Business 
A BILL 
To provide automatic forgiveness for paycheck protection 
program loans under $150,000, 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. SHORT TITLE. 
This Act may be cited as the ‘‘Paycheck Protection 
Small Business Forgiveness Act’’. 
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SEC. 2. LOAN FORGIVENESS FOR PPP LOANS UNDER 
$150,000. 
Section 1106 of the CARES Act (Public Law 116– 
136) is amended— 
(1) in subsection (e), in the matter preceding 
paragraph (1), by striking ‘‘An eligible’’ and insert-
ing ‘‘Except as provided in subsection (m), an eligi-
ble’’; 
(2) in subsection (f), by inserting ‘‘or the infor-
mation required under subsection (m), as applica-
ble’’ after ‘‘subsection (e)’’; 
(3) by striking subsection (h) and inserting the 
following: 
‘‘(h) HOLD HARMLESS.— 
‘‘(1) IN GENERAL.—A lender may rely on all 
certifications and documentation submitted by an 
applicant or eligible recipient pursuant to any re-
quirement in statute regarding covered loans, or 
rules or guidance promulgated to carry out any ac-
tion relating to covered loans, from an applicant or 
eligible recipient attesting that the applicant or eligi-
ble recipient has accurately verified all documenta-
tion provided to the lender. 
‘‘(2) NO ENFORCEMENT ACTION.—With respect 
to a lender that relies on the certifications and docu-
mentation described in paragraph (1)— 
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‘‘(A) no enforcement or other action may 
be taken against the lender relating to loan 
origination, forgiveness, or guarantee based on 
such reliance, including claims under— 
‘‘(i) the Small Business Act (15 
U.S.C. 631 et seq.); 
‘‘(ii) sections 3729 through 3733 of 
title 31, United States Code (commonly 
known as the ‘False Claims Act’); 
‘‘(iii) the Financial Institutions Re-
form, Recovery, and Enforcement Act 
(Public Law 101–73); 
‘‘(iv) section 21 of the Federal De-
posit Insurance Act (12 U.S.C. 1829b), 
chapter 2 of title I of Public Law 91–508 
(12 U.S.C. 1951 et seq.), and subchapter 
II of chapter 53 of title 31, United States 
Code (collectively known as the ‘Bank Se-
crecy Act’); or 
‘‘(v) any other Federal, State, or 
other criminal or civil law or regulation; 
and 
‘‘(B) the lender shall not be subject to any 
penalties relating to loan origination, forgive-
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ness, or guarantee based on such reliance.’’; 
and 
(4) by adding at the end the following: 
‘‘(m) FORGIVENESS FOR COVERED LOANS UNDER 
$150,000.— 
‘‘(1) IN GENERAL.—Notwithstanding subsection 
(e), with respect to a covered loan made to an eligi-
ble recipient that is not more than $150,000, the 
covered loan amount shall be forgiven under this 
section if the eligible recipient submits to the lender 
a one-page online or paper form, to be established 
by the Administrator, that attests that the eligible 
recipient complied with the requirements under sec-
tion 7(a)(36) of the Small Business Act (15 U.S.C. 
636(a)(36)). Covered individuals (defined under sec-
tion 4019 of this Act) are not eligible for forgiveness 
under this subsection. 
‘‘(2) HOLD
HARMLESS.—With respect to a 
lender that relies on an attestation submitted by an 
eligible recipient under paragraph (1), no enforce-
ment action may be taken against the lender for any 
falsehoods contained in the attestation. 
‘‘(3) DEMOGRAPHIC INFORMATION.—The online 
or paper form established by the Administrator 
under paragraph (1) shall include a means by which 
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an eligible recipient may, at the discretion of the eli-
gible recipient, submit demographic information of 
the owner of the eligible recipient, including the sex, 
race, ethnicity, and veteran status of the owner. 
‘‘(4) EXPENDITURE INFORMATION.—The form 
established by the Administrator under paragraph 
(1) shall include a process by which an eligible re-
cipient may elect to submit information about the 
use of the covered loan, including indication of 
whether the eligible recipient— 
‘‘(A) used 60 percent or more of the cov-
ered loan amount for payroll costs as defined in 
section 7(a)(36) of the Small Business Act (15 
U.S.C. 636(a)(36)); 
‘‘(B) used less than 60 percent of the cov-
ered loan amount for payroll costs but is able 
to document an inability to hire or rehire em-
ployees as described under subsection (d)(7)(A); 
or 
‘‘(C) used less than 60 percent of the cov-
ered loan amount for payroll costs but is able 
to document an inability to return to the same 
level of business activity as described under 
subsection (d)(7)(B). 
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‘‘(n) 
ENFORCEMENT
ACTION
AGAINST
BOR-
ROWERS.—An eligible recipient of a covered loan may only 
be subject to an enforcement action or penalty relating 
to loan origination, forgiveness, or guarantee of the cov-
ered loan if the eligible recipient commits fraud or expends 
covered loan proceeds on expenses that are not allowable 
under section 7(a)(36)(F) of the Small Business Act (15 
U.S.C. 636(a)(36)(F)).’’. 
Æ 
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