I 
116TH CONGRESS 
2D SESSION 
H. R. 7894 
To require the Administrator of the Small Business Administration to estab-
lish a program to provide certain borrowers with a second loan under 
the paycheck protection program, to modify the eligibility and forgiveness 
requirement of the program, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 31, 2020 
Mr. CURTIS (for himself, Mr. ROY, Mr. VAN DREW, Mr. MEUSER, and Ms. 
WILD) introduced the following bill; which was referred to the Committee 
on Small Business, and in addition to the Committee on Ways and 
Means, for a period to be subsequently determined by the Speaker, in 
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned 
A BILL 
To require the Administrator of the Small Business Adminis-
tration to establish a program to provide certain bor-
rowers with a second loan under the paycheck protection 
program, to modify the eligibility and forgiveness require-
ment of the 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. SHORT TITLE. 
This Act may be cited as the ‘‘Paycheck Protection 
Program Small Business Enhancement Act’’. 
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SEC. 2. EXTENDING AUTHORITY FOR COMMITMENTS FOR 
THE PAYCHECK PROTECTION PROGRAM. 
Section 1102(b)(1) of title I of division A of the 
Coronavirus Aid, Relief, and Economic Security Act (Pub-
lic Law 116–136) is amended by striking ‘‘August 8, 
2020’’ and inserting ‘‘December 31, 2020’’. 
SEC. 3. ELIGIBILITY OF FRANCHISES AND 501(c)(6) ORGANI-
ZATIONS FOR THE PAYCHECK PROTECTION 
PROGRAM. 
Section 7(a)(36)(D) of the Small Business Act (15 
U.S.C. 636(a)(36)(D)) is amended— 
(1) in subparagraph (A)(vii), by striking ‘‘sec-
tion 501(c)(3)’’ and inserting ‘‘paragraph (6) or (3) 
of section 501(c)’’; and 
(2) in subparagraph (D)— 
(A) in clause (iv)— 
(i) in subclause (II), by striking 
‘‘and’’ at the end; 
(ii) in subclause (III), by striking the 
period at the end and inserting ‘‘; and’’; 
and 
(iii) by adding at the end the fol-
lowing new subclause: 
‘‘(IV) any business concern that 
is a franchisor or franchisee as de-
scribed in clause (vii)(II).’’; and 
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(B) by adding at the end the following new 
clause: 
‘‘(vii) FRANCHISES AND 501(c)(6) OR-
GANIZATIONS.—During the covered period, 
the following shall be eligible to receive a 
covered loan: 
‘‘(I) Any organization that is de-
scribed in section 501(c)(6) of the In-
ternal Revenue Code and that is ex-
empt from taxation under section 
501(a) of such Code. 
‘‘(II) Any business concern that 
is a franchisor or franchisee in a fran-
chise (as defined in section 436.1(h) 
of title 16, Code of Federal Regula-
tions), regardless of whether the fran-
chise is assigned a franchise identifier 
code by the Administration, if the 
business concern employs not more 
than 500 employees per physical loca-
tion of the business concern.’’. 
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SEC. 4. PROHIBITION ON USE OF LOAN PROCEEDS FOR 
LOBBYING ACTIVITIES. 
Section 7(a)(36)(F) of the Small Business Act (15 
U.S.C. 636(a)(36)(F)) is amended by adding at the end 
the following: 
‘‘(vi) PROHIBITION.—None of the pro-
ceeds of a covered loan may be used for 
lobbying activities, as defined in section 3 
of the Lobbying Disclosure Act of 1995 (2 
U.S.C. 1602).’’. 
SEC. 5. SUBSEQUENT LOANS UNDER THE PAYCHECK PRO-
TECTION PROGRAM. 
(a) IN GENERAL.—An eligible business that received 
a covered loan under section 7(a)(36) of the Small Busi-
ness Act may submit an application to the Administrator 
of the Small Business Administration for a subsequent 
loan made under the same terms, conditions, and proc-
esses as such covered loan. 
(b) FORGIVENESS.— 
(1) IN
GENERAL.—A subsequent loan made 
under subsection (a) shall be eligible for forgiveness 
under section 1106 of the CARES Act under the 
same terms, conditions, and processes as a covered 
loan made under section 7(a)(36) of the Small Busi-
ness Act. 
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(2) ADDITIONAL
FORGIVABLE
EXPENSES.— 
Amounts of a subsequent loan used for covered 
worker protection expenditures shall be eligible for 
forgiveness under such section 1106. 
(3) COVERED PERIOD.—With respect to a sub-
sequent loan, the covered period (as defined in sec-
tion 1106(a)(3) of the CARES Act) shall begin on 
the date of disbursement of the subsequent loan. 
(c) SAFE HARBOR.— 
(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 statutory 
requirement relating to covered loans or any 
rule or guidance issued to carry out any action 
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)— 
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(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 
(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. 
(d) DEFINITIONS.—In this section: 
(1) COVERED WORKER PROTECTION EXPENDI-
TURE.—The term ‘‘covered worker protection ex-
penditure’’— 
(A) means an operating or a capital ex-
penditure, as determined in accordance with 
generally accepted accounting principles, that is 
required to facilitate the adaptation of the busi-
ness activities of an eligible recipient to comply 
with requirements established or guidance 
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-
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er or customer safety requirement related to 
COVID–19; 
(B) may include— 
(i) the purchase, maintenance, or ren-
ovation of assets that create or expand— 
(I) a drive-through window facil-
ity; 
(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; 
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(ii) expenses related to testing em-
ployees of an eligible business for COVID– 
19; and 
(iii) the purchase of— 
(I) covered materials described in 
section 328.103(a) of title 44, Code of 
Federal Regulations, or any successor 
regulation; 
(II) particulate filtering facepiece 
respirators approved by the National 
Institute for Occupational Safety and 
Health, including those approved only 
for emergency use authorization; or 
(III) other kinds of personal pro-
tective equipment, as determined by 
the Administrator in consultation with 
the Secretary of Health and Human 
Services and the Secretary of Labor; 
and 
(C) does not include residential real prop-
erty or intangible property. 
(2) ELIGIBLE
BUSINESS.—The term ‘‘eligible 
business’’ means an eligible recipient as defined in 
section 7(a)(36)(A) of the Small Business Act (15 
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U.S.C. 636(a)(36)(A)), but does not include a non-
profit organization as defined in such section— 
(A) that experienced a reduction in gross 
receipts of more than 20 percent during— 
(i) the period between April 1, 2020, 
and June 1, 2020, as compared to the pe-
riod between April 1, 2019, and June 1, 
2019; or 
(ii) the period between July 1, 2020, 
and September 1, 2020, compared to the 
period between July 1, 2019, and Sep-
tember 1, 2019; and 
(B) that is able to document an inability to 
return to the same level of business activity as 
such business was operating at before February 
15, 2020, due to compliance with requirements 
established or guidance issued by the Secretary 
of Health and Human Services, the Director of 
the Centers for Disease Control and Prevention, 
or the Occupational Safety and Health Admin-
istration during the period beginning on March 
1, 2020, and ending December 31, 2020, re-
lated to the maintenance of standards for sani-
tation, social distancing, or any other worker or 
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customer safety requirement related to COVID– 
19. 
SEC. 6. CLARIFICATION OF TREATMENT OF BUSINESS EX-
PENSES. 
(a) IN GENERAL.—Subsection (i) of section 1106 of 
the CARES Act (Public Law 116–136) is amended— 
(1) by striking ‘‘1986, any amount’’ and insert-
ing ‘‘1986— 
‘‘(1) any amount’’; 
(2) by striking the period at the end and insert-
ing ‘‘, and’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(2) no deduction shall be denied or reduced, 
no tax attribute shall be reduced, and no basis in-
crease shall be denied, by reason of the exclusion 
from gross income provided by paragraph (1).’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply as if included in the enactment 
of section 1106 of the CARES Act (Public Law 116–136). 
SEC. 7. FORGIVENESS FOR COVERED LOANS UNDER 
$150,000. 
Section 1110 of the CARES Act (15 U.S.C. 9009) 
is amended by adding at the end the following new sub-
sections: 
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‘‘(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 not later than 7 days after the 
date of enactment of this subsection, that attests 
that the eligible recipient complied with the require-
ments under section 7(a)(36) of the Small Business 
Act (15 U.S.C. 636(a)(36)). 
‘‘(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 
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. 
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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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