Small-Dollar PPP Forgiveness Simplification Act of 2021
Bill: H.R.5190 | Sponsor: Rep. Houlahan, Chrissy (D-PA)
Policy area: Commerce

Summary:
Small-Dollar PPP Forgiveness Simplification Act of 2021
This bill makes changes to the Paycheck Protection Program (PPP) to with respect to forgiveness of certain PPP loans.
Specifically, the bill includes as covered loans under the PPP loan forgiveness program excess loan amounts that were received due to a good faith error.
The bill also increases the threshold, from $150,000 to $350,000, used to determine whether a PPP loan may use the simplified forgiveness application.

To amend the Small Business Act to include excess loan amount errors in 
 the forgiveness of a paycheck protection program loan, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Small-Dollar PPP Forgiveness 
Simplification Act of 2021''.

SEC. 2. SIMPLIFIED APPLICATION FOR COVERED LOANS UP TO $350,000.

    (a) In General.--Section 7A(l) of the Small Business Act (15 U.S.C. 
636m(l)) is amended--
            (1) in paragraph (1)--
                    (A) in the paragraph heading, by striking 
                ``$150,000'' and inserting ``$350,000''; and
                    (B) by striking ``not more than $150,000'' each 
                place it appears and inserting ``less than or equal to 
                $350,000''; and
            (2) in paragraph (2)--
                    (A) in the paragraph heading, by striking 
                ``$150,000'' and inserting ``$350,000''; and
                    (B) in subparagraph (A), by striking ``$150,000'' 
                and inserting ``$350,000''.
    (b) Effective Date.--The amendment made by this subsection shall be 
effective as if included in the Economic Aid to Hard-Hit Small 
Businesses, Nonprofits, and Venues Act (Public Law 116-260; 134 Stat. 
1993) and shall apply to any loan made pursuant to section 7(a)(36) of 
the Small Business Act (15 U.S.C. 636(a)(36)) before, on, or after the 
date of enactment of this Act, including forgiveness of such a loan.

SEC. 3. FORGIVENESS OF EXCESS LOAN AMOUNTS FOR PAYCHECK PROTECTION 
              PROGRAM LOANS.

    (a) Paycheck Protection Program Loans.--
            (1) In general.--Section 7A(a)(1) of the Small Business Act 
        (15 U.S.C. 636m(a)(1)) is amended by inserting before the 
        semicolon at the end the following: ``and includes any amount 
        of a covered loan received due to an excess loan amount error 
        (as described in Procedural Notice 5000-20078 of the 
        Administration titled `Paycheck Protection Program Excess Loan 
        Amount Errors' and dated January 15, 2021)''.
            (2) Conforming amendment.--Section 7A(l)(1)(A)(ii)(II) of 
        the Small Business Act is amended by striking ``complied'' and 
        inserting ``acted in good faith to comply''.
            (3) Effective date.--The amendments made by this subsection 
        shall be effective as if included in the CARES Act (Public Law 
        116-136; 134 Stat. 281) and shall apply to any loan made 
        pursuant to section 7(a)(36) of the Small Business Act (15 
        U.S.C. 636(a)(36)) before, on, or after the date of enactment 
        of this Act, including forgiveness of such a loan.
            (4) Applicability to loans already forgiven.--The 
        amendments made by this subsection shall apply to a loan made 
        pursuant to section 7(a)(36) of the Small Business Act (15 
        U.S.C. 636(a)(36)) for which the borrower received forgiveness 
        before the date of enactment of this Act under section 1106 of 
        the CARES Act, as in effect on the day before the date of the 
        enactment of the Economic Aid to Hard-Hit Small Businesses, 
        Nonprofits, and Venues Act (Public Law 116-260; 134 Stat. 
        1993), or section 7A of the Small Business Act (15 U.S.C. 
        636m), as in effect on the day before the date of enactment of 
        this Act.
    (b) Paycheck Protection Program Second Draw Loans.--
            (1) In general.--Section 7(a)(37)(J)(i) of the Small 
        Business Act (15 U.S.C. 636(a)(37)(J)(i)) is amended to read as 
        follows:
                            ``(i) Definitions.--In this subparagraph--
                                    ``(I) the term `covered loan' 
                                includes any amount of a covered loan 
                                received due to an excess loan amount 
                                error (as described in Procedural 
                                Notice 5000-20078 of the Administration 
                                titled `Paycheck Protection Program 
                                Excess Loan Amount Errors' and dated 
                                January 15, 2021); and
                                    ``(II) the term `covered period' 
                                has the meaning given that term in 
                                section 7A(a).''.
            (2) Effective date.--The amendment made by this subsection 
        shall be effective as if included in the Economic Aid to Hard-
        Hit Small Businesses, Nonprofits, and Venues Act (Public Law 
        116-260; 134 Stat. 1993) and shall apply to any loan made 
        pursuant to section 7(a)(37) of the Small Business Act (15 
        U.S.C. 636(a)(37)) before, on, or after the date of enactment 
        of this Act, including forgiveness of such a loan.
            (3) Applicability to loans already forgiven.--The amendment 
        made by this subsection shall apply to a loan made pursuant to 
        section 7(a)(37) of the Small Business Act (15 U.S.C. 
        636(a)(37)) for which the borrower received forgiveness before 
        the date of enactment of this Act.
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