Title: Paycheck Protection for Producers Act
Policy area: Commerce

Summary:
Paycheck Protection for Producers Act
This bill modifies the Paycheck Protection Program, established to support small businesses in response to COVID-19 (i.e., coronavirus disease 2019), by allowing certain farmers to calculate (or recalculate) their paycheck protection loan amount based on 2019 gross income.
Under current law, such farmers must calculate their paycheck protection loan amount based on net income.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3918 Introduced in Senate (IS)]

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116th CONGRESS
  2d Session
                                S. 3918

   To modify the calculation of the maximum loan amount for certain 
farmers and ranchers under the paycheck protection program of the Small 
            Business Administration, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              June 9, 2020

Mr. Thune (for himself and Ms. Baldwin) introduced the following bill; 
 which was read twice and referred to the Committee on Small Business 
                          and Entrepreneurship

_______________________________________________________________________

                                 A BILL


 
   To modify the calculation of the maximum loan amount for certain 
farmers and ranchers under the paycheck protection program of the Small 
            Business Administration, 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 ``Paycheck Protection for Producers 
Act''.

SEC. 2. CALCULATION OF MAXIMUM LOAN AMOUNT FOR FARMERS AND RANCHERS 
              UNDER THE PAYCHECK PROTECTION PROGRAM.

    (a) In General.--Section 7(a)(36) of the Small Business Act (15 
U.S.C. 636(a)(36)) is amended--
            (1) in subparagraph (E), in the matter preceding 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 subparagraph, 
                        the term `covered recipient' means an eligible 
                        recipient that--
                                    ``(I) operates as a sole 
                                proprietorship or as an independent 
                                contractor, or is an eligible self-
                                employed individual;
                                    ``(II) reports farm income or 
                                expenses on a Schedule F (or any 
                                equivalent 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 equivalent 
                                                successor schedule), 
                                                that is not more than 
                                                $100,000, divided by 
                                                12; and

                                                    ``(BB) 2.5; and

                                            ``(bb) the outstanding 
                                        amount of a loan under 
                                        subsection (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 repaid; or
                                    ``(II) $10,000,000.
                            ``(iii) With employees.--With respect to a 
                        covered recipient with employees, the maximum 
                        covered loan amount shall be calculated using 
                        the formula described 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 
                        subparagraph (E)(i)(I).
                            ``(iv) Recalculation.--A lender that made a 
                        covered loan to a covered recipient before the 
                        date of enactment of this subparagraph may, at 
                        the request of the covered recipient--
                                    ``(I) recalculate the maximum loan 
                                amount applicable to that covered loan 
                                based on the formula described in 
                                clause (ii) or (iii), as applicable, if 
                                doing so would result in a larger 
                                covered loan amount; and
                                    ``(II) provide the covered 
                                recipient with additional covered loan 
                                amounts based on that recalculation.''.
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