Title: P4 Ac
Policy area: Commerce

Summary:
Prioritized Paycheck Protection Program Act or the P4 Act
This bill authorizes new lending under the Paycheck Protection Program, established to support small businesses in response to COVID-19 (i.e., coronavirus disease 2019), for specified small businesses that have experienced a significant loss in revenue.
Specifically, the bill authorizes one supplemental paycheck protection loan for a small business that (1) has no more than 100 employees, (2) operates under a sole proprietorship or as an independent contractor, or (3) is self-employed. To be eligible for a supplemental paycheck protection loan, such small business must demonstrate a loss of revenue of 50% or more and have either already expended an initial paycheck protection loan or be on pace to exhaust such loan prior to disbursal of the supplemental loan.
The bill also extends the application deadline for an initial paycheck protection loan to December 31, 2020, and it authorizes loan recipients to apply for forgiveness as early as eight weeks after the loan's disbursal.
The Small Business Administration must (1) issue guidance instructing lenders of paycheck protection loans to prioritize loan processing for and disbursement to underserved businesses, (2) update the loan application for paycheck protection loans to collect borrowers' demographic information, and (3) publish specified program information on its website.


[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 4014 Introduced in Senate (IS)]

<DOC>






116th CONGRESS
  2d Session
                                S. 4014

    To provide for supplemental loans under the Paycheck Protection 
                                Program.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 18, 2020

   Mr. Cardin (for himself, Mr. Coons, Mrs. Shaheen, and Mr. Casey) 
introduced the following bill; which was read twice and referred to the 
            Committee on Small Business and Entrepreneurship

_______________________________________________________________________

                                 A BILL


 
    To provide for supplemental loans under the Paycheck Protection 
                                Program.

    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 ``Prioritized Paycheck Protection 
Program Act'' or the ``P4 Act''.

SEC. 2. PAYCHECK PROTECTION PROGRAM IMPROVEMENTS.

    (a) Extension for Certain Business Concerns.--Section 7(a)(36)(B) 
of the Small Business Act (15 U.S.C. 636(a)(36)(B)) is amended--
            (1) by striking ``Except'' and inserting the following:
                            ``(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 Exchange 
                                        Act of 1934 (15 U.S.C. 78c(a));
                                            ``(bb) the term `gross 
                                        receipts' means gross receipts 
                                        within the meaning of section 
                                        448(c) of the Internal Revenue 
                                        Code of 1986;
                                            ``(cc) the term `national 
                                        securities exchange' means an 
                                        exchange registered as a 
                                        national securities exchange 
                                        under section 6 of the 
                                        Securities Exchange Act of 1934 
                                        (15 U.S.C. 78f);
                                            ``(dd) the term `publicly 
                                        traded entity' means an issuer, 
                                        the securities of which are 
                                        listed on a national securities 
                                        exchange;
                                            ``(ee) the term `smaller 
                                        concern' 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 
                                                receipts of the 
                                                eligible recipient 
                                                during the first or 
                                                second calendar quarter 
                                                of 2020 are less than 
                                                50 percent of the gross 
                                                receipts of the 
                                                eligible recipient 
                                                during the same 
                                                calendar quarter in 
                                                2019;

                                                    ``(BB) if the 
                                                eligible recipient was 
                                                not in business on 
                                                April 1, 2019, the 
                                                gross receipts of the 
                                                eligible recipient 
                                                during any 2-month 
                                                period during the first 
                                                2 calendar quarters of 
                                                2020 are less than 50 
                                                percent of the amount 
                                                of the gross receipts 
                                                of the eligible 
                                                recipient during any 
                                                prior 2-month period 
                                                during the first 2 
                                                calendar quarters of 
                                                2020; or

                                                    ``(CC) if the 
                                                eligible recipient is 
                                                seasonal employer, as 
                                                determined by the 
                                                Administrator, the 
                                                gross receipts of the 
                                                eligible recipient 
                                                during any 2-month 
                                                period during the first 
                                                2 calendar quarters of 
                                                2020 are less than 50 
                                                percent of the amount 
                                                of the gross receipts 
                                                of the eligible 
                                                recipient during 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 
                                eligible recipient under the same 
                                terms, conditions, and processes as a 
                                covered loan made under clause (i).
                                    ``(III) Application deadline.--An 
                                eligible recipient shall submit an 
                                application for a supplemental covered 
                                loan under this clause not later than 
                                October 1, 2020, or such later date as 
                                the Administrator determines 
                                appropriate.
                                    ``(IV) Choice of lender.--An 
                                eligible recipient may apply for a 
                                supplemental covered loan under this 
                                clause with the lender that made the 
                                covered loan under clause (i) to the 
                                eligible recipient or another lender.
                                    ``(V) Eligibility.--
                                            ``(aa) In general.--A 
                                        supplemental 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 expending 
                                                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 1 physical 
                                        location.--

                                                    ``(AA) In 
                                                general.--For purposes 
                                                of a supplemental 
                                                covered loan under this 
                                                clause, subparagraph 
                                                (D)(iii) shall be 
                                                applied by substituting 
                                                `not more than 100 
                                                employees per physical 
                                                location' for `not more 
                                                than 500 employees per 
                                                physical location'.

                                                    ``(BB) Limit for 
                                                multiple locations.--
                                                For an eligible 
                                                recipient with more 
                                                than 1 physical 
                                                location, the total 
                                                amount of all 
                                                supplemental covered 
                                                loans under this clause 
                                                to the eligible 
                                                recipient shall not be 
                                                more than $2,000,000.

                                    ``(VI) Maximum amount for 
                                supplemental ppp.--The maximum amount 
                                of a supplemental covered loan under 
                                this clause is the lesser of--
                                            ``(aa) the product obtained 
                                        by multiplying--

                                                    ``(AA) the average 
                                                total monthly payments 
                                                for payroll costs by 
                                                the eligible recipient 
                                                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 certain 
                                certification requirements.--An 
                                eligible recipient applying for a 
                                supplemental covered loan under this 
                                clause shall not be required to make 
                                the certification described in 
                                subclauses (III) or (IV) of 
                                subparagraph (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 subparagraph (P)(I) 
                                by the Administrator shall not be less 
                                than $2,500.
                            ``(iii) Priority for smallest recipients.--
                                    ``(I) Application processing.--In 
                                processing applications to guarantee 
                                covered loans, the Administrator shall, 
                                taking into account the sense of the 
                                Senate on giving priority to 
                                underserved and rural borrowers under 
                                subparagraph (P)(iv), prioritize the 
                                processing of applications to guarantee 
                                covered loans under clause (i) or (ii) 
                                to eligible recipients that have not 
                                more than 10 employees.
                                    ``(II) Funding priority.--The 
                                Administrator shall ensure that--
                                            ``(aa) of the unobligated 
                                        balances 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 unobligated 
                                        balances or $25,000,000,000 is 
                                        used for guaranteeing covered 
                                        loans under clause (i) or (ii) 
                                        to eligible recipients that 
                                        have not more than 10 
                                        employees; and
                                            ``(bb) to the extent 
                                        additional amounts are made 
                                        available 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 described 
                                        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 recipients that have 
                                        not more than 10 employees.''.
    (b) Covered Periods.--
            (1) Authority to extend period for making 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 such 
        later date as the Administrator determines appropriate'' after 
        ``December 31, 2020''.
            (2) Period for costs that are eligible for forgiveness and 
        application submission.--Section 1106 of the CARES Act (Public 
        Law 116-136) is amended--
                    (A) in subsection (a), by striking paragraph (3) 
                and inserting the following:
            ``(3) the term `covered period' means the period--
                    ``(A) beginning on the date of the origination of a 
                covered loan; and
                    ``(B) ending on a date selected by the eligible 
                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 determines 
                        appropriate.'';
                    (B) in subsection (d), by inserting ``, or such 
                later date as the Administrator determines 
                appropriate'' after ``December 31, 2020'' each place it 
                appears;
                    (C) in subsection (e), in the matter preceding 
                paragraph (1), by striking ``An eligible recipient'' 
                and inserting ``After the end of the covered period 
                with respect to an eligible recipient, 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 Suggested Actions for PPP 
Oversight.--Not later than 5 days after the date of enactment of this 
Act, the Administrator 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 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 Administrator 
        makes available on loans made by the Administration 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 supplemental 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 Classification 
                System code of each borrower;
                    (F) whether each borrower is a franchisee; and
                    (G) the type of business of each borrower.
    (d) Forgiveness Compensation Fees.--Section 7(a)(36)(P) of the 
Small Business Act (15 U.S.C. 636(a)(36)(P)) is amended by adding at 
the end the following:
                            ``(v) Forgiveness application assistance.--
                        With respect to initial covered loans and 
                        supplemental covered loans, the Administrator 
                        may reimburse an agent that assists an eligible 
                        recipient in preparing an application for and 
                        documentation required to obtain forgiveness 
                        under section 1106 of the Cares Act (Public Law 
                        116-136), in an amount not to exceed $500.''.
    (e) Amount Authorized for Commitments.--Section 1102(b) of the 
CARES Act (Public Law 116-136) is amended to read as follows:
    ``(b) Commitments for PPP and Other 7(a) Loans.--
            ``(1) PPP loans.--During the period beginning on the date 
        of enactment of the Prioritized Paycheck Protection Program Act 
        and ending on December 31, 2020, or such later date as the 
        Administrator determines appropriate, subject to the 
        availability of appropriations, the Administrator may make 
        commitments under paragraph (36) of section 7(a) of the Small 
        Business Act (15 U.S.C. 636(a)) in such amounts as the 
        Administrator determines necessary.
            ``(2) Other 7(a) loans.--During fiscal year 2020, the 
        amount authorized for commitments for section 7(a) of the Small 
        Business Act (15 U.S.C. 636(a)) under the heading `business 
        loans program account' under the heading `Small Business 
        Administration' under title V of the Consolidated 
        Appropriations Act, 2020 (Public Law 116-93; 133 Stat. 2475) 
        shall apply with respect to any commitments under such section 
        7(a) other than under paragraph (36) of such section 7(a).''.
                                 <all>